Document:

www.eXFILE.com -- 888-775-4789 -- MEDIS TECHNOLOGIES LTD. -- EXHIBIT 10.6 TO FORM 8K

    EXHIBIT 10.6

    
 

    EXCHANGE
AGREEMENT

     

    This
Exchange Agreement (this “Agreement”) is made and entered into as of September
28, 2008, by and between Daniel Luchansky (the “Director”) and Medis
Technologies Ltd., a Delaware corporation (the “Company”).  Each of
the Director and the Company are sometimes referred to herein as a “Party” or,
collectively, as the “Parties.”

     

    RECITALS

     

    WHEREAS,
the Director has been granted the options to purchase shares of common stock,
par value $0.01 per share (the “Common Stock”), of the Company, which are
identified on Exhibit A attached hereto (the “Options”);

     

    WHEREAS,
the Board of Directors of the Corporation (the “Board”), the Compensation
Committee of the Board and the Audit Committee of the Board, each (a) has
carefully reviewed and analyzed the transactions contemplated herein, (b)
believes it to be in the Company’s best interest to (i) cancel the Options upon
their surrender to the Company pursuant to the terms hereof and (ii) issue
certain restricted shares of Common Stock to the Director as an incentive to the
Director to surrender the Options and for the Director’s long-term future
performance, and (c) has approved and authorized the Company to enter into such
transactions, all upon the terms and conditions hereinafter set forth;
and

     

    WHEREAS,
the Director desires to enter into the transactions contemplated by this
Agreement, all upon the terms and conditions hereinafter set forth.

     

    NOW,
THEREFORE, in consideration of the mutual benefits to be derived from this
Agreement and the representations, warranties, covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

     

    1.    Surrender and Cancellation
of Options.  Subject to the terms and conditions of this
Agreement, the Director agrees as of the date hereof to surrender to the Company
all of the Options, at which time the Company shall cancel the Options. Upon
such cancellation, the stock option agreements representing the Options (the
“Option Agreements”) and any other document regarding the surrendered Options
will terminate and be of no further force and effect. Such surrender and
cancellation are together referred to herein as the “Option
Cancellation.”

     

    2.    Issuance of Restricted
Shares.  Subject to the terms and conditions of this Agreement,
the Company agrees to issue to the Director, as of the date hereof, an aggregate
of 16,800 shares of its Common Stock (the “Restricted Shares”), set forth more
fully on Exhibit A attached hereto, which Restricted Shares shall be issued
pursuant to, and have the terms and conditions set forth in, the Company’s 2007
Equity Incentive Plan and in one or more Restricted Share Agreements in the form
attached hereto as Exhibit B (the “Restricted Share Agreement” and, collectively
with this Agreement, the “Transaction Documents”). The issuance of the
Restricted Shares to the Director, collectively with the Option Cancellation,
the “Transactions.”

     

    3.    Deliveries.  Concurrently
with the Option Cancellation, (a) the Director shall deliver to the Company the
originally executed Option Agreements representing all of the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Options,
marked “cancelled” and (b) the Company and the Director shall execute and
deliver the Restricted Share Agreement(s).

     

    4.    Representations and
Warranties of the Director.  The Director represents and
warrants to the Company as follows:

     

    (a)    Obligation of the
Director.  The Transaction Documents constitute the legal,
valid and binding obligation of the Director, enforceable in accordance with
their respective terms.

     

    (b)    Non-Contravention.  Neither
the execution and delivery of the Transaction Documents, nor the consummation of
the Transactions, will (i) violate any constitution, statute, regulation, rule,
injunction, judgment, order, decree, ruling, charge or other restriction of any
government, governmental agency or court to which the Director is subject or
(ii) conflict with, result in a breach of, constitute a default under, result in
the acceleration of, create in any party the right to accelerate, terminate,
modify or cancel, or require any notice under any agreement, contract, lease,
license, instrument, or other arrangement to which the Director is a party or by
which the Director is bound or to which the Director’s assets are
subject.

     

    (c)    The
Options.  The Director is the record and beneficial owner of
the Options. The Director owns the Options free and clear of all claims,
charges, equities, liens, security interests, pledges, mortgages or encumbrances
(other than (i) as will be discharged on or prior to the date hereof and (ii)
any restrictions under the Securities Act of 1933, as amended (the “Securities
Act”) or state securities laws).

     

    (d)    Investment
Experience.  The Director is an “accredited investor” as
defined in Rule 501(a) of Regulation D, promulgated under the Securities Act or,
if not an “accredited investor,” either alone or with the Director’s
representatives has such knowledge and experience in financial and business
matters that the Director is capable of evaluating the merits and risks of the
Transactions. The Director is aware of the Company’s business affairs and
financial condition and has had access to and has acquired sufficient
information about the Company to reach an informed and knowledgeable decision to
enter into and consummate the Transactions. The Director acknowledges that the
Director has been afforded the opportunity to ask questions and receive answers
from the Company regarding the (i) Company, (ii) Transactions, (iii) Transaction
Documents and (iv) Restricted Shares, and to obtain any additional information
reasonably necessary to verify the accuracy of such information, and has
received satisfactory answers to any such questions. The Director further
acknowledges that the Director has been afforded the opportunity to consult the
Director’s own legal, tax and financial advisors regarding the (i) Company, (ii)
Transactions, (iii) Transaction Documents and (iv) Restricted Shares, and that
the Director possesses, either alone or with the Director’s representatives,
such business and financial experience to protect the Director’s own interests
in connection with the consummation of the Transactions, and further
acknowledges that the Director has not received and is not relying upon any
legal, tax or financial advice from the Company or any of its employees,
officers or representatives.

     

    
      
        
        

      

      
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    (e)    Investment
Intent.  The Director is acquiring the Restricted Shares for
the Director’s own account for investment purposes only and not with a present
view to, or for resale in connection with, any distribution thereof, or any
direct or indirect participation in any such distribution, in whole or in part,
within the meaning of the Securities Act. No arrangement exists between the
Director and the Company and any other person regarding the resale or
distribution of the Restricted Shares. The Director understands that the right
to transfer the Restricted Shares is not permitted absent registration under the
Securities Act or an exemption therefrom and that the Company is not required to
register the Restricted Shares under the Securities Act or register or qualify
the Restricted Shares under any state securities law.

     

    5.    Representations and
Warranties of the Company.  The Company represents and warrants
to the Director as follows:

     

    (a)    Organization.  The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware.

     

    (b)    Authorization.  (i)
The Company has all requisite corporate power, capacity and authority and has
taken all requisite corporate action to authorize, execute and deliver each of
the Transaction Documents, to consummate the Transactions and to carry out and
perform all of its obligations under the Transaction Documents and (ii) the
Transaction Documents each constitutes the legal, valid and binding obligation
of the Company.  Except as otherwise described herein or as may be
required by The Nasdaq Global Market, the Company is not required to give any
notice to, make any filing with, or obtain any authorization, consent or
approval of any government or governmental agency or third party in order to
consummate the Transactions.

     

    (c)    Non-Contravention.  Neither
the execution and delivery of the Transaction Documents, nor the consummation of
the Transactions, will (i) violate any constitution, statute, regulation, rule,
injunction, judgment, order, decree, ruling, charge or other restriction of any
government, governmental agency or court to which the Company is subject, or
violate any provision of its certificate of incorporation or bylaws or (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify
or cancel, or require any notice under any material agreement, contract, lease,
license, instrument, or other arrangement to which the Company is a party or by
which it is bound or to which its assets are subject.

     

    6.    Covenants.

     

    (a)    The
Director hereby covenants and agrees that (i) the Director will use the
Director’s best efforts to take all action and to do all things necessary,
proper or advisable in order to consummate and make effective the Transactions
and (ii) in case at any time after the date hereof any further action is
necessary to carry out the purposes of the Transaction Documents, the Director
will take such further action (including, without limitation, the execution and
delivery of such further instruments and documents) as the Company reasonably
may request, all at the sole cost and expense of the Company.

     

    
      
        
        

      

      
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    (b)    The
Company hereby covenants and agrees that (i) it will use its best efforts to
take all action and to do all things necessary, proper or advisable in order to
consummate and make effective the Transactions and (ii) in case at any time
after the date hereof any further action is necessary to carry out the purposes
of the Transaction Documents, it will take such further action (including,
without limitation, the execution and delivery of such further instruments and
documents) as the Director reasonably may request, all at the sole cost and
expense of the Company.

     

    7.    Miscellaneous.

     

    (a)    Entire
Agreement.  The Transaction Documents constitute the entire
agreement between the Parties and supersedes any prior understandings,
agreements, or representations by or between the Parties, written or oral, to
the extent they related in any way to the subject matter hereof.

     

    (b)    Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors, assigns, personal
representatives, heirs, executors and administrators.  Notwithstanding
the foregoing, neither of the Parties may assign either this Agreement or any of
their respective rights, interests, or obligations hereunder without the prior
written approval of the other Party.

     

    (c)    Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same
instrument.

     

    (d)    Headings.  The
section headings contained in this Agreement are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this
Agreement.

     

    (e)    Governing
Law.  This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of New York without giving effect
to any choice or conflict of law provision or rule (whether of the State of New
York or any other jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of New York.

     

    (f)    Amendments and
Waivers.  No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by the Company and the
Director.  No waiver by either Party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

     

    (g)    Survival.  The
representations, warranties, covenants and agreements made in this Agreement
shall survive the execution and delivery hereof and any investigation made by
the Company or the Director.

     

    
      
        
        

      

      
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    (h)    Severability.  Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE TO FOLLOW]

     

    
 

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the Parties hereto have executed this Exchange Agreement as of
the date first above written.

     

    

     

    
      
        	 	/s/
      Daniel Luchansky	 
	 	DANIEL
      LUCHANSKY 	 
	 	 	 
	 	 	 
	 	MEDIS
      TECHNOLOGIES LTD.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Howard
      Weingrow	 
	 	 	
                Name:
      Howard Weingrow

              	 
	 	 	
                Title:
      Deputy Chairman and COO

              	 
	 	 	 	 

      

     

    

    

     

    

     

     

     

    
 

    
 

     

    
 

    
      
        
        

      

      
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    Exhibit
A

     

    Options and Restricted
Shares

     

    

    

    
      	 
      	
              Maximum
      Number of Subject Options to be Exchanged

            	
              Maximum
      Number of Exchange Shares (at .75:1)

            
	
              Daniel
      Luchansky                                                                  

            	
              22,400

               

            	
              16,800

               

            
	
              All
      Exchange Shares shall vest in full on August 20,
  2009

            

    

    

    

     

    
 

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
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    Exhibit
B

    

      MEDIS TECHNOLOGIES
LTD.

      2007 EQUITY INCENTIVE
PLAN

       

      RESTRICTED SHARE
AGREEMENT

       

      AGREEMENT,
dated as of September 28, 2008, between Medis Technologies Ltd., a Delaware
corporation (the “Company”), and Daniel Luchansky (the “Grantee”).

       

      W
I T N E S S E T H:

       

      WHEREAS,
as of April 18, 2007, the Company adopted the Medis Technologies Ltd. 2007
Equity Incentive Plan (the “Plan”), which Plan authorizes, among other things,
the grant of restricted shares of common stock, $.01 par value (“Common Stock”),
of the Company to directors, officers and employees of the Company and to other
individuals; and

       

      WHEREAS,
the Company’s Compensation Committee, as administrator of the Plan, has
determined that it would be in the best interests of the Company to grant the
Restricted Shares documented herein.

       

      NOW,
THEREFORE, the parties hereto hereby agree as follows:

       

      1    Definitions.  Capitalized
terms not defined in this Agreement shall have the meaning ascribed to such
terms in the Plan.

       

      2    Grant of Restricted
Shares. Subject to the terms and conditions of the Plan and as set forth
herein, the Company hereby grants to the Grantee, as of date hereof, an
aggregate of 16,800 restricted shares of Common Stock (the “Restricted
Stock”).

       

      3    Vesting. Subject to
such further limitations as are provided in the Plan and as set forth herein,
the Restricted Stock shall vest as follows:

       

      
        	
                
                  Vesting
      Date

                

              	 	
                
                  Restricted
      Stock (U.S.)

                

              	 	
                
                  102
      Capital Gains Track Restricted Stock Award (with Trustee)
      (Israel)

                

              	 	
                
                  102
      Ordinary Income Track Restricted Stock Award (with Trustee)
      (Israel)

                

              	 	
                
                  102
      Non-Trustee Restricted Stock Award (Israel)

                

              	 	
                
                  3(9)
      Restricted Stock Award (Israel)

                

              
	
                 

                August
      20, 2009

              	 	
                16,800

              	 	
                —

              	 	
                —

              	 	
                —

              	 	
                —

              

      

       

      4    Termination
of Service.
(a)  If the
Grantee does not continue
to provide service to the
Company through the Vesting Date set forth in Section 3, all shares of Restricted Stock not
vested as of the date Grantee ceases to provide service
to the Company will be
forfeited (the “Forfeited
Shares”), the Grantee shall not have any rights to any of the Forfeited Shares
and any stock certificates then held by the Grantee representing the Forfeited
Shares shall be cancelled and voided.  Notwithstanding the foregoing,
in the event the
Grantee’s service to the Company is terminated due to death or
Disability, all shares of Restricted Stock held by the Grantee at the time of such death or termination of service due to such
Disability shall
immediately become vested and released from restriction as of such
date.

