Document:

Exhibit 10.2

 

*** Text Omitted and
Filed Separately

Pursuant to a
Confidential Treatment Request

under 17 C.F.R. §§
200.80(b)(4) and 240.24b-2(b)(1)

 

INTEL
CONFIDENTIAL

 

Amended

 

INTELLECTUAL PROPERTY LICENSE
AGREEMENT

 

BETWEEN

 

“CYMER” CORPORATION AND INTEL
CORPORATION

 

The
Intellectual Property License Agreement of January 28, 2004 is hereby Amended (“Amended
License Agreement”) as of June 27, 2006 (“Effective Date”) by and between
Cymer, Inc. a Nevada corporation, having an office at 17075 Thornmint Ct., San
Diego, California, 92127, USA, (“Cymer”) and Intel Corporation, a Delaware
corporation, having an office at 2200 Mission College Blvd., Santa Clara,
California 95052, U.S.A. (“Intel”).

 

WHEREAS, Cymer intends to commercialize EUV systems for an anticipated business
opportunity,

 

WHEREAS,
the January 2004 Agreement is subject to termination if Cymer does not
commercialize a Cymer Licensed Product by

[ . . . * * * . . . ], and

 

WHEREAS,
Cymer intends to use certain of the Intel Patents, Exhibit A of this Amended
License Agreement beyond [ . . . * * * . . . ],

 

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROMISES CONTAINED HEREIN,
THE PARTIES AGREE TO AMEND THE JANUARY 2004 AGREEMENT AS FOLLOWS:

 

1.              DEFINITIONS

 

1.1.                              “EUV” means extreme ultraviolet lithography.

 

1.2.                              “EUV Source System” means a system including
all apparatus to deliver debris-free, in-band, collected photons based on a [ .
.. . * * * . . . ] or a [ . . . * * * . . . ] to the intermediate focus of the EUV lithography system for
generating a supply of such collected photons at a central wavelength in the
range of [ . . . * * * . . . ].

 

1.3.                              “Intermediate Focus” means the illuminator
entrance of the EUV Lithography System, such illuminator entrance being
downstream of the collection optics, debris mitigation system and optional
spectral purity filter.

 

1.4.                              “EUV Lithography System” means an integrated
exposure tool containing an EUV Source System and capable of creating
lithographic patterns in semiconductor wafers.

 

1.5.                              “Cymer Licensed Products” shall mean a
Complete EUV Source System that is sold by Cymer as Cymer’s own product
(subject to the limitations set forth in Section 2.6) and not on behalf of
another.

 

1.6.                              “Complete EUV Source System” means an EUV
Source System and supporting EUV metrology devices which are designed, developed
and marketed by or for Cymer for integration into an EUV Lithography System and
which are assembled substantially into the form ordinarily sold to EUV
Lithography System producers under Cymer’s name.

 

1.7.                              “Integrated Circuit” shall mean an integrated
unit comprising one or more active and/or passive circuit elements associated
on one or more substrates, such unit forming, or contributing to the formation
of, a circuit for performing electrical functions (including, if provided
therewith, housing

 

* * * Confidential Treatment Requested

 

 

and/or supporting means). The
definition of “Integrated Circuit” shall also include any and all firmware,
microcode or drivers, if needed to cause such circuit to perform substantially
all of its intended hardware functionality, whether or not such firmware,
microcode or drivers are shipped with such integrated unit or installed at a
later time.

 

1.8.                              “Intel’s Products” shall mean any Integrated
Circuits.

 

1.9.                              “Patents” shall mean all classes or types of
patents other than design patents (including, without limitation, originals,
divisions, continuations, continuations-in-part, extensions or reissues), and
applications for these classes or types of patent rights in all countries of
the world that are owned or controlled by the applicable party or any of its
Subsidiaries or to which such entities have the right to grant licenses, and to
the extent that the applicable party or its Subsidiaries has the right to grant
licenses within and of the scope set forth herein and without the requirement
to pay consideration to any third party (other than employees of the applicable
party or its Subsidiaries) for the grant of a license under this Agreement.

 

1.10.                        “Patent Rights” shall mean all rights which
may be exercised to enforce Patents.

 

1.11.                        Re-write paragraph 1.11 as follows “Intel
Patents” shall mean only those Patents and patent applications that are listed
in Exhibit A of this Amended License Agreement.

 

1.12.                        “Trade Secrets” shall mean know-how,
inventions, discoveries, concepts, ideas, methods, processes, designs,
formulae, technical data, drawings, specifications, data bases, models,
prototypes, specimens,  notes, documents,
schematics, layout, and other data and materials and any other confidential
information , including that have been obtained and will be by Intel from its
EUV related agreements with various universities, that will be transmitted to
Cymer by Intel during the Term of this Agreement as part of this Agreement.

 

1.13.                        “Subsidiary” shall mean any corporation,
partnership, joint venture, limited liability corporation or other entity, now
or hereafter, in which a party owns or controls (either directly or indirectly)
the following:

 

(a)                                  an interest sufficient to receive at least
thirty percent (30%) of the profits and/or losses of such entity (in the event
that such entity distributes its profits or losses); and

 

(b)                                 either of the following:

 

(1)                                  if such entity has voting shares or other
voting securities, more than fifty percent (50%) of the outstanding shares or
securities entitled to vote for the election of directors or similar managing
authority; or

 

(2)                                  if such entity does not have voting shares or
other voting securities, more than fifty percent (50%) of the ownership
interest that represents the right to make decisions for such entity.

