Document:

EX-10.7 LIMITED PARTNERSHIP AGREEMENT

 

Exhibit
10.7

LIMITED PARTNERSHIP

AGREEMENT

OF

TEXAS CABLE PARTNERS, L.P.

(a Delaware limited partnership)

 

Dated as of June 23, 1998

 

     

 

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LIMITED PARTNERSHIP

AGREEMENT

OF

TEXAS CABLE PARTNERS, L.P.

          This Limited Partnership Agreement of Texas Cable Partners, L.P., a Delaware limited
partnership (the “Partnership”), is made as of this 23rd day of June, 1998, by and between Time
Warner Entertainment-Advance/Newhouse Partnership, a New York general partnership (“TWE-A/N”),
TWE-A/N Texas Cable Partners General Partner, a Delaware limited liability company (“TWE-A/N GP”),
TCI Texas Cable Holdings LLC, a Colorado limited liability company (“TCI”), and TCI Texas Cable,
Inc., a Colorado corporation (“TCI GP”).

          The parties wish to form a limited partnership pursuant to the Revised Uniform Limited
Partnership Act of the State of Delaware, as amended from time to time (the “Act”), by filing a
certificate of limited partnership as provided in the Act and entering into this Agreement.

          The parties hereby constitute themselves a limited partnership for the purposes and on the
terms and conditions set forth in this Agreement (as defined below).

          The Partnership (as defined below), TWE-A/N, TWE-A/N GP, TCI and TCI GP have entered into that
certain Contribution Agreement dated as of the date hereof (the “Contribution Agreement”), pursuant
to which, among other things, the Partners (as defined below) have agreed to contribute and
transfer to the Partnership, and the Partnership has agreed to accept and receive from the
Partners, as initial capital contributions to the Partnership, substantially all of the assets and
properties owned by the Partners and used or useful in the operation of the cable television
systems serving the areas described in the Contribution Agreement.

          In consideration of the covenants and agreements set forth herein and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereby agree as follows:

ARTICLE I

DEFINITIONS

          1.1 Definitions. As used herein, the following terms shall have the meanings set
forth below:

          @Home: At Home Corporation, a Delaware corporation.

 

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          @Home Distribution Agreement: As defined in the Contribution Agreement.

          @Home Service: As defined in the @Home Distribution Agreement.

          Adjusted Capital Account: With respect to any Partner, such Partner’s Capital Account
balance, increased by such Partner’s share of Partnership Minimum Gain and Partner Minimum Gain.

          Advance/Newhouse: Advance/Newhouse Partnership, a New York general partnership, and
its successors and assigns.

          Affiliate: With respect to any Person, any other Person Controlling, Controlled by or
under common Control with such Person; provided, however, that, none of UMG, Advance/Newhouse or
any of their Parents or Subsidiaries shall be deemed to be an Affiliate of TWE-A/N.

          Agreement: This Limited Partnership Agreement, as amended from time to time.

          Beneficial Assets: Any Type B Retained Franchise held for the benefit of the
Partnership pursuant to Section 7.25.2 of the Contribution.

          Cable Affiliates: With respect to (i) TCI and TCI GP, any of TCI Communications or
TCI Communications’ Subsidiaries, and (ii) TWE-A/N or TWE-A/N GP, TWC.

          Closing: As defined in the Contribution Agreement.

          Closing Date: As defined in the Contribution Agreement.

          Closing Price: With respect to any TWX Securities on any day, the last reported sale
price of a unit of such TWX Securities (regular way) on such day as shown on the NYSE Composite
Transaction Tape, or in case no such sale takes place on such day, the average of the closing bid
and asked prices of a unit of such TWX Securities on such day on the NYSE, or, if such TWX
Securities are not listed or admitted to trading on the NYSE, on the principal national securities
exchange on which such TWX Securities are listed or admitted to trading, or, if they are not listed
or admitted to trading on any national securities exchange, the average of the closing bid and
asked prices of such TWX Securities on such day as reported by NASDAQ, or if such TWX Securities
are not so reported, the average of the closing bid and asked prices of a unit of such TWX
Securities on such day as furnished by any member of the National Association of Securities
Dealers, Inc. selected from time to time by TWX for that purpose; provided that in each case, the
Closing Price shall be equitably adjusted to take into account any recapitalizations,
reclassifications, mergers, consolidations, spin-offs, extraordinary dividends or distributions,
subdivisions or combinations or the like affecting the TWX Securities.

 

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          Code: The Internal Revenue Code of 1986, as amended from time to time, or any
successor statute or statutes to the Internal Revenue Code of 1986.

          Consumer Price Index: The United States Department of Labor, Bureau of Labor
Statistics Consumer Price Index for the United States City Average (All Urban Consumers, All Items)
(1982-1984=100), as in effect from time to time. If the Consumer Price Index shall be
discontinued, there shall be substituted for the Consumer Price Index a reasonably reliable and
comparable index or other information furnished by the United States government or independent
third party source, in either case as selected by the General Manager.

          Control: The ownership, directly or indirectly, of voting securities representing the
right generally to elect a majority of the directors (or similar officials) of a Person or the
possession, by contract or otherwise, of the authority to direct the management and policies of a
Person.

          Covered Person: Any Partner, any Affiliate of a Partner, and any officer, director,
shareholder, partner, member, employee or agent of a Partner or any Affiliate thereof, and any
officer, employee or authorized agent of the Partnership.

          Depreciation: With respect to any fiscal year, an amount equal to the depreciation,
amortization or other cost recovery deduction allowable with respect to an asset for Federal income
tax purposes, except that if the Gross Asset Value of the asset differs from its adjusted tax
basis, Depreciation shall be determined in accordance with the methods used for federal income tax
purposes and shall equal the amount that bears the same ratio to the Gross Asset Value of such
asset as the depreciation, amortization or other cost recovery deduction computed for federal
income tax purposes with respect to such asset bears to the adjusted federal income tax basis of
such asset in accordance with Section 1.704-1(b)(2)(iv)(g) of the Treasury Regulations; provided,
however, that if any such asset that is depreciable or amortizable has an adjusted federal income
tax basis of zero, the rate of Depreciation shall be as determined by the General Partners.

          Designated Programing Services: American Movie Classics, American Sports Classics (or
its successors), Animal Planet, Bravo, Discovery Channel, DMX, ESPN, Fox News, fX, Fox Sports SW,
Home and Garden, Home Shopping Network, Home Team Sports, MSNBC, Romance Classics, Showtime
(primary feed only), The Box, The Learning Channel, The Movie Channel (primary feed only) and WEB
TV. Notwithstanding the foregoing, American Sports Classics (or its successors) will not be
included in the definition of “Designated Programming Services” with respect to any TCI System if
TCI or any Affiliate of TCI receives a termination agreement or release with respect to such
service or if such service is not available for carriage on such TCI System at the Closing.

          DMA: “Designated Market Area,” as described in the Code of Federal Regulations at 47
C.F.R. § 76.55(e).

 

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          Effective Tax Rate: For any year, the percentage determined by the tax matters
partner to be a reasonable estimate of the highest marginal combined Federal, state and local
income tax rate (giving effect to the deduction of state and local income taxes, as applicable, for
Federal and state income tax purposes) that would be applicable to the Partnership if it were a
stand-alone corporation.

          Equity Security: As defined in Rule 405 promulgated under the Securities Act as in
effect on the date hereof, and in any event includes any limited partnership interest, any limited
liability company interest and any other interest or security having the attendant right to vote
for directors or similar representatives.

          Excess Capacity Leases: As defined in the Contribution Agreement.

          Exclusive Internet Services: Those Internet Services which would constitute a
Restricted Business (as defined in the @Home Distribution Agreement) to the extent engaged in or
distributed by TCI Communications, Inc. or its Controlled Affiliates (as defined in the @Home
Distribution Agreement) over their cable plant and equipment.

          Fair Market Value: As to any property, the price at which a willing seller would sell
and a willing buyer would buy such property in an arm’s-length transaction without time
constraints, in light of factors including but not limited to prices paid for comparable
properties, cash flow, book value, earnings, and prospects for future earnings and cash flow. Any
determination of Fair Market Value hereunder (except for any determination made pursuant to Section
7.4(a) or 8.4(c)) shall be agreed by the General Partners, provided that if the General Partners
shall not be able so to agree, such determination shall be conclusively established by independent
appraisal in the manner contemplated by Section 8.3(c).

          Final Determination: Any of the following: (i) a decision, judgment, decree or
other order of a court of original jurisdiction which has become final (i.e., the time for filing
an appeal shall have expired), (ii) a closing agreement made under Section 7121 of the Code or any
other settlement agreement entered into in connection with an administrative or judicial
proceeding, provided, however, that any refund claim shall be deemed approved without regard to any
required approval of the Joint Committee on Taxation, (iii) the expiration of the time for
instituting a claim for refund, or if a claim was filed, the expiration of the time for instituting
suit with respect thereto, or (iv) in any case where judicial review shall be unavailable, a
decision, judgment, decree or other order of an administrative official or agency which has become
final.

          General Partner: TWE-A/N GP, TCI GP and any other Person hereafter admitted as a
general partner of the Partnership in accordance with the terms hereof, but excluding any Person
that ceases to be a Partner in accordance with the terms hereof.

          Gross Asset Value: With respect to any asset, the asset’s adjusted basis for federal
income tax purposes, except that (i) the Gross Asset Value of any asset contributed to the
Partnership (including any Beneficial Assets and assets exchanged for

 

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any asset contributed to the Partnership) shall be its gross Fair Market Value (as determined
by the General Partners) at the time such asset is contributed or deemed contributed (or the asset
for which such asset is exchanged is contributed or deemed contributed) for purposes of computing
Capital Accounts (which, in the case of the assets contributed pursuant to the Contribution
Agreement, shall be consistent with the TCI Value and TWE-A/N Value, as the case may be, set forth
in Section 3.1.1 of the Contribution Agreement), (ii) upon a contribution of money or other
property to the Partnership by a new or existing Partner as consideration for an Interest in the
Partnership and upon a distribution of money or other property to a retiring or continuing Partner
as consideration for an Interest in the Partnership, the Gross Asset Value of all of the assets of
the Partnership shall be adjusted to equal their respective gross Fair Market Values except no
adjustment shall be made in connection with a Type A Closing (as defined in the Contribution
Agreement), (iii) the Gross Asset Value of any asset (including any Beneficial Asset) distributed
in kind to any Partner shall be the gross Fair Market Value of such asset on the date of such
distribution, and (iv) the Gross Asset Value of any asset (including any Beneficial Assets)
determined pursuant to clauses (i) or (ii) above shall thereafter be adjusted from time to time by
the Depreciation taken into account with respect to such asset for purposes of determining Net
Profit or Net Loss.

          Interest: The entire ownership interest of a Partner in the Partnership at any time,
including the rights of such Partner to Partnership capital, income, loss, distributions and other
benefits to which such Partner may be entitled hereunder, and the obligations of such Partner to
comply with the applicable terms and provisions of this Agreement.

          Internet Backbone: A network which: (a) can or does (i) assign IP addresses or manage
IP address assignments for machines or networks to which it is connected, (ii) accept or deliver IP
datagrams from machines or networks to which it is connected, or (iii) maintain IP packet traffic
to other machines or networks; and (b) provides IP connectivity on a regional, national or
international basis; provided, however, that such a network which provides
connectivity solely within a single metropolitan area shall not be deemed as Internet Backbone.

          Internet Backbone Service: A communications service provided over an Internet
Backbone.

          Internet Service: A communications service provided over a network which can or does
(a) assign IP addresses or manage IP address assignments for machines or networks to which it is
connected, (b) accept or deliver IP datagrams from machines or networks to which it is connected,
or (c) maintain IP packet traffic to other machines or networks.

          IP: The Internet Protocols as defined by the document titled RFC-791, edited
by Jon Postell of the University of Southern California, dated 1981, or subsequent revisions
thereof.

 

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          Limited Partner: TWE-A/N and TCI and any other Person hereafter admitted as a limited
partner of the Partnership in accordance with the terms hereof, but excluding any Person that
ceases to be a Partner in accordance with the terms hereof.

          Management Agreement: The Management Agreement between the Partnership and TWC, in
the form of Exhibit 9.4.2 of the Management Agreement and to be entered into at the Closing
pursuant to Section 9.4.2 of the Contribution Agreement, and pursuant to which the Partnership
shall engage TWC to provide management and other services to the Partnership.

          Net Profit or Net Loss: With respect to any fiscal year or other period, the
taxable income or loss of the Partnership as determined for federal income tax purposes, with the
following adjustments:

                    (i) Such taxable income or loss shall be increased by the amount, if any, of tax-exempt
income received or accrued by the Partnership;

                    (ii) Such taxable income or loss shall be reduced by the amount, if any, of all expenditures
of the Partnership described in Section 705(a)(2)(B) of the Code, including expenditures treated as
described therein under § 1.704-1(b)(2)(iv)(i) of the Treasury Regulations;

                 (iii) If the Gross Asset Value of any asset is adjusted pursuant to clause (ii) or (iii) of
the definition of Gross Asset Value, the amount of such adjustment shall be taken into account,
immediately prior to the event giving rise to such adjustment, as gain or loss from the disposition
of such asset for purposes of computing Net Profit or Net Loss;

                 (iv) Gain or loss resulting from any disposition of any asset with respect to which gain or
loss is recognized for federal income tax purposes shall be computed by reference to the Gross
Asset Value of the asset disposed of, notwithstanding that such Gross Asset Value differs from the
adjusted tax basis of such asset; and

                    (v) In lieu of the depreciation, amortization, or other cost recovery deductions taken into
account in computing such taxable income or loss, there shall be taken into account Depreciation
for such fiscal year.

          Nonrecourse Deductions: As defined in § 1.704-2(b)(1) of the Treasury Regulations.
The amount of Nonrecourse Deductions for any year equals the excess, if any, of the net increase in
the amount of Partnership Minimum Gain during such year over the aggregate amount of any
distributions during such year of proceeds of a Nonrecourse Liability that are allocable to an
increase in Partnership Minimum Gain, determined in accordance with § 1.704-2(c) of the Treasury
Regulations.

          Nonrecourse Liability: As defined in § 1.704-2(b)(3) of the Treasury Regulations.

 

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          NYSE: New York Stock Exchange.

          Parent: With respect to any Person, any other Person that Controls such Person
directly or indirectly through any Subsidiary of such other Person or owns directly or indirectly
through any Subsidiary of such other Person more than 50% of the outstanding common stock or
outstanding Equity Securities ordinarily entitled to vote of such Person.

          Partner: Any of the General Partners and the Limited Partners.

          Partner Minimum Gain: “Partner nonrecourse debt minimum gain,” as defined in §
1.704-2(i)(2) of the Treasury Regulations, and shall be determined in accordance with §
1.704-2(i)(3) of the Treasury Regulations.

          Partner Nonrecourse Debt: “Partner nonrecourse debt,” as defined in § 1.704-2(b)(4)
of the Treasury Regulations.

          Partner Nonrecourse Deductions: “Partner nonrecourse deductions,” as defined in §
1.704-2(i)(1) of the Treasury Regulations, and shall be determined in accordance with §
1.704-2(i)(2) of the Treasury Regulations.

          Partnership ADI/DMA: From the date hereof through December 31, 1999, the “Area of
Dominant Influence,” and effective January 1, 2000, the “Designated Market Area,” in each case as
described in the Code of Federal Regulations at 47 C.F.R. § 76.55(e) and as set forth in the table
below:

	 	 	 
	          Area of Dominant Influence	 	Designated Market Area
	Houston

	 	Houston
	Laredo, TX

	 	Laredo, TX
	El Paso (Las Cruces, N.M.)

	 	El Paso
	Dallas — Fort Worth

	 	Dallas — Fort Worth
	Beaumont — Port Arthur, TX

	 	Beaumont — Port Arthur, TX
	San Antonio — Victoria

	 	San Antonio, TX
	(Eagle Pass & Kerrville), TX

	 	Victoria, TX
	McAllen-Brownsville:

	 	Harlingen-Weslaco-
	Lower Rio Grande Valley, TX

	 	Brownsville-McAllen, TX
	Wichita Falls, TX — Lawton, OK

	 	Wichita Falls, TX & Lawton, OK

          Partnership Minimum Gain: “Partnership minimum gain,” as defined in § 1.704-2(b)(2)
of the Treasury Regulations, and shall be determined in accordance with § 1.704-2(d) of the
Treasury Regulations.

 

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          Percentage Interest: The percentage interest of a Partner in the Partnership set
forth in Section 3.1.

          Person: Any individual, corporation, general or limited partnership, limited
liability company, joint venture, trust, association, unincorporated entity of any kind, or a
government or any department or agency thereof.

          Related Partners: (i) TWE-A/N and TWE-A/N GP or any subsequent Permitted Transferees
of their Interests, on the one hand, and (ii) TCI and TCI GP or any subsequent Permitted
Transferees of their Interests, on the other hand.

          Securities Act: The Securities Act of 1933, as amended.

          Senior Credit Agreement: The primary credit agreement between the Partnership and its
principal institutional lender or lenders (other than a Partner or an Affiliate of a Partner)
providing for debt financing which is expressly nonrecourse to the Partners.

          Senior Debt: All obligations of the Partnership under the Senior Credit Agreement.

          ServiceCo: ServiceCo LLC, a Delaware limited liability company (or its successor, if
any), which is the Person that operates the internet services and content aggregation business
conducted as of the date hereof under the name “Road Runner.”

          Sprint Agreement: The Parents Agreement dated as of January 31, 1996 between an
Affiliate of TCI and Sprint Corporation.

          Subsidiary: With respect to any Person, any other Person Controlled by such Person
directly or indirectly through any other Subsidiary of such Person.

          TCI Assets: As defined in the Contribution Agreement.

          TCI Communications: TCI Communications, Inc., a Delaware corporation.

          TCI Indebtedness: As defined in the Contribution Agreement.

          TCINS: As defined in the Contribution Agreement.

          TCI Systems: The cable television systems contributed to the Partnership by TCI or
TCI GP and serving the areas listed on Schedule 1.

          Transfer: Any transfer, sale, assignment, pledge, lease, hypothecation, mortgage,
gift or creation of security interest, lien or trust (voting or otherwise) or other encumbrance or
other disposition of any Interest. “Transferor” and “Transferee” have correlative meanings and, in
addition, shall mean any Person who, in the case of a

 

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Transferor, issues Equity Securities of a Partner or a Parent of a Partner and, in the case of
a Transferee, acquires Equity Securities so issued.

          Treasury Regulations: The Income Tax Regulations, including Temporary Regulations,
promulgated under the Code, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

          TWC: Time Warner Cable, a division of TWE.

          TWE: Time Warner Entertainment Company, a Delaware limited partnership.

          TWE-A/N Assets: As defined in the Contribution Agreement.

          TWE-A/N Indebtedness: As defined in the Contribution Agreement.

          TWE-A/N Systems: The cable television systems contributed to the Partnership by
TWE-A/N or TWE-A/N GP and serving the areas listed on Schedule 2.

          Type A Closing Date: As defined in the Contribution Agreement.

          Type B Closing Date: As defined in the Contribution Agreement.

          Ultimate Parent: With respect to any Partner, the Parent of such Partner that is not
a Subsidiary of any other Person. Initially, the Ultimate Parent of TWE-A/N and TWE-A/N GP is Time
Warner Inc., a Delaware corporation, and the Ultimate Parent of TCI and TCI GP is
Tele-Communications, Inc., a Delaware corporation.

          UMG: MediaOne Group, Inc., a Delaware corporation, and its successors and assigns
(including any successor to or assignee of all of its cable business).

          1.2 Cross-References. The following terms have the meanings set forth in the sections
indicated in the table below:

	 	 	 	 	 
	Term	 	 	Section
	Act
	 	 	Preamble
	Agent
	 	 	10.14      
	Annual Budget
	 	 	4.9	 
	Asset Pool
	 	 	8.4	(b)
	bona fide offer
	 	 	7.3	(a)(i)
	Business
	 	 	6.2	(a)
	Buy-Sell Procedure
	 	 	7.4	(a)
	Buy-Sell Price
	 	 	7.4	(b)
	Buy-Sell Transaction
	 	 	7.4	(h)
	Buy-Sell Notice
	 	 	7.4	(a)
	Capital Account
	 	 	3.3	 
	Claims
	 	 	6.9	(e)
	Competing Business
	 	 	6.2	(b)(v)

 

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	Term	 	 	Section	 
	Contribution Agreement
	 	 	Preamble
	CPST Subscribers
	 	 	6.8	 
	Damages
	 	 	4.1(a)	 
	Defaulting Partners
	 	 	8.3(b)	 
	Dissolution Notice
	 	 	7.4(b); 8.4(a)	 
	Dissolution Procedure
	 	 	8.4(a)	 
	Dividing Partners
	 	 	7.4(b); 8.4(b)	 
	Eligible Option Holder
	 	 	6.9(c)	 
	Estimated Tax Amount
	 	 	3.5(c)	 
	Event of Default
	 	 	8.3	 
	Event of Termination
	 	 	8.1	 
	FCC
	 	 	6.8	 
	General Manager
	 	 	4.6	 
	General Manager Indemnitee
	 	 	9.4(b)	 
	General Manager Indemnitor
	 	 	9.4(b)	 
	Initial Budget
	 	 	4.9	 
	Initiating Partners
	 	 	7.4(a)	 
	Management Committee
	 	 	4.2	 
	Non-Defaulting Partners
	 	 	8.3(b)	 
	Non-Initiating Partners
	 	 	7.4(a)	 
	Non-Triggering Partner
	 	 	8.4(a)	 
	Notice Period
	 	 	7.3(a)(iii)	 
	Offer Notice
	 	 	7.3(a)(ii)	 
	Offeree Partners
	 	 	7.3(a)(i)	 
	Partnership
	 	 	Preamble
	Partnership Fair Value
	 	 	8.3(b)	 
	Permitted Transferee
	 	 	7.2	 
	Permitted Transfer
	 	 	7.2	 
	Personnel
	 	 	6.9(a)	 
	Pre-existing
Affiliation Agreement
	 	 	6.4(b)
	Purchasing Partners
	 	 	7.4(b); 7.4(e); 8.4(d)	 
	Regulatory Allocations
	 	 	3.4(e)	 
	Selecting Partners
	 	 	7.4(b); 8.4(b)	 
	Selection Notice
	 	 	8.4(c)	 
	Selling Partners
	 	 	7.3(a)(i)	 
	Social Contract
	 	 	6.8	 
	Stated Value
	 	 	7.4(a)	 
	Systems
	 	 	2.3(a)	 
	tax matters partner
	 	 	5.4(a)	 
	TCI
	 	 	Preamble
	TCI GP
	 	 	Preamble
	Third Party Purchaser
	 	 	7.3(a)(i)	 
	Transferring Partners
	 	 	7.4(b); 7.4(d)	 
	Triggering Partners
	 	 	8.4(a)	 
	TWE-A/N
	 	 	Preamble
	TWE-A/N GP
	 	 	Preamble
	TWX Securities
	 	 	6.9(c)	 

 

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          1.3 Usage Generally. The definitions in Article I shall apply equally to both the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. All references herein to
Articles, Sections, Exhibits and Schedules shall be deemed to be references to Articles and
Sections of, and Exhibits and Schedules to, this Agreement unless the context shall otherwise
require. All Exhibits and Schedules attached hereto shall be deemed incorporated herein as if set
forth in full herein and, unless otherwise defined therein, all terms used in any Exhibit or
Schedule shall have the meaning ascribed to such term in this Agreement. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The
words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
Unless otherwise expressly provided herein, any agreement, instrument or statute defined or
referred to herein or in any agreement or instrument that is referred to herein means such
agreement, instrument or statute as from time to time amended, modified or supplemented, including
(in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by
succession of comparable successor statutes and references to all attachments thereto and
instruments incorporated therein.

