Document:

Exhibit 10.4

 

EXECUTION COPY

THIS INCREMENTAL TERM SUPPLEMENT (this “Supplement”),
is dated as of March 29, 2006, among CSC HOLDINGS, INC., a Delaware
corporation (the “Company”), the banks which are parties hereto,
together with their respective successors and assigns (the “Incremental Term
Lenders”), and BANK OF AMERICA, N.A., as Administrative Agent (the “Administrative
Agent”).

WHEREAS, the Company, certain of its subsidiaries
named therein, the several banks whose names are set forth on the signature pages thereof,
and the Administrative Agent have entered into that certain Credit Agreement,
dated as of February 24, 2006 (as amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof, the “Credit
Agreement”; unless otherwise defined herein, all capitalized terms used in
this Incremental Term Supplement shall have the meanings ascribed thereto in
the Credit Agreement), which Credit Agreement grants the Company, the
Incremental Term Lenders and the Administrative Agent an option to establish a separate tranche of commitments and loans
subject, among other things, to the execution and delivery of an Incremental
Term Supplement;

NOW, THEREFORE, pursuant to Section 2.14
of the Credit Agreement, and in consideration of the mutual covenants and
agreements herein contained, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto covenant and agree as follows:

Section 1       The
Incremental Term Borrowing. Subject to the terms and conditions set forth
herein and in the Credit Agreement, each Incremental Term Lender severally
agrees to make a single loan to the Company on the Incremental Term Closing
Date in an amount not to exceed such Incremental Term Lender’s Incremental Term
Commitment. The Incremental Term Borrowing shall consist of Incremental Term
Loans made simultaneously by the Incremental Term Lenders in accordance with
their respective Applicable Percentage of the Incremental Term Facility. Amounts
borrowed under this Section 1 and repaid or prepaid may not be
reborrowed. Incremental Term Loans may be Base Rate Loans or Eurodollar Rate
Loans, as further provided herein or in the Credit Agreement.

Section 2       Borrowings,
Conversions and Continuations of Incremental Term Loans. After giving
effect to all Incremental Term Borrowings, all conversions of Incremental Term
Loans from one Type to the other, and all continuations of Incremental Term
Loans as the same Type, there shall not be more than ten (10) Interest
Periods in effect in respect of the Incremental Term Facility.

Section 3       Termination
of Commitments. The aggregate Incremental Term Commitments shall be
automatically and permanently reduced to zero on the date of the Incremental
Term Borrowing.

Section 4       Repayment
of Incremental Term Loans. The Company shall repay to the Incremental Term
Lenders the aggregate principal amount of all Incremental Term Loans
outstanding in twenty-eight (28) consecutive quarterly installments which
except for the final installment shall be due on the last day of each March,
June, September and December, beginning with June 30, 2006. Subject
to adjustment in connection with prepayments made pursuant to Section 2.04
of the Credit Agreement, (i) each of the first twenty-four (24)
installments shall be in the principal amount equal to 0.25% of the original
aggregate principal

 

amount of the Incremental
Term Loan, (ii) the following three (3) installments shall be in the
principal amount equal to 23.50% of the original aggregate principal amount of
the Incremental Term Loans, and (iii) the final principal repayment
installment of the Incremental Term Loans, due on March 29, 2013 (such
date, the “Maturity Date” for the Incremental Term Facility), shall be in an
amount equal to the aggregate principal amount of all Incremental Term Loans
outstanding on such date.