 

An
entity shall be deemed to be a Subsidiary under this Agreement only so long as:

 

(c)                                  the party owning or controlling the interest
required under subsection (a) above has not contractually or otherwise agreed
to forfeit any part of its share of the profits or losses distributed by the
entity; and

 

(d)                                 the party owning or controlling the shares,
securities, or other ownership interest required under subsections (b)(1) or
(b)(2) above has not contractually or otherwise surrendered, limited, or in any
other way constrained its authority to elect the managing authority or make
decisions for the entity; and

 

2

 

(e)                                  all requisite conditions of being a Subsidiary
are met.

 

1.14.                        “Assert” means to bring an action of any
nature before any legal, judicial, arbitration, administrative, executive or
other type of body or tribunal that has or claims to have authority to adjudicate
such action in whole or in part. Examples of such body or tribunal include,
without limitation, United States State and Federal Courts, the United States
International Trade Commission and any foreign counterparts of any of the
foregoing.

 

1.15.                        “Cymer’s Products” means all products
manufactured by or for Cymer other than (i) Chipsets; and (ii) microprocessors
that are hardware or software compatible with one or more Intel
microprocessors.

 

2.              GRANT OF RIGHTS

 

2.1                                 Re-write paragraph 2.1 as follows, Subject to
the terms of this Agreement, Intel grants to Cymer a [ . . . * * * . . . ]
license,

[ . . . * * * . . . ], under the Intel Patents, and for the lives of such
Patents, subject to Section 4.3(a)  to

 

(a)                                  make, use, sell, offer to sell, import and
otherwise dispose of Cymer Licensed Product, and

 

(b)                                 make, have made, use and/or import any
components solely for integrating into Cymer Licensed Product.

 

2.2         The licenses granted to Cymer to make, use,
sell, offer for sale, import or otherwise dispose of Cymer Licensed Product
includes the right to assemble and combine Integrated Circuits into Cymer
Licensed Product, but does not include any license to make, have made, use,
sell, offer to sell, import or otherwise dispose of Integrated Circuits
themselves, including those Integrated Circuits that are included in Cymer
Licensed Product except as replacement parts for Cymer Licensed Product.

 

2.3         Subject to the terms of this Agreement, Intel
grants to Cymer a [ . . . * * * . . . ] license, [ . .
.. * * * . . . ], under the Trade Secrets, to use internally and to have Cymer
third party contractors make components (subject to requirements of
confidentiality consistent with this Agreement), to make use, sell offer for
sale, import or otherwise dispose of Cymer Licensed Products.

 

2.4         Re-write paragraph 2.4 as follows License Fee.

 

(a)                                  In consideration for the license grants from
Intel pursuant to this Amended License Agreement, Cymer shall pay to Intel a
license fee, of [ . . . * * * . . . ] ($[ . . . * * * . . . ]) within [ . . . *
* * . . . ] days of the Effective Date of this Amendment. The license fee
payment will be made via check payable to Intel Corporation, Post Contract
Management, JF3-149, 2111 N.E. 25th Avenue, Hillsboro, OR 97124; or
wire transfer to the following account: 
CITIBANK, New York, New York, ABA# 021000089, General Account #
38385954.

 

2.5  Clarification Regarding Patent Laundering.
The parties understand and acknowledge that the licenses granted hereunder are
intended to cover only Cymer Licensed Product, and are not intended to cover
manufacturing activities that Cymer may undertake on behalf of third parties
whose intention is to re-sell the Cymer Licensed Product as a standalone
component and not otherwise use the Cymer Licensed Product or integrate in
another tool (patent laundering activities).

 

* * * Confidential Treatment Requested

 

3

 

2.6         Licenses and Subsidiaries.

 

(a)                                  Intention for Subsidiaries to be Bound.

 

(1)                                  Except as expressly set forth herein, the
parties intend that this Agreement shall extend to all of each party’s
Subsidiaries. The parties agree that to the extent they are not already bound,
each party shall use reasonable and diligent efforts to ensure that all such
Subsidiaries are bound by the terms of this Agreement.

 

(b)                                 Either party to this Agreement shall have the
right to request a written confirmation or denial from the other party to this
Agreement that a specific Subsidiary is (or is not) bound by this Agreement. A
party receiving such a request shall provide such written confirmation
(including a full explanation in support of such confirmation or denial) within
30 days after the receipt of the request.

 

(c)                                  The parties represent, warrant and covenant
that they shall not participate in the creation or acquisition of Subsidiaries
where a primary purpose of such creation or acquisition is to extend the
benefits of this Agreement to a third party and agree that any such attempt to
extend such benefits shall not extend this license to such third party.

