Document:

EX-10.40 FORM OF RESTRICTED STOCK UNITS AGREEMENT

 

Exhibit 10.40

RSU Agreement

For Use from December 2007

Time Warner Cable Inc.

Restricted Stock Units Agreement

General Terms and Conditions

          WHEREAS, the Company has adopted the Plan (as defined below), the terms of which are
hereby incorporated by reference and made a part of this Agreement; and

          WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its stockholders to grant the restricted stock units (the “RSUs”) provided for herein
to the Participant pursuant to the Plan and the terms set forth herein.

          NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

	1.	 	Definitions. Whenever the following terms are used in this Agreement, they shall
have the meanings set forth below. Capitalized terms not otherwise defined herein shall have
the same meanings as in the Plan.

	 	a)	 	“Cause” means, “Cause” as defined in an employment, consulting,
advisory or similar agreement between the Company or any of its Affiliates and the
Participant or, if not defined therein or if there is no such agreement, “Cause” means
(i) the Participant’s continued failure substantially to perform such Participant’s
duties (other than as a result of total or partial incapacity due to physical or mental
illness) for a period of ten (10) days following written notice by the Company or any
of its Affiliates to the Participant of such failure, (ii) dishonesty in the
performance of the Participant’s duties, (iii) the Participant’s conviction of, or plea
of nolo contendere to, a crime constituting (A) a felony under the laws of the United
States or any state thereof or (B) a misdemeanor involving moral turpitude, (iv) the
Participant’s insubordination, willful malfeasance or willful misconduct in connection
with the Participant’s duties or any act or omission which is injurious to the
financial condition or business reputation of the Company or any of its Affiliates, or
(v) the Participant’s breach of any non-competition, non-solicitation or
confidentiality provisions to which the Participant is subject. The determination of
the Committee as to the existence of “Cause” will be conclusive on the Participant and
the Company.
	 
	 	b)	 	“Disability” means, “Disability” as defined in an employment,
consulting, advisory or similar agreement between the Company or any of its Affiliates
and the Participant or, if not defined therein or if there shall be no such agreement,
“Disability” of the Participant shall have the meaning ascribed to such term in the
Company’s long-term disability plan or policy, as in effect from time to time, to
the extent that either such definition also constitutes such Participant being
considered “disabled” under Section 409A(a)(2)(C) of the Code.

 

 

	 	c)	 	“Good Reason” means “Good Reason” as defined in an employment,
consulting, advisory or similar agreement between the Company or any of its Affiliates
and the Participant or, if not defined therein or if there is no such agreement, “Good
Reason” means (i) the failure of the Company or any Affiliate to pay or cause to be
paid the Participant’s base salary or annual bonus when due or (ii) any substantial and
sustained diminution in the Participant’s authority or responsibilities materially
inconsistent with the Participant’s position; provided that either of the
events described in clauses (i) and (ii) will constitute Good Reason only if the
Company fails to cure such event within 30 days after receipt from the Participant of
written notice of the event which constitutes Good Reason; provided,
further, that “Good Reason” will cease to exist for an event on the sixtieth
(60th) day following the later of its occurrence or the Participant’s
knowledge thereof, unless the Participant has given the Company written notice of his
or her termination of Employment for Good Reason prior to such date.
	 
	 	d)	 	“Notice” means the Notice of Grant of Restricted Stock Units, which has
been provided to the Participant separately and which accompanies and forms a part of
this Agreement.
	 
	 	e)	 	“Participant” means an individual to whom RSUs as set forth in the
Notice have been awarded pursuant to the Plan and shall have the same meaning as may be
assigned to the terms “Holder” or “Participant” in the Plan.
	 
	 	f)	 	“Plan” means the equity plan, as such plan may be amended, supplemented
or modified from time to time, maintained by the Company that is specified in the
Notice.
	 
	 	g)	 	“Retirement” means a voluntary termination of Employment by the
Participant following the attainment of (i) age 55 with ten (10) or more years of
service as an employee or a director with the Company or any Affiliate or Time Warner
Affiliate or (ii) age 65 with five (5) or more years of service as an employee or a
director with the Company or any Affiliate or Time Warner Affiliate.
	 
	 	h)	 	“Severance Period” means the period of time following a termination of
Employment during which a Participant is entitled to receive both salary continuation
payments and continued participation under the health benefit plans of the Company or
any Affiliate or Time Warner Affiliate, whether pursuant to an employment contract
with, or a severance plan or other arrangement maintained by, the Company or any
Affiliate or Time Warner Affiliate. For the avoidance of doubt, unless otherwise
determined by the Committee, the Severance Period shall not include any time period
following the date on which a Participant commences employment with a subsequent
employer that is not an Affiliate or Time Warner Affiliate, regardless of whether the
Participant continues to receive salary
continuation payments from the Company or any Affiliate or Time Warner Affiliate
after such date.

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	 	i)	 	“Shares” means shares of Class A Common Stock, par value $.01 per
share, of the Company.
	 
	 	j)	 	“Time Warner Affiliate” means Time Warner Inc. and any entity that is
consolidated with Time Warner Inc. for financial reporting purposes or any other entity
designated by the Board in which Time Warner Inc. has a direct or indirect equity
interest of at least twenty percent (20%), measured by reference to vote or value so
long as the Company is consolidated with Time Warner Inc. for financial reporting
purposes.
	 
	 	k)	 	“Vesting Date” means each vesting date set forth in the Notice.

