Document:

Exhibit 10.1

 

AMENDED AND RESTATED

PARAMETERS OF AWARDS OF STOCK OPTIONS AND RESTRICTED SHARES

 

1.               structure two types
of equity based awards:

 

a.               Performance
Shares: Restricted Shares the vesting of which is based on the
Corporation achieving agreed performance targets tied to the Return on Equity (“ROE”)
of the Corporation (“Performance Shares”).

 

i.                  Performance
Shares may be earned by Executive and Senior Officers.  The number of Performance Shares that may be
earned will be based on the Corporation’s ROE over a defined performance
period, with an additional period of time for vesting after the performance
period.  The initial performance period
shall be the 21-month period beginning on April 1, 2005 and ending on December
31, 2006.

 

ii.               The ROE
targets and award percentages for the Performance Shares shall be structured as
follows:

 

	
  Level*

  	
   

  	
  ROE

  Values**

  	
   

  	
  Percentage of

  Award to be Earned

  	
   

  
	
  Minimum

  	
   

  	
  14.0

  	
  %

  	
  50.0

  	
  %

  
	
  Target

  	
   

  	
  18.0

  	
  %

  	
  100

  	
  %

  
	
  Maximum

  	
   

  	
  22.0

  	
  %

  	
  120

  	
  %

  

 

*   No Performance Shares will be earned if the
Minimum ROE is not attained.  The number
of Performance Shares that may be earned for ROE Values between the Minimum and
Target, and between the Target and Maximum, will be determined by
interpolation.

 

**
The ROE Values are based on core net income and core book value, so there is no
effect of the non-cash mark-to-market of swaps.

 

iii.            No dividends
will be accrued or paid on the Performance Shares during the performance
period. Following the performance period, and prior to the full vesting of the
Performance Shares, dividends on earned Performance Shares will be accrued but
not paid until the vesting of the shares. 
Earned Performance Shares will vest on the date which is two years
following the end of the performance period.

 

iv.           If (a) there
is a material restatement of the Corporation’s financial results for any
financial reporting period and such financial reporting period also was part of
the performance period and (b) as a result of the restatement the Corporation’s
ROE for the performance period changes, then the number of Performance Shares
that may be earned shall be determined based on the Corporation’s ROE after
giving effect to the restatement.

 

b.              Options with
Dividend Equivalent Rights (“Options w/ DERs”) which vest after
four years, contingent on the recipient’s continued employment by the
Corporation, and have a seven-year term

 

c.               Both the
Performance Shares and the Options w/ DERs will be subject to forfeiture prior
to their vesting by a recipient that (i) terminates his employment with the
Corporation or (ii) whose employment by the Corporation is terminated for
Cause.

 

 

2.               award these
instruments as follows:

 

a.               Executive
and Senior Officers: annual awards of Options w/ DERs and Performance Shares,
with two year performance targets and two year cliff vesting of the earned
performance shares

 

b.              Other
Managers: periodic awards of Options w/ DERs only

 

c.               New hires
and other special situations are eligible to receive awards consistent with
their positions in the Corporation as recommended by the Chief Executive
Officer of the Corporation and approved by the Compensation Committee.

 

3.               ownership guidelines

 

a.               the Board
will establish ownership guidelines for the Corporation’s Directors and
Officers; Directors and Officers should own shares of the Corporation’s common
stock equal to a multiple of the recipient’s respective annual compensation as
follows:

 

	
   

  	
   

  	
  multiple

  
	
  i.

  	
   

  	
  CEO

  	
   

  	
  five

  
	
  ii.

  	
   

  	
  Executive Officers

  	
   

  	
  three

  
	
  iii.

  	
   

  	
  Senior Officers

  	
   

  	
  two

  
	
  iv.

  	
   

  	
  Other Managers

  	
   

  	
  n.a.

  

 

b.              the Chief
Executive Officer will recommend to the Board the portion of shares issued to
managers under the Incentive Plan that the Corporation expects the managers to
retain, after providing for the sale of sufficient shares by the managers to
meet their tax liabilities relative to the awards of the shares, with the
target retention percentage expected to be not less than 60% of the net, after
tax value of shares received.Exhibit
10.01

 

PLAN SUPPORT AGREEMENT CONCERNING
FOURTH AMENDED JOINT PLAN OF

REORGANIZATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE FOR ADELPHIA

COMMUNICATIONS CORPORATION, et al. (the “Debtors”)

 

Following successful
negotiations between the Debtors, the Ad Hoc Adelphia
Trade Claims Committee (the “Trade Committee”), and the members of the
Trade Committee that are a party to this Agreement (solely in their capacity as
members of the Trade Committee and as the holders of Operating Company Trade
Claims (defined below), the “Trade Committee Members” and collectively
with the Debtors and the Trade Committee, the “Parties”), the Parties
have reached agreement on the terms and conditions of certain modifications to
the Debtors’ Fourth Amended Joint Plan of Reorganization Under Chapter 11 of
the Bankruptcy Code, dated November 21, 2005 (as filed, the “Existing Plan”
and as so modified, including in accordance with the terms of this Agreement,
the “Modified Plan”) that, subject to satisfaction of the provisions hereof,
will result in the full support of the Trade Committee and the Trade Committee
Members with respect to the treatment of Operating Company Trade Claims under
the Modified Plan.  In connection
therewith, this plan support agreement (the “Agreement”), dated as of
the 10th day of April 2006, sets forth the terms and conditions pursuant to
which the Trade Committee and the Trade Committee Members will support the
Modified Plan:

Capitalized terms used but
not defined herein have the meanings given to them in the Existing Plan.

1.             General
Structure:  The terms
and structure of the Modified Plan will be the same as those contained in the
Existing Plan, as (i) contemplated to be modified by this Agreement, (ii)
necessary to reflect, in the Debtors’ sole discretion, changes to subject one
or more of the Debtors or Debtor Groups, identified in the list provided to
counsel to the Trade Committee on April 10, 2006 (the “Additional Debtor
Group(s)”), to holdback provisions similar to those contained in the
Existing Plan with respect to the Arahova and FrontierVision Holdco Debtor
Groups, and (iii) otherwise may be modified by the Debtors in a manner that
does not adversely affect the treatment of Trade Claims held against the
Operating Companies (as defined in Paragraph 5 below) (collectively, such Trade
Claims are referred to hereinafter as “Operating Company Trade Claims”).  Except as provided in Paragraph 2(b) below,
the Debtors shall not amend or modify the Modified Plan in any manner that
adversely affects the treatment of Operating Company Trade Claims contemplated
by the Plan Modifications (as defined below) without the prior written consent
of the Trade Committee (which consent shall not be unreasonably withheld or
delayed so long as the modifications do not adversely impact the Trade
Committee’s economic interest), unless: (w) such amendment or modification is
required as a result of a decision of the Bankruptcy Court, or the Debtors
conclude after due inquiry and analysis as is reasonable under the circumstances
that: (x) prior to Bankruptcy Court approval of this Agreement, it is necessary
to further amend or modify the Modified Plan in order to satisfy the legal
entitlements of holders of Claims that are structurally or legally senior or
pari passu in priority to Operating Company Trade Claims for the purpose of
obtaining confirmation of the Modified Plan (and provided that the Debtors
inform the Trade Committee in writing promptly after the Debtors make such
determination), provided however that in connection with any modification or
amendment under this subparagraph (x), in no event shall the Debtors substitute
TWC Class A Common Stock for Cash in distributions to holders of Allowed
Operating Company Trade Claims if the holders of the FrontierVision Holdco Notes,
the FPL Note, or the Olympus Parent Notes are receiving Plan Consideration on
account of the principal and interest components of such Claims 