Section 5       Incremental Term Opt-out. With
respect to any prepayment of the Incremental Term Facility pursuant to Section 2.04(b) of
the Credit Agreement, any Incremental Term Lender, at its option, to the extent
that any Term A Loans are then outstanding, may elect not to accept such
prepayment. Upon receipt by the Administrative Agent of any such prepayment of
the Incremental Term Facility, the amount of the prepayment that is available
to prepay the Incremental Term Loans (the “Prepayment Amount”) shall be
deposited in a blocked, interest bearing deposit account of one or more of the
Loan Parties at Bank of America in the name of the Collateral Agent and under
the sole dominion and control of the Administrative Agent, and otherwise
established in a manner satisfactory to the Administrative Agent (a “Cash
Collateral Account”), on terms reasonably satisfactory to the
Administrative Agent and the Company, pending application of such amount on the
Prepayment Date as set forth below and promptly after the date of such receipt,
the Administrative Agent shall notify the Incremental Term Lenders of the
amount available to prepay the Incremental Term Loans and the date on which
such prepayment shall be made (the “Prepayment Date”), which date shall
be 10 Business Days after the date of such receipt. Any Incremental Term Lender
declining such prepayment (a “Declining Lender”) shall give written
notice to the Administrative Agent by 11:00 a.m. on the Business Day
immediately preceding the Prepayment Date. On the Prepayment Date, an amount
equal to that portion of the Prepayment Amount accepted by the Incremental Term
Lenders other than the Declining Lenders (such Lenders being the “Accepting
Lenders”) to prepay Incremental Term Loans owing to such Accepting Lenders
shall be withdrawn from the applicable Cash Collateral Account and applied
ratably to prepay Incremental Term Loans owing to such Accepting Lenders in the
manner described in Section 2.04(b) of the Credit Agreement for such prepayment. For the avoidance of doubt, interest
shall continue to accrue on the Incremental Term Loans of each Accepting Lender
through the Prepayment Date applicable to such Loans. Any amounts that would
otherwise have been applied to prepay Incremental Term Loans owing to Declining
Lenders shall instead be applied ratably to prepay the Term A Loans in the
manner described in Section 2.04(b) of the Credit Agreement for such prepayment. Any interest from such account shall
be returned to the Company on the Prepayment Date to the extent not applied to
prepay the Term A Loans or the Incremental Term Loans on the Prepayment Date.

Section 6       Applicable Rate. The Applicable
Rate with respect to the Incremental Term Facility shall be 0.75% for Base Rate
Loans and 1.75% for Eurodollar Rate Loans.

Section 7       Conditions
Precedent to the Making of Incremental Term Loans. The obligation of each
Incremental Term Lender to make its Incremental Term Loan hereunder is subject
to the satisfaction of the following conditions precedent on or prior to the
date of the making of such Incremental Term Loan:

(a)           Execution of
Incremental Term Supplement and Incremental Term Notes. The Administrative
Agent’s receipt of the following, each of which shall be originals or

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telecopies
(followed promptly by originals) unless otherwise specified, each properly
executed by a Responsible Officer of the Company, each dated the Incremental
Term Closing Date (or, in the case of certificates of governmental officials, a
recent date before the Incremental Term Closing Date) and each in form and
substance satisfactory to the Administrative Agent and each of the Incremental
Term Lenders:

(i)  this Incremental Term Supplement duly executed and delivered
by each of the Company, the Incremental Term Lenders and the Administrative
Agent; and

(ii) an Incremental Term Note executed by the Company in favor of
each Incremental Term Lender requesting an Incremental Term Note.

(b)           Pledge Agreement.
Each Incremental Term Lender shall have received from the Collateral Agent
evidence satisfactory to it that the Collateral Agent has received all
certificates representing Pledged Equity Interests (accompanied by undated
stock powers executed in blank).

(c)           Signatures. The
Company shall have certified to the Administrative Agent (with copies to be
provided for each Incremental Term Lender) the name and signature of each of
the persons authorized (i) to sign on its respective behalf this
Incremental Term Supplement and the Incremental Term Notes and (ii) to
borrow under this Incremental Term Supplement and the Credit Agreement. The
Incremental Term Lenders may conclusively rely on such certifications until
they receive notice in writing from the Company to the contrary.

(d)           Proof of Action.
The Administrative Agent shall have received certified copies of all necessary
action taken by the Company to authorize the execution, delivery and
performance of this Incremental Term Supplement.

(e)           Opinions
of Counsel to the Company. The Incremental Term Lenders shall have received favorable opinions of:

(i)   Victoria D. Salhus, Esq., Senior Vice President, Deputy
General Counsel and Secretary for the Company and the Restricted
Subsidiaries, substantially in the form of Exhibit B hereto; and

(ii)  Sullivan &
Cromwell LLP, special New York counsel to the Company and the Restricted
Subsidiaries, substantially in the form of Exhibit C hereto;

and covering such other matters as any Incremental Term Lender or
special New York counsel to the Administrative Agent, Pillsbury Winthrop
Shaw Pittman LLP, may reasonably
request (and for purposes of such opinions such counsel may rely upon opinions
of counsel in other jurisdictions, provided that such other counsel are
satisfactory to special counsel to the Administrative Agent and such other
opinions state that the Incremental Term Lenders are entitled to rely thereon).