	2.	 	Grant of Restricted Stock Units. The Company hereby grants to the Participant (the
“Award”), on the terms and conditions hereinafter set forth, the number of RSUs set
forth on the Notice. Each RSU represents the unfunded, unsecured right of the Participant to
receive one Share on the date(s) specified herein or in the Notice. RSUs do not constitute
issued and outstanding Shares for any corporate purposes and do not confer on the Participant
any right to vote on matters that are submitted to a vote of holders of Shares.
	 
	3.	 	Dividend Equivalents and Retained Distributions. If on any date while RSUs are
outstanding hereunder the Company shall pay any regular cash dividend on the Shares, the
Participant shall be paid, for each RSU held by the Participant on the record date, an amount
of cash equal to the dividend paid on a Share (the “Dividend Equivalents”) at the time
that such dividends are paid to holders of Shares. If on any date while RSUs are outstanding
hereunder the Company shall pay any dividend other than a regular cash dividend or make any
other distribution on the Shares, the Participant shall be credited with a bookkeeping entry
equivalent to such dividend or distribution for each RSU held by the Participant on the record
date for such dividend or distribution, but the Company shall retain custody of all such
dividends and distributions (the “Retained Distributions”); provided,
however, that if the Retained Distribution relates to a dividend paid in Shares, the
Participant shall receive an additional amount of RSUs equal to the product of (i) the
aggregate number of RSUs held by the Participant pursuant to this Agreement through the
related dividend record date, multiplied by (ii) the number of Shares (including any fraction
thereof) payable as a dividend on a Share. Retained Distributions will not bear interest and
will be subject to the same restrictions and payment timing as the RSUs to which they relate.
	 
	4.	 	Vesting and Delivery of Vested Securities.

	 	a)	 	Subject to the terms and provisions of the Plan and this Agreement, no later
than 60 days after each Vesting Date with respect to the Award, the Company shall issue
or transfer to the Participant the number of Shares that vested on such Vesting Date as
set forth on the Notice and the Retained Distributions, if any,
covered by that portion of the Award. Except as otherwise provided in paragraphs 6
and 7, the vesting of such RSUs and any Retained Distributions relating thereto
shall occur only if the Participant has continued in Employment of 

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	 	 	 	the Company, any
of its Affiliates or any Time Warner Affiliate on the Vesting Date and has
continuously been so employed since the Date of Grant (as defined in the Notice).
	 	b)	 	RSUs Extinguished. Upon each issuance or transfer of Shares in
accordance with this Agreement, a number of RSUs equal to the number of Shares issued
or transferred to the Participant shall be extinguished and such number of RSUs will
not be considered to be held by the Participant for any purpose.
	 
	 	c)	 	Final Issuance. Upon the final issuance or transfer of Shares and
Retained Distributions, if any, to the Participant pursuant to this Agreement, in lieu
of a fractional Share, the Participant shall receive a cash payment equal to the Fair
Market Value of such fractional Share.

	5.	 	Termination of Employment.

	 	(a)	 	If the Participant’s Employment with the Company, its Affiliates and Time
Warner Affiliates is terminated prior to the Vesting Date by the Participant for any
reason other than those described in clauses (b) and (c) below with respect to any
portion of the Award, then the RSUs covered by any such portion of the Award and all
Retained Distributions relating thereto shall be completely forfeited on the date of
any such termination, unless otherwise provided in an employment, consulting, advisory
or similar agreement between the Participant and the Company or an Affiliate.
	 
	 	(b)	 	If the Participant’s Employment with the Company, its Affiliates and Time
Warner Affiliates terminates (i) as a result of his or her death or
Disability or (ii) as a result of his or her Retirement or by the Company, its
Affiliates or any Time Warner Affiliate for any reason other than for Cause on a
date when the Participant satisfies the requirements for Retirement, then the RSUs
for which a Vesting Date has not yet occurred and all Retained Distributions
relating thereto shall, to the extent the RSUs were not extinguished prior to such
termination of Employment, fully vest on the date of any such termination and Shares
subject to the RSUs shall be issued or transferred to the Participant as soon as
practicable, but not later than 90 days following such termination of Employment.
	 
	 	(c)	 	Subject to the terms of any employment, consulting, advisory or similar
agreement entered into by the Participant and the Company, an Affiliate or a Time
Warner Affiliate that provides for treatment of RSUs that is more favorable to the
Participant than the terms of this paragraph 5(c), if the Participant’s Employment with
the Company, its Affiliates and Time Warner Affiliates is terminated by the Company,
its Affiliates or any Time Warner Affiliate for any reason other than
for Cause (unless such termination is due to death, Disability, or Retirement), then
a pro rata portion of the RSUs that were scheduled to vest on the next Vesting Date,
and on any subsequent Vesting Dates that occur during a Severance Period, 

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	 	 	 	and any
Retained Distributions relating thereto, shall, to the extent the RSUs were not
extinguished prior to such termination of Employment, become vested, and Shares
subject to such RSUs shall be issued or transferred to the Participant on each
Vesting Date following such termination of Employment, determined as follows:

	 	(x)	 	the number of RSUs covered by the portion of
the Award that were scheduled to vest on such Vesting Date, multiplied
by;
	 
	 	(y)	 	a fraction, the numerator of which shall be the
number of days from the last Vesting Date (or the Date of Grant if
there was no prior Vesting Date) during which the Participant either
remained in Employment or was within a covered Severance Period, and
the denominator of which shall be the number of days from the last
Vesting Date (or the Date of Grant if there was no prior Vesting Date)
through the next succeeding Vesting Date.