 

which
includes Cash unless such Claims are pari passu with Allowed Operating Company
Trade Claims in the applicable Debtor Group; or (y) after Bankruptcy Court
approval of this Agreement, changed circumstances (that is, a change in
circumstance arising after the date of this Agreement that is not reasonably
anticipated) cause consummation of the Modified Plan consistent with the Plan
Modifications to be unobtainable, provided, however, that (1) prior to making
any such modification or amendment under this subparagraph (y), the Debtors
shall confer in good faith with the Trade Committee regarding the changed circumstances
and if the Parties cannot reach agreement they shall cooperate in promptly
seeking Bankruptcy Court resolution of whether there are any such changed
circumstances, (2) in connection with any modification or amendment under this
subparagraph (y), the Debtors may substitute TWC Class A Common Stock for Cash
in distributions to Allowed Operating Company Trade Claims to the extent
necessary to consummate the Modified Plan and only if the holders of the
FrontierVision Holdco Notes, the FPL Note, or the Olympus Parent Notes are not
receiving Plan Consideration on account of the principal and interest
components of such Claims which includes Cash unless such Claims are pari passu
with Allowed Operating Company Trade Claims in the applicable Debtor Group and
the Debtors shall use their reasonable best efforts to adopt any such
modification or amendment under this subparagraph (y) that under the
circumstances mitigates the adverse impact on the Plan Modifications described
herein, and (3) unless required as a result of a decision or order of a court
of competent jurisdiction, the Debtors may not make any modifications to the
rate of postpetition interest as set forth in Paragraph 2(a) below.

2.             Payment of Postpetition Interest; Inter-Creditor
Dispute Issues:

a.                                       Payment of
Postpetition Interest.  The
Existing Plan shall be modified to provide that simple interest shall accrue at
8% per annum with respect to each Allowed Operating Company
Trade Claim from the Commencement Date until the Effective Date (such interest,
“Postpetition Interest”), whether or not an agreement or instrument or
applicable law gives rise to such Claim for postpetition interest and/or
provides for a different rate of interest with respect to such Claim for
postpetition interest, provided however, that with respect to Trade Claims
against the Arahova Debtor Group, the FrontierVision Holdco Debtor Group and
the Additional Debtor Group(s) (collectively, the “Affected Debtor Groups”),
accrual of Postpetition Interest remains subject to the resolution of the
Inter-Creditor Dispute; and provided further however, that with respect to
Trade Claims against the Ft. Myers Debtor Group and the Affected Debtor Groups,
the payment of postpetition interest shall be subject to the first and last
sentences of Section 8.14(a) of the Existing Plan.  The Trade Committee acknowledges that drafts
of the proposed modifications necessary to implement the foregoing and the
terms set forth in Paragraph 3 below have been provided to them by the Debtors
and are acceptable in form and substance.

b.                                      Inter-Creditor
Dispute Issues.  To the
extent the Debtors determine, after due inquiry and analysis, it is necessary
to change the proposed treatment for one or more of the Debtors or Debtor
Groups identified on the list provided to counsel to the Trade Committee on
April 10, 2006, in connection with the Inter-Creditor Dispute, the Debtors
shall be permitted to modify the Modified Plan to provide that (i)
distributions on account of Operating Company Trade Claims in such Debtors or
Debtor Groups shall be determined in accordance with the Inter-Creditor Dispute
Resolution and (ii) the right to the payment of postpetition interest on
account of Operating Company Trade Claims in such Debtors or Debtor Groups
shall be subject to the first and last sentences of Section 8.14(a) of the
Existing Plan.

 

2

 

3.             Payment and Form of Consideration:  Subject to the provisions of Paragraphs 1 and
2 above, holders of Allowed Operating Company Trade Claims within  all Debtor Groups (except the Arahova Debtor
Group, the FrontierVision Holdco Debtor Group, the Additional Debtor Group(s)
and the Ft. Myers Debtor Group) shall be paid in full plus postpetition interest,
and as to form of Plan Consideration distributed on account of such Claims each
of the following terms shall apply:

 

(a)           with respect to the portion of such
Operating Company Trade Claims that is represented by the face amount of the
Claim plus postpetition interest computed at the federal judgment rate as of
the Commencement Date (the “Federal Judgment Rate”), holders of such
Claims shall receive the treatment provided on account of such Claims under the
Existing Plan, which treatment is payment in Cash,  subject only to the follow limited
exceptions:

 

(x)
in the Debtors’ sole discretion, up to one percentage point of the entire
payment on account of such portion of the Claims shall be in the form of TWC
Class A Common Stock (for the avoidance of doubt, if the recovery on account of
such portion of the Claims is 108 points, then no less than 107 points shall be
in Cash and no more than 1 point shall be in the form of TWC Class A Common
Stock);

 

(y)
in the event there are Non-Transferred MCE Systems prior to the Effective Date,
some portion of the Plan Consideration (as described in Section II.A.2. of the
Disclosure Statement) may be in the form of TWC Class A Common Stock, provided,
however, that the Debtors may not substitute TWC Class A Common Stock if the
holders of the FrontierVision Holdco Notes, the FPL Note, or the Olympus Parent
Notes are receiving Plan Consideration on account of the principal and interest
components of such Claims which includes Cash unless such Claims are pari passu
with Allowed Operating Company Trade Claims in the applicable Debtor Group; and

 

(z) for
those Debtor Groups to which it is applicable pursuant to the Existing Plan
(that is, the Century-TCI and Parnassos Debtor Groups), if the TW Expanded
Transaction is consummated, some portion of the Plan Consideration may be in
the form of TWC Class A Common Stock, 
provided, however, that the Debtors may not substitute TWC Class A
Common Stock if the holders of the FrontierVision Holdco Notes, the FPL Note,
or the Olympus Parent Notes are receiving Plan Consideration on account of the
principal and interest components of such Claims which includes Cash unless
such Claims are pari passu with Allowed Operating Company Trade Claims in the
applicable Debtor Group, provided that nothing herein shall be construed to
preclude the Debtors from amending the Modified Plan to modify the form of Plan
Consideration to be paid to holders of Allowed Operating Company Trade Claims
against Debtor Groups in addition to the Century-TCI and Parnassos Debtor
Groups in the event the TW Expanded Transaction is consummated, but any such
amendment shall constitute a Termination Event as set forth in Paragraph 13(c)
of this Agreement.

 

(b)           with respect to the portion of such
Operating Company Trade Claims that is represented by postpetition interest in
excess of the Federal Judgment Rate (that is, the difference between the
Federal Judgment Rate and eight (8%) percent):

 

3

 

(x)
in the Debtors’ sole discretion, up to one percentage point of the entire
payment on account of such portion of the Claims shall be in the form of TWC
Class A Common Stock and the remaining payment on account of such portion of
the Claims shall be in Cash (for the avoidance of doubt, if the recovery on
account of such portion of the Claims is 24 points, then not less than 23
points would be in Cash and not more than 1 point would be in the form of TWC
Class A Common Stock); and

 

(y)
except as set forth in the immediately preceding clause (x), holders of such
Claims shall receive Cash on account of such Claims to the extent there is
sufficient Cash in the “waterfall” structure incorporated into the Plan to pay
Cash on account of such Claims, and to the extent of any Cash shortfall, then
holders of such Claims shall receive TWC Class A Common Stock, provided,
however, that the Debtors may not substitute TWC Class A Common Stock if the
holders of the FrontierVision Holdco Notes, the FPL Note, or the Olympus Parent
Notes are receiving Plan Consideration on account of the principal and interest
components of such Claims which includes Cash unless such Claims are pari passu
with Allowed Operating Company Trade Claims in the applicable Debtor Group; and

 

(c)           in no event shall such Operating
Company Trade Claims receive less favorable treatment in terms of the form of
Plan Consideration distributed on account of such Claims than that received by
holders of other general unsecured claims within the applicable Debtor Group
(it being agreed that the Bank Claims and the FPL Note are secured by certain
pledges of stock and therefore are not considered general unsecured claims for
purposes of this Paragraph).