 

(d)                                 If either party or one
of their Subsidiaries (“First Party”) owns or has the right to enforce or
control the enforcement of any rights in any Patent but such First Party does
not have the right to license those rights to the other party to this Agreement
(the “Second Party”) hereunder (“Restricted Patent Rights”), then, if and to
the extent that such Restricted Patent Rights would have been licensed to the
Second Party if the First Party had the right to license such patents:

 

(1)                                  the First Party grants
to the Licensed Products of the Second Party an immunity from suit for
infringement of such Restricted Patent Rights of a scope identical to the
rights that would have been granted hereunder if the First Party had the right
to license such Restricted Patent Rights;

 

(2)                                  the First Party shall
not give its assent if that assent is required to allow a third party entity to
assert the Restricted Patent Rights against the Licensed Products of the Second
Party; provided that (i) this restriction shall be dropped if the Second Party
first initiates litigation alleging infringement of Patent Rights against the
holder of the Restricted Patent Rights, and (ii) in any event the First Party
shall be free to fulfill its preexisting contractual obligations to provide
assistance and support as may be required under the relevant contractual
agreement; and

 

(3)                                  the First Party promises
to off-set of or repay over to the Second Party any monetary awards for damages
and/or royalties actually to be paid or paid by the Second Party and owing to
said First Party as a result of litigation by the holder of the Restricted
Patent Rights against the Licensed Products of the Second Party to the extent
attributable to such Restricted Patent Rights.

 

(e)                                  The extension of license rights to a
Subsidiary shall apply only during the time period when such Subsidiary meets
all requirements of a Subsidiary. However, if a Subsidiary of a party that
holds any Patents that are licensed to the other party hereunder ceases to meet
all requirements of being a Subsidiary, the licenses granted by such Subsidiary
to the other party under this Agreement shall continue for the life of such
Patents even after such entity ceases to meet all the requirements of being a
Subsidiary.

 

4

 

2.7         No Other Rights. No other rights are granted hereunder, by
implication, estoppel, statute or otherwise, except as expressly provided
herein. Specifically, (i) except as expressly provided in Section 2, nothing in
the licenses granted hereunder or otherwise contained in this Agreement shall
expressly or by implication, estoppel or otherwise give either party any right
to license the other party’s Patents to others, and (ii) no license or immunity
is granted by either party hereto directly or by implication, estoppel or
otherwise to any third parties acquiring items from either party for the
combination of Licensed Products with other items or for the use of such
combination.

 

3. COVENANT NOT TO SUE

 

3.1 Covenant Not to Sue. Cymer agrees that Cymer shall not Assert
any Patent Right against Intel, its Subsidiaries or affiliates, or their customers
(direct or indirect), distributors (direct or indirect), agents (direct or indirect)
and contractors (direct or indirect), wherein contractors does not include
equipment suppliers, for the manufacture, use, import, offer for sale or sale
of any of Intel’s Products or any process or any method or any component
employed in the manufacture, testing, distribution or use thereof for so long
as Intel does not Assert any Patent Right against Cymer, its subsidiaries or
affiliates, or their customers (direct or indirect), distributors (direct or
indirect), agents (direct or indirect) and contractors (direct or indirect) for
the manufacture, use, import, offer for sale or sale of Cymer’s Products or any
process or method employed in the manufacture, testing, distribution or use
thereof. For clarity, an injunction against an equipment supplier is not
precluded by any of the above.

 

4. EFFECTIVE DATE, TERM AND TERMINATION FOR CAUSE

 

4.1 Re-write paragraph 4.1 as follows Effective Date. This
Amended License Agreement is effective as of the last date of signature on this
Amended License Agreement.

 

4.2 Re-write paragraph 4.2 as follows Term. This Amended License
Agreement and the rights and licenses granted hereunder shall become effective
on the Effective Date.

 

4.3 Termination for Cause.

 

(a)                                  A party may terminate this Agreement including
all rights and licenses hereunder to the other Party upon written notice of
termination to the other party if the other party hereto commits a material
breach of this Agreement and does not correct such breach within sixty (60)
days after receiving written notice complaining thereof.

 

5.DISCLAIMER

 

5.1 Nothing contained in this Agreement shall be construed as:

 

(a)                                  a warranty or representation by Intel as to
the validity, enforceability or scope of any class or type of Patent Right; or

 

(b)                                 a warranty or representation that any
manufacture, sale, lease, use or other disposition of Licensed Products
hereunder will be free from infringement of any patent rights of any third
party; or

 

(c)                                  an agreement to bring or prosecute actions or
suits against third parties for infringement or conferring any right to bring
or prosecute actions or suits against third parties for infringement; or

 

5

 

(d)                                 conferring any right to use in advertising,
publicity, or otherwise, any trademark, trade name or names, or any contraction,
abbreviation or simulation thereof, of either party; or

 

(e)                                  conferring by implication, estoppel or
otherwise, upon Cymer licensed hereunder, any license or other right under any
Patent Rights, copyright, maskwork, trade secret, trademark other intellectual
property right except the licenses and rights expressly granted hereunder; or

 

(f)                                    an obligation to furnish any technical
information or know-how outside of what is transmitted pursuant of this
Agreement.

