Document:

exhibit10_8.htm

     

     

    EXHIBIT
10.8

    FOURTH
AMENDMENT TO RESTRUCTURING AGREEMENT

     

    THIS
FOURTH AMENDMENT TO RESTRUCTURING AGREEMENT (this “Amendment”‘) is made
and entered into as of October 30, 2009, by and between the following
parties:

     

    
      	
               
      

            	
              (a)

            	
              Paul
      G. Allen (the “Undersigned
      Holder”); and

            

    

     

    
      	
               
      

            	
              (b)

            	
              Charter
      Investment, Inc. (“CII”);
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              Charter
      Communications, Inc., a Delaware corporation (“CCI” or the
      “Company”
      and the Undersigned Holder, CII and the Company, each, a “Party”, and
      collectively, the “Parties”).

            

    

     

    RECITALS

     

    WHEREAS, the Company and the
Undersigned Holder are parties to that certain Restructuring Agreement dated as
of February 11, 2009, as amended on July 30, 2009 and September 24, 2009 (as so
amended, the “Agreement”) governing
certain matters regarding the proceedings commenced on March 27, 2009 (the
“Petition
Date”) upon the filing by CCI and certain of its direct and indirect
subsidiaries (collectively, the “Debtors”) of a
voluntary petition for relief pursuant to chapter 11 of title 11 of the United
States Code in the United States Bankruptcy Court for the Southern District of
New York (the “Bankruptcy
Court”);

     

    WHEREAS, pursuant to the
Agreement, the Undersigned Holder agreed to support a plan of reorganization
consistent in all material respects with, and on terms and conditions no less
favorable than, the terms and conditions set forth in the Agreement and the Term
Sheet incorporated therein;

     

    WHEREAS, in accordance with
the Agreement, on March 27, 2009, the Debtors filed the Debtors’ Joint Plan
of Reorganization Pursuant to chapter 11 of title 11 of the United
States Code, which plan of reorganization has subsequently been modified in
accordance with the Agreement, including the non-material modifications to the
plan of reorganization filed with the Bankruptcy Court on May 7, 2009 and
July 15, 2009 (as the same may be amended from time to time in accordance
with the terms of the Agreement, the “Plan”);
and

     

    WHEREAS, the Parties hereto
wish to amend the Agreement to the extent provided herein.

     

    AMENDMENT TO THE
AGREEMENT

     

    NOW, THEREFORE, in
consideration of these premises and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereto
agree as follows:

     

    1. The
Company’s Responsibilities.  Section (4)(b)(v)
of the Agreement is hereby amended and restated in its entirety to read as
follows:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              “(v)

            	
              cause
      the Effective Date of the Plan to occur no later than on or before
      November 12, 2009; but notwithstanding the following proviso in no event
      shall the Confirmation Date occur in December; provided, that if consents,
      approvals or waivers required to be obtained from governmental authorities
      in connection with the Plan with respect to Franchises, licenses and
      permits covering areas serving at least 80% of the basic subscribers have
      not been obtained on or before November 12, 2009, then cause the Effective
      Date of the Plan to occur no later than on or before December 15,
      2009; and”

            

    

     

    2. Termination.  Section (8)(a)(vii)
of the Agreement is hereby amended and restated in its entirety to read as
follows:

     

    
      	
               
      

            	
              “(vii)

            	
              the
      later of either (a) the Effective Date shall not have occurred on or
      before November 12, 2009 or (b) if consents, approvals or waivers
      required to be obtained from governmental authorities in connection with
      the Plan with respect to Franchises, licenses and permits covering areas
      serving at least 80% of the basic subscribers have not been obtained on or
      before November 12, 2009, and all other conditions precedent to the
      Effective Date shall have been satisfied before November 12, 2009 or
      waived by the Requisite Holders (other than those conditions that by their
      nature are to be satisfied on the Effective Date), then the Effective Date
      shall not have occurred on or before
      December 15,  2009;”

            

    

     

    MISCELLANEOUS

     

    3. Definitions.  Capitalized terms
used in this Amendment, but not otherwise defined herein, shall have the
meanings set forth in the Agreement.

     

    4. Full
Force and Effect.  Except as amended
by this Amendment, the Agreement continues in full force and effect, and the
Parties hereto hereby ratify and confirm the Agreement, as amended
hereby.  All reference to the “Agreement,” “herein,” “hereof,”
“hereunder” or words of similar import in the Agreement shall be deemed to
include the Agreement as amended by this Amendment.

     

    5. Execution
of this Amendment.  This Amendment
may be executed and delivered (by facsimile or otherwise) in any number of
counterparts, each of which, when executed and delivered, shall be deemed an
original, and all of which together shall constitute the same
agreement.  Except as expressly provided in this Amendment, each
individual executing this Amendment on behalf of a Party has been duly
authorized and empowered to execute and deliver this Amendment on behalf of said
Party.

     

    6. Governing
Law; Consent to Jurisdiction and Venue.  THIS AMENDMENT IS
TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT
GIVING EFFECT TO THE CHOICE OF LAWS PRINCIPLES THEREOF.  By its
execution and delivery of this Amendment, each of the Parties hereto hereby
irrevocably and unconditionally agrees for itself that any legal action, suit or
proceeding with respect to any matter under or arising out of or in connection
with this Amendment or for recognition or enforcement of any judgment rendered
in any such action, suit or proceeding, shall be brought exclusively in the
Bankruptcy Court in the Southern District of New York.  By execution
and delivery of this Amendment, each of the Parties 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      hereto
hereby irrevocably and unconditionally agrees for itself that any legal action,
suit or proceeding with respect to any matter under or arising out of or in
connection with this Amendment or for recognition or enforcement of any judgment
rendered in any such action, suit or proceeding, shall be brought exclusively in
the Bankruptcy Court in the Southern District of New York.  By
execution and delivery of this Amendment, each of the Parties hereto hereby
irrevocably accepts and submits itself to the exclusive jurisdiction of such
court, generally and unconditionally, with respect to any such action, suit or
proceeding.