ARTICLE II

ORGANIZATION

          2.1 Formation. The Partners hereby agree to form the Partnership as a limited
partnership under and pursuant to the provisions of the Act. The Partners hereby agree that the
Partnership shall be governed by, and the rights, duties and liabilities of the Partners shall be
as provided in, the Act and this Agreement.

          2.2 Name. The name of the Partnership shall be “Texas Cable Partners, L.P.” or such
other name as the Partners may determine. Upon compliance with applicable laws, the Partnership
will do business under any assumed or fictitious name legally available for use by the Partnership
as may be designated by the General Manager, provided that the Partnership’s use of any such name
that is similar to the trade name used by any Partner or any Affiliate of any Partner may be used
only with the prior written consent of such Partner or Affiliate. The Partnership shall file any
assumed name certificates and similar filings, and any amendments thereto, that the General Manager
considers appropriate or advisable.

          2.3 Purpose. The purposes of the Partnership shall be:

               (a) to acquire, develop, own, finance, invest in, maintain, operate, expand, sell, exchange or
otherwise dispose of cable television systems serving

 

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areas located in the Texas and New Mexico counties included in the Partnership ADI/DMA (the
“Systems”);

               (b) to acquire, develop, own, finance, invest in, maintain, operate, manage, expand, sell,
exchange or otherwise dispose of businesses related to the operation of the Systems or to services
that are offered substantially through the Systems, including without limitation programming and
information services, internet access services (subject to the limitations set forth in Section
6.4), digital services, and cable advertising;

               (c) to acquire, develop, own, finance, invest in, maintain, operate, manage, expand, sell,
exchange or otherwise dispose of residential and business telephony services associated with the
Systems (including alternative access services, wireless telephone services, personal
communications services and other similar services) and other businesses that utilize broadband
distribution facilities, subject to the limitations set forth in Section 6.5;

               (d) to conduct other businesses as contemplated by the then-effective Annual Budget or as
otherwise agreed to by the Management Committee;

               (e) to engage in such other activities as the Management Committee shall deem necessary or
desirable, subject to the limitations set forth in this Agreement and the Act; and

               (f) to engage in all activities and transactions which are necessary, convenient, desirable,
or incidental to the foregoing (including incurring indebtedness for money borrowed and related or
similar credit obligations), subject to the limitations set forth in this Agreement.

Except as otherwise limited by this Agreement or applicable law, the Partnership shall have the
power and authority to do any and all acts as shall be necessary, appropriate, proper, advisable,
convenient or incidental to or for the furtherance of the purposes of the Partnership.

          2.4 Principal Office. The Partnership’s principal place of business, at which, except
as otherwise provided in or permitted by the Management Agreement, the records of the Partnership
shall be maintained, shall be at 290 Harbor Drive, Stamford, CT 06902 but the Partnership may from
time to time have another or additional places of business within or without the State of Texas as
may be designated by the Management Committee or the General Manager.

          2.5 Effective Date; Term. This Agreement shall become effective upon (i) the filing
of the certificate of limited partnership of the Partnership in the form attached hereto as Exhibit
A with the Secretary of State of the State of Delaware and (ii) the execution of this Agreement by
the Partners. The Partnership shall continue in existence until it is dissolved and its affairs
wound up, or until it is terminated, in accordance with this Agreement.

 

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          2.6 Registered Office. The address of the Partnership’s registered office in Delaware
shall be c/o Corporation Service Company, 1013 Centre Road, Wilmington, Delaware 19805.

          2.7 Registered Agent. The name and address of the registered agent of the Partnership
for service of process on the Partnership in the State of Delaware initially is Corporation Service
Company, 1013 Centre Road, Wilmington, Delaware 19805. The General Manager may at any time and
from time to time designate another registered agent.

          2.8 Filings. The Partners promptly shall cause the execution and delivery of such
documents and the performance of such acts consistent with the terms of this Agreement as may be
necessary to comply with the requirements of law for the formation, qualification and operation of
a limited partnership under the laws of each jurisdiction in which the Partnership shall conduct
business. All expenses of such filings shall be borne by the Partnership.

ARTICLE III

COMPANY CAPITAL

          3.1 Percentage Interests. The respective Percentage Interests of the Partners in the
Partnership shall be as set forth below:

	 	 	 	 	 
	TWE-A/N
	 	 	49.5	%
	TCI
	 	 	49.5	%
	TWE-A/N GP
	 	 	.5	%
	TCI GP
	 	 	.5	%

A Partner’s Interest shall for all purposes be personal property. Except as expressly provided
herein, no Partner shall have any interest in specific Partnership property.

          3.2 Capital Contributions.

               (a) In accordance with the terms of the Contribution Agreement, on the Closing Date, the Type
A Closing Date or any Type B Closing Date:

              (i) TWE-A/N shall contribute to the Partnership the TWE-A/N Assets (or cash in lieu
thereof to the extent provided by Section 7.25 of the Contribution Agreement) subject to
the TWE-A/N Indebtedness, and TCI shall contribute to the Partnership the TCI Assets (or
cash in lieu thereof to the extent provided by Section 7.25 of the Contribution Agreement)
subject to the TCI Indebtedness; and

              (ii) TWE-A/N GP and TCI GP shall contribute to the Partnership cash equal to 1% of the
TWE-A/N Adjusted Value and the TCI Adjusted Value, respectively, each as preliminarily
determined pursuant to the Contribution Agreement.

 

15

               (b) Upon finalization of the calculation of the TWE-A/N Final Adjusted Value and the TCI Final
Adjusted Value in accordance with the terms of the Contribution Agreement:

                 (i) either (A) TCI LP shall contribute to the Partnership cash equal to the amount by
which the TWE-A/N Final Adjusted Value exceeds the TCI Final Adjusted Value, or (B) TWE-A/N
LP shall contribute to the Partnership cash equal to the amount by which the TCI Final
Adjusted Value exceeds the TWE-A/N Final Adjusted Value, in either case as required by
Section 3.3.3 of the Contribution Agreement; and

                 (ii) either (A) TWE-A/N GP shall contribute additional cash to the Partnership in the
amount by which 1% of the TWE-A/N Final Adjusted Value exceeds 1% of the TWE-A/N Adjusted
Value, and TCI GP shall contribute additional cash to the Partnership in the amount by
which 1% of the TCI Final Adjusted Value exceeds 1% of the TCI Adjusted Value, or (B) the
Partnership shall distribute to TWE-A/N GP cash in the amount by which 1% of the TWE-A/N
Adjusted Value exceeds 1% of the TWE-A/N Final Adjusted Value, and the Partnership shall
distribute to TCI GP cash in the amount by which 1% of the TCI Adjusted Value exceeds 1% of
the TCI Final Adjusted Value.

               (c) No Partner shall be required to make additional contributions to the capital of the
Partnership unless approved by the Management Committee in accordance with Section 4.5(k).

               (d) To the maximum extent possible, borrowings from third parties in accordance with Section
3.7, rather than calls for additional capital contributions shall be utilized to meet the capital
requirements of the Partnership.

               (e) No expense incurred or service performed by any Partner prior to its admission to the
Partnership shall be considered to be a contribution or loan to or made on behalf of the
Partnership, unless the Partners shall otherwise agree.

          3.3 Capital Accounts. A separate capital account (a “Capital Account”) shall be
maintained for each Partner. Each Partner’s Capital Account shall be credited with (a) the amount
of such Partner’s capital contribution made in cash, (b) the Fair Market Value (net of liabilities
assumed or taken subject to) of all property contributed by such Partner (treating any Beneficial
Assets as if they had been contributed on the Closing Date and disregarding any subsequent actual
contribution of such Beneficial Assets and any cash flow related thereto or cash contribution in
lieu thereof pursuant to Section 7.25.2(d) of the Contribution Agreement), and (c) such Partner’s
allocated share of Net Profit of the Partnership. Each Partner’s Capital Account shall be reduced
by the amount of any cash distributions to such Partner and the Fair Market Value (net of
liabilities assumed or taken subject to) of all property distributed in kind to such Partner
(taking into account any deemed distribution of Beneficial Assets) and such Partner’s allocated
share of Net Loss of the Partnership. The Partners agree that the respective Fair Market Values
of (net of liabilities assumed or taken subject to) all

 

16

assets contributed to the Partnership (or in the case of Beneficial Assets deemed contributed)
by TCI and TWE-A/N are equal, and, accordingly, each such Partner shall receive equal Capital
Account credit for such contributions.

          3.4 Allocations of Profit and Loss. (a) Except as otherwise provided in subsection
(b) of this Section 3.4, Net Profit and Net Loss of the Partnership for any fiscal year shall be
allocated for purposes of the Capital Accounts among the Partners in accordance with their
respective Percentage Interests.

               (b) Notwithstanding Section 3.4(a):

                (i) If any fees that the Partnership pays to a Partner or an Affiliate and deducts
under Section 707 of the Code are disallowed as deductions for federal income tax purposes
and treated instead as Partnership distributions, such Partner shall be specially allocated
items of income equal to the amount of such fees, and the remaining Net Profit or Net Loss
shall be allocated pursuant to Section 3.4(a) and the other provisions of this Section
3.4(b); and

                (ii) If any interest payment that the Partnership makes and deducts in respect of its
debt is disallowed as a deduction for federal income tax purposes and treated instead as a
Partnership distribution to a Partner, such Partner shall be specially allocated items of
income equal to the amount of such interest payment, and the remaining Net Profit or Net
Loss shall be allocated pursuant to Section 3.4(a) and the other provisions of this Section
3.4(b).

                (iii) Nonrecourse deductions shall be allocated in the same manner as Net Losses are
allocated pursuant to Section 3.4(a). Partner Nonrecourse Deductions shall be allocated in
accordance with the § 704(b) Treasury Regulations to those Partners bearing (or who,
because of their relationship to one or more Persons who bear such economic risk of loss,
are deemed to bear) the economic risk of loss for the liability. The allocation of
liabilities to a property, the amounts of Nonrecourse Deductions and Partner Nonrecourse
Deductions, the effect of property revaluations and all other issues affecting the
allocations of Nonrecourse Deductions and Partner Nonrecourse Deductions will be determined
in accordance with the § 704(b) Treasury Regulations.

               (c) Notwithstanding the general rule on allocations of Net Profit stated in Section 3.4(a), if
there is a net decrease in Partnership Minimum Gain for any fiscal year of the Partnership, each
Partner will be allocated items of income and gain for such fiscal year equal to such Partner’s
share of the net decrease in Partnership Minimum Gain. If there is a net decrease in Partner
Minimum Gain for any fiscal year, each Partner having a share of such Partner Minimum Gain will be
allocated items of income and gain equal to such Partner’s share of such net decrease in Partner
Minimum Gain. The determination of net decreases in Partnership Minimum Gain and Partner Minimum
Gain, allocations of such net decreases, exceptions to minimum gain

 

17

chargebacks and all other issues affecting the allocation of minimum chargeback requirements
will be determined in accordance with the § 704(b) Treasury Regulations.

               (d) Notwithstanding the general rule on allocations of Net Profit and Net Loss stated in
Section 3.4(a), no Limited Partner shall be allocated in any fiscal year of the Partnership any Net
Loss to the extent such allocation would cause or increase a deficit balance in such Partner’s
Adjusted Capital Account, taking into account all other allocations to be made for such year
pursuant to this Section 3.4 and the reasonably expected adjustments, allocations and distributions
described in § 1.704-1(b)(2)(ii)(d) of the Treasury Regulations. Any such Net Loss that would be
so allocated to such Limited Partner shall instead be allocated to the General Partners in
proportion to their Percentage Interests. Moreover, if a Limited Partner unexpectedly receives an
adjustment, allocation or distribution described in § 1.704-1(b)(2)(ii)(d) of the Treasury
Regulations which creates or increases a deficit balance in such Partner’s Adjusted Capital Account
(computed after all other allocations to be made for such year pursuant to this Section 3.4 have
been tentatively made as if this Section 3.4(d) were not in this Agreement), the Limited Partner
shall be allocated items of income and gain in an amount equal to such deficit balance. This
Section 3.4(d) is intended to comply with the qualified income offset requirement of §
1.704-1(b)(2)(ii)(d) of the Treasury Regulations and shall be interpreted consistently therewith.

               (e) Notwithstanding the general rule on allocations of Net Profit and Net Loss stated in
Section 3.4(a), the allocations set forth in Sections 3.4(b)(iii), 3.4(c) and 3.4(d) (the
“Regulatory Allocations”) shall be taken into account in allocating items of income, gain,
deduction and loss among the Partners so that, to the extent possible, the net amount of such other
items and the Regulatory Allocations to each Partner shall be equal to the net amount that would
have been allocated to each such Partner if the Regulatory Allocations had not occurred.

               (f) The following allocation rules shall apply for income tax purposes:

                (i) Except as otherwise provided herein, all items of Partnership income, gain,
deduction and loss shall be allocated among the Partners in the same proportion as they
share in the Net Profit and Net Loss to which such items relate;

                (ii) Any credits against income tax shall be allocated in accordance with the
Partners’ Percentage Interests;

                (iii) Income, gain, loss or deductions of the Partnership shall be allocated among
the Partners in accordance with Section 704(c) of the Code and the Treasury Regulations
promulgated thereunder, so as to take account of any difference between the adjusted basis
of the assets of the Partnership and their respective Gross Asset Values in accordance with
the traditional method set forth in § 1.704-3(b) of the Treasury Regulations;

 

18

                (iv) Any recapture of depreciation or amortization shall be allocated among the
Partners in accordance with the principles set forth in § 1.1245-1(e) of the Treasury
Regulations; and

                (v) If any investment credit is recaptured for tax purposes, such investment credit
recapture shall be allocated (A) among the Partners in the proportion that the investment
credit being recaptured was allocated or (B) if the investment credit being recaptured was
taken as a credit by a Partner with respect to contributed property prior to the
contribution thereof to the Partnership, to such Partner.

          3.5 Distributions.

               (a) Except as provided in Section 3.2(b)(ii), no Partner shall have the right to withdraw any
amount from its Capital Account, or to receive any distribution, without the approval of the
Management Committee. Except as otherwise provided in Articles VII and VIII, no Partner shall have
the right to demand or receive a distribution of property other than cash from the Partnership.

               (b) Subject to the restrictions of the Senior Credit Agreement and any other contractual
restrictions (including any restriction contained in any promissory note or other instrument
evidencing a loan from a Partner to the Partnership) to which the Partnership is subject, the
Management Committee may, from time to time, distribute cash to the Partners in amounts that it
determines are in excess of the amounts reasonably necessary for the continued efficient operation
of the business of the Partnership. Any such distributions shall be made in accordance with the
Partners’ Percentage Interests at the time of the distribution. The Partnership shall repay
principal and accrued interest on subordinated loans made by the Partners to the Partnership prior
to making any cash distributions to the Partners.

               (c) Notwithstanding anything to the contrary herein, but subject to the restrictions of the
Senior Credit Agreement and any other contractual restrictions (including any restriction contained
in any promissory note or other instrument evidencing a loan from a Partner to the Partnership) to
which the Partnership is subject, the Partnership shall, not later than sixty days after the end of
each fiscal year, make annual distributions to the Partners to pay income tax liabilities related
to the taxable income of the Partnership’s operations. The aggregate amount of each such annual
distribution shall be determined by the General Manager based on its reasonable estimate of the
total income tax liability of the Partnership (the “Estimated Tax Amount”) that would arise based
on the Effective Tax Rate if the Partnership were a taxpaying entity. Each Partner’s share of the
Estimated Tax Amount for a fiscal year shall equal the Estimated Tax Amount for such fiscal year
multiplied by such Partner’s Percentage Interest as of the last day of such fiscal year. The
General Manager shall provide to each Partner at the time of distribution of the Estimated Tax
Amount a schedule showing the calculation of the Estimated Tax Amount including the Effective Tax
Rate used by the General Manager in determining such Estimated Tax Amount.

 

19

          3.6 Beneficial Assets. The Partnership shall (and the Partners shall not, except as
Partners of the Partnership) report, for Federal income tax purposes, the income, gain, deduction
and loss with respect to the Beneficial Assets. In the event that, pursuant to a Final
Determination, the Partnership is treated as not the beneficial owner of any of the Beneficial
Assets prior to the actual contribution of such Beneficial Assets to the Partnership, to the extent
necessary, appropriate adjustments shall be made to the distributions provided for in Section 3.5
so as to place the Partnership and the Partners in the same positions they would have been in had
the Partnership’s lack of beneficial ownership of such Beneficial Assets been taken into account
originally.

          3.7 Partnership Debt. To refinance certain indebtedness assumed by the Partnership in
connection with the transfer and contribution of assets and properties pursuant to the Contribution
Agreement and to finance the working capital needs of the Partnership, the Partnership shall enter
into the Senior Credit Agreement. The terms of the Senior Credit Agreement and any renewal,
extension, modification or refinancing of the Senior Credit Agreement shall require the unanimous
approval of the General Partners. Each Partner agrees to use its reasonable best efforts to
furnish such certificates, resolutions, legal opinions or other documents as may be reasonably
required from time to time to enable the Partnership to borrow funds under the Senior Credit
Agreement. The Partnership shall, immediately after the Closing and on the same day that Closing
occurs, discharge in full all of the TWE-A/N Indebtedness and all of the TCI Indebtedness.

ARTICLE IV

PARTNERS; MANAGEMENT OF THE PARTNERSHIP

          4.1 Power of Partners.

               (a) The Partners shall have the power to exercise any and all rights or powers granted to the
Partners pursuant to the express terms of this Agreement. Except as otherwise specifically
provided by this Agreement or required by the Act, no Partner shall have the power to act for or on
behalf of, or to bind, any other Partner or the Partnership. Each Partner agrees to indemnify and
hold each other Partner harmless from and against any and all claims, demands, costs, damages,
losses, liabilities, joint and several, expenses of any nature (including reasonable attorneys’,
accountants’ and experts’ fees and disbursements), judgments, fines, settlements and other amounts
(collectively, “Damages”) incurred by or against such other Partner and arising out of or resulting
from any action taken by the indemnifying Partner in violation of the immediately preceding
sentence.

               (b) Subject to the terms of this Agreement, the management and control of the Partnership’s
business shall be vested in the General Partners and shall be exercised by the General Partners
through the Management Committee as provided herein. The Limited Partners shall not exercise any
management or control of the Partnership’s business except to the extent provided herein, and shall
not be liable for any

 

20

debts, liabilities or obligations of the Partnership or any of the losses thereof except to
the extent otherwise required by law.

          4.2 Management Committee. There is hereby established a management committee (the
“Management Committee”) of six members to have and exercise final authority with respect to the
affairs of the Partnership specified in this Agreement. The initial membership of the Management
Committee shall be designated by the General Partners on or prior to the date hereof, and shall
consist of three members designated by TWE-A/N GP and three members designated by TCI GP. Each
General Partner may, at any time, remove its representative(s). Upon such removal, or the death or
resignation of a member of the Management Committee, a successor shall be designated by the General
Partner that appointed the Management Committee member being replaced. Each member of the
Management Committee shall be entitled to cast one vote on all matters submitted for Management
Committee approval.

          4.3 Chairman of the Management Committee. A Chairman of the Management Committee
shall be appointed from among the members of the Management Committee. The initial Chairman shall
be designated by TWE-A/N GP and shall serve until December 31, 1999. Thereafter each Chairman
shall serve a term of one year and TCI GP, on the one hand, and TWE-A/N GP, on the other hand,
shall have the right, each alternating with the other, to appoint the Chairman to serve during
successive one-year terms. The Chairman shall conduct the meetings of the Management Committee,
shall provide a secretary to the Management Committee and shall oversee the preparation and
circulation of notices, if required, agendas and minutes.

