{"id":40262,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/performance-stock-units-agreement-time-warner.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"performance-stock-units-agreement-time-warner","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/performance-stock-units-agreement-time-warner.html","title":{"rendered":"Performance Stock Units Agreement &#8211; Time Warner"},"content":{"rendered":"<p>PSU Agreement <br \/>\nVersion 4 (PSU4) <br \/>\nFor Use from February  2010 <u><strong>Performance Stock Units<br \/>\nAgreement<\/strong><\/u> <strong>General Terms and Conditions<\/strong><br \/>\n                              WHEREAS, the Company has adopted the Plan (as defined below), the<br \/>\nterms of which are hereby incorporated by reference and made a part of this<br \/>\nAgreement; and                               WHEREAS, the Committee has determined that it<br \/>\nwould be in the best interests of the Company and its stockholders to grant the<br \/>\nperformance stock units (the &#8220;<u><strong>PSUs<\/strong><\/u>&#8220;) provided for herein<br \/>\nto the Participant pursuant to the Plan and the terms set forth herein.<br \/>\n                              NOW, THEREFORE, in consideration of the mutual covenants<br \/>\nhereinafter set forth, the parties agree as follows:<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>1.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Definitions<\/strong><\/u><\/p>\n<p>. Whenever the following terms are used in this Agreement, they shall have<br \/>\nthe meanings set forth below. Capitalized terms not otherwise defined herein<br \/>\nshall have the same meanings as in the Plan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Adjusted EPS<\/strong><\/u>&#8221; means the Adjusted Earnings Per Share<br \/>\nof a company for a designated period, generally a twelve-month period ending on<br \/>\na specified date, as reported by Bloomberg. As described on Bloomberg at<br \/>\nFebruary  6, 2009, this measure excludes the effects of one-time and<br \/>\nextraordinary gains\/losses, including: realized investment gains\/losses,<br \/>\nrestructuring charges, non-recurring charges\/gains, unusual charges\/gains,<br \/>\nreserve charges, large writedowns, spin-off\/sell-off expenses, merger expenses,<br \/>\nacquisition charges, sale of subsidiary expenses, forgiveness of debt, writedown<br \/>\nof goodwill, ESOP charges, and acquired research and development costs.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Adjusted EPS Percentile<\/strong><\/u>&#8221; means the percentile rank<br \/>\nof the Company&#8217;s growth in Adjusted EPS from the beginning through the end of a<br \/>\nspecified measurement period (generally the Performance Period) relative to the<br \/>\ngrowth in Adjusted EPS for the same period for each of the companies in the<br \/>\nS&amp;P 500 Index (the &#8220;<u><strong>Index<\/strong><\/u>&#8220;) at the beginning and<br \/>\nthroughout such measurement period; <u>provided, however<\/u>, that for purposes<br \/>\nof measuring the Adjusted EPS Percentile, the Index shall be deemed to include<br \/>\ncompanies that were removed from the S&amp;P 500 Index during the measurement<br \/>\nperiod but that continued during the entire measurement period to have their<br \/>\nshares listed on at least one of the NYSE, NASDAQ, American Stock Exchange,<br \/>\nBoston Stock Exchange, Chicago Stock Exchange, National Stock Exchange (formerly<br \/>\nCincinnati Stock Exchange), NYSE Arca (formerly known as the Pacific Stock<br \/>\nExchange) or Philadelphia Stock Exchange.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Cause<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means, &#8220;Cause&#8221; as defined in an employment agreement between the Company or<br \/>\nany of its Affiliates and the Participant or, if not defined therein or if there<br \/>\nis no such agreement, &#8220;Cause&#8221; means (i)  Participant&#8217;s continued failure<br \/>\nsubstantially to perform such Participant&#8217;s duties (other than as a result of<br \/>\ntotal or partial incapacity due to physical or mental illness) for a period of<br \/>\nten (10)  days following written notice by the Company or any of its Affiliates<br \/>\nto the Participant of such failure, (ii)  dishonesty in the performance of the<br \/>\nParticipant&#8217;s duties, (iii)  Participant&#8217;s conviction of, or plea of <em>nolo<br \/>\ncontendere <\/em>to, a crime constituting (A)  a felony under the laws of the<br \/>\nUnited States or any state thereof or (B)  a misdemeanor involving moral<br \/>\nturpitude, (iv)  Participant&#8217;s insubordination, willful malfeasance or willful<br \/>\nmisconduct in connection with Participant&#8217;s duties or any act or omission which<br \/>\nis injurious to the financial condition or business reputation of the Company or<br \/>\nany of its Affiliates, or (v)  Participant&#8217;s breach of any non-competition,<br \/>\nnon-solicitation or confidentiality provisions to which the Participant is<br \/>\nsubject. The determination of the Committee as to the existence of &#8220;Cause&#8221; will<br \/>\nbe conclusive on the Participant and the Company.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>d)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Disability<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means, &#8220;Disability&#8221; as defined in an employment agreement between the Company<br \/>\nor any of its Affiliates and the Participant or, if not defined therein or if<br \/>\nthere shall be no such agreement, &#8220;disability&#8221; of the Participant shall have the<br \/>\nmeaning ascribed to such term in the Company&#8217;s long-term disability plan or<br \/>\npolicy, as in effect from time to time.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>e)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Division Change in Control<\/strong><\/u>&#8221; means (i)  a transfer by<br \/>\nthe Company or any Affiliate of the Participant&#8217;s Employment to a corporation,<br \/>\ncompany or other entity whose financial results are not consolidated with those<br \/>\nof the Company or (ii)  a change in the ownership structure of the Affiliate with<br \/>\nwhich the Participant has Employment such that the Affiliate&#8217;s financial results<br \/>\nare no longer consolidated with those of the Company.