       

      
        
          
          

        

        
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      (b)    In the event the
Grantee’s service with the Company shall terminate (other than on account of
death or Disability) prior to the end of the Restricted Period, or any other
event causing the forfeiture of the Restricted Stock prior to a Vesting Date,
the Grantee shall be obligated immediately to redeliver to the Company any stock
certificates representing the Forfeited Shares. No payment by the Company will
be due to the Grantee for the Forfeited Shares.

       

      5    Certificate
Legend.  The share certificate evidencing the Restricted Stock
issued hereunder shall be endorsed with the following legend or a legend
substantively similar thereto:

       

      THE
RESTRICTED SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF.  NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT
AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933.

       

      THE
RESTRICTED SHARES REPRESENTED HEREBY ARE SUBJECT TO A RESTRICTION ON TRANSFER
PURSUANT TO THE PROVISIONS OF AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER OF
SUCH RESTRICTED SHARES, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE TERMS OF
SUCH AGREEMENT.

       

      6    Removal of Certificate
Legend.  After the completion of the Restricted Period, the
Grantee shall be entitled to have the legend required by Section 5 of this
Agreement removed from the applicable stock certificates for the shares of
Restricted Stock that have not been forfeited; provided, however, that the first
paragraph of such certificate legend shall not be removed unless the shares are
in fact registered under the Securities Act or the Company is satisfied that
registration is not required thereunder, in its sole discretion.

       

      7    Non−Transferability of
Restricted Stock. The Restricted Stock shall not be sold, assigned,
transferred, pledged, hypothecated or otherwise disposed of during the
Restricted Period.

       

      8    No Special Rights.
The granting of the Restricted Stock shall not be construed to confer upon the
Grantee any right with respect to the continuation of his or her service with
the Company (or any subsidiary of the Company) or interfere in any way with the
right of the Company (or any subsidiary of the Company), subject to the terms of
any separate agreement to the contrary, at any time to terminate such service or
to increase or decrease the compensation of the Grantee from the rate in
existence as of the date hereof.

       

      9    Tax
Consequences.  (a)  All tax consequences under any
Applicable Law which may arise from the grant of the Restricted Stock, the sale
or disposition of any shares granted 

       

       

      
        
          
          

        

        
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      hereunder
or from any other action of the Grantee in connection with the foregoing shall
be borne and paid solely by the Grantee, and the Grantee shall indemnify the
Company, and its Subsidiaries and Affiliates, and shall hold them harmless
against and from any liability for any such tax or penalty, interest or
indexation thereon. The Grantee agrees to, and undertakes to comply with, any
ruling, settlement, closing agreement or other similar agreement or arrangement
with any tax authority in connection with the foregoing which is approved by the
Company.  The Grantee is advised to consult with a tax advisor with
respect to the tax consequences of receiving the Restricted Stock. The Company
does not assume any responsibility to advise the Grantee on such matters, which
shall remain solely the responsibility of the Grantee.

       

      (b)    The Grantee may elect
to be immediately taxed on the Restricted Stock for United States Federal
tax purposes under Section 83(b) of the Code. The Grantee shall notify the
Company of his or her election within thirty (30) days of the date
hereof.

       

      (c)    The Grantee shall
notify the Company in writing promptly and in any event within ten (10) days
after the date on which the Grantee first obtains knowledge of any tax bureau
inquiry, audit, assertion, determination, investigation, or question relating in
any manner to the Restricted Stock granted or received hereunder and shall
continuously inform the Company of any developments, proceedings, discussions
and negotiations relating to such matter, and shall allow the Company and its
representatives to participate in any proceedings and discussions concerning
such matters.  Upon request, the Grantee shall provide to the Company
any information or document relating to any matter described in the preceding
sentence, which the Company, in its discretion, requires.

       

      (d)    To the extent a 102
Restricted Stock Award is designated above, you declare and acknowledge: (i)
that you fully understand that Section 102 of the Israeli Income Tax Ordinance
and the rules and regulations enacted thereunder apply to the Restricted Stock
specified in this Agreement and to you; and (ii) that you understand the
provisions of Section 102, the tax track chosen and the implications thereof.
With respect to Restricted Stock granted under Section 102, the terms of such
Restricted Stock shall also be subject to the terms of the Trust Agreement made
between the Company and the Trustee for the benefit of the Grantee, as well as
the requirements of the Israeli Income Tax Commissioner. The grant of Restricted
Stock hereunder is further conditioned upon the Grantee signing all documents
requested by the Company or the Trustee, in accordance with and under the Trust
Agreement. A copy of the Trust Agreement is available for the Grantee’s review,
during normal working hours, at the Company’s offices.

       

      10     Investment
Representations.  In connection with the receipt of the
Restricted Stock, the Grantee represents to the Company the
following:

       

      (a)    The Grantee
is receiving these securities for investment for his or her own account only and
not with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the Securities Act.

       

      (b)    The Grantee
understands that the securities have not been registered under the Securities
Act.

       

      
        
          
          

        

        
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      (c)    The Grantee
further acknowledges and understands that the securities must be held
indefinitely unless they are subsequently registered under the Securities Act or
an exemption from such registration is available.  The Grantee further
acknowledges and understands that the Company is under no obligation to register
the securities.  The Grantee understands that the certificate evidencing
the securities will be imprinted with a legend which prohibits the transfer of
the securities unless they are registered or such registration is not required
in the opinion of counsel satisfactory to the Company.

      

      11     Rights of
Stockholder. Except with regard to restrictions on selling, assigning,
transferring, pledging, hypothecating, encumbering or otherwise
disposing the Restricted Stock, the Grantee will generally have all rights
of a shareholder of the Company with respect to the shares of Restricted Stock
from the date of grant until forfeiture, if any, pursuant to Section 4,
including, without limitation, the right to receive dividends with respect to
such Restricted Stock and the right to vote such Restricted Stock, subject to
any restrictions in this Agreement or in the Plan.

       

      12     Amendment. Subject to
the terms and conditions of the Plan, the Committee may amend this Agreement
with the consent of the Grantee when and subject to such conditions as are
deemed to be in the best interests of the Company and in accordance with the
purposes of the Plan.

       

      13     Notices. Any
communication or notice required or permitted to be given hereunder shall be in
writing, and, if to the Company, to its principal place of business, attention:
Secretary, and, if to the Grantee, to the address as appearing on the records of
the Company. Such communication or notice shall be deemed given if and when (a)
properly addressed and posted by registered or certified mail, postage prepaid,
or (b) delivered by hand.

       

      14     Incorporation of Plan by
Reference. The shares of Restricted Stock are granted pursuant to the
terms of the Plan, the terms of which are incorporated herein by reference, and
the Restricted Stock shall in all respects be interpreted in accordance with the
Plan. In the event of any inconsistency between the Plan and this Agreement, the
Plan shall govern.  The Board or the Committee, whichever shall then
have authority to administer the Plan, shall interpret and construe the Plan and
this Agreement, and their interpretations and determinations shall be conclusive
and binding upon the parties hereto and any other person claiming an interest
hereunder, with respect to any issue arising hereunder or
thereunder.

       

      15     Acknowledgement.  The
Grantee acknowledges receipt of the copy of the Plan attached hereto as Exhibit
A.

       

      16     Governing Law. The
validity, construction and interpretation of this Agreement shall be governed by
and determined in accordance with the laws of the State of New
York.

       

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      IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
above written.

       

       

      
         

        
          
            	 	MEDIS
      TECHNOLOGIES LTD.	 
	 	 	 
	 	 	 	 
	 	By: 	/s/ Howard
      Weingrow 	 
	 	 	Name:
      Howard Weingrow	 
	 	 	Title:  
      Deputy Chairman and COO	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	GRANTEE:	 
	 	 	 	 
	 	 	/s/  Daniel
      Luchansky 	 
	 	 	Name:  Daniel
      Luchansky 	 
	 	 	 

          

        

         

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
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      Exhibit
A

       

      2007 Equity Incentive
Plan

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          6exhibit10_1.htm

    Exhibit
10.1

     

    
      EMPLOYMENT AGREEMENT

       

      THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is
entered into effective as of July 1, 2008 (the “Effective Date”) by
and between CHARTER
COMMUNICATIONS, INC., a Delaware corporation (together with its
successors and assigns, the “Company”), and Neil
Smit, an individual (“Executive”).  This
Agreement amends and restates that employment agreement originally entered into
between the Parties effective as of August 9, 2005, as modified by prior
amendments to such original agreement (such agreement, so modified, the “Prior Employment
Agreement”).

       

      W
I T N E S S E T H:

       

      WHEREAS:

       

      
        	
                (1)  

              	
                The
      Company and Executive (each, a “Party”) desire
      for Executive to continue to be employed by the Company as Chief Executive
      Officer and President upon and subject to the terms and conditions set
      forth in this Agreement;

              

      

       

      
        	
                (2)  

              	
                Executive
      is willing and desires to continue employment with the Company upon and
      subject to the terms of this Agreement;
and

              

      

       

      
        	
                (3)  

              	
                Executive’s
      agreement to the terms and conditions of Sections 4 and 5 are a material
      condition of Executive’s employment with the Company under the terms of
      this Agreement;

              

      

       

      NOW, THEREFORE, in
consideration of the premises, and the promises and agreements set forth below,
the Parties, intending to be legally bound, agree as follows:

       

      1.  Employment
Terms and Duties

       

      1.1  Employment. The
Company hereby agrees to continue to employ Executive in an executive capacity
as its Chief Executive Officer and President, and Executive hereby accepts such
continued employment upon the terms and conditions set forth in this
Agreement.

       

      1.2  Term; Option to Extend.
Executive’s employment under this Agreement (the “Term”) shall commence
as of the Effective Date and shall terminate at 11:59 p.m. on June 30, 2010. If
Executive continues in the Company’s employ after the expiration of the Term,
his employment shall be on an at-will basis.

       

      1.3  Position and Duties. During
the Term, Executive shall serve as the President and Chief Executive Officer of
the Company; shall have all authorities, duties and responsibilities customarily
exercised by an individual serving in those positions at an entity of the size
and nature of the Company (including overseeing the day-to-day management of the
Company, having full profit and loss responsibility, developing overall
strategy, and having all senior management of the Company report to him); shall
be assigned no duties or responsibilities that are materially inconsistent with,
or that materially impair his ability to discharge, the foregoing duties and
responsibilities; shall have such additional duties and responsibilities
(including, subject to such reasonable conditions as he may reasonably
establish, service with affiliates of 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

         

        the
Company), consistent with the foregoing, as may from time to time reasonably be
assigned to him by the Board of Directors of the Company (the “Board”) or the
Executive Committee of the Board (the “Executive
Committee”); shall, in his capacity as President and Chief Executive
Officer of the Company, report solely and directly to the Board or the Executive
Committee; and shall serve as a member of the Board and the Executive Committee
(if there is an Executive Committee).

      

       

      1.4  Outside Activities. During the
Term, Executive shall devote substantially all of his business time and efforts
to the business and affairs of the Company. However, nothing in this Agreement
shall preclude Executive from: (a) serving on the boards of a reasonable number
of business entities, trade associations and charitable organizations, (b)
engaging in charitable activities and community affairs, (c) accepting and
fulfilling a reasonable number of speaking engagements, and (d) managing his
personal investments and affairs; provided that such
activities do not either individually or in the aggregate: interfere with the
proper performance of his duties and responsibilities hereunder; create a
conflict of interest; or violate any provision of this Agreement; and provided further that service
on the board of any business entity must be approved in advance by the
Board.

       

      1.5  Location. During the Term,
Executive’s principal office and principal place of employment shall be at the
Company’s headquarters in the St. Louis, Missouri, metropolitan
area.

       

      2.  Compensation
and Benefits.

       

      2.1  Salary. Beginning as of the
Effective Date, Executive shall be paid a base salary (the “Salary”) in respect
of his services hereunder during the Term. The Salary shall be at an annual rate
of $1,500,000. The Salary shall be paid in equal periodic installments according
to the Company’s customary payroll practices, but no less frequently than
monthly. During the Term, the Salary may be increased, but shall not be reduced
below the applicable amount set forth in the preceding sentence at any time, or
for any purpose (including for the purpose of determining benefits under Section
3 below), without Executive’s prior written consent.

       

      2.2  Performance
Bonus.  Executive shall be paid an annual cash performance
bonus (an “Annual
Bonus”) in respect of each calendar year that ends during the Term, to
the extent earned based on performance against objective performance
criteria.  The performance criteria for any particular calendar year
shall be established by the Compensation Committee of the Board (the “Compensation
Committee”) no later than 90 days after the commencement of such calendar
year. Beginning with calendar year 2008, Executive’s Annual Bonus for a calendar
year shall equal 200% of his actual Salary earned for that year (the “Target Bonus”) if
target levels of performance for that year (as established by the Compensation
Committee when the performance criteria for that year are established) are
achieved, with greater or lesser amounts (including zero) paid for performance
above and below target (such greater and lesser amounts to be determined by a
formula established by the Compensation Committee for that year when it
established the targets and performance criteria for that year).  For
the avoidance of doubt, Executive’s Target Bonus for 2008 shall be
$2,700,000.  For 2008, Executive’s maximum Annual Bonus shall be no
greater than 125% of his Target Bonus for the year.  Executive’s
maximum Annual Bonus for 2009 and 2010 shall be determined by the Compensation
Committee, but in no event shall such 

       

       

      
        
          
          

        

        
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        maximum
be greater than 200% of Executive’s Target Bonus for the year or less than 125%
of Executive’s Target Bonus for the year. Performance criteria shall not include
the Company’s stock trading price, and may include revenue, ARPU, RGU, OCF, new
product growth, operational improvements, and/or such other metrics as the
Compensation Committee shall determine. Executive’s Annual Bonus for a calendar
year shall be determined by the Compensation Committee after the end of the
calendar year and shall be paid to Executive when annual bonuses for that year
are paid to other senior executives of the Company generally, but in no event
later than March 15 of the following calendar year. In carrying out its
functions under this Section 2.2 and under Section 2.5(b), the Compensation
Committee shall at all times act reasonably and in good faith, and shall consult
with Executive to the extent appropriate.