          4.4 Meetings of the Management Committee.

               (a) The initial meeting of the Management Committee shall take place at such time and place
as the Partners shall agree. The Management Committee may establish meeting dates and requisite
notice requirements, adopt rules of procedure it deems consistent herewith, and meet by means of
telephone, conference telephone or similar communications equipment by which all members may be
heard by all other members participating in such meeting.

               (b) Other meetings of the Management Committee shall be held at such times as the Management
Committee members shall from time to time determine or at the request of any Management Committee
member.

               (c) Unless otherwise determined by the Management Committee, written notice shall be given to
each Management Committee member for each meeting of the Management Committee, which notice shall
state the place, date and time of such meeting. Notice of each such meeting shall be given to each
Management Committee member not later than three days before the day on which such meeting is to be
held. A written waiver of notice, signed by the Management Committee member entitled to notice,
whether before or after the time of the meeting referred to in such waiver, shall be deemed
equivalent to notice. Neither the business to be transacted at, nor the purpose of any meeting of
the Management Committee need be specified in any

 

21

written waiver of notice thereof. Attendance of a Management Committee member at a meeting of
the Management Committee shall constitute a waiver of notice of such meeting, except as provided by
law.

               (d) The General Partners or Management Committee may hold meetings at the Partnership’s
principal place of business or such other place as the General Partners or Management Committee
members may mutually agree.

               (e) The presence at any meeting of one member designated hereunder by TCI GP and one member
designated by TWE-A/N GP shall constitute a quorum for the taking of any action. Any General
Partner may appoint a proxy to act on his behalf and to vote in his stead at any meeting.

               (f) Any action required or permitted to be taken by the Management Committee must be by
unanimous written consent of all members or by the unanimous vote of all Management Committee
members present at a meeting, in person or by proxy, at which a quorum exists.

               (g) Minutes of each meeting of the Management Committee shall be prepared and circulated to
the Management Committee members. Upon their adoption by the Management Committee, minutes shall
be filed in the principal office of the Partnership. Written consents to any action taken by the
Management Committee without a meeting shall also be filed with the minutes.

               (h) A designee of the General Manager shall attend the meetings of the Management Committee
unless otherwise requested by the Management Committee and shall provide such reports with respect
to the Systems and the business of the Partnership as may be requested by the Management Committee.

          4.5 Actions Requiring Approval of the Management Committee. Except as contemplated in
the then-effective Annual Budget, the Partnership shall not, and the General Partners shall not
permit the Partnership to, take any of the following actions without first obtaining the consent of
the Management Committee in accordance with Section 4.4(f):

               (a) subject to the limitations set forth in Section 4.5(b), enter into any transaction or
series of related transactions involving the sale, pledge or encumbrance of any assets of the
Partnership having a book value of in excess of $10,000,000, or in exchange for consideration in
excess of $10,000,000;

               (b) enter into any transaction involving the sale, exchange, transfer or other disposition of
any of the TCI Assets or TWE-A/N Assets other than sales, exchanges, transfers or other
dispositions which (i) when added to all other sales, exchanges, transfers or other dispositions of
TCI Assets, would not cause the aggregate Gross Asset Value of all TCI Assets sold, exchanged,
transferred or otherwise disposed of to exceed $1,500,000, (ii) when added to all other sales,
exchanges, transfers or other dispositions of TWE-A/N Assets, would not cause the aggregate Gross
Asset Value of all

 

22

TWE-A/N Assets sold, exchanged, transferred or otherwise disposed of to exceed $1,500,000, or
(iii) occur pursuant to Articles VII and VIII; provided that the consent of the Management
Committee members designated by TWE-A/N GP shall not be required pursuant to this clause (b) to
sell, exchange, transfer or otherwise dispose of any TCI Assets and the consent of the Management
Committee members designated by TCI GP shall not be required pursuant to this clause (b) to sell,
exchange, transfer or otherwise dispose any of the TWE-A/N Assets;

               (c) make distributions of cash or other property to the Partners, except as provided in
Section 3.5 and Articles VII and VIII;

               (d) enter into any material transaction or agreement, or any material amendment to any such
material agreement, between the Partnership and a Partner or an Affiliate of a Partner, except (i)
any such transaction or agreement entered into in the ordinary course of business and on an
arm’s-length basis or (ii) as contemplated by this Agreement, the Management Agreement or the
Contribution Agreement;

               (e) enter into any transaction involving the borrowing of funds or the incurrence of debt
(including the issuance of debt securities) by the Partnership, except as necessary to operate the
Partnership in the ordinary course of business in accordance with the then-effective Annual Budget;

               (f) adopt any proposed annual budget or modify or materially deviate from the then-effective
Annual Budget (it being understood that (i) for fiscal 1999 and fiscal 2000, the making of capital
expenditures and operating expenditures not exceeding 110% of the amount budgeted therefor in the
then-effective Annual Budget shall not be considered a material deviation from such Annual Budget
for purposes of this Section 4.5(f); and (ii) for each fiscal year thereafter, the making of
capital expenditures and operating expenditures not exceeding 110% and 105%, respectively, of the amount budgeted therefor in the then-effective Annual
Budget shall not be considered a material deviation from such Annual Budget for purposes of this
Section 4.5(f));

               (g) adopt or change a significant tax or accounting practice or principle of the Partnership;

               (h) enter into any transaction of merger, consolidation, amalgamation, or other form of
business combination, conversion, or liquidation, winding-up or dissolution of the Partnership;

               (i) admit new Partners, except pursuant to the terms of Article VII;

               (j) enter into any transaction or series of related transactions involving the acquisition of
assets, property or equity interests for consideration in excess of $25,000,000 for each
transaction or series of related transactions;

 

23

               (k) require that the Partners make additional capital contributions;

               (l) make any fundamental change in the business of the Partnership described in Section 2.3;

               (m) enter into any programming agreement or similar agreement with any Affiliate of a Partner,
except as contemplated by the Contribution Agreement or any agreement for the carriage of
programming services of Affiliates of the General Manager to the extent provided for in or
permitted by the Management Agreement;

               (n) redeem any Interest (or portion thereof) of any Partner;

               (o) remove or replace the General Manager of the Partnership, except as set forth in Sections
7.1 and 7.2(d);

               (p) commence or settle any material litigation against unaffiliated third parties; it being
understood, for example, that the foregoing shall not limit the right of the Partners that are not
Affiliates of the General Manager to commence and settle litigation on behalf of the Partnership,
but at their own cost and expense, against the General Manager for any breach by the General
Manager of its obligations under the Management Agreement (provided that such Persons shall be
entitled to reimbursement of such costs and expenses, and shall be obligated to reimburse the costs
and expenses of the General Manager in connection therewith, in each case to the same extent that
the Partnership would have been so entitled or obligated under the terms of the Management
Agreement had the Partnership brought such an action on its own behalf);

               (q) enter into any amendment to the Management Agreement; and

               (r) enter into, conduct, engage in or participate in the business of providing or engaging in
any Internet Backbone Service over the TCI Systems or obtain or acquire any record or beneficial
equity interest in any Person which conducts, engages in or participates in any Internet Backbone
Service.

          4.6 General Manager. The Partners hereby ratify, approve and adopt, as of the
Closing, the Management Agreement, and agree to designate, as of the Closing, TWC as general
manager of the Partnership (“General Manager”), with responsibility, during the term of the
Management Agreement, for the day-to-day management and operation of the Systems and such other
activities of the Partnership as may be provided for in the Management Agreement or delegated to
the General Manager by the Management Committee. The General Manager shall be empowered to take
all actions on behalf of the Partnership as it deems necessary or advisable in connection with the
management and operation of the Systems without obtaining the prior approval of the Management
Committee; provided that the General Manager shall act in full accordance with the terms of the
Management Agreement and the decisions of the Management

 

24

Committee pursuant to Section 4.5 and shall have no authority to take any action requiring
Management Committee approval without first obtaining such approval. Without limiting the
generality of the foregoing, the Partners acknowledge and agree that the General Manager, on behalf
of the Partnership, will have the exclusive right and power to make all decisions regarding the
rebuild and upgrade of the Partnership’s Systems up to 750 MHz (subject to Section 7.24 of the
Contribution Agreement), the timing and implementation of digital services, the timing and
implementation of internet access or other internet protocol-based services (subject to Section
6.4(a)), the ad sales business and the doing business name of the Partnership. Prior to the
Closing, TWE-A/N GP and TCI GP, acting jointly, shall be responsible for, and shall undertake, all
matters and actions that otherwise would be the responsibility of, and would be undertaken by, the
General Manager as contemplated by this Agreement and the Management Agreement.

          4.7 Officers and Employees. The General Manager shall have the authority to appoint
such officers of the Partnership and employees of TWE-A/N furnished to the Partnership as it shall
deem necessary or advisable. All such officers and employees shall have such authority and perform
such duties as may be specified from time to time by the General Manager. The General Manager
shall have the authority to establish all guidelines pertaining to the employment of officers of
the Partnership and employees of TWE-A/N furnished to the Partnership, including guidelines
pertaining to the term of office or employment, resignation, removal and compensation.

          4.8 Partner’s Services and Expenses. The Partnership shall reimburse each Partner for
all direct, out-of-pocket costs and expenses incurred after the formation of the Partnership by
such Partner on behalf of and for the benefit of the Partnership; provided, however, that, except
with respect to any reimbursement required pursuant to Section 6.9, such expenditure shall have
been approved by the other Partners prior to incurrence and that no Partner shall be reimbursed for
any of its overhead or general administrative expenses attributable to the operation of the
Partnership nor shall salaries, fees, commissions or other compensation be paid by the Partnership
to any Partner or to any Affiliate of any Partner for services rendered to the Partnership (other
than the fees, reimbursable expenses or other amounts payable to the General Manager pursuant to
the Management Agreement and fees, reimbursable expenses or other amounts payable to any Partner or
any Affiliate of any Partner pursuant to any agreement entered into between the Partnership, or the
General Manager on behalf of the Partnership, and such Partner or Affiliate of such Partner in
accordance with the terms of this Agreement, the Management Agreement or the Contribution
Agreement). Reimbursement under this Section 4.8 shall be made within thirty days after the
Partnership’s receipt of written notice from a Partner which has incurred a reimbursable cost or
expense.

          4.9 Annual Budget. Pursuant to the Contribution Agreement the Partners will have
agreed to the initial budget (the “Initial Budget”) of the Partnership at or prior to Closing. No
later than 60 days prior to the expiration of fiscal 1999 and each fiscal year thereafter, the
General Manager shall propose an annual budget for the Partnership with respect to the next
succeeding fiscal year (the Initial Budget and each

 

25

such annual budget adopted thereafter by the Management Committee and in effect from time to
time in accordance herewith, an “Annual Budget”), and shall submit the proposed Annual Budget to
each member of the Management Committee for approval in accordance with Section 4.5. If approval
of any proposed annual budget is withheld or delayed for any reason, the most recently adopted
Annual Budget shall govern, adjusted for inflation, based on the change in the Consumer Price Index
from the January of the fiscal year for which such Annual Budget was initially adopted to the
January of the current fiscal year, based on a business-as-usual assumption, and taking into
account salary and benefit increases granted in the ordinary course of business consistent with
past practice and increases in capital expenditures and operating expenditures due to franchise and
legal requirements, ongoing projects (including franchise and other contractual commitments and
cost escalation provisions) and other matters determined by the General Manager in accordance with
Section 3(c)(x) of the Management Agreement, until an Annual Budget for the current fiscal year is
approved.

 

26

ARTICLE V

BOOKS AND RECORDS; REPORTS TO PARTNERS

          5.1 Books and Records.

               (a) The Management Committee shall keep or cause to be kept all necessary books and records of
the Partnership’s affairs, in which shall be entered the transactions of the Partnership. The
Partnership’s books shall be audited annually by a firm of independent certified public accountants
selected from time to time by the General Manager. The costs of such audit shall be borne by the
Partnership.

               (b) The books and records shall be maintained at the principal office of the Partnership or
the General Manager, and shall be open to the inspection and examination of the Partnership or its
representatives, including any member of the Management Committee, at any reasonable time. The
books of account shall be kept on an accrual basis in accordance with generally accepted accounting
principles consistently applied.

          5.2 Financial Statements. The Partnership shall cause the General Manager to deliver,
or cause to be delivered, to each Partner the following information and financial statements:

               (a) Within twenty-one days after the close of each of the first three quarterly accounting
periods in each fiscal year (i) a preliminary unaudited consolidated statement of Partners’ equity,
(ii) a preliminary unaudited consolidated income statement of the Partnership for such year to date
period, (iii) a preliminary unaudited consolidated balance sheet of the Partnership as of the end
of such quarterly period, (iv) a preliminary unaudited consolidated statement of cash flows for
such year to date period, all prepared in accordance with generally accepted accounting principles
consistently applied by the Partnership, subject to year-end adjustments, and except for any
inconsistencies explained in such statement and for the absence of footnotes, and (v) within thirty
days thereafter, any material adjustments to the above referenced preliminary financial statements.

               (b) Within forty-five days after the close of each fiscal year (i) a preliminary unaudited
consolidated statement of Partners’ equity, (ii) a preliminary unaudited consolidated income
statement of the Partnership for such fiscal year, (iii) a preliminary unaudited consolidated
balance sheet of the Partnership as of the end of such fiscal year,
and (iv) a preliminary unaudited statement of cash flows of the Partnership for such fiscal year.

               (c) Within eighty days after the close of each fiscal year (i) a consolidated statement of
Partners’ equity of the Partnership for such fiscal year, (ii) a consolidated income statement of
the Partnership for such fiscal year, (iii) a consolidated balance sheet of the Partnership as of
the end of such fiscal year, and (iv) a consolidated statement of cash flows of the Partnership for
such fiscal year, all prepared in accordance

 

27

with Regulation S-X and generally accepted accounting principles consistently applied, except
for any inconsistencies explained therein, and accompanied by a report thereon of the Partnership’s
independent accountants.

               (d) Within thirty days after the close of each calendar month (i) an unaudited consolidated
income statement of the Partnership for such calendar month complete with year-to-date comparisons
to budget and, commencing with the statement delivered with respect to the first full month
following the first anniversary of the Closing, the corresponding period of the prior year, and
(ii) an unaudited report of actual capital expenditures for the month and year-to-date, as compared
to budgeted capital expenditures.

               (e) Within thirty days after the close of each calendar month a report setting forth for such
calendar month and with respect to the CATV systems operated by the Partnership the following
information: (i) the cumulative number of households having access to such Systems, (ii) the
number of basic subscribers to such Systems, (iii) the number of subscribers to each pay television
service, and (iv) the number of plant miles.

          5.3 Bank Accounts. The Partnership shall maintain bank accounts in such banks or
institutions as the General Manager from time to time shall select, and such accounts shall be
drawn upon by check signed by such person or persons, and in such manner, as may be designated by
the General Manager. All moneys of the Partnership shall be deposited in the bank account or
accounts of the Partnership.

          5.4 Tax Returns and Information.

               (a) The “tax matters partner” (as such term is defined in Section 6231(a)(7) of the Code) of
the Partnership shall be TWE-A/N GP. All elections by the Partnership for income and franchise tax
purposes and all determinations regarding depreciation or amortization and all other matters
relating to all tax returns (including amended returns) filed by the Partnership, including tax
audits and related matters and controversies, shall be made and conducted by the tax matters
partner. This provision shall survive any termination of this Agreement.

               (b) The General Manager shall prepare and timely file with the appropriate authorities all
income and other required federal, state and local tax returns for the Partnership, and shall
provide the Partners with copies of the income tax returns promptly after such filings are made.
All other filings shall be made available to the Partners upon request.

               (c) The General Manager shall use reasonable efforts to submit a draft of any such tax return
contemplated in Section 5.4(b) to each Partner for review and approval no later than the earlier of
(i) 30 days prior to the required filing date (as such date may be extended) and (ii) June 30 of
each year, unless otherwise agreed to by the Partners.

 

28

               (d) The General Manager shall provide to each Partner preliminary and estimated information
concerning the Partnership’s taxable income or loss and each class of income, gain, loss, deduction
or credit which is relevant to reporting a Partner’s share of Partnership income, gain, loss,
deduction or credit for purposes of federal or state income tax. Such information shall be
furnished to the Partners as soon as possible after the close of the Partnership’s fiscal year and,
in any event, no later than the earlier of (i) 135 days after the end of the fiscal year and (ii)
the date on which the income tax return for such fiscal year is submitted to the Partners for
review pursuant to Section 5.4(c).

          5.5 Fiscal Year. The fiscal year of the Partnership shall end on the 31st day of
December in each year. The Partnership shall have the same fiscal year for income tax purposes and
for financial and accounting purposes.

ARTICLE VI

CERTAIN AGREEMENTS

          6.1 Other Businesses of the Partners. Except as otherwise provided in Section 6.2, a
Partner and any Affiliate thereof may engage in or possess an interest in other business ventures
of any nature or description, independently or with others, similar or dissimilar to the business
of the Partnership, and the Partnership and the other Partners shall have no rights by virtue of
this Agreement in and to such independent ventures or the income or profits derived therefrom, and
the pursuit of any such venture, even if competitive with the business of the Partnership, shall
not be deemed wrongful or improper, and no Partner or Affiliate thereof shall be obligated to
present any particular investment opportunity to the Partnership even if such opportunity is of a
character that, if presented to the Partnership, could be taken by the Partnership, and any Partner
or Affiliate thereof shall have the right to take for its own account (individually or as a
partner, shareholder, fiduciary or otherwise) or to recommend to others any such particular
investment opportunity.

          6.2 Non-Competition.

               (a) For so long as any Person is a Partner of the Partnership, and for one year thereafter,
such Person shall not (and shall cause its Cable Affiliates not to) engage in (or seek to engage
in) the business of acquiring, owning, financing, investing in, maintaining, operating or managing
cable television systems, SMATV, MMDS, LMDS (and other similar systems) for the distribution of
multi-channel video programming, other than direct broadcast satellite services to retail
customers, in each case serving a municipality listed on Schedules 1 or 2 or the portion of a
county listed on Schedules 1 or 2 that is served by the Partnership’s Systems (other than the
business of acting as General Manager) (the “Business”) or acquire or invest in (or seek to acquire
or invest in) any Person engaged in the Business other than through the Partnership or its
Subsidiaries.

               (b) Notwithstanding the foregoing:

 

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                    (i) the provisions of Section 6.2(a) shall terminate upon the termination of the
Partnership due to an Event of Termination, provided that, in the event the Partnership is
terminated as a result of any Event of Default, the provisions of Section 6.2(a) shall
continue for one year after such date of termination with respect to the Partner, or Cable
Affiliate thereof, whose act or failure to act resulted in such Event of Default;

                    (ii) any Partner (or Cable Affiliate thereof) may, without breaching the provisions of
Section 6.2(a), own and invest in any securities of any Person whose common equity
securities are registered pursuant to Sections 12(b) or 12(g) of the Securities Exchange
Act of 1934, as amended, provided that such Partner and its Cable Affiliates (A) do
not Control such Person and (B) do not own, in the aggregate, more than 5% of the common
equity securities of such Person;

                    (iii) any Partner (or Cable Affiliate thereof) may, without breaching the provisions
of Section 6.2(a), own, invest in or otherwise engage in any Business in which the
Partnership is precluded from engaging (by rule, regulation, law, order, judgment, decree
or contract) by virtue of the Partnership’s affiliation with any of the other Partners
(other than such Partner’s Related Partner);

                    (iv) any Partner (or Cable Affiliate thereof) may, without breaching the provisions of
Section 6.2(a), own any Beneficial Assets to the extent contemplated by the Contribution
Agreement;

                    (v) in the event that any Person breaches the provisions of Section 6.2(a) by virtue
of an investment in another Person that engages in the Business (a “Competing Business”),
then, provided that the annual revenues derived from such Competing Business are less than
10% of the total revenues of the Person in which such investment is made, such breaching
Person shall have a reasonable opportunity to cure such breach by disposing of the assets
comprising the Competing Business or by transferring the Competing Business, or the
economic benefits derived therefrom, to the Partnership;

                    (vi) no Partner (or Cable Affiliate thereof) shall be deemed to be in breach of the
provisions of Section 6.2(a) by virtue of any action by a Person in which such Partner (or
Cable Affiliate) has from time to time a non-Controlling investment; provided, that such
Partner or its Cable Affiliate shall have used its reasonable best efforts (including
through the exercise of any contractual or veto rights available to it or, in the case of
future investments, the negotiation of appropriate restrictions) to prevent such Person
from engaging in the Business;

                    (vii) if a Partner is required under Section 7.5(c) to continue to own a portion of
its Interest in the Partnership, the provisions of Section 6.2(a) shall cease to apply to
such Partner on the date that is one year

 

30

following the date of the earliest Transfer of any portion of such Partner’s Interest
(or the Interest of such Partner’s Related Partner) pursuant to Section 7.5(c); and

                 (viii) TCINS may continue to provide service to the Brazosport Independent School
District and Nederland Independent School District under the agreements between TCINS and
such School Districts that are to be attached to the Excess Capacity Leases.

               (c) The parties agree that the restrictions applicable to TWC under this Section 6.2 shall,
notwithstanding that TWC is a division of TWE, be binding solely upon TWC, TWC shall be deemed to
be a “stand alone” legal entity for all purposes of this Section 6.2 and the restrictions under
this Section 6.2 will not bind TWE, other than to the extent any business or assets of TWE are
included within TWC for internal reporting purposes.