                      If the product of (x) and (y) results in a fractional share, such fractional
share shall be rounded to the next higher whole share.

                 The RSUs and any Retained Distributions related thereto shall be completely
forfeited if they are not vested under this

paragraph 5(c).

	 	(d)	 	If (i) the Company or an Affiliate transfers the Participant’s Employment to a
corporation, company or other entity that is not a Time Warner Affiliate, (ii) the
Affiliate with which the Participant has a service relationship ceases to be an
Affiliate due to a sale or other disposition by the Company or an Affiliate or (iii)
the Company is no longer a Time Warner Affiliate and the Participant’s service
relationship is with a Time Warner Affiliate that is not the Company or an Affiliate,
the vesting of the RSU and the issuance of the Shares shall be governed by paragraph
5(c) hereof as if the Participant’s Employment with the Company and all Affiliates and
Time Warner Affiliates terminated on the date of such event.
	 
	 	 	 	For purposes of this paragraph 5, a temporary leave of absence shall not constitute a
termination of Employment or a failure to be continuously employed by the Company, any
Affiliate or a Time Warner Affiliate regardless of the Participant’s payroll status during
such leave of absence if such leave of absence (i) is approved in writing by the Company,
any Affiliate or any Time Warner Affiliate subject to the other terms and conditions of the
Agreement and the Plan and (ii) constitutes a bona fide leave of absence and not a
separation from service under Treas. Reg. §1.409A-1(h)(1)(i). Notice of any such approved
leave of absence should be sent to the Company, but such notice shall not be required for
the leave of absence to be considered approved.

	 
	 	 	 	In the event the Participant’s Employment with the Company, any of its

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	 	 	Affiliates or any Time Warner Affiliate is terminated, the Participant shall have no claim
against the Company with respect to the RSUs and related Retained Distributions, if any,
other than as set forth in this paragraph 5, the provisions of this paragraph 5 being the
sole remedy of the Participant with respect thereto.

	 
	6.	 	Acceleration of Vesting Date. Subject to paragraph 7 and the terms of any
employment, consulting, advisory or similar agreement entered into by the Participant and the
Company, an Affiliate or a Time Warner Affiliate that provides for treatment of RSUs that is
more favorable to the Participant than the terms of this paragraph 6, in the event of a Change
in Control that also constitutes a change in ownership or effective control of the Company, or
in the ownership of a substantial portion of the assets of the Company, within the meaning of
Section 409A(a)(2)(A)(v) of the Code (a “409A Change in Control Event”), to the extent the
Award has not been previously canceled or forfeited, (a) the Award will vest in full upon the
earlier of (i) the expiration of the one-year period immediately following the Change in
Control, provided the Participant’s Employment with the Company and its Affiliates has not
terminated, (ii) the original Vesting Date with respect to each portion of the Award, or (iii)
the termination of the Participant’s Employment with the Company or any of its Affiliates (x)
by the Company other than for Cause, (y) by the Participant for Good Reason, or (z) for death,
Disability, or Retirement and (b) Shares subject to the RSUs shall be issued or transferred to
the Participant, as soon as practicable, but in no event later than 60 days, following such
Vesting Date, along with the Retained Distributions related thereto; provided, however, that
notwithstanding the foregoing, to the extent that any such occurrence does not constitute a
409A Change in Control Event, the RSUs shall vest as described under this paragraph 6, but the
issuance of Shares shall be made at the times otherwise provided hereunder as if no Change in
Control had occurred. In the event of any such vesting as described in clauses (i) and (iii)
of the preceding sentence, the date described in such clauses shall be treated as the Vesting
Date.
	 
	7.	 	Limitation on Acceleration. Notwithstanding any provision to the contrary in the
Plan
or this Agreement, if the Payment (as hereinafter defined) due to the Participant hereunder
as a result of the acceleration of vesting and payment of the RSUs pursuant to paragraph 6
of this Agreement, either alone or together with all other Payments received or to be
received by the Participant from the Company or any of its Affiliates (collectively, the
“Aggregate Payments”), or any portion thereof, would be subject to the excise tax
imposed by Section 4999 of the Code (or any successor thereto), the following provisions
shall apply:

	 	a)	 	If the net amount that would be retained by the Participant after all taxes on
the Aggregate Payments are paid would be greater than the net amount that would be
retained by the Participant after all taxes are paid if the Aggregate Payments were
limited to the largest amount that would result in no portion of the Aggregate Payments
being subject to such excise tax, the Participant shall be entitled to receive the
Aggregate Payments.

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	 	b)	 	If, however, the net amount that would be retained by the Participant after all
taxes were paid would be greater if the Aggregate Payments were limited to the largest
amount that would result in no portion of the Aggregate Payments being subject to such
excise tax, the Aggregate Payments to which the Participant is entitled shall be
reduced to such largest amount.

	         	The term “Payment” shall mean any transfer of property within the meaning of Section
280G of the Code.
	 
	 	The determination of whether any reduction of Aggregate Payments is required and whether to
waive the right to any Payments due under this Agreement or any portion thereof shall be
made by the Participant, and such determinations shall be conclusive and binding on the
Company and its Affiliates. To the extent that the Participant elects to waive the right to
any Payments due under this Agreement, such Payments and the RSUs and Retained Distributions
related thereto shall be forfeited.
	 