      

       

      2.3  Retention
Bonus.  Executive shall be entitled to receive an aggregate
cash payment equal to $2,000,000, payable in a single lump-sum no later than
September 30, 2008 (the “Retention
Bonus”).  In the event that Executive’s employment with the
Company terminates at any time on or before December 31, 2009, in a termination
by the Company for Cause (determined in accordance with this Agreement) or by
Executive other than in a Good Reason Termination or as a result of his death or
Disability (all determined in accordance with this Agreement), Executive shall
be required to repay to the Company an amount equal to the Retention
Bonus.  In the event that Executive’s employment with the Company
terminates at any time after December 31, 2009, but prior to June 30, 2010, in a
termination by the Company for Cause (determined in accordance with this
Agreement) or by Executive other than in a Good Reason Termination or as a
result of his death or Disability (all determined in accordance with this
Agreement), Executive shall be required to repay to the Company an amount equal
to one-half (1/2) of the Retention Bonus.  Any amount required to be
repaid under this Section 2.3 shall be repaid to the Company no later than
thirty (30) days following the Termination Date.

       

      2.4  Executive Cash Award
Plan.  Executive shall continue to participate in the Charter
Communications Inc. 2005 Executive Cash Award Plan, as amended (the “Cash Award Plan”),
during the Term on the same terms as are applicable generally to participants in
the Cash Award Plan, and shall receive further book entry credits in 2008 and
2009 under the terms of the Cash Award Plan as in effect on the Effective
Date.

       

      2.5  Long-Term
Incentive Compensation.

       

      (a) Effective
as of the Effective Date, the Restricted Stock, Performance Shares and
Performance Cash awards granted to Executive on April 28, 2008 are hereby
amended such that any portion of those awards scheduled to vest based (in whole
or in part) on Executive’s continuous service with the Company after the
expiration of the Term shall instead vest (and hence, for avoidance of doubt,
become nonforfeitable) on June 30, 2010, subject only to Executive’s continuous
employment by the Company through that date and the degree to which any
applicable quantitative performance criteria are ultimately
satisfied.

       

      (b) In 2009
and 2010, Executive shall be granted long-term incentive compensation awards
(each an “Annual LTI
Grant”) at the time such awards are granted to senior executives of the
Company generally and in no event later than June 30 of the year in question,
provided that Executive remains continuously employed by the Company through
each such grant date.  Each Annual LTI Grant shall be in the form of
Restricted Stock, Performance 

       

       

      
        
          
          

        

        
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        Shares
and Performance Cash containing substantially the same terms and conditions as
those that apply to the corresponding awards granted to Executive on April 28,
2008, except as expressly set forth in this Agreement.  Each Annual
LTI Grant shall have an aggregate “fair value” (as determined in accordance with
Financial Accounting Standards Board’s Statement of Financial Accounting
Standards No. 123 (revised 2004), Share-Based Payment (“FAS 123R”), and using
the same assumptions and methodologies for the applicable award that apply for
purposes of the Company’s financial statements) on the grant date thereof equal
to at least $6,000,000 (with 25% of such value allocated to Restricted Stock,
25% allocated to Performance Shares and 50% allocated to Performance
Cash).  The Annual LTI Grants shall be subject to the terms and
conditions of the Company’s 2001 Stock Incentive Plan (or any successor plan),
and to the customary forms of award agreement used thereunder generally from
time to time for executives of the Company, the terms and conditions of which
shall be substantially similar to those applying to corresponding awards granted
to Executive on April 28, 2008 (and, except as specifically provided for herein,
no less favorable than the terms and conditions applicable generally to other
senior executives of the Company); provided, however, that:

      

       

      (i) with
respect to the Annual LTI Grant made in 2009: (A) 50% of each of the
Restricted Stock, Performance Shares and Performance Cash granted thereunder
shall vest (and hence, for avoidance of doubt, become nonforfeitable) on the
first anniversary of the grant date thereof, subject only to Executive’s
continuous employment by the Company through such vesting date and the degree to
which any applicable quantitative performance criteria are ultimately satisfied;
(B) the remaining 50% of the Restricted Stock and Performance Shares
granted thereunder shall vest on June 30, 2010, subject only to Executive’s
continuous employment by the Company through such vesting date and the degree to
which any applicable quantitative performance criteria are ultimately satisfied;
and (C) the remaining 50% of the Performance Cash granted thereunder shall
vest in two equal installments, with 25% vesting on June 30, 2010 and 25%
vesting on the second anniversary of the grant date thereof, subject in each
case only to Executive’s continuous employment by the Company through June 30,
2010 and the degree to which any applicable quantitative performance criteria
are ultimately satisfied; and

       

      (ii) with
respect to the Annual LTI Grant made in 2010: (A) 50% of the Restricted
Stock granted thereunder shall vest on June 30, 2010, subject only to
Executive’s continuous employment by the Company through such vesting date;
(B) 50% of the Performance Shares granted thereunder shall vest on the
first anniversary of the grant date thereof, subject only to Executive’s
continuous employment by the Company through June 30, 2010 and the degree to
which any applicable quantitative performance criteria are ultimately satisfied;
(C) 50% of the Performance Cash granted thereunder shall vest in two equal
installments, with 25% vesting on June 30, 2010 and 25% vesting on the first
anniversary of the grant date thereof, subject in each case only to Executive’s
continuous employment by the Company through June 30, 2010 and the degree to
which any applicable quantitative performance criteria are ultimately satisfied;
and (D) in the event that Executive is continuously employed by the Company
through June 30, 2010, the remaining 50% of the Restricted Stock, Performance
Shares and Performance Cash awards made in 2010 shall become fully vested and
non-forfeitable if the Company achieves, during the two-year period commencing
on July 1, 2008 and ending on June 30, 2010 either (I) 0.5 improvement in the
Company’s Leverage Ratio (as defined in Exhibit A)
compared to the target for such performance metric as of June 30, 2010

       

       

      
        
          
          

        

        
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        as set
forth in the Company’s Q3 2008 five year plan or (II) improvement in Adjusted
EBITDA of $100 million over the projected Adjusted EBITDA (as defined in Exhibit A) for
such two-year period set forth in the Company’s Q3 2008 five year plan (for the
avoidance of doubt, if neither such goal is achieved, the remaining 50% of the
Restricted Stock, Performance Shares and Performance Cash awards made in 2010
shall be forfeited as of June 30, 2010). Notwithstanding anything herein or
in Exhibit A to the contrary, the calculation of the Company’s Leverage Ratio
and Adjusted EBITDA shall be subject to equitable adjustment, the manner of
which shall be determined in the reasonable discretion of the Compensation
Committee, to exclude the impact of (x) any issuances of additional common
stock by the Company from and after July 1, 2008 (and any consideration received
by the Company in connection therewith) other than issuances pursuant to equity
compensation awards granted to Company employees, (y) any acquisition by
the Company of, or merger, consolidation or similar transaction of or by the
Company with, any business or entity and (z) any disposition (via sale,
spin-off or otherwise) by the Company of any entity or business (each of (x),
(y) and (z) a “Transaction”), except
for a Transaction approved by the Board which has as its primary purpose a
strategic transformation of the Company's business (as determined in the
reasonable good faith discretion of the Compensation Committee), rather than to
achieve a different result, such as to raise additional capital.  For
the avoidance of doubt, no adjustment to the calculation of the Company’s
Leverage Ratio and Adjusted EBITDA will be made to exclude the impact of a
Transaction that the Compensation Committee determines to be strategic, as
described in the preceding sentence.

      

       

      2.6  Other
Incentives.  Executive shall be eligible for other or
additional long term incentives in the sole and absolute discretion of the
Compensation Committee and/or the Board.  Such incentive awards (if
any) shall be on terms and conditions that are commensurate with Executive’s
positions and responsibilities at the Company and appropriate in light of
contemporaneous awards granted to other senior executives of the Company (but
without regard to any special or one-time grants to such other senior
executives, including any sign-on or special retention grants), as well as the
other long-term incentive compensation awards granted to Executive pursuant to
the terms of this Agreement.  Except as otherwise provided herein,
Executive shall not be entitled to participate in any other compensation, bonus,
retention or incentive program, except as may be explicitly determined by the
Board or the Compensation Committee in its sole and absolute
discretion.

       

      2.7  Employee Benefits. During the
Term, Executive shall be entitled to participate in all pension, retirement,
profit sharing, savings, 401(k), income deferral, life insurance, disability
insurance, accidental death and dismemberment protection, travel accident
insurance, hospitalization, medical, dental, vision and other employee benefit
plans, programs and arrangements that may from time to time be made available
generally to other senior executives of the Company, all to the extent Executive
is eligible under the terms of such plans, programs and arrangements.
Executive’s participation in all such plans, programs and arrangements shall be
at a level, and on terms and conditions, that are commensurate with his
positions and responsibilities at the Company and that are no less favorable to
him than to other senior executives of the Company generally; provided, however,
that, as soon as practicable following the Effective Date, the Company shall
increase the amount of Executive’s life insurance coverage provided by the
Company to the greater of 200% of Executive’s annualized Salary or three million
dollars ($3,000,000); provided that if such increased coverage would cost more
than $20,000 per year, the Company shall be required to provide only such
increased coverage as 

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

         

        can be
obtained for $20,000 per year.  Executive shall also be entitled to
post-retirement welfare and other benefits on no less favorable a basis than
that then applying generally to other senior executives of the Company with the
same age and years of service with the Company.  In addition, the
Company shall, as promptly as reasonably practicable and with Executive’s full
cooperation, purchase on behalf of Executive a policy that provides long-term
disability coverage that, when combined with other long-term disability coverage
provided by the Company, provides (i) coverage to age 65 of 50% of Executive’s
Salary, or (ii) if such coverage referred to in (i) would cost more than $20,000
per year, the amount of coverage that can be provided for $20,000 per year.
Except for the immediately preceding sentence, nothing in this Section 2.7 shall
be construed to require the Company to establish or maintain any particular
employee benefit plan, program or arrangement.

      

       

      2.8  Expenses and
Perquisites.

       

      (a) Expenses. The Company shall
promptly reimburse Executive for all expenses reasonably incurred by him in
connection with the performance of his duties hereunder (including appropriate
business entertainment activities, expenses appropriately incurred by Executive
in attending conventions, seminars, and other business meetings, and promotional
activities), subject to Executive’s furnishing the Company documentation
substantiating the expenses in accordance with any reasonable policies
concerning substantiation previously communicated to him in writing. When
traveling on Company business on commercial airlines, Executive shall be
entitled to fly first class when available.

       

      (b) Legal Representation.
Executive acknowledges that he has been advised to consult with independent
legal counsel before signing this Agreement and has had the opportunity to do
so. The Company shall pay, or reimburse Executive for, all fees and expenses of
counsel reasonably incurred by him in the negotiation, drafting, execution and
implementation of this Agreement, up to a maximum of $60,000.

       

      (c) Financial Counseling and Tax
Preparation. Executive specifically understands that the Company has not
made, nor does it make, any representation pertaining to financial obligations
or tax consequences to Executive that may or may not arise out of this Agreement
or Executive’s acceptance of funds or benefits under this Agreement. In addition
to the reimbursement provided under this Section 2.8(c), the Company agrees to
promptly pay, or reimburse Executive for, professional fees he incurs in
connection with financial counseling, estate planning, tax preparation and the
like, up to a maximum of $15,000 for each calendar year that begins, or ends,
during the Term.

       

      (d) Additional Fringe Benefits and
Perquisites. During the Term, Executive shall, in addition to the
foregoing, also be entitled to (i) to participate in all fringe benefits and
perquisites made available generally to senior executives of the Company, such
participation to be at levels, and on terms and conditions, that are
commensurate with his positions and responsibilities at the Company and no less
favorable to him than those applying generally to other senior executives of the
Company, and (ii) to receive such additional fringe benefits and perquisites as
the Company may, in its sole and absolute discretion, from time to time
provide.

       

       

      
        
          
          

        

        
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      (e) Timing of Reimbursement. In no
event shall any such reimbursements or other payments made pursuant to this
Section 2.8 be paid later than the end of the calendar year following the year
in which the expense was incurred.

       

      2.9  Facilities and Expenses. During
the Term, the Company shall furnish Executive office space, equipment, supplies,
and such other facilities and personnel as are reasonably necessary or
appropriate for the performance of Executive’s duties under this Agreement, and
shall pay Executive’s dues in professional organizations as reasonably
appropriate.

       

      2.10  Vacations and Holidays.
Executive shall be entitled to paid vacation of at least twenty (20) days
per calendar year (or such greater number of vacation days, per calendar year,
as may then be permitted for senior executives of the Company generally) during
the Term, which vacation days may be carried over from year to year if not used.
Executive shall also be entitled to paid holidays as and to the extent set forth
in the Company’s policies as the same may change from time to time for senior
executives of the Company generally.

