Exhibit 99.1
SEPARATION AGREEMENT AND RELEASE
FOR SUE HAMILTON
This Separation Agreement and Release (this
“Agreement”) is entered into between Charter
Communications, Inc. (the “Company” or
“Charter”) and me, Sue Hamilton, as a condition to my
receiving payments pursuant to my Employment Agreement with Charter
dated as of October 31, 2005 (the “Employment
Agreement”) in connection with the termination of my
employment with Charter as of March 31, 2007 (the
“Termination Date”). The Company and I hereby agree as
follows:
(a) Payments And
Benefits Payable Per The Employment Agreement: Provided I am
not terminated for breach of the terms of this agreement or of my
Employment Agreement prior thereto, I shall remain employed by
Charter pursuant to the terms of my Employment Agreement until the
Termination Date; I shall receive salary at my current annual rate
of $385,000 in biweekly installments as such installments are
normally paid to senior executives (with all salary installments
due but not paid prior to my execution of this Agreement to be paid
on the first payday after all conditions in Section 5.6 of the
Employment Agreement are satisfied); I shall continue to receive
all benefits I was receiving as of December 31, 2006, without
interruption, including, without limitation, health insurance; and
I shall continue to participate in all medical and child care flex
spending accounts I have previously selected, all until the
Termination Date; provided that I will cease to incur
deductions or make contributions to the Charter PAC as of December
31, 2006; and further provided that I shall only be required to
provide services to Charter as provided in section “f”
hereof; and finally provided that I may seek and/or accept other
employment during such period. In addition, in exchange for my
execution and delivery of this Agreement, specifically including
the effectiveness of the release set forth in section
“b” hereof (and the failure to revoke same within seven
(7) days after I sign and deliver it), the Company will provide me
with the following payments and benefits in satisfaction of the
requirements of Section 5.5.1 of the Employment Agreement and any
other claim I may hold against Charter or its employees:
(i) The base salary
that would have been paid to me, calculated at the current annual
rate of $385,000.00 per annum, from the date my employment is
terminated through March 31, 2008 (the “Separation
Term”); provided that the total of all such payments
shall not exceed, in the aggregate, the gross amount of
$385,000.00. Subject to the provisions of Section 5.6 of the
Employment Agreement, this amount (the “Separation
Payment”) will be paid over the Separation Term in equal bi
weekly installments on the Company’s regular pay days for
executives, commencing with the first payday after all conditions
in Section 5.6 of the Employment Agreement are satisfied;
provided that , in order to avoid the tax consequences of
Section 409A of
the Internal Revenue Code of 1986 (the
“Code”), the first payment shall cover all payments
scheduled to be made to me in the bi weekly payments that would
have been made to me for the period (the “Initial Payment
Period”) beginning on April 1, 2007 and ending on the six (6)
month anniversary of the date I have a separation from service for
purposes of Code Section 409A, and the first such payment shall be
delayed until the day after the end of the Initial Payment
Period;
(ii) The amount of any
and all incentive and/or performance bonus compensation for 2006,
without proration, and a pro rata amount of incentive
and/or performance bonus compensations for 2007, if and to the
extent such bonuses are otherwise payable under the terms of the
applicable bonus plan as determined by the Board, based upon
results for the entire years of 2006 and 2007, as applicable. These
amounts will be payable as and when bonus compensation under such
plan for the year in question is paid to other participants
generally but not later than March 15, 2007 for the 2006 bonus or
March 15, 2008 for the 2007 bonus, and will not be subject to any
deduction or adjustment that is not similar and proportionate to
those made to bonuses paid to other senior executives. The Board
shall determine the amount of any such bonus and/or the extent to
which any such bonus has been earned under the plan, in its sole
discretion, considering results for the entire year and not just
the period of my employment;
(iii) A lump sum
payment (net after deduction of taxes and other required
withholdings) equal to twelve (12) times the monthly cost, at the
time my employment is terminated, for me to receive under COBRA the
paid coverage for health, dental and vision benefits then being
provided for me and my family at the Company’s cost at the
time my employment is terminated. This amount will be paid on the
day after the last day of the Initial Payment Period, and will not
take into account future increases in costs during the applicable
time period;
(iv) To the extent
authorized and permitted by the terms of the applicable plan, any
stock options previously awarded to me will continue to vest, and
any restricted stock previously awarded to me shall have their
restrictions lapse, both as called for under such plan for the
Separation Term, in accordance with the schedule attached hereto as
Schedule A . This Separation Term qualifies, in the case of
a payment under Section 5.5.1 of the Employment Agreement, as the
period of time during which I am receiving severance for purposes
of Section 5.4 of the Charter Communications, Inc. 2001 Stock
Incentive Plan, as amended, and any applicable stock option or
restricted stock agreement signed pursuant to a grant under such
plan (and the payment specified in Section 5.5.1 (a) of the
Employment Agreement qualifies as “severance” for
purposes of Section 5.4 of the Charter Communications, Inc. 2001
Stock Incentive Plan). Notwithstanding the foregoing, no stock
option shall remain
exercisable beyond the latest date on which
the term of the stock option could be extended without causing the
stock option to be treated as deferred compensation subject to
Section 409A of the Internal Revenue Code.