          6.3 Confidentiality. Each Person that at any time is or was a Partner agrees that it
shall, and shall use its reasonable best efforts to cause its Affiliates and its and their
respective agents or representatives to, keep secret and hold in strictest confidence any and all
confidential information relating to the business of the Partnership, the other Partners and such
other Partners’ Affiliates (including any confidential information that such Person may obtain with
respect to the Cable Business and Systems (as such terms are defined in the Contribution Agreement)
of the other Partners and their Affiliates by virtue of the transactions contemplated in the
Contribution Agreement), other than the following:

               (a) information that has become generally available to the public other than as a result of a
disclosure by such Person, its Affiliates or its agents;

               (b) information that becomes available to such Person or an agent or representative of such
Person on a nonconfidential basis from a third party having no obligation of confidentiality to a
party to this Agreement and which has not itself received such information directly or indirectly
in breach of any such obligation of confidentiality;

               (c) information that is required to be disclosed by applicable law, judicial order or pursuant
to any official request by any governmental or regulatory body or any listing agreement with, or
the rules or regulations of, any securities exchange on which securities of such party or any such
Affiliate are listed or traded or which is requested or required by any regulatory body, which
asserts jurisdiction over such party; provided that the party making such disclosure or whose
Affiliates or agents or representatives are making such disclosure shall notify the other parties
and the Partnership as promptly as practicable (and, if possible, prior to making such disclosure)
and shall use its reasonable best efforts to limit the scope of such disclosure and seek
confidential treatment of the information to be disclosed;

               (d) reasonable disclosures made in good faith to a prospective Permitted Transferee in
connection with a potential Permitted Transfer; provided that

 

31

prior to any such disclosure such prospective Permitted Transferee executes a confidentiality
agreement in form and substance reasonably acceptable to the Partnership;

               (e) reasonable disclosures made in good faith to direct and indirect equity holders of a
Partner and to its and their respective lenders, accountants, attorneys and similar persons;
provided that the disclosing Partner causes such equity holders, lenders, accountants, attorneys or
similar persons to agree to be bound by the provisions of this Section 6.3;

               (f) reasonable disclosures made in good faith to @Home relating to the upgrade plans for the
TCI Systems to the extent reasonably necessary to permit the coordination of the build out and
launch of the @Home Service on the TCI Systems; and

               (g) reasonable disclosures made in good faith to ServiceCo relating to the upgrade plans for
the TWE-A/N Systems to the extent reasonably necessary to permit the coordination of the build out
and launch of ServiceCo’s Internet Services on the TWE-A/N Systems.

          6.4 Internet Services; Designated Programming Services.

               (a) The Partners hereby agree that (i)(A) @Home will be the exclusive provider of the
Exclusive Internet Services over the cable plant and equipment of the TCI Systems, and (B) the
Partnership will not, and will not permit any Person (including, without limitation, the General
Manager) other than @Home and its Controlled Affiliates (as defined in the @Home Distribution
Agreement) to, provide or distribute Exclusive Internet Services using the cable plant and
equipment of the TCI Systems, in each case without the prior written consent of TCI, and (ii) the
terms and provisions relating to the Partnership’s obligations with respect to the distribution of
the @Home Service over the TCI Systems will be as set forth in the @Home Agreement. The Partners
hereby agree that (i)(A) ServiceCo will be the exclusive provider of the Exclusive Internet
Services over the cable plant and equipment of the TWE-A/N Systems, and (B) the Partnership will
not, and will not permit any Person (including the General Manager) other than ServiceCo to,
provide or distribute Exclusive Internet Services using the cable plant and equipment of the
TWE-A/N Systems, in each case without the prior written consent of TWE-A/N, and (ii) the terms and
provisions relating to the Partnership’s obligations with respect to the distribution of the
ServiceCo’s Exclusive Internet Services over the TWE-A/N Systems will be set forth in an
affiliation agreement to be entered into by the Partnership and ServiceCo. The General Manager
shall give due and good faith consideration, based upon the best interests of the Partnership, to
the use of either @Home or ServiceCo in connection with the provision of Internet Services offered
through any other systems acquired by the Partnership. The Partnership will use its commercially
reasonable efforts to offer the @Home Service through a TCI System within a period of time
generally comparable to the period of time in which ServiceCo’s services are offered through a
TWE-A/N System, in each case after the bandwidth capacity and other technical features of such
System have been upgraded to the technological standard necessary to offer such services through
such System. If the

 

32

General Manager in good faith determines that it is in the best interests of the Partnership
to distribute ServiceCo’s services over those TCI Systems having service areas within the Houston,
Texas ADI/DMA, then the General Manager may request that TCI permit ServiceCo to be the exclusive
provider of such Internet Services over such TCI Systems in exchange for the @Home Service becoming
the exclusive provider of Exclusive Internet Services in certain mutually agreed TWE-A/N Systems.
If the Partners agree upon the terms and conditions of an arrangement to accomplish the foregoing,
then subject to the terms of such agreement, such TCI Systems will become distributors of
ServiceCo’s services as if such Systems were TWE-A/N Systems, and such TWE-A/N Systems will become
distributors of the @Home Service as if such Systems were TCI Systems, and thereafter the TWE-A/N
Systems which become distributors of the @Home Service shall become subject to the terms and
conditions of this Section 6.4(a) and the @Home Agreement.

               (b) To the extent not inconsistent with any applicable law, rule, regulation, order or
judgment, (i) the Partnership shall continue to carry on each TCI System each Designated
Programming Service that is being carried on such TCI System as of the Closing to the extent then
being carried on such TCI System and (ii) as soon as practicable during the rebuild of each TCI
System, as channel capacity becomes available, the Partnership shall carry on such TCI System the
Designated Programming Services designated with an asterisk (“*”) on Schedule 6.4(b), in each case
until the earlier of the fifth anniversary of the Closing and the termination or expiration of the
term (set forth on Schedule 6.4(b)) of the applicable affiliation agreement (each, a “Pre-existing
Affiliation Agreement”) and, with respect to WEB TV, subject to any carriage restrictions set forth
in the Pre-existing Affiliation Agreement relating to WEB TV; provided, that if carrying any
Designated Programming Service on any TCI System becomes impracticable, the General Manager may
satisfy, to the extent permitted by the applicable affiliation agreement, the Partnership’s
obligation under this Section 6.4(b) with respect to such Designated Programming Service on such
TCI System by substituting one or more other cable television systems managed by the General
Manager serving at least as many subscribers as the TCI System with respect to which carriage of
such Designated Programming Service shall have become impracticable, but only if the subscribers
served by such substitute systems are treated as being served by TCI for purposes of determining
whether TCI shall have fulfilled its obligation under the applicable Pre-Existing Affiliation
Agreement.

          6.5 Telephony Restrictions. Notwithstanding anything to the contrary in this
Agreement (and without prejudice to the Partnership’s position that, for purposes of the Sprint
Agreement, it is not an “Affiliate” of the Ultimate Parent of TCI) the Partners agree as follows:

               (a) Capitalized terms used in this Section 6.5 that appear within quotation marks shall have
the respective meanings given to such terms in the Sprint Agreement as originally executed and
without amendment or modification by the parties unless accepted in writing by each Partner other
than TCI and TCI GP. When making the covenants set forth in this Section 6.5, the Partnership is
expressly relying, among other provisions in the Sprint Agreement, on the statements set forth in
the Sprint

 

33

Agreement that (i) “Local Telephony Services” shall not include “Advanced Data Services,” the
“Non-Exclusive Services,” and the “Excluded Businesses,” and (ii) “Excluded Business” means, among
other things, the provision of entertainment and, except to the limited extent contemplated in the
definition of “Non-Exclusive Services,” other content-based services.

               (b) Prior to the earlier of (i) January 31, 1999, and (ii) such time as the Ultimate Parent of
TCI is no longer bound by restrictive terms of the Sprint Agreement, the Partnership will not offer
(or promote or package any of its products or services with or act as a sales agent for) any (A)
“Long Distance Telephony Services” or “Local Telephony Services” under the “Brand” of an “RBOC” or
an “IXC” or (B) “Non-Exclusive Services” under the “Brand” of an “IXC” or a “RBOC” packaged with
“Local Telephony Services.”

               (c) Prior to the earlier of (i) January 31, 1999, and (ii) such time as the Ultimate Parent of
TCI is no longer bound by the restrictive terms of the Sprint Agreement, the Partnership will not
make “Rights of Use” for “Local Telephony Services” available on its distribution facilities to a
third party other than “Teleport” (including its successors pursuant to the Agreement and Plan of
Merger among AT&T Corp., TA Merger Corp. and Teleport Communications Group, Inc. dated as of
January 8, 1998) without making the same facilities similarly available to Sprint Corporation in
accordance with the terms of the Sprint Agreement; provided, however, the Partnership itself may
offer “Local Telephony Services” and may make its distribution facilities available to any
“Affiliate” of the Partnership that may offer “Local Telephony Services” (in each case, subject to
the restrictions in the preceding paragraph) without in either case offering its distribution
facilities to Sprint Corporation.

               (d) Prior to the earlier of (i) January 31, 1999, and (ii) such time as the Ultimate Parent of
TCI is no longer bound by the restrictive terms of the Sprint Agreement, the Partnership will not
make “Rights of Use” available on its distribution facilities to an “RBOC” or an “IXC” for the
provision of “Advanced Data Services” without making the same facilities similarly available to
Sprint Corporation in accordance with the terms of the Sprint Agreement.

               (e) The covenants of the Partnership in Sections 6.5(b), (c) and (d) shall not apply with
respect to a “Bulk Purchaser” in circumstances where, in the reasonable judgment of the Partners,
the Partnership needs to offer to a “Bulk Purchaser” of cable television services a package of
services which include one or more “Local Telephony Services” and/or “Long Distance Telephony
Services” in order to compete with an actual or anticipated offer to such “Bulk Purchaser” by a
provider unaffiliated with the Ultimate Parent of TCI (whether facilities-based, as a reseller or
agent or otherwise) of television/telephony services and the needed service is not then available
to the Partnership from Sprint Corporation on competitive economic terms. The covenants of the
Partnership to make its distribution facilities available to Sprint Corporation, as set forth in
Section 6.5(c) and (d), shall not become applicable solely as a result of the provision of such
services to the “Bulk Purchaser.”

 

34

               (f) The Partnership’s obligations under this Section 6.5 shall be subject to any contrary
provisions of any agreements with Persons (other than the Ultimate Parent of TCI or a Controlled
Affiliate of the Ultimate Parent of TCI) to which the TWE-A/N Systems are subject prior to the time
such Systems were contributed by TWE-A/N and TWE-A/N GP or otherwise acquired by the Partnership.

          6.6 Excess Inventory. To the extent reasonably practicable, the Partnership shall
purchase new and unused materials for the rebuild of the TCI Systems from TCI or one or more
Affiliates of TCI at purchase prices equivalent to the values carried on TCI’s or such Affiliate’s
balance sheet; provided that (a) such prices and the other terms of purchase (including warranties)
are no less favorable to the Partnership than those available to the Partnership from any vendor of
such materials, (b) the materials are of the type the General Manager reasonably desires to utilize
in the rebuild of the TCI Systems, and (c) such materials shall be of a quality that is equal to or
greater than the quality of materials available from any vendor.

          6.7 Partner Buying Power. Each Partner shall use its reasonable best efforts to make
available to the Partnership, and to the General Manager for the benefit of the Partnership, its
buying power, without profit or commission, in connection with the acquisition, development,
maintenance and operation of the assets and properties that comprise the Systems.

          6.8 Time Warner Social Contract. Each Partner acknowledges that the TWE-A/N Systems
are, and will continue to be, within the provisions of the Social Contract for Time Warner Cable
entered into with the Federal Communications Commission (the “FCC”) by TWE-A/N, TWE and TWI Cable
Inc. (the “Social Contract”). The Partners further acknowledge and agree that, subject to Section
7.24 of the Contribution Agreement, the General Manager, on behalf of the Partnership, will have
the exclusive right and power to make all decisions regarding all matters arising under or with
respect to the Social Contract, including the decision to include one or more of the TCI Systems
within the provisions of the Social Contract. If and when the General Manager decides that any of
the TCI Systems should be added to the provisions of the Social Contract, the General Manager, on
behalf of the Partnership, shall prepare and submit to the FCC a request seeking the required FCC
approval and, concurrently with the grant of such FCC approval, shall provide a copy of the Social
Contract to each local franchising authority representing a TCI System to be added to the
provisions of the Social Contract. Notwithstanding the foregoing, if the Partnership is required
to distribute to TCI or TCI GP one or more Systems that have been included within the provisions of
the Social Contract, TCI or TCI GP shall have the right to elect not to have the provisions of the
Social Contract continue to apply to any such System from and after the date of such distribution.
If TCI or TCI GP irrevocably elects not to have the provisions of the Social Contract continue to
apply to any such System, then (a) TWE-A/N, with the cooperation of the General Manager, shall use
its commercially reasonable efforts to take such steps as may be required of the General Manager to
exclude such System from the Social Contract from and after such date of distribution, (b) as soon
as reasonably practicable after such date of distribution, TCI and TCI GP (i) shall give each

 

35

“Cable Programming Service Tier” subscriber of such System as of such date of distribution
(the “CPST Subscribers”) any refund (in the form of a prospective bill credit) that such CPST
Subscriber may be eligible to receive pursuant to the Social Contract, (ii) shall reflect such
prospective bill credit on a regular monthly billing statement by TCI or TCI GP and (iii) shall
describe such bill credit as the refund required and calculated pursuant to the Social Contract,
and (c) TWE-A/N shall reimburse TCI for one-half of the aggregate amount of any such refunds to the
extent relating to the period of time through such date of distribution.

          6.9 Furnishing of Employees by TWE-A/N.

               (a) TWE-A/N shall furnish to the Partnership the services of individuals (the “Personnel”) to
conduct the business of the Partnership, upon the terms and conditions set forth in this Agreement,
the Contribution Agreement and the Management Agreement. All Personnel shall be employees of
TWE-A/N and not of the Partnership. The General Manager shall recruit, select, employ, promote,
terminate, supervise, direct, train and assign the duties of all Personnel, and may change or
replace any such individual at any time, in each case in its sole discretion.

               (b) The Partnership shall pay to TWE-A/N or its Affiliates, if appropriate, on a current basis
(or, if applicable, not later than the 10th day following an Event of Termination), an aggregate
amount equal to the sum of the items listed below:

                (i) the gross wages (including payroll taxes) of all Personnel providing services to
the Partnership for the quarter;

                (ii) TWE-A/N’s identifiable, indirect, administrative costs directly attributable to
the Personnel providing services to the Partnership for the relevant period;

                (iii) the cost of workers’ compensation insurance incurred by TWE-A/N with respect to
the Personnel for the relevant period;

                (iv) an amount equal to TWE-A/N’s expense for employee benefit plans on behalf of any
Personnel, including pension, savings, medical, dental, vision, disability and life
insurance made during the relevant period;

                (v) an amount equal to TWE-A/N’s payments for other benefits, including fringe
benefits, the employee assistance program, sick leave, adoption assistance and educational
assistance;

                (vi) a reasonably allocated portion of TWE-A/N’s overhead expense for Personnel and
all other individuals providing direct support services (such as payroll, accounts payable
and human resource functions) to the Partnership, including expenses related to payroll
accounting and benefit management for the relevant period;

 

36

                (vii) all incremental identifiable, direct costs related to the plans or programs
listed in Section 3(c)(xvi) of the Management Agreement, including incremental costs of
charges or premiums, employee participation, or actuarial reports; and

                (viii) all other costs and expenses incurred by TWE-A/N or its Affiliates and
attributable to the Personnel providing services to the Partnership.

               (c) Upon exercise by any member of the Personnel (each, an “Eligible Option Holder”) of
employee options to purchase securities of Time Warner Inc. or any of its Affiliates (“TWX
Securities”), the Partnership shall pay to TWE-A/N for each share of stock or each $1,000 principal
amount of debt securities, as the case may be (such share or $1,000 principal amount being referred
to herein as a “unit” of TWX Securities), issuable upon exercise of such options an amount equal to
the excess of (i) the Closing Price of a unit of such TWX Securities as of the date of exercise,
over (ii) either (A) for options issued prior to the Closing Date, the greater of (1) the exercise
price paid by such Eligible Option Holder for each such unit of TWX Securities and (2) the Closing
Price of a unit of such TWX Securities on the Closing Date, or (B) for options issued after the
Closing Date, the exercise price paid by such Eligible Option Holder for each such unit of TWX
Securities.

               (d) All items in Section 6.9(b) and (c) relating to expenses associated with individuals who
are employed by TWE-A/N or an Affiliate of TWE-A/N to provide less than full-time services to the
Partnership will be pro-rated based on the relative amount of time spent by such individuals in
performing the services provided to the Partnership on the one hand and the services provided to
the other businesses of TWE-A/N or such Affiliate on the other hand.

               (e) The Partnership shall indemnify TWE-A/N, any Affiliate of TWE-A/N, and any officer,
director, shareholder, partner, member, employee or agent of TWE-A/N or any Affiliate thereof, from
and against any and all Damages arising from any and all claims, demands, actions, suits or
proceedings, whether civil, criminal, administrative or investigative (collectively, “Claims”),
arising out of or otherwise related to TWE-A/N’s employment of the Personnel and the furnishing of
such Personnel to the Partnership pursuant to this Section 6.9.

               (f) TWE-A/N shall furnish to the Partnership the services of the Personnel pursuant to this
Section 6.9 in its capacity as an independent contractor, and not in its capacity as a Limited
Partner, of the Partnership. Accordingly, in furnishing the services of the Personnel to the
Partnership pursuant to this Section 6.9, TWE-A/N shall in no way be deemed to be participating in
the control of the business of the Partnership.

 

37

ARTICLE VII

TRANSFERS

          7.1 General Restrictions. Except as otherwise permitted in this Article VII, without
the express written consent of each Partner, no Partner shall Transfer, directly or indirectly, any
Interest. A Partner shall be deemed to have “indirectly” Transferred its Interest upon the
Transfer or issuance of Equity Securities of such Partner or any Parent of such Partner, unless
immediately prior to such Transfer or issuance of Equity Securities (a) the Fair Market Value of
such Partner’s Interest constituted less than 50% of the Fair Market Value of the cable television
systems owned, directly or indirectly, by the Person whose Equity Securities were Transferred or
issued and (b) the Person whose Equity Securities were Transferred or issued owned, directly or
indirectly, cable television systems serving at least one million subscribers (other than
subscribers served by cable television systems owned by the Partnership). Any such Transfer or
issuance shall be deemed to constitute a Transfer by such Partner in violation of this Agreement
and shall be void ab initio, and the Partnership shall not recognize any such
Transfer. Without limiting the generality of the foregoing, the rights of a Partner hereunder are
personal to it and, other than pursuant to a Permitted Transfer in compliance with the provisions
of this Agreement, no Partner shall (and each Partner shall cause its Affiliates not to) enter into
any agreement, arrangement or understanding, written or oral, pursuant to which it shall Transfer,
or otherwise grant to or provide any Person, directly or indirectly, with any of its rights or
interests under this Agreement. Notwithstanding the foregoing, if, as a result of the Transfer or
issuance of Equity Securities of a Partner or Parent of a Partner who is the General Manager or an
Affiliate of the General Manager that is deemed not to be an “indirect Transfer” according to the
second sentence of this Section 7.1, the General Manager and its Affiliates own, in the aggregate,
directly and indirectly, a Percentage Interest which is less than the Percentage Interest owned by
the General Manager and its Affiliates, in the aggregate, directly and indirectly, immediately
prior to such Transfer or issuance, (x) the General Partner which, immediately prior to such
Transfer, was not an Affiliate of the General Manager, shall designate itself or another qualified
Person to become, for all purposes under this Agreement and the Management Agreement, the General
Manager of the Partnership in place of the Person who was acting as General Manager at the
effective time of such Transfer or issuance, (y) the Related Partners which, immediately prior to
such Transfer or issuance, were Affiliates of the General Manager shall succeed to all of the
rights and obligations of the Related Partners who are not Affiliates of the General Manager with
respect to the General Manager under this Agreement and the Management Agreement, and (z) the
parties shall enter into appropriate transition arrangements to implement the foregoing as soon as
reasonably practicable following such Transfer or issuance.

          7.2 Permitted Transfers. Except as otherwise specified herein, the provisions of
Section 7.1 shall not apply to the following Transfers (each of which shall be deemed to constitute
a “Permitted Transfer”, and each Transferee of a Permitted Transfer of Interests shall be referred
to herein as a “Permitted Transferee”); provided that, notwithstanding any other provision of this
Agreement, (i) no Partner may Transfer less than all of its Interest (other than as provided in
Sections 7.2(b) or 7.5(c)) and (ii) no Partner may Transfer its Interest to any Person (other than
as provided in Section 7.2(b)) without also causing to be Transferred to such Person (or an
Affiliate of such Person) all

 

38

of the Interests then owned by all of such Partner’s Affiliates (including its Related
Partner):

               (a) any Transfer of Interests in accordance with the provisions of Sections 7.3, 7.4 or
8.3(b);

               (b) any Transfer of Interests to an Affiliate of TWE-A/N, TWE-A/N GP, TCI or TCI GP, provided
that prior to the occurrence of any event that will result in such Affiliate no longer being an
Affiliate of the Ultimate Parent of TWE-A/N or TCI, or the Ultimate Parent of any Permitted
Transferee pursuant to Sections 7.2(a), (c) or (d), as the case may be, such Affiliate shall
Transfer its Interest to an Affiliate of such Ultimate Parent (it being understood that the proviso
of this clause (b) shall not apply to and shall in no way be construed to prohibit any Transfer not
deemed to be an “indirect Transfer” according to the second sentence of Section 7.1) ;

               (c) any Transfer of Interests or Equity Securities by a Partner or a Parent of a Partner, if
such Transfer is in connection with the transfer to the Permitted Transferee of substantially all
of the cable television systems owned, directly or indirectly, by the Ultimate Parent of such
Partner; and

               (d) any Transfer of Interests by TWE-A/N or TWE-A/N GP or any Affiliate of either of them to
Advance/Newhouse or UMG or wholly-owned Affiliate of either of them; provided that, upon the
effective date of any Permitted Transfer of the Interests owned by TWE-A/N and TWE-A/N GP or any
Affiliate of TWE-A/N or TWE-A/N GP pursuant to this Section 7.2(d), (i) TCI GP shall designate
itself or another qualified Person to become the General Manager of the Partnership in place of TWC
for all purposes under this Agreement and the Management Agreement, (ii) any Permitted Transferee
pursuant to this Section 7.2(d) shall succeed to all of the rights and obligations of TCI GP and
TCI as Partners that are not the General Manager or Affiliates of the General Manager with respect
to the General Manager under this Agreement and the Management Agreement and (iii) the parties
shall enter into appropriate transition arrangements to implement the foregoing as soon as
reasonably practicable following such Transfer.