       

      2.11  Effect of a “Going Private Event” on
Equity Awards. At such time, if ever, as the Common Stock shall no longer
be traded on any national securities exchange or national securities market (a
“Going Private
Event”), then the Company, in its sole and absolute discretion, shall
either:

       

      (a) (i)
accelerate the vesting of, and remove all transfer restrictions on, all of
Executive’s outstanding Restricted Stock; (ii) accelerate the vesting and
exercisability of all of Executive’s outstanding Stock Options; and (iii) (A)
promptly deliver unrestricted, publicly tradeable, securities in respect of each
of Executive’s outstanding Performance Share awards (in an amount determined as
if all relevant performance goals had been achieved at 100% of target) and
(B) promptly pay Executive, with respect to each of Executive’s outstanding
Performance Cash awards, an amount equal to the then target payout for that
award times a fraction, of which the numerator is the number of days in the
pertinent performance period that shall have elapsed through the occurrence of
the Going Private Event and the denominator of which is 1095 (3 x 365 days) less
the number of days from the beginning of the pertinent performance period to the
most recent vesting date occurring prior to the Going Private Event; with
vesting/removal/exercisability/ delivery in each case afforded at a time, and in
a fashion, that enables Executive to participate, with respect to the securities
subject to the awards in clauses (i)-(iii), on no less favorable a basis than
other public shareholders holding such securities, in the transactions that give
rise to the Going Private Event; or

       

      (b) with
respect to each of Executive’s outstanding Stock Options, Restricted Stock
awards, and Performance Share awards, make appropriate adjustments (x) in the
amount and/or kinds of securities subject to such award (including, as
appropriate, substituting securities of any successor entity) and/or (y) in the
other terms and conditions of such award, in each case so as to avoid (A)
dilution or enlargement, as a result of the Going Private Event, of the rights
and value represented by such award and (B) any incremental current tax to
Executives; and, with respect to each outstanding Performance Cash award, treat
such award as described in Section 2.11(a)(iii)(B); or

       

       

      
        
          
          

        

        
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      (c) accelerate
the vesting/removal/exercisability/delivery with respect to some of Executive’s
outstanding Stock Options, Restricted Stock awards and/or Performance Share
awards in accordance with Section 2.11(a); treat the remaining awards in
accordance with Section 2.11(b); and, with respect to each outstanding
Performance Cash award, treat such award as described in Section
2.11(a)(iii)(B).

       

      To the
extent that Executive’s Stock Options, Restricted Stock and/or Performance Share
awards continue to be outstanding in accordance with Section 2.11(b) following a
Going Private Event, then (i) Executive shall have the right, during the period
of 180 days following (w) the vesting or removal of transfer restrictions from
any Restricted Stock, (x) the delivery of any securities in respect of any
Performance Share award, (y) the acquisition of securities upon the exercise of
any Stock Option, and/or (z) the termination of his employment with the Company,
for any reason, subsequent to or coincident with such
vesting/removal/delivery/acquisition, to “put” any or all of such securities to
the Company for a prompt cash payment equal to their Fair Market Value, and (ii)
the Company shall have the right, during the same period, to “call” any or all
of such securities for a prompt cash payment equal to their Fair Market Value.
For purposes of this Agreement, the “Fair Market Value” of
a security, as of a specified date, shall mean the fair market value of such
security, as of such date, determined without discount for lack of liquidity,
lack of control, minority status, restrictions on transferability, and the like,
and assuming an amply-funded strategic buyer for all such securities then
outstanding.

       

      2.12  Presence of New Significant Equity
Holder During the Term. In the event that during the Term any “person,” as such term
is used in Section 13(d) of the Securities Exchange Act of 1934, or group of
persons, excluding the “Allen Entities” (as defined as of the Effective Date in
the Restated Certificate of Incorporation of the Company) becomes (directly or
indirectly) a “beneficial owner”, as
such term is used as of the Effective Date in Rule 13d-3 promulgated under that
Act, of more than 30% of the voting power of the Company, then, provided only
that Executive remains continuously employed by the Company through June 30,
2010, Executive shall be entitled to the following benefits (whether or not
Executive’s employment terminates at that time):

       

      (a) full
nonforfeitability and exercisability, as of June 30, 2010, for any outstanding
Stock Option;

       

      (b) full
vesting, as of June 30, 2010, for any outstanding Restricted Stock, with all
restrictions on such Restricted Stock lapsing as of June 30, 2010;

       

      (c) full
nonforfeitability, as of June 30, 2010, of any right to receive Performance
Shares, with the number (if any), and the timing of the delivery, of such shares
determined as if all relevant performance goals had been achieved at 100% of
target; and

       

      (d) payment
of any outstanding Performance Cash awards, determined as if all relevant
performance goals had been achieved at 100% of target.

       

       

      
        
          
          

        

        
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      3.  Termination of
Employment.

       

      3.1  Termination
Due to Death or Disability.

       

      (a) In the
event that Executive’s employment hereunder is terminated during the Term due to
his death or “Disability” (as determined pursuant to Section 3.1(b) below), the
Term shall expire and he or his estate or beneficiaries (as the case may be)
shall be entitled to the following:

       

      (i) a
“Pro-Rata Bonus” (as defined in Section 3.1(c) below);

       

      (ii) full
nonforfeitability and exercisability, as of the Termination Date, for any
outstanding “Stock Option” (as defined in Section 3.1(c) below), with each such
Stock Option to remain exercisable for the lesser of two years following the
Termination Date and the remainder of its maximum stated term;

       

      (iii) full
vesting, as of the Termination Date, for any outstanding “Restricted Stock” (as
defined in Section 3.1(c) below), with all restrictions on such Restricted Stock
lapsing as of the Termination Date;

       

      (iv) full
nonforfeitability, as of the Termination Date, of any right to receive
“Performance Shares” (as defined in Section 3.1(c) below), with the number (if
any), and the timing of the delivery, of shares determined as if all relevant
performance goals had been achieved at 100% of target;

       

      (v) full
payment in cash, promptly following the Termination Date, of an amount equal to
the sum of all amounts credited to Executive’s account under the Cash Award
Plan;

       

      (vi) full
vesting, as of the Termination Date, and payment of any outstanding and unpaid
“Performance Cash” (as defined in Section 3.1(c) below), determined as if all
relevant performance goals had been achieved at 100% of target;

       

      (vii) if the
termination is due to Disability, the Company shall pay to Executive promptly
following the Termination Date a lump sum cash payment equal to thirty-six (36)
times the monthly cost, determined as of the Termination Date, for Executive and
his covered dependents to receive coverage under COBRA for health, dental and
vision benefits then being provided for Executive and his covered dependents
(for the avoidance of doubt this amount will not take into account future
increases in costs during the applicable time period), plus an additional amount
such that Executive will be in the same position as he would have been had no
taxes been imposed upon or incurred as a result of the payment described in this
Section 3.1(a)(vii); and

       

      (viii) the
benefits described in Section 3.5.

       

      (b) For
purposes of this Agreement, Executive shall be deemed to have a “Disability” if, due
to illness, injury or a physical or medically recognized mental condition, he is
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        accommodation
for one hundred twenty (120) consecutive days, or one hundred eighty (180) days
during any twelve (12) month period, as determined in accordance with this
Section 3.1(b). Whether a Disability exists shall be determined by a
medical doctor selected by agreement of the Parties upon the request of either
Party by notice to the other. If the Parties cannot agree on the selection of a
medical doctor, each of them shall select a medical doctor and the two medical
doctors shall select a third medical doctor who shall determine whether a
Disability exists. The determination of the medical doctor selected under this
Section 3.1(b) shall be binding on both Parties. Executive must submit to a
reasonable number of examinations by the medical doctor making the determination
of Disability under this Section 3.1(b), and to other specialists
designated by such medical doctor, and Executive hereby authorizes the
disclosure and release to the Company, in confidence, of such determination and
all supporting medical records. No termination for Disability shall be effective
until fifteen days after either Party gives written notice of such termination
to the other Party.

      

       

      (c) For
purposes of this Agreement:

       

      (i) the term
“Pro-Rata
Bonus” shall mean: an amount equal to 200% of the Salary that Executive
earned, through the Termination Date, for the calendar year during which his
employment under this Agreement terminated;

       

      (ii) the term
“Stock Option”
shall mean: any compensatory option or warrant to acquire securities of the
Company or any of its affiliates; any compensatory stock appreciation right,
phantom stock option or analogous right granted by or on behalf of the Company
or any of its affiliates; and any securities or rights received in respect of
any of the foregoing securities or rights;

       

      (iii) the term
“Restricted
Stock” shall mean: any compensatory restricted stock of the Company or
any of its affiliates; any compensatory phantom shares or analogous rights
granted by or on behalf of the Company or any of its affiliates (other than
Performance Shares); and any securities or rights received in respect of any of
the foregoing securities or rights;

       

      (iv) the term
“Performance
Cash” shall mean: any long-term incentive compensation awards payable in
cash based (in whole or in part) upon the achievement of performance-based
vesting criteria; and any securities or rights received in respect of the
foregoing awards;

       

      (v) the term
“Performance
Shares” shall mean: any compensatory performance shares and compensatory
performance units of the Company; and any securities or rights received in
respect of the foregoing shares or units;

       

      (vi) the term
“Termination
Date” shall mean: the effective date of the termination of Executive’s
employment under this Agreement.

       

      (vii) the term
“Person” shall
mean: any individual, corporation, partnership, limited liability company, joint
venture, trust, estate, board, committee, agency, body, employee benefit plan,
or other person or entity.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      3.2  Termination
for Cause; Voluntary Quit.

       

      (a) For
purposes of this Agreement, the term “Cause” shall
mean:

       

      (i) Executive’s
willful material breach of an obligation or representation under this Agreement
or of any material fiduciary duty to the Company or any of its affiliates, or
any willful act of fraud or willful misrepresentation or willful concealment to
the Company, the Board or any affiliate, in each case that results or should
reasonably be expected to result in material harm to the Company, the Board or
any affiliate of the Company;

       

      (ii) Executive’s
willful and material failure to adhere to (A) any Code of Conduct in effect from
time to time and applicable to officers and/or employees generally or (B) any
written policy, in each case that results or should reasonably be expected to
result in material harm to the Company, the Board or any affiliate of the
Company;

       

      (iii) Executive
is convicted of, or pleads guilty or nolo contendere to,
any felony or to a misdemeanor involving moral turpitude; or

       

      (iv) conduct
by Executive in connection with his employment hereunder that constitutes
willful misconduct or willful neglect, and that in each case results (or should
reasonably be expected to result) in material harm to the Company or any
affiliate.

       

      (b) No
termination of Executive’s employment shall be effective as a termination for
Cause for purposes of this Agreement or any other “Company Arrangement” (as
defined in Section 3.5(d) below) unless the provisions of this
Section 3.2(b) shall first have been complied with. Executive shall be
given written notice by the Board of its intention to terminate his employment
for Cause, such notice (the “Cause Notice”)
 to state in detail the particular circumstances that constitute the
grounds on which the proposed termination for Cause is based. Executive shall
have ten (10) days after receiving such Cause Notice in which to cure such
grounds to the reasonable satisfaction of the Board. If he fails to timely cure
such grounds, Executive shall then be entitled to a hearing before such Board.
Such hearing shall be held within fifteen (15) days of his receiving such Cause
Notice, provided that he
requests such hearing within ten (10) days after receiving such Cause Notice.
If, within ten (10) days following such hearing (if timely requested), and
otherwise within twenty (20) days after such Cause Notice is given to Executive,
the Board gives written notice to Executive confirming that, in the judgment of
at least a majority of the members of the Board, Cause for terminating his
employment on the basis set forth in the original Cause Notice exists, his
employment hereunder shall thereupon be terminated for Cause, subject to de novo review, at
Executive’s election, through arbitration in accordance with Section
9.5.

       

      (c) In the
event that Executive’s employment hereunder is terminated by the Company for
Cause in accordance with Section 3.2(b), the Term shall expire and he shall
be entitled to (x) the right to exercise any Stock Option, to the extent that
such Stock Option is nonforfeitable as of the Termination Date, for at least the
lesser of 30 days following the Termination Date and the remainder of its
maximum stated term and (y) the benefits described in Section 3.5.

       

       

      
        
          
          

        

        
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      (d) In the
event that Executive’s employment hereunder is terminated by Executive on his
own initiative, other than by death, for Disability, in a Good Reason
Termination, or by expiration of the Term in accordance with Section 1.2 at
11:59 p.m. on June 30, 2010, the Term shall expire and he shall have the same
entitlements as provided in Section 3.2(c) in the case of a termination for
Cause. A voluntary termination under this Section 3.2(d) shall not be deemed a
breach of this Agreement.

       

      3.3  Termination Without Cause or With Good
Reason.

       

      (a) In the
event that Executive’s employment hereunder terminates during the Term in a Good
Reason Termination, or is terminated by the Company (other than (x) for
Disability in accordance with Section 3.1; (y) for Cause in accordance with
Section 3.2, or (z) upon expiration of the Term at 11:59 p.m. on June 30,
2010 in accordance with Section 1.2) the Term shall expire and Executive shall
be entitled to:

       

      (i) a cash
lump sum equal to three (3) times the sum of (x) his annualized Salary as
of the Termination Date plus (y) 200% of his annualized Salary as of the
Termination Date, such lump sum to be paid promptly after the requirements of
Section 3.3(d) are satisfied;

       

      (ii) full
nonforfeitability and exercisability, as of the Termination Date, for any
outstanding Stock Option, with each such Stock Option to remain exercisable for
the lesser of two years following the Termination Date and the remainder of its
maximum stated term;

       

      (iii) full
vesting, as of the Termination Date, for any outstanding Restricted Stock, with
all restrictions on such Restricted Stock lapsing as of the Termination
Date;

       

      (iv) full
nonforfeitability, as of the Termination Date, of any right to receive
Performance Shares, with the number (if any), and the timing of the delivery, of
such shares determined as if all relevant performance goals had been achieved at
100% of target;

       

      (v) full
vesting, as of the Termination Date, and payment of any outstanding and unpaid
Performance Cash, determined as if all relevant performance goals had been
achieved at 100% of target;

       

      (vi) a lump
sum cash payment, to be made promptly following the satisfaction of the
requirements of Section 3.3(d), equal to thirty-six (36) times the monthly cost,
determined as of the Termination Date, for Executive and his covered dependents
to receive coverage under COBRA for health, dental and vision benefits then
being provided for Executive and his covered dependents (for the avoidance of
doubt this amount will not take into account future increases in costs during
the applicable time period), plus an additional amount such that Executive will
be in the same position as he would have been had no taxes been imposed upon or
incurred as a result of the payment described in this Section 3.3(a)(vi);
and

       

      (vii) the
benefits described in Section 3.5.