	 	The Company shall promptly pay, upon demand by the Participant but no later than the end of
the year following the year in which incurred, all legal fees, court costs, fees of experts
and other costs and expenses which the Participant incurred in any actual, threatened or
contemplated contest of the Participant’s interpretation of, or determination under, the
provisions of this paragraph 7.

	8.	 	Withholding Taxes. The Participant agrees that,

	 	a)	 	Obligation to Pay Withholding Taxes. Upon the payment of any Dividend
Equivalents and the vesting of any portion of the Award of RSUs and the Retained
Distributions relating thereto, the Participant will be required to pay to the Company
any applicable Federal, state, local or foreign withholding tax due as a result of such
payment or vesting. The Company’s obligation to deliver the Shares subject to the RSUs
or to pay any Dividend Equivalents or Retained Distributions shall be subject to such
payment. The Company and its Affiliates shall, to the extent permitted by law, have
the right to deduct from the Dividend Equivalent, Shares issued in connection with the
vesting or Retained Distribution, as applicable, or any payment of any kind otherwise
due to the Participant any Federal, state, local or foreign withholding taxes due with
respect to such vesting or payment.
	 
	 	b)	 	Payment of Taxes with Stock. Subject to the Committee’s right to
disapprove any such election and require the Participant to pay the required
withholding tax in cash, the Participant shall have the right to elect to pay the
required withholding tax associated with a vesting with Shares to be received upon
vesting. Unless the Company shall permit another valuation method to be elected by the
Participant, Shares used to pay any required withholding taxes shall be valued at the
closing price of a Share on the New York Stock Exchange on the date the withholding tax
becomes due (hereinafter called the “Tax Date”).
Notwithstanding anything herein to the contrary, if a Participant who is required 

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	 	 	 	to pay the required
withholding tax in cash fails to do so within the time period
established by the Company, then the Participant shall be deemed to have elected to
pay such withholding taxes with Shares to be received upon vesting. Elections must
be made in conformity with conditions established by the Committee from time to
time.
	 
	 	c)	 	Conditions to Payment of Taxes with Stock. Any election to pay withholding
taxes with Shares must be made on or prior to the Tax Date and will be irrevocable
once made.

	9.	 	Changes in Capitalization and Government and Other
Regulations. The Award shall be subject to all of the terms and provisions as provided in this Agreement and in the
Plan, which are incorporated by reference herein and made a part hereof, including, without
limitation, the provisions of Section 10 of the Plan (generally relating to adjustments to
the number of Shares subject to the Award, upon certain changes in capitalization and
certain reorganizations and other transactions).
	 
	10.	 	Forfeiture. A breach of any of the foregoing restrictions or a breach of any of the
other restrictions, terms and conditions of the Plan or this Agreement, with respect to any of
the RSUs or any Dividend Equivalents and Retained Distributions relating thereto, except as
waived by the Board or the Committee, will cause a forfeiture of such RSUs and any Dividend
Equivalents or Retained Distributions relating thereto.
	 
	11.	 	Right of Company to Terminate Employment. Nothing contained in the Plan or this
Agreement shall confer on any Participant any right to continue in the employ of the Company,
any of its Affiliates or any Time Warner Affiliate, and the Company and any such Affiliate
shall have the right to terminate the Employment of the Participant at any such time, with or
without cause, notwithstanding the fact that some or all of the RSUs and related Retained
Distributions covered by this Agreement may be forfeited as a result of such termination. The
granting of the RSUs under this Agreement shall not confer on the Participant any right to any
future Awards under the Plan.
	 
	12.	 	Notices. Any notice which either party hereto may be required or permitted to give
the other shall be in writing and may be delivered personally or by mail, postage prepaid,
addressed to Time Warner Cable Inc., at 7910 Crescent Executive Drive, Charlotte, NC 28217,
attention Manager, Stock Programs, and to the Participant at his or her address, as it is
shown on the records of the Company or its Affiliate, or in either case to such other address
as the Company or the Participant, as the case may be, by notice to the other may designate in
writing from time to time.
	 
	13.	 	Interpretation and Amendments. The Board and the Committee (to the extent delegated
by the Board) have plenary authority to interpret this Agreement and the Plan, to prescribe,
amend and rescind rules relating thereto and to make all other determinations in connection
with the administration of the Plan. The Board or the Committee may from time to time modify
or amend this Agreement in accordance with

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	 	 	the provisions of the Plan, provided that no such amendment shall adversely affect the
rights of the Participant under this Agreement without his or her consent.
	 
	14.	 	Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Company and its successors and assigns, and shall be binding upon and inure to
the benefit of the Participant and his or her legatees, distributees and personal
representatives.
	 
	15.	 	Copy of the Plan. The Participant agrees and acknowledges that he or she has
received and read a copy of the Plan.
	 
	16.	 	Governing Law. The Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to any choice of law rules thereof
which might apply the laws of any other jurisdiction.
	 
	17.	 	Waiver of Jury Trial. To the extent not prohibited by applicable law which cannot
be waived, each party hereto hereby waives, and covenants that it will not assert (whether as
plaintiff, defendant or otherwise), any right to trial by jury in any forum in respect of any
suit, action, or other proceeding arising out of or based upon this Agreement.
	 
