CABLE TV FUND 14-A LTD
10-K, 1996-04-01
RADIOTELEPHONE COMMUNICATIONS
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                                    FORM 10-K
                       SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C.

(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1995

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _________ to _________

Commission file number: 0-15378

                            CABLE TV FUND 14-A, LTD.
             (Exact name of registrant as specified in its charter)

         Colorado                                        84-1024657
(State of Organization)                       (IRS Employer Identification No.)

P.O. Box 3309, Englewood, Colorado 80155-3309         
(Address of principal executive office and Zip Code)  

                                                 (303) 792-3111
                                (Registrant's telephone no. including area code)

        Securities registered pursuant to Section 12(b) of the Act: None
 Securities registered pursuant to Section 12(g) of the Act: Limited Partnership
 Interests

Indicate by check mark whether the registrants, (1) have filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past 90 days:

         Yes   x                                           No
              ---                                             ---

Aggregate market value of the voting stock held by non-affiliates of the
registrant: N/A

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Section 229.405) is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K.
                                      ---

DOCUMENTS INCORPORATED BY REFERENCE: None

(21602)


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                                     PART I.

                                ITEM 1. BUSINESS

         THE PARTNERSHIP. Cable TV Fund 14-A, Ltd. (the "Partnership") is a
Colorado limited partnership that was formed pursuant to the public offering of
limited partnership interests in the Cable TV Fund 14 Limited Partnership
Program (the "Program"), which was sponsored by Jones Intercable, Inc. (the
"General Partner"). Cable TV Fund 14-B, Ltd. ("Fund 14-B") is the other
partnership that was formed pursuant to the Program. The Partnership and Fund
14-B formed a general partnership known as Cable TV Fund 14-A/B Venture (the
"Venture"), in which the Partnership owns a 27 percent interest and Fund 14-B
owns a 73 percent interest. The Partnership and the Venture were formed for the
purpose of acquiring and operating cable television systems.

         The Partnership directly owns cable television systems serving the
areas in and around Turnersville, New Jersey (the "Turnersville System"),
Buffalo, Minnesota (the "Buffalo System"), Naperville, Illinois (the "Naperville
System"), Calvert County, Maryland (the "Calvert County System") and certain
communities in Central Illinois (the "Central Illinois System"). The Venture
owns the cable television system serving certain areas in Broward County,
Florida (the "Broward County System"). See Item 2. The Turnersville System,
Buffalo System, Naperville System, Calvert County System, Central Illinois
System and Broward County System may collectively be referred to as the
"Systems."

         PROPOSED DISPOSITION OF CABLE TELEVISION SYSTEM. In March 1996, the
Partnership entered into an agreement to sell the Turnersville System to an
unaffiliated party for a sales price totaling approximately $84,500,000, subject
to closing adjustments that potentially could reduce the sales price to
$80,500,000. Closing of this sale is expected to occur in the second half of
1996. Upon the consummation of the proposed sale of the Turnersville System, the
Partnership will distribute at least $20,000,000 to its limited partners, repay
any amounts due to the General Partner, and, as required under the terms of the
Partnership's credit facility, use the balance of the sale proceeds to repay a
portion of the Partnership's bank indebtedness. Because this distribution of
$20,000,000 will not return 125% of the amount initially contributed to the
Partnership by the limited partners, the General Partner will not receive a
distribution on the sale of the Turnersville System. The Jones Group, Ltd., a
subsidiary of the General Partner, will receive a brokerage fee of 2.5% of the
sales price for acting as a broker in this transaction. Because the Turnersville
System does not represent a sale of all or substantially all of the
Partnership's assets, no vote of the limited partners of the Partnership is
required to approve this sale.

         CABLE TELEVISION SERVICES. The Systems offer to their subscribers
various types of programming, which include basic service, tier service, premium
service, pay-per-view programs and packages including several of these services
at combined rates.

         Basic cable television service usually consists of signals of all four
national television networks, various independent and educational television
stations (both VHF and UHF) and certain signals received from satellites. Basic
service also usually includes programs originated locally by the system, which
may consist of music, news, weather reports, stock market and financial
information and live or videotaped programs of a public service or entertainment
nature. FM radio signals are also frequently distributed to subscribers as part
of the basic service.

         The Systems offer tier services on an optional basis to their
subscribers. A tier generally includes most of the cable networks such as
Entertainment and Sports Programming Network (ESPN), Cable News Network (CNN),
Turner Network Television (TNT), Family Channel, Discovery and others, and the
cable television operators buy tier programming from these networks. The Systems
also offer a package that includes the basic service channels and the tier
services.

         The Systems also offer premium services to their subscribers, which
consist of feature films, sporting events and other special features that are
presented without commercial interruption. The cable television operators buy
premium programming from suppliers such as HBO, Showtime, Cinemax or others at a
cost based on the number of subscribers the cable operator serves. Premium
service programming usually is significantly


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more expensive than the basic service or tier service programming, and
consequently cable operators price premium service separately when sold to
subscribers.

         The Systems also offer to subscribers pay-per-view programming.
Pay-per-view is a service that allows subscribers to receive single programs,
frequently consisting of motion pictures that have recently completed their
theatrical exhibitions and major sporting events, and to pay for such service on
a program-by-program basis.

         REVENUES. Monthly service fees for basic, tier and premium services
constitute the major source of revenue for the Systems. At December 31, 1995,
the Systems' monthly basic service rates ranged from $4.95 to $14.70, monthly
basic and tier ("basic plus") service rates ranged from $16.95 to $24.16. and
monthly premium services ranged from $1.00 to $12.95 per premium service. In
addition, the Partnership and the Venture earn revenues from the Systems'
pay-per-view programs and advertising fees. Related charges may include a
nonrecurring installation fee that ranges from $1.99 to $43.30; however, from
time to time the Systems have followed the common industry practice of reducing
or waiving the installation fee during promotional periods. Commercial
subscribers such as hotels, motels and hospitals are charged a nonrecurring
connection fee that usually covers the cost of installation. Except under the
terms of certain contracts with commercial subscribers and residential apartment
and condominium complexes, the subscribers are free to discontinue the service
at any time without penalty. For the year ended December 31, 1995, of the total
fees received by the Systems, basic service and tier service fees accounted for
approximately 61% of total revenues, premium service fees accounted for
approximately 18% of total revenues, pay-per-view fees were approximately 3% of
total revenues, advertising fees were approximately 7% of total revenues and the
remaining 11% of total revenues came principally from equipment rentals,
installation fees and program guide sales. The Partnership and the Venture are
dependent upon the timely receipt of service fees to provide for maintenance and
replacement of plant and equipment, current operating expenses and other costs
of the Systems.

         FRANCHISES. The Systems are constructed and operated under
non-exclusive, fixed-term franchises or other types of operating authorities
(referred to collectively herein as "franchises") granted by local governmental
authorities. These franchises typically contain many conditions, such as time
limitations on commencement and completion of construction, conditions of
service, including the number of channels, types of programming and the
provision of free service to schools and certain other public institutions, and
the maintenance of insurance and indemnity bonds. The provisions of local
franchises are subject to federal regulation.

         The Partnership directly holds 47 franchises, and the Venture holds 9
franchises. These franchises provide for the payment of fees to the issuing
authorities and generally range from 3% to 5% of the gross revenues of a cable
television system. The 1984 Cable Act prohibits franchising authorities from
imposing annual franchise fees in excess of 5% of gross revenues and also
permits the cable television system operator to seek renegotiation and
modification of franchise requirements if warranted by changed circumstances.

         Neither the Partnership nor the Venture has ever had a franchise
revoked. The Partnership's franchise expiration dates currently range from
March 1996 to October 2010, and the Venture's franchise expiration dates
currently range from March 1998 to December 2024. The original expiration date
of the Waterford Township franchise (the "Waterford Franchise") in the
Turnersville System was December 18, 1995. The terms of the franchise renewal
have been agreed upon, but the renewal has not yet been formally approved. Under
New Jersey law, the authority to operate a cable system continues
notwithstanding the expiration of a franchise so long as the renewal process is
ongoing, and the renewal process for the Waterford Franchise is ongoing. The
General Partner believes that the Waterford Franchise and all of the 4 other
franchises expiring in 1996 will be renewed in due course. Some of the issues
involved in recent renewal negotiations include rate regulation, customer
service standards, cable plant upgrade or replacement and shorter terms of
franchise agreements.

         COMPETITION. Cable television systems currently experience competition
from several sources. A potential source of significant competition is Direct
Broadcast Satellite ("DBS") services that use video compression technology to
increase channel capacity and provide packages of movies, network and other
program services that are competitive with those of cable television systems.
Two companies offering DBS services began


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operations in 1994, and two other companies offering DBS service recently began
operations. In addition, a joint venture has won the right to provide a DBS
service through a FCC spectrum auction. Not all subscribers terminate cable
television service upon acquiring a DBS system. The General Partner has observed
that a number of DBS subscribers also elect to subscribe to cable television
service in order to obtain the greatest variety of programming on multiple
television sets, including local video services programming not available
through DBS service.

         Although neither the Partnership, the Venture nor the General Partner
has yet encountered competition from a telephone company providing video
services as a cable operator or video dialtone operator, it is anticipated that
the cable television systems owned or managed by the General Partner will face
such competition in the near future. Legislation recently enacted into law will
make it possible for companies with considerable resources to enter the
business. For example, in February 1996, one of the regional Bell operating
companies entered into an agreement to acquire the nation's third largest cable
television company. In addition, several telephone companies have begun seeking
cable television franchises from local governmental authorities as a consequence
of litigation that successfully challenged the constitutionality of the cable
television/telephone company cross-ownership services. The General Partner
cannot predict at this time when and to what extent telephone companies will
provide cable television service within service areas in competition with cable
television systems owned or managed by the General Partner.

         The General Partner is aware of the following imminent competition from
telephone companies: Ameritech New Media, Inc. ("Ameritech"), a wholly owned
subsidiary of Ameritech Corporation, one of the seven regional Bell operating
companies, which provides telephone service in a multi-state region including
Illinois, has just obtained a franchise that will allow it to provide cable
television service in Naperville, Illinois, a community currently served by the
Partnership's Naperville System. If Ameritech begins providing cable 
television service in Naperville, this competition could have a material 
adverse effect on the Naperville System's revenues, cash flow and fair market 
value. The General Partner is taking prudent steps necessary to meet this 
potential competition from Ameritech; however, there can be no assurance that 
the Partnership will have the resources required to meet the competitive 
threat posed by Ameritech. In February 1996, the General Partner, on behalf of 
the Partnership, requested modification of the Naperville System's franchise 
under the terms of the federal law that permits cable television system 
operators to request modification of a franchise when the continued delivery 
of cable service pursuant to the franchise becomes commercially impracticable. 
The modifications requested relate to various services and subsidies required 
of the Partnership in its franchise that are not required of Ameritech under 
its franchise. The basis for the modification request is that Ameritech is not 
being required to provide many of the services and subsidies imposed on the 
Partnership and thus Ameritech will be at a competitive advantage vis a vis 
the Partnership. In addition, as disclosed in detail in Item 3. Legal 
Proceedings, the Partnership has filed suit against Ameritech and the City of 
Naperville charging that the City of Naperville granted a franchise to 
Ameritech on terms more favorable and less burdensome than the Partnership's
franchise in violation of Illinois law. The lawsuit seeks a declaration from
the court that the Ameritech franchise is void and it seeks to enjoin the City
of Naperville and Ameritech from taking any further actions pursuant to the
Ameritech franchise, including construction of a cable television system by
Ameritech, until a valid franchise is issued to Ameritech in accordance with
the Illinois law that prohibits cities from issuing second cable television
franchises under terms or conditions more favorable or less burdensome to the
applicant than those required under the existing cable television franchise. 

