Document:

EX-10.15 THIRD AMENDED AND RESTATED FUNDING AGRMT.

 

Exhibit 10.15

EXECUTION COPY

THIRD AMENDED AND RESTATED FUNDING AGREEMENT

          THIRD AMENDED AND RESTATED FUNDING AGREEMENT, dated as of December 28, 2001 (this
“Agreement”), by and among TEXAS CABLE PARTNERS, L.P., a Delaware limited partnership (the
“Partnership”), 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, together with TWE-A/N, the “TWE-A/N
Parties”), TCI TEXAS CABLE HOLDINGS LLC, a Colorado limited liability company (“TCI”),
TCI TEXAS CABLE, INC., a Colorado corporation (“TCI GP” and, together with TCI, the
“TCI Parties” and, together with the TWE-A/N Parties and TCI, the “Partners”), and
THE CHASE MANHATTAN BANK, as administrative agent under the Credit Agreement (as defined below)
(the “Administrative Agent”).

          WHEREAS, the Partnership and the Administrative Agent are parties to a Credit Agreement, dated
as of December 31, 1998 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”);

          WHEREAS, the Partnership has requested an amendment (the “Fifth Amendment”) to the
Credit Agreement to modify certain financial covenants of the Partnership under the Credit
Agreement;

          WHEREAS, the Administrative Agent and the Required Lenders (as defined in the Credit
Agreement) are willing to enter into the Fifth Amendment on certain terms and conditions,
including, among other things, the condition that the Partnership, the Partners and the
Administrative Agent execute and deliver this Agreement;

          WHEREAS, pursuant to the Funding Agreement, dated as of November 10, 2000, among the
Partnership, the Partners and the Administrative Agent, the Amended and Restated Funding Agreement,
dated as of December 22, 2000, among the Partnership, the Partners and the Administrative Agent,
and the Second Amended and Restated Funding Agreement, dated March 28, 2001, among the Partnership,
the Partners and the Administrative Agent (collectively, the “Prior Funding Agreements”),
the Partners have previously made subordinated loans to the Partnership in an aggregate amount
equal to $301,453,361.58 (the “Existing Subordinated Loans”), which amount includes certain
management fees payable by the Partnership to Time Warner Cable (“TWC”), a division of Time
Warner Entertainment Company, L.P., pursuant to the Management Agreement, dated as of December 31,
1998, between TWC and the Partnership (as amended, supplemented or otherwise modified from time to
time, the “Management Agreement”);

          WHEREAS, each of the Partners has agreed to make additional subordinated loans to the
Partnership on the terms and conditions set forth in this Agreement;

 

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          WHEREAS, the Partnership, the Partners and the Administrative Agent wish to amend and restate
the Second Amended and Restated Funding Agreement to, among other things, extend its effectiveness.

          NOW, THEREFORE, in consideration of the premises and the covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Amended and Restated Funding Agreement is hereby amended and restated in its
entirety to read as follows:

          1. Definitions. All capitalized terms used and not defined herein shall have the
meaning assigned to such terms in the Credit Agreement.

          2. Issuance of Notes Prior to the Date Hereof. Prior to the date hereof, the
Partnership issued certain promissory notes, substantially in the form attached hereto as
Exhibit A (each, a “Promissory Note”), to the Partners pursuant to the Prior
Funding Agreements. The parties hereby acknowledge that Schedule I hereto contains a true and
accurate list of all such Promissory Notes. The Partnership hereby confirms receipt of all
proceeds from the issuance of such Promissory Notes and its liability with respect thereto.

          3. Transfers of Promissory Notes Prior to the Date Hereof. Prior to the date hereof,
the Partners have transferred certain Promissory Notes issued pursuant to the Prior Funding
Agreements among themselves. Each of the Partnership and the Administrative Agent hereby confirm
that it consented to such assignments.

          4. Use of Proceeds of Notes. The Partnership represents that it has used the proceeds
of the Existing Subordinated Loans, and shall use the proceeds of any Promissory Notes issued
pursuant to Section 5, to fund capital expenditures, repay existing indebtedness and for general
corporate purposes, all in the ordinary course of business.

          5. Ongoing Funding Obligations.

               (a) Obligations Based on Financial Estimates. Each of the Partners agrees that, no
later than five business days following the receipt of the Monthly Budget described in Section
6(a), such Partner shall purchase, and the Partnership shall sell, a Promissory Note in an original
principal amount equal to the product of (i) such Partner’s Percentage Interest (as set forth on
Schedule II hereto), multiplied by (ii) the total amount of additional funding required by the
Partnership to meet the Partnership Obligations (as defined below).

               (b) Obligations Based on Actual Financials. If the TWC Documentation described in
Section 6(b)(i) or Section 6(b)(iii) shows that the Partnership requires additional funding, each
of the Partners hereby agrees that, no later than five business days following the receipt of any
documentation provided pursuant to Section 6(b)(i) or Section 6(b)(iii), such Partner shall
purchase, and the Partnership shall sell, a Promissory Note in an original principal amount equal
to the product of (i) such Partner’s

 

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Percentage Interest (as set forth on Schedule II hereto), multiplied by (ii) the total amount
of additional funding required by the Partnership to meet the Partnership Obligations. Each of the
Partners hereby agrees that, if the TWC Documentation described in Section 6(b)(i) or Section
6(b)(iii) shows that the Partnership has more capital than is required to meet the Partnership
Obligations then such additional capital shall remain in the Partnership.

