Document:

<PAGE>   1
                                                                  EXHIBIT 10.2

                           AMENDMENT AND WAIVER NO. 3
                  TO THE AMENDED AND RESTATED CREDIT AGREEMENT

                                        Dated as of September 29, 2000

         AMENDMENT AND WAIVER NO. 3 TO THE AMENDED AND RESTATED CREDIT AGREEMENT
(this "Amendment") among Classic Cable, Inc., a Delaware corporation (the
"Borrower"), the banks, financial institutions and other institutional lenders
parties to the Credit Agreement referred to below (collectively, the "Lenders")
and Union Bank of California, N.A., as agent (the "Agent") for the Lenders.

         PRELIMINARY STATEMENTS:

         (1) The Borrower, the Lenders, the Agent, Goldman Sachs Credit Partners
L.P., as Lead Arranger and Syndication Agent, and The Chase Manhattan Bank, as
Documentation Agent, have entered into an Amended and Restated Credit Agreement
dated as of July 28, 1999, as amended by Amendment and Waiver No. 1 dated as of
November 15, 1999 and by Amendment and Waiver No. 2 dated as of January 31, 2000
(as so amended, the "Credit Agreement"). Capitalized terms not otherwise defined
in this Amendment have the same meanings as specified in the Credit Agreement.

         (2) The Borrower has requested that Majority Lenders agree to amend
certain of the financial covenants and to further amend the Credit Agreement as
hereinafter set forth.

         (3) The Majority Lenders are, on the terms and conditions stated below,
willing to grant the requests of the Borrower and to amend the Loan Documents as
hereinafter set forth.

         SECTION 1. Amendments to the Credit Agreement. Effective as of the date
hereof and subject to the satisfaction of the conditions precedent set forth in
Section 3, the Majority Lenders hereby agree to amend the Credit Agreement as
follows:

         (a) The definition of "Applicable Margin" in Section 1.1 is amended in
full to read as follows:

         "Applicable Margin": (a) with respect to Revolving Loans and Term A
Loans, for each LIBOR Loan and for each Base Rate Loan as set forth below:

<TABLE>
<CAPTION>
        Maximum
        Total Debt Ratio         LIBOR      Base Rate
        ----------------         -----      ---------
<S>                              <C>        <C>
        1 (>=7.00:1)             +3.000%     +2.000%
        2 (<7.00:1->=6.50:1)     +2.750%     +1.750%
        3 (<6.50:1->=6.00:1)     +2.500%     +1.500%
        4 (<6.00:1->=5.50:1)     +2.250%     +1.250%
        5 (<5.50:1->=5.00:1)     +2.000%     +1.000%
        6 (<5.00:1)              +1.750%     +0.750%
</TABLE>

<PAGE>   2

                  and (b) with respect to Term B Loans and Term C Loans, +3.250%
         for each LIBOR Loan and +2.250% for each Base Rate Loan.

         (b) The definition of "Operating Cash Flow" in Section 1.1 is amended
by adding to the end thereof the following:

                  plus (e) extraordinary, non-recurring or unusual losses or
         expenses deducted in computing Operating Cash Flow for the period
         ending on December 31, 2000 and resulting from business
         rationalizations and rescaling of overhead as provided in Schedule 1.1A
         and in an amount not to exceed $3,000,000, provided that (x) the
         Borrower's independent public accountants shall have audited the
         amounts described in this clause (e) and (y) the Borrower shall have
         provided to the Agent and the Lenders on or prior to December 31, 2000
         a detailed pro forma account of such extraordinary, non-recurring or
         unusual losses or expenses.

         (c) The reference to Section 2.06(f) appearing in the last line of
Section 2.7(b)(ii) is hereby replaced with a reference to Section 2.7(f).

         (d) Subsection (v) of Section 5.9 is amended by deleting such
subsection in its entirety and substituting therefor the following:

                  (v) the Term A Loans made after the Term A Reset Date shall be
         used to fund Permitted Acquisitions.