         Chesapeake and Potomac Telephone Company of Virginia and Bell Atlantic
Video Service Company, both subsidiaries of Bell Atlantic, another of the
regional Bell operating companies, have announced their intention to build a
cable television system in Alexandria, Virginia in competition with a cable
television system owned by the General Partner. Bell Atlantic is preparing for
the operation of a telecommunications and video business in northern Virginia,
including the Alexandria metropolitan area. The FCC has granted GTE Virginia's
application for authority to construct, operate, own and maintain video dialtone
facilities in northern Virginia, including in the service area of a cable
television system owned by the General Partner. To date, GTE has not begun
construction of a video distribution system. The entry of telephone companies as
direct competitors could adversely affect the profitability and market value of
the General Partner's owned and managed systems.

         Additional competition is present from several sources, including the
following: Master Antenna Television and Satellite Master Antenna Television
systems that serve multi-unit dwellings such as condominiums, apartment
complexes, motels, hotels and private residential communities; private cable
television/telephonic companies that have secured exclusive contracts to provide
video and telephony services to multi-unit dwellings and similar complexes; and
multichannel, multipoint distribution service ("MMDS") systems, commonly called
wireless cable which generally focus on providing service to residents of rural
areas. In addition, the FCC has established a new wireless telecommunications
service known as Personal Communications Service ("PCS") that would provide
portable non-vehicular mobile communications services similar to that available
from cellular telephone companies, but at a lower cost. Several cable television
multiple system operators hold or have requested experimental licenses from the
FCC to test PCS technology.

         REGULATION AND LEGISLATION. The cable industry is regulated under the
Telecommunications Act of 1996 (the "1996 Act"), the Cable Television Consumer
Protection and Competition Act of 1992 (the "1992 Cable Act") and the Cable
Communications Policy Act of 1984 (the "1984 Cable Act") and the regulations
implementing these statutes. The Federal Communications Commission (the "FCC")
has promulgated regulations covering such areas as the registration of cable
television systems and other communications businesses, carriage of television


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broadcast programming, consumer education and lockbox enforcement, origination
cablecasting and sponsorship identification, children's programming, the
regulation of basic cable and cable programming service rates in areas where
cable television systems are not subject to effective competition, signal
leakage and frequency use, technical performance, maintenance of various
records, equal employment opportunity, and antenna structure notification,
marking and lighting. In addition, cable operators periodically are required to
file various informational reports with the FCC. The FCC has the authority to
enforce these regulations through the imposition of substantial fines, the
issuance of cease and desist orders and/or the imposition of administrative
sanctions, such as the revocation of FCC licenses needed to operate certain
transmission facilities often used in connection with cable operations. State or
local franchising authorities, as applicable, also have the right to enforce
various regulations, impose fines or sanctions, issue orders or seek revocation
subject to the limitations imposed upon such franchising authorities by federal,
state and local laws and regulations. Several states have assumed regulatory
jurisdiction of the cable television industry, and it is anticipated that other
states will do so in the future. To the extent the cable television industry
begins providing telephone service, additional state regulations will be applied
to the cable television industry. Cable television operations are subject to
local regulation insofar as systems operate under franchises granted by local
authorities.

         The following is a summary of federal laws and regulations materially
affecting the cable television industry, and a description of state and local
laws with which the cable industry must comply.

         Telecommunications Act of 1996. The 1996 Act, which became law on
February 28, 1996, substantially revised the Communications Act of 1934, as
amended, including the 1984 Cable Act and the 1992 Cable Act, and has been
described as one of the most significant changes in communications regulation
since the original Communications Act of 1934. The 1996 Act is intended, in
part, to promote substantial competition in the telephone local exchange and in
the delivery of video and other services. As a result of the 1996 Act, local
telephone companies (also known as local exchange carriers or "LECs") and other
service providers are permitted to provide video programming, and cable
television operators are permitted entry into the telephone local exchange
market. The FCC is required to conduct rulemaking proceedings over the next
several months to implement various provisions of the 1996 Act.

         Among other provisions, the 1996 Act modified the 1992 Cable Act by
deregulating the cable programming service tier of large cable operators
effective March 31, 1999 and the cable programming service tier of small cable
operators (those that provide service to 50,000 or fewer subscribers) effective
immediately. The 1996 Act also revised the procedures for filing a cable
programming service tier rate complaint and adds a new effective competition
test.

         The most far-reaching changes in the communications business will
result from the telephony provisions of the 1996 Act. The statute expressly
preempts any legal barriers to competition in the local telephone business that
previously existed in state and local laws and regulations. Many of these
barriers had been lifted by state actions over the last few years, but the 1996
Act completes the task. The 1996 Act also establishes new requirements for
maintaining and enhancing universal telephone service and new obligations for
telecommunications providers to maintain privacy of customer information. The
1996 Act establishes uniform requirements and standards for entry, competitive
carrier interconnection and unbundling of LEC monopoly services.

         The 1996 Act repealed the cable television/telephone cross-ownership
ban adopted in the 1984 Cable Act. The federal cross-ownership ban was
particularly important to the cable industry because telephone companies already
own certain facilities such as poles, ducts and associated rights of way. While
this ban had been overturned by several courts, formal removal of the ban ended
the last legal constraints on telephone company plans to enter the cable market.
Under the 1996 Act, telephone companies in their capacity as common carriers now
may lease capacity to others to provide cable television service. Telephone
companies have the option of providing video service as cable operators or
through "open video systems" ("OVS"), a regulatory regime that 



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may provide more flexibility than traditional cable service. The 1996 Act
exempts OVS operators from many of the regulatory obligations that currently
apply to cable operators, such as rate regulation and franchise fees, although
other requirements are still applicable. OVS operators, although not subject to
franchise fees as defined by the 1992 Cable Act, are subject to fees charged by
local franchising authorities or other governmental entities in lieu of
franchise fees. (Under certain circumstances, cable operators also will be able
to offer service through open video systems.) In addition, the 1996 Act
eliminated the requirement that telephone companies file Section 214
applications (applications to provide video dialtone services) with the FCC
before providing video service. This limits the opportunity of cable operators
to mount challenges at the FCC regarding telephone company entry into the video
market. The 1996 Act also contains restrictions on buying out incumbent cable
operators in a telephone company's service area, especially in suburban and
urban markets.

         Other parts of the 1996 Act also will affect cable operators. Under the
1996 Act, the FCC is required to revise the current pole attachment rate
formula. This revision will result in an increase in the rates paid by entities,
including cable operators, that provide telecommunication services. The rates
will be phased in after a five-year period. (Cable operators that provide only
cable services will be unaffected.) Under the V-chip provisions of the 1996 Act,
cable operators and other video providers are required to pass along any program
rating information that programmers include in video signals. Cable operators
also are subject to new scrambling requirements for sexually explicit
programming, and cable operators that provide Internet access or other online
services are subject to the new indecency limitations for computer services. In
addition, cable operators that provide Internet access or other online services
are subject to the new indecency limitations for computer services, although
these provisions already have been challenged in court, and the courts have
preliminarily enjoined the enforcement of these content-based provisions.

         Under the 1996 Act, a franchising authority may not require a cable
operator to provide telecommunications services or facilities, other than an
institutional network, as a condition to a grant, renewal or transfer of a cable
franchise, and franchising authorities are preempted from regulating
telecommunications services provided by cable operators and from requiring cable
operators to obtain a franchise to provide such services. The 1996 Act also
repealed the 1992 Cable Act's anti-trafficking provision, which generally
required the holding of cable television systems for three years.

         It is premature to predict the specific effects of the 1996 Act on the
cable industry in general or the Partnership in particular. The FCC shortly will
be undertaking numerous rulemaking proceedings to interpret and implement the
1996 Act. It is not possible at this time to predict the outcome of those
proceedings or their effect on the Partnership.

         Cable Television Consumer Protection and Competition Act of 1992. The
1992 Cable Act, which became effective on December 4, 1992, caused significant
changes to the regulatory environment in which the cable television industry
operates. The 1992 Cable Act generally mandated a greater degree of regulation
of the cable television industry. Under the 1992 Cable Act's definition of
effective competition, nearly all cable television systems in the United States,
including those owned and managed by the General Partner, became subject to rate
regulation of basic cable services. In addition, the 1992 Cable Act allowed the
FCC to regulate rates for non-basic service tiers other than premium services in
response to complaints filed by franchising authorities and/or cable
subscribers. In April 1993, the FCC adopted regulations governing rates for
basic and non-basic services. The FCC's rules became effective on September 1,
1993.

         In compliance with these rules, the General Partner on behalf of the
Partnership reduced rates charged for certain regulated services in the
Partnership's cable systems effective September 1, 1993. These reductions
resulted in some decrease in Partnership revenues and operating income before
depreciation and amortization; however, the decrease was not as severe as
originally anticipated. The General Partner has undertaken actions to mitigate a
portion of these reductions primarily through (a) new service offerings in some
systems, (b) product re-marketing and re-packaging and (c) marketing efforts
directed at non-subscribers.

         On February 22, 1994, however, the FCC adopted several additional rate
orders including an order which revised its earlier-announced regulatory scheme
with respect to rates. The FCC's new regulations 


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generally required rate reductions, absent a successful cost-of-service showing,
of 17 percent of September 30, 1992 rates, adjusted for inflation, channel
modifications, equipment costs, and increases in programming costs. Further rate
reductions for cable systems whose rates are below the revised benchmark levels,
as well as reductions that would require operators to reduce rates below
benchmark levels in order to achieve a 17 percent rate reduction, were held in
abeyance pending completion of cable system cost studies. The FCC recently
requested some of these "low price" systems to complete cost study
questionnaires. After review of these questionnaires, the FCC could decide to
permanently defer any further rate reductions, or require the additional 7
percent rate roll back for some or all of these systems. The FCC has also
adopted its proposed upgrade methodology by which operators would be permitted
to recover the costs of upgrading their plant.

         After analyzing the effect of the two methods of rate regulation, the
Partnership elected to file cost-of-service showings for the Buffalo System, the
Naperville System and the Calvert County System. The General Partner therefore
anticipates no further reductions in revenues or operating income before
depreciation and amortization of these three systems resulting from the FCC's
rate regulations. At this time, the regulatory authorities have not approved the
cost-of-service showings, and there can be no assurance that the Partnership's
cost-of-service showings will prevent further rate reductions until such final
approval is received. The Partnership and the Venture complied with the
benchmark regulations and reduced rates in the Turnersville System, the Central
Illinois System and the Broward County System.