               (c) Obligations with respect to Management Fees. No later than five business days
following the receipt of the TWC Documentation described in Section 6(b)(ii), (A) the Partnership
shall issue to TWE-A/N two Promissory Notes, each in an original principal amount equal to one-half
of the total amount of payments that the Partnership would have been required to make to TWC under
the Management Agreement but for this Agreement and (B) immediately following such issuance, TCI
shall purchase from TWE-A/N, and TWE-A/N shall sell and assign to TCI, one of the Promissory Notes
issued to TWE-A/N pursuant to the preceding clause (A), for a cash purchase price equal to the
original principal amount of such Promissory Note. Each of the Partnership and the Administrative
Agent hereby consents to such assignments.

               (d) Intent of the Parties. For purpose of clarity, it is the intent of the Partners
that each Partner provide funding to the Partnership pursuant to this Agreement in accordance with
such Partner’s Percentage Interest (as set forth on Schedule II hereto), such that, following the
making of all additional fundings pursuant to this Agreement, the TWE-A/N Parties, on the one hand,
and the TCI Parties, on the other hand, will have contributed an aggregate of 50% of all funding
under by this Agreement.

          6. TWC Documentation.

               (a) Documentation Related to Funding Estimates. On or prior to the fifth business day
of each month following the date hereof (other than January 2003), TWC shall deliver, or cause to
be delivered, to TCI and the Administrative Agent a monthly budget of the Partnership for such
month (the “Monthly Budget” and, collectively, the “Monthly Budgets”), which shall
show, among other things, the amount of estimated funding required by the Partnership for such
month to enable the Partnership to (A) comply with all of the covenants in the Credit Agreement,
and (B) fulfill all of its commitments and to pay all of its liabilities and obligations as such
liabilities and obligations mature during such month (collectively, the “Partnership
Obligations”); provided that none of the Monthly Budgets shall include the payments
that the Partnership would be required to make to TWC under the Management Agreement but for this
Agreement; and provided, further, the aggregate amounts set forth under clause (A)
for all of the Monthly Budgets during any fiscal quarter shall not be less than the estimated
Consolidated Cash Flow for the fiscal quarter during which such months occur minus the sum
of (I) the estimated Consolidated Interest Expense for the fiscal quarter during which such months
occur to the extent paid or payable in cash on a current basis and (II) the estimated Capital
Expenditures incurred or to be incurred for the fiscal quarter during which such months occur to
the extent paid or payable in cash (and not financed, other than with borrowings under the Credit
Agreement) on a current basis.

 

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               (b) Documentation of Actual Results.

               (i) On or prior to the fifth business day following the end of any month, TWC shall
deliver to each of the Partners and the Administrative Agent (A) an unaudited consolidated
income statement of the Partnership for the preceding month, complete with comparisons to
the Monthly Budget for such month, (B) an unaudited report of actual capital expenditures
for the preceding month, as compared to the capital expenditures provided for in the
Monthly Budget for such month and (C) an estimate of the amount of additional funds
required by the Partnership (if any) to meet the Partnership Obligations, in addition to
the amounts already funded by the Partners pursuant to Section 5.

               (ii) On or prior to the fifth business day following the end of any month, TWC shall
deliver to each of the Partners and the Administrative Agent an unaudited report of the
payments that the Partnership would have been required to make to TWC under the Management
Agreement but for this Agreement.

               (iii) On or prior to fifteenth day following termination of this Agreement, TWC shall
deliver to each of the Partners and the Administrative Agent (A) an unaudited consolidated
income statement of the Partnership for the year-to-date, complete with comparisons to the
Annual Budget (as defined in the Agreement of Limited Partnership, dated as of June 23,
1998, by and among the Partners (as amended from time to time, the “Partnership
Agreement”)), (B) an unaudited report of actual capital expenditures for the
year-to-date, as compared to the capital expenditures provided for in the Annual Budget and
(C) a determination of the amount of additional funds required by the Partnership (if any)
to meet the Partnership Obligations.

               (c) Certification of Documentation. All documentation delivered pursuant to this
Section 6 shall be certified as true and accurate in all material respects by the Chief Financial
Officer of TWC; provided that any documentation relating to estimates of the Partnership’s
future funding requirements shall not require such certification but shall be reasonably prepared
by TWC in good faith based on assumptions believed to be reasonable at the time made.

               7. Assumption of Management Fee Obligations. Subject to the terms and provisions of
this Agreement, the Partnership hereby assigns to TWE-A/N, and TWE-A/N hereby assumes, the
Partnership’s obligations under the Management Agreement to pay TWC management fees in respect of
services provided by TWC to the Partnership during the months of November 2001 through and
including December 2002.

               8. Limitation on Expenditures. The Partnership covenants and agrees that it will not
incur any cash expenditures from the date hereof until December 31, 2002, that are outside of the
normal course of business (other than any expenditures set forth in

 

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the Annual Budget of the Partnership approved in accordance with the Partnership Agreement),
without the prior written approval of the TCI Parties.

          9. Representations and Warranties. Each of the parties hereto, severally and not
jointly, represents and warrants as follows:

               (a) Organization and Qualification. Such party is duly organized and validly existing
under the laws of its state of organization and is duly qualified to do business under the laws of
each jurisdiction in which the ownership, leasing or use of its assets or the nature of its
activities makes such qualification necessary, except in any such jurisdiction where the failure to
be so qualified and in good standing would not have a material adverse effect on the ability of
such party to perform its obligations under this Agreement.