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (b) For
purposes of this Agreement, the term “Good Reason
Termination” shall mean a termination by Executive of his employment
hereunder following the occurrence of any of the following events without his
express written consent:

       

      (i) any
failure to continue Executive as President, Chief Executive Officer and a member
of the Board, but only if Executive objects in writing within 10 days of
learning of such event and the Company fails to cure within 30 days of receipt
of such written notice;

       

      (ii) any
adverse change in Executive’s reporting relationship, but only with respect to
facts of which Executive became aware no more than six months prior to the date
Executive gives written notice to the Company thereof and only if the Company
fails to cure within 30 days of receipt of such written notice;

       

      (iii) any
material diminution in Executive’s responsibilities or authorities, but only
with respect to facts of which Executive became aware no more than six months
prior to the date Executive gives written notice to the Company thereof and only
if the Company fails to cure within 30 days of receipt of such written
notice;

       

      (iv) any
relocation of Executive’s principal place of employment to a location more than
fifty (50) miles from the Company’s headquarters as of the Effective Date, but
only if Executive objects in writing within 10 days of learning of such event
and the Company fails to cure within 30 days of receipt of such written
notice;

       

      (v) any
material reduction in Executive’s Salary (except as permitted under Section 2.1)
or the Company’s failure to pay any material amount or provide any material
benefit due under the Agreement or otherwise, but only if Executive objects in
writing within 10 days of learning of such event and the Company fails to cure
within 30 days of receipt of such written notice; or

       

      (vi) any
failure of the Company to timely obtain the assumption in writing of its
obligations under this Agreement by any successor to all or substantially all of
its business or assets upon any reconstruction, amalgamation, combination,
merger, consolidation, sale, liquidation, dissolution or similar transaction,
but only if Executive objects in writing within 10 days of learning of such
event and the Company fails to cure within 30 days of receipt of such written
notice;

       

      No Good
Reason Termination shall be effective until at least 90 days after Executive
gives notice to the Company specifying the date on which the termination of his
employment hereunder shall occur. No termination that is based on a Good Reason
event (or events) occurring more than two years before the Termination Date
shall be treated as a Good Reason Termination.  Any Good Reason
Termination shall be subject to de novo review, at the
Company’s election, through arbitration in accordance with Section 9.5. In
addition, any termination by Executive of his employment hereunder during the
60-day period that commences 180 days after the occurrence of any Change in
Control shall be deemed to be a Good Reason Termination.

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (c) For
purposes of this Agreement, “Change in Control”
shall mean the occurrence of any of the following events:

       

      (i) any
“person,” as
such term is used in Section 13(d) of the Securities Exchange Act of 1934, or
group of persons, excluding the Allen Entities (as defined above) becomes
(directly or indirectly) a “beneficial owner”, as
such term is used as of the Effective Date in Rule 13d-3 promulgated under that
Act, of a percentage of the voting securities of the Company (measured either by
number of voting securities or by voting power) that is larger than the
percentage (if any) of the voting securities of the Company (measured in the
same fashion) that Vulcan, Inc. and its affiliates beneficially own (directly or
indirectly) at such time;

       

      (ii) a
majority of the Board consists of individuals other than “Incumbent Directors,”
which term means the members of the Board on the Effective Date; provided that any
individual becoming a director subsequent to such date whose election or
nomination for election was supported (other than in connection with any actual
or threatened proxy contest) by two-thirds of the directors who then comprised
the Incumbent Directors shall be considered to be an Incumbent Director;
or

       

      (iii) (x) the
Company combines with another entity and is the surviving entity, or (y) all or
substantially all of the assets or business of the Company is disposed of
pursuant to a sale, merger, consolidation, liquidation, dissolution or other
transaction or series of transactions (collectively, a “Triggering Event”),
unless Vulcan,
Inc. and its affiliates own, directly or indirectly, by reason of their
ownership of voting securities of the Company immediately prior to such
Triggering Event, more of the voting securities than any other shareholder
(measured both by number of voting securities and by voting power) of (q) in the
case of a combination in which the Company is the surviving entity, the
surviving entity and (r) in any other case, the entity (if any) that succeeds to
all or substantially all of the Company’s business and assets.

       

      (d) Prior to
receiving the payment described in Section 3.3(a)(i), Executive must first
execute and deliver to the Company, within forty-five (45) days following the
Termination Date, a mutual release in substantially the form attached to this
Agreement as Exhibit B, which
shall not have been revoked by Executive by the close of business on the seventh
day following its execution. Such mutual release shall be null and void unless
it is returned to Executive, duly executed by the Company, within ten (10)
business days following receipt by the Company.

       

      3.4  Expiration of the Term. In the
event that Executive’s employment hereunder terminates upon expiration of the
Term at 11:59 p.m. on June 30, 2010 in accordance with Section 1.2, Executive
shall be entitled:

       

      (a) to have
any Stock Option that is nonforfeitable or exercisable as of the Termination
Date or that becomes exercisable pursuant to Section 3.4(b) below be exercisable
for the lesser of one year following the Termination Date and the remainder of
its maximum stated term;

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (b) to (x)
nonforfeitability, as of the Termination Date, and exercisability, as of the
date(s) Stock Options would otherwise have become nonforfeitable or exercisable
had Executive remained employed by the Company indefinitely,
(y) nonforfeitability, as of the Termination Date, for any outstanding
Restricted Stock, and (z) nonforfeitability, as of the Termination Date,
for any outstanding Performance Shares that are not governed by Section 2.5 and
that, as of the Termination Date, are subject solely to vesting criteria based
upon Executive’s continued employment by the Company (i.e., those Performance
Shares for which the applicable performance-based vesting criteria have been
satisfied prior to the Termination Date), in each case to the extent that such
Stock Option, Restricted Stock or Performance Share is then scheduled to become
vested/nonforfeitable (or, with respect to Stock Options, exercisable) on or
before the first anniversary of the Termination Date;

       

      (c) a cash
amount equal to the Annual Bonus Executive would have been entitled to receive
for 2010 if his employment hereunder, and the Term, had continued indefinitely,
but he had earned no Salary after June 30, 2010, such cash amount to be paid to
Executive when annual bonuses for 2010 are paid to other senior executives of
the Company generally, but in no event later than March 15, 2011;
and

       

      (d) to the
benefits described in Section 3.5.

       

      3.5  Benefits On Any Termination. On
any termination of Executive’s employment hereunder, he shall be entitled
to:

       

      (a) Salary
through the Termination Date;

       

      (b) the
balance of any annual, long-term, or other incentive award earned in respect to
any period ending on or prior to the Termination Date, but not yet
paid;

       

      (c) a
lump-sum payment in respect of accrued but unused vacation days at his
per-business-day Salary in effect as of the date his employment
terminates;

       

      (d) other or
additional benefits in accordance with the terms of applicable plans, programs,
corporate governance documents, agreements and arrangements of the Company and
its affiliates (including Sections 2, 6, 7, and 9.5 of this Agreement)
(collectively, “Company
Arrangements”); and

       

      (e) payment,
promptly when due, of all amounts due in connection with the
termination.

       

      3.6  No Duplicative Severance.
Notwithstanding anything elsewhere to the contrary, to the extent that the
employment of Executive with the Company is terminated during the Term or upon
expiration of the Term, Executive shall not be entitled to, and waives any
rights under or with respect to, severance or other benefits under any existing
or future severance plans, policies, programs or guidelines established or
published by the Company, including that certain November 22, 2004 memorandum
regarding severance guidelines for executives.

       

      3.7  No Mitigation/No Offset.
Executive shall be under no obligation to seek other employment or otherwise
mitigate the obligations of the Company under this Agreement, and 

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

         

         

        there
shall be no offset against amounts or benefits due Executive under this
Agreement or otherwise on account of any claim (other than any preexisting debts
then due in accordance with their terms) the Company or its affiliates may have
against him or any remuneration or other benefit earned or received by Executive
after such termination.

      

       

      4.  Confidential
Information.

       

      4.1  Acknowledgements by Executive.
Executive acknowledges that (a) while employed by the Company and as
a part of Executive’s employment, Executive will be afforded access to
Confidential Information (as defined below); (b) public disclosure of such
Confidential Information could have an adverse effect on the Company and its
business; (c) because Executive possesses substantial technical expertise
and skill with respect to the Company’s business, the Company desires to obtain
exclusive ownership of each invention by Executive, and the Company will be at a
substantial competitive disadvantage if it fails to acquire exclusive ownership
of each invention by Executive; and (d) the provisions of this Section 4
are reasonable and necessary to prevent the improper use or disclosure of
Confidential Information and to provide the Company with exclusive ownership of
all inventions and works made or created by Executive.

       

      4.2  Confidential Information.
Executive acknowledges that while employed by the Company Executive will have
access to and may obtain, develop, or learn of “Confidential Information” (as
defined below in this Section 4.2) under and pursuant to a relationship of trust
and confidence. Executive shall hold such Confidential Information in strictest
confidence and never at any time, during or after the termination of Executive’s
employment, directly or indirectly use for Executive’s own benefit or otherwise
(except in connection with the performance of duties for the Company or any of
its affiliates) any Confidential Information, or divulge, reveal, disclose or
communicate any Confidential Information to any unauthorized Person in any
manner whatsoever
except (v) to the Company and its affiliates, or to any authorized (or
apparently authorized) agent or representative of any of them, (w) in connection
with performing services for the Company and its affiliates, (x) when required
to do so by law or by a court, governmental agency, legislative body, arbitrator
or other Person with apparent jurisdiction to order him to divulge, disclose or
make accessible such information, (y) in the course of any proceeding under
Section 5.7 or 9.5 or (z) in confidence to an attorney or other professional
advisor for the purpose of securing professional advice. In the event that
Executive intends to disclose any Confidential

       

      Information
pursuant to clause (x) or (y) of the immediately preceding sentence, he shall
(A) first promptly give the Company notice that such disclosure is or may
be made and (B) cooperate with the Company, at its reasonable request and
subject to such reasonable conditions as he may reasonably establish, in seeking
to protect the confidentiality of the Confidential Information.

       

      As used
in this Agreement, the term “Confidential
Information” shall include, but shall not be limited to, any of the
following information relating to the Company learned by Executive while
employed by the Company or as a result of Executive’s employment with the
Company:

       

      (a) information
regarding the Company’s business proposals, manner of the Company’s operations,
and methods of selling or pricing any products or services;

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (b) the
identity of persons or entities actually conducting or considering conducting
business with the Company, and any information in any form relating to such
persons or entities and their relationship or dealings with the Company or its
affiliates;

       

      (c) any trade
secret or confidential information of or concerning any business operation or
business relationship;

       

      (d) computer
databases, software programs and information relating to the nature of the
hardware or software and how said hardware or software are used in combination
or alone;

       

      (e) information
concerning Company personnel, confidential financial information, customer or
customer prospect information, information concerning subscribers, subscriber
and customer lists and data, methods and formulas for estimating costs and
setting prices, engineering design standards, testing procedures, research
results (such as marketing surveys, programming trials or product trials), cost
data (such as billing, equipment and programming cost projection models),
compensation information and models, business or marketing plans or strategies,
deal or business terms, budgets, vendor names, programming operations, product
names, information on proposed acquisitions or dispositions, actual performance
compared to budgeted performance, long-range plans, internal financial
information (including but not limited to financial and operating results for
certain offices, divisions, departments, and key market areas that are not
disclosed to the public in such form), results of internal analyses, computer
programs and programming information, techniques and designs, and trade
secrets;

       

      (f) information
concerning the Company’s employees, officers, directors and shareholders;
and

       

      (g) any other
trade secret or information of a confidential or proprietary
nature.

       

      Executive
shall not make or use any notes or memoranda relating to any Confidential
Information except for the benefit of the Company, and shall, at the Company’s
request, return each original and every copy of any and all notes, memoranda,
correspondence, diagrams or other records, in written or other form, that
Executive may then or later have within his possession or control that contain
any Confidential Information.

       

      Notwithstanding
the foregoing, Confidential Information shall not include information which has
come within the public domain through no fault of or action by Executive or
which has become rightfully available to Executive on a non-confidential basis
from any third party, the disclosure of which to Executive does not violate any
contractual or legal obligation such third party has to the Company or its
affiliates with respect to such Confidential Information. None of the foregoing
obligations and restrictions applies to any part of the Confidential Information
that Executive demonstrates was or became generally available to the public
other than as a result of a disclosure by Executive or by any other Person bound
by a confidentiality obligation to the Company in respect of such Confidential
Information.