 

5.2  NO
IMPLIED WARRANTIES. INTEL HEREBY DISCLAIMS ANY IMPLIED WARRANTIES
WITH RESPECT TO THE PATENTS LICENSED HEREUNDER, INCLUDING WITHOUT LIMITATION,
THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

6. MISCELLANEOUS PROVISIONS

 

6.1 Authority. Intel represents and warrants that it has the
right to grant to Cymer the licenses granted hereunder.

 

6.2 No Assignment. This Agreement is personal to the parties, and
the Agreement or any right or obligation hereunder is not assignable, whether
in conjunction with a change in ownership, merger, acquisition, the sale or
transfer of all, or substantially all or any part of a party’s business or
assets or otherwise, either voluntarily, by operation of law, or otherwise,
without the prior written consent of the other party, which consent may be withheld
at the sole discretion of such other party. Any such purported assignment or
transfer shall be deemed a breach of this Agreement and shall be null and void.
This Agreement shall be binding upon and inure to the benefit of the parties
and their permitted successors and assigns.

 

6.3  Notice. All notices
required or permitted to be given hereunder shall be in writing and shall be
delivered by hand, or if dispatched by prepaid air courier or by registered or
certified airmail, postage prepaid, addressed as follows:

 

	
  If to Cymer:

  

  Law Department

  Cymer, Inc.

  17075 Thornmint Ct.

  San Diego, CA 92127

  	
  If to Intel:

  

  General Counsel

  Intel Corporation

  2200 Mission College Blvd.

  Santa Clara, CA 95052

  United States of America

  

 

Such notices shall be deemed to have been served when received by
addressee or, if delivery is not accomplished by reason of some fault of the
addressee, when tendered for delivery. Either party may give written notice of
a change of address and, after notice of such change has been received, any
notice or request shall thereafter be given to such party as above provided at
such changed address.

 

6.4 No Rule of Strict Construction. Regardless of which party may
have drafted this Agreement, no rule of strict construction shall be applied
against either party. If any provision of this Agreement is determined by a
court to be unenforceable, the parties shall deem the provision to be modified
to the extent necessary to allow it to be enforced to the extent permitted by
law, or if it cannot be modified, the provision will be severed and deleted
from this Agreement, and the remainder of the Agreement will continue in
effect.

 

6

 

6.5  Taxes. Each party
shall be responsible for the payment of its own tax liability arising from this
transaction.

 

6.6  Entire Agreement. This
Agreement embodies the entire understanding of the parties with respect to the
subject matter hereof, and merges all prior discussions between them, and
neither of the parties shall be bound by any conditions, definitions,
warranties, understandings, or representations with respect to the subject
matter hereof other than as expressly provided herein. No oral explanation or
oral information by either party hereto shall alter the meaning or
interpretation of this Agreement.

 

6.7 Modification; Waiver. No modification or amendment to this
Agreement, nor any waiver of any rights, will be effective unless assented to
in writing by the party to be charged, and the waiver of any breach or default
will not constitute a waiver of any other right hereunder or any subsequent
breach or default.

 

6.8 Governing Law. This Agreement and matters connected with the
performance thereof shall be construed, interpreted, applied and governed in
all respects in accordance with the laws of the United States of America and
the State of California, without reference to conflict of laws principles.

 

6.9 Jurisdiction. Intel and Cymer agree that all disputes and
litigation regarding this Agreement and matters connected with its performance
shall be subject to the exclusive jurisdiction of the courts of the State of
California or of the Federal courts sitting therein.

 

6.10 Dispute Resolution. All disputes arising directly under the
express terms of this Agreement or the grounds for termination thereof shall be
resolved as follows:  First, the senior
management of both parties shall meet to attempt to resolve such disputes. If
the senior management cannot resolve the disputes, either party may make a
written demand for formal dispute resolution. Within thirty (30) days after
such written demand, the parties agree to meet for one day with an impartial
mediator and consider dispute resolution alternatives other than litigation. If
an alternative method of dispute resolution is not agreed upon within thirty
(30) days after the one-day mediation, either party may begin litigation
proceedings.

 

6.11  Confidentiality of Terms.
The parties hereto shall keep the terms of this Agreement confidential and
shall not now or hereafter divulge these terms to any third party except:

 

(a)                                  with the prior written consent of the other
party; or

 

(b)                                 to any governmental body having jurisdiction
to call therefor; or

 

(c)                                  subject to (d) below, as otherwise may be
required by law or legal process, including to legal and financial advisors in
their capacity of advising a party in such matters; or

 

(d)                                 during the course of litigation so long as the
disclosure of such terms and conditions are restricted in the same manner as is
the confidential information of other litigating parties and so long as (a) the
restrictions are embodied in a court-entered Protective Order and (b) the
disclosing party informs the other party in writing at least ten (10) days in
advance of the disclosure; or

 

(e)                                  in confidence to legal counsel, accountants,
banks and financing sources and their advisors solely in connection with
complying with financial transactions.

 

6.12  Trademarks. Neither
party may use the other party’s name or trademarks in advertisement, materials,
web sites, press releases, interviews, articles, brochures, banners,
letterhead, business cards, project reference or client listings, without the
other’s prior review and written consent.