               (b) Authority and Validity. Such party has all requisite power and authority to
execute and deliver, and to perform its obligations under, this Agreement. The execution and
delivery of, and such party’s performance under, this Agreement have been duly and validly
authorized by all action by or on behalf of such party. This Agreement has been duly and validly
executed and delivered by such party and is a valid and binding obligation of such party,
enforceable against such party in accordance with its terms, except as the same may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in
effect relating to the enforcement of creditors’ rights generally or by principles governing the
availability of equitable remedies.

               (c) No Conflict; Required Consents. The execution and delivery of, and such party’s
performance under, this Agreement do not and will not: (a) conflict with or violate any provision
of the organizational documents of such party; (b) violate any laws, rules or regulations
applicable to such party; (c) require any consent, approval or authorization of, or filing of any
certificate, notice, application, report or other document with, any Governmental Authority or
other Person; or (d) (i) conflict with, violate, result in a breach of or constitute a default
under (without regard to requirements of notice, lapse of time or elections of other Persons or any
combination thereof), (ii) permit or result in the termination, suspension or modification of,
(iii) result in the acceleration of (or give any Person the right to accelerate) the performance of
it under, or (iv) result in the creation or imposition of any Lien under any contract or agreement
by which such party is bound or by which it or any of its assets is bound or affected, except, for
purposes of clauses (c) and (d), such consents, approvals, authorizations and filings that, if not
obtained or made, would not, and such violations, conflicts, breaches, defaults, terminations,
suspensions, modifications and accelerations as would not, individually or in the aggregate, have a
material adverse effect on the ability of such Partner to perform its obligations under this
Agreement.

          10. Termination. This Agreement shall terminate on the earlier of (a) January 15,
2003 (or, if later, the date on which each Partner has paid in full its pro rata portion of the
Partnership Obligations); and (b) such time as the Loans under the

 

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Credit Agreement shall have been refinanced and the Credit Agreement shall have been
terminated.

          11. Irrevocable Obligation. The obligations of the Partners under this Agreement are
for the benefit of the Lenders under the Credit Agreement as well as the Partnership, are
irrevocable and unconditional, shall be paid without set-off or counterclaim and shall not be
reduced, terminated or otherwise affected as a result of any event with respect to the Partnership
of a type referred to in Section 8(f) of the Credit Agreement or for any other reason. Each
Partner waives diligence, presentment, protest, demand for payment and notice of default or
nonpayment to or upon the Partnership or any Partner with respect to the obligations of the
Partners under this Agreement. This Agreement shall remain in full force and effect and be binding
in accordance with and to the extent of its terms upon the Partners and their successors and
assigns thereof until each Partner shall have paid in full its pro rata portion of the Partnership
Obligations.

          12. Miscellaneous.

               (a) Entire Agreement; Amendments. This Agreement contains the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior oral or written
agreements and understandings with respect to such subject matter. This Agreement may not be
amended or modified except by a writing signed by all of the parties hereto.

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

               (c) Submission to Jurisdiction. Any claim arising out of or relating to this
Agreement shall be instituted only in a Federal district court located in the State and City of New
York or a State court located in Manhattan County, State of New York and each party agrees not to
commence legal proceedings or otherwise proceed against any other party 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 party
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. Any and all service of process and
any other notice in any such claim shall be effective against any party 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 party as herein provided, or by personal service
on the Agent with a copy of such process mailed to such party by first class mail or registered or
certified mail, return receipt requested, postage prepaid.

 

7

               (d) Notices. Any notice or communication to be given under this Agreement to any of
the parties hereto shall be in writing. Such notice or communication shall have been deemed to
have been duly given or made when it shall have been delivered by hand, registered airmail or
facsimile to the party to which it is addressed at such party’s address or facsimile number
specified below or at such other address or facsimile number as such party shall have designated by
notice to the party giving such notice or communication.

     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

c/o 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

c/o Time Warner Cable

290 Harbor Drive

Stamford, CT 06902

Attention: Marc Apfelbaum

Telecopy No.: (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: Fred DiBlasio

Telecopy No: (303) 858-3456

Copy: Legal Department

 

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     With a copy to:

AT&T Corporation

295 North Maple Avenue

Basking Ridge, NJ 07920

Attention: Patrick Moletteri, Treasury Department

Telecopy No.: (908) 630-1965

     If to the Administrative Agent:

The Chase Manhattan Bank

Loan & Agency Services

One Chase Manhattan Plaza, 8th Floor

New York, New York 10081

Attention: Janet Belden

Telecopy No.: (212) 552-5658

     With a copy to:

The Chase Manhattan Bank

270 Park Avenue, 36th Floor

New York, New York 10017

Attention: Joan Fitzgibbon

Telecopy No.: (212) 270-4164

               (e) Assignment. This Agreement binds and benefits the respective successors and
assigns of the parties hereto, except that no party may assign or delegate any of its rights or
obligations under this Agreement without the prior written consent of the other parties.
Notwithstanding the foregoing, the TCI Parties may assign all, but not less than all, of their
rights and obligations under this Agreement to any TWE-A/N Party or any Affiliate of a TWE-A/N
Party pursuant to a written instrument (a copy of which shall be provided to the Administrative
Agent and the Partnership) in which the transferee agrees to be bound by this Agreement.

               (f) Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
agreement.

[Remainder of Page Intentionally Left Blank]

 

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          IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives,
have caused this Agreement to be signed in their respective names as of the date first above
written.

	 	 	 	 	 
	 	TEXAS CABLE PARTNERS, L.P.