 

4.             Approval of Plan Modifications; Creditors’ Committee
Support:

(a)           The proposed plan modifications contemplated by this
Agreement (the “Plan Modifications”) shall be incorporated into the
Modified Plan.  Not later than five (5)
business days after the full execution of this Agreement by the Parties, the
Debtors shall file with the Bankruptcy Court (i) a motion seeking Bankruptcy
Court approval of this Agreement and the Plan Modifications, as part of the
confirmation process, pursuant to Bankruptcy Rule 9019 and sections 1123, 1127
and 1129 of the Bankruptcy Code, and (ii) a motion (the “New Recommendation
Motion”) seeking Bankruptcy Court approval of (a) the New Recommendation
(defined below) pursuant to section 1125(b) of the Bankruptcy Code, and (b) the
protections afforded pursuant to section 1125(e) of the Bankruptcy Code with
respect to the New Recommendation.  In
connection with such filings and the Debtors’ obligations hereunder, the
Debtors shall promptly, and in good faith, pursue confirmation of the Modified
Plan.  The Parties agree that if no
objections to the New Recommendation Motion are filed, then the Debtors may
present for consideration and entry without a hearing by the Bankruptcy Court a
proposed order allowing the New Recommendation Motion.  The foregoing filings referred to in this
Paragraph 4 shall be in a form reasonably satisfactory to counsel to the Trade
Committee.  Not later than five (5)
business days after the full execution of this Agreement by the Parties, the
Debtors shall also file a Form 8-K with the United States Securities and
Exchange Commission concerning the Debtors’ entry into this Agreement with the
Trade Committee.

 

4

 

(b)            Promptly upon
execution of this Agreement, the Debtors and the Trade Committee shall
undertake good faith efforts to obtain the support of the Official Committee of
Unsecured Creditors for this Agreement.

5.             Trade Committee Support and Claim Holdings:  So long as the Modified Plan provides for the
Plan Modifications, and otherwise is consistent with this Agreement, but
subject, in all respects, to the Provisos (as defined below), the Trade
Committee and the Trade Committee Members shall support confirmation of the
Modified Plan and shall not object to, oppose or otherwise seek to modify or
delay approval or confirmation of the Modified Plan or the occurrence of its
Effective Date.  As soon as reasonably
practicable after obtaining the Bankruptcy Court’s approval of the New
Recommendation Motion, the Debtors, on behalf of the Trade Committee, shall
distribute a letter (the “New Recommendation”) by which the Trade
Committee recommends and urges all holders of Trade Claims against all Debtor
Groups other than the Holding Company Debtor Group (collectively, the “Operating
Companies”) to vote to accept the Modified Plan (and, if such holders
already have voted to reject the Existing Plan, to supersede such earlier vote
with a new ballot that votes to accept the Modified Plan).  A copy of the New Recommendation is annexed
hereto as Exhibit A.

Each Trade Committee Member
represents and warrants, on a several but not joint basis, that, as of the date
hereof, it is the legal or beneficial holder of, or holder of investment and
voting authority over, the Operating Company Trade Claims set forth in the list
provided to the Debtors by the Trade Committee on March 17, 2006 (collectively,
the “Subject Claims”) and has or will have the authority to vote or
direct the voting of claims relating to such Claims.  Subject to the Provisos, each Trade Committee
Member believes that consummation of the Modified Plan, consistent with this
Agreement, is in its best interests. 
Accordingly, each Trade Committee Member will support the Modified Plan
and hereby agrees, without any further action by it or any other person, that
all Operating Company Trade Claims held by or subsequently acquired by it shall
be deemed to have voted to accept the Modified Plan, whether or not a vote
previously has been cast to accept or reject the Existing Plan in respect of
such Claims, consistent with the terms and conditions of this Agreement.  Without limiting the foregoing, the Trade
Committee and each Trade Committee Member commits to, for so long as this
Agreement remains in effect (but subject, in all respects, to the Provisos):

a.                     support
the Modified Plan and use its reasonable efforts to facilitate the Debtors’
filing, confirmation and consummation of the Modified Plan at the earliest
practicable date;

b.                     not
pursue, propose, support, vote to accept or encourage the pursuit, proposal or
support of, any chapter 11 plan, or other restructuring or reorganization for
the Debtors, directly or indirectly, that is not consistent with this Agreement
and the Modified Plan;

c.                     not,
nor encourage any other person or entity, to execute or file any ballot
rejecting the Plan, or otherwise interfere with, delay, impede, appeal or take
any other negative action, directly or indirectly, in any respect regarding
acceptance or implementation of the Modified Plan;

d.                     not
commence any proceeding or prosecute any objection to oppose or object to the
Modified Plan, and not to take any action that would delay approval,
confirmation or consummation of the Modified Plan, provided that the Debtors
acknowledge that without violating the terms of this Agreement, the Trade
Committee or any Trade Committee Member may: (i) participate in any
proceedings, and assert positions, with respect to the determination of 

 

5

 

the Deemed Value of the TWC Class A Common Stock to be distributed to
creditors under the Modified Plan; and (ii) participate in any proceedings, and
assert positions, with respect to the Inter-Creditor Dispute; and

e.                     not take any action
inconsistent with the purposes of this Agreement;

in
each case consistent with the terms and provisions of this Agreement; provided, however, that
notwithstanding anything herein to the contrary, (i) if any Trade Committee
Member is appointed to or serves on the Creditors’ Committee, the terms of this
Agreement shall not be construed to limit such Trade Committee Member’s
exercise of its fiduciary duties in its role as a member of the Creditors’
Committee, and any exercise of such fiduciary duties shall not be deemed to
constitute a breach of the terms of this Agreement, and (ii) this Agreement
applies to each Trade Committee Member solely in its capacity as a Trade
Committee Member and as the holder of Operating Company Trade Claims, such that
nothing herein shall subject any Trade Committee Member to an obligation to act
or refrain from acting in any manner with respect to Claims other than
Operating Company Trade Claims that such Trade Committee Member holds against
any Debtor Group, including, without limitation, in each of the following cases
on account of Claims other than Operating Company Trade Claims, taking any
actions prohibited by this Agreement or this Paragraph 5 as to Operating
Company Trade Claims, voting to reject the Plan, objecting to confirmation of
the Plan, participating and asserting certain positions in the Inter-Creditor
Dispute or taking any other action in the Chapter 11 Cases on account of such
Claims as such Trade Committee Member may determine in its sole discretion (the
preceding subparagraphs (i) and (ii), together, the “Provisos”).

6.             Pending Litigation/Discovery:

(i)            Upon execution of this Agreement by all Parties, the
Trade Committee shall:

a.             stay the prosecution of its appeal
of the Government Settlement Agreements (the “Government Settlement Appeal”);
provided that the Trade Committee shall withdraw with prejudice the Government
Settlement Appeal as soon as practicable after the Effective Date of the
Modified Plan; and

b.             withdraw its pending discovery
requests;

without prejudice to the
rights of the Trade Committee to prosecute the Government Settlement Appeal and
re-serve such discovery in the event of the occurrence of a Termination Event
(defined below).  Notwithstanding
anything contained herein to the contrary, in the event of a Termination Event,
the Debtors and the Trade Committee promptly shall confer in good faith to
determine whether they can agree, under the circumstances then present, on the
Debtors’ obligations, if any, with respect to any such re-served discovery
requests.  In the event the parties
cannot reach agreement they shall cooperate in promptly seeking Bankruptcy
Court resolution of such dispute.