         On November 10, 1994, the FCC also announced a revision to its
regulations governing the manner in which cable operators may charge subscribers
for new cable programming services. In addition to the present formula for
calculating the permissible rate for new services, the FCC instituted a
three-year flat fee mark-up plan for charges relating to new channels of cable
programming services. Commencing on January 1, 1995, cable system operators may
charge for new channels of cable programming services added after May 14, 1994
at a rate of up to 20 cents per channel, but may not make adjustments to monthly
rates totaling more than $1.20 plus an additional 30 cents for programming
license fees per subscriber over the first two years of the three-year period
for these new services. Operators may charge an additional 20 cents in the third
year only for channels added in that year plus the costs for the programming.
Operators electing to use the 20 cent per channel adjustment may not also take a
7.5 percent mark-up on programming cost increases, which is permitted under the
FCC's current rate regulations. The FCC has requested further comment as to
whether cable operators should continue to receive the 7.5 percent mark-up on
increases in license fees on existing programming services.

         The FCC also announced that it will permit operators to offer a "new
product tier" ("NPT"). Operators will be able to price the NPT as they elect so
long as, among other conditions, other channels that are subject to rate
regulation are priced in conformity with applicable regulations and operators do
not remove programming services from existing tiers and offer them on the NPT.

         In September 1995, the FCC authorized a new, alternative method of
implementing rate adjustments which will allow cable operators to increase rates
for programming annually on the basis of projected increases in external costs
(inflation, costs for programming, franchise-related obligations and changes in
the number of regulated channels) rather than on the basis of cost increases
incurred in the preceding calendar quarter. Operators that elect not to recover
all of their accrued external costs and inflation pass-throughs each year may
recover them (with interest) in subsequent years.

         In December 1995, the FCC adopted final cost-of-service rate
regulations requiring, among other things, cable operators to exclude 34 percent
of system acquisition costs related to intangible and tangible assets used to
provide regulated services. The FCC also reaffirmed the industry-wide 11.25
percent after tax rate of return on an operator's allowable rate base, but
initiated a further rulemaking in which it proposes to use an operator's actual
debt cost and capital structure to determine an operator's cost of capital or
rate of return. After a rate has been set pursuant to a cost-of-service showing,
rate increases for regulated services are indexed for inflation, and operators
are permitted to increase rates in response to increases in costs beyond their
control, such as taxes and increased programming costs.


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         The United States Court of Appeals for the District of Columbia Circuit
recently upheld the FCC's rate regulations implemented pursuant to the 1992
Cable Act, but ruled that the FCC impermissibly failed to permit
cable operators to adjust rates for certain cost increases incurred during the
period between the date the 1992 Cable Act was passed through the initial date
of rate regulation. The FCC has not yet implemented the court's ruling.

         There have been several lawsuits filed by cable operators and
programmers in federal court challenging various aspects of the 1992 Cable Act
including its provisions relating to mandatory broadcast signal carriage,
retransmission consent, access to cable programming, rate regulations,
commercial leased channels and public access channels. On April 8, 1993, a
three-judge federal district court panel issued a decision upholding the
constitutionality of the mandatory signal carriage requirements of the 1992
Cable Act. That decision was appealed directly to the United States Supreme
Court. The United States Supreme Court vacated the lower court decision on June
27, 1994 and remanded the case to the district court for further development of
a factual record. On December 12, 1995, the three-judge federal district court
again upheld the must-carry rules' validity. This decision has been appealed to
the United States Supreme Court.

         In 1993, a federal district court upheld provisions of the 1992 Cable
Act concerning rate regulation, retransmission consent, restrictions on
vertically integrated cable television operators and programmers, mandatory
carriage of programming on commercial leased channels and public, educational
and governmental access channels and the exemption for municipalities from civil
damage liability arising out of local regulation of cable services. The 1992
Cable Act's provisions providing for multiple ownership limits for cable
operators and advance notice of free previews for certain programming services
have been found unconstitutional and these decisions have been appealed. The
FCC's regulations relating to the carriage of indecent programming, which were
recently upheld by the United States Court of Appeals for the District of
Columbia, have been appealed to the United States Supreme Court.

         Franchising. The responsibility for franchising or other authorization
of cable television systems is left to state and local authorities. There are,
however, several provisions in the 1984 Cable Act that govern the terms and
conditions under which cable television systems provide service. These include
uniform standards and policies that are applicable to cable television operators
seeking renewal of a cable television franchise. The procedures established
provide for a formal renewal process should the franchising authority and the
cable television operator decline to use an informal procedure. A franchising
authority unable to make a preliminary determination to renew a franchise is
required to hold a hearing in which the operator has the right to participate.
In the event a determination is made not to renew the franchise at the
conclusion of the hearing, the franchising authority must provide the operator
with a written decision stating the specific reasons for non-renewal. Generally,
the franchising authority can finally decide not to renew a franchise only if it
finds that the cable operator has not substantially complied with the material
terms of the present franchise, has not provided reasonable service in light of
the community's needs, does not have the financial, legal or technical ability
to provide the services being proposed for the future, or has not presented a
reasonable proposal for future service. A final decision of non-renewal by the
franchising authority is appealable in court.

         A provision of the 1996 Act preempts franchising authorities from
regulating telecommunications services provided by cable operators and from
requiring cable operators to obtain a franchise to provide such services. A
franchising authority may not require a cable operator to provide
telecommunications services or facilities, other than an institutional network,
as a condition to a grant, renewal or transfer of a cable franchise.

         GENERAL. The Partnership's and the Venture's business consists of
providing cable television services to a large number of customers, the loss of
any one of which would have no material effect on the Partnership's or the
Venture's business. Each of the Systems has had some subscribers who later
terminated the service. Terminations occur primarily because people move to
another home or to another city. In other cases, people terminate on a seasonal
basis or because they no longer can afford or are dissatisfied with the service.
The amount of past due accounts in the Systems is not significant. The General
Partner's policy with regard to past due accounts is basically one of
disconnecting service before a past due account becomes material.


                                        8
<PAGE>   9
         Neither the Partnership nor the Venture depends to any material extent
on the availability of raw materials; it carries no significant amounts of
inventory and it has no material backlog of customer orders. The Partnership has
no employees because all properties are managed by employees of the General
Partner. The General Partner has engaged in research and development activities
relating to the provision of new services but the amount of the Partnership's or
the Venture's funds expended for such research and development has never been
material.

         Compliance with federal, state and local provisions that have been
enacted or adopted regulating the discharge of materials into the environment or
otherwise relating to the protection of the environment has had no material
effect upon the capital expenditures, earnings or competitive position of the
Partnership or the Venture.

                               ITEM 2. PROPERTIES

         The cable television systems owned by the Partnership and the Venture
are described below:


<TABLE>
<CAPTION>
                 Ownership                   SYSTEM                        ACQUISITION DATE
                 ---------                   ------                        ----------------

<S>                                    <C>                                 <C> 
Cable TV Fund 14-A, Ltd.               Turnersville System                 May 1987
                                       Buffalo System                      September 1987
                                       Naperville System                   September 1987
                                       Calvert County System               September 1987
                                       Central Illinois System             May 1991

Cable TV Fund 14-A/B Venture           Broward County System               March 1988
</TABLE>



         The following sets forth (i) the monthly basic plus service rates
charged to subscribers and (ii) the number of basic subscribers for the Systems.
The monthly basic service rates set forth herein represent, with respect to
systems with multiple headends, the basic service rate charged to the majority
of the subscribers within the system. In cable television systems, basic
subscribers can subscribe to more than one pay TV service. Thus, the total
number of pay services subscribed to by basic subscribers are called pay units.
As of December 31, 1995, the Turnersville System operated cable plant passing
approximately 45,900 homes, representing an approximate 77% penetration rate;
the Buffalo System operated cable plant passing approximately 21,000 homes,
representing an approximate 52% penetration rate; the Naperville System operated
cable plant passing approximately 39,500 homes, representing an approximate 69%
penetration rate; the Calvert System operated cable plant passing approximately
22,900 homes, representing an approximate 71% penetration rate, the Central
Illinois System operated cable plant passing approximately 22,300 homes,
representing an approximate 68% penetration rate and the Broward County System
operated cable plant passing approximately 89,100 homes, representing an
approximate 55% penetration rate. Figures for numbers of subscribers and homes
passed are compiled from the General Partner's records and may be subject to
adjustments.

CABLE TV FUND 14-A, LTD.

<TABLE>
<CAPTION>
                                                          At December 31,
                                                -----------------------------------

BUFFALO SYSTEM                                   1995          1994           1993
- --------------                                   ----          ----           ----
<S>                                             <C>           <C>            <C>
Monthly basic plus service rate                 $21.50        $20.00         $20.00
Basic subscribers                               11,039         9,567          7,929
Pay units                                        7,313         7,305          6,657
</TABLE>






                                        9
<PAGE>   10
<TABLE>
<CAPTION>
                                       At December 31,
                                   --------------------------
CALVERT COUNTY SYSTEM               1995      1994      1993
- ---------------------              ------    ------    ------
<S>                                <C>       <C>       <C>   
Monthly basic plus service rate    $26.63    $25.36    $23.75
Basic subscribers                  16,454    15,428    14,391
Pay units                          17,893    16,034    15,935
</TABLE>



<TABLE>
<CAPTION>
                                         At December 31,
                                   --------------------------
CENTRAL ILLINOIS SYSTEM             1995      1994      1993
- -----------------------            ------    ------    ------
<S>                                <C>       <C>       <C>   
Monthly basic plus service rate    $18.71    $17.21    $20.25
Basic subscribers                  15,390    14,616    13,830
Pay units                          12,292    11,713     9,878
</TABLE>



<TABLE>
<CAPTION>
                                        At December 31,
                                   --------------------------
NAPERVILLE SYSTEM                   1995      1994      1993
- -----------------                  ------    ------    ------
<S>                                <C>       <C>       <C>   
Monthly basic plus service rate    $23.87    $23.87    $23.87
Basic subscribers                  27,464    25,063    22,925
Pay units                          17,360    17,636    17,430
</TABLE>


<TABLE>
<CAPTION>
                                        At December 31,
                                   --------------------------
TURNERSVILLE SYSTEM                 1995      1994      1993
- -------------------                ------    ------    ------
<S>                                <C>       <C>       <C>   
Monthly basic plus service rate    $21.16    $19.66    $21.07
Basic subscribers                  35,523    33,961    32,426
Pay units                          36,934    36,462    35,035
</TABLE>



CABLE TV FUND 14-A/B VENTURE

<TABLE>
<CAPTION>
                                       At December 31,
                                   --------------------------
BROWARD COUNTY SYSTEM                1995      1994      1993
- ---------------------              ------    ------    ------
<S>                                <C>       <C>       <C>   
Monthly basic plus service rate    $24.16    $23.56    $24.00
Basic subscribers                  49,654    47,819    45,515
Pay units                          42,167    41,270    37,684
</TABLE>




                            ITEM 3. LEGAL PROCEEDINGS

         On March 12, 1996, a civil action entitled Cable TV Fund 14-A. Ltd.
d/b/a Jones Intercable, Plaintiff vs. Ameritech New Media, Inc. and the City of
Naperville, Illinois, Defendants was filed in the Circuit Court for DuPage
County, Illinois, County Department, Chancery Division (Case No. 96MR0192). The
Partnership filed this complaint for injunctive and declaratory relief to
challenge the City of Naperville's grant, on February 6, 1996, of a cable
television franchise to Ameritech New Media, Inc. ("Ameritech"). The terms of
the Ameritech cable television franchise are materially different from, and
materially more favorable to Ameritech than, the terms of the cable television
franchise granted to the Partnership. The Partnership's complaint relies upon
an Illinois law that provides that franchising authorities may grant additional
cable television franchises provided only that such additional cable television
franchises contain terms and conditions no more favorable or less burdensome to
the applicant than those required under the existing cable television
franchise. The Partnership's complaint seeks a declaration of the court that
the Ameritech franchise is void and without legal effect and it seeks to enjoin
the City of Naperville and Ameritech from any further actions pursuant to the
franchise granted to Ameritech by the City of Naperville on February 6, 1996,
including construction of a cable television system, until a valid franchise is
issued to Ameritech. The defendants have not yet responded to the complaint. 