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>f)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Good Reason<\/strong><\/u>&#8221; means &#8220;Good Reason&#8221; as defined in an<br \/>\nemployment agreement between the Company or any of its Affiliates and the<br \/>\nParticipant or, if not defined therein, &#8220;Good Reason&#8221; means the termination of<br \/>\nthe Participant&#8217;s Employment by the Participant because of a breach by the<br \/>\nCompany or any Affiliate of any employment agreement to which the Participant is<br \/>\na party; <u>provided<\/u>, that &#8220;Good Reason&#8221; will cease to exist for an event on<br \/>\nthe sixtieth (60<sup>th<\/sup>) day following the later of its occurrence or the<br \/>\nParticipant&#8217;s knowledge thereof, unless the Participant has given the Company<br \/>\nwritten notice of his or her termination of employment for Good Reason prior to<br \/>\nsuch date.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>g)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Notice of Grant of Performance Stock Units<\/strong><\/u>&#8221; means<br \/>\n(i)  the Notice of Grant of Performance Stock Units that accompanies this<br \/>\nAgreement, if this Agreement is delivered to the Participant in &#8220;hard copy,&#8221; and<br \/>\n(ii)  the screen of the website for the stock plan administration with the<br \/>\nheading &#8220;Vesting Schedule and Details,&#8221; which contains the details of the grant<br \/>\ngoverned by this Agreement, if this Agreement is delivered electronically to the<br \/>\nParticipant.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">2<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>h)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Participant<\/strong><\/u>&#8221; means an individual to whom PSUs have<br \/>\nbeen awarded pursuant to the Plan and shall have the same meaning as may be<br \/>\nassigned to the terms &#8220;Holder&#8221; or &#8220;Participant&#8221; in the Plan.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>i)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Performance Level<\/strong><\/u>&#8221; means the level of performance<br \/>\nachieved by the Company during a measurement period (generally, the Performance<br \/>\nPeriod) based on the TSR Percentile and the Adjusted EPS Percentile for such<br \/>\nperiod, which shall determine the percentage of Target PSUs that will vest, as<br \/>\nset forth in paragraph 4.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>j)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Performance Period<\/strong><\/u>&#8221; means the period commencing and<br \/>\nending on the dates set forth in the Notice of Grant of Performance Stock Units.\n<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>k)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Plan<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means the equity plan maintained by the Company that is specified in the<br \/>\nNotice of Grant of Performance Stock Units, which has been provided to the<br \/>\nParticipant separately and which accompanies and forms a part of this Agreement,<br \/>\nas such plan may be amended, supplemented or modified from time to time.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>l)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Retirement<\/strong><\/u>&#8221; means a termination of employment by the<br \/>\nParticipant (i) following the attainment of age 55 with ten (10)  or more years<br \/>\nof service as an employee or a director with the Company or any Affiliate or<br \/>\n(ii)  pursuant to a retirement plan or early retirement program of the Company or<br \/>\nany Affiliate.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>m)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Shares<\/strong><\/u>&#8221; means shares of Common Stock of the Company.\n<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>n)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Total Shareholder Return<\/strong><\/u>&#8221; or<br \/>\n&#8220;<u><strong>TSR<\/strong><\/u>&#8221; means a company&#8217;s total shareholder return,<br \/>\ncalculated based on stock price appreciation during a specified measurement<br \/>\nperiod plus the value of dividends paid on such stock during the measurement<br \/>\nperiod (which shall be deemed to have been reinvested in the underlying<br \/>\ncompany&#8217;s stock effective the &#8220;ex-dividend&#8221; date based on the closing price for<br \/>\nsuch company for purposes of measuring TSR).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>o)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>TSR Percentile<\/strong><\/u>&#8221; means the percentile rank of the TSR<br \/>\nfor the Shares during a specified measurement period (generally the Performance<br \/>\nPeriod) relative to the TSR for each of the companies in the Index at the<br \/>\nbeginning and throughout such measurement period; <u>provided, however<\/u>, that<br \/>\nfor purposes of measuring the TSR Percentile, (i)  the Index shall be deemed to<br \/>\ninclude companies that were removed from the S&amp;P 500 Index during the<br \/>\nmeasurement period but that continued during the entire measurement period to<br \/>\nhave their shares listed on at least one of the NYSE, NASDAQ, American Stock<br \/>\nExchange, Boston Stock Exchange, Chicago Stock Exchange, National Stock Exchange<br \/>\n(formerly Cincinnati Stock Exchange), NYSE Arca (formerly known as the Pacific<br \/>\nStock Exchange) or Philadelphia Stock Exchange; and (ii)  the beginning and<br \/>\nending TSR values shall be calculated based on the average of the closing prices<br \/>\nof the applicable company&#8217;s stock on the composite tape for the 30 trading days<br \/>\nprior to and including the beginning or ending date, as applicable, of the<br \/>\nmeasurement period.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">3<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>p)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Vesting Date<\/strong><\/u>&#8221; means the vesting date set forth in<br \/>\nthe Notice of Grant of Performance Stock Units.