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(f)            Opinion of
Incremental Term Lenders’ Counsel. Each Incremental Term Lender
shall have received a favorable opinion of Pillsbury Winthrop Shaw Pittman LLP,
special New York counsel to the Administrative Agent, substantially in the form
of Exhibit D hereto and covering such other matters as any
Incremental Term Lender may reasonably request.

(g)           Compliance
Certificate. The Incremental Term Lenders shall have received a Compliance
Certificate showing that, after giving effect to this Incremental Term
Supplement and the Indebtedness contemplated to be incurred by the Company on
the Incremental Term Closing Date and the use of proceeds thereof, the Company
is in compliance with the provisions of this Incremental Term Supplement on a
pro forma basis as of the Incremental Term Closing Date.

(h)           Other Documents.
Such other documents, filings, instruments and papers relating to the documents
referred to herein and the transactions contemplated hereby (including officer’s
certificates of the Company and each Restricted Subsidiary bringing down the
representations made on the Closing Date with respect to the organizational
documents of such Persons), as any Incremental Term Lender or special counsel
to the Administrative Agent shall reasonably require shall have been received
by the Administrative Agent.

(i)            Certain Fees.
All fees required to be paid to the Administrative Agent, the Joint Lead
Arrangers and the Incremental Term Lenders on or before the Incremental Term
Closing Date shall have been paid. Unless waived by the Administrative Agent,
the Company shall have paid all fees, charges and disbursements of counsel to
the Administrative Agent to the extent properly invoiced prior to or on the Incremental
Term Closing Date, plus such additional amounts of such fees, charges and
disbursements as shall constitute its reasonable estimate of such fees, charges
and disbursements incurred or to be incurred by it through the closing
proceedings (provided that such estimate shall not thereafter preclude a
final settling of accounts between the Company and the Administrative Agent).

(j)            Solvency
Certificate. The Incremental Term Lenders shall have received a certificate from the chief financial
officer of the Company substantially in the form of Exhibit E
hereto, showing that, after giving effect to this Incremental Term Supplement
and the Indebtedness contemplated to be incurred by the Company on the
Incremental Term Closing Date and the anticipated use of proceeds thereof
(including the making of the special dividend referred to in clause (ii) of
Section 1.04 to Schedule II hereto), the Company is solvent.

(k)           Debt Ratings.
The Incremental Term Facility shall have received a debt rating from Moody’s
and S&P.

(l)            Regulatory
Approvals. The Company shall have obtained the approvals of any regulatory
authority set forth on Schedule 6.03 to the Credit Agreement required
with respect to this Incremental Term Supplement (other than as specified in
such Schedule 6.03).

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Without
limiting the generality of the provisions of Section 9.04 of the
Credit Agreement, for purposes of determining compliance with the conditions
specified in this Section 7, each Incremental Term Lender that has
signed this Incremental Term Supplement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to an Incremental Term Lender unless the Administrative Agent
shall have received notice from such Incremental Term Lender prior to the
proposed Incremental Term Closing Date specifying its objection thereto.

Section 8       Covenants. The Company shall, and
shall cause each of the Restricted Subsidiaries to, comply with each covenant
contained in (i) Schedule II hereto and (ii) the Credit
Agreement (other than the Revolver/Term A Covenants, which are solely for the
benefit of the Revolving Credit Lenders and the Term A Lenders).

Section 9       Events of Default. Each party
hereto hereby acknowledges and agrees that only the Events of Default set forth
in Sections 8.01(a),  (b)(ii), (d)(ii), (e), (g),
(h), (i)(ii), (l) and (m) of the Credit
Agreement shall apply to the Incremental Term Facility.

Section 10     Compliance Certificate. Each party
hereto hereby agrees that the Compliance Certificate to be delivered to the
Incremental Term Lenders pursuant to Section 7.01(d) of the
Credit Agreement shall be substantially in the form of Exhibit F
attached hereto.

Section 11     Joinder. By executing and delivering
this Incremental Term Supplement, and upon satisfaction of the conditions set
forth in Section 7 hereof and Section 2.14 of the
Credit Agreement, each Incremental Term Lender hereby (a) becomes a party
to the Credit Agreement as a “Lender” thereunder with the same force and effect
as if originally named therein as a Lender, and (b) expressly, irrevocably
and absolutely assumes all obligations and liabilities of a “Lender” under the
Credit Agreement. Each reference to a “Lender” in the Credit Agreement shall be
deemed to include each Incremental Term Lender.