(ii)           Reference is made to the agreement between the Debtors and the Trade Committee set forth in the
electronic mail correspondence between Jamie M. Ketten, Esq. and Sunni P.
Beville, Esq. dated as of January 26, 2006 regarding the general continuance of
certain deadlines, which is hereby incorporated herein by reference except for
the last
sentence of Paragraph 5 thereof  (the “Tolling Agreement”).  Upon termination of this Agreement, the
Debtors and counsel for the Trade Committee promptly shall confer in good faith
to determine an appropriate timeline for the establishment of the various
deadlines set forth in the Tolling Agreement (in order to limit, to the extent
reasonably practicable under the circumstances, prejudice, if any, to the
Debtors and the 

 

6

 

Trade Committee), and in the event such Parties
cannot reach agreement the Bankruptcy Court shall determine any such dispute.

7.              Claims
Reconciliation:

(i)            The Debtors shall undertake reasonable good faith efforts
to address and reconcile, to the extent practicable, the Trade Committee
Members’ Operating Company Trade Claims as soon as reasonably possible under
the circumstances.  In the event that,
notwithstanding such good faith efforts, a Trade Committee Member’s Operating
Company Trade Claims have not been resolved prior to the Effective Date, the
Reorganized Debtors and the Plan Administrator, as applicable, shall be
obligated to undertake the same efforts as the Debtors were obliged (before the
Effective Date).  The Trade
Committee shall have the right to seek Bankruptcy Court enforcement of the  obligations of the Debtors, Reorganized
Debtors and the Plan Administrator in this Paragraph 7 and to have its
reasonable fees and expenses incurred in doing so reimbursed.

(ii)           Prior to Bankruptcy Court approval of this Agreement, the
Trade Committee shall have the right to monitor and review the projected amount
of (and, if necessary, challenge) Administrative Expense Claims, Fee Claims,
Priority Tax Claims, DIP Lender Claims, Other Priority Claims, Secured Tax
Claims and Other Secured Claims, and Bank Claims to ensure the Debtors have
adequate Cash to pay the amount set forth in Paragraph 3 in Cash, subject to
the limited exceptions set forth therein.

8.             Trade Committee Fees and Expenses:

(i)            Stated Fee Reimbursement: The Debtors shall support
the payment of, and shall not oppose or object to, nor encourage any other
person or entity to oppose or object to, the reasonable fees and expenses of
the Trade Committee’s professionals in representing the Trade Committee in the
Chapter 11 Cases based on the hourly billings (plus expenses) of such
professionals (the “Stated Fee Reimbursement”).  The Trade Committee’s professionals shall
file fee applications (“Fee Applications”) with the Court in support of
the Stated Fee Reimbursement, which filings shall be made on or before the
deadline for filing final applications for Fee Claims as set forth in Section
2.02 of the Existing Plan  (the “Fee
Application Deadline”) and shall be subject to review by the Debtors and
other parties in interest solely as to the reasonableness of the such fees and
expenses.  To the extent the Fee
Applications are allowed by the Bankruptcy Court, the Debtors shall be required
to reimburse the amounts paid by members of the Trade Committee on account of
the Stated Fee Reimbursement, in the manner directed by the Trade Committee’s
counsel (Brown Rudnick Berlack Israels LLP (“Brown Rudnick”)).

The Trade Committee
represents that as of March 31, 2006, the Trade Committee’s professionals have
incurred hourly billings plus expenses of approximately $2.13 million.  The Parties acknowledge that the Stated Fee
Reimbursement shall include reimbursement for all reasonable fees (based on
hourly billings) and expenses incurred through February 28, 2006 plus
such additional reasonable fees (based on hourly billings) and expenses that
may be incurred by the Trade Committee’s professionals at the direction of the
Trade Committee relating to: (A) the preparation, administration, prosecution
for approval and enforcement of this Agreement, including without limitation,
representing the Trade Committee in connection with the confirmation of the
Modified Plan and any hearings related thereto and the performance of any
functions that might be requested by the Debtors to facilitate obtaining
confirmation of the Modified Plan; (B) the determination of the Deemed Value of
the TWC Class A Common Stock to be distributed to creditors under the Modified
Plan (with respect to which the Trade Committee reserves all of its rights to
challenge such Deemed Value); (C) the Trade Committee’s monitoring and
diligence with respect to Administrative Expense Claims, Fee Claims, Priority
Tax Claims, DIP Lender Claims, 

 

7

 

Other
Priority Claims, Secured Tax Claims and Other Secured Claims, and Bank Claims
which may cause the Debtors to fail to have adequate Cash to comply with
Paragraph 3 of this Agreement; (D) the Trade Committee’s right, if any, to
challenge any Administrative Expense Claims and Fees Claims which (1) has the
effect of increasing the aggregate Allowed Administrative Expense Claims and
Allowed Fee Claims to in excess of 150% of the estimates therefor set forth in
the Disclosure Statement, and (2) may cause the Debtors to fail to have
adequate Cash to comply with Paragraph 3 of this Agreement; (E) the Trade
Committee’s role in the Inter-Creditor Dispute, and (F) the representation of
Sierra Liquidity Fund, LLC, a member of the Trade Committee, in its capacity as
a member of the official unsecured creditors’ committee appointed in these
cases.

(ii)           Contingent Fee Claim: The Trade Committee represents
that in addition to the Trade Committee’s agreement to pay Brown Rudnick its
standard hourly rates, in order to further incentivize Brown Rudnick, the Trade
Committee agreed to support an application by Brown Rudnick for a contingent
fee payment based upon the improvement (in excess of the Federal Judgment Rate)
in the recoveries of the Operating Company Trade Claims on account of
postpetition interest. The Debtors shall, in addition to payment of the Stated
Fee Reimbursement, not oppose or object to any such contingent fee claim filed
by Brown Rudnick Berlack Israels LLP (on account of
its contingent fee arrangement with the Trade Committee), not to exceed $5
million (less the amount of the Stated Fee Reimbursement), pursuant to section
503(b) of the Bankruptcy Code or other applicable law (the “Contingent Fee
Claim”) with respect to services rendered in connection with their
rendition of services to the Trade Committee which application shall be filed
on or before the Fee Application Deadline. 
The foregoing shall be without prejudice to the rights of other parties
in interest to be heard with respect to any such Contingent Fee Claim.  In no event shall the Contingent Fee Claim
and the Stated Fee Reimbursement aggregate more than $5 million.

9.             Impairment:  Each Trade Committee Member acknowledges and
agrees that the treatment of the Subject Claims under the Modified Plan results
in such Claims being “impaired” within the meaning of the Bankruptcy Code.

10.           Limitations on
Transfer:  Each Trade Committee
Member hereby agrees not to (a) sell, transfer, assign, pledge, or otherwise
dispose, directly or indirectly their right, title or interest in respect of
the Subject Claims, in whole or in part, or any interest therein, or (b) grant
any proxies, deposit any of its claims into a voting trust, or enter into a
voting agreement with respect to any such Subject Claims (clauses (a) and (b),
collectively, a “Transfer”)
unless the recipient of such Subject Claim (a “Transferee”) agrees in writing (such writing, a “Transferee Acknowledgment”), prior
to such Transfer, to be bound by this Agreement in its entirety without revisions
(including with respect to any and all other Operating Company Trade Claims it
already may hold prior to such Transfer (the “Purchased Claims”)).  Upon the execution of the Transferee
Acknowledgment, the Transferee shall be deemed to be a party to this Agreement
with respect to the Purchased Claims and all Operating Company Trade Claims
already held or subsequently acquired by it. 
Any Transfer that does not comply with this Paragraph shall be void ab initio.  In the
event of a Transfer, the transferor shall, within three (3) business days
thereof, provide written notice of such transfer to the Debtors, together with
a copy of the Transferee Acknowledgment. 
No Trade Committee Member may create any subsidiary, affiliate or other
vehicle or device for the purpose of acquiring any Operating Company Trade
Claims without first causing such subsidiary or affiliate to become a party
hereto.