       

       

      
        
          
          

        

        
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      Executive
shall not remove from the Company’s premises (except to the extent such removal
is for purposes of performing his duties, or except as otherwise specifically
authorized by the Company) any Company document, record, notebook, plan, model,
component, device, or computer software or code, whether embodied in a disk or
in any other form (collectively, the “Proprietary Items”).
Executive recognizes that, as between the Company and Executive, all of the
Proprietary Items, whether or not developed by Executive, are the exclusive
property of the Company.

       

      On or
promptly following the Termination Date, Executive shall promptly return to the
Company (or destroy) all documents, and other data repositories, containing
Confidential Information that are then in his possession or control; provided that nothing
in this Agreement or elsewhere shall prevent Executive from retaining and
utilizing copies of benefits plans and programs in which he retains an interest
or other documents relating to his personal entitlements and obligations, his
desk calendars, his rolodex, and the like, or such other records and documents
as may reasonably be approved by the Company.

       

      4.3  Proprietary Developments.
Executive shall, promptly upon reasonable request, disclose to Company all
inventions (whether patentable or not), trade secrets, trademark concepts, and
advertising and marketing concepts (collectively, hereinafter referred to as
“Developments”), that
he makes, alone or with others, during his employment with Company relating to
its business. “Developments” do not include anything possessed or created by
Executive before Executive commenced employment with the Company. Company will
exclusively own all Developments. Executive hereby assigns to the Company all
rights that he has or acquires in any Developments, and he shall execute any
documents and take any actions as reasonably requested by the Company necessary
to effect that assignment. Executive need not incur any cost related to that
assignment or the creation of any related intellectual property rights. The
Parties agree that Developments are Confidential Information.

       

      4.4  Cooperation. Both while employed
by the Company and thereafter, Executive shall fully cooperate with the
Company’s reasonable requests in the protection and enforcement of any
intellectual property rights that relate to services performed by Executive for
Company, whether under the terms of this Agreement or otherwise. This shall
include, upon reasonable request by the Company, executing, acknowledging, and
delivering to Company all documents or papers that may be necessary to enable
Company to publish or protect such intellectual property rights. The Company
shall bear all costs in connection with Executive’s compliance with the terms of
this Section 4.4.

       

      5.  Non-Competition and
Non-Solicitation.

       

      5.1  Acknowledgments by Executive.
Executive acknowledges and agrees that: (a) the services to be performed by
Executive under this Agreement are of a special, unique, unusual, extraordinary,
and intellectual character; (b) the Company competes with other businesses that
are or could be located in any part of the United States; and (c) the provisions
of this Section 5 are reasonable and necessary to protect the Company’s
business and lawful protectable interests, and do not impair Executive’s ability
to earn a living.

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      5.2  Covenants of Executive. For
purposes of this Section 5.2, the term “Restricted Period”
shall mean the period commencing on the Effective Date and terminating
(i) December 31, 2010 if the Term ends at 11:59 p.m. on June 30, 2010 in
accordance with Section 1.2, (ii) the later of June 30, 2010 and the first
anniversary of the Termination Date if Executive is not entitled to any payment
pursuant to Section 3.3(a)(i) and if clauses (i) and (iii) of this sentence do
not apply, or (iii) 24 months after the Termination Date if Executive is
entitled to a payment pursuant to Section 3.3(a)(i) or would be so entitled if
he were to deliver an executed Release. In consideration of the compensation and
benefits to be paid or provided to Executive by the Company, Executive covenants
and agrees that during the Restricted Period Executive will not, directly or
indirectly, for Executive’s own benefit or for the benefit of any other person
or entity other than the Company, other than in connection with his services for
the Company and its affiliates:

       

      (a) perform
material services for, or otherwise have material involvement with (whether as
an officer, director, partner, consultant, security holder, owner, employee,
independent contractor or otherwise), any Person that competes materially
(whether directly or indirectly) with the Company and its affiliates in the
“Business” (as such term is defined below in this Section 5.2) in the United
States or elsewhere; provided that
Executive may in any event (x) own up to a 1% passive ownership interest in any
public or private entity, (y) be employed by, or otherwise have an association
with, any business that competes with the Company or its affiliates in the
Business if his employment or association is with a separately managed and
operated division or affiliate of such business that does not compete with the
Company or its affiliates in the Business and he has no business communication
relating to the Business with employees of any division or affiliate of such
business that does compete with the Company or its affiliates in the Business,
and (z) serve on the board of any business entity that participates in the
Business as an immaterial part of its overall business, provided that he
recuses himself fully and completely from all matters relating to the Business;
or

       

      (b) personally
solicit, or personally aid in the solicitation of, (whether directly or
indirectly) any individual who is, at the time of such solicitation, employed as
an employee of the Company (or who was so employed at any time within a period
of six (6) months immediately prior to the date on which Executive solicited or
aided in the solicitation of such individual) to cease such employment (provided, however,
that this paragraph (b) shall not apply to Executive’s secretary);
or

       

      (c) personally
solicit, or personally aid in the solicitation of, (whether directly or
indirectly) any Person that Executive knows was (or has been informed by the
Company that such person was) a customer or a prospective customer (a
prospective customer being one to whom the Company had made a business proposal
within twelve (12) months prior to the time Executive’s employment terminated)
of the Company at any time while Executive is employed by the Company for the
purpose of (a) selling services or products to such Person in competition with
the Company (and its affiliates) in the Business or (b) inducing such Person to
cancel, transfer or cease doing Business in whole or in part with the Company or
any of its affiliates; provided that the
restrictions set forth in clauses (a), (b) and (c) of this Section 5.2 shall
immediately expire in the event that the Company, or any of its affiliates,
shall have materially breached, on or after the Termination Date, any of its
material obligations to Executive under this Agreement or otherwise, which
breach shall have continued uncured for twenty (20) days 

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

         

         

        after
Executive has given written notice to the Company identifying the breach and
requesting cure.

      

       

      For
purposes of this Agreement, the term “Business” means: the
ownership or operation of cable television systems; the provision of direct
television or of satellite-based, telephone-based, internet-based, or wireless
systems for delivering television, music or other entertainment programming; the
provisions of telephony services using cable connection; and the provision of
data or internet service, and any other business of the Company and its
subsidiaries and affiliates that, as of the time of Executive’s termination of
employment, generates annual revenues in excess of $100 million. If Executive
violates any covenant contained in this Section 5.2, then the term of such
covenant shall be extended by the period of time Executive was in violation of
the same.

       

      5.3  Provisions Pertaining to the
Covenants. Executive recognizes that the existing business of the Company
extends throughout the United States and may extend hereafter to other countries
and territories and agrees that the scope of Section 5.2 shall extend to the
entire United States and any other country or territory where the Company
hereafter operates or conducts business. It is agreed that Executive’s services
hereunder are special, unique, unusual and extraordinary giving them peculiar
value, the loss of which cannot be reasonably or adequately compensated for by
damages, and in the event of Executive’s breach of this Section 5.3, the Company
shall be entitled to seek equitable relief by way of temporary or permanent
injunction, temporary restraining order or similar relief.

       

      5.4  Mutual Non-Disparagement.
Executive agrees not to intentionally make, or intentionally cause any
other Person to make, any public statement that is intended to criticize or
disparage the Company, its affiliates, or any of their respective senior
executive officers or directors. The Company agrees to use it best reasonable
efforts to cause its senior executive officers and directors not to
intentionally make, or intentionally cause any other Person to make, any public
statement that is intended to criticize or disparage Executive. This Section 5.4
shall not be construed to prohibit any Person from responding publicly to
incorrect public statements or from making truthful statements when required by
law, subpoena, court order, or the like.

       

      5.5  Severability; Waiver. If any
provision of Section 4 or 5 of this Agreement is deemed to be unenforceable by a
court or arbitrator (whether because of the subject matter of the provision, the
duration of a restriction, the geographic or other scope of a restriction or
otherwise), that provision shall not be rendered void but the Parties instead
agree that the court or arbitrator shall amend and alter such provision to such
lesser degree, time, scope, extent and/or territory as will grant the Company
the maximum restriction on Executive’s activities permitted by applicable law in
such circumstances. The Company’s failure to exercise its rights to enforce the
provisions of this Agreement shall not be affected by the existence or
non-existence of any other similar agreement for anyone else employed by the
Company or by the Company’s failure to exercise any of its rights under any such
agreement.

       

      5.6  Notices. In order to preserve
the Company’s rights under Sections 4 and 5, the Company and Executive are each
authorized to advise any potential or future employer, any third party with whom
Executive may become employed or enter into any business or contractual
relationship with, and any third party whom Executive may contact for any such
purpose, of the 

       

      
        
          
          

        

        
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        existence
of this Agreement and the terms of Sections 4 and 5, and the Company shall not
be liable if it does so.

      

       

      5.7  Injunctive Relief and Additional
Remedies. The Parties acknowledges that any injury that would be suffered
as a result of a material breach of the provisions of Sections 4 and 5 of
this Agreement could be irreparable and that an award of monetary damages for
such a material breach could be an inadequate remedy. Therefore, in the event of
any actual or threatened breach by a Party of any of the provisions of Section 4
or 5 above, the other Party shall be entitled to seek, through arbitration in
accordance with Section 9.5 or from any court with jurisdiction over the matter
and the defendant(s), temporary, preliminary and permanent equitable/injunctive
relief restraining the defendant(s) from violating such provision and to seek,
in addition, but solely through arbitration in accordance with Section 9.5,
money damages, together with any and all other remedies available under
applicable law.

       

      5.8  No Other Post-Employment
Restrictions. There shall be no contractual, or similar, restrictions on
Executive’s post-employment activities other than as expressly set forth in this
Agreement unless otherwise agreed in writing by the Parties in accordance with
Section 9.3(b).

       

      6.  “Golden Parachute” Taxation.
In the event that any payment or benefit made or provided to or for the
benefit of Executive in connection with this Agreement, the Prior Employment
Agreement, or his employment with the Company or the termination thereof (a
“Payment”) is
determined to be subject to any excise tax (“Excise Tax”) imposed
by Section 4999 of the Internal Revenue Code (or any successor to such
Section), the Company shall pay to Executive, prior to the time any Excise Tax
is payable with respect to such Payment (through withholding or otherwise), an
additional amount which, after the imposition of all income, employment, excise
and other taxes, penalties and interest thereon, is equal to the sum of
(i) the Excise Tax on such Payment plus (ii) any penalty and interest
assessments associated with such Excise Tax. The amount and timing of any
payment required by this Section 6 shall be determined in the first
instance by a nationally-recognized independent auditor (the “Auditor”) selected
and paid by the Company (who may be the Company’s usual auditor); provided,
however, that in no event shall any such payment be paid to Executive later than
the end of the calendar year next following the calendar year in which the
related tax is paid by Executive. The Parties shall cooperate with each other in
connection with any “Proceeding” or “Claim” (each as defined in Section 7.1
below) relating to the existence or amount of any liability for Excise Tax. All
expenses relating to any such Proceeding or Claim (including attorneys’ fees and
other expenses incurred by Executive in connection therewith) shall be paid by
the Company promptly upon demand by Executive, and (for avoidance of doubt) any
such payment shall be subject to gross-up under this Section 6 in the event
that Executive is subject to Excise Tax on it.

       

      7.  Indemnification.

       

      7.1  If
Executive is made a party, is threatened to be made a party, or reasonably
anticipates being made a party, to any actual, threatened or reasonably
anticipated action, suit or proceeding, whether civil, criminal, administrative,
investigative, appellate, formal, informal, or other (a “Proceeding”) by
reason of the fact that he is or was a director, officer, member, employee,
agent, manager, trustee, consultant or representative of the Company or any of
its 

       

      
        
          
          

        

        
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        subsidiaries
or affiliates, or is or was serving at the request of the Company or any of its
subsidiaries or affiliates or in connection with his service hereunder, as a
director, officer, member, employee, agent, manager, trustee, fiduciary,
consultant or representative of another Person, or if any claim, demand,
request, investigation, dispute, controversy, threat, discovery request, or
request for testimony or information (a “Claim”) is made, is
threatened to be made, or is reasonably anticipated to be made, that arises out
of or relates to Executive’s service in any of the foregoing capacities or his
agreeing to become employed hereunder, then Executive shall promptly be
indemnified and held harmless to the fullest extent permitted or authorized by
the Certificate of Incorporation or Bylaws of the Company, or if greater, by
applicable law, against any and all costs, expenses, liabilities and losses
(including, without limitation, attorneys’ and other professional fees and
charges, judgments, interest, expenses of investigation, penalties, fines, ERISA
excise taxes or penalties and amounts paid or to be paid in settlement) incurred
or suffered by Executive in connection therewith or in connection with seeking
to enforce his rights under this Section 7.1, and such indemnification shall
continue as to Executive even if he has ceased to be a director, officer,
member, employee, agent, manager, trustee, fiduciary, consultant or
representative of the Company or other applicable entity and shall inure to the
benefit of his heirs, executors and administrators. To the extent permitted by
applicable law, Executive shall be entitled to prompt advancement of any and all
costs and expenses (including attorneys’ and other professional fees and
charges) incurred by him in connection with any such Proceeding or Claim, or in
connection with seeking to enforce his rights under this Section 7.1, any such
advancement to be made within fifteen (15) days after Executive gives written
notice, supported by reasonable documentation, requesting such advancement. Such
notice shall include an undertaking by Executive to repay the amount advanced if
he is ultimately determined not to be entitled to indemnification against such
costs and expenses. Nothing in this Agreement shall operate to limit or
extinguish any right to indemnification, advancement of expenses, or
contribution that Executive would otherwise have (including by agreement or
under applicable law).