Section 12     Terms
Incorporated. All of the terms and conditions of the Credit Agreement are
hereby incorporated in this Incremental Term Supplement by reference thereto as
fully and to the same extent as if set forth herein, and the Credit Agreement,
as supplemented hereby, is hereby ratified, approved and confirmed as of the
date hereof.

Section 13     Counterparts.
This Incremental Term Supplement may be executed in counterparts (and by
different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.

Section 14     GOVERNING
LAW. THIS INCREMENTAL TERM SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the
parties hereto have caused this Incremental Term Supplement to be duly executed
as of the day and year first above written.

 

 

	
  

  	
  CSC HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ 

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  

 

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  BANK OF AMERICA,
  N.A.,

  	
   

  
	
   

  	
  as Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ 

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

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  BANK OF AMERICA,
  N.A.,

  	
   

  
	
   

  	
  as Incremental Term Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ 

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  

 

 

 8Exhibit 10.5

April 28, 2006

Mr. Michael Huseby

Cablevision Systems Corporation

1111 Stewart Avenue

Bethpage, NY 11714

Dear Mike:

This letter will confirm the terms of your continued
employment by Cablevision Systems Corporation (the “Company”).

Your title continues to be Executive Vice President
and Chief Financial Officer and you continue to report to the President and
Chief Executive Officer. You agree to devote substantially all of your business
time and attention to the business and affairs of the Company.

Your annual base salary will be a minimum of $800,000,
subject to review and potential increase by the Compensation Committee in its
discretion. Your annual target bonus will be 80% of the salary paid to you
during the year for which the bonus is being paid, subject to review and
potential increase by the Compensation Committee in its discretion. The
decision whether or not to pay a bonus, and the amount of such a bonus, if any,
is made by the Compensation Committee in its sole discretion. Your annual base
salary and annual bonus target (as each may be increased from time to time in
the Compensation Committee’s discretion) will not be reduced during the term of
this letter.

In addition, if
you purchase a primary residence on Long Island before the end of calendar year
2006, the Company will reimburse you for your reasonable out-of-pocket carrying
costs (net of any tax or other savings or rental income), as determined by the
Company, with respect to your existing home in Denver, Colorado until such time
as you sell your Denver home, provided that such reimbursement shall be limited to a maximum of
$10,000 per month for a maximum of twelve months. Such reimbursement
amount, if any, will result in an equal reduction in any future annual bonuses
you would otherwise receive from the Company, if any.

You will continue to be eligible to participate in all
employee benefits and long-term equity and other incentives on the same basis
as other similarly situated executives, all subject to the discretion of the
Compensation Committee.

If your employment with the Company is terminated
prior to March 1, 2009 (i) by the Company (other than for “Cause”) or
(ii) by you for “Good Reason” (other than if “Cause” then exists) then,
subject to your execution and the effectiveness of a severance

 

agreement to the
Company’s satisfaction (including, without limitation, non-compete (limited to
one year), non-disparagement, non-solicitation, confidentiality, and further
cooperation obligations and restrictions on you as well as a general release by
you of the Company and its affiliates), the Company will provide you with the
following:

(1)            Severance
in an amount to be determined by the Compensation Committee (the “Severance
Amount”), but in no event less than two (2) times the sum of your annual
base salary and your annual target bonus as in effect at the time your
employment terminates. Sixty percent (60%) of the Severance Amount will be payable to you on the six-month
anniversary of the date your employment so terminates (the “Termination Date”)
and the remaining forty percent (40%) of the Severance Amount will be payable
to you on the twelve-month anniversary of the Termination Date; and

(2)            A prorated bonus based on
the number of weeks of the calendar year you worked for the Company through the
Termination Date, provided that
such bonus, if any, will be payable to you if and when such bonuses are
generally paid to similarly situated employees and will be based on your then current annual target bonus as well as
Company and your business unit performance as determined by the Compensation
Committee in its discretion, but without adjustment for your individual
performance.

For purposes of this letter, “Cause” means,
as determined by the Compensation Committee, your (i) commission of an act
of fraud, embezzlement, misappropriation, willful misconduct, gross negligence
or breach of fiduciary duty against the Company or an affiliate thereof, or
(ii) commission of any act or omission that results in a conviction, plea
of no contest, plea of nolo  contendere, or imposition of unadjudicated
probation for any crime involving moral turpitude or any felony.