 	 
	 	By:  	/s/ Carl U.J. Rossetti
 	 
	 	 	Name:  	Carl U.J. Rossetti 	 
	 	 	Title:  	Vice President 	 
	 
	 	TIME WARNER ENTERTAINMENT-ADVANCE/NEWHOUSE PARTNERSHIP
 	 
	 	By:	
Time Warner Entertainment Company, L.P.,

Managing Partner, through its Time Warner
Cable Division

 	 
	 	By:  	/s/ Carl U.J. Rossetti
 	 
	 	 	Name:  	Carl U.J. Rossetti 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	TWE-A/N TEXAS CABLE PARTNERS GENERAL PARTNER LLC

 	 
	 	By:  	/s/ Carl U.J. Rossetti
 	 
	 	 	Name:  	Carl U.J. Rossetti 	 
	 	 	Title:  	Vice President 	 
	 
	 	TCI TEXAS CABLE HOLDINGS LLC

 	 
	 	By:  	/s/ Alfredo DiBlasio
 	 
	 	 	Name:  	Alfredo DiBlasio 	 
	 	 	Title:  	 	 
	 
	 	TCI TEXAS CABLE, INC.

 	 
	 	By:  	/s/ Alfredo DiBlasio
 	 
	 	 	Name:  	Alfredo DiBlasio 	 
	 	 	Title:  	 	 
	 

 

10

	 	 	 	 	 
	 	THE CHASE MANHATTAN BANK

 	 
	 	By:  	/s/ Joan M. Fitzgibbon
 	 
	 	 	Name:  	Joan M. Fitzgibbon 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

SCHEDULE I

TCP Promissory Notes Issued to Partners

	 	 	 	 	 	 	 	 	 
	Promissory Note	 	 	 	 	 	Original Principal
	Number	 	Date of Issuance	 	Name of Holder	 	Amount
	1A1
	 	11/13/00	 	TWE-A/N	 	$	52,871,180.79	 
	2B
	 	11/13/00	 	TCI	 	$	52,871,180.79	 
	3
	 	12/22/00	 	TWE-A/N	 	$	3,070,485.00	 
	4
	 	12/22/00	 	TWE-A/N GP	 	$	31,015.00	 
	5
	 	12/22/00	 	TCI	 	$	3,070,485.00	 
	6
	 	12/22/00	 	TCI GP	 	$	31,015.00	 
	7
	 	1/4/01	 	TWE-A/N	 	$	10,804,365.00	 
	8
	 	1/4/01	 	TWE-A/N GP	 	$	109,135.00	 
	9
	 	1/4/01	 	TCI	 	$	10,804,365.00	 
	10
	 	1/4/01	 	TCI GP	 	$	109,135.00	 
	11
	 	2/14/01	 	TWE-A/N	 	$	11,406,780.00	 
	12
	 	2/14/01	 	TWE-A/N GP	 	$	115,220.00	 
	13
	 	2/14/01	 	TCI	 	$	11,406,780.00	 
	14
	 	2/14/01	 	TCI GP	 	$	115,220.00	 
	15
	 	2/14/01	 	TWE-A/N	 	$	629,500.00	 
	16A2
	 	2/14/01	 	TCI	 	$	629,500.00	 
	17
	 	3/14/01	 	TWE-A/N	 	$	10,614,780.00	 
	18
	 	3/14/01	 	TWE-A/N GP	 	$	107,220.00	 
	19
	 	3/14/01	 	TCI	 	$	10,614,780.00	 
	20
	 	3/14/01	 	TCI GP	 	$	107,220.00	 
	21
	 	3/14/01	 	TWE-A/N	 	$	689,000.00	 

 

			
	1	 	Note that Promissory Note Nos. 1A and 2B
were re-issuances of existing Promissory Notes (which were terminated)
following forgiveness of indebtedness of $60,500.00 by TWE-A/N and TCI in
connection with the Management Fee “true-up” pursuant to Section 5(c)(i) of the
Amended and Restated Funding Agreement.
	 
	2	 	Note that Promissory Note No. 16A was a
re-issuance of Promissory Note No. 16 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.

 

12

	 	 	 	 	 	 	 	 	 
	Promissory Note	 	 	 	 	 	Original Principal
	Number	 	Date of Issuance	 	Name of Holder	 	Amount
	22A3
	 	3/14/01	 	TCI	 	$	689,000.00	 
	23
	 	4/13/01	 	TWE-A/N	 	$	12,202,740.00	 
	24
	 	4/13/01	 	TWE-A/N GP	 	$	123,260.00	 
	25
	 	4/13/01	 	TCI	 	$	12,202,740.00	 
	26
	 	4/13/01	 	TCI GP	 	$	123,260.00	 
	27
	 	4/13/01	 	TWE-A/N	 	$	722,000.00	 
	28A4
	 	4/13/01	 	TCI	 	$	722,000.00	 
	29
	 	5/14/01	 	TWE-A/N	 	$	8,700,120.00	 
	30
	 	5/14/01	 	TWE-A/N GP	 	$	87,880.00	 
	31
	 	5/14/01	 	TCI	 	$	8,700,120.00	 
	32
	 	5/14/01	 	TCI GP	 	$	87,880.00	 
	33
	 	5/14/01	 	TWE-A/N	 	$	745,000.00	 
	34A5
	 	5/14/01	 	TCI	 	$	745,000.00	 
	35
	 	6/14/01	 	TWE-A/N	 	$	5,819,220.00	 
	36
	 	6/14/01	 	TWE-A/N GP	 	$	58,780.00	 
	37
	 	6/14/01	 	TCI	 	$	5,819,220.00	 
	38
	 	6/14/01	 	TCI GP	 	$	58,780.00	 
	39
	 	6/14/01	 	TWE-A/N	 	$	766,500.00	 
	40A6
	 	6/14/01	 	TCI	 	$	766,500.00	 

 

			
	3	 	Note that Promissory Note No. 22A was a
re-issuance of Promissory Note No. 22 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.
	 