         (e) Section 6.1(a) is amended by deleting the table contained therein
and substituting therefor the following table:

<TABLE>
<CAPTION>
                 Period                                        Ratio
                 ------                                        -----
<S>                                                            <C>
Closing Date to and including June 30, 2000                    7.00:1
July 1, 2000 to and including December 31, 2000                7.50:1
January 1, 2001 to and including December 31, 2001             6.90:1
January 1, 2002 to and including December 31, 2002             6.75:1
January 1, 2003 to and including December 31, 2003             6.50:1
January 1, 2004 to and including December 31, 2004             6.00:1
January 1, 2005 and thereafter                                 5.50:1
</TABLE>

         (f) Section 6.1(b) is amended by deleting the table contained therein
and substituting therefor the following table:

<TABLE>
<CAPTION>
                 Period                                        Ratio
                 ------                                        -----
<S>                                                            <C>
Closing Date to and including June 30, 2000                    4.50:1
July 1, 2000 and thereafter                                    3.00:1
</TABLE>

         (g) Section 6.1(c) is amended by deleting the table contained therein
and substituting therefor the following table:

                                       2
<PAGE>   3

<TABLE>
<CAPTION>
                 Period                                        Ratio
                 ------                                        -----
<S>                                                            <C>
Closing Date to and including June 30, 2000                    1.35:1
July 1, 2000 to and including March 31, 2001                   1.25:1
April 1, 2001 to and including June 30, 2001                   1.30:1
July 1, 2001 to and including December 31, 2001                1.45:1
January 1, 2002 to and including December 31, 2002             1.55:1
January 1, 2003 and thereafter                                 1.65:1
</TABLE>

                  (h) Section 6.1(f) is amended by deleting the figure
"$65,000,000" set opposite the period "Fiscal Year Ending December 31, 2000" and
substituting therefor the figure "$75,000,000".

                  (i) A new Schedule 1.1A is added in the form of Schedule 1.1A
to this Amendment.

                  SECTION 2. Waiver of the Credit Agreement. Effective as of the
date hereof and subject to the satisfaction of the conditions precedent set
forth in Section 3, the Majority Lenders hereby (a) agree to waive the
restrictions of Section 6.5 of the Credit Agreement solely to permit the
Borrower to enter into Sale-Leaseback of Tower Assets transactions provided that
(i) the Borrower is in compliance with the proviso set forth in Section 6.5 of
the Credit Agreement, (ii) the Borrower has entered into a binding contract with
a single buyer no later than March 31, 2001 for the Sale-Leaseback of Tower
Assets permitted hereby, (iii) the consummation of the Sale-Leaseback of Tower
Assets with respect to not less than 50% of the aggregate purchase price of the
Sale-Leaseback of Tower Assets permitted hereby shall have occurred not later
than March 31, 2001, the proceeds of which shall be applied in accordance with
subsection (b) below and (iv) the consummation of the Sale-Leaseback of Tower
Assets with respect to the remainder of the aggregate purchase price of the
Sale-Leaseback of Tower Assets as determined by the Borrower to be consummated
(which may exclude a de minimis number of towers under the contract referred to
in clause (ii) above) permitted hereby shall have occurred not later than April
30, 2001 and (b) agree that, for purposes of compliance with Sections 2.7(b)(ii)
and (iii) of the Credit Agreement, until the earlier of April 30, 2001 and the
date on which the Borrower determines the Sale-Leaseback of Tower Assets
described in clause (a) (iv) above (which the Borrower has determined to
consummate) is completed (such earlier date being the "Application Date"), 50%
of the Net Proceeds of the Sale-Leaseback of Tower Assets that are described in
clause (a) (iii) above or that are received by the Borrower prior to the
Application Date shall be applied to prepay the Loans and 50% of such Net
Proceeds shall be deposited into the Cash Collateral Account and, on the
Application Date, such Net Proceeds as have been deposited in the Cash
Collateral Account, together with any Net Proceeds of the Sale-Leaseback of
Tower Assets described in clause (a) (iv) above that have not yet been applied
to prepay the Loans shall be applied to prepay the Loans in accordance with the
applicable provisions of Section 2.7(b)(ii) and Section 2.7(b)(iii) of the
Credit Agreement; provided that the Maximum Total Debt Ratio in such sections
shall be calculated after giving effect to the application of the Net Proceeds
of the Sale-Leaseback of Tower Assets previously applied to prepay the Loans.
Any Net Proceeds of the Sale-Leaseback of Tower Assets remaining in the

                                       3
<PAGE>   4

Cash Collateral Account after all prepayments of the Loans required pursuant to
this Section 2, shall be returned to the Borrower.