 

6.13  Compliance with Laws.
Anything contained in this Agreement to the contrary notwithstanding, the
obligations of the parties hereto and of the Subsidiaries of the parties shall
be subject to all laws, present

 

7

 

and future, of any government having jurisdiction over the parties
hereto or the Subsidiaries of the parties, and to orders, regulations,
directions or requests of any such government.

 

6.14  Force Majeure. The
parties hereto shall be excused from any failure to perform any obligation
hereunder to the extent such failure is caused by war, acts of public enemies,
strikes or other labor disturbances, fires, floods, acts of God, or any causes
of like or different kind beyond the control of the parties.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amended License Agreement
to be duly executed on the date below written.

 

 

	
  INTEL CORPORATION

  	
  Cymer, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Chris Philippi

  	
   

  	
  By:

  	
  /s/ Robert P. Akins

  
	
   

  	
   

  
	
   

  	
   

  
	
  Chris Philippi

  	
   

  	
  Robert P. Akins

  
	
  Printed Name

  	
  Printed Name

  
	
   

  	
   

  
	
  EUV Business Manager

  	
   

  	
  CEO

  
	
  Title

  	
  Title

  
	
   

  	
   

  
	
  6/28/06

  	
   

  	
  6/27/06

  
	
  Date

  	
  Date

  

 

8

 

EXHIBIT A – LICENSED PATENTS

 

Patent Number

 

[ . . . * * * . . . ]

 

 

* * * Confidential Treatment Requested

 

9Exhibit 10.1

 

EXECUTION VERSION

 

 UNITED
STATES BANKRUPTCY COURT

FOR THE SOUTHERN DISTRICT OF NEW

YORK

 

	
   

  	
  :

  	
   

  
	
  In re

  	
  :

  	
  Chapter 11 Cases

  
	
   

  	
  :

  	
   

  
	
  Adelphia
  Communications Corporation, et al.,

  	
  :

  	
  Case No.
  02-41729 (REG) 

  
	
   

  	
  :

  	
   

  
	
   

  	
  Debtors.

  	
  :

  	
  Jointly
  Administered

  
	
   

  	
  :

  	
   

  
				

 

STIPULATION
AND CONSENT ORDER AMONG JPMORGAN CHASE BANK, N.A.;

ADELPHIA COMMUNICATIONS CORP. AND ITS AFFILIATED DEBTORS AND

DEBTORS IN POSSESSION; AND OFFICIAL COMMITTEE OF UNSECURED

CREDITORS PROVIDING TERMS AND CONDITIONS FOR WITHDRAWAL OF

APPEAL OF JPMORGAN CHASE BANK, N.A. FROM SALE ORDER

 

This Stipulation And Consent Order “Stipulation and Consent Order”
is entered into by and among JPMorgan Chase Bank, N.A., Administrative Agent
under the FrontierVision Credit Agreement (“JPMC”),(1) Adelphia Communications
Corporation and its affiliated debtors and debtors in possession in the
above-captioned chapter 11 cases (the “Debtors”), and the Official
Committee of Unsecured Creditors of Adelphia Communications Corporation (the “Creditors’
Committee”) (JPMC, the Debtors, and the Creditors’ Committee shall be
referred to collectively as the “Parties”).

 

WHEREAS, on or about June 28, 2006, the United
States Bankruptcy Court for the Southern District of New York (“Bankruptcy
Court”) entered the Order Authorizing (I) Sale Of Substantially All Assets
Of Adelphia Communications Corporation And Its Affiliated Debtors To Time
Warner NY Cable LLC (“TW NY”) And To Comcast Corporation

 

 

(1)                                  Second Amended And Restated Credit Agreement
(the "FrontierVision Credit Agreement"), dated as of December
19, 1997, among, inter  alia, the lenders from time to time party
thereto (the "FrontierVision Lenders"), and FrontierVision
Operating Partners, L.P., as Borrower. 
The obligors, pledgors and guarantors thereunder and under related
collateral documents shall be referred to collectively as the "FrontierVision
Debtors."

 

 

(“Comcast”),
Free And Clear Of Liens, Claims, Encumbrances, And Interests And Exempt From
Applicable Transfer Taxes; (II) Assumption And/Or Assignment Of Certain Agreements,
Contracts And Leases; And (III) The Granting Of Related Relief (Docket No.
11500 in the above captioned cases) (the “Sale Order”); and

 

WHEREAS, on June 29, 2006, the Bankruptcy
Court entered an Order confirming the Third Modified Fourth Amended Joint Plan
Of Reorganization Under Chapter 11 Of Bankruptcy Code For Century-TCI Debtors
And Parnassos Debtors As Confirmed (the “JV Plan”);(2) and

 

WHEREAS, on June 30, 2006, JPMC filed its
Notice Of Appeal from the Sale Order (the “JPMC Appeal”); and

 

WHEREAS, effective July 21, 2006, the Debtors entered into a Second Amended
and Restated Agreement Concerning Terms and Conditions of a Modified Chapter 11
Plan (the “Plan Agreement”) with certain representatives of the ad hoc committee of holders of ACC Senior
Notes, the ad hoc committee of
holders of ACC Senior Notes and Arahova, the Ad
Hoc Committee of Arahova Noteholders, the Ad Hoc Committee of holders of FrontierVision Opco Notes
Claims and FrontierVision Holdco Notes Claims, W.R. Huff Asset Management Co.,
L.L.C., the ad hoc committee of
ACC Trade Claimants, the ad hoc
committee of Subsidiary Trade Claimants, and the Creditors’ Committee; and