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>2.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Grant of Performance Stock Units<\/strong><\/u><\/p>\n<p>. The Company hereby grants to the Participant (the<br \/>\n&#8220;<u><strong>Award<\/strong><\/u>&#8220;), on the terms and conditions hereinafter set<br \/>\nforth, the target number of PSUs (the &#8220;<u><strong>Target PSUs<\/strong><\/u>&#8220;) set<br \/>\nforth in the Notice. Each PSU represents the unfunded, unsecured right of the<br \/>\nParticipant to receive a Share on the date(s) specified herein, subject to<br \/>\nachievement of the relevant performance criteria. The Target PSUs represent the<br \/>\nnumber of PSUs that will vest on the Vesting Date if the Company achieves the<br \/>\n&#8220;Target&#8221; Performance Level for the Performance Period, and the Participant<br \/>\nremains in Employment through the Vesting Date. PSUs do not constitute issued<br \/>\nand outstanding shares of Common Stock for any corporate purposes and do not<br \/>\nconfer on the Participant any right to vote on matters that are submitted to a<br \/>\nvote of holders of Shares.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>3.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Dividend Equivalents and Retained<br \/>\nDistributions<\/strong><\/u><strong>. <\/strong><\/p>\n<p>If on any date while PSUs are outstanding hereunder the Company shall pay any<br \/>\nregular cash dividend on the Shares, the Participant shall not be entitled to<br \/>\nreceive the amount of cash equal to the dividend paid on a Share as a dividend<br \/>\nequivalent payment (the &#8220;<u><strong>Dividend Equivalents<\/strong><\/u>&#8220;) at the<br \/>\ntime the regular cash dividend is paid to holders of Shares. If on any date<br \/>\nwhile PSUs are outstanding hereunder the Company shall pay any dividend<br \/>\n(including a regular cash dividend) or make any other distribution on the<br \/>\nShares, then, the Participant shall be credited with a bookkeeping entry<br \/>\nequivalent to such dividend or distribution for each Target PSU held by the<br \/>\nParticipant on the record date for such dividend or distribution, but the<br \/>\nCompany shall retain custody of all such dividends and distributions (the<br \/>\n&#8220;<u><strong>Retained Distributions<\/strong><\/u><strong>&#8220;) <\/strong>unless the<br \/>\nBoard has in its sole discretion (and in a manner consistent with Section  19 of<br \/>\nthe Plan) determined that an amount equivalent to such dividend other than a<br \/>\nregular cash dividend or distribution shall be paid currently to the<br \/>\nParticipant; <u>provided<\/u>, <u>however<\/u>, that if the Retained Distribution<br \/>\nrelates to a dividend paid in Shares, the Participant shall receive an<br \/>\nadditional amount of PSUs (i.e., by increasing the number of Target PSUs) equal<br \/>\nto the product of (I)  the aggregate number of Target PSUs held by the<br \/>\nParticipant pursuant to this Agreement through the related dividend record date,<br \/>\nmultiplied by (II)  the number of Shares (including any fraction thereof) payable<br \/>\nas a dividend on a Share. Retained Distributions will not bear interest and will<br \/>\nbe subject to the same restrictions as the PSUs to which they relate. Retained<br \/>\nDistributions will be paid only with respect to the number of Shares that vest<br \/>\npursuant to paragraphs 4, 5 or 6 and will be paid in cash at the same time that<br \/>\nShares are issued to the Participant pursuant to paragraphs 4, 5 or 6,<br \/>\napplicable. Notwithstanding anything else contained in this paragraph 3, no<br \/>\npayment of Retained Distributions shall occur before the first date on which a<br \/>\npayment could be made without subjecting the Participant to tax under the<br \/>\nprovisions of Section  409A of the Internal Revenue Code of 1986, as amended (the<br \/>\n&#8220;<u><strong>Code<\/strong><\/u>&#8220;).<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>4.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Vesting and Delivery of Vested Securities<\/strong><\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>Subject to the terms and provisions of the Plan and this Agreement, on the<br \/>\nVesting Date, the Company shall issue or transfer to the Participant the number<br \/>\nof Shares corresponding to the Performance Level achieved during the Performance\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">4<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>Period and the Retained Distributions, if any, relating to such Shares.<br \/>\nExcept as otherwise provided in paragraphs 5, 6 and 7, the vesting of such PSUs<br \/>\nand any Retained Distributions relating thereto shall occur only if the<br \/>\nParticipant has continued in Employment of the Company or any of its Affiliates<br \/>\non the Vesting Date and has continuously been so employed since the Date of<br \/>\nGrant (as defined in the Notice of Grant of Performance Stock Units). As of the<br \/>\nVesting Date, a percentage (between 0% and 200%) of the target number of PSUs<br \/>\nshall vest as follows:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"6%\"><\/td>\n<td width=\"3%\">\n<p>(i)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the Company&#8217;s TSR Percentile for the Performance Period is ranked at or<br \/>\nabove the 50<sup>th<\/sup> percentile, then the percentage of the target number<br \/>\nof PSUs that shall vest is based on the Company&#8217;s TSR Percentile during the<br \/>\nPerformance Period, as indicated in the table below;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><\/td>\n<td width=\"3%\">\n<p>(ii)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the Company&#8217;s TSR Percentile for the Performance Period is ranked below<br \/>\nthe 50<sup>th<\/sup> percentile and the Adjusted EPS Percentile for the<br \/>\nPerformance Period is ranked at or above the 50<sup>th<\/sup> percentile, then<br \/>\nthe percentage of the target number of PSUs that shall vest is the average of<br \/>\n(x)  the percentage of the target number of PSUs that would vest based on the<br \/>\nCompany&#8217;s TSR Percentile during the Performance Period, as indicated in the<br \/>\ntable below, and (y)  100%; and<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"6%\"><\/td>\n<td width=\"3%\">\n<p>(iii)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the Company&#8217;s TSR Percentile for the Performance Period is ranked below<br \/>\nthe 50<sup>th<\/sup> percentile and the Adjusted EPS Percentile for the<br \/>\nPerformance Period is ranked below the 50<sup>th<\/sup> percentile, then the<br \/>\npercentage of the target number of PSUs that shall vest is based on the<br \/>\nCompany&#8217;s TSR Percentile during the Performance Period, as indicated in the<br \/>\ntable below.