         If the Application Date falls after March 31, 2001, all calculations of
the Maximum Total Debt Ratio, the Maximum Senior Debt Ratio, the Total Interest
Coverage Ratio, the Fixed Charge Coverage Ratio and the Pro Forma Debt Service
Coverage Ratio shall be made on a pro forma basis as if any amounts that were
applied to prepay Loans on or prior to the Application Date in accordance with
clause (b) above have been so applied on March 31, 2001.

         SECTION 3. Conditions of Effectiveness. This Amendment shall become
effective as of the date first above written when, and only when (a) the Agent
shall have received counterparts of this Amendment executed by the Borrower and
the Majority Lenders or, as to any of the Lenders, advice satisfactory to the
Agent that such Lender has executed this Amendment and the consent attached
hereto executed by each Guarantor and (b) an amendment fee equal to 0.25% of (i)
the aggregate Revolving Loan Commitments, (ii) the aggregate Term A Commitments,
(iii) the aggregate principal amount of the Term B Loans and (iv) the aggregate
principal amount of the Term C Loans , in each case, of the Lenders that consent
to the effectiveness of this Amendment shall have been paid to the Agent for the
account of such Lenders.

This Amendment is subject to the provisions of Section 9.1 of the Credit
Agreement.

         SECTION 4. Representations and Warranties of the Borrower. The Borrower
represents and warrants as follows:

         4.1 Organization and Good Standing.

         The Borrower and each Subsidiary (a) is duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization, (b) has all requisite power and authority (corporate, partnership,
limited liability company and otherwise) to own its properties and to conduct
its business as now conducted and as currently proposed to be conducted and (c)
is duly qualified to conduct business as a foreign organization and is currently
in good standing in each state and jurisdiction in which it conducts business.

         4.2 Power and Authority.

         The Borrower and each Subsidiary has all requisite power and authority
under applicable law and under its Organic Documents to execute, deliver and
perform its respective obligations under the Loan Documents to which it is a
party. All actions, waivers and consents (corporate, regulatory and otherwise)
necessary or appropriate for the Borrower and each Subsidiary to execute,
deliver and perform this Amendment, the Consent and the Loan Documents to which
it is a party have been taken and/or received.

         4.3 Validity and Legal Effect.

         This Amendment and the Credit Agreement, as modified hereby,
constitutes, and the other Loan Documents to which the Borrower or any
Subsidiary is a party constitute (or will constitute when executed and
delivered), the legal, valid and binding obligations of the Borrower

                                       4
<PAGE>   5

or such Subsidiary, as applicable, enforceable against it in accordance with the
terms thereof, except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability
affecting the enforcement of creditors' rights and (b) the application of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

         4.4 No Violation of Laws or Agreements.

         The execution, delivery and performance of this Amendment and the Loan
Documents by the Borrower and its Subsidiaries (a) will not violate or
contravene any Requirement of Law, (b) will not result in any material breach or
violation of, or constitute a material default under, any agreement or
instrument by which the Borrower or any Subsidiary, or any of its property, may
be bound, and (c) will not result in or require the creation of any Lien (other
than those permitted by Section 6.3 of the Credit Agreement) upon or with
respect to any property of the Borrower or any Subsidiary, whether such property
is now owned or hereafter acquired.

         4.5 Litigation and Legal Proceedings.

         Except as disclosed on Schedule 3.10 to the Credit Agreement, there is
no litigation, claim, investigation, administrative proceeding, labor
controversy or similar action that is pending or, to the knowledge of the
Borrower, threatened (i) with respect to this Amendment or any Loan Document or
the transactions contemplated thereby or (ii) against the Borrower, any
Subsidiary or any Property that (in the case of this clause (ii)), if adversely
resolved, could (either individually or in the aggregate) have a Material
Adverse Effect.

         SECTION 5. Reference to and Effect on the Loan Documents. (a) On and
after the effectiveness of this Amendment, each reference in the Credit
Agreement to "this Agreement", "hereunder", "hereof" or words of like import
referring to the Credit Agreement, and each reference in the Notes and each of
the other Loan Documents to "the Credit Agreement", "thereunder", "thereof" or
words of like import referring to the Credit Agreement shall mean and be a
reference to the Credit Agreement, as modified by this Amendment.