	4	 	Note that Promissory Note No. 28A was a
re-issuance of Promissory Note No. 28 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.
	 
	5	 	Note that Promissory Note No. 34A was a
re-issuance of Promissory Note No. 34 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.
	 
	6	 	Note that Promissory Note No. 40A was a
re-issuance of Promissory Note No. 40 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.

 

13

	 	 	 	 	 	 	 	 	 
	Promissory Note	 	 	 	 	 	Original Principal
	Number	 	Date of Issuance	 	Name of Holder	 	Amount
	41
	 	7/17/01	 	TWE-A/N	 	$	5,871,690.00	 
	42
	 	7/17/01	 	TWE-A/N GP	 	$	59,310.00	 
	43
	 	7/17/01	 	TCI	 	$	5,871,690.00	 
	44
	 	7/17/01	 	TCI GP	 	$	59,310.00	 
	45
	 	7/17/01	 	TWE-A/N	 	$	771,000.00	 
	46A7
	 	7/17/01	 	TCI	 	$	771,000.00	 
	47
	 	8/15/01	 	TWE-A/N	 	$	7,062,660.00	 
	48
	 	8/15/01	 	TWE-A/N GP	 	$	71,340.00	 
	49
	 	8/15/01	 	TCI	 	$	7,062,660.00	 
	50
	 	8/15/01	 	TCI GP	 	$	71,340.00	 
	51
	 	8/15/01	 	TWE-A/N	 	$	732,000.00	 
	52A8
	 	8/15/01	 	TCI	 	$	732,000.00	 
	53
	 	9/19/01	 	TWE-A/N	 	$	8,990,190.00	 
	54
	 	9/19/01	 	TWE-A/N GP	 	$	90,810.00	 
	55
	 	9/19/01	 	TCI	 	$	8,990,190.00	 
	56
	 	9/19/01	 	TCI GP	 	$	90,810.00	 
	57
	 	9/19/01	 	TWE-A/N	 	$	751,500.00	 
	58A9
	 	9/19/01	 	TCI	 	$	751,500.00	 
	59
	 	10/19/01	 	TWE-A/N	 	$	2,535,390.00	 
	60
	 	10/19/01	 	TWE-A/N GP	 	$	25,610.00	 
	61
	 	10/19/01	 	TCI	 	$	2,535,390.00	 
	62
	 	10/19/01	 	TCI GP	 	$	25,610.00	 

 

			
	7	 	Note that Promissory Note No. 46A was a
re-issuance of Promissory Note No. 46 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.
	 
	8	 	Note that Promissory Note No. 52A was a
re-issuance of Promissory Note No. 52 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.
	 
	9	 	Note that Promissory Note No. 58A was a
re-issuance of Promissory Note No. 58 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.

 

14

	 	 	 	 	 	 	 	 	 
	Promissory Note	 	 	 	 	 	Original Principal
	Number	 	Date of Issuance	 	Name of Holder	 	Amount
	63
	 	10/19/01	 	TWE-A/N	 	$	754,000.00	 
	64A10
	 	10/19/01	 	TCI	 	$	754,000.00	 
	65
	 	11/16/01	 	TWE-A/N	 	$	329,670.00	 
	66
	 	11/16/01	 	TWE-A/N GP	 	$	3,330.00	 
	67
	 	11/16/01	 	TCI	 	$	329,670.00	 
	68
	 	11/16/01	 	TCI GP	 	$	3,330.00	 
	69
	 	11/16/01	 	TWE-A/N	 	$	848,000.00	 
	70A11
	 	11/16/01	 	TCI	 	$	848,000.00	 
	71
	 	12/18/01	 	TWE-A/N	 	$	1,315,710.00	 
	72
	 	12/18/01	 	TWE-A/N GP	 	$	13,290.00	 
	73
	 	12/18/01	 	TCI	 	$	1,315,710.00	 
	74
	 	12/18/01	 	TCI GP	 	$	13,290.00	 
	75
	 	12/18/01	 	TWE-A/N	 	$	827,000.00	 
	76A12
	 	12/18/01	 	TCI	 	$	827,000.00	 

 

			
	10	 	Note that Promissory Note No. 64A was a
re-issuance of Promissory Note No. 64 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.
	 
	11	 	Note that Promissory Note No. 70A was a
re-issuance of Promissory Note No. 70 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.
	 
	12	 	Note that Promissory Note No. 76A was a
re-issuance of Promissory Note No. 76 following transfer from TWE-A/N to TCI in
accordance with the Funding Agreement.

 

 

SCHEDULE II

Interests of the Partners

	 	 	 	 	 	 	 	 	 
	 	 	Relative Percentage	 	 
	Name of Partner	 	Interest	 	Percentage Interest
	Time Warner
Entertainment-Advance/Newhouse
Partnership
	 	 	99	%	 	 	49.5	%
	TWE-A/N Texas Cable Partners
General Partner
	 	 	1	%	 	 	0.5	%
	TCI Texas Cable Holdings LLC
	 	 	99	%	 	 	49.5	%
	TCI Texas Cable, Inc.
	 	 	1	%	 	 	0.5	%

 

 

EXHIBIT A

FORM OF PROMISSORY NOTE

THIS SUBORDINATED PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.
PAYMENT OF THIS PROMISSORY NOTE IS SUBJECT TO THE TERMS AND CONDITIONS OF THE SUBORDINATION
AGREEMENT, DATED AS OF OCTOBER [___], 2000, BY AND AMONG TEXAS CABLE PARTNERS, L.P., A DELAWARE
LIMITED PARTNERSHIP, THE CHASE MANHATTAN BANK, A NATIONAL BANKING ASSOCIATION, THE HOLDER AND THE
OTHER SIGNATORIES THERETO (AS AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME), A
COPY OF WHICH MAY BE OBTAINED, UPON WRITTEN REQUEST, FROM TEXAS CABLE PARTNERS, L.P., 290 HARBOR
DRIVE, STAMFORD, CONNECTICUT 06902, ATTENTION: [                    ].