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"5%\"><\/td>\n<td width=\"63%\"><\/td>\n<td width=\"5%\"><\/td>\n<td width=\"1%\"><\/td>\n<td width=\"1%\"><\/td>\n<td width=\"1%\"><\/td>\n<\/tr>\n<tr>\n<td><strong>Performance<\/strong><\/td>\n<td><\/td>\n<td><strong>Company TSR Percentile During<\/strong><\/td>\n<td><\/td>\n<td colspan=\"3\"><strong>Percentage of Target<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Level<\/strong><\/td>\n<td><\/td>\n<td><strong>Performance Period<\/strong><\/td>\n<td><\/td>\n<td colspan=\"3\"><strong>PSUs That Vest<\/strong><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Maximum<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\">\n<p>The Company is ranked at the 100<sup>th<\/sup> percentile<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>200<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Target<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\">\n<p>The Company is ranked at the 50<sup>th<\/sup> percentile<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>100<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Threshold<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\">\n<p>The Company is ranked at the 25<sup>th<\/sup> percentile<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>50<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Below Threshold<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\">\n<p>The Company is ranked below the 25<sup>th<\/sup> percentile<\/p>\n<\/td>\n<td><\/td>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<p>0<\/p>\n<\/td>\n<td valign=\"top\">\n<p>%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The percentage of Target PSUs that vest if the Company&#8217;s TSR Percentile<br \/>\nduring the Performance Period is between the &#8220;Threshold&#8221; and &#8220;Target&#8221; or between<br \/>\nthe &#8220;Target&#8221; and &#8220;Maximum&#8221; Performance Levels shall be determined by linear<br \/>\ninterpolation.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">5<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>PSUs Extinguished<\/u><\/p>\n<p>. Upon each issuance or transfer of Shares in accordance with this Agreement,<br \/>\na number of PSUs equal to the number of Shares issued or transferred to the<br \/>\nParticipant shall be extinguished and such number of PSUs will not be considered<br \/>\nto be held by the Participant for any purpose.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Final Issuance<\/u><\/p>\n<p>. Upon the final issuance or transfer of Shares and Retained Distributions,<br \/>\nif any, to the Participant pursuant to this Agreement, in lieu of a fractional<br \/>\nShare, the Participant shall receive a cash payment equal to the Fair Market<br \/>\nValue of such fractional Share.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>d)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Section  409A<\/u><\/p>\n<p>. Notwithstanding anything else contained in this Agreement, no Shares or<br \/>\nRetained Distributions shall be issued or transferred to a Participant before<br \/>\nthe first date on which a payment could be made without subjecting the<br \/>\nParticipant to tax under the provisions of Section  409A of the Code.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>5.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Termination of Employment<\/strong><\/u><\/p>\n<p>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the Participant&#8217;s Employment with the Company and its Affiliates is<br \/>\nterminated by the Participant for any reason other than those described in<br \/>\nclauses (b) and (c)  below prior to the Vesting Date, then the PSUs covered by<br \/>\nthe Award and all Retained Distributions relating thereto shall be completely<br \/>\nforfeited on the date of any such termination, unless otherwise provided in an<br \/>\nemployment agreement between the Participant and the Company or an Affiliate.\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the Participant&#8217;s Employment terminates as a result of his or her death<br \/>\nprior to the end of the Performance Period, then the Company shall immediately<br \/>\nissue or transfer to the Participant&#8217;s estate a pro rata portion of the number<br \/>\nof Shares underlying the PSUs that would have vested (if any) if the Performance<br \/>\nPeriod ended on the date of the Participant&#8217;s death plus all Retained<br \/>\nDistributions relating thereto; <u>provided, however<\/u>, that in the event such<br \/>\ntermination of Employment due to death occurs prior to the first anniversary of<br \/>\nthe Date of Grant, then the pro rata number of PSUs that vest shall be based on<br \/>\nthe number of Target PSUs, without regard to the actual Performance Level<br \/>\nachieved through such date. The pro rata amount of PSUs that shall vest upon the<br \/>\nParticipant&#8217;s death shall be determined by multiplying<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"3%\">\n<p>(x)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>the full number of PSUs covered by the Award that would vest based on the<br \/>\nactual Performance Level achieved through the date of death (or, in the case of<br \/>\ndeath prior to the first anniversary of the Date of Grant, based on the number<br \/>\nof Target PSUs) by;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"3%\">\n<p>(y)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>a fraction, the numerator of which shall be the number of days from the Date<br \/>\nof Grant through the date of the Participant&#8217;s death, and the denominator of<br \/>\nwhich shall be the number of days from the Date of Grant through the last day of<br \/>\nthe Performance Period.