	18.	 	Submission to Jurisdiction; Service of Process. Each of the parties hereto hereby
irrevocably submits to the jurisdiction of the state courts of the State of New York and the
jurisdiction of the United States District Court for the Southern District of New York for the
purposes of any suit, action or other proceeding arising out of or based upon this Agreement.
Each of the parties hereto to the extent permitted by applicable law hereby waives, and agrees
not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or
proceeding brought in such courts, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune from attachment
or execution, that such suit, action or proceeding in the above-referenced courts is brought
in an inconvenient forum, that the venue of such suit, action or proceedings, is improper or
that this Agreement may not be enforced in or by such court. Each of the parties hereto
hereby consents to service of process by mail at its address to which notices are to be given
pursuant to paragraph 12 hereof.
	 
	19.	 	Personal Data. The Company, the Participant’s local employer and the local
employer’s parent company or companies may hold, collect, use, process and transfer, in
electronic or other form, certain personal information about the Participant for the exclusive
purpose of implementing, administering and managing the Participant’s participation in the
Plan. Participant understands that the following personal information is required for the
above named purposes: his/her name, home address and telephone number, office address
(including department and employing entity) and telephone number, e-mail address, date of
birth, citizenship, country of residence at the time of grant, work location country, system
employee ID, employee local ID, employment status (including international status code),
supervisor (if applicable), job code, title, salary, bonus target and bonuses paid (if
applicable), termination date and reason, taxpayer’s identification number, tax equalization
code, US Green Card holder status, contract type

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	 	 	(single/dual/multi), any shares of stock or directorships held in the Company, details of
all grants of RSUs (including number of grants, grant dates, vesting type, vesting dates,
and any other information regarding RSUs that have been granted, canceled, vested, or
forfeited) with respect to the Participant, estimated tax withholding rate, brokerage
account number (if applicable), and brokerage fees (the “Data”). Participant
understands that Data may be collected from the Participant directly or, on Company’s
request, from Participant’s local employer. Participant understands that Data may be
transferred to third parties assisting the Company in the implementation, administration and
management of the Plan, including the brokers approved by the Company, the broker selected
by the Participant from among such Company-approved brokers (if applicable), tax consultants
and the Company’s software providers (the “Data Recipients”). Participant
understands that some of these Data Recipients may be located outside the Participant’s
country of residence, and that the Data Recipient’s country may have different data privacy
laws and protections than the Participant’s country of residence. Participant understands
that the Data Recipients will receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing the
Participant’s participation in the Plan, including any requisite transfer of such Data as
may be required for the administration of the Plan and/or the subsequent holding of Shares
on the Participant’s behalf by a broker or other third party with whom the Participant may
elect to deposit any Shares acquired pursuant to the Plan. Participant understands that Data
will be held only as long as necessary to implement, administer and manage the Participant’s
participation in the Plan. Participant understands that Data may also be made available to
public authorities as required by law, e.g., to the U.S. government. Participant understands
that the Participant may, at any time, review Data and may provide updated Data or
corrections to the Data by written notice to the Company. Except to the extent the
collection, use, processing or transfer of Data is required by law, Participant may object
to the collection, use, processing or transfer of Data by contacting the Company in writing.
Participant understands that such objection may affect his/her ability to participate in the
Plan. Participant understands that he/she may contact the Company’s Stock Plan
Administration to obtain more information on the consequences of such objection.
	 
	20.	 	Compliance With Code Section 409A. The Agreement is intended to comply with the
requirements of Code section 409A to avoid taxation under Code section 409A(a)(1) and shall,
at all times be interpreted, operated and administered in a manner consistent with this
intent. References herein to “termination of employment” and similar terms used in this
Agreement shall be deemed to refer to “separation from service” within the meaning of Code
section 409A to the extent necessary to comply with Code section 409A, as applied using a
definition of “service recipient” with respect to Time Warner Affiliates that includes all
entities that would be treated as a single employer with the Company under Code sections
414(b) and 414(c) applying a 20 percent ownership level, rather than an 80 percent ownership
level. Notwithstanding any provision of the Agreement to the contrary, if at the time of a
Participant’s separation from service, the Participant is a “specified employee” as defined in
Code section 409A and any Shares or amounts otherwise payable under this Agreement as a result
of such separation from service are subject to Code section 409A, then no transfer or payment
of such Shares or amounts

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	 	 	shall be made until the date that is six months following the Participant’s separation from
service (or the earliest date as is permitted under Section 409A of the Code), and the
Company will transfer or pay any Shares or amounts that are delayed under the foregoing
within 90 days of such date. Notwithstanding the forgoing or any other term or provision of
this Agreement or the Plan, neither the Company nor any Affiliate or Time Warner Affiliate
nor any of its or their officers, directors, employees, agents or other service providers
shall have any liability to any person for any taxes, penalties or interest due on any
amounts paid or payable hereunder, including any taxes, penalties or interest imposed under
Code section 409A.

11EX-10.41 FORM OF RESTRICTED STOCK UNITS AGREEMENT

 

Exhibit 10.41

Time Warner Cable Inc.