11.           Further
Acquisition of Trade Claims:  This Agreement shall in no way be construed
to preclude any Trade Committee Member from acquiring additional Operating
Company Trade Claims.  However, any such
additional Operating Company Trade Claims so acquired shall, whether or not the
Trade Committee Member holds any Operating Company Trade Claims at the time of
the 

 

8

 

acquisition, automatically
be deemed to be (i) “Subject Claims,” (ii) subject to all of the terms of this
Agreement, and (iii) voted to accept the Modified Plan, whether or not a vote
previously has been cast to accept or reject the Existing Plan or the Modified
Plan in respect of such Operating Company Trade Claims.

12.           Condition to
each Party’s Obligations:  Each Party’s obligations under this Agreement
are subject to the execution of this Agreement by each of the following
persons:

(i)            the Debtors;

(ii)           the Trade
Committee; and

(iii)          each Trade
Committee Member that is a Party hereto.

13.           Termination
Events:   The occurrence of
each of the following events shall constitute a “Termination Event”:

a.                     the
Modified Plan when filed with the Bankruptcy Court, or later amended by the
Debtors and filed with the Bankruptcy Court, shall not be consistent with the
terms of this Agreement;

b.                     the
Modified Plan is amended, without the Trade Committee’s consent, as a result of
the occurrence of the circumstances described in Paragraph 1(w), (x) or (y) of
this Agreement, and such Modified Plan, as amended, is filed with the
Bankruptcy Court;

c.                     if
the Modified Plan is amended to modify the form of Plan Consideration to be
paid to holders of Allowed Operating Company Trade Claims, in the event the TW
Expanded Transaction is consummated, in Debtor Groups in addition to the
Century-TCI and Parnassos Debtor Groups and such Modified Plan as amended is
filed with the Bankruptcy Court;

d.                     the
Debtors’ chapter 11 cases shall have been dismissed or converted to a case
under chapter 7 of the Bankruptcy Code;

e.                     any
court of competent jurisdiction shall declare in a final, non-appealable order
that this Agreement is unenforceable;

f.                      the
Modified Plan is withdrawn by the Debtors;

g.                     the
Bankruptcy Court enters an order either denying (i) approval of the Plan
Modifications; or (ii) confirmation of the Modified Plan;

h.                     the
termination of the Sales Transaction (other than by consummation); and

i.                      unless
waived in writing by the Debtors and the Trade Committee (the “Required
Parties”), any representation or warranty of any Party made or deemed made
herein is incorrect in any material respect on or as of the date made or deemed
made and such default (unless it is a willful misrepresentation) shall continue
unremedied for a period of five (5) days after the earlier of (i) the
date upon which the relevant Party knew of such failure or (ii) the date
upon which written notice thereof is given by any Party to the other Parties
hereto.

The
Termination Events described in subparagraphs (a) through (c) above are
referred to hereinafter, collectively, as the “Trade Committee Termination
Events” and each individually, a 

 

9

 

“Trade
Committee Termination Event.”  The
Termination Events described in subparagraphs (d) through (i) above are
referred to hereinafter, collectively, as the “Parties’ Termination Events”
and each individually, a “Parties’ Termination Event.”

Nothing
in this Paragraph 13 that provides for termination shall otherwise modify any
of the Parties’ obligations to abide by the terms of this Agreement.

14.           Termination of
this Agreement:

(i)
           Trade Committee Termination
Event.  The Trade Committee shall provide
the Debtors with written notice (the “Termination Notice”) of the Trade
Committee’s election to terminate this Agreement as a result of the occurrence
of a Trade Committee Termination Event no later than five (5) business days of
the date the Trade Committee acquires actual knowledge of, or should reasonably
have known of, the occurrence of such Termination Event, provided that
the Debtors shall be entitled to a five (5) day grace period following receipt
of the Termination Notice to cure any such alleged Termination Event. 
If no such election timely is made by the Trade Committee with respect
to a Trade Committee Termination Event, then the Trade Committee shall not have
the right to terminate this Agreement on account of such event.

(ii)           Parties’ Termination Event.  Upon the occurrence of a Parties’ Termination
Event, this Agreement shall terminate following written notice by either the
Debtors or the Trade Committee of such occurrence, of any of the Termination
Events provided that (i) a breaching party shall not be entitled to terminate
this Agreement on account of its own breach of this Agreement, (ii) neither the
Trade Committee nor a Trade Committee Member shall be entitled to terminate
this Agreement on account of a breach by either the Trade Committee or a Trade
Committee Member of this Agreement, (iii) the Debtors may not terminate this
Agreement or cause this Agreement to be terminated by withdrawing the Modified
Plan for the purpose of filing another Plan with the effect of avoiding the Debtors’
obligations hereunder, and (iv) the Debtors and the Trade Committee shall be
entitled to a 5-day grace period following receipt of a termination notice to
cure any such alleged Termination Event.

15.           Effect of
Termination:  Upon termination of this Agreement pursuant
to Paragraph 14, all obligations hereunder shall terminate and shall be of no
further force and all Subject Claims shall be deemed to vote to reject the
Existing or Modified Plan (unless otherwise agreed to in writing by any Trade
Committee Member) and the Trade Committee and any Trade Committee Member shall
be entitled to object, oppose or otherwise seek to modify or delay approval or
confirmation of the Existing or Modified Plan or the occurrence of its
Effective Date; provided however, that any claim
for breach of this Agreement, other than a claim for breach of the
representation set out in Paragraph 16(e), shall survive termination and all
rights and remedies with respect to such claims shall not be prejudiced in any
way; provided further however, that the
breach of this Agreement by one or more Trade Committee Members shall not
create any rights or remedies against any non-breaching Trade Committee Member
unless such non-breaching Trade Committee Member has participated in or aided
and abetted the breach by the breaching Trade Committee Member; and provided further however, that any breach of this
Agreement by the Debtors (except for any bad faith breach) shall not give rise
to a claim or alleged claim for affirmative damages against the Debtors.  Except as set forth above in this Paragraph
15, upon such termination or consummation of the Modified Plan, any obligations
of the non-breaching Parties set forth in this Agreement shall be null and void
ab initio and all claims, causes of
action, remedies, defenses, setoffs, rights or other benefits of such
non-breaching Parties shall be fully preserved without any estoppel,
evidentiary or other effect of any kind or nature whatsoever.  The Parties acknowledge that upon termination
of this 

 

10

 

Agreement pursuant to
Paragraph 14 hereof, the Tolling Agreement shall continue in full force and
effect subject to its terms.