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">6<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"10%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the product of (x)  and (y)  results in a fractional share, such fractional<br \/>\nshare shall be rounded to the next higher whole share.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The PSUs and any Retained Distributions related thereto that do not vest as<br \/>\ndescribed above shall be completely forfeited.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>(c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the Participant&#8217;s Employment is terminated by the Company and its<br \/>\nAffiliates for any reason other than for Cause or if the Participant terminates<br \/>\nEmployment due to Good Reason, Retirement or Disability, then the Participant<br \/>\nshall remain entitled to receive a pro rata portion of the PSUs that would<br \/>\notherwise vest (if any) on the Vesting Date based on the actual Performance<br \/>\nLevel achieved for the full Performance Period, and any Retained Distributions<br \/>\nrelating thereto, and such pro rata portion of the PSUs shall become vested, and<br \/>\nShares subject to such PSUs and any Retained Distributions relating thereto<br \/>\nshall be issued or transferred to the Participant on the Vesting Date as<br \/>\nfollows:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"3%\">\n<p>(x)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>the number of PSUs covered by the Award that would vest on the Vesting Date<br \/>\n(based on the actual Performance Level achieved for the full Performance Period)<br \/>\nmultiplied by;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"14%\"><\/td>\n<td width=\"3%\">\n<p>(y)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>a fraction, the numerator of which shall be the number of days from the Date<br \/>\nof Grant through the date of such termination, and the denominator of which<br \/>\nshall be the number of days from the Date of Grant through the last day of the<br \/>\nPerformance Period.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"10%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the product of (x)  and (y)  results in a fractional share, such fractional<br \/>\nshare shall be rounded to the next higher whole share.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The PSUs and any Retained Distributions related thereto that do not vest as<br \/>\ndescribed above shall be completely forfeited following the end of the<br \/>\nPerformance Period.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>For purposes of this paragraph 5, a temporary leave of absence shall not<br \/>\nconstitute a termination of Employment or a failure to be continuously employed<br \/>\nby the Company or any Affiliate regardless of the Participant&#8217;s payroll status<br \/>\nduring such leave of absence if such leave of absence is approved in writing by<br \/>\nthe Company or any Affiliate. Notice of any such approved leave of absence<br \/>\nshould be sent to the Company at One Time Warner Center, New York, New York<br \/>\n10019, attention: Director, Global Stock Plans Administration, but such notice<br \/>\nshall not be required for the leave of absence to be considered approved.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>In the event the Participant&#8217;s Employment with the Company or any of its<br \/>\nAffiliates is terminated, the Participant shall have no claim against the<br \/>\nCompany with respect to the PSUs and related Retained Distributions, if any,<br \/>\nother than as set forth in this paragraph 5, the provisions of this paragraph 5<br \/>\nbeing the sole remedy of the Participant with respect thereto.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">7<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>6.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Acceleration of Vesting Date<\/strong><\/u><\/p>\n<p>. Subject to paragraphs 4(d) and 7, in the event a Change in Control or a<br \/>\nDivision Change in Control occurs prior to the end of the Performance Period,<br \/>\nthe PSUs shall immediately vest and the Participant shall receive immediate<br \/>\npayment in respect thereof determined as the sum of the following amounts:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>(x)  the number of PSUs covered by the Award that would have vested (if any)<br \/>\nif the Performance Period ended on the date of the Change in Control or Division<br \/>\nChange in Control (based on the actual Performance Level achieved through the<br \/>\ndate of the Change in Control or Division Change in Control) multiplied by a<br \/>\nfraction, the numerator of which shall be the number of days from the Date of<br \/>\nGrant through the date of such Change in Control or Division Change in Control,<br \/>\nand the denominator of which shall be the number of days from the Date of Grant<br \/>\nthrough the last day of the Performance Period; (y)  the number of Target PSUs<br \/>\nmultiplied by a fraction, the numerator of which shall be the number of days<br \/>\nfrom the date of such Change in Control or Division Change in Control through<br \/>\nthe last day of the Performance Period, and the denominator of which shall be<br \/>\nthe number of days from the Date of Grant through the last day of the<br \/>\nPerformance Period; and (z)  all related Retained Distributions.<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"10%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the sum of the amounts above would result in a fractional share, such<br \/>\nfractional share shall be rounded to the next higher whole share.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>7.