For purposes of this letter, “Good Reason” means that (1) without
your consent, (A) your base salary or annual target bonus (as each may be
increased from time to time in the Compensation Committee’s sole discretion) is
reduced, (B) you are no longer Chief Financial Officer of the Company or
(C) you report directly to someone other than the Chairman of the Board of
Directors, Chief Executive Officer, President or a Vice Chairman of the
Company, (2) you have given the Company written notice, referring
specifically to this letter and definition, that you do not consent to such
action, (3) the Company has not corrected such action within 30 days of
receiving such notice, and
(4) you voluntarily terminate your employment with the Company within 90
days following the happening of the action described in subsection
(1) above.

This letter does not constitute a guarantee of
employment for any definite period. Your employment is at will and may be
terminated by you or the Company at any time, with or without notice or reason.

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The Company may withhold from any payment due to you
any taxes required to be withheld under any law, rule or regulation. If
any payment otherwise due to you hereunder would result in the imposition of
the excise tax imposed by Section 4999 of the Internal Revenue Code, the
Company will instead pay you either (i) such amount or (ii) the
maximum amount that could be paid to you without the imposition of the excise
tax, depending on whichever amount results in your receiving the greater
amount of after-tax proceeds (as reasonably determined by the Company). To the
extent you would otherwise be entitled to a payment (including the Severance Amount)
or benefit that would be subject to additional tax under Section 409A of
the Internal Revenue Code, such payment or benefit will be delayed and will
begin being provided on the earlier of the six-month anniversary of your date
of termination or your death or disability (within the meaning of
Section 409A).

More information regarding your employment is
contained in the Company’s Employee Handbook.

This letter is personal to you and without the prior
written consent of the Company shall not be assignable by you otherwise than by
will or the laws of descent and distribution. This letter shall inure to the
benefit of and be enforceable by your legal representatives. This letter shall
inure to the benefit of and be binding upon the Company and its successors and
assigns.

To the extent
permitted by law, you and the Company waive any and all rights to a jury trial
with respect to any matter relating to this letter.

This letter will
be governed by and construed in accordance with the law of the State of New York
applicable to contracts made and to be performed entirely within that State.

Both the Company and you hereby irrevocably submit to
the jurisdiction of the courts of the State of New York and the federal courts
of the United States of America located in the State of New York solely in
respect of the interpretation and enforcement of the provisions of this letter,
and each of us hereby waives, and agrees not to assert, as a defense that
either of us, as appropriate, is not subject thereto or that the venue thereof
may not be appropriate. We each hereby agree that mailing of process or other
papers in connection with any such action or proceeding in any manner as may be
permitted by law shall be valid and sufficient service thereof.

This letter may not be amended or modified otherwise
than by a written agreement executed by the parties hereto or their respective
successors and legal representatives. The invalidity or unenforceability of any
provision of this letter shall not affect the validity or enforceability of any
other provision of this letter. It is the parties’ intention that this letter
not be construed more strictly with regard to you or the Company.

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You agree to keep this letter and its terms strictly
confidential (unless it is made public by the Company); provided
that (1) you are authorized to make any disclosure required of you by any
federal, state or local laws or judicial proceedings, after providing the
Company with prior written notice and an opportunity to respond to such
disclosure (unless such notice is prohibited by law) and (2) you are
authorized to disclose this letter and its terms to your legal, financial and
tax advisors and your representatives may disclose to any and all persons,
without limitation of any kind, the tax treatment and tax structure of this
letter and all materials of any kind (including opinions or other tax analyses)
that are provided to you relating to such tax treatment or structure.

This letter reflects the entire under­standing and
agreement of you and the Company with respect to the subject matter hereof and
supersedes all prior understandings and agreements (including, without
limitation, that certain offer letter dated August 2, 2004 as amended on March 2,
2005) but does not supercede the explicit terms of any executed award
letters you may have with respect to equity or long-term incentives.

This letter will automatically terminate, and be of no
further force or effect, on the close of business on March 1, 2009 (other
than with respect to such matters which, by their terms, apply beyond such
date).

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  /s/ Hank Ratner

  
	
   

  	
  Hank Ratner

  
	
   

  	
  Vice Chairman

  

 

	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
  /s/ Michael
  Huseby

  	
   

  
	
  Michael Huseby

  	
   

  

 

 4

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