         (b) The Credit Agreement, as specifically amended by this Amendment,
and each of the other Loan Documents are and shall continue to be in full force
and effect and are hereby in all respects ratified and confirmed. Without
limiting the generality of the foregoing, the Collateral Documents and all of
the Collateral described therein do and shall continue to secure the payment of
all Obligations of the Loan Parties under the Loan Documents, in each case as
amended by this Amendment.

         (c) The execution, delivery and effectiveness of this Amendment shall
not, except as expressly provided herein, operate as a waiver of any right,
power or remedy of any Lender or the Agent under any of the Loan Documents, nor
constitute a waiver of any provision of any of the Loan Documents.

         SECTION 6. Costs and Expenses. The Borrower agrees to pay on demand all
reasonable costs and out-of-pocket expenses of the Agent in connection with the
preparation, execution, delivery and administration, modification and amendment
of this Amendment and the

                                       5
<PAGE>   6

other instruments and documents to be delivered hereunder (including, without
limitation, the reasonable fees and expenses of counsel for the Agent) in
accordance with the terms of Section 9.5 of the Credit Agreement.

         SECTION 7. Execution in Counterparts. This Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute but one and the same agreement.
Delivery of an executed counterpart of a signature page to this Amendment by
telecopier shall be effective as delivery of a manually executed counterpart of
this Amendment.

         SECTION 8. Governing Law. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York.

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                    CLASSIC CABLE, INC.

                                    By /s/ STEVEN E. SEACH
                                       -----------------------------------------
                                           Steven E. Seach
                                    Title: President and Chief Financial Officer

AGREED:

UNION BANK OF CALIFORNIA, N.A.,
as Agent and as Lender

By /s/ SETH YAKATAN
   -------------------------------
       Seth Yakatan
Title: Assistant Vice President

GOLDMAN SACHS CREDIT PARTNERS L.P.

By /s/
   -------------------------------

Title:

THE CHASE MANHATTAN BANK

By /s/
   -------------------------------

Title:

AGREED:

----------------------------------
(Type or Print Name of Institution)

By
   -------------------------------

Title:

                                       6
<PAGE>   7

                                     CONSENT

                                        Dated as of September 29, 2000

         The undersigned, each a Guarantor under the Amended and Restated
Guarantee dated as of July 29, 1999 (the "Guarantee") in favor of the Agent, for
its benefit and the benefit of the Lenders parties to the Credit Agreement
referred to in the foregoing Amendment and the Hedge Banks (as defined in the
Guarantee), hereby consent to such Amendment and hereby confirm and agree that
(a) notwithstanding the effectiveness of such Amendment, the Guarantee is, and
shall continue to be, in full force and effect and is hereby ratified and
confirmed in all respects, except that, on and after the effectiveness of such
Amendment, each reference in the Guarantee to the "Credit Agreement",
"thereunder", "thereof" or words of like import shall mean and be a reference to
the Credit Agreement, as modified by such Amendment, and (b) the Collateral
Documents to which each such Guarantor is a party and all of the Collateral
described therein do, and shall continue to, secure the payment of all of the
Secured Obligations (in each case, as defined therein).

                                   CLASSIC CABLE HOLDING, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   CLASSIC TELEPHONE, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   UNIVERSAL CABLE HOLDINGS, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   UNIVERSAL CABLE COMMUNICATIONS INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                       7
<PAGE>   8

                                   UNIVERSAL CABLE OF BEAVER, OKLAHOMA, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   UNIVERSAL CABLE MIDWEST, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   WT ACQUISITION CORPORATION

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   W.K. COMMUNICATIONS, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   TELEVISION ENTERPRISES, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                       8
<PAGE>   9

                                   BLACK CREEK MANAGEMENT, L.L.C.

                                   By: Classic Cable, Inc.,
                                       its sole member

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   BLACK CREEK COMMUNICATIONS, L.P.

                                   By: Black Creek Management, L.L.C.,
                                       its General Partner

                                   By: Classic Cable, Inc.,
                                       its sole member

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   CLASSIC CABLE OF OKLAHOMA, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   FRIENDSHIP CABLE OF ARKANSAS, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                       9
<PAGE>   10

                                   FRIENDSHIP CABLE OF TEXAS, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   CORRECTIONAL CABLE TV, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                   CALLCOM 24, INC.

                                   By /s/ STEVEN E. SEACH
                                      ------------------------------------------
                                   Name: Steven E. Seach
                                   Title: President and Chief Financial Officer

                                       10<PAGE>   1
                                                                    EXHIBIT 10.3

                          CLASSIC COMMUNICATIONS, INC.