      

       

      7.2  Neither
the failure of the Company (including its Board, independent legal counsel or
stockholders) to have made a determination prior to the commencement of any
Proceeding concerning payment of amounts claimed by Executive under Section 7.1
that indemnification of Executive is proper because he has met the applicable
standard of conduct, nor a determination by the Company (including its Board,
independent legal counsel or stockholders) that Executive has not met such
applicable standard of conduct, shall create a presumption that Executive has
not met the applicable standard of conduct.

       

      7.3  A
directors’ and officers’ liability insurance policy (or policies) shall be kept
in place, during the Term and thereafter until the sixth anniversary of the
Termination Date, providing coverage to Executive that is no less favorable to
him in any respect (including with respect to scope, exclusions, amounts, and
deductibles) than the coverage then being provided to any other present or
former senior executive or director of the Company.

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      8.  Representations And Further
Agreements.

       

      8.1  Executive
represents, warrants and covenants to the Company that:

       

      (a) on or
prior to the date hereof, Executive has informed the Company of any judgment,
order, agreement or arrangement of which he is currently aware and which may
affect his right to enter into this Agreement and to fully perform his duties
hereunder;

       

      (b) Executive
is knowledgeable and sophisticated as to business matters, and that prior to
assenting to the terms of this Agreement, or giving the representations and
warranties herein, he has been given a reasonable time to review it and has
consulted with counsel of his choice;

       

      (c) in
entering into this Agreement, Executive is not knowingly breaching or violating
any provision of any law or regulation; and

       

      (d) Executive
has not knowingly provided to the Company, nor been requested by the Company to
provide, any confidential or non-public document or information of a former
employer that constitutes or contains any protected trade secret, and shall not
knowingly use any protected trade secrets of any former employer in the course
of his employment hereunder.

       

      8.2  The
Company represents and warrants that (a) it is fully authorized by action of the
Board (and of any other Person or body whose action is required) to enter into
this Agreement and to perform its obligations under it, (b) the execution,
delivery and performance of this Agreement by it does not violate any applicable
law, regulation, order, judgment or decree or any agreement, arrangement, plan
or corporate governance document to which it is a party or by which it is bound
and (c) upon the execution and delivery of this Agreement by the Parties, this
Agreement shall be a valid and binding obligation of the Company, enforceable
against it in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors’ rights generally.

       

      8.3  During
the Term and thereafter Executive shall, upon reasonable request and subject to
such reasonable condition as Executive may reasonably establish: (a) cooperate
with the Company in connection with any matter that arose during Executive’s
employment and that relates to the business or operations of the Company or any
of its parent or subsidiary corporations or affiliates, or of which Executive
may have any knowledge or involvement; and (b) consult with and provide
information to the Company and its representatives concerning such matters. Such
cooperation shall be rendered at reasonable times and places and in a manner
that does not unreasonably interfere with any other employment in which
Executive may then be engaged. Nothing in this Agreement shall be construed or
interpreted as requiring Executive to provide any testimony or affidavit that is
not truthful.

       

      9.  General
Provisions.

       

      9.1  Binding Effect; Delegation of Duties
Prohibited. No rights or obligations of the Company under this Agreement
may be assigned or transferred by the Company except that such rights and
obligations may be assigned or transferred pursuant to a merger or
consolidation, or 

       

       

      
        
          
          

        

        
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        the sale
or liquidation of all or substantially all of the business and assets of the
Company, provided that the
assignee or transferee is the successor to all or substantially all of the
business and assets of the Company and such assignee or transferee assumes the
liabilities, obligations and duties of the Company, as contained in this
Agreement, either contractually or as a matter of law. In the event of any
merger, consolidation, other combination, sale of business and assets, or
liquidation as described in the preceding sentence, the Company shall use its
best reasonable efforts to cause such assignee or transferee to promptly and
expressly assume the liabilities, obligations and duties of the Company
hereunder. The duties and covenants of Executive under this Agreement, being
personal, may not be assigned or delegated.

      

       

      9.2  Notices. Any notice, consent,
demand, request, or other communication given to a Person in connection with
this Agreement shall be in writing and shall be deemed to have been duly given
to such Person (x) when delivered personally to such Person or (y), provided
that a written acknowledgment of receipt is obtained, five days after being sent
by prepaid certified or registered mail, or two days after being sent by a
nationally recognized overnight courier, to the address (if any) specified below
for such Person (or to such other address as such Person shall have specified by
ten days’ advance notice given in accordance with this Section 9.2) or (z), in
the case of the Company only, on the first business day after it is sent by
facsimile to the facsimile number set forth below (or to such other facsimile
number as shall have specified by ten days’ advance notice given in accordance
with this Section 9.2), with a confirmatory copy sent by certified or registered
mail or by overnight courier in accordance with this Section 9.2.

       

      If to the
Company: 

       

      Charter
Communications, Inc.

      Charter
Plaza

      12405
Powerscourt Drive

      St.
Louis, MO 63131

      Attn:
Chairman of the Board; General Counsel

       

      If to
Executive: 

       

      The
address of his principal residence as it appears in the Company’s records, with
a copy to him (during the Term) at his principal office

       

      If to a
successor or beneficiary of Executive:

       

      The
address most recently specified by Executive or his successor or
beneficiary.

       

      9.3  Miscellaneous.

       

      (a) This
Agreement contains the entire agreement between the Parties with respect to its
specific subject matter and supersedes the Prior Employment Agreement in its
entirety, as well as all prior oral and written communications, agreements and
understandings between the Parties concerning the subject matter of the Prior
Employment Agreement, except with respect to rights that had fully accrued under
the Prior Employment Agreement as of the Effective Date.

       

       

      
        
          
          

        

        
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      (b) No
provision in this Agreement may be amended unless such amendment is set forth in
a writing that expressly refers to the provision of this Agreement that is being
amended and that is signed by Executive and by an authorized (or apparently
authorized) officer of the Company. No waiver by any Person of any breach of any
condition or provision contained in this Agreement shall be deemed a waiver of
any similar or dissimilar condition or provision at the same or any prior or
subsequent time. To be effective, any waiver must be set forth in a writing
signed by the waiving Person and must specifically refer to the condition(s) or
provision(s) of this Agreement being waived.

       

      (c) In the
event of any inconsistency between any provision of this Agreement and any
provision of any employee handbook, personnel manual, or other Company
Arrangement, the provisions of this Agreement shall control to the extent more
favorable to Executive, unless Executive otherwise agrees in a writing that
expressly refers to the provision of this Agreement whose control he is
waiving.  Also for avoidance of doubt, Section 12.2 of the Company’s
2001 Stock Incentive Plan as amended through August 23, 2005 (relating to
Section 280G of the Internal Revenue Code) or comparable provision of any
successor plan thereto shall not apply to Executive, and Section 6 of this
Agreement shall instead apply.

       

      (d) The
headings of the Sections and sub-sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement. When used in this Agreement,
the word “including” shall not be construed as limiting any preceding words or
terms.

       

      (e) Except as
otherwise set forth in this Agreement, the respective rights and obligations of
the Parties hereunder shall survive any termination of Executive’s
employment.

       

      (f) To the
extent that any provision or portion of this Agreement shall be determined to be
invalid or unenforceable for any reason, in whole or in part, the remaining
provisions of this Agreement shall remain in full force and effect so as to
achieve the intentions of the Parties, as set forth in this Agreement, to the
maximum extent possible.

       

      (g) This
Agreement is deemed to be accepted and entered into in the State of Missouri and
shall be governed by and construed and interpreted according to the internal
laws of the State of Missouri without reference to conflicts of law principles
(provided that,
in the event of arbitration pursuant to Section 9.5, the arbitrators shall
enforce this Agreement in accordance with its express terms). With respect to
orders in aid or enforcement of arbitration awards and injunctive relief, venue
and jurisdiction is proper in the St. Louis County Circuit Court and (if federal
jurisdiction exists) the U.S. District Court for the Eastern District of
Missouri, and Executive and the Company waive all objections to jurisdiction in
any such forum and any defense or claim that either such forum is not a proper
forum, is not the most convenient forum, or is an inconvenient
forum.

       

      (h) To the
extent that any “additional tax” under Section 409A of the Internal Revenue Code
on any amount or benefit provided under this Agreement or any other Company
Arrangement would be avoided by delaying payment for six (6) months after the
termination of Executive’s employment with the Company (the “Delay Period”),
such payment 

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

         

         

        or
benefit shall be so delayed.  Upon the expiration of the Delay Period,
all payments and benefits delayed pursuant to this Section 9.3(h) (whether they
would have otherwise been payable in a single sum or in installments in the
absence of such delay) shall be paid, provided, or reimbursed to Executive in a
lump sum without interest (unless otherwise provided in the applicable Company
Arrangement), and any remaining payments and benefits due under this Agreement
shall be paid or provided in accordance with the normal payment dates specified
for them herein. In the event that Executive otherwise becomes subject to any
tax, interest, or penalty under Section 409A of the Internal Revenue Code or any
successor to such Section (collectively, a “409A Excise Tax”) in
connection with any payment or benefit under this Agreement or any other Company
Arrangement (a “Deferred Compensation
Payment”), then Executive shall be entitled to receive an additional
payment (a “409A
Gross-Up Payment”) prior to the date on which such 409A Excise Tax is due
to be paid (through withholding or otherwise) in an amount such that after
payment by Executive of all income, excise, employment and other taxes incurred
in connection with such Deferred Compensation Payment (and any interest or
penalties imposed with respect to such taxes), Executive retains an amount of
the 409A Gross-Up Payment equal to the 409A Excise Tax incurred in connection
with such Deferred Compensation Payment. If requested by Executive, all relevant
determinations shall be made in the first instance by a nationally-recognized
independent accounting firm retained by the Company, with all fees and expenses
to be paid by the Company. In no event shall any 409A Gross-Up Payment be paid
to Executive later than the end of the calendar year next following the calendar
year in which the related taxes are paid by Executive.

      

       

      (i) With
regard to any provision herein that provides for reimbursement of costs and
expenses or in-kind benefits, except as permitted by Section 409A of the Code,
all such payments shall be made on or before the last day of calendar year
following the calendar year in which the expense occurred.

       

      9.4  Beneficiaries/References.
Executive shall be entitled, to the extent permitted under applicable law and
applicable Company Arrangements, to select and change a beneficiary or
beneficiaries to receive any compensation or benefit hereunder following
Executive’s death by giving written notice thereof. In the event of Executive’s
death or a judicial determination of his incompetence, references in this
Agreement to Executive shall be deemed, where appropriate, to refer to his
beneficiary, estate or other legal representative.

       

      9.5  Arbitration. Any Claim arising
out of or relating to this Agreement, any other agreement between the Parties,
Executive’s employment with the Company, or any termination thereof
(collectively, “Covered Claims”)
shall (except to the extent otherwise provided in Section 5.7 with respect to
certain requests for injunctive relief) be resolved by binding confidential
arbitration, to be held in St. Louis, Missouri, before a panel or three
arbitrators in accordance with the National Rules for Resolution of Employment
Disputes of the American Arbitration Association and this Section 9.5. Judgment
upon the award rendered by the arbitrators may be entered in any court having
jurisdiction thereof. Pending the resolution of any Covered Claim, Executive
(and his beneficiaries) shall continue to receive all payments and benefits due
under this Agreement or otherwise, except to the extent that the arbitrators
otherwise provide. In the event of any such proceeding, the losing party (as
determined by the arbitrators) shall reimburse the prevailing party upon entry
of a final award resolving the subject of the dispute for all reasonable legal
expenses incurred.

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      9.6  Withholding Taxes. The Company
may withhold from any amounts payable under this Agreement (or otherwise) any
Federal, state, local or other taxes that it is required to withhold pursuant to
any applicable law or regulation.

       

      9.7  Counterparts; Facsimile
Signatures. This Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original copy of this Agreement and all
of which, when taken together, shall be deemed to constitute one and the same
agreement. This Agreement may be executed by facsimile signatures.

       

      [signature
page follows]

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, the
Parties have executed and delivered this Agreement as of September 26,
2008.

       

      CHARTER
COMMUNICATIONS, INC.

       

      

       

      By: /s/
Lynne Ramsey

      Name:  Lynne
Ramsey

      Title:    Senior
Vice President, Human Resources

      

      

      Executive

       

      

       

      /s/ Neil
Smit

      Neil
Smit

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      EXHIBIT
A

       

      For
purposes of Section 2.5(b)(ii)(D) of the Agreement, the following definitions
shall apply:

       

      (1)  “Adjusted EBITDA”
means, for any period, income from operations before depreciation and
amortization, impairment charges, stock compensation expense, and other
operating (income) expenses, such as special charges and (gain) loss on sale or
retirement of assets all as in the consolidated statements of operations of the
Company.

       

      (2)  “Leverage Ratio”
means, as to the Company and as of June 30, 2010, the ratio of:

       

      (a)           the
Consolidated Indebtedness of the Company on such date to

       

      (b)           the
aggregate amount of Adjusted EBITDA for the Company for the fiscal quarter
ending on or closest to June 30, 2010, multiplied by four.

       

      (3)  “Consolidated
Indebtedness” means, with respect to the Company as of June 30, 2010, the
sum, without duplication, of:

       

      (a)           the
total amount of outstanding Indebtedness of the Company and its subsidiaries,
plus

       

      (b)           the
total amount of Indebtedness of any other person that has been guaranteed by the
Company or one or more of its subsidiaries, plus

       

      (c)           the
aggregate liquidation value of all Disqualified Stock of the Company and all
preferred stock of the Company’s subsidiaries, in each case, determined on a
consolidated basis in accordance with GAAP.