                                       10
<PAGE>   11
           ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         None.

                                    PART II.

                ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK
                       AND RELATED SECURITY HOLDER MATTERS

         While the Partnership is publicly held, there is no public market for
the limited partnership interests, and it is not expected that a market will
develop in the future. As of February 15, 1996, the number of equity security 
holders in the Partnership was 12,312.


                                       11
<PAGE>   12

Item 6. Selected Financial Data

<TABLE>
<CAPTION>
                                                                          For the Year Ended December 31,             
                                        ------------------------------------------------------------------------------------------
Cable TV Fund 14-A, Ltd.                   1995               1994              1993                 1992                1991     
- ------------------------                -----------        -----------        -----------        ------------        -------------
<S>                                     <C>                  <C>              <C>                <C>                 <C>
Revenues                                $44,094,802        $40,442,268        $38,916,469        $ 36,315,757        $ 31,250,151
Depreciation and Amortization            14,459,479         14,826,256         15,197,677          15,464,984          14,187,245
Operating Loss                           (1,459,868)        (3,323,006)       (3,562,804)          (4,065,858)         (4,515,550)
Equity in Net Loss of
  Cable Television Joint Venture         (1,104,003)        (1,468,218)       (1,277,358)          (1,676,435)         (2,178,493)
Net Loss                                 (8,536,167)        (9,472,910)       (8,608,115)         (10,382,060)        (11,647,299)
Net Loss per Limited Partnership Unit        (52.82)            (58.61)           (53.26)              (64.24)             (72.07)
Weighted average number of
  Limited Partnership Units outstanding     160,000            160,000           160,000              160,000             160,000
General Partner's
  Deficit                                  (702,440)          (617,078)         (522,349)            (436,268)           (332,447)
Limited Partners' Capital (Deficit)        (918,403)         7,532,402        16,910,583           25,432,617          35,710,856
Total Assets                             82,900,838         87,556,346        94,106,926          106,808,479         114,829,803
Debt                                     80,726,793         77,425,047        75,601,829           79,386,274          77,970,342
General Partner Advances                    887,215            706,579            58,974              457,354                  -
</TABLE>


<TABLE>
<CAPTION>
                                                                    For the Year Ended December 31,             
                                        ---------------------------------------------------------------------------------------
Cable TV Fund 14-A/B Venture                1995               1994               1993              1992                1991
- ----------------------------            -----------        -----------        -----------        -----------        -----------
<S>                                     <C>                <C>                <C>                <C>                <C>
Revenues                                $23,469,505        $22,183,524        $22,068,952        $20,212,867        $18,366,881
Depreciation and Amortization             8,774,507          9,188,994          9,352,808          9,971,915         10,472,621
Operating Loss                             (753,422)        (2,661,198)        (2,324,939)        (3,293,133)        (4,361,200)
Net Loss                                 (4,073,811)        (5,417,779)        (4,713,500)        (6,186,107)        (8,038,720)
Partners' Capital                        17,990,152         22,063,963         27,481,742         32,195,242         38,381,349
Total Assets                             62,447,556         66,597,460         72,315,816         80,404,133         85,533,244
Debt                                     40,530,652         42,271,921         43,461,730         46,908,409         46,037,691
Jones Intercable, Inc. Advances           2,206,959            354,179             57,920            125,873             16,705
</TABLE>


                                      12
<PAGE>   13
Item 7. Management's Discussion and Analysis of Financial Condition and Results
        of Operations

                            CABLE TV FUND 14-A, LTD.

RESULTS OF OPERATIONS

1995 Compared to 1994-

         Revenues of Cable TV Fund 14-A, Ltd. (the "Partnership") totaled
$44,094,802 for 1995 compared to $40,442,268 in 1994, an increase of
$3,652,534, or approximately 9 percent.  Increases in the subscriber base and
premium subscriptions accounted for approximately 53  percent of the increase.
The number of basic subscribers totaled 105,870 at December 31, 1995 compared
to 98,635 at December 31, 1994, an increase of 7,235, or approximately 7
percent.  Premium service subscriptions totaled 91,792 at December 31, 1995
compared to 89,150 at December 31, 1994, an increase of 2,642, or approximately
3 percent.  Rate increases during the first quarter of 1995 accounted for
approximately 20 percent of the increase in revenues for 1995.  An increase in
advertising sales accounted for approximately 18 percent of the increase in
revenues.  No other individual factor was significant to the increase in
revenues.

         Operating expenses consist primarily of costs associated with the
administration of the Partnership's cable television systems.  The principal
cost components are salaries paid to system personnel, programming expenses,
professional fees, subscriber billing costs, rent for leased facilities, cable
system maintenance expenses and consumer marketing expenses.

         Operating expenses totaled $25,719,534 for 1995 compared to
$23,811,465 in 1994, an increase of $1,908,069, or approximately 8 percent.
Operating expenses represented 58 percent of revenues in 1995 compared to 59
percent in 1994.  Increases in programming fees and advertising sales related
expenses primarily accounted for the increase in operating expenses.  The
increases in programming fees were due, in part, to the increase in the
subscriber base.  The increase in advertising sales related expenses was due,
in part, to the increase in advertising sales activity.  No other individual
factor was significant to the increase in revenues.

         Management fees and allocated overhead from the General Partner
totaled $5,375,657 for 1995 compared to $5,127,553 in 1994, an increase of
$248,104, or approximately 5 percent.  The increase was due to the increase in
revenues, upon which such fees and allocations are based, and increases in
allocated expenses from the General Partner.

         Depreciation and amortization expense totaled $14,459,479 for 1995
compared to $14,826,256 in 1994, a decrease of $366,777, or approximately 2
percent, primarily due to the maturation of a portion of the intangible asset
base.

         Operating loss totaled $1,459,868 for 1995 compared to $3,323,006 in
1994, a decrease of $1,863,138, or approximately 56 percent, due to the
increase in revenues and the decrease in depreciation and amortization expense
exceeding the increases in operating expenses and management fees and allocated
overhead from the General Partner.

         The cable television industry generally measures the financial
performance of a cable television system in terms of cash flow or operating
income before depreciation and amortization.  The value of a cable television
system is often determined using multiples of cash flow.  This measure is not
intended to be a substitute or improvement upon the items disclosed on the
financial statements, rather it is included because it is an industry standard.
Operating income before depreciation and amortization expense totaled
$12,999,611 for 1995 compared to $11,503,250 in 1994, an increase of
$1,496,361, or approximately 13 percent, due to the increase in revenues
exceeding the increases in operating expenses and management fees and allocated
overhead from the General Partner.

         Interest expense totaled $6,001,497 for 1995 compared to $4,498,227 in
1994, an increase of $1,503,270, or approximately 33 percent, due primarily to
higher outstanding balances on interest bearing obligations in 1995.

         Loss before equity in net loss of cable television joint venture
totaled $7,432,164 for 1995 compared to $8,004,692 in 1994, a decrease of
$572,528, or approximately 7 percent, primarily due to the decrease in
operating loss.

1994 Compared to 1993-

         Revenues of the Partnership totaled $40,442,268 in 1994 compared to
$38,916,469 in 1993, an increase of $1,525,799, or approximately 4 percent.  An
increase in the subscriber base primarily accounted for the increase in
revenues.  Basic subscribers increased 7,134, or approximately 8 percent, from
91,501 at December 31, 1993 to 98,635 at December 31, 1994.  The increase in


                                      13
<PAGE>   14
revenues would have been greater but for reductions in basic rates due to basic
rate regulations issued by the FCC in April 1993 and February 1994 with which
the Partnership complied effective September 1993 and July 1994, respectively.
No other individual factor was significant to the increase in revenues.

         Operating expenses totaled $23,811,465 in 1994 compared to $22,598,241
in 1993, an increase of $1,213,224, or approximately 5 percent.  Operating
expenses represented 59 percent of revenue in 1994 compared to 58 percent in
1993.  Increases in programming fees primarily accounted for the increase in
expenses.  The increases in programming fees were due, in part, to the increase
in the basic subscriber base.  No other factor was significant to the increase
in operating expenses.

         Management fees and allocated overhead from the General Partner
totaled $5,127,553 in 1994 compared to $4,683,355 in 1993, an increase of
$444,198, or approximately 9 percent.  This increase was due to the increase in
revenues, upon which such management fees and allocated overhead are based, and
increases in allocated expenses from the General Partner during 1994.

         Depreciation and amortization expense totaled $14,826,256 in 1994
compared to $15,197,677 in 1993, a decrease of $371,421, or approximately 2
percent, primarily due to the maturation of a portion of the tangible asset
base and the intangible asset base.

         Operating loss totaled $3,323,006 in 1994 compared to $3,562,804 in
1993, a decrease of $239,798, or approximately 7 percent, due primarily to the
increase in revenues and the decrease in depreciation and amortization expense.

         Operating income before depreciation and amortization totaled
$11,503,250 in 1994 compared to $11,634,873 in 1993, a decrease of $131,623, or
approximately 1 percent, due to the increases in operating expenses and
management fees and allocated overhead from the General Partner exceeding the
increase in revenues.

         Interest expense totaled $4,498,227 in 1994 compared to $3,726,237 in
1993, an increase of $771,990, or approximately 21 percent, due primarily to
higher effective interest rates and higher outstanding balances on interest
bearing obligations.

         Loss before equity in net loss of cable television joint venture
totaled $8,004,692 in 1994 compared to $7,330,757 in 1993, or approximately 9
percent, due primarily to the increase in interest expense.

         In addition to the systems owned directly, the Partnership owns a 27
percent interest in Cable TV Fund 14-A/B Venture (the "Venture").  See
Management's Discussion and Analysis of Financial Condition and Results of
Operations for the Venture for details pertaining to the Venture's operations.

FINANCIAL CONDITION

         During 1995, the Partnership generated net cash from operating
activities totaling $7,301,687, which was available to fund capital
expenditures and non-operating costs.  Capital expenditures for the
Partnership's directly owned systems totaled approximately $10,737,000 during
1995.  Approximately 32 percent was for new plant construction and
approximately 18 percent of these expenditures was attributable to construction
of service drops to subscribers' homes.  The remainder of the expenditures
related to various enhancements throughout the Partnership's operating systems.
These expenditures were funded primarily from cash generated from operations
and borrowings under the Partnership's revolving credit facility.

         Budgeted capital expenditures for 1996 are approximately $9,581,000.
Approximately 35 percent of the total capital expenditures will be used for new
plant construction in all of the Partnership's systems.  Approximately 12
percent will relate to construction of service drops to subscribers' homes.
The remainder of the anticipated expenditures are for various enhancements in
all of the Partnership's systems.  Funding for the improvements is expected to
come from cash on hand, cash generated from operations, and, in its discretion,
advances from the General Partner.