                   EMPLOYEE LOAN/STOCK PURCHASE INCENTIVE PLAN

1.       PURPOSE

The Classic Communications, Inc. Employee Loan/Stock Purchase Incentive Plan
(the "Plan") is intended to (i) encourage and facilitate ownership of shares of
the Class A common stock of Classic Communications, Inc. (the "Company") by
officers and other key employees of the Company and its Subsidiaries, (ii)
provide those employees with a stronger, more immediate focus on shareholder
value creation, (iii) create a working environment where participating employees
of the Company and its Subsidiaries share in the same risks and rewards as the
Company's other shareholders, and (iii) create a retention vehicle by:

o        providing participating employees of the Company and its Subsidiaries
         with an opportunity to significantly increase their ownership of the
         Class A common stock of the Company coupled with incentive awards based
         on the performance of the Company and its Class A common stock and

o        providing this opportunity in a manner that places participating
         employees at risk in the event of inadequate Company performance.

2.       DEFINITIONS

Except where the content otherwise indicates, the following definitions apply:

"Board" means Board of Directors of the Company.

"Commission" means the Securities and Exchange Commission.

"Committee" means the Compensation and Benefits Committee of the Board or such
other committee of the Board as may be designated by the Board.

"Common Stock" means the Class A common stock, $0.01 par value per Share, of the
Company.

"Company" means Classic Communications, Inc., a Delaware corporation, or any
successor corporation.

"Effective Date" means the date the Plan is adopted by the Board.

<PAGE>   2

"1934 Act" means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated by the Commission thereunder.

"Participant" means each eligible employee of the Company or any of its
Subsidiaries who is designated by the Committee to participate in the Plan.

"Plan" means this Classic Communications, Inc. Employee Loan/Stock Purchase
Incentive Plan, as amended from time to time in accordance with the Plan's
provisions.

"Plan Agreement" means that certain Agreement between a Participant and the
Company substantially in the form of Exhibit B.

"Recourse Loan" means an extension of credit to the Participant by the Company
evidenced by a Recourse Note.

"Recourse Note" means a full recourse note with respect to the Recourse Loan in
substantially the same form as set forth on Exhibit A.

"Service" means employment as an employee or consultant with the Company or its
Subsidiaries.

"Subsidiary" means a corporation (or partnership, joint venture, or other
enterprise) of which the Company owns or controls, directly or indirectly, 50%
or more of the outstanding shares of stock normally entitled to vote for the
election of directors (or comparable equity or participation and voting power).

"Termination of Service" means a Participant's termination of Service such that
he or she is no longer an employee or consultant of either the Company or any of
its Subsidiaries for any reason whatsoever.

3.       MAXIMUM LOAN AMOUNT UNDER THE PLAN

The aggregate loan amount under the Plan shall not exceed $5,000,000.

4.       TERM OF THE PLAN

The Plan shall become effective on the Effective Date. The Plan shall be
terminated on the expiration of the last outstanding Recourse Note.

5.       ELIGIBLE PARTICIPANTS

                                        2
<PAGE>   3

The individuals who, in the opinion of the Committee, can materially influence
the long-term performance of the Company and/or its subsidiaries. The Committee
shall have the sole power and complete discretion to select the individuals
described above.

6.       ELIGIBLE LOAN AMOUNT

Unless otherwise determined by the Committee, the maximum loan amount for each
Participant shall not exceed (i) for employees, their total cash compensation
for the year 1999, and (ii) for directors, $250,000.

7.       LOAN PROVISIONS

         (a)      General. The Company shall extend a Recourse Loan to a
                  Participant subject to the terms and conditions set forth in
                  this Section 7. Such Recourse Loan shall be evidenced by a
                  Recourse Note, in a form similar to Exhibit A, with full
                  recourse against the Participant as maker of the note. The
                  obligations of the Participant under the Re course Note shall
                  be unconditional and absolute and, without limiting the
                  generality of the foregoing, shall not be released, discharged
                  or otherwise affected by any change in the existence,
                  structure or owner ship of the Company.

                  Notwithstanding anything to the contrary in this Section 7,
                  the Company shall not be required to make any Recourse Loan
                  to a Participant if the making of such Recourse Loan will (i)
                  cause the Company to violate any covenant or similar provision
                  in any indenture, loan agreement or other agreement, or (ii)
                  violate any applicable federal, state or local law.