These payments and benefits will be paid
and/or provided as and when called for by the Employment Agreement
after all conditions to the effectiveness of this Agreement and the
releases called for by this Agreement have been satisfied. The
right to retain the same shall be subject to compliance with this
Agreement and the terms of the Employment Agreement. In the event I
die before all payments and amounts due to me hereunder are paid,
any remaining payments will be made to my spouse, if he survives me
and, if not, then to my estate.
I acknowledge I have received my wages per the
terms of my Employment Agreement for all time worked through and
ending December 31, 2006, and I will received with my first
severance payment cash payout of 144 hours of accrued and unused
vacation calculated as of March 31, 2007 at my rate of base salary
in effect as of December 31, 2006. I acknowledge receiving payment
of the amounts specified in this paragraph by my signature on this
Agreement.
(b) Complete
Release : I hereby understand and agree to the termination
of all offices, directorships, manager positions and other similar
offices I hold with Charter or any of its subsidiaries or related
or affiliated corporations, limited liability companies and
partnerships effective the close of business December 31, 2006 and
all employment by Charter effective the close of business on March
31, 2007. In consideration for the payments I am to receive
hereunder, I unconditionally and irrevocably release, waive and
give up any and all known and unknown claims, lawsuits and causes
of action, if any, that I now may have or hold against Charter, its
current and former parents, plans, subsidiaries, and related or
affiliated corporations, ventures, limited liability companies and
partnerships, and their respective current and former employees,
directors, fiduciaries, administrators, insurers, members,
managers, partners, and agents and related parties, in any way
arising out of, in connection with or based upon (i) any event or
fact that has occurred prior to the date I sign this Agreement,
(ii) my employment with Charter and/or any of its subsidiaries or
affiliates to date and any event or occurrence occurring during
such employment, (iii) the termination of my employment, (iv) any
breach of the Employment Agreement, (v) any claim to payment under
or from Charter’s 2005 Executive Cash Award Plan or for
salary, bonus, stock options or restricted shares other than as
specifically granted pursuant to this Agreement; or (vi) any
decision, promise, agreement, statement, policy, practice, act or
conduct prior to this date of or by any person or entity I am
releasing, and from any claims, lawsuits. I understand that this
means that, subject to the limitations described below, I am
releasing Charter and such other persons and entities from, and may
not bring claims against any of them under (a) Title VII of the
Civil Rights Act of 1964 or Sections 1981 and 1983 of the Civil
Rights Act of 1866,
which prohibit discrimination based on race,
color, national origin, ancestry, religion, or sex; (b) the Age
Discrimination in Employment Act, which prohibits discrimination
based on age; (c) the Equal Pay Act, which prohibits paying men and
women unequal pay for equal work; (d) the Americans with
Disabilities Act and Sections 503 and 504 of the Rehabilitation Act
of 1973, which prohibit discrimination based on disability; (e) the
WARN Act, which requires that advance notice be given of certain
workforce reductions or the Missouri Human Rights Act, chapter 213,
R.S. Mo
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