         In March 1996, the Partnership entered into an agreement to sell the
Turnersville System to an unaffiliated party for a sales price totaling
approximately $84,500,000, subject to closing adjustments that potentially
could reduce the sales price to $80,500,000.  Closing of this sale is expected
to occur in the second half of 1996.  Upon the consummation of the proposed
sale of the Turnersville System, the Partnership will make a distribution of at
least $20,000,000 of the net sales proceeds to its limited partners, repay any
amounts due to the General Partner and, as required under the terms of the
Partnership's credit facility, the balance will be used to repay a portion of
the Partnership's bank indebtedness.  Because this distribution will not return
125 percent of the amount initially contributed to the Partnership by the
limited partners, the General Partner will not receive a distribution on the
sale of the Turnersville System.  The Jones Group, Ltd., a subsidiary of the
General Partner, will receive a brokerage fee of 2.5 percent of the sales price
for acting as a broker in this transaction.  Because the Turnersville System
does not represent a sale of all or substantially all of the Partnership's
assets, no vote of the limited partners of the Partnership is required to
approve this sale.




                                      14
<PAGE>   15
         Ameritech, which provides telephone service in a multi-state region
including Illinois, has obtained a franchise that will allow it to provide
cable television service in Naperville, Illinois, a community currently served
by the Partnership's Naperville System.  If Ameritech takes steps to begin
providing cable television service in Naperville, this competition could have a
material adverse effect on the Naperville System's revenues, cash flow and fair
market value.  It could also have an adverse impact on the Partnership's
ability to sell the Naperville System.  The General Partner is taking prudent
steps necessary to meet this potential competition from Ameritech and to
safeguard the value of the Naperville System.

         During July 1994, the Partnership entered into an $80,000,000
revolving credit facility.  At December 31, 1995, $80,000,000 was outstanding
under this agreement.  The revolving credit facility converts to a term loan on
September 30, 1996, at which time the then-outstanding balance is payable in
quarterly installments through March 31, 2002.  Payments due during 1996 total
$2,000,000 and will be funded from cash on hand, cash generated from operations
and proceeds from the sale of the Turnersville System.  Interest on the
outstanding principal balance is at the Partnership's option of the Prime rate
plus 1/4 percent or the Certificate of Deposit rate plus 1-3/8 percent or the 
London Interbank Offered Rate plus 1-1/4 percent.

         Because the balance on the Partnership's credit facility is at its
maximum of $80,000,000, the Partnership will need to rely on cash on hand, cash
generated from operations and, in its discretion, advances from the General
Partner, to meet its anticipated liquidity and capital needs.  Upon the sale of
the Partnership's Turnersville System, the Partnership will repay a portion of
the balance outstanding on its credit facility.  This reduction in debt will
provide liquidity and the Partnership should have sufficient sources of capital
to meet its anticipated needs.

         In addition to those systems owned directly by it, the Partnership
owns a 27 percent interest in the Venture.  The Partnership's investment in
this cable television joint venture, accounted for under the equity method,
decreased by $1,104,003 compared to the December 31, 1994 balance.  This
decrease represents the Partnership's proportionate share of losses generated
by the Venture during 1995.

REGULATION AND LEGISLATION

         The Partnership has filed cost-of-service showings in response to
rulemakings concerning the 1992 Cable Act for its Turnersville, New Jersey;
Buffalo, Minnesota; Naperville, Illinois and Calvert County, Maryland systems
and thus anticipates no further reductions in rates in these systems.  The
cost-of-service showings have not yet received final approvals from regulatory
authorities, however, and there can be no assurance that the Partnership's
cost-of-service showings will prevent further rate reductions in these systems
until such final approvals are received.

         The Telecommunications Act of 1996 (the "1996 Act"), which became law
on February 8, 1996, substantially revised the Communications Act of 1934, as
amended, including the 1984 Cable Act and the 1992 Cable Act, and has been
described as one of the most significant changes in communications regulation
since the original Communications Act of 1934.  The 1996 Act is intended, in
part, to promote substantial competition in the telephone local exchange and in
the delivery of video and other services.  As a result of the 1996 Act, local
telephone companies (also known as local exchange carriers or "LECs") and other
service providers are permitted to provide video programming, and cable
television operators are permitted entry into the telephone local exchange
market.  The FCC is required to conduct rulemaking proceedings over the next
several months to implement various provisions of the 1996 Act.

         Among other provisions, the 1996 Act modified the 1992 Cable Act by
deregulating the cable programming service tier of large cable operators
including the Partnership effective March 31, 1999 and the cable programming
service tier of "small" cable operators in systems providing service to 50,000
or fewer subscribers effective immediately.  The 1996 Act also revised the
procedures for filing cable programming service tier rate complaints and adds a
new effective competition test.

         It is premature to predict the specific effects of the 1996 Act on the
cable industry in general or the Partnership in particular.  The FCC will be
undertaking numerous rulemaking proceedings to interpret and implement the 1996
Act.  It is not possible at this time to predict the outcome of those
proceedings or their effect on the Partnership.  See Item 1.




                                      15
<PAGE>   16
                          CABLE TV FUND 14-A/B VENTURE

RESULTS OF OPERATIONS

1995 Compared to 1994-

         Revenues of the Venture's Broward County System increased $1,285,981,
or approximately 6 percent, to $23,469,505 in 1995 from $22,183,524 in 1994.
The Venture added 1,835 basic subscribers in 1995, an increase of approximately
4 percent.  This increase in basic subscribers accounted for approximately 44
percent of the increases in revenue.  Increases in premium service revenue
accounted for approximately 25 percent of the increases in revenue and basic
service rate adjustments accounted for approximately 11 percent of the
increases in revenue.  No other individual factor significantly affected the
increase in revenues.

         Operating expense decreased $258,229, or approximately 2 percent, to
$12,620,209 in 1995 from $12,878,438 in 1994.  Operating expenses represented
54 percent of revenue in 1995, compared to 58 percent in 1994.  The decrease in
operating expenses was due primarily to decreases in personnel and marketing
related expenses, which were partially offset by increases in programming fees
and office related expenses.  No other individual factor significantly affected
the increase in operating expense.

         Management fees and allocated overhead from Jones Intercable, Inc.
("Intercable") increased $50,921, or approximately 2 percent, to $2,828,211 in 
1995 from $2,777,290 in 1994 primarily due to the increase in revenues upon 
which such fees and allocations are based.

         Depreciation and amortization expense decreased $414,487, or
approximately 5 percent, to $8,774,507 in 1995 from $9,188,994 in 1994.  The
decrease in depreciation and amortization expense was attributable to the
maturation of the Venture's asset base.

         Operating loss decreased $1,907,776, or approximately 72 percent, to
$753,422 in 1995 from $2,661,198 in 1994.  This decrease was due to the
increase in revenues and the decreases in operating and depreciation and
amortization expenses exceeding the increase in management fees and allocated
overhead from Intercable.

         Operating income before depreciation and amortization expense
increased $1,493,289, or approximately 23 percent, to $8,021,085 in 1995 from
$6,527,796 in 1994 due to the increases in revenues and decreases in operating
expenses exceeding the increase in management fees and allocated overhead from
Intercable.

         Interest expense increased $643,490, or approximately 24 percent, to
$3,371,524 in 1995 from $2,728,034 in 1994 due to higher outstanding balances 
on interest bearing obligations in 1995.

         Net loss decreased $1,343,968, or approximately 25 percent, to
$4,073,811 in 1995 from $5,417,779 in 1994.  These losses were primarily the
result of the factors discussed above.

1994 Compared to 1993-

         Revenues of the Venture's Broward County System increased $114,572, or
less than l percent, to $22,183,524 in 1994 from $22,068,952 in 1993.
Increases in advertising sales revenues and home shopping revenues were
primarily responsible for the increase in revenues.  The increase in revenues
would have been greater but for the reduction in basic rates due to the basic
rate regulations issued by the FCC in April 1993 and February 1994 with which
the Venture complied effective September 1993 and July 1994, respectively.  No
other individual factor significantly affected the increase in revenues.

         Operating expense increased $538,923, or approximately 4 percent, to
$12,878,438 in 1994 from $12,339,515 in 1993.  Operating expenses represented
58 percent of revenue in 1994, compared to 56 percent in 1993.  The increase in
operating expenses was due primarily to increases in programming fees and
advertising sales expenses.  No other individual factor significantly affected
the increase in operating expense.

         Management fees and allocated overhead from Intercable increased
$75,722, or approximately 3 percent, to $2,777,290 in 1994 from $2,701,568 in
1993 primarily due to an increase in allocated expenses from Intercable.

         Depreciation and amortization expense decreased $163,814, or
approximately 2 percent, to $9,188,994 in 1994 from $9,352,808 in 1993.  The
decrease in depreciation and amortization expense is attributable to the
maturation of the Venture's asset base.




                                      16
<PAGE>   17
         Operating loss increased $336,259, or approximately 14 percent, to
$2,661,198 in 1994 from $2,324,939 in 1993.  This increase is due to the
increase in operating expenses and management fees and allocated overhead from
Jones Intercable, Inc. exceeding the increase in revenues and the decrease in
depreciation and amortization expense.

         Operating income before depreciation and amortization expense
decreased $500,073, or approximately 7 percent, to $6,527,796 in 1994 from
$7,027,869 in 1993 due to the increases in operating expenses and management
fees and allocated overhead from Jones Intercable, Inc. exceeding the increase
in revenues.

         Interest expense increased $277,362, or approximately 11 percent, to
$2,728,034 in 1994 from $2,450,672 in 1993 due to higher effective interest
rates on interest bearing obligations.

         Net loss increased $704,279, or approximately 15 percent, to
$5,417,779 in 1994 from $4,713,500 in 1993.  The increase was primarily
attributable to the increase in operating loss and the increase in interest
expense.  These losses were primarily the result of the factors discussed
above.

FINANCIAL CONDITION

         For the twelve months ended December 31, 1995, the Venture generated
net cash from operating activities totaling $3,909,198 which is available to
fund capital expenditures and non-operating costs.  The Venture expended
approximately $3,900,000 on capital additions during 1995.  Cable television
plant extensions accounted for approximately 49 percent of these expenditures.
The construction of service drops to homes and rebuilds accounted for
approximately 19 percent and 8 percent, respectively, of the expenditures.  The
remainder of these expenditures related to various enhancements in the Broward
County System.  These capital expenditures were funded from cash generated from
operations.  The Venture plans to expend approximately $4,200,000 for capital
additions in 1996.  Of this total, approximately 37 percent will relate to the
construction of service drops to homes and approximately 36 percent is for
cable television plant extensions.  The remainder of the anticipated
expenditures are for various enhancements in the Broward County System. These
capital expenditures are expected to be funded from cash on hand, cash
generated from operations and, in its discretion, advances from the General
Partner.

         The balance outstanding on the Venture's term loan at December 31,
1995 was $40,365,468.  The term loan is payable in quarterly installments which
began March 31, 1993 and is payable in full by December 31, 1999.  Installments
paid during 1995 totaled $1,755,000.  Installments due during 1996 total
$3,510,000.  Funding for these installments is expected to come from cash on
hand, cash generated from operations and, in its discretion, advances from 
Intercable.  Interest is at the Venture's option of Prime plus 1/4 percent, 
the London Interbank Offered Rate plus 1-1/4 percent or the Certificate of 
Deposit rate plus 1-3/8 percent.  The effective interest rate on amounts 
outstanding as of December 31, 1995 and 1994 was 7.17 percent for both periods.