         (b)      Interest. The Recourse Loan will bear interest at the Base
                  Rate as defined on the date of the Recourse Note in Classic
                  Cable, Inc.'s senior credit agreement dated as of July 28,
                  1998 plus 1.75%, plus 7% if the Participant either (i) sells,
                  assigns, transfers or otherwise disposes of the Restricted
                  Stock or (ii) resigns from or is involuntarily terminated from
                  employment with the Company, as further defined in the
                  Participant's Recourse Note.

         (c)      Term. The term of the Recourse Loan for any Participant shall
                  begin on the date of such Recourse Note and shall become due
                  and payable on the 7th anniversary of such date (the "Maturity
                  Date").

                                        3

<PAGE>   4

         (d)      Prepayment. The Recourse Loan may be prepaid at any time
                  without any premium or penalty.

         (e)      Acceleration. The Recourse Loan may be accelerated as provided
                  for in the Participant's Recourse Note.

         (f)      Repayment of Market Appreciation. Upon the earlier of (i)
                  three (3) years after the date of the Participant's Recourse
                  Note or (ii) the date of a Change of Control (as defined
                  below), of Classic Communications, Inc., any after-tax profit
                  realized by the Participant as a result of any Restricted
                  Stock being directly or indirectly sold, contracted to be
                  sold, transferred, assigned or otherwise disposed of by the
                  Participant will be required to be repaid to the Company
                  within two (2) business days after the receipt of such
                  proceeds; provided, however, that this Section 7(f) will not
                  apply in the event that the Participant is terminated without
                  "Cause" (as hereinafter defined). For purposes of this Section
                  7(f), "Cause" shall mean (i) the willful and continued failure
                  by the Participant to substantially perform his duties with
                  the Company (other than any such failure resulting from the
                  Participant's incapacity due to physical or mental illness),
                  after demand for substantial performance is delivered by the
                  Company that specifically identifies the manner in which the
                  Company believes the Participant has not substantially
                  performed his duties, or (ii) the willful engaging by the
                  Participant in conduct that is demonstrably and materially
                  injurious to the company or its subsidiaries, monetarily or
                  otherwise. For purposes of this paragraph, no act, or failure
                  to act, on the Participant's part shall be considered
                  "willful" unless done, or omitted to be done, by him not in
                  good faith and without reasonable belief that his action or
                  omission was in the best interest of the Company.
                  Notwithstanding the foregoing, the Participant will not be
                  deemed to have been terminated for Cause without (1)
                  reasonable notice to the Participant setting forth the reasons
                  for the Company's intention to terminate for Cause, (2) an
                  opportunity for the Participant, together with his counsel, to
                  be heard before the Board, and (3) delivery to the Participant
                  of a "Notice of Termination" (as hereinafter defined), from
                  the Board finding that in good faith opinion of three-quarters
                  (3/4) of the Board the Participant was guilty of conduct set
                  forth above in clause (i) or (ii) hereof, and specifying the
                  particulars thereof in detail. A "Notice of Termination" shall
                  mean a notice (communicated to the Participant in accordance
                  with Section 7 hereof), which shall set forth in reasonable
                  detail the facts and circumstances claimed to provide a basis
                  for termination of

                                        4

<PAGE>   5

                  the Participant's employment for Cause. For the avoidance of
                  doubt, the provisions of this Section 7(f) will not apply to a
                  sale of stock in connection with a Change of Control. For
                  purposes of this Section 7(f), a Change of Control will have
                  the meaning set forth in the Company's 1999 Omnibus Stock
                  Incentive Plan.

         (g)      The Participant agrees to notify the Company of any shares of
                  Restricted Stock sold, assigned, transferred or otherwise
                  disposed of and if requested by the Company, further agrees to
                  the placement of a legend on each certificate representing the
                  shares of Restricted Stock, which legend shall include,
                  without limitation, references to the provisions of the Stock
                  Loan Plan restricting the sale, assignment, transfer or
                  disposition of shares of Restricted Stock.