SUBORDINATED PROMISSORY NOTE

			
	 	 	 
	New York, New York 

December [___], 2001
	 	$[                    ]

          FOR VALUE RECEIVED, Texas Cable Partners, L.P., a Delaware limited partnership with offices at
290 Harbor Drive, Stamford, Connecticut 06902 (the “Partnership”), promises to pay to the
order of [                    ], a [                    ] (the “Holder”), in lawful money of the United States,
the principal sum of [                    ] ($[                    ]), and to pay interest from the date hereof on the
unpaid principal amount hereof, in like money, at the Libor Rate for each Interest Period, plus 4%
(the “Interest Rate”), on the Maturity Date, and otherwise on the terms set forth below.

          1. Funding Agreement. This Promissory Note (this “Note”) is issued pursuant
to the Funding Agreement, dated as of November 10, 2000, among the Partnership, the Holder and the
other signatories thereto (as amended, supplemented or otherwise modified from time to time, the
“Funding Agreement”).

          2. Interest. The Partnership promises to pay interest on the Outstanding Principal
Amount of this Note at the Interest Rate. The Partnership shall pay accrued interest quarterly on
each March 31, June 30, September 30 and December 31 of each year or, if any such date shall not be
a Business Day, on the next succeeding Business Day to occur after such date (each date upon which
interest shall be so payable, an “Interest Payment
Date”), beginning on [                    ].
Unless permitted to

 

17

be paid in cash by the Subordination Agreement (as defined below), the Partnership shall pay
the total amount of interest due on each Interest Payment Date (the “PIK Amount”) by
automatically having the Outstanding Principal Amount of this Note increase on such Interest
Payment Date by the PIK Amount (each such increase, a “Principal Increase”). Interest on
this Note shall accrue from the date of issuance until repayment of the principal and payment of
all accrued interest in full. Interest shall be computed on the basis of a 360-day year for actual
days elapsed. The Interest Rate shall be adjusted on the first day of each Interest Period, and
the holder hereof shall provide notice to the Company within a reasonable time following any such
adjustment. Notwithstanding the foregoing provisions of this Section 2, but subject to applicable
law, any overdue principal or overdue interest on this Note shall bear interest, payable on demand
in immediately available funds, for each day from the date that such payment of principal or
interest was due to the date of actual payment, at the Interest Rate plus 2% per annum, and, upon
and during the continuance of a Default or Event of Default, this Note shall bear interest from the
date of the occurrence of such Default or Event of Default until such Default or Event of Default
is cured or waived, payable on demand in immediately available funds, at the Interest Rate plus 2%
per annum.

          3. Optional Redemption.

               (a) The Partnership shall have the right, at any time and from time to time at its sole option
and election, to redeem (the “Redemption”) this Note, in whole but not in part, on not less
than 10 days notice of the date of redemption (any such date, a “Redemption Date”) at a
price (the “Redemption Price”) equal to the Outstanding Principal Amount of this Note plus
all accrued and unpaid interest thereon (other than any such interest which theretofore was a
Principal Increase), whether or not currently payable, to the applicable Redemption Date, in
immediately available funds.

               (b) Notice of the Redemption (the “Redemption Notice”) shall be mailed at least 10
days prior to the Redemption Date to the holder of this Note, at such holder’s address as it
appears on the transfer books of the Partnership.

               (c) On the Redemption Date and upon surrender of this Note for cancellation, the Partnership
shall pay the Redemption Price to the holder of this Note. Notwithstanding that this Note shall
not have been surrendered for cancellation, from and after the Redemption Date: (i) this Note shall
no longer be deemed outstanding, (ii) the right to receive interest thereon shall cease to accrue
and (iii) all rights of the holder of this Note shall cease and terminate, excepting only the right
to receive the Redemption Price therefor; provided, however, that if the
Partnership shall default in the payment of the Redemption Price, this Note shall thereafter be
deemed to be outstanding and the holder hereof shall have all of the rights of a holder of this
Note until such time as such default shall no longer be continuing.

          4. Default. If an Event of Default occurs, then the Outstanding Principal Amount and
all accrued interest on this Note (other than those included in Principal Increase) and all other
amounts owing under this Note may be declared (or, in the case of an Event of Default described in
clause (ii) or (iii) of the definition thereof,

 

18

shall automatically become) immediately due and payable, without presentment, demand, protest
or notice of any kind, all of which are expressly waived. The holder of this Note may rescind an
acceleration and its consequences if all existing Events of Default have been cured or waived and
if the rescission would not conflict with any judgment or decree. Upon default in performance of
any obligations hereunder, the Partnership agrees to pay all costs and expenses of every kind and
nature incident to collection, including, without limitation, reasonable attorneys’ fees, incurred
by the holder hereof.

          5. Outstanding Maturity. On the Maturity Date, the Partnership shall pay to the
holder the entire Outstanding Principal Amount of this Note plus an amount equal to all accrued and
unpaid interest thereon (other than any such interest which theretofore was a Principal Increase),
in immediately available funds.