 

WHEREAS, the Plan
Agreement provides that a modified chapter 11 plan (the “Modified Plan,”
which definition includes any amended, superseded or subsequently filed plan)
will be filed and prosecuted, which will, among other things, provide that (i)
all Bank claims (both Agent and Non-Agent) would be disputed claims under the
Modified Plan, and would be subject to disallowance in whole or in part, (ii)
unless and until otherwise allowed, no Bank

 

 

(2)                                  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to such
terms in the JV Plan.

 

2

 

would receive any distributions under the Modified Plan, and the liens
and/or security interests securing such claims would be transferred to and
attach to the proceeds of the Company’s sale transactions with Comcast and
TW NY, in an amount sufficient to pay in full the maximum amount of the
disputed Bank claims as determined by the Bankruptcy Court, and (iii)
notwithstanding the foregoing, the Plan Agreement proposes that under the
Modified Plan each Bank would have the right to elect to receive payment in full
in cash on the Effective Date of all outstanding principal and all accrued
interest at the non-default interest rate in effect at the commencement date of
these Chapter 11 cases, subject to disgorgement upon the entry of a final
order directing the return of some or all of such distribution, and any Bank
making such an election will be deemed to have waived any objection to
confirmation of the Modified Plan and any claim or entitlement to additional
interest, post-Effective Date fees and expenses, and/or indemnification, and
will be deemed to have agreed to comply with any disgorgement order directed to
it; and

 

WHEREAS, the JPMC Appeal is pending before the
United States District Court for the Southern District of New York (the “District
Court”); and

 

WHEREAS, the Parties negotiated the terms and
conditions of the withdrawal of the JPMC Appeal, which terms and conditions are
set forth in this Stipulation and Consent Order.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements set forth in this Stipulation and Consent Order, and
with the intent to be legally bound, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, it is agreed between
the Parties as follows:

 

3

 

1.                                       Modified
Plan. In accordance with the Plan Agreement, the Debtors and the Creditors’
Committee shall file a Modified Plan consistent with the Plan Agreement to be
confirmed on an expeditious basis; provided, however, the
Modified Plan shall include the following with respect to the FrontierVision Lenders and the FrontierVision
Credit Agreement:

 

(a)                                  terms substantially
similar to those set forth in the JV Plan solely with respect to financial
assurance requirements in connection distributions to the FrontierVision
Lenders;

 

(b)                                 in the event the
FrontierVision Lenders accept the Modified Plan, the FrontierVision Lenders
shall be paid in full, in cash on the effective date of the Modified Plan with
respect to any principal and interest owing under the FrontierVision Credit
Agreement (excluding Grid Interest);

 

(c)                                  in the event the
FrontierVision Lenders accept the Modified Plan, the Modified Plan shall
provide the FrontierVision Lenders on the effective date with a Litigation
Indemnification Fund, which shall be funded one-time with $4 million and not
replenished (the “Litigation Indemnification Fund Amount”), $1 million
of which shall be available for the payment, on a current basis up to that
amount, of the FrontierVision Bank Lender Post-Effective Date Fee Claims, and
$3 million of which shall not be released unless and until the FrontierVision
Bank Lender Claims are Allowed by a Final Order or unless otherwise agreed to
in writing by the Parties;

 

(d)                                 other than the
Litigation Indemnification Fund Amount (and subject to the Most Favored Nation
clause described below), the Modified Plan will

 

4

 

provide that by voting to accept the Modified
Plan, JPMC and each FrontierVision Lender will be deemed to have waived as of
the effective date of any plan incorporating the terms and conditions set forth
in this Stipulation And Consent Order that the FrontierVision Lenders have
voted to accept, any right to the affirmative assertion of any reimbursement or
indemnification claims (i.e., such claims may only be asserted defensively),
including with respect to any post effective date fees and expenses; and

 

(e)                                  In the event the
FrontierVision Lenders do not vote to accept the Modified Plan, then the parties
reserve any and all rights, claims and defenses with respect to any chapter 11
plan, including, without limitation, with respect to the Holdback Motion and
the Litigation Indemnification Fund.

 

2.                                       Most
Favored Nations Clause. If any chapter 11 plan for any Affiliated Debtor
(other than those for which the JV Plan was confirmed):

 

(a) provides for the current payment of more
than 25% of the total funds in the respective Litigation Indemnification Funds
established for the Bank Lender Post-Effective Date Fee Claims with respect to
the Century Credit Agreement, the Olympus Credit Agreement, or the UCA Credit
Agreement,(3) then Bank Lender Post-Effective Date Fee Claims under the
Modified Plan for the FrontierVision Lenders shall be paid currently to the same
extent and on the same basis; or

 

(b) provides for a Litigation Indemnification
Fund Amount that exceeds  $29 million for
the Bank Lender Post-Effective Date Fee Claims under the Century, Olympus, and
UCA Credit Agreements, respectively (that is, exceeds $29 million for the three
credit agreements in the aggregate), then the Litigation Indemnification Fund
Amount under the Modified Plan for the FrontierVision Lenders shall constitute
the greater of (x) $4 million and (y) the Grossed-Up Fund (less $4 million if
the Litigation Indemnification

 

 

(3)                                  As
such terms are defined in the Debtors' Modified Fourth Amended Joint Plan Of
Reorganization Under Chapter 11 Of Bankruptcy Code, dated April 28, 2006.