8.       PLAN ADMINISTRATION

The Plan shall be administered by the Committee. Subject to the provisions of
the Plan, the Committee shall interpret the Plan and make such rules as it deems
necessary for the proper administration of the Plan, shall make all other
determinations necessary or advisable for the administration of the Plan and
shall correct any defect or supply any omission or reconcile any inconsistency
in the Plan in the manner and to the extent that the Committee deems desirable
to carry the Plan into effect. Among other things, the Committee shall have the
authority, subject to the terms of the Plan, to determine (i) the individuals to
whom the Recourse Loans are extended, (ii) the times at which the Recourse Loans
are extended, (iii) the basis for any Termination of Service, and (iv) the
forms, terms and provisions of any documents under the Plan, including amending
or modifying the terms of the Plan. Any action taken or determination made by
the Committee pursuant to this paragraph and the other paragraphs of the Plan in
which the Committee is given discretion shall be final and conclusive on all
parties. The act or determination of a majority of the Committee shall be deemed
to be the act or determination of the entire Committee. The Commit tee may
consult with counsel, who may be counsel to the Company, and such other advisors
as the Committee may deem necessary and/or desirable, and the members of the
Committee shall not incur any liability for any action taken in good faith in
reliance upon the advice of counsel or any other advisor.

9.       AMENDMENT AND DISCONTINUANCE OF THE PLAN

The Board, upon the recommendation of the Committee, may amend, suspend or
terminate the Plan at any time, subject to the provisions of this Section 9. No
amendment, suspension or termination of the Plan may, without the consent of a

                                        5

<PAGE>   6

Participant, adversely affect such Participant's rights under the Plan in any
material respect.

10.      MISCELLANEOUS PROVISIONS

         (a)      NOT AN EMPLOYMENT CONTRACT. NOTHING IN THE PARTICIPANT'S
                  RECOURSE NOTE SHALL CONFER UPON THE PARTICIPANT THE RIGHT TO
                  CONTINUE IN THE EMPLOYMENT OF THE COMPANY OR ANY OF ITS
                  AFFILIATES OR AFFECT ANY RIGHTS WHICH THE COMPANY OR ANY
                  COMPANY AFFILIATE MAY HAVE TO TERMINATE THE EMPLOYMENT OF THE
                  PARTICIPANT.

         (b)      Nonassignability. No person shall have any right to commute,
                  sell, assign, transfer, pledge, anticipate, mortgage or
                  otherwise encumber, hypothecate or convey in advance of actual
                  receipt the loan amount, if any, payable under the Plan, or
                  any part thereof, or any interest therein, which are, and all
                  rights to which are, expressly declared to be unassignable and
                  nontransferable. No portion of the amounts payable shall,
                  prior to actual payment, be subject to seizure, attachment,
                  lien or sequestration for the payment of any debts, judgments,
                  alimony or separate maintenance owed by a Participant or any
                  other person, nor be transferable by operation of law in the
                  event of the Participant's or any other person's bankruptcy or
                  insolvency. Any such transfer or attempted transfer in
                  violation of the preceding provisions shall be considered null
                  and void. In addition, no derivative security (as defined in
                  Rule 16a-1 (c), as promulgated by the Commission under the
                  1934 Act, or any successor definition adopted by the
                  Commission) issued under the Plan shall be transferable by a
                  Participant (to the extent transferable under the Plan) other
                  than by will or the laws of descent and distribution or
                  pursuant to a qualified domestic relations order as defined by
                  the Code, or Title I of the Employee Retirement Income
                  Security Act of 1974 or the rules promulgated thereunder.

         (c)      Separability, Validity. Transactions under this Plan are
                  intended to qualify under Rule 16b-3 of the 1934 Act. If any
                  of the terms or provisions of this Plan conflict with the
                  requirements of Rule 16b-3, then such terms and provisions
                  shall be deemed inoperative to the extent they so conflict
                  with such requirements. In the event that any

                                       6

<PAGE>   7

                  provision of the Plan is held to be invalid, void or
                  unenforceable, the same shall not affect, in any respect
                  whatsoever, the validity of any other provision of the Plan.

         (d)      Inurement of Rights and Obligations. The rights and
                  obligations under the Plan shall inure to the benefit of, and
                  shall be binding upon, the Company, its successors and
                  assigns, and the Participants and their beneficiaries.

         (e)      GOVERNING LAW. THE PROVISIONS OF THE PARTICIPANT'S RECOURSE
                  NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
                  LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE
                  CHOICE OF LAW PRINCIPLES THEREOF.

                                        7

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