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Limitation on Acceleration<\/strong><\/u><\/p>\n<p>. Notwithstanding any provision to the contrary in the Plan or this<br \/>\nAgreement, if the Payment (as hereinafter defined) due to the Participant<br \/>\nhereunder as a result of the acceleration of vesting of the PSUs pursuant to<br \/>\nparagraph 6 of this Agreement, either alone or together with all other Payments<br \/>\nreceived or to be received by the Participant from the Company or any of its<br \/>\nAffiliates (collectively, the &#8220;<u><strong>Aggregate Payments<\/strong><\/u>&#8220;), or<br \/>\nany portion thereof, would be subject to the excise tax imposed by Section  4999<br \/>\nof the Code (or any successor thereto), the following provisions shall apply:\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If the net amount that would be retained by the Participant after all taxes<br \/>\non the Aggregate Payments are paid would be greater than the net amount that<br \/>\nwould be retained by the Participant after all taxes are paid if the Aggregate<br \/>\nPayments were limited to the largest amount that would result in no portion of<br \/>\nthe Aggregate Payments being subject to such excise tax, the Participant shall<br \/>\nbe entitled to receive the Aggregate Payments.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>If, however, the net amount that would be retained by the Participant after<br \/>\nall taxes were paid would be greater if the Aggregate Payments were limited to<br \/>\nthe largest amount that would result in no portion of the Aggregate Payments<br \/>\nbeing<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">8<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>subject to such excise tax, the Aggregate Payments to which the Participant<br \/>\nis entitled shall be reduced to such largest amount.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The term &#8220;<u><strong>Payment<\/strong><\/u>&#8221; shall mean any transfer of<br \/>\nproperty within the meaning of Section 280G of the Code.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"1%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The determination of whether any reduction of Aggregate Payments is required<br \/>\nand the timing and method of any such required reduction in Payments under this<br \/>\nAgreement or in any such other Payments otherwise payable by the Company or any<br \/>\nof its Affiliates consistent with any such required reduction, shall be made by<br \/>\nthe Participant, including whether any portion of such reduction shall be<br \/>\napplied against any cash or any shares of stock of the Company or any other<br \/>\nsecurities or property to which the Participant would otherwise have been<br \/>\nentitled under this Agreement or under any such other Payments, and whether to<br \/>\nwaive the right to the acceleration of the Payment due under this Agreement or<br \/>\nany portion thereof or under any such other Payments or portions thereof, and<br \/>\nall such determinations shall be conclusive and binding on the Company and its<br \/>\nAffiliates. To the extent that Payments hereunder or any such other Payments are<br \/>\nnot paid as a consequence of the limitation contained in this paragraph 7, then<br \/>\nthe PSUs and Retained Distributions related thereto (to the extent not so<br \/>\naccelerated) and such other Payments (to the extent not vested) shall be deemed<br \/>\nto remain outstanding and shall be subject to the provisions hereof and of the<br \/>\nPlan as if no acceleration or vesting had occurred. Under such circumstances, if<br \/>\nthe Participant terminates Employment for Good Reason or is terminated by the<br \/>\nCompany or any of its Affiliates without Cause, the portion of PSUs affected by<br \/>\nthe limitation under this paragraph 7 and Retained Distributions related thereto<br \/>\n(to the extent that they have not already become vested) shall become<br \/>\nimmediately vested in their entirety upon such termination and Shares subject to<br \/>\nthe PSUs shall be issued or transferred to the Participant, as soon as<br \/>\npracticable following such termination of Employment, subject to the provisions<br \/>\nrelating to Section  4999 of the Code set forth herein.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"1%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The Company shall promptly pay, upon demand by the Participant, all legal<br \/>\nfees, court costs, fees of experts and other costs and expenses which the<br \/>\nParticipant incurred in any actual, threatened or contemplated contest of the<br \/>\nParticipant&#8217;s interpretation of, or determination under, the provisions of this<br \/>\nparagraph 7.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>8.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Withholding Taxes<\/strong><\/u><\/p>\n<p>. The Participant agrees that,<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Obligation to Pay Withholding Taxes<\/strong><\/u><\/p>\n<p>. Upon the vesting of any portion of the Award of PSUs and the Retained<br \/>\nDistributions relating thereto, the Participant will be required to pay to the<br \/>\nCompany any applicable Federal, state, local or foreign withholding tax due as a<br \/>\nresult of such payment or vesting. The Company&#8217;s obligation to deliver the<br \/>\nShares subject to the PSUs or to pay any Retained Distributions shall be subject<br \/>\nto such payment. The Company and its Affiliates shall, to the extent permitted<br \/>\nby law, have the right to deduct from the Shares issued in connection with the<br \/>\nvesting of PSUs or the Retained Distributions, as applicable, or any payment of<br \/>\nany kind otherwise due to the<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">9<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>Participant any Federal, state, local or foreign withholding taxes due with<br \/>\nrespect to such vesting or payment.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Payment of Taxes with Stock<\/strong><\/u><\/p>\n<p>. Subject to the Committee&#8217;s right to disapprove any such election and<br \/>\nrequire the Participant to pay the required withholding tax in cash, the<br \/>\nParticipant shall have the right to elect to pay the required withholding tax<br \/>\nassociated with a vesting with Shares to be received upon vesting. Unless the<br \/>\nCompany shall permit another valuation method to be elected by the Participant,<br \/>\nShares used to pay any required withholding taxes shall be valued at the closing<br \/>\nprice of a Share as reported on the New York Stock Exchange Composite Tape on<br \/>\nthe date the withholding tax becomes due (hereinafter called the &#8220;Tax Date&#8221;).