 

5

 

Fund Amount under the Modified Plan for the
FrontierVision Lenders already has been funded with $4 million).(4)

 

3.                                       Grid
Interest. On the effective date of any plan incorporating the terms and
conditions set forth in this Stipulation and Consent Order that the
FrontierVision Lenders have voted to accept, JPMC shall withdraw its appeal on
behalf of the FrontierVision Lenders from the Bankruptcy Court’s decision
(Docket No. 10853) denying the FrontierVision Lenders’ claim for Grid Interest.

 

4.                                       Post-Closing
Interest. From the period between the repayment of the DIP Facility
pursuant to the Sale Transaction Closing until the effective date of the
Modified  Plan, the FrontierVision
Lenders shall continue to be paid interest on a current-pay basis as set forth
in, and in accordance with, the DIP Order.

 

5.                                       Post-Closing
Liens. The FrontierVision Lenders’ shall receive liens on the proceeds from
their collateral upon the Sale Transaction Closing, and such proceeds shall be
distributed pursuant to the Modified Plan or further order of the Bankruptcy
Court.

 

6.                                       Committee
Estimation Motion. The Motion Of Official Committee Of Unsecured Creditors
For Order, Under 11 U.S.C. §§ 105 And 502(c), Estimating Certain Claims Of Bank
Lenders In Connection With Debtors’ Modified Fourth Amended Joint Plan Of
Reorganization shall be adjourned with respect to JPMC in its capacity as agent
for the

 

 

(4)                                  The
"Grossed-Up Fund" shall be calculated as follows.  Assuming that 12% is the portion of the
principal amount of the debt under the FrontierVision, Century, Olympus and UCA
Credit Agreements ($617 million, $2.480 billion, $1.265 billion and $831
million, respectively, as set forth in the Supplement To Debtors' Fourth
Amended Disclosure Statement Pursuant To Section 1125 Of Bankruptcy Code, dated
April 28, 2006) that is attributable to the FrontierVision Credit
Agreement:  (i) the
sum of all Litigation Indemnification Fund Amounts (if any)  under all chapter 11 plans for the Affiliated
Debtors, excluding the FrontierVision Debtors and the JV Debtors; (ii) divided by .88 (i.e., the portion of
the outstanding principal amounts owing as of the Petition Date under the four
pre-petition credit agreements that is attributable to the Century, Olympus and
UCA Credit Agreements (that is, excluding the FrontierVision Credit
Agreement)); and (iii) multiplied by
12%. 

 

6

 

FrontierVision
Lenders and the FrontierVision Lenders themselves, in their capacity as such,
until the effective Date of the Modified Plan, at which point the motion shall
be deemed to be withdrawn with prejudice solely with respect to JPMC in its
capacity as agent for the FrontierVision Lenders and the FrontierVision Lenders
themselves, in their capacity as such.

 

7.                                       The
Holdback Motion. The Holdback Motion shall be adjourned with respect to JPMC
in its capacity as agent for the FrontierVision Lenders and the FrontierVision
Lenders themselves, solely in their capacity as such,  pending confirmation of the Modified Plan. In
the event that the FrontierVision Lenders vote to accept the Modified Plan and
the Modified Plan is confirmed and goes effective, the Holdback Motion with
respect to JPMC in its capacity as agent for the FrontierVision Lenders and for
the FrontierVision Lenders themselves, solely in their capacity as such, shall
be withdrawn with prejudice.

 

8.                                       Support
of the Modified Plan. JPMC shall support confirmation of the Modified Plan,
provided the Modified Plan incorporates the terms and conditions set forth in
this Stipulation And Consent Order and has been accepted by the FrontierVision
Lenders.

 

9.                                       JPMC
Appeal From Sale Order. Upon the execution of this Stipulation And Consent
Order by the parties hereto, the JPMC shall withdraw the JPMC Appeal with
prejudice.

 

10.                                 Authority
and Representations. Each Party hereto represents and warrants to the other
that, subject to approval of this Stipulation and Consent order by the
Bankruptcy Court, and, in the case of the Debtors, necessary approvals by their
boards of this Stipulation And Consent Order: 
(i) its respective signatories to this Stipulation and Consent Order are
authorized to execute this Stipulation and Consent Order; (ii) it has full
power and authority to enter into this Stipulation and Consent Order; and (iii)
this Stipulation and Consent Order is duly

 

7

 

executed and delivered by it, and constitutes a valid agreement binding
on it in accordance with its terms. Each Party additionally represents and
agrees that the terms and provisions of this Stipulation and Consent Order
shall not be construed against the Party that drafted the Stipulation and
Consent Order.