16.           Representations
and Warranties:  The Debtors and each Trade Committee Member,
on a several but not joint basis, represents and warrants to each other Party
that the following statements are true, correct and complete as of the date
hereof (except to the extent the Debtors require the approval and/or
authorization of the Bankruptcy Court) and to the extent applicable to such
party:

a.                     Corporate Power and Authority.  If not a natural person, it is duly
organized, validly existing, and, if applicable, in good standing under the
laws of the jurisdiction of its organization, and has all requisite corporate,
partnership or other power and authority to enter into this Agreement and to
carry out the transactions contemplated by, and perform its respective
obligations under, this Agreement.

b.                     Authorization. If not a natural person, the execution and
delivery of this Agreement and the performance of its obligations hereunder
have been duly authorized by all necessary corporate, partnership or other
action on its part.

c.                     Binding Obligation.  This Agreement has been
duly executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable in accordance with the terms hereof.

d.                     No Conflicts.  The
execution, delivery and performance by it (when such performance is due) of
this Agreement do not and shall not (i) violate any provision of law, rule or
regulation applicable to it, or, if applicable, any of its subsidiaries or its
certificate of incorporation or bylaws or other organizational documents or
those of any of its subsidiaries or (ii) except with respect to the Debtors,
conflict with, result in a breach of or constitute (with due notice or lapse of
time or both) a default under any material contractual obligation to which it
or, if applicable, any of its subsidiaries is a party.

e.                     Accuracy of Information. Accuracy of Information Provided.  The Debtors represent that, to the best of
their knowledge, after reasonable inquiry, (i) information provided to the
Trade Committee by the Debtors in connection with this Agreement, does not
contain any material misstatement of fact, nor does it fail to state a fact
necessary to make the information not materially misleading and (ii) the
statements made by the Debtors in the various representations set forth herein
are true and accurate.

17.           Amendment or
Waiver:  Except as otherwise specifically provided
herein, this Agreement may not be modified, amended or supplemented without the
prior written consent of the Required Parties. 
No waiver of any of the provisions of this Agreement shall be deemed or
constitute a waiver of any other provision of this Agreement, whether or not
similar, nor shall any waiver be deemed a continuing waiver.

18.           Notices:  Any notice required or desired to be served,
given or delivered under this Agreement shall be in writing, and shall be
deemed to have been validly served, given or delivered if provided by personal
delivery, or upon receipt of fax delivery or electronic mail delivery, as
follows:

a.                     if
to the Debtors, to Marc Abrams and Paul Shalhoub, Willkie Farr & Gallagher
LLP, 787 Seventh Avenue, New York, New York 10019, fax: 212-728-8111,
email: mabrams@willkie.com and pshalhoub@willkie.com; and

 

11

 

b.                     if
to the Trade Committee, to Edward Weisfelner, Brown Rudnick Berlack Israels
LLP, Seven Times Square, New York, NY 10036, fax: 212-209-4801, email:
eweisfelner@brownrudnick.com; and Steven Pohl, Brown Rudnick Berlack Israels
LLP, One Financial Center, Boston, MA 02111, fax: 617-856-8201, email:
spohl@brownrudnick.com.

19.           Governing Law;
Jurisdiction:  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION WHICH WOULD REQUIRE THE
APPLICATION OF THE LAW OF ANY OTHER JURISDICTION, AND ANY APPLICABLE PROVISIONS
OF THE BANKRUPTCY CODE.  By its execution
and delivery of this Agreement, each of the Parties hereto hereby irrevocably
and unconditionally agrees for itself that (i) any legal action, suit or
proceeding against it with respect to any matter under or arising out of or in
connection with this Agreement or for recognition or enforcement of any
judgment rendered in any such action, suit or proceeding, must be brought in
the Bankruptcy Court, and (ii) each such Party irrevocably accepts and submits
itself to the exclusive jurisdiction of the Bankruptcy Court, generally and
unconditionally, with respect to any such action, suit or proceeding, and
waives any objection it may have to venue or the convenience of the forum of
all matters arising out of or in connection with this Agreement.

20.           Specific
Performance:  This Agreement,
including without limitation the Parties’ agreement herein to support and vote
for the Modified Plan and to facilitate its confirmation and consummation, is
intended as a binding commitment enforceable in accordance with its terms.  It is understood and agreed by each of the
Parties hereto that money damages would not be a sufficient remedy for any
breach of this Agreement by any Party and each non-breaching Party shall be
entitled to seek specific performance and injunctive or other equitable relief
as a remedy of any such breach.

21.           Cooperation:  Each Party shall cooperate with
the other Parties to do or cause to be done all things as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the
intent and purpose of this Agreement and shall not take any action contrary to
the essential intent and principles of this Agreement.

22.           Headings: 
The headings of the sections, paragraphs and subsections of this
Agreement are inserted for convenience only and shall not affect the
interpretation hereof.

23.           Interpretation: 
This Agreement is the product of negotiations of the Parties, and in the
enforcement or interpretation hereof, is to be interpreted in a neutral manner,
and any presumption with regard to interpretation for or against any Party by
reason of that Party having drafted or caused to be drafted this Agreement, or
any portion hereof, shall not be effective in regard to the interpretation hereof.

24.           Successors and
Assigns:  This Agreement is intended to bind and
inure to the benefit of the Parties and their respective successors, assigns
(including, but not limited to, Transferees under Paragraph 10 above), heirs,
executors, administrators and representatives.

25.           No Third-Party
Beneficiaries:  Unless expressly stated herein, this
Agreement shall be solely for the benefit of the Parties hereto and no other
person or entity shall be a third-party beneficiary hereof.

26.           Counterparts:  This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
and all of which shall constitute one and the same Agreement.  

 

12

 

Delivery of an executed
signature page of this Agreement by facsimile or electronic mail shall be
effective as delivery of a manually executed signature page of this Agreement.

27.           Representation by Counsel:  Each Party acknowledges that it has been
represented by, or provided a reasonable period of time to obtain access to and
advice by, counsel with this Agreement and the transactions contemplated
herein.  Accordingly, any rule of law or any legal decision that would provide any Party with
a defense to the enforcement of the terms of this Agreement against such Party based upon lack of legal
counsel shall have no application and is expressly waived.

28.           Entire Agreement:  This Agreement and the exhibits and schedules
hereto constitute the entire agreement between
the Parties and supersedes all prior and contemporaneous agreements,
representations, warranties and understandings of the Parties, whether oral,
written or implied, as to the subject matter hereof.

29.           Several not Joint:  The agreements, representations and
obligations of the Parties under this Agreement are, in all respects, several
and not joint.

30.           Settlement Discussions:  This Agreement is part of a proposed
settlement of a dispute among the Parties. 
Nothing herein shall be deemed an admission of any kind.  Pursuant to Federal Rule of Evidence 408 and
any other applicable federal or state rules of evidence, this Agreement and all
discussions and negotiations relating hereto shall be privileged and shall not
be used in any manner, nor be admissible into evidence in any proceeding, other
than in a proceeding to obtain approval of the Modified Plan or to enforce or
interpret this Agreement.  If the
Bankruptcy Court refuses to confirm the Modified Plan or the Effective Date
does not occur through no fault or action of any Party hereto, the terms of
this Agreement shall not be binding on any of the Parties hereto and this
Agreement shall not be admissible for any purpose in any other action, matter
or proceeding.

[Rest of Page Intentionally
Left Blank]

 

13

 

	
  WILLKIE FARR &
  GALLAGHER LLP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Marc Abrams

  	
   

  
	
  Marc Abrams
Paul Shalhoub
(Members of the Firm)

  
787 Seventh Avenue
New York, NY 10019
Tel: (212) 728-8000

  
Counsel for the Debtors

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BROWN RUDNICK BERLACK
  ISRAELS LLP

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ 

  	
   

  
	
  Edward Weisfelner
Steven Pohl
(Members of the Firm)

  
120 West 45th Street 

  New York, NY 10036
Tel: (212) 704-0100

  
Counsel for the Trade Committee

  	
   

  

 

 

14

 

	
  Dated: March 16, 2006

  	
  ASM Capital, LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Douglas Wolfe

  
	
   

  	
   

  	
  By: Douglas Wolfe

  Name:

  Title: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: March 16, 2006

  	
  ASM Capital II, LP

  
	
   

  	
   

  
	
   

  	
  /s/ Douglas Wolfe

  
	
   

  	
  By: Douglas Wolfe

  Name:

  Title: General Counsel

  

 

 

15

 

	
  Dated: March     , 2006

  	
  Amroc Investments, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

16

 

	
  Dated: March 14, 2006

  	
   

  
	
   

  	
   

  	
   

  
	
  Avenue Investments, LP*

  	
   

  
	
   

  	
   

  	
   

  
	
  Avenue Investments, LP

  	
   

  
	
  By:

  	
  Avenue Partners, LLC, General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Sonia Gardner

  	
   

  
	
  By:

  	
  Sonia Gardner, Member

  	
   

  
	
   

  	
  * Amroc Investments, LLC holds claims for the benefit of Avenue
  Investments, LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: March 14, 2006

  	
   

  
	
   

  	
   

  	
   

  
	
  Avenue International, Ltd*

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Avenue International, Ltd.

