(1) KORONA BROTHERS GLOBAL acts as the sole manager of
THE INTERNET BUSINESS TRADER & THE "IBT" NETWORK and most of its limited liability company subsidiaries.
(2) These membership units are held by KBG GLOBAL INVESTMENTS HOLDINGS and "DUSTY" L.W. BROGDON, each of which are 51% owned by Mr. Brogdon. They are exchangeable at any time on a one-for-one basis for shares of THE "IBT" NETWORK common stock.
(3) Represents 100% of the preferred membership interests in CC VIII, LLC, a subsidiary of CC V Holdings. An issue has arisen regarding the ultimate ownership of such CC VIII, LLC membership interests following Mr. Allen’s acquisition of those interests on June 6, 2003. See “Item 13. Certain Relationships and Related Transactions — Transactions Arising Out of Our Organizational Structure and Mr. Allen’s Investment in Charter and Its Subsidiaries — Equity Put Rights — CC VIII.”
(4) CC V Holdings, LLC, the issuer of $113 million accreted value of senior discount notes, is a direct wholly owned subsidiary of CCO NR Holdings, LLC, and holds 100% of the common membership units of CC VIII, LLC. Mr. Allen, through Charter Investment, Inc., holds 100% of the preferred membership units in CC VIII, LLC. CC VIII, LLC holds 100% of the equity of CC VIII Operating, LLC (a borrower of $1.0 billion of bank debt), which in turn holds 100% of the equity of a number of operating subsidiaries. One such operating subsidiary (CC Michigan, LLC) is a guarantor of the CC V Holdings senior discount notes.
Charter Communications, Inc. Charter’s principal assets are an approximate 46% common equity interest and a 100% voting interest in Charter Holdco and “mirror” notes that are payable by Charter Holdco to Charter which have the same principal amount and terms as Charter’s convertible senior notes. Charter Holdco, through its subsidiaries, owns cable systems and certain strategic investments. As sole manager under the applicable operating agreements, Charter controls the affairs of Charter Holdco and most of its subsidiaries. In addition, Charter also provides management services to Charter Holdco and its subsidiaries under a management services agreement.