 

11.                                 Binding
Nature. This Stipulation and Consent Order (i) shall inure to the benefit
of and be enforceable by the Parties and their respective successors and
permitted assigns and (ii) shall be binding upon and enforceable against the
Parties and their respective successors and assigns upon the entry of this
Stipulation and Consent Order on the docket as “so ordered” by the Bankruptcy
Court (the “Approval Date”).

 

12.                                 Court
Approval. This Stipulation and Consent Order is expressly subject to and
contingent upon its approval by the Bankruptcy Court; provided, however,
approval of this Stipulation and Consent Order is not intended and shall not be
construed to be endorsement or approval of the Plan Agreement or the Modified
Plan or a grant of authority to the Debtors or the Creditors Committee to File
and or prosecute the Modified Plan. If this Stipulation and Consent Order, or
any portion hereof, is not approved by the Bankruptcy Court, or if it is
overturned or modified on appeal, this Stipulation and Consent Order shall be
of no further force and effect, and, in such event, (a) neither this
Stipulation and Consent Order nor any negotiations and writings in connection
with this Stipulation and Consent Order shall in any way be construed as or
deemed to be evidence of or an admission on behalf of any Party hereto
regarding any claim or right that such Party may have against any other Party
hereto, and (b) and the Parties shall otherwise be restored to the position in
effect prior to the date of this Stipulation and Consent Order, except for the
parties’ agreement regarding the JPMC Appeal in paragraph 9 above (which shall
survive notwithstanding the foregoing).

 

8

 

13.                                 Non-Severability.
The provisions of this Stipulation and Consent Order are mutually
interdependent, indivisible and non-severable.

 

14.                                 Entire
Agreement. This Stipulation and Consent Order constitutes the entire
agreement among the Parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and understandings, written and oral,
between or among the Parties with respect to the subject matter hereof. This
Stipulation and Consent Order may not be modified or amended except by a
writing signed by all of the Parties. All representations, warranties,
promises, inducements or statements of intention made by the Parties hereto are
embodied in this Stipulation and Consent Order, and no Party hereto shall be
bound by, or liable for, any alleged representation, warranty, inducement or
statement of intention that is not expressly embodied herein.

 

15.                                 Execution.
This Stipulation and Consent Order may be executed in one or more counterparts
and by facsimile, all of which shall be considered one and the same agreement,
and shall become effective on the first business day after which (i) one or
more such counterparts have been signed by each of the Parties and delivered to
all Parties; and (ii) the Approval Date has occurred.

 

16.                                 Governing
Law. This Stipulation and Consent Order shall be governed by, and construed
in accordance with, the Bankruptcy Code and the laws of the State of New York,
without regard to any principles of choice of law thereof which would require
the application of the law of any other jurisdiction.

 

17.                                 Retention
of Jurisdiction. The Bankruptcy Court shall retain exclusive jurisdiction
to interpret, implement and enforce the provisions of this Stipulation and
Consent

 

9

 

Order, and the Parties hereby consent to exclusive jurisdiction of the
Bankruptcy Court with respect thereto.

 

 

	
  Dated:

  	
  New York,
  New York

  
	
   

  	
  July 27,
  2006

  
	
   

  
	
   

  	
  WILLKIE FARR & GALLAGHER LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Marc Abrams

  	
   

  
	
   

  	
   

  	
  Marc Abrams (MA-0735)

  
	
   

  	
   

  	
  Brian E. O’Connor (BOC-7627)

  
	
   

  	
   

  	
  Terence K. McLaughlin (TM-0287)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  787 Seventh Avenue

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  (212) 728-8000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for the Debtors

  
						

 

10

 

	
   Dated:

  	
  New York, New York

  
	
   

  	
  July 27, 2006

  
	
   

  
	
   

  	
  MILBANK, TWEED, HADLEY &

  
	
   

  	
   

  	
  MCCLOY LLP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James C. Tecce

  	
   

  
	
   

  	
   

  	
  Dennis F. Dunne (DD-7543)

  
	
   

  	
   

  	
  James C. Tecce (JT-5910)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1 Chase Manhattan Plaza

  
	
   

  	
   

  	
  New York, New York 10005-1413

  
	
   

  	
   

  	
  (212) 530-5000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorneys for JPMorgan Chase

  Bank, as Administrative Agent for

  the FrontierVision Lenders

  
							

 

11

 

	
  Dated:

  	
  New York, New York

  
	
   

  	
  July 27, 2006

  
	
   

  
	
   

  	
  KASOWITZ, BENSON, TORRES &

  FRIEDMAN LLP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ David M. Friedman

  	
   

  
	
   

  	
   

  	
  David M. Friedman

  
	
   

  	
   

  	
  Adam L. Shiff (AS-7571)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1633 Broadway

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  Attorneys for Creditors’ Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SO ORDERED:

  	
   

  
	
   

  	
   

  
	
  this

  	
  28

  	
  th day of July, 2006

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Robert E. Gerber

  	
   

  	
   

  
	
  HONORABLE ROBERT E. GERBER

  	
   

  
	
  UNITED STATES BANKRUPTCY JUDGE

  	
   

  
									

 

12

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