  	
   

  
	
  By:

  	
  Avenue International Advisors, LLC,

  Its manager

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Sonia Gardner

  	
   

  
	
  By:

  	
  Sonia Gardner, Member

  	
   

  
	
   

  	
  * Amroc Investments, LLC holds claims for the benefit of Avenue
  International, Ltd

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: March 14, 2006

  	
   

  
	
   

  	
   

  	
   

  
	
  Avenue Special Situations Fund
  II, LP*

  	
   

  
	
   

  	
   

  	
   

  
	
  Avenue Special Situations Fund II, L.P.

  	
   

  
	
  By:

  	
  Avenue Capital Partners II, LLC, General
  Partner

  
	
  GL Partners II, LLC, Managing Member of
  General Partner

  
	
   

  	
   

  	
   

  
	
  /s/ Sonia Gardner

  	
   

  
	
  By:

  	
  Sonia Gardner, Member

  	
   

  
	
   

  	
  * Amroc Investments, LLC holds claims for the benefit of Avenue Special
  Situations Fund II, LP

  

 

 

17

	
  Dated: March 14, 2006

  	
   

  
	
   

  	
   

  	
   

  
	
  Avenue Special Situations Fund
  III, LP*

  	
   

  
	
   

  	
   

  	
   

  
	
  Avenue Special Situations Fund III, L.P.

  	
   

  
	
  By:

  	
  Avenue Capital Partners III, LLC, General
  Partner

  
	
  GL Partners III, LLC, Managing Member of
  General Partner

  
	
   

  	
   

  	
   

  
	
  /s/ Sonia Gardner

  	
   

  
	
  By:

  	
  Sonia Gardner, Member

  	
   

  
	
   

  	
  * Amroc Investments, LLC holds claims for the benefit of Avenue
  Special Situations Fund III, LP

  

 

 

18

 

 

	
  Dated: 
  March 20, 2006

  	
  Bear, Stearns & Co. Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Laura L. Torrado

  
	
   

  	
   

  	
  By:  Laura
  L. Torrado

  Name:

  Title:  Senior Managing Director

  

 

19

 

	
  Dated: 
  March 16, 2006

  	
  Canpartners Investments IV LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Mitch Julis

  
	
   

  	
   

  	
  By: 
  Mitch Julis

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Managing Partner

  

 

 

20

 

	
  Dated: 
  March 15, 2006

  	
  Contrarian Funds, LLC

  
	
   

  	
  By: 
  Contrarian Capital Management, LLC as Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Jon R. Bauer

  
	
   

  	
   

  	
  By: 
  Jon R. Bauer

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 
  March 15, 2006

  	
  Contrarian Capital Trade Claims, LP

  
	
   

  	
  By: 
  Contrarian Capital Management, LLC as General Partner

  
	
   

  	
   

  
	
   

  	
  /s/ Jon R. Bauer

  
	
   

  	
  By: 
  Jon R. Bauer

  
	
   

  	
  Name:

  
	
   

  	
  Title: 
  Managing Member 

  

 

 

21

 

	
  Dated: 
  March     , 2006

  	
  Deutsche Bank Securities Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

22

 

	
  Dated: 
  March 17, 2006

  	
  Longacre Master Fund, Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Steven Weissman

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
  Name: 
  Steven Weissman

  
	
   

  	
   

  	
  Title: 
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 
  March 17, 2006

  	
  Longacre Acquisition, LLC as nominee
  and agent for SPhinX Distressed Fund SPC acting for and on behalf of the
  SPhinX Distressed (Longacre), Segregated Portfolio

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Steven Weissman

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
  Name: 
  Steven Weissman

  
	
   

  	
   

  	
  Title: 
  Director

  

 

23

 

	
  Dated: 
  March     , 2006

  	
  Merrill Lynch Credit Products, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

24

 

 

	
  Dated: 
  February     , 2006

  	
  Satellite Senior Income Fund, LLC

  By:  Satellite Asset Management, L.P.
                Its Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Simon Raykher

  
	
   

  	
   

  	
  By: 
  Simon Raykher

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 
  February     , 2006

  	
  Satellite Senior Income
  Fund II, LLC

  By: 
  Satellite Asset Management, L.P.
                Its Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Simon Raykher

  
	
   

  	
   

  	
  By: 
  Simon Raykher

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  General Counsel

  

 

 

25

 

 

	
  Dated: 
  February     , 2006

  	
  Sierra Liquidity Fund, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Scott D. August

  
	
   

  	
   

  	
  By: 
  Scott D. August

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 
  February     , 2006

  	
  Sierra Nevada Liquidity Fund, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Scott D. August

  
	
   

  	
   

  	
  By: 
  Scott D. August

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Vice President

  

 

 

26

 

	
  Dated: 
  February     , 2006

  	
  SPCP Group, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Fred Fogel

  
	
   

  	
   

  	
  By: 
  Fred Fogel

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  General Counsel

  

 

 

27

 

 

	
  Dated: 
  February     , 2006

  	
  Special Situations Investing Group, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Albert Dombrowski

  
	
   

  	
   

  	
  By: 
  Albert Dombrowski

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 
  February     , 2006

  	
  SSIG SPF One LQ, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Albert Dombrowski

  
	
   

  	
   

  	
  By: 
  Albert Dombrowski

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

28

 

	
  Dated: 
  March 15, 2006

  	
  Stark Event Trading, Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Colin Lancaster

  
	
   

  	
   

  	
  By: 
  Colin Lancaster

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 
  March 15, 2006

  	
  Staro Asset Management, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Colin Lancaster

  
	
   

  	
   

  	
  By: 
  Colin Lancaster

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title: 
  Authorized Signatory

  

 

 

29

 

EXHIBIT A

 

30

 

AD HOC
ADELPHIA TRADE CLAIMS COMMITTEE

 

c/o
Brown Rudnick Berlack Israels LLP

Seven
Times Square

New
York, NY 10036

 

April
    , 2006

 

TO:                          THE
HOLDERS OF OPERATING COMPANY TRADE CLAIMS IN THE  ADELPHIA COMMUNICATIONS CORPORATION, ET AL BANKRUPTCY CASES

Brown
Rudnick Berlack Israels LLP (“Brown Rudnick”) is counsel to the Ad Hoc Adelphia Trade Claims Committee (the “Trade Claims
Committee”) in the bankruptcy cases of Adelphia Communications Corporation, et al. (collectively, the “Debtors”), Chapter 11 Case No.
02-41729 (REG) (Jointly Administered). 
The Trade Claims Committee is comprised of certain institutions holding
claims against the Operating Company Debtor Groups,(1) which institutions are
set forth in the Sixth Amended 2019 Statement filed on September 26, 2005, by
Brown Rudnick, as the same may be amended.