<br \/>\nNotwithstanding anything herein to the contrary, if a Participant who is<br \/>\nrequired to pay the required withholding tax in cash fails to do so within the<br \/>\ntime period established by the Company, then the Participant shall be deemed to<br \/>\nhave elected to pay such withholding taxes with Shares to be received upon<br \/>\nvesting. Elections must be made in conformity with conditions established by the<br \/>\nCommittee from time to time.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"2%\"><\/td>\n<td width=\"3%\">\n<p>c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Conditions to Payment of Taxes with Stock<\/strong><\/u><\/p>\n<p>. Any election to pay withholding taxes with stock must be made on or prior<br \/>\nto the Tax Date and will be irrevocable once made.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>9.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Changes in Capitalization and Government and Other<br \/>\nRegulations<\/strong><\/u><\/p>\n<p>. The Award shall be subject to all of the terms and provisions as provided<br \/>\nin this Agreement and in the Plan, which are incorporated by reference herein<br \/>\nand made a part hereof, including, without limitation, the provisions of<br \/>\nSection  10 of the Plan (generally relating to adjustments to the number of<br \/>\nShares subject to the Award, upon certain changes in capitalization and certain<br \/>\nreorganizations and other transactions).<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>10.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Forfeiture<\/strong><\/u><strong>. <\/strong><\/p>\n<p>A breach of any of the foregoing restrictions or a breach of any of the other<br \/>\nrestrictions, terms and conditions of the Plan or this Agreement, with respect<br \/>\nto any of the PSUs or any Retained Distributions relating thereto, except as<br \/>\nwaived by the Board or the Committee, will cause a forfeiture of such PSUs and<br \/>\nany Retained Distributions relating thereto.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>11.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Right of Company to Terminate Employment<\/strong><\/u><\/p>\n<p>. Nothing contained in the Plan or this Agreement shall confer on any<br \/>\nParticipant any right to continue in the employ of the Company or any of its<br \/>\nAffiliates and the Company and any such Affiliate shall have the right to<br \/>\nterminate the Employment of the Participant at any such time, with or without<br \/>\nCause, notwithstanding the fact that some or all of the PSUs and related<br \/>\nRetained Distributions covered by this Agreement may be forfeited as a result of<br \/>\nsuch termination. The granting of the PSUs under this Agreement shall not confer<br \/>\non the Participant any right to any future Awards under the Plan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>12.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Notices<\/strong><\/u><\/p>\n<p>. Any notice which either party hereto may be required or permitted to give<br \/>\nthe other shall be in writing and may be delivered personally or by mail,<br \/>\npostage prepaid,<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">10<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>addressed to Time Warner Inc., at One Time Warner Center, New York, NY 10019,<br \/>\nAttention: Director, Global Stock Plans Administration, and to the Participant<br \/>\nat his or her address, as it is shown on the records of the Company or its<br \/>\nAffiliate, or in either case to such other address as the Company or the<br \/>\nParticipant, as the case may be, by notice to the other may designate in writing<br \/>\nfrom time to time.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>13.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Interpretation and Amendments<\/strong><\/u><\/p>\n<p>. The Board and the Committee (to the extent delegated by the Board) have<br \/>\nplenary authority to interpret this Agreement and the Plan, to prescribe, amend<br \/>\nand rescind rules relating thereto and to make all other determinations in<br \/>\nconnection with the administration of the Plan. The Board or the Committee may<br \/>\nfrom time to time modify or amend this Agreement in accordance with the<br \/>\nprovisions of the Plan, provided that no such amendment shall adversely affect<br \/>\nthe rights of the Participant under this Agreement without his or her consent.\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>14.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Successors and Assigns<\/strong><\/u><\/p>\n<p>. This Agreement shall be binding upon and inure to the benefit of the<br \/>\nCompany and its successors and assigns, and shall be binding upon and inure to<br \/>\nthe benefit of the Participant and his or her legatees, distributees and<br \/>\npersonal representatives.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>15.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Copy of the Plan<\/strong><\/u><\/p>\n<p>. By entering into the Agreement, the Participant agrees and acknowledges<br \/>\nthat he or she has received and read a copy of the Plan.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>16.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Governing Law<\/strong><\/u><\/p>\n<p>. The Agreement shall be governed by, and construed in accordance with, the<br \/>\nlaws of the State of New York without regard to any choice of law rules thereof<br \/>\nwhich might apply the laws of any other jurisdiction.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>17.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Waiver of Jury Trial<\/strong><\/u><\/p>\n<p>. To the extent not prohibited by applicable law which cannot be waived, each<br \/>\nparty hereto hereby waives, and covenants that it will not assert (whether as<br \/>\nplaintiff, defendant or otherwise), any right to trial by jury in any forum in<br \/>\nrespect of any suit, action, or other proceeding arising out of or based upon<br \/>\nthis Agreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>18.