          7.3 Right of First Refusal.

            (a) (i) If a Partner shall receive a bona fide offer in writing (a “bona fide
offer”) from a third party or third parties which is or are not Permitted Transferee(s)
(other than pursuant to Section 7.2(a)) of such Partner (collectively, a “Third Party
Purchaser”) to purchase all (but not less than all) of such Partner’s and its Related
Partner’s Interests for cash and such Partner and its Related Partner (collectively, the
“Selling Partners”) shall propose to Transfer all of their Interests in accordance with
such bona fide offer, then the Selling Partners shall, in the manner set forth in this
Section 7.3, afford the other Partners (the “Offeree Partners”) a right of first refusal to
acquire all (but not less than all) of the Selling Partners’ Interest at the price (in
cash) and otherwise on the same terms offered to the Selling Partners by such Third Party
Purchaser.

 

39

                (ii) Upon receipt of a bona fide offer from a Third Party Purchaser, the Selling
Partners shall give notice to the Offeree Partners of their intention to sell all (but not
less than all) of their Interests to such Third Party Purchaser (an “Offer Notice”),
enclosing with such Offer Notice a complete and correct copy of the bona fide offer setting
forth all the terms thereof, including the proposed purchase price.

                (iii) Upon receipt of the Offer Notice, the Offeree Partners shall have the right
(but not the obligation) to purchase (or have one or more financially qualified designees
purchase) all of the Selling Partners’ Interests for the price (in cash), and otherwise
upon the terms and conditions, contained in the bona fide offer. The right of the Offeree
Partners shall be exercisable by written notice to the Selling Partners, with copies to the
Partnership, given within sixty days after receipt of the Offer Notice (the “Notice
Period”). Any such exercise of such first refusal rights shall constitute a binding
agreement by the Offeree Partners to purchase (or have one or more financially qualified
designees purchase) the Selling Partners’ Interests on the terms set forth in the Offer
Notice. Failure of the Offeree Partners to respond within the Notice Period shall be
regarded as a waiver of their first refusal rights hereunder.

               (b) The closing of the purchase of the Selling Partners’ Interests subscribed to by the
Offeree Partner under clause (a) above shall be held at the principal office of the Partnership no
later than the one hundred twentieth day after the date the Offer Notice was given or on such other
date as agreed by the Selling Partners and the Offeree Partners, or their designees (as such date
may be extended pursuant to Section 7.5(a)). The Offeree Partners shall deliver at the closing the
payment required hereunder in cash. At such closing, all of the parties to the transaction shall
execute such additional documents as are otherwise necessary or appropriate to effectuate the
intent of the foregoing.

               (c) In the event that the Offeree Partners do not elect to purchase or have one or more
financially qualified designees purchase all of the Selling Partners’ Interests in accordance with
Sections 7.3(a) and (b), then the Selling Partners may Transfer their Interests to the Third Party
Purchaser; provided that such Transfer is made (i) in accordance with all provisions of this
Article VII, (ii) at a price and upon other terms that are no more favorable to the Third Party
Purchaser than the price and other terms set forth in the Offer Notice, and (iii) within one
hundred eighty days after the expiration of the Notice Period.

               (d) The Selling Partners do not hereby waive any claims or remedies they may have in law or
equity against the Offeree Partners in case the Offeree Partners elect to purchase (or to cause
designees to purchase) and wrongfully fail so to purchase the Selling Partners’ Interests.

               (e) No notice may be given under this Section 7.3 while any Buy-Sell Procedure or Dissolution
Procedure is pending, or after an Event of Termination has occurred.

 

40

          7.4 Buy-Sell Procedure.

               (a) Subject to Section 7.4(j), at any time after the fifth anniversary of the Closing, either
set of Related Partners (the “Initiating Partners”) may, at their option, elect to initiate the
Buy-Sell Procedure set forth in this Section 7.4 (the “Buy-Sell Procedure”). In such event, the
Initiating Partners shall notify the other Partners (the “Non-Initiating Partners”) of their
intention to initiate the Buy-Sell Procedure. Such notice (the “Buy-Sell Notice”) shall include a
statement by the Initiating Partners of their determination of the amount that equals the gross
Fair Market Value of the Partnership’s assets and properties less the Partnership’s debts and
liabilities (and related reserves) described in clauses (i), (ii) and (iii) of Section 8.2(c) (the
“Stated Value”).

               (b) Within ninety days after receipt of the Buy-Sell Notice, the Non-Initiating Partners shall
elect one of the following three alternatives:

                (i) to purchase (or designate one or more financially qualified third parties to
purchase) the Initiating Partners’ Interests at the Buy-Sell Price (as defined below);

                (ii) to sell their Interests to the Initiating Partners (or one or more financially
qualified designees of the Initiating Partners) at the Buy-Sell Price; or

                    (iii) to initiate a Dissolution Procedure in accordance with Section 8.4, if it is
then after the seventh anniversary of the Closing.

In the case of clauses (i) and (ii) above, the “Buy-Sell Price” shall be equal to the amount each
of the Transferring Partners (as defined below) would have received in respect of their Interests
if the Partnership’s assets and properties were sold for an amount equal to the Stated Value and
the proceeds thereof were distributed to the Partners in accordance with Section 8.2(c)(iv) and
(v). The failure of the Non-Initiating Partners to notify the Initiating Partners of their
election pursuant to the first sentence of this Section 7.4(b) shall be deemed to be an election by
the Non-Initiating Partners to sell their Interests. If the Non-Initiating Partners elect or are
deemed to elect to sell their Interests pursuant to this Section 7.4(b), then such Non-Initiating
Partners shall be referred to as the “Transferring Partners” and the Initiating Partners shall be
referred to as the “Purchasing Partners.” If the Non-Initiating Partners elect to purchase the
Initiating Partners’ Interests pursuant to this Section 7.4(b), then such Non-Initiating Partners
shall be referred to as the “Purchasing Partners” and the Initiating Partners shall be referred to
as the “Transferring Partners.” If the Non-Initiating Partners shall have made the election
described in clause (iii) of the first sentence of this Section 7.4(b), (1) such election shall be
deemed to be a Dissolution Notice given in accordance with Section 8.4(a), (2) the Non-Initiating
Partners shall be deemed to be the “Dividing Partners” and the Initiating Partners shall be deemed
to be the “Selecting Partners,” and (3) the Partners shall otherwise proceed in accordance with
Sections 8.4(c)-(f).

 

41

               (c) If the Buy-Sell Procedure was initiated prior to or on the seventh anniversary of the
Closing and the Non-Initiating Partners made either of the elections described in clauses (i) or
(ii) of the first sentence of Section 7.4(b), the Transferring Partners shall proceed in accordance
with the provisions of Sections 7.4(d), (e), (f) or (g). If the Buy-Sell Procedure was initiated
after the seventh anniversary of the Closing and the Non-Initiating Partners made either of the
elections described in clauses (i) or (ii) of the first sentence of this Section 7.4(b), then:

                (i) the Transferring Partners shall not be entitled to make any of the elections
provided in Sections 7.4(d), (e) or (f); and

                (ii) the Partners shall take all action reasonably necessary to consummate the sale of
the Transferring Partners’ Interests to the Purchasing Partners (or their qualified
designees) in accordance with the provisions of Sections 7.4(g), (h) and (i).

               (d) Following the election described in clauses (i) or (ii) of the first sentence of Section
7.4(b) or the deemed election described in Section 7.4(b), at the election of the Transferring
Partners, or following the election described in Section 7.4(e)(1), the Partners shall negotiate in
good faith to reach agreement on a tax efficient transaction structure for the sale by the
Transferring Partners to the Purchasing Partners of their Interests, including the form and value
of the consideration to be paid as well as appropriate adjustments to the Buy-Sell Price to the
extent such an adjustment is appropriate to reflect the tax efficient nature of such transaction.
Transaction structures to be discussed by the Partners may include a tax-deferred share exchange,
stock-for-stock merger or similar transaction involving the capital stock of the Transferring
Partners or the publicly traded capital stock of an upstream Affiliate of the Transferring Partners
and the publicly traded capital stock of the Purchasing Partners or of an upstream Affiliate of the
Purchasing Partners; provided that (i) any capital stock to be issued in connection with any such
transaction shall be available for issuance without shareholder action or registration under the
Securities Act; (ii) all third party and partner, member and stockholder consents required to be
obtained in connection with such transaction shall be obtained; (iii) the terms and conditions of
such transaction shall be otherwise usual and customary; (iv) the holding of the capital stock of
the Purchasing Partners or its upstream Affiliate by the Transferring Partners shall be legally
permissible; and (v) a mutually acceptable registration rights agreement shall be negotiated.

               (e) If the Partners do not reach agreement with respect to the terms of a tax efficient
transaction structure within sixty days following the election or deemed election described in
Section 7.4(b) or the election described in clause (1) of the next sentence of this Section 7.4(e),
then

                    (i) the Transferring Partners may exercise the termination right provided in Section
7.4(f), if such right is then exercisable;

 

42

                (ii) the Transferring Partners may elect to sell their Interests to the Purchasing
Partners pursuant to Section 7.4(g); or

                (iii) if the Transferring Partners were the Non-Initiating Partners, such
Non-Initiating Partners may elect to change their elections made pursuant to Section 7.4(b)
by electing to purchase from the Initiating Partners the Initiating Partners’ Interests in
accordance with the provisions of the next sentence.

If the Non-Initiating Partners make the election provided for in clause (iii) of the preceding
sentence, the Initiating Partner shall have the right to elect:

                (1) to cause the Partners to negotiate in good faith to reach a tax efficient
transaction structure pursuant to the provisions of Section 7.4(d);

                    (2) to exercise the termination right provided in Section 7.4(f), if such right is
then exercisable; or

                    (3) to sell to the Non-Initiating Partners their Interests pursuant to Section 7.4(g).

If the Non-Initiating Partners make the election provided for in clause (iii) of the first sentence
of this Section 7.4(e), the Initiating Partners shall be referred to as the “Transferring Partners”
and the Non-Initiating Partners shall be referred to as the “Purchasing Partners” for the purposes
of determining the Buy-Sell Price pursuant to Section 7.4(b) and for purposes of Sections 7.4(d),
(e), (f), (g) and (h), as applicable. The failure by the Transferring Partners to make an election
under this Section 7.4(e) within thirty days of the date such Partners are first entitled to make
an election hereunder shall be deemed to be an election consummate the sale of their Interests
pursuant to the provisions of Section 7.4(g).

               (f) The Transferring Partners may elect to terminate the Buy-Sell Procedure by giving notice
to the Purchasing Partners at any time prior to the time that the Transferring Partners become
obligated to sell their Interests to the Purchasing Partners pursuant to Section 7.4(g); provided
that this right shall be available to the Transferring Partners only during the first Buy-Sell
Procedure invoked, regardless of which set of Related Partners are the Initiating Partners with
respect to such Buy-Sell Procedure.

               (g) If any of the following shall have occurred:

                    (i) the Buy-Sell Procedure was initiated prior to or on the seventh anniversary of the
Closing and (A) the Transferring Partners elect, or are deemed under the final sentence of
Section 7.4(e) to have elected, to sell their Interests in accordance with this Section
7.4(g), or (B) the Transferring Partners otherwise so elect at any time following the
election or deemed election described in Section 7.4(b) or the election described in
Section 7.4(e)(iii);

 

43

                (ii) the Buy-Sell Procedure was initiated after the seventh anniversary of the Closing
and the Non-Initiating Partners made either of the elections described in clauses (i) or
(ii) of the first sentence of Section 7.4(b); or

                (iii) the Selecting Partners shall have made the election provided for in clause (ii)
of Section 8.4(d) in accordance with the terms thereof,

then the Partners shall take all action reasonably necessary to consummate the sale of the
Transferring Partners’ Interests to the Purchasing Partners (or their qualified designees) at a
purchase price payable in cash equal to the Buy-Sell Price.

               (h) Upon reaching an agreement concerning the structure and other terms by which the
Purchasing Partners or their designees shall purchase the Interests of the Transferring Partners
(the “Buy-Sell Transaction”), the business and affairs of the Partnership shall continue to be
conducted in the ordinary course as provided in this Agreement, unaffected by the pendency of the
Buy-Sell Transaction.

               (i) The closing of a Buy-Sell Transaction pursuant to this Section 7.4 shall be held at a
mutually acceptable place on a mutually acceptable date not more than ninety days after the date
that the structure and terms of the Buy-Sell Transaction are agreed to pursuant to this Section 7.4
(subject to extension pursuant to Section 7.5(a)). At such closing, the Purchasing Partners (or
their qualified designees) shall acquire, directly or indirectly, as the case may be, the
Transferring Partner’s Interests, free and clear of all liens, claims and encumbrances, against
payment of the purchase price therefor, and the Partners shall execute such documents as may be
necessary to effectuate the sale. Unless otherwise agreed by the Purchasing Partners and the
Transferring Partners, the purchase price shall be payable by wire transfer of funds or by
certified or cashier’s check drawn to the order of the Transferring Partners, as specified by the
Transferring Partners; provided, however, that the parties may agree that all or any portion of the
purchase price shall be payable in the first month after the close of the taxable year in which the
transfer occurs. The Purchasing Partners shall assume the obligations of the Transferring Partners
under this Agreement, and the Transferring Partners shall be released therefrom, except for those
obligations or liabilities of the Transferring Partners arising out of a breach of this Agreement.

               (j) No Buy-Sell Notice may be given while any Offer Notice is pending, or after an Event of
Termination has occurred.

          7.5 Additional Provisions Relating to Transfer. In the case of any Transfer under
Sections 7.1, 7.2, 7.3, 7.4 or 8.3(b) of this Agreement:

               (a) The time period within which the Transfer of Related Partner Interests must be consummated
shall be automatically extended until the tenth day following the receipt of all governmental
approvals which may be required in connection with the Transfer, if applications for such approvals
have been made within such prescribed periods.

 

44

               (b) In connection with the Transfer of Interests, the Transferors will be obligated to sell to
the Transferees, and the Transferees will be obligated to buy from the Transferors, a pro rata
portion of all evidences of indebtedness of the Partnership held directly or indirectly by the
Transferors for an amount, payable in cash, equal to the outstanding principal amount of such pro
rata portion at the time of transfer plus interest on such pro rata portion then accrued and
unpaid. The Transferees shall further be required to pay a pro rata portion of any and all filing
and recording fees, fees of counsel and accountants and other costs and expenses reasonably
incurred by the Partnership as a result of such Transfers.

               (c) Unless otherwise agreed by the non-Transferring Partner, no Transfer of an Interest
pursuant to Sections 7.1, 7.2, 7.3, 7.4 or 8.3(b) shall be made except upon terms which would not,
in the opinion of counsel chosen by and mutually acceptable to the Partners, result in the
termination of the Partnership within the meaning of Section 708 of the Code. If the immediate
Transfer of the offered Interest would, in the opinion of such counsel, cause such a termination,
then if, in the opinion of such counsel, the following action would not precipitate such
termination, the Transferor Partner shall be required (i) to immediately Transfer only that portion
of its Interest (which may consist of all of the Transferor Partner’s Interest other than a portion
of the Transferor Partner’s capital interest in the Partnership) as may, in the opinion of counsel
to the Partnership, be Transferred without causing such a termination, and (ii) to enter into an
agreement to Transfer the remainder of its Interest, in one or more Transfers, at the earliest date
or dates on which such Transfer or Transfers may be effected without causing such termination;
provided, that during the period that such Transferor Partner continues to own a portion of its
Interest pending its sale to the Transferee of the other portion of such Interest, such Transferor
Partner and such Transferee shall be treated for all purposes of this Agreement as one Partner.
The purchase price for the Interest shall be allocated between the immediate Transfer and the
deferred Transfer or Transfers pro rata on the basis of the percentage of the aggregate Interest
being Transferred, each portion to be payable when the respective Transfer is consummated, unless
otherwise agreed by the parties to the Transfer. In determining whether a particular proposed
Transfer will result in a termination of the Partnership, counsel to the Partnership (i) shall take
into account the existence of prior written commitments to Transfer made pursuant to this Section
7.5(c) and such commitments shall always be given precedence over subsequent proposed Transfers and
(ii) shall take into account the Transfer by the Transferor Partner’s Related Partner.

          7.6 Conditions to Transfers. In addition to all other terms and conditions contained
in this Agreement, prior to any Permitted Transfer of Interests pursuant to Section 7.2, (a) each
Transferor shall, other than with respect to Permitted Transfers pursuant to Section 7.2(a),
provide to the Partnership and each other Partner, (i) at least ten days’ prior notice of such
Transfer, (ii) a certificate of such Transferor, delivered with such notice, containing a statement
as to the provision(s) of Section 7.2 under which such Transfer is permissible, together with such
information as is reasonably necessary for each recipient of such notice to determine whether such
Transfer is permitted thereby, and (iii) such other information and documents as may be reasonably
requested by each recipient of such notice in order for it to make such determination and

 

45

(b) the Permitted Transferee of such Interest shall execute and deliver to the other Partners
an agreement by which it shall become a party to and be bound by the obligations, and enjoy the
benefits, under the terms and provisions of this Agreement as if it were a Partner as of the
closing date of such Transfer.

          7.7 Effect of Permitted Transfer. Upon consummation of any Permitted Transfer of an
Interest in accordance with the provisions of this Agreement, (a) the Permitted Transferee shall be
admitted as a Partner (if not already a Partner) and for purposes of this Agreement such Permitted
Transferee shall be deemed a Partner, (b) the Transferred Interest shall continue to be subject to
all the provisions of this Agreement, and (c) the Permitted Transferee shall succeed to the
Transferor’s Capital Account balance at the close of business on the effective date of such
Permitted Transfer. No Permitted Transfer shall relieve the Transferor of any of its obligations
or liabilities under this Agreement arising prior to the closing of the consummation of such
Permitted Transfer, and the Transferor shall continue to remain liable for the performance of any
obligations arising under this Agreement of any Affiliate to which it Transfers its Interest
pursuant to Section 7.2(b).

          7.8 Tax Allocation Adjustments; Distributions After Transfer. In the event of a
Transfer of any Interest, all items of income, gain, loss, deduction, and credit for the fiscal
year in which the transfer occurs shall be allocated for federal income tax purposes between the
transferor and the transferee on the basis of the ownership of the Interest at the time the
particular item shall have accrued. Distributions made on or after the effective date of transfer
shall be made to the Permitted Transferee, regardless of when such distributions accrued on the
books of the Partnership.

          7.9 Admission; Withdrawal of Partners. No new Partners shall be admitted to the
Partnership except with the approval of the Management Committee in accordance with Article IV or
in accordance with Transfer provisions contained in this Article VII. Except as otherwise
expressly provided in this Agreement, no Partner shall have the right to withdraw from the
Partnership. A Partner withdrawing in violation of this Agreement shall not be entitled to receive
any distribution and shall not otherwise be entitled to receive the fair value of its Interest
except as expressly provided in this Agreement. Upon the withdrawal of a General Partner in
violation of this Agreement, the sole remaining General Partner, if any, shall have the right,
exercisable by giving notice to the remaining Partners within ninety days of the date such electing
General Partner receives notice of the other General Partner’s withdrawal, to continue the
Partnership, in which case the Partnership shall not be dissolved nor shall its affairs be wound
up.

ARTICLE VIII

DURATION AND TERMINATION OF THE PARTNERSHIP

          8.1 Events of Termination. The Partnership shall be dissolved and its affairs wound
up pursuant to Section 8.2 or 8.4 (in the case of clause (d) below) upon the first to occur of any
of the following events (an “Event of Termination”):

 

46

               (a) the termination of the Contribution Agreement pursuant to Section 10.1 thereof;

               (b) the unanimous written consent of the Partners to dissolution;

               (c) the sale of substantially all the assets of the Partnership;

               (d) the initiation of the Dissolution Procedure by any Partner pursuant to Section 8.4;

               (e) the occurrence of an Event of Default; provided, however, in addition to the rights
specified in Section 8.3(b), the non-defaulting Partners shall have the right, exercisable by
giving notice to the other Partners within ninety days of the date such non-defaulting Partners
receive notice of such Event of Default, to continue the Partnership, in which case the Partnership
shall not be dissolved nor shall its affairs be wound up.

               (f) the Partnership files a petition in bankruptcy, petitions or applies to any tribunal for
the appointment of a custodian, receiver or any trustee for it or a substantial part of its assets,
commences any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt,
dissolution or liquidation law or statute of any jurisdiction, or suffers the filing of any such
petition or application, or the commencement of any such proceeding, against it in which an order
for relief is entered or which remains undismissed for a period of sixty days; or

               (g) the entry of a decree of judicial dissolution under § 17-802 of the Act.

          8.2 Winding-Up. Upon the occurrence of an Event of Termination (other than pursuant
to Section 8.1(d)) and the failure of the Partner(s) to continue the Partnership as provided
herein, the Partnership affairs shall be wound up as follows:

               (a) The Management Committee shall cause to be prepared a statement of the assets and
liabilities of the Partnership as of the date of dissolution.