We
write to advise you of the Trade Claims Committee’s position regarding the
Debtors’ Modified Fourth Amended Joint Chapter 11 Plan of Reorganization Under
Chapter 11 of the Bankruptcy Code (the “Plan”), which modifies the Debtors’
November 21, 2005 proposed plan to reflect, among other things, the agreement
described herein that was reached by the Trade Claims Committee and the Debtors
in respect of Operating Company Trade Claim distributions (the “Operating
Company Trade Claims Settlement”).  The
Plan, described in and annexed to the Supplement to the Debtors’ Fourth Amended
Disclosure Statement Pursuant to Section 1125 of the Bankruptcy Code (the “Disclosure
Statement Supplement”), as modified to reflect the Operating Company Trade
Claims Settlement, provides, among other things, how trade claims against the
Operating Company Debtor Groups will be treated.  (Capitalized terms not otherwise defined
herein shall have the meanings assigned to them in the Disclosure Statement
Supplement or the Plan.)

FOR
THE REASONS DESCRIBED BELOW, THE TRADE CLAIMS COMMITTEE SUPPORTS THE PLAN AS
MODIFIED TO REFLECT THE OPERATING COMPANY TRADE CLAIMS SETTLEMENT AND BELIEVES
THAT THE PLAN IS IN THE BEST INTERESTS OF THE HOLDERS OF TRADE CLAIMS AGAINST
THE OPERATING COMPANY DEBTOR GROUPS UNDER THE CIRCUMSTANCES OF THESE CASES AND
STRONGLY URGES THE HOLDERS OF OPERATING COMPANY TRADE CLAIMS TO VOTE TO ACCEPT
THE PLAN.

(1)                  The
Operating Company Debtor Groups are all Debtor Groups described in the Debtors’
Fourth Amended Disclosure Statement except the Holding Company Debtor Group.

 

31

 

The Trade Claims Committee believes that the
recoveries (and, particularly, the rate of post-petition interest) to be
provided to holders of Trade Claims against the Operating Company Debtor Groups
(the “Operating Company Trade Creditors”) in the Plan, as modified to reflect
the Operating Company Trade Claims Settlement, represent a fair and reasonable
compromise of the issues and positions raised by the Trade Claims Committee in
support of Operating Company Trade Creditors’ recoveries.  Throughout these cases, the Trade Claims
Committee, together with its legal advisor, Brown Rudnick, has advanced the
position that Operating Company Trade Creditors are entitled to post-petition
interest at a rate that is reflective of such Operating Company Trade Creditors’
rights under state law, and not merely the Federal Judgment Rate (in these
cases, approximately 2% per annum), that was provided for in the November 21,
2005 version of the Plan for creditors without contracts or with contracts that
did not include a stated rate of interest that is enforceable.  Specifically, the Trade Claims Committee has
analyzed the state judgment rates in the primary states in which the Debtors
conduct business, and has determined that a post-petition interest rate of 8%
per annum fairly and adequately reflects the rights afforded to Operating
Company Trade Creditors under state law.

 

As a result of the Trade Claims Committee’s
efforts to advance its position in these cases and through negotiations, the
parties have reached a consensual resolution regarding the post-petition
interest rate to be afforded to Operating Company Trade Creditors, the terms of
which are reflected in the Plan as modified to reflect the Operating Company
Trade Claims Settlement.  Specifically,
holders of Operating Company Trade Claims against all Operating Company Debtor
Groups (whether or not there is an agreement or instrument giving rise to such
Claims) will be paid in full plus post-petition interest at the rate of 8% per
annum, except for Trade Claims against a limited number of Debtor
Groups.(2)   That rate of post-petition
interest will be paid regardless of whether such claims are (i) supported by a
contract with a stated interest rate; or (ii) not supported by a contract with
a stated interest rate.  The Trade Claims
Committee submits that this resolution represents a fair and reasonable outcome
under the circumstances of these Chapter 11 cases.  The form of consideration to be paid on
account of such Operating Company Trade Claims is also addressed in the
Operating Company Trade Claims Settlement. 
While the Operating Company Trade Claims Settlement provides that such
claims will be paid largely in cash, subject to certain exceptions and in some
circumstances, payment may include a significant amount of stock.  To fully understand the form of consideration
to be paid, you should read the Operating Company Trade Claims Settlement in
coordination with the Plan.

 

In addition, the Debtors have agreed to
pay the reasonable fees (based upon hourly billings) and expenses incurred by
the Trade Claims Committee’s professionals in representing the Trade Claims
Committee during these cases.  As of
March 31, 2006, the Trade Claims Committee’s professionals have incurred fees
(based upon hourly billings) plus expenses of approximately $2.13 million; the
Trade Claims Committee’s professionals will incur further fees and expenses on
behalf of the Trade Claims Committee through the end of these cases.  In 

 

(2)                  More
specifically, the accrual of postpetition interest with respect to Trade Claims
against the Arahova, FrontierVision Holdco and Olympus Parent Debtor Groups
remains subject to the Inter-Creditor Dispute proceeding, and the payment of
postpetition interest with respect to these three groups and the Ft. Myers
Debtors Group are dependant upon the provisions of Section 8.14 of the Plan.

 

32

 

addition, the Trade
Claims Committee has agreed that Brown Rudnick Berlack Israels LLP is entitled
to a contingent fee on account of the increase in the recoveries for Operating
Company Trade Claims.  The contingent fee
is computed based upon the difference between the post-petition interest at the
federal judgment rate as afforded to unsecured creditors under the November 21,
2005 version of the Plan and the 8% post-petition interest rate achieved
through the Operating Company Trade Claims Settlement.  As part of the consensual resolution reached,
the Debtors will not oppose or object to any contingent fee claim filed by
Brown Rudnick Berlack Israels LLP, which contingent fee claim shall not exceed
$5 million (less the amount of the reimbursement of the reasonable fees (based
upon hourly billing) and expenses described above).

 

The foregoing is not intended as a substitute for the Disclosure
Statement Supplement. Operating Company Trade Claim holders should read the
Disclosure Statement Supplement and the Plan in their entirety, and then make
their own respective independent
decision as to whether the Plan is acceptable.

The
Debtors have provided you with a Ballot to vote to accept or reject the Plan,
which Plan has been modified to reflect the Operating Company Trade Claims
Settlement.  In order to have your vote
counted, you must complete and return the ballot in accordance with the
procedures set forth therein and in the accompanying Disclosure Statement Supplement
and Disclosure Statement Approval/Voting Procedures orders.  PLEASE READ THE DIRECTIONS ON THE BALLOT
CAREFULLY AND COMPLETE YOUR BALLOT IN ITS ENTIRETY BEFORE RETURNING IT TO THE
DEBTORS’ BALLOTING AGENT.

Your
timely vote is important, as only those holders of Operating Company Trade Claims
that timely vote on the Plan will have their vote counted for purposes of
determining whether the classes of Claims in the Plan in which Operating
Company Trade Claims have been classified have accepted the Plan.  In short, the Trade Claims
Committee supports approval of the Plan, as modified to reflect the Operating
Company Trade Claims Settlement,  and
strongly recommends that you timely vote to accept the Plan in accordance with
the procedures that have been established by the Bankruptcy Court.  If you already have voted to reject the Plan,
the Trade Claims Committee strongly recommends that you change your vote to one
accepting the Plan in accordance with the procedures that have been established
by the Bankruptcy Court. If you need a new ballot, please call [TO COME].

[remainder
of page intentionally left blank]

 

33

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  Attorneys for the Ad
  Hoc Trade Claims Committee

  
	
   

  	
   

  	
   

  
	
   

  	
  BROWN RUDNICK BERLACK ISRAELS
  LLP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Edward S. Weisfelner,
  Esq.

  

 

34

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