          6. Subordination. This Note is subordinated to certain other indebtedness of the
Partnership to the extent provided in the Subordination Agreement, dated as of the date hereof, by
and among the Partnership, the Holder, The Chase Manhattan Bank and the other signatories thereto
(as amended, supplemented or otherwise modified from time to time, the “Subordination
Agreement”). The Partnership and the holder of this Note by accepting this Note agree to the
subordination provisions contained in the Subordination Agreement.

          7. Definitions. Capitalized terms used but not defined herein shall have the
respective meanings given to such terms in the Credit Agreement. As used in this Note, and unless
the context requires a different meaning, the following terms have the meanings indicated:

          “Bankruptcy Law” means Title 11, U.S. Code or any other federal, state or foreign law
for the relief of debtors, as any such laws may be amended from time to time.

          “Credit Agreement” means the Credit Agreement, dated as of December 31, 1998, among
the Partnership, the several banks, financial institutions and other entities from time to time
parties to the Credit Agreement, the Syndication Agent and Documentation Agents parties thereto and
The Chase Manhattan Bank, as administrative agent (as the same may be amended, supplemented or
otherwise modified from time to time).

          “Default” means an event which, with notice or lapse of time or both, would constitute
an Event of Default.

          An “Event of Default” with respect to this Note shall occur if:

               (i) the Partnership shall default in the payment of any principal or interest on this Note,
when and as the same shall become due and payable, whether at maturity or at a date fixed for
prepayment;

 

19

               (ii) an involuntary proceeding shall be commenced or an involuntary petition shall be filed in
a court of competent jurisdiction seeking (a) relief in respect of the Partnership, or of a
substantial part of its property or assets, under any Bankruptcy Law, (b) the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for the Partnership, or
for a substantial part of its property or assets, or (c) the winding up or liquidation of the
Partnership; and such proceeding or petition shall continue undismissed for 60 days, or an order or
decree approving or ordering any of the foregoing shall be entered; or

               (iii) the Partnership shall (a) voluntarily commence any proceeding or file any petition
seeking relief under any Bankruptcy Law, (b) consent to the institution of or the entry of an order
for relief against it, or fail to contest in a timely and appropriate manner, any proceeding or the
filing of any petition described in paragraph (ii) of this definition, (c) apply for or consent to
the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Partnership, or for a substantial part of its property or assets, (d) file an answer
admitting the material allegations of a petition filed against it in any such proceeding, (e) make
a general assignment for the benefit of creditors, (f) become unable, admit in writing its
inability or fail generally to pay its debts as they become due or (g) take any action for the
purpose of effecting any of the foregoing.

          “Interest Period” means for any period beginning in November or December 2001, the
period ending on December 31, 2001 and thereafter each three month period ending on each March 31,
June 30, September 30 and December 31.

          “Libor Rate” shall mean, for each Interest Period, the three month Libor rate
published on the first day of such Interest Period in the Wall Street Journal.

          “Maturity Date” means the date that is one day following the date on which there are
no Commitments in effect, no Letter of Credit outstanding and no Loan or other amount then owing to
any Lender or any Agent under the Credit Agreement.

          “Outstanding Principal Amount” means the original principal amount of this Note
increased by any Principal Increase pursuant to Section 2 hereof.

          8. Notices. All notices, demands and other communications provided for or permitted
hereunder shall be made in the manner provided for in the Funding Agreement.

          9. Waiver; Amendment. No failure on the part of the holder hereof to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder preclude any other further exercise thereof or the exercise
of any other right. No amendment or waiver of any provision of this Note shall be effective unless
in writing and signed by the Partnership and the holder hereof, or in the case of a waiver, the
party waiving compliance.

 

20

          10. Governing Law. This Note shall be governed by and construed in accordance with
the laws of the State of New York applicable to agreements made and to be performed entirely within
such State.

          IN WITNESS WHEREOF, the undersigned has executed this Note as of the [___]th day of
                    , ___.

	 	 	 	 	 	 	 
	 	 	TEXAS CABLE PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:EX-10.16 FIRST AMENDMENT TO FUNDING AGREEMENT

 

Exhibit 10.16

EXECUTION COPY

FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED FUNDING AGREEMENT

          FIRST AMENDMENT, dated as of January 1, 2003 (this “Amendment”), to the THIRD AMENDED
AND RESTATED FUNDING AGREEMENT, dated as of December 28, 2001 (the “Funding Agreement”), by
and among by and among TEXAS CABLE PARTNERS, L.P., a Delaware limited partnership, TIME WARNER
ENTERTAINMENT-ADVANCE/NEWHOUSE PARTNERSHIP, a New York general partnership, TWE-A/N TEXAS CABLE
PARTNERS GENERAL PARTNER LLC, a Delaware limited liability company, TCI TEXAS CABLE HOLDINGS LLC, a
Colorado limited liability company, TCI TEXAS CABLE, INC., a Colorado corporation, and THE CHASE
MANHATTAN BANK, as administrative agent under the Credit Agreement, dated as of December 31, 1998,
as amended, supplemented or otherwise modified from time to time, and solely for the purposes of
being bound by Section 4 of this Amendment, AOL TIME WARNER INC., a Delaware corporation
(“AOLTW”), and COMCAST CORPORATION, a Pennsylvania corporation (“Comcast”).
Capitalized terms used and not defined herein shall have the meanings ascribed thereto in the
Funding Agreement.

          WHEREAS, the Partnership, the Partners and the Administrative Agent are parties to the Funding
Agreement pursuant to which the Partners have agreed to make, and have made, certain subordinated
loans to the Partnership;

          WHEREAS, the Partnership and the Partners desire to amend the Funding Agreement in order to
extend it effectiveness.