               (b) The assets and properties of the Partnership shall be liquidated as promptly as possible,
and receivables collected, all in an orderly and businesslike manner so as not to involve undue
sacrifice. Notwithstanding the foregoing, the Management Committee may determine not to sell all
or any portion of the assets and properties of the Partnership, in which event such assets and
properties shall be distributed in kind pursuant to Section 8.2(c).

               (c) The proceeds of liquidation under Section 8.2(b) and all other assets and properties of
the Partnership shall be applied and distributed as follows in the following order of priority:

 

47

                    (i) to the payment of the debts and liabilities of the Partnership, excluding any
amounts which may be owed to any Partner, and the expenses of liquidation;

                    (ii) to establishing any reserves that the Management Committee, in accordance with
sound business judgment, deems reasonably necessary for any contingent or unforeseen
liabilities or obligations of the Partnership, which reserves may be paid over by the
Management Committee to an escrow agent selected by it to be held by such agent for the
purpose of (A) distributing such reserves in payment of the aforementioned contingencies
and (B) upon the expiration of such period as the Management Committee may deem advisable,
distributing the balance thereof in the manner provided in this Section 8.2(c);

                    (iii) to the payment of all amounts owed to any Partner other than loans or on
account of their Capital Accounts, and then to loans to the Partnership made by Partners in
proportion to each Partner’s Percentage Interest, provided that if the aggregate amount of
each Partner’s outstanding loans, including accrued interest, shall not be in the same
proportion to the total of all outstanding loans of Partners as each Partner’s Percentage
Interest, then payments hereunder shall be first applied to reduce the loan balance of the
Partner whose proportion of the outstanding loans is in excess of its Percentage Interest
until the outstanding loans to each Partner are in proportion to their respective
Percentage Interests;

                    (iv) to the Partners in payment of the balances in their respective Capital Accounts
(as adjusted in accordance with Section 3.3); and

                    (v) to the Partners in proportion to each Partner’s Percentage Interest.

          8.3 Events of Default.

               (a) An “Event of Default” shall be considered to have occurred if any Partner:

                    (i) Fails to perform any of its material obligations under this Agreement or any of
its indemnification obligations under the Contribution Agreement and continues such failure
for twenty days after it has been given written notice by any nondefaulting Partner that is
not an Affiliate of the defaulting Partner (provided, however, that if the failure is not a
failure to pay money and is of such a nature that it cannot reasonably be cured within
twenty days, but if it is curable and the defaulting Partner in good faith begins efforts
to cure it within twenty days and continues diligently to do so, it shall have a reasonable
additional period thereafter to effectuate the cure), or TCI Holdings, Inc. fails to
perform any obligation under the Guaranty, dated as of June 23, 1998 provided to TWE-A/N
and TWE-A/N GP;

 

48

                 (ii) Admits in writing its inability to pay its debts; fails generally to pay its
debts as such debts become due; makes a general assignment for the benefit of creditors;
files a petition in bankruptcy, petitions or applies to any tribunal for the appointment of
a custodian, receiver or any trustee for it or a substantial part of its assets; commences
any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt,
dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in
effect; suffers the filing of any such petition or application, or the commencement of any
such proceeding, against it in which an order for relief is entered or which remains
undismissed for a period of sixty days; or by any act or omission indicates its consent to,
approval of or acquiescence in any such petition, application or proceeding or order for
relief or the appointment of a custodian, receiver or any trustee for it or any substantial
part of any of its properties, or shall suffer any such custodianship, receivership or
trusteeship to continue undischarged for a period of sixty days;

                    (iii) Transfers in any way its Interest, except as permitted in this Agreement, or
suffers such Transfer;

                    (iv) Otherwise causes the dissolution of the Partnership in contravention of this
Agreement.

               (b) Upon the occurrence of an Event of Default, the Related Partners, neither of whom is a
nondefaulting Partner (the “Non-Defaulting Partners”), shall have the right, in addition to the
right specified in the proviso to Section 8.1(e), to elect to continue the business of the
Partnership as a successor partnership without liquidation of its affairs by giving written notice
of such election to the other Partners within forty-five days of the date the non-defaulting
Partners receive notice of such Event of Default. If such election is made, the Non-Defaulting
Partners shall, within ninety days after the notice of such election has been given, pay, or cause
a Person or Persons designated by them to pay, to the defaulting Partner and the defaulting
Partner’s Related Partner (collectively, the “Defaulting Partners”) in respect of their Interests
an amount equal to the amount the Defaulting Partners would have received in respect of their
Interests if the Partnership’s assets and properties were sold for an amount equal to their Fair
Market Value net of the Partnership’s debts and liabilities (and related reserves) described in
clauses (i), (ii) and (iii) of Section 8.2(c) (the “Partnership Fair Value”) and the proceeds from
such sale were distributed to the Partners in accordance with Section 8.2(c)(iv) and (v), and the
Defaulting Partners shall Transfer to the Non-Defaulting Partners (or the Person or Persons
designed by the Non-Defaulting Partners to purchase the Defaulting Partners’ Interests), free and
clear all liens, claims and encumbrances, the Defaulting Partners’ Interests. Upon the purchase by
the Non-Defaulting Partners (or their designees) of the Defaulting Partners’ Interests pursuant to
this Section 8.3(b), the Non-Defaulting Partners, or the Person or Persons designated by the
Non-Defaulting Partners to purchase the Defaulting Partners’ Interests, shall assume all
obligations of the Defaulting Partners arising under this Agreement after the date of purchase
except for any obligations or liabilities of the Defaulting Partners arising out of any breach of
this Agreement or the Event of Default. In the event that the Non-Defaulting Partners do not elect
to continue the Partnership, the affairs of the Partnership shall be wound up as

 

49

provided in Section 8.2, except that all references to the Management Committee therein shall
be deemed to be references to the General Partner that is not a Defaulting Partner for purposes of
applying such Section and such General Partner shall be entitled to deduct from any amounts to be
paid to the Defaulting Partners under Section 8.2 the amount of damages proximately resulting to
the Non-defaulting Partners from the Event of Default. The rights and remedies of each Partner set
forth in this Section 8.3 shall be in addition to any other rights and remedies available to it
under this Agreement, at law or in equity.

               (c) In the event that an independent appraisal of the Fair Market Value of any item or items
(including the Partnership Fair Value) is required pursuant to the provisions of this Agreement,
such appraisal shall be made by a qualified appraiser selected by agreement of the General
Partners. If the General Partners are unable to agree on the selection of an appraiser, each
General Partner shall select one appraiser, and the two appraisers so selected shall select an
additional appraiser. Each appraiser shall determine its estimate of the Fair Market Value (or the
Partnership Fair Value, as the case may be), and the average of the two determinations that are
closest in result shall be the Fair Market Value (or the Partnership Fair Value, as the case may
be); provided that, if the difference between the highest determination and the middle
determination is exactly equal to the difference between the lowest and the middle determinations,
the middle determination shall be the Fair Market Value (or the Partnership Fair Value, as the case
may be).

          8.4 Dissolution Procedure.

               (a) Subject to Section 8.4(g), at any time after the seventh anniversary of the Closing,
either set of Related Partners (the “Triggering Partners”) may, at their option, elect to initiate
the Dissolution Procedure set forth in this Section 8.4 (the “Dissolution Procedure”). In such
event, the Triggering Partners shall notify the other Partners (the “Non-Triggering Partners”) in
writing of their intention to initiate the Dissolution Procedure (the “Dissolution Notice”).

               (b) Upon receipt of a Dissolution Notice, the Non-Triggering Partners may elect to either:

                 (i) divide the assets and liabilities of the Partnership into two pools in accordance
with the guidelines set forth in Section 8.4(c) (each, an “Asset Pool”), in which case the
Non-Triggering Partners shall be referred to as the “Dividing Partners” and the Triggering
Partners shall be referred to as the “Selecting Partners”; or

                 (ii) cause the Triggering Partners to (A) divide the assets and liabilities of the
Partnership into two Asset Pools, in which case the Triggering Partners shall be referred
to as the “Dividing Partners” and the Non-Triggering Partners shall be referred to as the
“Selecting Partners,” and (B) deliver to the Non-Triggering Partners the Triggering
Partners’ determination of the Stated Value.

 

50

The failure of the Non-Triggering Partners to notify the Triggering Partners of their election
pursuant to this Section 8.4(b) within ninety days of receipt of the Dissolution Notice shall be
deemed to be an election by the Non-Triggering Partners described in clause (i) of the first
sentence.

               (c) Within ninety days after the election or deemed election described in Section 8.4(b) or
the election described in Section 7.4(b)(iii), the Dividing Partners shall deliver to the Selecting
Partners a notice (the “Selection Notice”) setting forth in reasonable detail the composition of
the two Assets Pools created in accordance with this Section 8.4(c) and to be distributed in
accordance with Section 8.4(e), and, in the case of an election made pursuant to clause (ii) of
Section 8.4(b), the Dividing Partners’ determination of the Stated Value. The Asset Pools to be
established by the Dividing Partners pursuant to this Section 8.4(c) (i) shall have equivalent net
Fair Market Values and (ii) shall each contain, subject to the next sentence and the proviso to
this sentence, approximately 50% of the Partnership’s assets and 50% of the Partnership’s
liabilities, in each case as reasonably determined in good faith by the Dividing Partner; provided
that, subject to clause (2) of the next sentence, the systems or assets serving the Houston DMA
shall not be included in more than one Asset Pool. In the event the Partnership’s assets and
liabilities are not capable of being divided in accordance with the principles outlined in the
preceding sentence due to the size of the Houston DMA, the Dividing Partners shall adjust the
assets and liabilities included in the two Asset Pools in the following manner:

                 (1) first, by adjusting the indebtedness to be included in the Asset Pools by
such amount (not to exceed, in the aggregate, $150,000,000) as shall be necessary to comply
with the requirements set forth in the preceding sentence; and

                 (2) second, if the adjustment described in clause (1) is insufficient, by
excluding from the Asset Pool containing the systems and assets serving the Houston DMA the
systems and assets set forth on Schedule 8.4(c), in the order of priority set forth on
Schedule 8.4(c), until the two Asset Pools, after giving effect to the adjustments made
pursuant to clause (1) and this clause (2), comply with the requirements set forth in the
preceding sentence (other than the proviso contained therein).

The Dividing Partners shall provide to the Selecting Partners all information about the composition
of the Asset Pools as is reasonably requested by the Selecting Partners to assist in making their
selection pursuant to Section 8.4(d).

               (d) Upon receipt of the Selection Notice, the Selecting Partners shall have the right to:

               (i) select the Asset Pool to be distributed to them upon dissolution of the
Partnership pursuant to Section 8.4(e); or

               (ii) sell their Interests to the Dividing Partners (or their qualified designees) at a
purchase price, payable in cash, equal to the amount the Selecting Partners would have
received in respect of their Interests if the Partnership’s assets and properties were sold
for an amount equal to the Stated Value and the proceeds thereof were distributed to the
Partners in accordance with Section 8.2(c)(iv) and (v); provided, that the right
described in this clause (ii)

 

51

shall not be available to the Selecting Partners if (A) the Dissolution Procedure was
initiated pursuant to an election made under Section 7.4(b)(iii) or (B) the Selecting
Partners also were the Triggering Partners.

If the Selecting Partners shall fail to make the selection provided for in the preceding sentence
within ninety days after the date of the Selection Notice, the Dividing Partners shall have the
right to select the Asset Pool to be distributed to them upon the dissolution of the Partnership
pursuant to Section 8.4(e). If the Dividing Partners fail to deliver a Selection Notice within
ninety days of the date of the election or deemed election made in Section 8.4(b), the Selecting
Partners shall have the right to divide the assets and liabilities of the Partnership into two
Asset Pools in accordance with the requirements set forth in Section 8.4(c) and to select the Asset
Pool to be distributed to them in accordance with Section 8.4(e); provided that the Selecting
Partners must divide the Asset Pools and make their selection within ninety days of the date the
Selection Notice was required to have been delivered pursuant to Section 8.4(c). After a selection
has been made pursuant to this Section 8.4(d) (other than a selection made pursuant to Section
8.4(d)(ii)), the amount of the Partnership’s outstanding indebtedness allocated to each Asset Pool
pursuant to Section 8.4(c) shall be adjusted appropriately to reflect any differential that may
exist between the aggregate Capital Account balances of, and the aggregate outstanding principal
amount of indebtedness, and any interest thereon, owed by the Partnership to, the Selecting
Partners, on the one hand, and the Dividing Partners, on the other hand, and the Partners shall
otherwise proceed in accordance with Sections 8.4(e) and (f). If the Selecting Partners make the
election provided in Section 8.4(d)(ii), the Selecting Partners shall be deemed to be the
“Transferring Partners” and the Dividing Partners shall be deemed to be the “Purchasing Partners,”
and the Partners shall otherwise proceed in accordance with Sections 7.4(g), (h) and (i).

               (e) As soon as reasonably practicable after the selection made pursuant to Section 8.4(d)
(other than a selection made pursuant to Section 8.4(d)(ii)), and subject to obtaining any required
governmental or other third party consents or approvals, the systems and assets comprising the
Asset Pools (as divided and adjusted pursuant to Sections 8.4(c) and (d)) shall be distributed to
each set of Related Partners in accordance with the selection made pursuant to Section 8.4(d) and
in accordance with each Partner’s Percentage Interest relative to its Related Partner’s Percentage
Interest. In connection with the distributions contemplated by this Section 8.4(e), each set of
Related Partners will execute an assumption agreement pursuant to which such Partners will assume
all liabilities relating to, arising out of or otherwise attributable to the Asset Pool being
distributed to them and will further agree to indemnify the other set of Related Partners for any
losses such other Partners may suffer with respect to any of such liabilities. Such assumption
agreement shall contain terms substantially similar to those contained in Article IV of the
Contribution Agreement relating to the assumption of liabilities and Article XI of the Contribution
Agreement.

               (f) Until such time as all of the systems and assets comprising the Asset Pools have been
distributed, the Partnership shall conduct its business in the ordinary course, consistent with
past practice. Following the selection of an Asset Pool made pursuant to Section 8.4(d) (other
than a selection made pursuant to Section 8.4(d)(ii)), to the extent permitted by law, (i) the
assets comprising the Asset Pools shall for all purposes be deemed to be owned by the Partners to
whom such Asset Pool is to be distributed, and (ii) until such assets are actually distributed to
such Partners entitled to receive them, each Partner’s Percentage Interest shall entitle it only to
a distributive share
of (A) the income, gain, losses and deductions relating to, and the

 

52

assets comprising, such
Partner’s portion of the Asset Pool to be distributed to it and its Related Partner.

               (g) No Dissolution Notice may be given while any Offer Notice or, except as contemplated by
Section 7.4(b)(iii), Buy-Sell Procedure is pending, or after an Event of Termination has occurred.

ARTICLE IX

LIABILITY; EXCULPATION; INDEMNIFICATION

          9.1 Liability of Partners. A Partner shall not be personally liable for any debt,
obligation or other liability of the Partnership, whether arising in contract, tort or otherwise,
except that a Partner shall remain personally liable (a) for the payment of any capital
contributions required by Article III, and (b) as otherwise provided in this Agreement, the Act and
any other applicable law.

          9.2 Liability of Covered Persons.

               (a) Except as expressly provided herein, no Covered Person shall be liable to the Partnership
or any other Covered Person for any Damages incurred by reason of any act or omission performed or
omitted by such Covered Person in good faith on behalf of the Partnership and in a manner
reasonably believed to be within the scope of authority conferred on such Covered Person by this
Agreement, except that a Covered Person shall be liable for any such Damages incurred by reason of
such Covered Person’s gross negligence or willful misconduct.

               (b) A Covered Person shall be fully protected in relying in good faith upon the records of the
Partnership and upon such information, opinions, reports or statements presented to the Partnership
by any Person as to matters the Covered Person reasonably believes are within such other Person’s
professional or expert competence and who has been selected with reasonable care by or on behalf of
the Partnership, including information, opinions, reports or statements as to the value and amount
of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and
amount of assets from which distributions to Partners might properly be paid.

          9.3 Duties and Liabilities of Covered Persons. To the extent that, at law or in
equity, any Covered Person has duties (including fiduciary duties) and liabilities related thereto
to the Partnership or to any other Covered Person, a Covered Person acting under this Agreement
shall not be liable to the Partnership or to any other Covered Person for its good faith reliance
on the provisions of this Agreement. The provisions of this Agreement, to the extent that they
restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are
agreed by the Partners to replace such other duties and liabilities of such Covered Person.

          9.4 Indemnification.

               (a) To the fullest extent permitted by applicable law, the Partnership shall indemnify any
Covered Person from and against any and all Damages arising from any and all Claims brought by or
against the Partnership, including a Claim by or in the right of the Partnership to procure a
judgment in its favor, by reason of the fact that such Covered Person is or was a Partner, officer,
employee or agent of the Partnership, or that

 

53

such Covered Person is or was serving at the request of the Partnership as a partner, member,
director, officer, trustee, employee or agent of another Person. Notwithstanding the foregoing, no
indemnification shall be provided to or on behalf of any Covered Person if a judgment or other
final adjudication adverse to such Covered Person establishes that his or her acts constituted
willful misconduct or gross negligence.

               (b) The Partnership and each Partner (each, a “General Manager Indemnitor”) hereby agree,
jointly and severally, to indemnify and hold harmless the General Manager, its Affiliates, and all
officers, directors, employees, stockholders, partners and agents of the General Manager and its
Affiliates (each, a “General Manager Indemnitee”) from and against any and all Damages arising from
any and all Claims in which the General Manager Indemnitee may be involved or threatened to be
involved, as a party or otherwise, arising out of the General Manager’s performance of its
obligations under the Management Agreement or the operation of the Systems, regardless of whether
this Agreement or the Management Agreement continues to be in effect or the General Manager
Indemnitee continues to be an Affiliate, or an officer, director, employee, stockholder, partner or
agent of the General Manager at the time any such Claims are made or Damages incurred; provided
that (i) the General Manager and the General Manager Indemnitee acted in good faith and in a manner
it reasonably believed to be in the best interest of the Partnership and, with respect to any
criminal proceeding, had no reasonable cause to believe its conduct was unlawful, and (ii) neither
the General Manager’s conduct nor the General Manager Indemnitee’s conduct constituted gross
negligence, willful misconduct or a breach of the Management Agreement.

               (c) The Partnership, in the case of subsection (a), and the General Manager Indemnitor, in the
case of subsection (b), shall pay expenses incurred in defending any Claim described in subsections
(a) and (b) (including reasonable legal fees and expenses of counsel and other experts) in advance
of the final disposition of such Claim upon receipt by the Partnership or the General Manager
Indemnitor, as the case may be, of an undertaking, in form satisfactory to the legal counsel of the
Partnership or the General Manager Indemnitor, as the case may be, to repay such amount if it shall
be determined that the Covered Person or General Manager Indemnitee, as the case may be, is not
entitled to be indemnified as authorized by subsections (a) and (b) above.

               (d) No Covered Person or General Manager Indemnitee, as the case may be, shall settle or
compromise any Claim for which it is seeking indemnification pursuant to subsections (a) or (b)
without obtaining the prior written consent of the Person providing indemnification thereto.
Neither the Partnership nor the General Manager Indemnitor, as the case may be, shall settle or
compromise any Claim for which it is providing indemnification pursuant to subsections (a) or (b)
without obtaining the prior written consent of the Covered Person or General Manager Indemnitee, as
the case may be, seeking, and entitled to, indemnification thereunder, unless such Covered Person
or General Manager Indemnitee, as the case may be, is fully released and held harmless from any
liability related to such Claim.

               (e) The indemnification provided by this Section 9.4 shall not be deemed exclusive of any
other rights to indemnification to which those seeking indemnification may be entitled under any
agreement, determination of the Management Committee or otherwise. The rights to indemnification
and reimbursement or advancement of expenses provided by, or granted pursuant to, this Section 9.4
shall continue as to a Covered Person who has ceased to be a Partner, officer, employee or

 

54

agent (or other person indemnified hereunder) and shall inure to the benefit of the
successors, assigns, executors, administrators, legatees and distributees of such Person.

               (f) The provisions of this Section 9.4 shall be a contract between the Partnership or the
Partners, as the case may be, on the one hand, and each Covered Person who served in such capacity
at any time while this Section 9.4 is in effect, on the other hand, pursuant to which the
Partnership, the Partners and each such Covered Person intend to be legally bound. No repeal or
modification of this Section 9.4 shall affect any rights or obligations with respect to any state
of facts then or theretofore existing or thereafter arising or any proceeding theretofore or
thereafter brought or threatened based in whole or in part upon such state of facts.

          9.5 Insurance. The Partnership may purchase and maintain insurance, to the extent and
in such amounts as the General Manager shall deem reasonable on behalf of Covered Persons and such
other Persons as the General Manager shall determine, against any liability that may be asserted
against or expenses that may be incurred by any such Person in connection with the activities of
the Partnership or such indemnities, regardless of whether the Partnership would have the power to
indemnify such Person against such liability under the provisions of this Agreement.

ARTICLE X

MISCELLANEOUS

          10.1 Waiver of Partition. Except as may be otherwise provided by law in connection
with the winding-up, liquidation and dissolution of the Partnership, each Partner hereby
irrevocably waives any and all rights that it may have to maintain an action for partition of any
of the Partnership’s property.

          10.2 Modifications; Waivers. This Agreement may be modified or amended only with the
written consent of all Partners. The observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively) by a
writing signed by the party or parties against which such waiver is to be asserted. Except as
otherwise specifically provided herein, no delay on the part of any party hereto in exercising any
right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the
part of any party hereto of any right, power or privilege hereunder operate as a waiver of any
other right, power or privilege hereunder nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder.

