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Res 95-220 RESOLUTION NO. 95-220 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, APPROVING THE TRANSFER OF CONTROL FROM VIACOM CABLE TELEVISION TO TCI COMMUNICATIONS, INe. WHEREAS, Tele- Vue Systems, Inc. d/b/a Viacom Cable ("Franchisee") is the duly authorized holder of a franchise adopted by the City Council pursuant to Ordinance No. 95-238 (the "Franchise") authorizing the operation and maintenance of a cable television system (the "System") and authorizing Franchisee to serve the City of Federal Way (the "City") with cable television service; and WHEREAS, Viacom International Inc., a Delaware corporation ("Viacom"), a wholly-owned subsidiary of Viacom Inc., ("VI") is an indirect parent of Franchisee; and WHEREAS, VI, Viacom, Tele-Communications, Inc., a Delaware corporation ("TCI"), and TCI Communications, Inc., a Delaware corporation and wholly owned subsidiary of TCI ("TCIC"), are parties to some or all of the following agreements: a Parents Agreement, an Implementation Agreement and a Subscription Agreement (the "Agreements"); and WHEREAS, upon the consummation of the transactions contemplated by the Agreements (the "Transactions"), TCIC will acquire all of the outstanding common stock of Viacom and become the indirect parent of Franchisee; and WHEREAS, upon the consummation of the Transactions, the Franchisee will continue to directly own and operate the System; and WHEREAS, Franchisee and TCIC have requested consent by the City to the Transactions; and Res, # 95-2?<Þage # ~ COpy WHEREAS, the Transactions are deemed to be in the best interests of the residents of the City of Federal Way. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF FEDERAL WAY AS FOLLOWS: SECTION 1. Consent to Transfer of Control. The City hereby consents to and approves the Transactions, all in accordance with the requirements of the Franchise; provided, however, that TCl and TClC must agree to assume all of the obligations and duties of Franchisee pursuant to the Franchise. Any interest in Franchisee, or control related thereto, may be transferred to any entity controlled by, controlling or under common control with the current holder of such interest upon notice to the City of any such transfer, SECTION 2. Svstem Encumbrance. The City hereby consents to and approves the assignment, mortgage, pledge or other encumbrance, if any, of the Franchise, System or assets relating thereto, or of the interests in Franchisee, as collateral for a loan, consistent with the terms of the Franchise. SECTION 3. Franchise. The City confirms that, as of the date of this Resolution: (a) the Franchise was properly granted to Franchisee, is valid, remains in full force and effect and expires on August 13,2005; (b) the Franchise supersedes all other agreements between Franchisee and the City and represents the entire understanding of the parties; and (c) Franchisee is materially in compliance with the provisions of the Franchise and there are no material unfulfilled commitments of Franchisee under the Franchise. SECTION 4. Severability. If any section, sentence, clause or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, Res. #"b-Z!D, Page #~ such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this resolution. SECTION 5. Ratification. Any act consistent with the authority and prior to the effective date of the resolution is hereby ratified and affirmed. SECTION 6. Effective Date. This resolution shall be deemed effective as of the closing date of the Transactions. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY WASHINGTON, this ~ day of NDIt'rnIaVv , 1995. J CITY OF FEDERAL WAY ~? 4~~ MA OR, Y E. GATES ?1S:ø~ /Þ~~ CITY CLERK, N. CHRISTINE GREEN, CMC APPROVED AS TO FORM: ~~D¡K.~~ FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION NO. 95-ZD 11/14195 1.I/ZI./95 k:\RESOIVlACOM TCI Res. tfE-ZD, Page #~ 9 ACCEPTANCE OF FRANCHISE Federal Way, Washington From and after the closing date of the transaction d�cdbed in Resolution No. 95-220, passed by the City Council of Federal Way, Washington on November 21, 1995, Tele- Comm�unications, Inc. and TCI Communications, Inc. will cause Tele-Vue Systems, Inc. to comply with all of the terms, conditions and obligations contained in Ordinance No. 95-238. Dated: December 21, 1995 INC. : M. Brett, V'ice President Res. #95-220, Page #4 TCI CON�b�TICATIONS, INC. : Stephen M. Brett, vice President