Restricted Stock Units Agreement

For Non-Employee Directors

General Terms and Conditions

     WHEREAS, the Company has adopted the Plan (as defined below), the terms of which are
hereby incorporated by reference and made a part of this Agreement; and

     WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its stockholders to grant the restricted stock units (the “RSUs”) provided for herein
to the Participant pursuant to the Plan and the terms set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

	1.	 	Definitions. Whenever the following terms are used in this Agreement, they shall
have the meanings set forth below. Capitalized terms not otherwise defined herein shall have
the same meanings as in the Plan.

	 	a)	 	“Cause” means (i) the Participant’s continued failure substantially to
perform such Participant’s duties (other than as a result of total or partial
incapacity due to physical or mental illness) for a period of ten (10) days following
written notice by the Company to the Participant of such failure, (ii) dishonesty in
the performance of the Participant’s duties, (iii) the Participant’s conviction of, or
plea of nolo contendere to, a crime constituting (A) a felony under the laws of the
United States or any state thereof or (B) a misdemeanor involving moral turpitude, in
either case which is injurious to the financial condition or business reputation of the
Company or any of its Affiliates, (iv) the Participant’s willful malfeasance or willful
misconduct in connection with the Participant’s duties or any act or omission which is
injurious to the financial condition or business reputation of the Company or any of
its Affiliates, or (v) the Participant’s breach of any non-competition,
non-solicitation or confidentiality provisions to which the Participant is subject.
The determination of the Committee as to the existence of “Cause” will be conclusive on
the Participant and the Company.
	 
	 	b)	 	“Disability” of the Participant shall have the meaning ascribed to such
term in the Company’s long-term disability plan or policy (whether or not the
Participant is a participant in such plan or policy), as in effect from time to time,
to the extent that such definition also constitutes such Participant being considered
“disabled” under Section 409A(a)(2)(C) of the Code.

 

 

	 	c)	 	“Notice” means the Notice of Grant of Restricted Stock Units, which has
been provided to the Participant separately and which accompanies and forms a part of
this Agreement.
	 
	 	d)	 	“Participant” means a non-employee member of the Board to whom RSUs as
set forth in the Notice have been awarded pursuant to the Plan and shall have the same
meaning as may be assigned to the terms “Holder” or “Participant” in the Plan.
	 
	 	e)	 	“Plan” means the equity plan, as such plan may be amended, supplemented
or modified from time to time, maintained by the Company that is specified in the
Notice.
	 
	 	f)	 	“Shares” means shares of Class A Common Stock, par value $.01 per
share, of the Company.

	2.	 	Grant of Restricted Stock Units. The Company hereby grants to the Participant (the
“Award”), on the terms and conditions hereinafter set forth, the number of RSUs set
forth on the Notice. Each RSU represents the unfunded, unsecured right of the Participant to
receive one Share on the date(s) specified herein or in the Notice. RSUs do not constitute
issued and outstanding Shares for any corporate purposes and do not confer on the Participant
any right to vote on matters that are submitted to a vote of holders of Shares.

	3.	 	Dividend Equivalents and Retained Distributions. If on any date while RSUs are
outstanding hereunder the Company shall pay any regular cash dividend on the Shares, the
Participant shall be paid, for each RSU held by the Participant on the record date, an amount
of cash equal to the dividend paid on a Share (the “Dividend Equivalents”) at the time
that such dividends are paid to holders of Shares. If on any date while RSUs are outstanding
hereunder the Company shall pay any dividend other than a regular cash dividend or make any
other distribution on the Shares, the Participant shall be credited with a bookkeeping entry
equivalent to such dividend or distribution for each RSU held by the Participant on the record
date for such dividend or distribution, but the Company shall retain custody of all such
dividends and distributions (the “Retained Distributions”); provided,
however, that if the Retained Distribution relates to a dividend paid in Shares, the
Participant shall receive an additional amount of RSUs equal to the product of (i) the
aggregate number of RSUs held by the Participant pursuant to this Agreement through the
related dividend record date, multiplied by (ii) the number of Shares (including any fraction
thereof) payable as a dividend on a Share. Retained Distributions will not bear interest and
will be subject to the same restrictions and payment timing as the RSUs to which they relate.
	 
	4.	 	Delivery of Securities.

	 	a)	 	Subject to the terms and provisions of the Plan and this Agreement, except as
provided below, the Company shall issue or transfer to the Participant, on the first
day following the expiration of the six-month period following the date on which

2

 

	 	 	 	the Participant ceases to be a non-employee member of the Board, the number of
Shares as set forth on the Notice and the Retained Distributions, if any, covered by
that portion of the Award. Except as otherwise provided in paragraphs 6 and 7, the
issuance or transfer of such Shares and any Retained Distributions relating thereto
shall occur only if the Participant’s continued service from the Date of Grant as a
non-employee member of the Board has not been terminated for Cause. If the
Participant’s continued service from the Date of Grant as a non-employee member of
the Board is terminated for Cause, then all outstanding RSUs shall be completely
forfeited.
	 
	 	b)	 	RSUs Extinguished. Upon the issuance or transfer of Shares in
accordance with this Agreement, the RSUs shall be extinguished and such RSUs will not
be considered to be held by the Participant for any purpose.
	 
	 	c)	 	Final Issuance. Upon the final issuance or transfer of Shares and
Retained Distributions, if any, to the Participant pursuant to this Agreement, in lieu
of a fractional Share, the Participant shall receive a cash payment equal to the Fair
Market Value of such fractional Share.

	5.	 	Termination of Service Due to Death or Disability. If the Participant’s service as a
non-employee member of the Board terminates as a result of his or her death or Disability,
then to the extent the RSUs were not extinguished prior to such termination of service, the
Shares subject to the RSUs shall be issued or transferred to the Participant as soon as
practicable following such termination of service.