          NOW, THEREFORE, in consideration of the premises and 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 hereto agree as follows:

          1. Amendments.

     (a) Section 7 of the Funding Agreement is hereby amended by deleting the
reference to “December 2002” and inserting in lieu thereof “December 2003.”

     (b) Section 8 of the Funding Agreement is hereby amended by deleting the
reference to “December 31, 2002” and inserting in lieu thereof “December 31, 2003.”

     (c) Section 10 of the Funding Agreement is hereby amended by deleting the
reference to “January 15, 2003” and inserting in lieu thereof “January 15, 2004.”

     (d) Section 12(d) of the Funding Agreement is hereby amended by deleting the
addresses for notifications to be delivered to TCI or TCI GP and inserting in lieu
thereof

 

2

“If to TCI or TCI GP:

TCI Texas Cable Holdings LLC

TCI Texas Cable, Inc.

c/o Comcast Corporation

1500 Market Street

Philadelphia, Pennsylvania 19102

Attention:           General Counsel

Telecopy No.:     (215) 981-7794”

     (e) Schedule 1 to the Funding Agreement is hereby amended by deleting such
Schedule in its entirety and substituting in lieu thereof the Schedule 1 attached
hereto.

          2. Issuance and Transfer of Notes Prior to the Date Hereof.

     (a) The parties hereto acknowledge that Schedule 1 attached hereto contains a
true and accurate list of all promissory notes issued by the Partnership to the
Partners pursuant to the Funding Agreement prior to the date hereof (the
“Promissory Notes”). The Partnership hereby confirms receipt of all
proceeds from the issuance of such Promissory Notes and its liability with respect
thereto.

     (b) Each of the Partnership and the Administrative Agent hereby confirm that
it has consented to the assignment of certain of the Promissory Notes among the
Partners prior to the date hereof in accordance with the terms of the Funding
Agreement.

          3. Confirmation of Representations and Warranties. Each of the parties hereto,
severally and not jointly, represents and warrants that all of the representations and warranties
made by such party in the Funding Agreement are true and correct in all material respects on and as
of the date hereof and all references to the Agreement therein shall be deemed to include the
Agreement as amended by this Amendment.

          4. TWE Restructuring. Each of AOLTW and Comcast hereby acknowledge and agree that,
notwithstanding anything to the contrary contained therein, execution and delivery of this
Amendment and performance of the obligations created hereby and by the Funding Agreement, as
amended, are approved and permitted under the Restructuring Agreement, dated as of August 20, 2002,
by and among AOLTW, AT&T Corp., Comcast and the other parties named therein (the “Restructuring
Agreement”), and the other Transaction Agreements (as defined in the Restructuring Agreement).

          5. Continuing Effect. Except as expressly amended hereby, the Funding Agreement shall
continue to be and shall remain in full force and effect in accordance with its terms. Except as
expressly set forth herein, this Amendment shall not

 

3

by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the
rights and remedies of the parties or the Lenders under the Funding Agreement, and shall not alter,
modify, amend or in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Funding Agreement.

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

          7. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
agreement.

 

4

          IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives,
have caused this Agreement to be signed in their respective names as of the date first above
written.

	 	 	 	 	 
	 	TEXAS CABLE PARTNERS, L.P.

 	 
	 	By:  	                     /s/ Landel C. Hobbs
 	 
	 	 	Name:  	Landel C. Hobbs 	 
	 	 	Title:  	Treasurer 	 
	 
	 	TIME WARNER ENTERTAINMENT-ADVANCE/NEWHOUSE

PARTNERSHIP
 	 
	 	By: 	
Time Warner Entertainment Company, L.P.,
Managing Partner, through its Time Warner
Cable Division

 	 
	 	By:  	/s/ Landel C. Hobbs
 	 
	 	 	Name:  	Landel C. Hobbs 	 
	 	 	Title:  	Executive V.P.
Chief Financial Officer 	 
	 
	 	TWE-A/N TEXAS CABLE PARTNERS GENERAL PARTNER LLC

 	 
	 	By:  	/s/ Landel C. Hobbs
 	 
	 	 	Name:  	Landel C. Hobbs 	 
	 	 	Title:  	Treasurer 	 
	 
	 	TCI TEXAS CABLE HOLDINGS LLC

 	 
	 	By:  	/s/ Kenneth Mikalauskas
 	 
	 	 	Name:  	Kenneth Mikalauskas 	 
	 	 	Title:  	Vice President — Finance 	 
	 

 

5

	 	 	 	 	 
	 	TCI TEXAS CABLE, INC.

 	 
	 	By:  	/s/ Kenneth Mikalauskas
 	 
	 	 	Name:  	Kenneth Mikalauskas 	 
	 	 	Title:  	Vice President — Finance 	 
	 
	 	JP MORGAN CHASE BANK, formerly known
as THE CHASE MANHATTAN BANK
 	 
	 	By:  	/s/ Joan M. Fitzgibbon
 	 
	 	 	Name:  	Joan M. Fitzgibbon 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	For purposes of Section 4 only:

AOL TIME WARNER INC.

 	 
	 	By:  	/s/ Edward Ruggiero
 	 
	 	 	Name:  	Edward Ruggiero 	 
	 	 	Title:  	Vice President 	 
	 
	 	COMCAST CORPORATION

 	 
	 	By:  	/s/ Kenneth Mikalauskas
 	 
	 	 	Name:  	Kenneth Mikalauskas 	 
	 	 	Title:  	Vice President — Finance

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