         Because the Venture's credit facility is now a term loan, the Venture
will rely on cash generated from operations and, in its discretion, advances
from the General Partner for its liquidity needs until its credit facility is
amended.

REGULATION AND LEGISLATION

         The Telecommunications Act of 1996 (the "1996 Act"), which became law
on February 8, 1996, substantially revised the Communications Act of 1934, as
amended, including the 1984 Cable Act and the 1992 Cable Act, and has been
described as one of the most significant changes in communications regulation
since the original Communications Act of 1934.  The 1996 Act is intended, in
part, to promote substantial competition in the telephone local exchange and in
the delivery of video and other services.  As a result of the 1996 Act, local
telephone companies (also known as local exchange carriers or "LECs") and other
service providers are permitted to provide video programming, and cable
television operators are permitted entry into the telephone local exchange
market.  The FCC is required to conduct rulemaking proceedings over the next
several months to implement various provisions of the 1996 Act.

         Among other provisions, the 1996 Act modified the 1992 Cable Act by
deregulating the cable programming service tier of large cable operators
including the Venture effective March 31, 1999 and the cable programming
service tier of "small" cable operators in systems providing service to 50,000
or fewer subscribers effective immediately.  The 1996 Act also revised the
procedures for filing cable programming service tier rate complaints and adds a
new effective competition test.




                                      17
<PAGE>   18
         It is premature to predict the specific effects of the 1996 Act on the
cable industry in general or the Venture in particular.  The FCC will be
undertaking numerous rulemaking proceedings to interpret and implement the 1996
Act.  It is not possible at this time to predict the outcome of those
proceedings or their effect on the Venture.  See Item 1.




                                      18
<PAGE>   19
Item 8.  Financial Statements


                          CABLE TV FUND 14-A, LTD. AND
                          CABLE TV FUND 14-A/B VENTURE

                              FINANCIAL STATEMENTS

                        AS OF DECEMBER 31, 1995 AND 1994

                                     INDEX


<TABLE>
<CAPTION>
                                                                                                Page                
                                                                                         -----------------

                                                                                          14-A      14-A/B
                                                                                          ----      ------
         <S>                                                                              <C>       <C>
         Report of Independent Public Accountants                                           20        31

         Balance Sheets                                                                     21        32

         Statements of Operations                                                           23        34

         Statements of Partners' Capital (Deficit)                                          24        35

         Statements of Cash Flows                                                           25        36

         Notes to Financial Statements                                                      26        37
</TABLE>


                                      19
<PAGE>   20





                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


To the Partners of Cable TV Fund 14-A, Ltd.:

         We have audited the accompanying balance sheets of CABLE TV FUND 14-A,
LTD. (a Colorado limited partnership) as of December 31, 1995 and 1994, and the
related statements of operations, partners' capital (deficit) and cash flows
for each of the three years in the period ended December 31, 1995.  These
financial statements are the responsibility of the General Partner's
management.  Our responsibility is to express an opinion on these financial
statements based on our audits.

         We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

         In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Cable TV Fund 14-A,
Ltd. as of December 31, 1995 and 1994, and the results of its operations and
its cash flows for each of the three years in the period ended December 31,
1995, in conformity with generally accepted accounting principles.



                                        /s/ ARTHUR ANDERSEN LLP
                                        ARTHUR ANDERSEN LLP


Denver, Colorado,
  April 1, 1996.




                                      20
<PAGE>   21
                            CABLE TV FUND 14-A, LTD.
                            (A Limited Partnership)

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                             December 31,             
                                                                                 ------------------------------------
                 ASSETS                                                              1995                   1994       
                 ------                                                          -------------         --------------
<S>                                                                              <C>                    <C>
CASH                                                                             $     293,179          $     426,979

TRADE RECEIVABLES, less allowance for doubtful receivables of
    $75,209 and $74,176 at December 31, 1995 and 1994, respectively                  1,328,715              1,070,581

INVESTMENT IN CABLE TELEVISION PROPERTIES:
    Property, plant and equipment, at cost                                         128,171,454            117,434,221
    Less- accumulated depreciation                                                 (67,771,303)           (57,090,363)
                                                                                 -------------          ------------- 

                                                                                   60,400,151              60,343,858
    Franchise costs, net of accumulated amortization of $25,328,423 and
        $22,417,029 at December 31, 1995 and 1994, respectively                      8,810,239             11,721,633
    Subscriber lists, net of accumulated amortization of $8,984,086 and
        $8,390,402 at December 31, 1995 and 1994, respectively                         672,264              1,265,948
    Costs in excess of interests in net assets purchased, net of accumulated
        amortization of  $892,784 and $776,420 at December 31, 1995
        and 1994, respectively                                                       5,900,474              6,016,838
    Investment in cable television joint venture                                     4,779,072              5,883,075
                                                                                 -------------          -------------

                 Total investment in cable television properties                    80,562,200             85,231,352

DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES                                        716,744                827,434
                                                                                 -------------          -------------

                 Total assets                                                    $  82,900,838          $  87,556,346
                                                                                 =============          =============
</TABLE>


                 The accompanying notes to financial statements
                 are an integral part of these balance sheets.


                                      21
<PAGE>   22
                            CABLE TV FUND 14-A, LTD.
                            (A Limited Partnership)

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                               December 31,          
                                                                                     ---------------------------------
                LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)                              1995                 1994     
                                                                                     ------------         ------------
<S>                                                                                  <C>                  <C>
LIABILITIES:
    Debt                                                                             $ 80,726,793         $ 77,425,047
    Accounts payable-
        Trade                                                                              57,598              165,894
        General Partner                                                                   887,215              706,579
    Accrued liabilities                                                                 2,717,040            2,238,657
    Subscriber prepayments                                                                133,035              104,845
                                                                                     ------------         ------------   

                 Total liabilities                                                     84,521,681           80,641,022
                                                                                     ------------          -----------
COMMITMENTS AND CONTINGENCIES (Note 7)

PARTNERS' CAPITAL (DEFICIT):
    General Partner-
        Contributed capital                                                                 1,000                1,000
        Accumulated deficit                                                              (703,440)            (618,078)
                                                                                     ------------         ------------   
                                                                                         (702,440)            (617,078)
                                                                                     ------------         ------------   
    Limited Partners-
        Net contributed capital (160,000 units outstanding at
            December 31, 1995 and 1994)                                                68,722,000           68,722,000
        Accumulated deficit                                                           (69,640,403)         (61,189,598)
                                                                                     ------------         ------------   
                                                                                         (918,403)           7,532,402
                                                                                     ------------         ------------

                 Total liabilities and partners' capital (deficit)                   $ 82,900,838         $ 87,556,346
                                                                                     ============         ============
</TABLE>


                 The accompanying notes to financial statements
                 are an integral part of these balance sheets.


                                      22
<PAGE>   23
                            CABLE TV FUND 14-A, LTD.
                            (A Limited Partnership)

                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                                                                     Year Ended December 31,          
                                                                     -----------------------------------------------------
                                                                         1995                  1994               1993 
                                                                     -----------            -----------        -----------
<S>                                                                  <C>                     <C>                <C>
REVENUES                                                             $44,094,802            $40,442,268        $38,916,469

COSTS AND EXPENSES:
    Operating expenses                                                25,719,534             23,811,465         22,598,241
    Management fees and allocated overhead from
        General Partner                                                5,375,657              5,127,553          4,683,355
    Depreciation and amortization                                     14,459,479             14,826,256         15,197,677
                                                                     -----------            -----------        -----------

OPERATING LOSS                                                        (1,459,868)            (3,323,006)        (3,562,804)
                                                                     -----------            -----------        -----------

OTHER INCOME (EXPENSE):
    Interest expense                                                  (6,001,497)            (4,498,227)        (3,726,237)
    Other, net                                                            29,201               (183,459)           (41,716)
                                                                     -----------            -----------        -----------      

         Total other income (expense)                                 (5,972,296)            (4,681,686)        (3,767,953)
                                                                     -----------            -----------        -----------
LOSS BEFORE EQUITY IN NET LOSS OF
    CABLE TELEVISION JOINT VENTURE                                    (7,432,164)            (8,004,692)        (7,330,757)

EQUITY IN NET LOSS OF CABLE TELEVISION
    JOINT VENTURE                                                     (1,104,003)            (1,468,218)        (1,277,358)
                                                                     -----------            -----------        ----------- 

NET LOSS                                                             $(8,536,167)           $(9,472,910)       $(8,608,115)
                                                                     ===========            ===========        =========== 

ALLOCATION OF NET LOSS:
    General Partner                                                  $   (85,362)           $   (94,729)       $   (86,081)
                                                                     ===========            ===========        ===========
    Limited Partners                                                 $(8,450,805)           $(9,378,181)       $(8,522,034)
                                                                     ===========            ===========        =========== 


NET LOSS PER LIMITED PARTNERSHIP UNIT                                $    (52.82)           $    (58.61)        $    (53.26)
                                                                     ===========            ===========         ===========

WEIGHTED AVERAGE NUMBER OF LIMITED
  PARTNERSHIP UNITS OUTSTANDING                                          160,000                160,000             160,000
                                                                     ===========            ===========         ===========
</TABLE>


                 The accompanying notes to financial statements
                   are an integral part of these statements.


                                      23
<PAGE>   24
                            CABLE TV FUND 14-A, LTD.
                            (A Limited Partnership)

                   STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)


<TABLE>
<CAPTION>
                                                                                   Year Ended December 31,          
                                                                    -------------------------------------------------------
                                                                        1995                 1994                  1993 
                                                                    -----------          ------------          ------------
<S>                                                                 <C>                  <C>                   <C>
GENERAL PARTNER:
    Balance, beginning of year                                      $  (617,078)         $   (522,349)         $   (436,268)
    Net loss for year                                                   (85,362)              (94,729)              (86,081)
                                                                    ------------         ------------          ------------ 

    Balance, end of year                                            $  (702,440)         $   (617,078)         $   (522,349)
                                                                    ===========          ============          ============ 


LIMITED PARTNERS:
    Balance, beginning of year                                      $ 7,532,402          $ 16,910,583          $ 25,432,617
    Net loss for year                                                (8,450,805)           (9,378,181)           (8,522,034)
                                                                    -----------          ------------          ------------

    Balance, end of year                                            $  (918,403)         $  7,532,402          $ 16,910,583
                                                                   ============          ============          ============
</TABLE>


                 The accompanying notes to financial statements
                   are an integral part of these statements.