	6.	 	Acceleration of Distribution Date. Subject to paragraph 7 and the terms of any
agreement entered into by the Participant and the Company that provides for treatment of RSUs
that is more favorable to the Participant than the terms of this paragraph 6, in the event of
a Change in Control that also constitutes a change in ownership or effective control of the
Company, or in the ownership of a substantial portion of the assets of the Company, within the
meaning of Section 409A(a)(2)(A)(v) of the Code (a “409A Change in Control Event”), to the
extent the Award has not been previously canceled or forfeited, Shares subject to the RSUs
shall be issued or transferred to the Participant, as soon as practicable following such
Change in Control, along with the Retained Distributions related thereto. To the extent that
a Change in Control does not constitute a 409A Change in Control Event, the issuance of Shares
and Retained Distributions shall be made at the times otherwise provided hereunder as if no
Change in Control had occurred.

	7.	 	Limitation on Acceleration. Notwithstanding any provision to the contrary in the
Plan or this Agreement, if the Payment (as hereinafter defined) due to the Participant
hereunder as a result of the acceleration of issuance or transfer of the Shares subject to the
RSUs pursuant to paragraph 6 of this Agreement, either alone or together with all other
Payments received or to be received by the Participant from the Company or any of its
Affiliates (collectively, the “Aggregate Payments”), or any portion thereof, would be
subject to the excise tax imposed by Section 4999 of the Code (or any successor thereto), the
following provisions shall apply:

3

 

	 	a)	 	If the net amount that would be retained by the Participant after all taxes on
the Aggregate Payments are paid would be greater than the net amount that would be
retained by the Participant after all taxes are paid if the Aggregate Payments were
limited to the largest amount that would result in no portion of the Aggregate Payments
being subject to such excise tax, the Participant shall be entitled to receive the
Aggregate Payments.
	 
	 	b)	 	If, however, the net amount that would be retained by the Participant after all
taxes were paid would be greater if the Aggregate Payments were limited to the largest
amount that would result in no portion of the Aggregate Payments being subject to such
excise tax, the Aggregate Payments to which the Participant is entitled shall be
reduced to such largest amount.

	 	 	The term “Payment” shall mean any transfer of property within the meaning of Section
280G of the Code.
	 
	 	 	The determination of whether any reduction of Aggregate Payments is required and whether to
waive the right to any Payments due under this Agreement or any portion thereof shall be
made by the Participant, and such determinations shall be conclusive and binding on the
Company and its Affiliates. To the extent that the Participant elects to waive the right to
any Payments due under this Agreement, such Payments and the RSUs and Retained Distributions
related thereto shall be forfeited.
	 
	 	 	The Company shall promptly pay, upon demand by the Participant but no later than the end of
the year following the year in which incurred, all legal fees, court costs, fees of experts
and other costs and expenses which the Participant incurred in any actual, threatened or
contemplated contest of the Participant’s interpretation of, or determination under, the
provisions of this paragraph 7.
	 
	8.	 	Taxes. The Participant shall be solely responsible for payment of any applicable
federal, state, local or self-employment and other related taxes in connection with the
issuance or transfer of Shares subject to the RSUs, or Retained Distributions or the payment
of any Dividend Equivalents.
	 
	9.	 	Changes in Capitalization and Government and Other Regulations. The Award shall be
subject to all of the terms and provisions as provided in this Agreement and in the Plan,
which are incorporated by reference herein and made a part hereof, including, without
limitation, the provisions of Section 10 of the Plan (generally relating to adjustments to the
number of Shares subject to the Award, upon certain changes in capitalization and certain
reorganizations and other transactions).
	 
	10.	 	Forfeiture. A breach of any of the foregoing restrictions or a breach of any of the
other restrictions, terms and conditions of the Plan or this Agreement, with respect to any of
the RSUs or any Dividend Equivalents and Retained Distributions relating thereto, except as

4

 

	 	 	waived by the Board or the Committee, will cause a forfeiture of such RSUs and any Dividend
Equivalents or Retained Distributions relating thereto.
	 
	11.	 	Right of Company to Terminate Employment. Nothing contained in the Plan or this
Agreement shall confer on any Participant any right to continue in the employ (or as a
non-employee member of the Board) of the Company or any of its Affiliates, and the Company and
any such Affiliate shall have the right to terminate the Employment of the Participant at any
such time, with or without cause, notwithstanding the fact that some or all of the RSUs and
related Retained Distributions covered by this Agreement may be forfeited as a result of such
termination. The granting of the RSUs under this Agreement shall not confer on the Participant
any right to any future Awards under the Plan.
	 
	12.	 	Notices. Any notice which either party hereto may be required or permitted to give
the other shall be in writing and may be delivered personally or by mail, postage prepaid,
addressed to Time Warner Cable Inc., at 7910 Crescent Executive Drive, Charlotte, NC 28217,
attention Manager, Stock Programs, and to the Participant at his or her address, as it is
shown on the records of the Company or its Affiliate, or in either case to such other address
as the Company or the Participant, as the case may be, by notice to the other may designate in
writing from time to time.
	 
	13.	 	Interpretation and Amendments. The Board and the Committee (to the extent delegated
by the Board) have plenary authority to interpret this Agreement and the Plan, to prescribe,
amend and rescind rules relating thereto and to make all other determinations in connection
with the administration of the Plan. The Board or the Committee may from time to time modify
or amend this Agreement in accordance with the provisions of the Plan, provided that no such
amendment shall adversely affect the rights of the Participant under this Agreement without
his or her consent.
	 