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Submission to Jurisdiction; Service of Process<\/strong><\/u><\/p>\n<p>. Each of the parties hereto hereby irrevocably submits to the jurisdiction<br \/>\nof the state courts of the State of New York and the jurisdiction of the United<br \/>\nStates District Court for the Southern District of New York for the purposes of<br \/>\nany suit, action or other proceeding arising out of or based upon this<br \/>\nAgreement. Each of the parties hereto to the extent permitted by applicable law<br \/>\nhereby waives, and agrees not to assert, by way of motion, as a defense, or<br \/>\notherwise, in any such suit, action or proceeding brought in such courts, any<br \/>\nclaim that it is not subject personally to the jurisdiction of the above-named<br \/>\ncourts, that its property is exempt or immune from attachment or execution, that<br \/>\nsuch suit, action or proceeding in the above-referenced courts is brought in an<br \/>\ninconvenient forum, that the venue of such suit, action or proceedings, is<br \/>\nimproper or that this Agreement may not be enforced in or by such court. Each of<br \/>\nthe parties hereto hereby consents to service of process by mail at its address<br \/>\nto which notices are to be given pursuant to paragraph 12 hereof.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">11<\/p>\n<hr>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<\/table>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"1%\">\n<p>19.<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u><strong>Personal Data<\/strong><\/u><\/p>\n<p>. The Company, the Participant&#8217;s local employer and the local employer&#8217;s<br \/>\nparent company or companies may hold, collect, use, process and transfer, in<br \/>\nelectronic or other form, certain personal information about the Participant for<br \/>\nthe exclusive purpose of implementing, administering and managing the<br \/>\nParticipant&#8217;s participation in the Plan. Participant understands that the<br \/>\nfollowing personal information is required for the above named purposes: his\/her<br \/>\nname, home address and telephone number, office address (including department<br \/>\nand employing entity) and telephone number, e-mail address, date of birth,<br \/>\ncitizenship, country of residence at the time of grant, work location country,<br \/>\nsystem employee ID, employee local ID, employment status (including<br \/>\ninternational status code), supervisor (if applicable), job code, title, salary,<br \/>\nbonus target and bonuses paid (if applicable), termination date and reason, tax<br \/>\npayer&#8217;s identification number, tax equalization code, US Green Card holder<br \/>\nstatus, contract type (single\/dual\/multi), any shares of stock or directorships<br \/>\nheld in the Company, details of all grants of PSUs (including number of grants,<br \/>\ngrant dates, vesting type, vesting dates, and any other information regarding<br \/>\nPSUs that have been granted, canceled, vested, or forfeited) with respect to the<br \/>\nParticipant, estimated tax withholding rate, brokerage account number (if<br \/>\napplicable), and brokerage fees (the &#8220;<u><strong>Data<\/strong><\/u>&#8220;).<br \/>\nParticipant understands that Data may be collected from the Participant directly<br \/>\nor, on Company&#8217;s request, from Participant&#8217;s local employer. Participant<br \/>\nunderstands that Data may be transferred to third parties assisting the Company<br \/>\nin the implementation, administration and management of the Plan, including the<br \/>\nbrokers approved by the Company, the broker selected by the Participant from<br \/>\namong such Company-approved brokers (if applicable), tax consultants and the<br \/>\nCompany&#8217;s software providers (the &#8220;<u><strong>Data Recipients<\/strong><\/u>&#8220;).<br \/>\nParticipant understands that some of these Data Recipients may be located<br \/>\noutside the Participant&#8217;s country of residence, and that the Data Recipient&#8217;s<br \/>\ncountry may have different data privacy laws and protections than the<br \/>\nParticipant&#8217;s country of residence. Participant understands that the Data<br \/>\nRecipients will receive, possess, use, retain and transfer the Data, in<br \/>\nelectronic or other form, for the purposes of implementing, administering and<br \/>\nmanaging the Participant&#8217;s participation in the Plan, including any requisite<br \/>\ntransfer of such Data as may be required for the administration of the Plan<br \/>\nand\/or the subsequent holding of Shares on the Participant&#8217;s behalf by a broker<br \/>\nor other third party with whom the Participant may elect to deposit any Shares<br \/>\nacquired pursuant to the Plan. Participant understands that Data will be held<br \/>\nonly as long as necessary to implement, administer and manage the Participant&#8217;s<br \/>\nparticipation in the Plan. Participant understands that Data may also be made<br \/>\navailable to public authorities as required by law, e.g., to the U.S.<br \/>\ngovernment. Participant understands that the Participant may, at any time,<br \/>\nreview Data and may provide updated Data or corrections to the Data by written<br \/>\nnotice to the Company. Except to the extent the collection, use, processing or<br \/>\ntransfer of Data is required by law, Participant may object to the collection,<br \/>\nuse, processing or transfer of Data by contacting the Company in writing.<br \/>\nParticipant understands that such objection may affect his\/her ability to<br \/>\nparticipate in the Plan. Participant understands that he\/she may contact the<br \/>\nCompany&#8217;s Stock Plan Administration to obtain more information on the<br \/>\nconsequences of such objection.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<blockquote>\n<p>12<\/p>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6713],"corporate_contracts_industries":[9510],"corporate_contracts_types":[9539,9545],"class_list":["post-40262","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-aol-time-warner-inc","corporate_contracts_industries-technology__programming","corporate_contracts_types-compensation","corporate_contracts_types-compensation__esp"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/40262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=40262"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40262"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40262"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}