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SEC Filings

10-K405
RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
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<PAGE>
 
                          RENAISSANCE MEDIA GROUP LLC
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
 
                               December 31, 1998
                       (All dollar amounts in thousands)
 
 
   Total rent expense for utility poles was approximately $620 in 1998. Future
minimum annual rental payments under noncancellable leases are as follows:
 

<TABLE>
<CAPTION>
      1999................................................................ $162
      <S>                                                                  <C>
      2000................................................................   38
      2001................................................................   24
      2002................................................................   20
      2003 and thereafter.................................................   66
                                                                           ----
      Total............................................................... $310
                                                                           ====
</TABLE>

 
  (B) Employment Agreements
 
   Media has entered into employment agreements with six senior executives who
are also investors in Holdings. Under the conditions of five of the agreements
the employment term is five years, expiring in April 2003 and requires Media
to continue salary payments (including any bonus) through the term if the
executive's employment is terminated by Media without cause, as defined in the
employment agreement. Media's obligations under the employment agreements may
be reduced in certain situations based on actual operating performance
relative to the business plan, death or disability or by actions of the other
senior executives.
 
   The employment agreement for one senior executive has a term of one year
and may be renewed annually. This agreement has been renewed through April 8,
2000.
 
  (C) Other Agreements
 
   In exchange for certain flexibility in establishing cable rate pricing
structures for regulated services that went into effect on January 1, 1996,
Time Warner agreed with the Federal Communications Commission ("FCC") to
invest in certain upgrades to its cable infrastructure (consisting primarily
of materials and labor in connection with the plant upgrades up to 750 MHz) by
1999 (approximately $23 million). This agreement with the FCC has been assumed
by the Company as part of the Acquisition.
 
  11. Subsequent Event
 
   On February 23, 1999, Holdings entered into an agreement with Charter
Communications, LLC to sell 100% of its members' equity in the Company for
approximately $459,000, subject to certain closing conditions. This
transaction is expected to close during the third quarter of 1999.
 
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