          10.3 Entire Agreement. This Agreement, the Contribution Agreement and the Management
Agreement and the documents expressly referred to herein and therein constitute the entire
agreement among the Partners with respect to the subject matter hereof and supersede any prior
agreement or understanding among them with respect to such subject matter.

          10.4 Severability. If any provision of this Agreement, or the application of such
provision to any person or circumstance, shall be held invalid, the remainder of this Agreement or
the application of such provision to other Persons or circumstances shall not be affected thereby,
provided that the parties shall negotiate in good faith with respect to an equitable modification
of the provision or application thereof held to be invalid.

 

55

          10.5 Notices. Any notice, request, demand or other communication hereunder required
or permitted to be given under this Agreement will be in writing and will be deemed to have been
duly given only if delivered in person or by first class, prepaid, registered or certified mail, or
sent by courier or, if receipt is confirmed, by telecopier:

          If to TWE-A/N or TWE-A/N GP:

Time Warner Entertainment -

    Advance/Newhouse Partnership

TWE-A/N Texas Cable Partners

    General Partner LLC

S Time Warner Cable

290 Harbor Drive

Stamford, CT 06902

Attention: David E. O’Hayre

Telecopy No: (203) 328-0691

          With a copy to :

Time Warner Entertainment -

    Advance/Newhouse Partnership

TWE-A/N Texas Cable Partners

    General Partner LLC

S Time Warner Cable

290 Harbor Drive

Stamford, CT 06902

Attention: Marc Apfelbaum

Telecopy: (203) 328-4840

          If to TCI or TCI GP:

TCI Texas Cable Holdings LLC

TCI Texas Cable, Inc.

c/o Tele-Communications, Inc.

5619 DTC Parkway

Englewood, CO 80111

Attention: William R. Fitzgerald

Telecopy No: (303) 488-3219

Copy: Legal Department

or to such other address as any Partner or the Partnership shall have last designated by notice to
the Partnership and the other Partners, as the case may be. All notices will be deemed to have
been received on the date of delivery, which in the case of deliveries by telecopier, will be the
date of the sender’s confirmation.

          10.6 Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware (other than its rules of conflicts of law to the
extent that the application of the laws of another jurisdiction would be required thereby).

 

56

          10.7 Successors and Assigns. Except as otherwise specifically provided, this
Agreement shall be binding upon and inure to the benefit of the Partners, and their legal
representatives, successors and assigns.

          10.8 Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall consist one and the same instrument.

          10.9 Headings. The Article and Section headings in this Agreement are for convenience
of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any
provisions hereof.

          10.10 Construction. None of the provisions of this Agreement shall be for the benefit
of or enforceable by any creditors of the Partnership. No one, including but not limited to the
Partners or any creditor of the Partnership or any of its Partners, shall have any rights under
this Agreement against any Affiliate of any Partner.

          10.11 Further Actions. Each Partner shall execute and deliver such other
certificates, agreements and documents, and take such other actions, as may reasonably be required
in connection with the formation of the Partnership and the achievement of its purposes, including,
without limitation, (a) any documents that the General Manager deems necessary or appropriate to
form, qualify, or continue the Partnership in all jurisdictions in which the Partnership conducts
or plans to conduct business and (b) all such agreements, certificates, tax statements and other
documents, including, without limitation, all necessary applications or other requests for
authority to be filed with the Federal Communications Commission, as may be required to be filed in
respect of the Partnership.

          10.12 No Third Party Rights. This Agreement is made solely and specifically among and
for the benefit of the parties hereto, and their respective successors and assigns (subject to the
express provisions hereof relating to successors and assigns), and is not intended to confer any
benefits upon, or create any rights in favor of, any Person other than the parties hereto, and, in
the case of Article IX, any Covered Persons and the General Manager Indemnitees.

          10.13 Specific Performance; Attorneys Fees. The Partners agree that the remedy at law
for damages upon violation of the terms of this Agreement would be inadequate because the Interests
and the business of the Partnership are unique. Therefore, the Partners agree that the provisions
of this Agreement may be specifically enforced by any court of competent jurisdiction, and each
Partner and its respective transferees agree to submit to the jurisdiction of the court where any
such action for specific performance is brought. If any Partner defaults or is alleged to have
defaulted in its performance of any of the terms and conditions of this Agreement and if, as a
result of such default or alleged default, a lawsuit seeking damages, specific performance, or any
other remedy is filed by any other Partner, then, in that event, the prevailing part(ies) in such a
lawsuit shall be entitled to obtain costs, including attorneys’ fees, from the non-prevailing party
in such amount as shall be determined by the court to be reasonable under the circumstances.

          10.14 Submission to Jurisdiction. Any claim arising out of or relating to this
Agreement or the transactions contemplated hereby shall be instituted only in a Federal district
court located in the State of Delaware or a Chancery Court located in Wilmington County, State of
Delaware and each Partner agrees not to commence legal

 

57

proceedings or otherwise proceed against any other Partner in respect of any claim arising out
of or relating to this Agreement or the transactions contemplated hereby in any other jurisdiction
(including in any Federal or State court located in the State of Texas). Each Partner agrees not
to assert, by way of motion, as a defense or otherwise, in any such claim, any claim that it is not
subject personally to the jurisdiction of such court, that the claim is brought in an inconvenient
forum, that the venue of the claim is improper or that this Agreement or the subject matter hereof
may not be enforced in or by such court. Each Partner further irrevocably submits to the
jurisdiction of such court in any such claim. Each Partner hereby appoints The Prentice-Hall
Corporation System, Inc. (the “Agent”), at the Agent’s offices of 1013 Centre Road, Wilmington,
Delaware 19805-1297, or its office at such address in Delaware as it hereafter furnishes to the
other Partners, as such Partner’s authorized agent to accept and acknowledge on such Partner’s
behalf service of any and all process that may be served in any such claim. Any and all service of
process and any other notice in any such claim shall be effective against any Partner if given
personally or by registered or certified mail, return receipt requested, or by any other means of
mail that requires a signed receipt, postage prepaid, mailed to such Partner as herein provided, or
by personal service on the Agent with a copy of such process mailed to such Partner by first class
mail or registered or certified mail, return receipt requested, postage prepaid.

          10.15 WAIVER OF JURY TRIAL. EACH PARTNER HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTNER HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTNER HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTNER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTNERS HERETO HAVE BEEN INDUCED TO
ENTER

 

58

INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

          10.16 Construction. This Agreement has been negotiated by the Partners and their
respective legal counsel, and legal or other equitable principles that might require the
construction of this Agreement or any provision of this Agreement against the Partner drafting this
Agreement will not apply in any construction or interpretation of this Agreement.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	TIME WARNER ENTERTAINMENT- 

ADVANCE/NEWHOUSE PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Time Warner Entertainment Company, L.P.,
its Partner
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ David E. O’Hayre	 	 	 	 
	 

	 	 	 	 	 	Name: David E. O’Hayre	 	 	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TWE-A/N TEXAS CABLE PARTNERS

GENERAL PARTNER LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ David E. O’Hayre
	 	 	 	 	Name: David E. O’Hayre
	 	 	 	 	Title: Vice President
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TCI TEXAS CABLE HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	TCI Communications, Inc., as its manager
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By: /s/ William R. Fitzgerald 
	 	 	 	 	Name: William R. Fitzgerald
	 	 	 	 	Title: Executive Vice President
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TCI TEXAS CABLE, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By: /s/ William R. Fitzgerald 
	 	 	 	 	Name: William R. Fitzgerald
	 	 	 	 	Title: Vice President

 

59

SCHEDULE 1

TCI SYSTEMS

	 	 	 
	Community Served/Headend	 	CUID
	I. HOUSTON SYSTEM
	 	 
	County of Brazoria / Clute

	 	TX0280
	City of Clute / Clute

	 	TX0277
	City of Freeport / Clute

	 	TX0278
	City of Lake Jackson / Clute

	 	TX0279
	City of Richwood / Clute

	 	TX0309
	County of Galveston / La Marque

	 	TX0980
	City of Galveston / La Marque

	 	TX0041
	Jamaica Beach / La Marque

	 	TX1343
	City of Shenandoah / The Woodlands

	 	TX1377
	The Woodlands / The Woodlands

	 	TX0355
	Eaglevision County of Harris (NW) / One North

	 	AA0000
	County of Harris (W) / Houston (Rebuild)

	 	TX0754
	County of Harris (W) / One North

	 	TX0754
	County of Harris (N) / One North

	 	TX0753
	County of Harris/Houston

	 	TX0748
	County of Harris / Houston

	 	TX0737
	City of Brookside / Houston

	 	TX1252
	Eaglevision Houston (SE) / Houston

	 	AA0000
	County of Harris (NW) / One North

	 	TX1322
	City of Houston (SE) / Houston

	 	TX0755
	City of Houston (NE) / Houston

	 	TX0736
	City of Magnolia / Tomball

	 	TX1157
	County of Montgomery / Tomball

	 	TX1323
	City of Tomball / Tomball

	 	TX0835
	City of Nassau Bay / La Marque

	 	TX0756
	City of Seabrook / La Marque

	 	TX0515
	City of Webster / La Marque

	 	TX0854
	City of El Lago / La Marque

	 	TX0511
	Village of Taylor Lake / La Marque

	 	TX0838
	City of Pearland / Houston

	 	TX0746
	City of Alvin / La Marque

	 	TX0750
	County of Brazoria / La Marque

	 	TX1320
	City of Friendswood / La Marque

	 	TX0751
	City of Hillcrest Village / La Marque

	 	TX1251
	Village of Bayou Vista / La Marque

	 	TX1352
	Eaglevision LaMarque / La Marque

	 	AA0000
	City of Hitchcock / La Marque

	 	TX0508
	City of Santa Fe / La Marque

	 	TX0749
	Village of Tiki Island / La Marque

	 	TX2134
	City of LaMarque / La Marque

	 	TX0514

 

 

60

	 	 	 
	Community Served/Headend	 	CUID
	City of Texas City / La Marque

	 	TX0424
	Bacliff / La Marque

	 	TX0836
	Bayview / La Marque

	 	TX0837
	City of Clear Lake Shores / La Marque

	 	TX0512
	City of Dickinson / La Marque

	 	TX0513
	City of Kemah / La Marque

	 	TX0510
	City of League City / La Marque

	 	TX0509
	South Shore / La Marque

	 	TX2087
	City of Deer Park / LaPorte

	 	TX0806
	City of LaPorte / LaPorte

	 	TX0808
	City of Morgan’s Point / LaPorte

	 	TX0809
	City of Pasadena / LaPorte

	 	TX0252
	City of Shoreacres / LaPorte

	 	TX0810
	City of South Houston / LaPorte

	 	TX0381
	Channelview / Channelview

	 	TX0785
	County of Fort Bend / New Territory

	 	TX0798
	County of Fort Bend (N) / Cinco Ranch

	 	TX1946
	Fort Bend Security Company (SMATV) / Spring

	 	AA0000
	City of Houston / New Territory

	 	TX0919
	City of Richmond / New Territory

	 	TX0797
	City of Sugar Land / New Territory

	 	TX1136
	County of Fort Bend / New Territory

	 	TX1137
	County of Fort Bend (NE) / Cinco Ranch

	 	TX0665
	County of Harris (W) / Cinco Ranch

	 	TX0666
	County of Harris (E) / Highlands

	 	TX0866
	County of Harris (Hwy 6) / Cinco Ranch

	 	TX0722
	City of Katy / Cinco Ranch

	 	TX0539
	City of Needville / Needville

	 	TX0701
	Barrett Station / Highlands

	 	TX0865
	County of Harris (NE) / Channelview

	 	TX1584
	Highlands / Highlands

	 	TX0867
	County of Harris (NW) / Spring

	 	TX0393
	City of Humble / Channelview

	 	TX0574
	City of Rosenberg / Rosenberg

	 	TX0674
	City of Columbus / Columbus

	 	TX0204
	County of Colorado (UO Columbus) / Columbus

	 	TX1265
	County of Colorado (UO Eagle Lake) / Eagle Lake

	 	TX1266
	City of Eagle Lake / Eagle Lake

	 	TX0345
	II. BAYTOWN/NORTHSHORE SYSTEM
	 	 
	City of Galena Park / Houston

	 	TX0672
	County of Harris / Houston

	 	TX0673
	City of Jacinto City / Houston

	 	TX0671
	City of Baytown / Houston

	 	TX0310
	County of Chambers / Houston

	 	TX1469
	Eaglevision Baytown (SMATV) / Houston

	 	AA0000
	III. DEL RIO SYSTEM
	 	 
	City of Del Rio / Del Rio

	 	TX0183
	Laughlin AFB / Del Rio

	 	TX2105
	County of Val Verde / Del Rio

	 	TX1458
	City of Asherton / Asherton

	 	TX0938

 

61

	 	 	 
	Community Served/Headend	 	CUID
	County of Dimmit (S) / Asherton

	 	TX2042
	County of Atascosa (W) / Charlotte

	 	TX2051
	City of Charlotte / Charlotte

	 	TX0974
	City of Cotulla / Cotulla

	 	TX0377
	County of La Salle (C) / Cotulla

	 	TX2052
	City of Carrizo Springs / Crystal City

	 	TX0185
	City of Crystal City / Crystal City

	 	TX0186
	County of Dimmit (C) / Crystal City

	 	TX2055
	County of Zavala / Crystal City

	 	TX2049
	Town of Dilley / Dilley

	 	TX0351
	County of Frio (S) / Dilley

	 	TX2053
	City of Eagle Pass / Eagle Pass

	 	TX0114
	County of Maverick / Eagle Pass

	 	TX2046
	Encinal / Encinal

	 	TX0963
	County of La Salle (S) / Encinal

	 	TX2054
	County of Atascosa (C) / Jourdanton

	 	TX2050
	City of Jourdanton / Jourdanton

	 	TX0928
	City of Poteet / Jourdanton

	 	TX0927
	County of Frio (C) / Pearsall

	 	TX2045
	City of Pearsall / Pearsall

	 	TX0339
	County of Maverick (NW) / Quemado

	 	TX0436
	City of Uvalde / Uvalde

	 	TX0164
	County of Uvalde / Uvalde

	 	TX0503
	IV. SAN MARCOS SYSTEM
	 	 
	City of Cuero / Cuero

	 	TX0312
	County of De Witt / Cuero

	 	TX2153
	City of Gonzales / Gonzales

	 	TX0284
	County of Gonzales / Gonzales

	 	TX1267
	County of DeWitt / Yoakum

	 	TX1273
	County of Lavaca / Yoakum

	 	TX1274
	City of Yoakum / Yoakum

	 	TX0234
	County of Kerr / Kerrville

	 	TX0484
	City of Kerrville / Kerrville

	 	TX0074

 

62

	 	 	 
	Community Served/Headend	 	CUID
	V. HARLINGEN SYSTEM
	 	 
	City of Rio Grande City/ Rio Grande City

	 	TX0176
	City of Roma / Roma

	 	TX0361
	County of Starr (SW) / Roma

	 	TX0411
	County of Starr / Roma

	 	TX0441
	Garciasville / La Grulla

	 	TX1235
	City of La Grulla / La Grulla

	 	TX1234
	City of Rio Grande City / La Grulla

	 	TX2189
	County of Starr / La Grulla

	 	TX2190
	City of Alton / Pharr

	 	TX1302
	City of Mission / Pharr

	 	TX0173
	City of Palmview / Pharr

	 	TX2063
	City of Hidalgo / Pharr [F3617]

	 	TX2163
	County of Hidalgo / Hidalgo

	 	TX1303
	City of Palmhurst / Pharr

	 	TX2097
	City of Brownsville / Harlingen

	 	TX0166
	Olmito / Harlingen

	 	TX1935
	County of Cameron / Harlingen

	 	TX2164
	City of Rancho Viejo / Harlingen

	 	TX1404
	Rio Del Sol / Harlingen

	 	TX2173
	Town of Edcouch / Harlingen

	 	TX0337
	City of Elsa / Harlingen

	 	TX0336
	City of La Villa / Harlingen

	 	TX1407
	County of Hidalgo / Harlingen

	 	TX2167
	City of Harlingen / Harlingen

	 	TX0169
	County of Cameron (W) / Harlingen

	 	TX0501
	Town of Combes / Harlingen

	 	TX1437
	City of La Feria / Harlingen

	 	TX0170
	City of Palm Valley / Harlingen

	 	TX0811
	Town of Primera / Harlingen

	 	TX1436
	Town of Rio Hondo / Harlingen

	 	TX1432
	City of San Benito / Harlingen

	 	TX0178
	County of Cameron / Harlingen

	 	TX2100
	Town of Santa Rosa / Harlingen

	 	TX1434
	County of Hidaglo / Harlingen

	 	TX2167
	County of Hidalgo / Hidalgo

	 	TX2166
	Las Milpas / Hidalgo

	 	TX1408
	County of Cameron / Harlingen

	 	TX2142
	Town of Indian Lake / Harlingen

	 	TX1435
	Town of Los Fresnos / Harlingen

	 	TX0497
	City of Alamo / Pharr

	 	TX0165
	City of Edinburg / Pharr

	 	TX0168
	County of Hidalgo / Harlingen

	 	TX2165
	Lopezville / Pharr

	 	TX1871
	City of Pharr / Pharr

	 	TX0174
	City of San Juan / Pharr

	 	TX0177
	County of Cameron / Harlingen

	 	TX2144
	County of Cameron / Harlingen

	 	TX2142
	Laguna Heights / Harlingen

	 	TX0499
	Town of Laguna Vista / Harlingen

	 	TX0500
	City of Port Isabel / Harlingen

	 	TX0498
	Township of Lyford / Harlingen

	 	TX1433

 

63

	 	 	 
	Community Served/Headend	 	CUID
	City of Raymondville / Harlingen

	 	TX0175
	County of Willacy / Harlingen

	 	TX2174
	City of South Padre Island / Harlingen

	 	TX0358
	County of Hidalgo / Pharr

	 	TX2143
	City of La Joya / Penitas

	 	TX1439
	Penitas / Penitas

	 	TX1438
	City of Donna / Harlingen

	 	TX0167
	County of Hidalgo / Penitas

	 	TX2168
	City of Mercedes / Harlingen

	 	TX0172
	City of Weslaco / Harlingen

	 	TX0179
	City of McAllen / Pharr

	 	TX0171

 

64

	 	 	 
	Community Served/Headend	 	CUID
	VI. NEDERLAND SYSTEM
	 	 
	City of Groves / Port Arthur

	 	TX0082
	City of Nederland / Port Arthur

	 	TX0084
	City of Port Arthur / Port Arthur

	 	TX0223
	City of Port Arthur (Annex) / Port Arthur (S)

	 	TX0223
	City of Port Arthur (Rebuild) / Port Arthur

	 	TX0223
	City of Port Neches / Port Arthur

	 	TX0085
	City of Orange / Orange

	 	TX0106
	City of Pinehurst / Orange

	 	TX0107
	City of West Orange / Orange

	 	TX0108
	City of Dayton / Liberty

	 	TX0922
	City of Liberty / Liberty

	 	TX0087
	County of Liberty (UO Liberty) / Liberty

	 	TX2108
	City of Beaumont / Beaumont

	 	TX0251

 

65

SCHEDULE 2

TWE-A/N SYSTEMS

	 	 	 
	Community Served/Headend	 	CUID
	I. HOUSTON SYSTEM
	 	 
	City of Bellaire/Houston

	 	TX0302
	Brazoria County (Unincorp.)/Houston

	 	TX0982
	City of Bunker Hill Village/Houston

	 	TX0399
	Ft. Bend (Unincorp.)/Houston

	 	TX0776
	Harris County (Unincorp.)/Houston

	 	TX0623
	City of Hedwig Village/Houston

	 	TX0410
	City of Hilshire Village/Houston

	 	TX0401
	City of Houston/Houston

	 	TX0676
	City of Hunters Creek Village/Houston

	 	TX0415
	City of Jersey City Village/Houston

	 	TX0622
	City of Missouri City/Houston

	 	TX0613
	City of Piney Point Village/Houston

	 	TX0459
	City of Southside Place/Houston

	 	TX0396
	City of Spring Valley/Houston

	 	TX0400
	City of Stafford/Houston

	 	TX0615
	The Meadows/Houston

	 	TX2181
	West University Place/Houston

	 	TX0395
	II. EL PASO SYSTEM
	 	 
	Anthony, TX/El Paso

	 	TX0634
	Anthony, NM/El Paso

	 	NM0089
	Canutillo/El Paso

	 	TX0918
	Clint/El Paso

	 	TX0556
	Dona Ana County, NM/El Paso

	 	NM0152
	City of El Paso/El Paso

	 	TX0242
	Fabens/El Paso

	 	TX0557
	Fort Bliss/El Paso

	 	TX0398
	El Paso County (Homestead)/El Paso

	 	TX0981
	Horizon City/El Paso

	 	TX0423
	Horizon East/El Paso

	 	N/A
	San Elizario/El Paso

	 	N/A
	Santa Teresa, NM/El Paso

	 	NM0069
	Socorro/El Paso

	 	TX0558
	Sunland Park, NM/El Paso

	 	NM0151
	Town of Vinton/El Paso

	 	N/A
	West El Paso City/El Paso

	 	N/A
	La Mesa, NM/Dona Ana

	 	N/A
	Moon City/El Paso

	 	TX0559
	Tennis West/El Paso

	 	TX1360
	Borderland, NM/El Paso

	 	N/A
	San Miguel, NM/El Paso

	 	N/A

 

66

	 	 	 
	Community Served/Headend	 	CUID
	Mesquite, NM/El Paso

	 	N/A
	Vado, NM/El Paso

	 	N/A
	McGregor Range, NM/El Paso

	 	N/A
	III. LAREDO SYSTEM
	 	 
	City of Laredo/Laredo

	 	TX0181
	City of Rio Bravo/Laredo

	 	TX2109
	Webb County (Unincorp.)/Laredo

	 	TX0331
	IV. COMMERCE SYSTEM
	 	 
	Commerce/Commerce

	 	TX0157
	Cooper/Commerce

	 	TX0158
	Hunt County/Commerce

	 	TX0419
	V. GRAHAM SYSTEM
	 	 
	Graham/Graham

	 	TX0243
	Young County/Graham

	 	TX0389

 

67

	 	 	 
	Community Served/Headend	 	CUID
	VI. GREENVILLE SYSTEM
	 	 
	City of Greenville/Greenville

	 	TX0068
	Hunt County/Greenville

	 	TX0419
	VII. PALESTINE SYSTEM
	 	 
	Anderson County/Palestine

	 	TX0416
	Elkhart/Palestine

	 	TX0240
	Palestine/Palestine

	 	TX0011
	VIII. DALLAS METRO SYSTEM
	 	 
	Irving (incl. Las Colinas)/Grapevine

	 	TX0783
	Lewisville/Grapevine

	 	TX1010
	Grapevine/Grapevine

	 	TX0775
	Coppell/Grapevine

	 	TX0604

 

68

Schedule 6.4(b)

	 	 	 
	Programming	 	Carriage Term
	American Movie Classics

	 	06/30/06
	American Sports Classics*1
	 	 
	Animal Planet

	 	12/30/06
	Bravo

	 	06/30/06
	Discovery Channel

	 	12/30/06
	DMX

	 	12/31/07
	ESPN

	 	12/31/06
	Fox News

	 	10/06/06
	Fox Sports SW

	 	03/01/05
	fX

	 	05/31/09
	Home and Garden

	 	12/31/06
	Home Shopping Network*

	 	03/31/08
	MSNBC*

	 	07/03/01
	Romance Classics*

	 	06/30/06
	Showtime (primary feed only)

	 	12/31/06
	The Box*

	 	02/26/04
	The Learning Channel 

The Movie Channel (TMC)

(primary feed only)

	 	12/31/06

12/31/06
	WEB TV*

	 	09/20/08

 

			
	1	 	American Sports Classics will not be
included in the definition of “Designated Programming Services”
with respect to any TCI System if TCI or any Affiliate of TCI receives a
termination agreement or release with respect to such service or if such
service is not available for carriage on such TCI System at the Closing.