	14.	 	Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Company and its successors and assigns, and shall be binding upon and inure to
the benefit of the Participant and his or her legatees, distributees and personal
representatives.
	 
	15.	 	Copy of the Plan. The Participant agrees and acknowledges that he or she has
received and read a copy of the Plan.
	 
	16.	 	Governing Law. The Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York without regard to any choice of law rules thereof which
might apply the laws of any other jurisdiction.
	 
	17.	 	Waiver of Jury Trial. To the extent not prohibited by applicable law which cannot be
waived, each party hereto hereby waives, and covenants that it will not assert (whether as
plaintiff, defendant or otherwise), any right to trial by jury in any forum in respect of any
suit, action, or other proceeding arising out of or based upon this Agreement.

5

 

	18.	 	Submission to Jurisdiction; Service of Process. Each of the parties hereto hereby
irrevocably submits to the jurisdiction of the state courts of the State of New York and the
jurisdiction of the United States District Court for the Southern District of New York for the
purposes of any suit, action or other proceeding arising out of or based upon this Agreement.
Each of the parties hereto to the extent permitted by applicable law hereby waives, and agrees
not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or
proceeding brought in such courts, any claim that it is not subject personally to the
jurisdiction of the above-named courts, that its property is exempt or immune from attachment
or execution, that such suit, action or proceeding in the above-referenced courts is brought
in an inconvenient forum, that the venue of such suit, action or proceedings, is improper or
that this Agreement may not be enforced in or by such court. Each of the parties hereto
hereby consents to service of process by mail at its address to which notices are to be given
pursuant to paragraph 12 hereof.
	 
	19.	 	Personal Data. The Company may hold, collect, use, process and transfer, in
electronic or other form, certain personal information about the Participant for the exclusive
purpose of implementing, administering and managing the Participant’s participation in the
Plan. Participant understands that the following personal information is required for the
above named purposes: his/her name, home address and telephone number, office address
(including department and employing entity) and telephone number, e-mail address, date of
birth, citizenship, country of residence at the time of grant, work location country, system
employee ID, employee local ID, employment status (including international status code),
supervisor (if applicable), job code, title, salary, bonus target and bonuses paid (if
applicable), termination date and reason, taxpayer’s identification number, tax equalization
code, US Green Card holder status, contract type (single/dual/multi), any shares of stock or
directorships held in the Company, details of all grants of RSUs (including number of grants,
grant dates, vesting type, vesting dates, and any other information regarding RSUs that have
been granted, canceled, vested, or forfeited) with respect to the Participant, estimated tax
withholding rate, brokerage account number (if applicable), and brokerage fees (the
“Data”). Participant understands that Data may be collected from the Participant
directly or from the Company. Participant understands that Data may be transferred to third
parties assisting the Company in the implementation, administration and management of the
Plan, including the brokers approved by the Company, the broker selected by the Participant
from among such Company-approved brokers (if applicable), tax consultants and the Company’s
software providers (the “Data Recipients”). Participant understands that some of
these Data Recipients may be located outside the Participant’s country of residence, and that
the Data Recipient’s country may have different data privacy laws and protections than the
Participant’s country of residence. Participant understands that the Data Recipients will
receive, possess, use, retain and transfer the Data, in electronic or other form, for the
purposes of implementing, administering and managing the Participant’s participation in the
Plan, including any requisite transfer of such Data as may be required for the administration
of the Plan and/or the subsequent holding of Shares on the Participant’s behalf by a broker or
other third party with whom the Participant may elect to deposit any Shares acquired pursuant
to the Plan. Participant understands that Data will be held only as long as necessary to
implement, administer and manage the Participant’s participation

6

 

	 	 	in the Plan. Participant understands that Data may also be made available to public
authorities as required by law, e.g., to the U.S. government. Participant understands that
the Participant may, at any time, review Data and may provide updated Data or corrections to
the Data by written notice to the Company. Except to the extent the collection, use,
processing or transfer of Data is required by law, Participant may object to the collection,
use, processing or transfer of Data by contacting the Company in writing. Participant
understands that such objection may affect his/her ability to participate in the Plan.
Participant understands that he/she may contact the Company’s Stock Plan Administration to
obtain more information on the consequences of such objection.
	 
	20.	 	Compliance With Code Section 409A. The Agreement is intended to comply with the
requirements of Code section 409A to avoid taxation under Code section 409A(a)(1) and shall at
all times be interpreted, operated and administered in a manner consistent with this intent.
References herein to ceasing to be a member of the Board and similar terms used in this
Agreement shall be deemed to refer to “separation from service” within the meaning of Code
section 409A to the extent necessary to comply with Code section 409A. Notwithstanding any
provision of the Agreement to the contrary, if at the time of a Participant’s separation from
service, the Participant is a “specified employee” as defined in Code section 409A and any
Shares or amounts otherwise payable under this Agreement as a result of such separation from
service are subject to Code section 409A, then no transfer or payment of such Shares or
amounts shall be made until the date that is six months following the Participant’s separation
from service (or the earliest date as is permitted under Section 409A of the Code), and the
Company will transfer or pay any Shares or amounts that are delayed under the foregoing within
90 days of such date. Notwithstanding the forgoing or any other term or provision of this
Agreement or the Plan, neither the Company nor any Affiliate nor any of its or their officers,
directors, employees, agents or other service providers shall have any liability to any person
for any taxes, penalties or interest due on any amounts paid or payable hereunder, including
any taxes, penalties or interest imposed under Code section 409A.

7

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