                                      24
<PAGE>   25
                            CABLE TV FUND 14-A, LTD.
                            (A Limited Partnership)

                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                                    Year Ended December 31,          
                                                                    ------------------------------------------------------
                                                                         1995                1994                 1993 
                                                                    ------------         ------------         ------------
<S>                                                                 <C>                  <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                        $ (8,536,167)        $ (9,472,910)        $ (8,608,115)
      Adjustments to reconcile net loss to net cash provided
          by operating activities:
              Depreciation and amortization                           14,459,479           14,826,256           15,197,677
              Equity in net loss of cable television joint venture     1,104,003            1,468,218            1,277,358
              Amortization of interest rate protection contract           16,667               16,668               60,031
              Increase in trade receivables                             (258,134)            (132,111)            (115,166)
              Increase in deposits, prepaid expenses
                  and deferred charges                                   (63,074)            (699,666)             (17,764)
              Increase in trade accounts payable, accrued
                  liabilities and subscriber prepayments                 398,277              451,507               89,387
              Increase (decrease) in advances from General Partner       180,636              647,605             (398,380)
                                                                    ------------         ------------         ------------ 

                 Net cash provided by operating activities             7,301,687            7,105,567            7,485,028
                                                                    ------------         ------------         ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property and equipment, net                          (10,737,233)          (8,978,588)          (7,007,208)
                                                                    ------------         ------------         ------------ 

                 Net cash used in investing activities               (10,737,233)          (8,978,588)          (7,007,208)
                                                                    ------------         ------------         ------------ 

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from borrowings                                           3,546,885           77,661,002              116,518
    Repayment of debt                                                   (245,139)         (75,837,784)          (3,900,963)
    Purchase of interest rate protection contract                             -                    -               (50,000)
                                                                    ------------         ------------         ------------ 

                 Net cash provided by (used in)
                   financing activities                                3,301,746            1,823,218           (3,834,445)
                                                                    ------------         ------------         ------------ 

Decrease in cash                                                        (133,800)             (49,803)          (3,356,625)

Cash, beginning of year                                                  426,979              476,782            3,833,407
                                                                    ------------         ------------         ------------

Cash, end of year                                                   $    293,179         $    426,979         $    476,782
                                                                    ============         ============         ============

SUPPLEMENTAL CASH FLOW DISCLOSURE:
    Interest paid                                                   $  5,740,361         $  4,339,995         $  3,900,545   
                                                                    ============         ============         ============
</TABLE>


                 The accompanying notes to financial statements
                   are an integral part of these statements.


                                      25
<PAGE>   26
                            CABLE TV FUND 14-A, LTD.
                            (A Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS


(1)      ORGANIZATION AND PARTNERS' INTERESTS

         Formation and Business

         Cable TV Fund 14-A, Ltd. (the "Partnership"), a Colorado limited
partnership, was formed on February 6, l987, under a public program sponsored
by Jones Intercable, Inc. ("Intercable"), a publicly held Colorado corporation.
The Partnership was formed to acquire, construct, develop and operate cable
television systems.  Intercable is the "General Partner" and manager of the
Partnership.  Intercable and its subsidiaries also own and operate cable
television systems.  In addition, Intercable manages cable television systems
for other limited partnerships for which it is general partner and, also, for
other affiliated entities.

         On January 8, 1988, the Partnership and Cable TV Fund 14-B, Ltd.
formed Cable TV Fund 14-A/B Venture (the "Venture"), to acquire the cable
television system serving areas in and around Broward County, Florida.  The
Partnership contributed $18,975,000 to the capital of the Venture for 27
percent ownership interest and Cable TV Fund 14-B, Ltd.  contributed
$51,025,000 to the capital of the Venture for 73 percent ownership interest.

         Contributed Capital, Commissions and Syndication Costs

         The capitalization of the Partnership is set forth in the accompanying
statements of partners' capital (deficit).  No limited partner is obligated to
make any additional contribution to partnership capital.

         Intercable purchased its interest in the Partnership by contributing
$1,000 to partnership capital.

         All profits and losses of the Partnership are allocated 99 percent to
the limited partners and 1 percent to Intercable, except for income or gain
from the sale or disposition of cable television properties, which will be
allocated to the partners based upon the formula set forth in the Partnership's
agreement and interest income earned prior to the first acquisition by the
Partnership of a cable television system, which was allocated 100 percent to
the limited partners.

         Cable Television System Acquisitions and Formation of the Venture

         The Partnership acquired the cable television systems serving certain
areas in and around the communities of Turnersville, New Jersey; Buffalo,
Minnesota; Naperville, Illinois; and Calvert County, Maryland in 1987.  In
1991, the Partnership purchased additional cable television systems serving
certain communities in central Illinois (the "Central Illinois System").

         The Partnership allocated the total contract purchase price of cable
television systems acquired as follows: first, to the fair value of net
tangible assets acquired; second, to the value of subscriber lists and a
noncompete agreement with previous owners; third, to franchise costs; and
fourth, to costs in excess of interests in net assets purchased.  Other system
acquisition costs were capitalized and charged to distribution systems, except
for the Central Illinois System which were charged to intangible assets.

         Proposed Cable Television System Sales

In March 1996, the Partnership entered into an agreement to sell the
Turnersville System to an unaffiliated party for a sales price totaling
approximately $84,500,000, subject to closing adjustments that potentially
could reduce the sales price to $80,500,000.  Closing of this sale is expected
to occur in the second half of 1996.  Upon the consummation of the proposed
sale of the Turnersville System, the Partnership will make a distribution of at
least $20,000,000 of the net sales proceeds to its limited partners, repay any
amounts due to the General Partner and, as required under the terms of the
Partnership's credit facility, the balance will be used to repay a portion of
the Partnership's bank indebtedness.  Because this distribution will not return
125 percent of the amount initially contributed to the Partnership by the
limited partners, the General Partner will not receive a distribution on the
sale of the Turnersville System.  The Jones Group, Ltd., a subsidiary of the
General Partner, will receive a brokerage fee of 2.5 percent of the sales price
for acting as a broker in this transaction.  Because the Turnersville System
does not represent a sale of all or substantially all of the Partnership's
assets, no vote of the limited partners of the Partnership is required to
approve this sale.



                                      26
<PAGE>   27
(2)      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Accounting Records

         The accompanying financial statements have been prepared on the
accrual basis of accounting in accordance with generally accepted accounting
principles.  The Partnership's tax returns are also prepared on the accrual
basis.

         The preparation of financial statements in conformity with generally
accepted accounting principles requires the General Partner's management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from those estimates.

         Investment in Cable Television Joint Venture

         In addition to its wholly owned systems, the Partnership owns a 27
percent interest in the Venture through a capital contribution made in March
1988 of $18,975,000.  The Venture acquired the Broward County System in March
1988.  The Venture incurred losses of $4,073,811, $5,417,779 and $4,713,500 in
1995, 1994 and 1993, respectively, of which $1,104,003, $1,468,218 and
$1,277,358, respectively, was allocated to the Partnership.  The investment is
accounted for on the equity method.  The operations of the Venture are
significant to the Partnership and should be reviewed in conjunction with these
financial statements.  Reference is made to the accompanying financial
statements of the Venture on pages 32 to 40.

         Property, Plant and Equipment

         Depreciation of property, plant and equipment is provided primarily
using the straight-line method over the following estimated service lives:

<TABLE>
                          <S>                                                     <C>   
                          Cable distribution systems                               5 - 15 years
                          Equipment and tools                                      3 -  5 years
                          Office furniture and equipment                                5 years
                          Buildings                                               10 - 20 years
                          Vehicles                                                      3 years
</TABLE>

         Replacements, renewals and improvements are capitalized and
maintenance and repairs are charged to expense as incurred.

         Intangible Assets

         Costs assigned to intangible assets are being amortized using the
straight-line method over the following remaining estimated useful lives:

<TABLE>
                          <S>                                                     <C>  
                          Franchise costs                                          1 -  4 years
                          Subscriber lists                                              4 years
                          Costs in excess of interests in net assets purchased    31 - 36 years
</TABLE>

         Revenue Recognition

         Subscriber prepayments are initially deferred and recognized as
revenue when earned.

         Reclassification

         Certain prior year amounts have been reclassified to conform to the
1995 presentation.

(3)      TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES

         Management Fees, Distribution Ratios and Reimbursements

         Intercable manages the Partnership and receives a fee for its services
equal to 5 percent of the gross revenues of the Partnership, excluding revenues
from the sale of cable television systems or franchises.  Management fees paid
to Intercable by the Partnership for the years ended December 31, 1995, 1994,
and 1993 (exclusive of the Partnership's 27 percent interest in the Venture)
were $2,204,740, $2,022,113 and $1,945,823, respectively.




                                      27
<PAGE>   28
         Any distributions made from cash flow (defined as cash receipts
derived from routine operations, less debt principal and interest payments and
cash expenses) are allocated 99 percent to the limited partners and 1 percent
to Intercable.  Any distributions other than interest income on limited partner
subscriptions earned prior to the acquisition of the Partnership's first cable
television system or from cash flow, such as from the sale or refinancing of a
system or upon dissolution of the Partnership, will be made as follows:  first,
to the limited partners in an amount which, together with all prior
distributions, will equal 125 percent of the amount initially contributed to
the Partnership capital by the limited partners; the balance, 75 percent to the
limited partners and 25 percent to Intercable.

         The Partnership reimburses Intercable for certain allocated overhead
and administrative expenses.  These expenses represent the salaries and
benefits paid to corporate personnel, rent, data processing services and other
corporate related facilities costs.  Such personnel provide engineering,
marketing, administrative, accounting, legal and investor relations services to
the Partnership.  Allocations of personnel costs are based primarily on actual
time spent by employees of Intercable with respect to each partnership managed.
Remaining expenses are allocated based on the pro rata relationship of the
Partnership's revenues to the total revenues of all systems owned or managed by
Intercable and certain of its subsidiaries.  Systems owned by Intercable and
all other systems owned by partnerships for which Intercable is the general 
partner are also allocated a proportionate share of these expenses. Intercable 
believes that the methodology used in allocating overhead and administrative 
expenses is reasonable.  Reimbursements made to Intercable by the Partnership 
for allocated overhead and administrative expenses (exclusive of the 
Partnership's 27 percent interest in the Venture) were $3,170,917, $3,105,440 
and $2,737,532 in 1995, 1994 and 1993, respectively.

         The Partnership was charged interest during 1995 at an average
interest rate of 10.5 percent on the amounts due Intercable, which approximated
Intercable's weighted average cost of borrowing.  Total interest charged to the
Partnership by Intercable was $23,107, $43,708 and $1,029 for the years ended
December 31, 1995, 1994 and 1993, respectively.

         Payments to/from Affiliates for Programming Services

         The Partnership receives programming from Superaudio, Mind Extension
University, Jones Computer Network and Product Information Network, all of
which are affiliates of Intercable.

         Payments to Superaudio totaled $54,644, $51,858 and $50,655 in 1995,
1994 and 1993, respectively.  Payments to Mind Extension University totaled
$61,431, $51,389 and $32,659 in 1995, 1994 and 1993, respectively.  Payments to
Jones Computer Network, which initiated service in 1994, totaled $65,248 and
$21,344 in 1995 and 1994, respectively.

         The Partnership receives a commission from Product Information Network
based on a percentage of advertising revenue and number of subscribers.
Product Information Network, which initiated service in 1994, paid commissions
to the Partnership totaling $77,790 and $42,223 in 1995 and 1994, respectively.