 

69

Schedule 8.4(c)

Asset Pool Prioritization

If the provisions of Section 8.4(c) require that the Asset Pools be adjusted in accordance with
Section 8.4(c)(2) thereof, then the Dividing Partners shall exclude from the Asset Pool containing
the systems and assets serving the Houston DMA the systems and assets set forth below, in the order
set forth below, until the Asset Pools comply with the requirements of Section 8.4(c). For the
avoidance of doubt, the Dividing Partners shall first exclude the assets principally related to
serving Liberty, then the assets principally related to serving Columbus/Eagle Lake, and so on,
until the Asset Pools comply with the requirements of Section 8.4(c).

1. Liberty

2. Columbus/Eagle Lake

3. Rosenberg

4. Baytown/Northshore

5. Galveston

6. Woodlands

7. Houston Bay (La Marque)

 

70

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	 
	 	 	 	 
	ARTICLE I  DEFINITIONS	 	  2
	1.1
	 	Definitions	 	  2
	1.2
	 	Cross-References	 	10
	1.3
	 	Usage Generally	 	11
	 
	 	 	 	 
	ARTICLE II  ORGANIZATION	 	12
	2.1
	 	Formation	 	12
	2.2
	 	Name	 	12
	2.3
	 	Purpose	 	12
	2.4
	 	Principal Office	 	13
	2.5
	 	Effective Date; Term	 	13
	2.6
	 	Registered Office	 	13
	2.7
	 	Registered Agent	 	13
	2.8
	 	Filings	 	13
	 
	 	 	 	 
	ARTICLE III  COMPANY CAPITAL	 	14
	3.1
	 	Percentage Interests	 	14
	3.2
	 	Capital Contributions	 	14
	3.3
	 	Capital Accounts	 	15
	3.4
	 	Allocations of Profit and Loss	 	16
	3.5
	 	Distributions	 	18
	3.6
	 	Beneficial Assets	 	19
	3.7
	 	Partnership Debt	 	19
	 
	 	 	 	 
	ARTICLE IV  PARTNERS; MANAGEMENT OF THE PARTNERSHIP	 	19
	4.1
	 	Power of Partners	 	19
	4.2
	 	Management Committee	 	20
	4.3
	 	Chairman of the Management Committee	 	20
	4.4
	 	Meetings of the Management Committee	 	20
	4.5
	 	Actions Requiring Approval of the Management Committee	 	21
	4.6
	 	General Manager	 	24
	4.7
	 	Officers and Employees	 	24
	4.8
	 	Partner's Services and Expenses	 	24
	4.9
	 	Annual Budget	 	25
	 
	 	 	 	 
	ARTICLE V  BOOKS AND RECORDS; REPORTS TO PARTNERS	 	26
	5.1
	 	Books and Records	 	26
	5.2
	 	Financial Statements	 	26
	5.3
	 	Bank Accounts	 	27
	5.4
	 	Tax Returns and Information	 	27
	5.5
	 	Fiscal Year	 	28
	 
	 	 	 	 
	ARTICLE VI  CERTAIN AGREEMENTS	 	28
	6.1
	 	Other Businesses of the Partners	 	28
	6.2
	 	Non-Competition	 	28
	6.3
	 	Confidentiality	 	30
	6.4
	 	Internet Services; Designated Programming Services	 	31

 

71

	 	 	 	 	 
	 	 	 	Page
	6.5
	 	Telephony Restrictions	 	33
	6.6
	 	Excess Inventory	 	34
	6.7
	 	Partner Buying Power	 	34
	6.8
	 	Time Warner Social Contract	 	35
	6.9
	 	Furnishing of Employees by TWE-A/N	 	35
	ARTICLE VII  TRANSFERS	 	37
	7.1
	 	General Restrictions	 	37
	7.2
	 	Permitted Transfers	 	38
	7.3
	 	Right of First Refusal	 	39
	7.4
	 	Buy-Sell Procedure	 	41
	7.5
	 	Additional Provisions Relating to Transfer	 	45
	7.6
	 	Conditions to Transfers	 	46
	7.7
	 	Effect of Permitted Transfer	 	46
	7.8
	 	Tax Allocation Adjustments; Distributions After Transfer	 	46
	7.9
	 	Admission; Withdrawal of Partners	 	47
	ARTICLE VIII  DURATION AND TERMINATION OF THE PARTNERSHIP	 	47
	8.1
	 	Events of Termination	 	47
	8.2
	 	Winding-Up	 	48
	8.3
	 	Events of Default	 	49
	8.4
	 	Dissolution Procedure	 	51
	ARTICLE IX  LIABILITY; EXCULPATION; INDEMNIFICATION	 	54
	9.1
	 	Liability of Partners	 	54
	9.2
	 	Liability of Covered Persons	 	54
	9.3
	 	Duties and Liabilities of Covered Persons	 	55
	9.4
	 	Indemnification	 	55
	9.5
	 	Insurance	 	56
	ARTICLE X  MISCELLANEOUS	 	57
	10.1
	 	Waiver of Partition	 	57
	10.2
	 	Modifications; Waivers	 	57
	10.3
	 	Entire Agreement	 	57
	10.4
	 	Severability	 	57
	10.5
	 	Notices	 	57
	10.6
	 	Governing Law	 	58
	10.7
	 	Successors and Assigns	 	59
	10.8
	 	Counterparts	 	59
	10.9
	 	Headings	 	59
	10.10
	 	Construction	 	59
	10.11
	 	Further Actions	 	59
	10.12
	 	No Third Party Rights	 	59
	10.13
	 	Specific Performance; Attorneys Fees	 	59
	10.14
	 	Submission to Jurisdiction	 	60
	10.15
	 	WAIVER OF JURY TRIAL	 	60
	10.16
	 	Construction	 	61

EXHIBITS

Exhibit A  —  Form of Certificate of Limited Partnership

 

72

SCHEDULES

Schedule 1  —  TCI
Systems

Schedule 2  —  TWE-A/N
Systems

Schedule 6.4(b)  —  Designated Programming Services

Schedule 8.4(c)  —  Asset Pool PrioritizationEX-10.8 AMENDMENT NO. 1 TO PARTNERSHIP AGREEMENT

 

 

Exhibit 10.8

[EXECUTION COPY]

AMENDMENT NO. 1

TO PARTNERSHIP AGREEMENT

          This Amendment (“Amendment”) is made as of this 11th day of December, 1998, by and among Time
Warner Entertainment-Advance/Newhouse Partnership, a New York general partnership (“TWE-A/N”),
TWE-A/N Texas Cable Partners General Partner LLC, a Delaware limited liability company (“TWE-A/N
GP”), and TCI Texas Cable Holdings LLC, a Colorado limited liability company (“TCI”), and TCI Texas
Cable, Inc., a Colorado corporation (“TCI GP”).

          TWE-A/N, TWE-A/N GP, TCI and TCI GP are parties to that certain Limited Partnership Agreement,
dated as of June 23, 1998 (the “Partnership Agreement”), establishing Texas Cable Partners, L.P., a
Delaware limited partnership (the “Partnership”). The parties hereto wish to amend the Partnership
Agreement as provided herein. Capitalized terms used but not defined herein shall have the
meanings given to such terms in the Partnership Agreement.

          In consideration of the covenants and agreements set forth herein and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereby agree as follows:

          1. The definition of “Senior Credit Agreement” as it appears in Section 1.1 of the Partnership
Agreement is hereby amended by adding at the end of such definition the following::

“(except that the Partners may pledge their respective Partnership Interest in
order to secure the obligations of the Partnership thereunder)”.

          2. Section 3.1 of the Partnership Agreement is hereby amended by adding immediately after the
first sentence therein the following:

          

 

2

“Upon delivery of the Final Reports (as defined in the Contribution Agreement),
the resolution of any items or amounts therein in accordance with the Contribution
Agreement and the contribution of cash by TWE-A/N or TCI required by Section 3.3.3
of the Contribution Agreement, and the Percentage Interests of each Partner
automatically will be revised effective as of the Closing Date to reflect the
proportion that such Partner’s capital contribution bears to the total capital
contributed to the Partnership by the Partners (such calculations to be made on
the basis of the Final Reports), it being understood that the aggregate Percentage
Interest of TWE-A/N and TWE-A/N GP, on the one hand, and TCI and TCI GP, on the
other hand, each shall equal 50%.”

          3. Section 3.2(b) of the Partnership Agreement is hereby amended by (a) deleting the number
“(i)” therefrom and (b) deleting in its entirety the portion of such Section appearing immediately
after the words “Section 3.3.3 of the Contribution Agreement” and immediately prior to the period
thereof.

          4. The first sentence of Section 3.7 of the Partnership Agreement is hereby deleted in its
entirety and replaced with the following:

	 	 	 	“In order to satisfy in full the TWE-A/N Indebtedness and TCI Indebtedness (as
defined in the Contribution Agreement) pursuant to the terms of the Contribution
Agreement, and to finance the working capital and other general needs of the
Partnership, the Partnership and the Partners will enter into at or prior to the
Closing the Senior Credit Agreement. Immediately prior to the Closing, each
Partner shall borrow the amounts set forth in Section 7.18.1 of the Contribution
Agreement. Simultaneously with the Closing, the Partnership will assume, and each
Partner will be released from, all of the Partners’ obligations under the Senior
Credit Agreement, and the Senior Credit Agreement will thereafter be non-recourse
to the Partners (except to the extent of the pledge of Interests contemplated by
the Senior Credit Agreement).

          5. Section 3.7 of the Partnership Agreement is hereby further amended by deleting the last
sentence thereof.

          6. Section 4.4(a) of the Partnership Agreement is hereby amended by adding the following
sentence at the end of such Section:

	 	 	 	“The Partnership will reimburse each member of the Management Committee for all
travel and related out-of-pocket costs and expenses

 

3

	 	 	 	incurred by such member in attending meetings of the Management Committee.”

          7. Clause (ii) of the second sentence of Section 6.4(a) of the Partnership Agreement is hereby
amended by inserting after the words “affiliation agreement to be entered into by the Partnership”
the words “(or TWE-A/N)”.

          8. Section 6.4(a) of the Partnership Agreement is hereby amended by adding at the end of such
section the following:

	 	 	 	“Each of TWE-A/N and TCI shall use its good faith and commercially reasonable efforts (a)
to cause the Partnership to enter into (i) a written agreement (the “@Home Agreement”)
pursuant to which the Partnership will obtain directly from @Home the right to provide
@Home’s Exclusive Internet Services over the TCI Systems as contemplated by this Section
6.4(a) and (ii) if requested by either TCI or TWE-A/N, a written agreement (the “Road
Runner Agreement”) pursuant to which the Partnership will obtain directly from ServiceCo
the right to provide the Internet Services of ServiceCo over the TWE-A/N Systems as
contemplated by this Section 6.4(a); and (b) to negotiate and enter into at or prior to
execution of the @Home Agreement and, if then requested, the Road Runner Agreement, a
written agreement (the “Internet Services Ancillary Agreement”) among the Parties setting
forth the manner in which TWE-A/N or TCI will be compensated by the Partnership for the
economic differential between the overall economic benefits to the Partnership provided by
the Road Runner Agreement (or, if applicable, the TWE-A/N affiliation agreement with
ServiceCo) with respect to Exclusive Internet Services (as such term is applied to
ServiceCo and TWE-A/N ) as compared to the overall economic benefits to the Partnership
provided by the @Home Agreement with respect to Exclusive Internet Services (as such term
is applied to @Home and TCI). Such economic differential shall be calculated only for the
period commencing upon the execution date of the Internet Services Ancillary Agreement.
Among other terms, the Internet Services Ancillary Agreement shall contain a provision
giving either TWE-A/N or TCI the right, exercisable as set forth below, to require that the
parties use their good faith and commercially reasonable efforts to renegotiate the terms
pursuant to which compensation payments are calculated under such agreement if the party
exercising such right is able to reasonably demonstrate that the calculation of payments
under such agreement inadequately or incorrectly reflects the overall economic benefits
provided to the Partnership by either @Home or ServiceCo because, for example, certain
performance measures are not included or, if included, are not given the appropriate weight
in determination of amounts payable under such agreement, and that, if such performance
measures were included, or the weighting thereof revised, the payments by the Partnership
under such agreement would be adjusted. Such right shall be exercisable by either TCI or
TWE-A/N if, during any consecutive 12-month period ending at least 30

 

4

	 	 	 	months after the Closing, the aggregate amount of the recurring portion (i.e., excluding
the portion relating to non-recurring differences such as differences in capital
expenditure requirements) of the compensation payments made by the Partnership to one of
the parties during such 12-month period exceeds $150,000. In addition, the Internet
Services Ancillary Agreement will provide that such agreement will be terminable by either
TWE-A/N or TCI upon reasonable notice if such party, as conditions of such termination,
agrees to terminate the Partnership’s exclusivity obligations with respect to the TWE-A/N
Systems or the TCI Systems, as applicable, and causes the service to which such party is
affiliated to terminate all exclusivity obligations that may be contained in the agreement
between the Partnership and such service. Each of the Road Runner Agreement, the @Home
Agreement and the Internet Services Ancillary Agreement will be on terms and conditions
reasonably acceptable to each of the TWE-A/N and TCI, and the execution and delivery of the
Internet Services Ancillary Agreement shall be a condition precedent to the Partnership’s
obligation to execute the @Home Agreement and, if then requested, the Road Runner
Agreement. Until such time as the Partnership enters into the Road Runner Agreement (or an
Interim Agreement, as defined below), TWE-A/N agrees that the TWE-A/N Systems will be
entitled to distribute ServiceCo’s Internet Services pursuant to the Master Affiliation
Agreement dated as of June 15, 1998, between ServiceCo and TWE-A/N (the “Master Affiliation
Agreement”); provided, however, that if TWE-A/N notifies the Partnership that the Master
Affiliation Agreement is proposed to be amended, modified or changed (or ServiceCo’s
compliance with the terms thereof waived) in a manner which is or is likely to be
materially detrimental, operationally or economically, to the Partnership (considering all
prior and contemporaneous amendments, modifications and changes), then, at the request of
TWE-A/N or TCI, the Partnership will enter into an interim affiliation agreement (an
“Interim Agreement”) with ServiceCo which contains terms and conditions that are identical
to those contained in the Master Affiliation Agreement prior to such proposed amendment.
Such Interim Agreement will terminate automatically and without further action of the
parties thereto upon the execution and delivery of a Roadrunner Agreement entered into in
accordance with the terms of this Section 6.4(a). TWE-A/N shall deliver to the Partnership
and TCI a copy of each proposed amendment, modification, change or waiver to the Master
Affiliation Agreement prior to the effectiveness thereof. Further, until such time as the
Partnership enters into the Road Runner Agreement or an Interim Agreement, TWE-A/N will not
amend, modify, change or add to any terms or conditions of any other ServiceCo operative
document (or waive ServiceCo’s compliance therewith), which terms or conditions are
applicable to or affect the affiliation relationship between ServiceCo and cable system
operators affiliated with TWE-A/N, in a manner materially detrimental, operationally or
economically, to the Partnership (considering all prior and contemporaneous amendments,
modifications and changes) as measured against the terms set forth in the Master
Affiliation Agreement as supplemented by that certain Certificate of TWE-A/N to the
Partnership and TCI dated as of December 11, 1998. Nothing herein shall affect the
Partnership’s agreement that only @Home will provide or

 

5

	 	 	 	distribute Exclusive Internet Services using the cable plant and equipment of the TCI
Systems and that only ServiceCo will provide or distribute Exclusive Internet Services
using the cable plant and equipment of the TWE-A/N Systems, in each case as set forth as
set forth in the first two sentences of this Section 6.4(a).”

          9. The Partnership Agreement is hereby amended by adding a new Section 6.10 to read in its
entirety as follows:

          “6.10 Operating Support and Consulting Services. Notwithstanding anything
herein or in the Management Agreement to the contrary, upon request by the General Manager,
TCI agrees to cause its appropriate Affiliate to negotiate in good faith with the General
Manager regarding the terms of a services agreement pursuant to which such Affiliate of TCI
would provide, in one or more Systems of the Partnership, such operating, support and
consulting services as the General Manager reasonably determines would be more efficiently
provided by such Affiliate of TCI than by the General Manager. In addition, upon the
request of an Affiliate of TCI, the General Manager, for and in the name and on behalf of
the Partnership, agrees to negotiate in good faith with the appropriate Affiliate of TCI
regarding the terms of a services agreement pursuant to which the Partnership, utilizing
the services of the General Manager, would provide, in one or more Systems of such
Affiliate of TCI, such operating, support and consulting services as such Affiliate of TCI
reasonably determines would be more efficiently provided by the Partnership than by such
Affiliate of TCI. If any services agreement contemplated by this Section 6.10 is entered
into, each Partner agrees to execute and deliver, or to cause the Partnership to execute
and deliver, such certificates, agreements and documents, in form and substance reasonably
satisfactory to such Partner, and to take such other actions, or to cause the Partnership
to take such other actions, as may reasonably be required in connection with the entry into
such services agreement and the achievement of its purposes.”.

          10. Section 7.2 of the Partnership Agreement is hereby amended by deleting the word “and”
appearing at the end of clause (c) thereof, and by adding the following at the end of such Section
after the words “following such Transfer” and before the period:

          ”; and

              (e) any Transfer of Interests contemplated by any pledge or similar security
agreement to be entered into by the Partners in connection with the Senior Credit
Agreement or any renewal, extension, modification or refinancing of the Senior
Credit Agreement”.

 

6

          11. This Amendment shall become effective as of the date hereof.

          12. Except as otherwise expressly provided in this Amendment, all of the terms, conditions and
provisions of the Partnership Agreement shall remain the same, the Partnership Agreement, as
amended hereby, shall continue in full force and effect and this Amendment and the Partnership
Agreement shall be read and construed as one instrument.

          13. This Amendment shall be governed by and construed in accordance with the internal laws of
the State of Delaware (other than its rules of conflicts of law to the extent that the application
of the laws of another jurisdiction would be required thereby).

          14. This Amendment may be executed in one or more counterparts, each of which when so executed
shall be deemed an original and all of which, when taken together, shall constitute one and the
same instrument.

 

7

          IN WITNESS WHEREOF, the Partners have caused this Amendment to be executed as of the date
first written above.

	 	 	 
	 

	 	TCI TEXAS CABLE HOLDINGS LLC

	 	 	 
	 

	 	By: Heritage Cablevision of Texas, Inc.
as its manager

	 	 	 
	 

	 	By: /s/ Stephen M. Brett
	 

	 	Name: Stephen M. Brett
	 

	 	Title: Vice President

	 	 	 
	 

	 	TCI TEXAS CABLE, INC.

	 	 	 
	 

	 	By: /s/ Stephen M. Brett
	 

	 	Name: Stephen M. Brett
	 

	 	Title: Vice President

[Signature Page to Amendment No. 1 to Partnership Agreement]

 

8

          IN WITNESS WHEREOF, the Partners have caused this Amendment
to be executed as of the date first written above.

	 	 	 
	 

	 	TIME WARNER ENTERTAINMENT -

ADVANCE/NEWHOUSE PARTNERSHIP

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	Time Warner Entertainment Company, L.P.
	 	 	 	 	as its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ David E. O’Hayre	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	David E. O’Hayre,	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Senior Vice President	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Investments — Time Warner Cable	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Ventures Division	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TWE-A/N TEXAS CABLE PARTNERS

GENERAL PARTNER LLC	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ David E. O’Hayre	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	David E. O’Hayre,	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Vice President	 	 	 	 	 	 

[Signature Page to Amendment No. 1 to Partnership Agreement]

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