FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
Exhibit 10.31
FIRST AMENDMENT
TO EMPLOYMENT AGREEMENT
TO EMPLOYMENT AGREEMENT
First amendment (the “Amendment”) to the employment agreement (the “Employment Agreement”),
between Time Warner Entertainment Company, L.P., a subsidiary of Time Warner Cable Inc. and Xxxxxx
Xxxxxx. This Amendment is effective as of January 1, 2008.
The parties, intending to be legally bound, hereby agree that the Employment Agreement shall
be amended as follows:
1. Section 4.1 shall be amended by adding at the end thereof:
“Payments of Base Salary and Bonus required under this Section shall be made at the same time
as such payments would otherwise have been made to you pursuant to Sections 3.1 and 3.2 if you had
not been terminated.”
2. Section 4.2.2 shall be amended to read as follows:
“After the effective date of a termination without cause, you shall continue to be treated as
an employee of the Company for a period ending on the date (the “Severance Term Date”) which is the
later of (i) the Term Date and (ii) the date which is twenty-four months after the effective date
of such termination, and during such period you shall be entitled to receive, whether or not you
become disabled during such period but subject to Section 6, (a) Base Salary at an annual rate
equal to your Base Salary in effect immediately prior to the notice of termination, and (b) an
annual Bonus in respect of each calendar year or portion thereof (in which case a pro rata portion
of such Bonus will be payable) during such period equal to your Average Annual Bonus. Except as
provided in the following sentence, if you accept other full-time employment during such period or
notify the Company in writing of your intention to terminate your treatment as an employee during
such period, you shall cease to be treated as an employee of the Company, including for purposes of
your rights to receive certain post-termination benefits under Section 7.4, effective upon the
commencement of such other employment or the effective date of such termination as specified by you
in such notice, whichever is applicable, but you shall continue to receive the remaining payments
you would have received pursuant to this Section 4.2.2 at the times specified herein.
Notwithstanding the foregoing, if you accept employment with any not-for-profit entity, then you
shall be entitled to continue to be treated as an employee of the Company and receive the payments
as provided in the first sentence of this Section 4.2.2; and if you accept full-time employment
with any affiliate of the Company, then the payments provided for in this Section 4.2.2 shall
immediately cease and you shall not be entitled to any further payments. For purposes of this
Agreement, the term “affiliate” shall mean any entity which, directly or indirectly, controls, is
controlled by, or is under common control with, the Company.”
3. Section 4.4 shall be amended by adding at the end thereof:
“Such release must be returned no later than 60 days after your separation from service with
the Company. If you fail to execute and deliver such release, or if you revoke such release as
provided therein, then any severance payment you receive under the Company’s policies relating to
notice and severance shall be reduced by the aggregate amount of any severance you may have
received under this Agreement. The aggregate amount of any severance payments under such Company
policies shall be paid in the same amounts and under the same schedule as would have been
applicable to payments under Section 4.2.2 until such aggregate amount is paid to you.”
4. Section 5.1 is amended by adding at the end thereof:
“All payments pursuant to this Section 5.1 shall be made at the times specified in Section 4.5
and shall be subject to Section 11.16.”
5. Section 5.3 is amended by deleting the last sentence thereof and by replacing it with the
following:
“Except as otherwise provided in this Section 5, the term of employment shall continue during
the Disability Period, and you shall be entitled to all of the rights and benefits provided for in
this Agreement, except that Sections 4.2 and 4.3 shall not apply during the Disability Period.
Unless the Company has restored you to full-time service at full compensation prior to the end of
the Disability Period, the term of employment shall end and you shall cease to be treated as an
employee of the Company at the end of the Disability Period and shall not be entitled to notice and
severance or to receive or be paid for any accrued vacation time or unused sabbatical.”
6. Section 7.4 shall be amended by adding after the first sentence of the existing provision:
“Notwithstanding the foregoing, your continued participation in the Company’s benefit plans
shall be subject to the limitations of applicable law.”
7. Section 7.4 shall be further amended by replacing the phrase “remain on the payroll” with
“continue to be treated as an employee” and replacing the phrase “leave the payroll” with “cease to
be treated as an employee.”
8. Section 11.16 shall be added to the Agreement as follows:
“11.16 Compliance with Section 409A. This Agreement is intended to comply with
Section 409A of the Code and will be interpreted, administered and operated in a manner consistent
with that intent. Notwithstanding anything herein to the contrary, if at the time of your
separation from service with the Company you are a “specified employee” as defined in Section 409A
of the Code (and the regulations thereunder) and any payments or benefits otherwise payable
hereunder as a result of such separation from service are subject to Section 409A of the Code, then
the Company will defer the commencement of the payment of any such payments or benefits hereunder
(without any reduction in such payments or benefits ultimately
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paid or provided to you) until the date that is six months following your separation from service
with the Company (or the earliest date as is permitted under Section 409A of the Code), and the
Company will pay any such delayed amounts in a lump sum at such time. If any other payments of
money or other benefits due to you hereunder could cause the application of an accelerated or
additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if
deferral will make such payment or other benefits compliant under Section 409A of the Code, or
otherwise such payment or other benefits shall be restructured, to the extent possible, in a
manner, determined by the Company, that does not cause such an accelerated or additional tax. To
the extent any reimbursements or in-kind benefits due to you under this Agreement constitute
“deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits
shall be paid to you in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Each
payment made under this Agreement shall be designated as a “separate payment” within the meaning of
Section 409A of the Code. References to “termination of employment” and similar terms used in this
Agreement are intended to refer to “separation from service” within the meaning of Section 409A of
the Code to the extent necessary to comply with Section 409A of the Code. The Company shall
consult with you in good faith regarding the implementation of the provisions of this Section
11.16; provided that neither the Company nor any of its employees or representatives shall have any
liability to you with respect to thereto.”
Except as amended hereby, the Employment Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be duly executed
effective as of the date first above written.
| TIME WARNER ENTERTAINMENT COMPANY, L.P. |
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| By: | /s/ Xxxx Xxxxxxxx-Xxxxxxxxx | ||||
| XXXX XXXXXXXX-XXXXXXXXX | |||||
| EXECUTIVE VICE PRESIDENT, GENERAL COUNSEL & SECRETARY |
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| Date: | 1-8-08 | ||||
| Agreed and Accepted: XXXXXX XXXXXX |
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| /s/ Xxxxxx Xxxxxx | ||||
| Date: | 1/3/08 | |||
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