       

      (4)  “Indebtedness” means,
with respect to any specified person, any indebtedness of such person, whether
or not contingent:

       

      (a)           in
respect of borrowed money;

       

      (b)           evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof);

       

      (c)           in
respect of banker’s acceptances;

       

      (d)           representing
capital lease obligations;

       

      (e)           in
respect of the balance deferred and unpaid of the purchase price of any
property, except any such balance that constitutes an accrued expense or trade
payable; or

       

      (f)           representing
the notional amount of any hedging obligations designed to protect the Company
or one or more of its subsidiaries against fluctuations in interest and currency
exchange rates,

       

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

       

      if and to
the extent any of the preceding items (other than letters of credit and such
hedging obligations) would appear as a liability upon a balance sheet of the
specified person prepared in accordance with GAAP.  In addition, the
term “Indebtedness”
includes all Indebtedness of others secured by a lien on any asset of the
specified person (whether or not such Indebtedness is assumed by the specified
person) and, to the extent not otherwise included, the guarantee by such
specified person of any indebtedness of any other person.

       

      The
amount of any Indebtedness outstanding as of any date shall be:

       

      (i)           the
accreted value thereof, in the case of any Indebtedness issued with original
issue discount; and

       

      (ii)           the
principal amount thereof, together with any interest thereon that is more than
30 days past due, in the case of any other Indebtedness.

       

      (5)  “Disqualified Stock”
means any equity security issued or issuable by the Company or one of its
subsidiaries that, by its terms (or by the terms of any security into which it
is convertible, or for which it is exchangeable, in each case at the option of
the holder thereof), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder thereof, in whole or in part, on or prior
to the date that is 91 days after the date on which any promissory notes issued
by the Company or one of its subsidiaries mature.  Notwithstanding the
preceding sentence, any equity security that would constitute Disqualified Stock
solely because the holders thereof have the right to require the Company to
repurchase such equity security upon the occurrence of a change of control or an
asset sale shall not constitute Disqualified Stock.

       

      (6)  “GAAP” means generally
accepted accounting principles, as established by the Financial Accounting
Standards Board.

       

      

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
B

       

      MUTUAL
RELEASE

       

      This
Mutual Release of Claims (this “Release”) is made as
of the “Termination Date” (as defined in that certain Employment Agreement,
effective as of July 1, 2008, to which Executive and the Company are parties, as
such agreement is from time to time amended in accordance with its terms (the
“Employment
Agreement”)), by and between CHARTER COMMUNICATIONS, INC.,
a Delaware corporation (together with its successors and assigns, the “Company”), and Neil
Smit, an individual (“Executive”).

       

      1. Release
of Claims by Executive.

       

      (a) Pursuant
to Section 3.3(d) of the Employment Agreement, Executive, with the intention of
binding himself and his heirs, executors, administrators and assigns
(collectively, and together with Executive, the “Executive
Releasors”), hereby releases, remises, acquits and forever discharges the
Company and each of its subsidiaries and affiliates (the “Company Affiliated
Group”), and their past and present directors, employees, agents,
attorneys, accountants, representatives, plan fiduciaries, and the successors,
predecessors and assigns of each of the foregoing (collectively, and together
with the members of the Company Affiliated Group, the “Company Released
Parties”), of and from (and agrees to promptly and fully indemnify each
Company Released Party against) any and all claims, actions, causes of action,
complaints, charges, demands, rights, damages, debts, sums of money, accounts,
financial obligations, suits, expenses, attorneys’ fees and liabilities of
whatever kind or nature in law, equity or otherwise, whether accrued, absolute,
contingent, unliquidated or otherwise and whether now known or unknown,
suspected or unsuspected, that arise out of, or relate in any way to,
Executive’s employment with the Company or the termination thereof
(collectively, “Released Claims”) and
that Executive, individually or as a member of a class, now has, owns or holds,
or has at any time heretofore had, owned or held, against any Company Released
Party in any capacity, including any and all Released Claims (i) arising
out of or in any way connected with Executive’s service to any member of the
Company Affiliated Group (or the predecessors thereof) in any capacity
(including as an employee, officer or director), or the termination of such
service in any such capacity, (ii) for severance or vacation benefits,
unpaid wages, salary or incentive payments, (iii) for breach of contract,
wrongful discharge, impairment of economic opportunity, defamation, intentional
infliction of emotional harm or other tort, (iv) for any violation of
applicable state and local labor and employment laws (including all laws
concerning unlawful and unfair labor and employment practices) and (v) for
employment discrimination under any applicable federal, state or local statute,
provision, order or regulation, and including, without limitation, any claim
under Title VII of the Civil Rights Act of 1964 (“Title VII”), the Age
Discrimination in Employment Act (“ADEA”) and any
similar or analogous state statute, excepting only that no claim in respect of
any of the following rights shall constitute a Released Claim:

       

      (1) any right
arising under, or preserved by, this Release or Section 3, 4, 5, 6, 7, 8.3 or 9
of the Employment Agreement;

       

       

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

       

      (2) for
avoidance of doubt, any right to indemnification under (i) applicable
corporate law, (ii) the Employment Agreement, (iii) the by-laws or
certificate of incorporation of any Company Released Party, (iv) any other
agreement between Executive and a Company Released Party or (v) as an
insured under any director’s and officer’s liability insurance policy now or
previously in force;

       

      (3) for
avoidance of doubt, any claim for benefits under any health, disability,
retirement, life insurance or similar employee benefit plan of the Company
Affiliated Group (the “Company Benefit
Plans”); or

       

      (4) any right
arising by reason of any Company Released Party having committed a crime or an
act or omission to act which constitutes fraud, willful misconduct or gross
negligence.

       

      (b) No
Executive Releasor shall file or cause to be filed any action, suit, claim,
charge or proceeding with any governmental agency, court or tribunal relating to
any Released Claim within the scope of this Section 1.

       

      (c) In the
event any action, suit, claim, charge or proceeding within the scope of this
Section 1 is brought by any government agency, putative class
representative or other third party to vindicate any alleged rights of
Executive, (i) Executive shall, except to the extent required or compelled
by law, legal process or subpoena, refrain from participating, testifying or
producing documents therein, and (ii) all damages, inclusive of attorneys’
fees, if any, required to be paid to Executive by the Company as a consequence
of such action, suit, claim, charge or proceeding shall be repaid to the Company
by Executive within ten (10) days of his receipt thereof.

       

      (d) Certain
amounts and other benefits set forth in Section 3.3 of the Employment Agreement,
to which Executive would not otherwise be entitled, are being paid to Executive
in return for this Release and Executive’s agreements and covenants contained in
the Employment Agreement.  Executive acknowledges and agrees that the
release of claims set forth in this Section 1 is not to be construed in any
way as an admission of any liability whatsoever by any Company Released Party,
any such liability being expressly denied.

       

      (e) The
release of claims set forth in this Section 1 applies to any relief in
respect of any Released Claim of any kind, no matter how called, including
wages, back pay, front pay, compensatory damages, liquidated damages, punitive
damages, damages for pain or suffering, costs, and attorney’s fees and
expenses.  Executive specifically acknowledges that his acceptance of
the terms of the release of claims set forth in this Section 1 is, among
other things, a specific waiver of his rights, claims and causes of action under
Title VII, ADEA and any state or local law or regulation in respect of
discrimination of any kind; provided, however, that nothing herein shall be
deemed, nor does anything contained herein purport, to be a waiver of any right
or claim or cause of action which by law Executive is not permitted to
waive.

       

      2. Voluntary
Execution of Agreement.

       

      BY HIS
SIGNATURE BELOW, EXECUTIVE ACKNOWLEDGES THAT:

       

       

      
        
          
          

        

        
          B-2

          
            

          

        

        
          
          

        

      

       

      (a) HE HAS
RECEIVED A COPY OF THIS RELEASE AND WAS OFFERED A PERIOD OF TWENTY-ONE (21) DAYS
TO REVIEW AND CONSIDER IT;

       

      (b) IF HE
SIGNS THIS RELEASE PRIOR TO THE EXPIRATION OF TWENTY-ONE (21) DAYS, HE KNOWINGLY
AND VOLUNTARILY WAIVES AND GIVES UP THIS RIGHT OF REVIEW;

       

      (c) HE HAS
THE RIGHT TO REVOKE THIS RELEASE FOR A PERIOD OF SEVEN DAYS AFTER HE SIGNS IT BY
MAILING OR DELIVERING A WRITTEN NOTICE OF REVOCATION TO THE COMPANY NO LATER
THAN THE CLOSE OF BUSINESS ON THE SEVENTH DAY AFTER THE DAY ON WHICH HE SIGNED
THIS RELEASE;

       

      (d) THIS
RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE FOREGOING SEVEN-DAY
REVOCATION PERIOD HAS EXPIRED WITHOUT THE RELEASE HAVING BEEN
REVOKED;

       

      (e) THIS
RELEASE WILL, EXCEPT AS OTHERWISE PROVIDED IN 3.3(d) OF THE EMPLOYMENT
AGREEMENT, BE FINAL AND BINDING AFTER THE EXPIRATION OF THE FOREGOING REVOCATION
PERIOD REFERRED TO IN SECTION 2(c), AND FOLLOWING SUCH REVOCATION PERIOD
EXECUTIVE AGREES NOT TO CHALLENGE ITS ENFORCEABILITY;

       

      (f) HE IS
AWARE OF HIS RIGHT TO CONSULT AN ATTORNEY, HAS BEEN ADVISED IN WRITING TO
CONSULT WITH AN ATTORNEY, AND HAS HAD THE OPPORTUNITY TO CONSULT WITH AN
ATTORNEY, IF DESIRED, PRIOR TO SIGNING THIS RELEASE;

       

      (g) NO
PROMISE OR INDUCEMENT FOR THIS RELEASE HAS BEEN MADE EXCEPT AS SET FORTH IN THE
EMPLOYMENT AGREEMENT AND THIS RELEASE;

       

      (h) HE HAS
CAREFULLY READ THIS RELEASE, ACKNOWLEDGES THAT HE HAS NOT RELIED ON ANY
REPRESENTATION OR STATEMENT, WRITTEN OR ORAL, NOT SET FORTH IN THIS DOCUMENT OR
THE EMPLOYMENT AGREEMENT, AND WARRANTS AND REPRESENTS THAT HE IS SIGNING THIS
RELEASE KNOWINGLY AND VOLUNTARILY.

       

      3. Release
of Claims by the Company.

       

      (a) Pursuant
to Section 3.3(d) of the Employment Agreement, the Company, with the intention
of binding itself and each of the other Company Released Parties, hereby
releases, remises, acquits and forever discharges each Executive Releasor of and
from (and agrees to promptly and fully indemnify each Executive Releasor
against) any and all Released Claims which any Company Released Party,
individually or as a member of a class, now has, owns or holds, or has at any
time heretofore had, owned or held, against any Executive Releasor, excepting
only that no claim in respect of any of the following rights shall constitute a
Released Claim:

       

       

      
        
          
          

        

        
          B-3

          
            

          

        

        
          
          

        

      

       

      (1) any right
of any Company Released Party arising under, in or preserved by, this Release,
Section 3, 4, 5, 6, 7, 8.3 or 9 of the Employment Agreement, or any Company
Benefit Plan; and

       

      (2) any right
of any Company Released Party arising by reason of Executive having committed a
crime or an act or omission to act which constitutes fraud, willful misconduct
or gross negligence.

       

      (b) No
Company Released Party shall file or cause to be filed any action, suit, claim,
charge or proceeding with any governmental agency, court or tribunal relating to
any Released Claim within the scope of this Section 3.

       

      (c) The
Company acknowledges and agrees that the release of claims set forth in this
Section 3 is not to be construed in any way as an admission of any
liability whatsoever by any Executive Releasor, any such liability being
expressly denied.

       

      (d) The
release of claims set forth in this Section 3 applies to any relief with
respect to any Released Claim no matter how called, including compensatory
damages, liquidated damages, punitive damages, damages for pain or suffering,
costs, and attorney’s fees and expenses.

       

      (e) Nothing
herein shall be deemed, nor does anything contained herein purport, to be a
waiver of any right or claim or cause of action which by law any Company
Released Party is not permitted to waive.

       

      4. Miscellaneous.

       

      The
provisions of Sections 8.1(b), 8.1(c), 8.2, 9.1, 9.2, 9.3(b), 9.3(d), 9.3(f),
9.3(g), 9.4 (second sentence only), 9.5 and 9.7 of the Employment Agreement
(relating, respectively, to representations, successors, notices,
amendments/waivers, headings, severability, choice of law, references,
arbitration and counterparts/faxed signatures), shall apply to this Release as
if set fully forth in full herein, with references in such Sections to “this
Agreement” being deemed, as appropriate, to be references to this
Release.  For avoidance of doubt, this Section 4 has been included in
this Release solely for the purpose of avoiding the need to repeat herein the
full text of the referenced provisions of the Employment Agreement.

       

      [signature
page follows]

       

       

      
        
          
          

        

        
          B-4

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, the
Company and Executive have acknowledged, executed and delivered this Release as
of the Termination Date.

       

      Executive

       

      ___________________________

       

      Neil
Smit

       

      

       

      CHARTER
COMMUNICATIONS, INC.

      
 

       

      By:
________________________

                                      Name:

                                      Title:

       

      

      

      
        
          
          

        

        
          B-5

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