    

    
       

    

    7. Captions:
Construction.  The headings of
Sections in this Amendment are provided for convenience only and shall not
affect its construction or interpretation.

     

    8. No Third
Party Beneficiaries.  This Amendment is
for the sole benefit of the Parties hereto and their permitted assigns and
nothing herein, express or implied, is intended to or shall confer upon any
other person any legal or equitable benefit, claim, cause of action, remedy or
right of any kind.

     

    9. Entire
Agreement.  The Agreement, as
amended by this Amendment, supersedes all prior agreements between the Parties
hereto with respect to its subject matter and constitutes a complete and
exclusive statement of the terms of the agreement between the Parties with
respect to their subject matter.

     

    10. Retroactive
Effect.  This Amendment
shall be deemed to have been executed prior to the Petition Date and the Parties
agree that under no circumstances shall the Agreement, as amended by this
Amendment or otherwise, be treated as a postpetition agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Parties have entered into this Amendment on the day and
year first written above.

     

    CHARTER
COMMUNICATIONS, INC.

     

    
      	
               
      

            	
              By:/s/Eloise
      Schmitz

            	 	 

    

    
      	
               
      

            	
              Name:

            	
              Eloise
      Schmitz

            

    

    
      	
               
      

            	
              Title:

            	
              Chief
      Financial Officer

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    

     

    
      	
               
      

            	
              /s/ Paul G.
      Allen

            	 

    

    
      	
               
      

            	
              PAUL
      G. ALLEN

            	 

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              CHARTER
      INVESTMENT, INC.

            

    

     

        By: /s/            
         
                                

        Name:

        Title:EXHIBIT 10.3

 

Summary of Executive Bonus
Plan

 

On
August 21, 2009, the Compensation Committee of our Board of Directors
adopted a new executive bonus plan for our eligible executive officers to be
effective for the quarterly periods ending September 30, 2009 and December 31,
2009 in replacement of a prior executive bonus plan, previously adopted on February 29,
2005, as amended on January 1, 2008. The new plan was adopted by the
Compensation Committee after consideration by the Committee of our compensation
philosophies, principles and processes as described in our Annual Report on Form 10-K/A
for the fiscal year ended December 31, 2008 filed with the Securities and
Exchange Commission on April 30, 2009. These philosophies, principles and
processes provide for periodic review by the Committee of the performance of
our executive officers, the components of their compensation and the
effectiveness of our compensation programs in rewarding the contributions of
our executive officers towards enhancing our specific business goals while
retaining and motivating high quality individuals. In adopting the new
executive bonus plan for the third and fourth quarters of 2009, the Committee
considered the changed economic environment under which the Company has been
operating and continues to operate together with recent competitive market data
and the executive compensation report provided to the Committee in December 2007
by its independent compensation advisors, Towers Perrin.

 

Under
the new executive bonus plan, each of our eligible executive officers are
eligible to receive the following for the quarterly periods ending September 30,
2009 and December 31, 2009: (i) a quarterly bonus for each of Frank
F. Khulusi, President and Chief Executive Officer, Brandon H. LaVerne, Chief
Financial Officer, Kristin M. Rogers, Executive Vice President — Sales and
Marketing and Daniel J. DeVries, Executive Vice President — Consumer, computed
at the percentages set forth in the table below of the company’s
consolidated adjusted pre-tax income for such quarter, subject to such
consolidated adjusted pre-tax income being equal to or greater than two thirds
of a pre-determined targeted adjusted pre-tax income for such quarter and (ii) an
additional quarterly bonus of for the foregoing executive
officers in the amounts set forth in the table below if the company’s quarterly
adjusted income achieved for each of the bonus periods discussed above is
greater than a pre-determined targeted adjusted pre-tax income for such
quarter. For purposes of the executive bonus plan, “adjusted pre-tax income” is
defined as the Company’s consolidated pre-tax income for the applicable
quarter, less certain costs that are excluded from the calculation on a
quarterly basis by the Compensation Committee in its sole discretion.  In addition to participation in the executive
bonus plan, as described above, all of our executive officers are eligible for
discretionary bonuses as determined from time to time by our Compensation Committee.

 

The
maximum participation percentage and additional quarterly
bonus for our executive officers currently eligible to participate in the
plan is as follows:

 

	
  PLAN PARTICIPANT

  	
   

  	
  Maximum

  Percentage

  Participation In

  Quarterly Bonus

  	
   

  	
  Maximum

  Additional 

  Quarterly Bonus

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Frank
  F. Khulusi

  President and Chief Executive Officer

  	
   

  	
  3.8

  	
  %

  	
  $

  	
  95,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Brandon
  H. LaVerne

  Chief Financial Officer

  	
   

  	
  1.2

  	
  %

  	
  $

  	
  30,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kristin
  M. Rogers

  Executive Vice President—Sales and Marketing

  	
   

  	
  1.2

  	
  %

  	
  $

  	
  30,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Daniel
  J. DeVries

  Executive Vice President—Consumer

  	
   

  	
  1.2

  	
  %

  	
  $

  	
  30,000

  	
   

  

 

The
Compensation Committee may amend the foregoing percentages and amounts from
time to time in its sole discretion. In addition, the Compensation Committee
may in its sole discretion reduce the amounts that would otherwise be payable
to any participant for any period (including a complete elimination of all
amounts identified under the table above for the period). Any such reduction
may be based on quantitative or qualitative factors determined in the
discretion of the Compensation Committee.

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