(4)      PROPERTY, PLANT AND EQUIPMENT

         Property, plant and equipment as of December 31, 1995 and 1994,
consisted of the following:


<TABLE>
<CAPTION>
                                                                                      December 31,            
                                                                           ---------------------------------
                                                                                1995                1994      
                                                                           -------------       -------------
         <S>                                                               <C>                 <C>
         Cable distribution systems                                        $ 116,916,533       $ 107,439,862
         Equipment and tools                                                   4,130,430           3,601,207
         Office furniture and equipment                                        1,644,051           1,471,959
         Buildings                                                             2,393,755           2,339,942
         Vehicles                                                              2,698,904           2,193,470
         Land                                                                    387,781             387,781
                                                                           -------------       -------------

                                                                             128,171,454         117,434,221
         Less - accumulated depreciation                                     (67,771,303)        (57,090,363)
                                                                           -------------       ------------- 

                                                                           $  60,400,151       $  60,343,858
                                                                           =============       =============
</TABLE>


                                      28
<PAGE>   29
(5)      DEBT

         Debt consists of the following: 

<TABLE>
<CAPTION>
                                                                                         December 31,           
                                                                             ---------------------------------------
                                                                                 1995                      1994      
                                                                            -------------             --------------
         <S>                                                                <C>                       <C>
         Lending institutions-
             Revolving credit and term loan                                  $ 80,000,000               $ 76,900,000
         Capital lease obligations                                                726,793                    525,047
                                                                             ------------               ------------

                                                                             $ 80,726,793               $ 77,425,047
                                                                             ============               ============
</TABLE>

         During July 1994, the Partnership entered into an $80,000,000
revolving credit facility.  At December 31, 1995, $80,000,000 was outstanding
under this agreement.  The revolving credit facility converts to a term loan on
September 30, 1996, at which time the then-outstanding balance is payable in
quarterly installments through March 31, 2002.  Payments due during 1996 total
$2,000,000 and will be funded from cash on hand, cash generated from operations
and proceeds from the sale of the Turnersville System.  Interest on the
outstanding principal balance is at the Partnership's option of the Prime rate
plus 1/4 percent or the Certificate of Deposit rate plus 1-3/8 percent or the 
London Interbank Offered Rate plus 1-1/4 percent.

         On January 12, 1993, the Partnership entered into an interest rate cap
agreement covering outstanding debt obligations of $5,000,000.  The Partnership
paid a fee of $50,000 for this coverage.  The agreement expired in January
1996.  The agreement protected the Partnership from LIBOR interest rates that
exceeded 7 percent for three years from the date of the agreement.  The fee was
charged to interest expense over the life of this agreement using the straight-
line method.

         Installments due on debt principal for each of the five years in the
period ending December 31, 2000, and thereafter, respectively, are: $2,218,038,
$4,218,038, $10,218,038, $14,072,679, $18,000,000 and $32,000,000.  At December
31, 1995, substantially all of the Partnership's property, plant and equipment
secured the above indebtedness.

         At December 31, 1995, the carrying amount of the Partnership's
long-term debt did not differ significantly from the estimated fair value of
the financial instruments.  The fair value of the Partnership's long-term debt
is estimated based on the discounted amount of future debt service payments
using rates of borrowing for a liability of similar risk.

(6)      INCOME TAXES

         Income taxes have not been recorded in the accompanying financial
statements because they accrue directly to the partners.  The federal and state
income tax returns of the Partnership are prepared and filed by the General
Partner.

         The Partnership's tax returns, the qualification of the Partnership as
such for tax purposes, and the amount of distributable partnership income or
loss are subject to examination by federal and state taxing authorities.  If
such examinations result in changes with respect to the Partnership's
qualification as such, or in changes with respect to the Partnership's recorded
income or loss, the tax liability of the general and limited partners would
likely be changed accordingly.

         Taxable loss reported to the partners is different from that reported
in the statements of operations due to the difference in depreciation
recognized under generally accepted accounting principles and the expense
allowed for tax purposes under the Modified Accelerated Cost Recovery System
(MACRS).  There are no other significant differences between taxable loss and
the net loss reported in the statements of operations.

(7)      COMMITMENTS AND CONTINGENCIES

         The Partnership has filed cost-of-service showings in response to
rulemakings concerning the 1992 Cable Act for its Turnersville, New Jersey;
Buffalo, Minnesota; Naperville, Illinois and Calvert County, Maryland systems
and thus anticipates no further reductions in rates in these systems.  The
cost-of-service showings have not yet received final approvals from regulatory
authorities, however, and there can be no assurance that the Partnership's
cost-of-service showings will prevent further rate reductions in these systems
until such final approvals are received.


                                      29
<PAGE>   30
         The Partnership rents office and other facilities under various
long-term lease arrangements.  Rent paid under such lease arrangements totaled
$242,084, $233,251 and $250,526, respectively, for the years ended December 31,
1995, 1994 and 1993.  Minimum commitments under operating leases for the five
years in the period ending December 31, 2000, and thereafter are as follows:

<TABLE>
                 <S>                       <C>
                 1996                      $289,262
                 1997                       278,794
                 1998                       234,884
                 1999                       146,506
                 2000                         9,000
                 Thereafter                   3,000
                                           --------

                                           $961,446
                                           ========
</TABLE>

 (8)     SUPPLEMENTARY PROFIT AND LOSS INFORMATION

         Supplementary profit and loss information is presented below:

<TABLE>
<CAPTION>
                                                                                Year Ended December 31,              
                                                                    ----------------------------------------------
                                                                         1995             1994             1993    
                                                                    ------------      ----------      ------------
                 <S>                                                <C>               <C>             <C>
                 Maintenance and repairs                            $    761,244      $  754,314      $    840,307
                                                                    ============      ==========      ============

                 Taxes, other than income and payroll taxes         $    213,244      $  162,029      $    155,727
                                                                    ============      ==========      ============

                 Advertising                                        $    694,205      $  688,611      $    621,377
                                                                    ============      ==========      ============

                 Depreciation of property, plant and equipment      $ 10,706,143      $9,957,440      $ 10,131,923
                                                                    ============      ==========       ===========

                 Amortization of intangible assets                  $  3,753,336      $4,868,816      $  5,065,754
                                                                    ============      ==========      ============
</TABLE>


                                      30
<PAGE>   31
                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Partners of Cable TV Fund 14-A/B Venture:

         We have audited the accompanying balance sheets of CABLE TV FUND
14-A/B VENTURE (a Colorado general partnership) as of December 31, 1995 and
1994, and the related statements of operations, partners' capital and cash
flows for each of the three years in the period ended December 31, 1995.  These
financial statements are the responsibility of the General Partners'
management.  Our responsibility is to express an opinion on these financial
statements based on our audits.

         We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

         In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Cable TV Fund
14-A/B Venture as of December 31, 1995 and 1994, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 1995, in conformity with generally accepted accounting principles.



                                                  /s/ ARTHUR ANDERSEN LLP
                                                      ARTHUR ANDERSEN LLP


Denver, Colorado,
  April 1, 1996.



                                      31
<PAGE>   32
                          CABLE TV FUND 14-A/B VENTURE
                            (A General Partnership)

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                              December 31,             
                                                                                    ---------------------------------
                 ASSETS                                                                  1995                1994      
                 ------                                                             -------------       -------------
<S>                                                                                 <C>                 <C>
CASH                                                                                $     371,870       $     254,974

TRADE RECEIVABLES, less allowance for doubtful receivables of
    $102,006 and $95,444 at December 31, 1995 and 1994, respectively                    1,093,967             601,185

INVESTMENT IN CABLE TELEVISION PROPERTIES:
    Property, plant and equipment, at cost                                             52,012,981          48,109,168
    Less- accumulated depreciation                                                    (24,307,885)        (20,972,255)
                                                                                    -------------       ------------- 

                                                                                       27,705,096          27,136,913

    Franchise costs, net of accumulated amortization of $34,427,136 and
        $30,414,475 at December 31, 1995 and 1994, respectively                        13,215,364          17,228,025
    Subscriber lists, net of accumulated amortization of $9,461,332 and
        $8,745,434 at December 31, 1995 and 1994, respectively                          2,259,068           2,974,966
    Costs in excess of interests in net assets purchased, net of accumulated
        amortization of $4,189,656 and $3,649,056 at December 31, 1995
        and 1994, respectively                                                         17,434,410          17,975,010
                                                                                    -------------       -------------

                 Total investment in cable television properties                       60,613,938          65,314,914

DEPOSITS, PREPAID EXPENSES AND DEFERRED CHARGES                                           367,781             426,387
                                                                                    -------------       -------------

                 Total assets                                                       $  62,447,556       $  66,597,460
                                                                                    =============       =============
</TABLE>


                 The accompanying notes to financial statements
                 are an integral part of these balance sheets.


                                      32
<PAGE>   33
                          CABLE TV FUND 14-A/B VENTURE
                            (A General Partnership)

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                                December 31,           
                                                                                      -------------------------------
                 LIABILITIES AND PARTNERS' CAPITAL                                        1995               1994      
                 ---------------------------------                                    ------------       ------------
<S>                                                                                   <C>                <C>
LIABILITIES:
    Debt                                                                              $ 40,530,652       $ 42,271,921
    Accounts payable-
        Trade                                                                               12,901             60,525
        Jones Intercable, Inc.                                                           2,206,959            354,179
    Accrued liabilities                                                                  1,209,112          1,350,465
    Subscriber prepayments                                                                 497,780            496,407
                                                                                      ------------       ------------

                 Total liabilities                                                      44,457,404         44,533,497
                                                                                      ------------       ------------

COMMITMENTS AND CONTINGENCIES (Note 7)

PARTNERS' CAPITAL:
    Contributed capital                                                                 70,000,000         70,000,000
    Accumulated deficit                                                                (52,009,848)       (47,936,037)
                                                                                      ------------       ------------ 

                                                                                        17,990,152         22,063,963
                                                                                      ------------       ------------

                 Total liabilities and partners' capital                              $ 62,447,556       $ 66,597,460
                                                                                      ============       ============
</TABLE>


                 The accompanying notes to financial statements
                 are an integral part of these balance sheets.


                                      33
<PAGE>   34
                          CABLE TV FUND 14-A/B VENTURE
                            (A General Partnership)

                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                                                                    Year Ended December 31,          
                                                                      ----------------------------------------------------
                                                                          1995                1994                1993 
                                                                      -----------          -----------         -----------
<S>                                                                   <C>                  <C>                 <C>
REVENUES                                                              $23,469,505          $22,183,524         $22,068,952

COSTS AND EXPENSES:
    Operating expenses                                                 12,620,209           12,878,438          12,339,515
    Management fees and allocated overhead from
        Jones Intercable, Inc.                                          2,828,211            2,777,290           2,701,568
    Depreciation and amortization                                       8,774,507            9,188,994           9,352,808
                                                                      -----------          -----------         -----------

OPERATING LOSS                                                           (753,422)          (2,661,198)         (2,324,939)
                                                                      -----------          -----------         -----------  

OTHER INCOME (EXPENSE):
    Interest expense                                                   (3,371,524)          (2,728,034)         (2,450,672)
    Other, net                                                             51,135              (28,547)             62,111
                                                                      -----------          -----------         -----------

         Total other income (expense)                                  (3,320,389)          (2,756,581)         (2,388,561)
                                                                      -----------          -----------         ----------- 

NET LOSS                                                              $(4,073,811)         $(5,417,779)        $(4,713,500)
                                                                      ===========          ===========         =========== 
</TABLE>


                 The accompanying notes to financial statements
                   are an integral part of these statements.


                                      34
<PAGE>   35
                          CABLE TV FUND 14-A/B VENTURE
                            (A General Partnership)

                        STATEMENTS OF PARTNERS' CAPITAL


<TABLE>
<CAPTION>
                                                                                    Year Ended December 31,          
                                                                     ----------------------------------------------------
                                                                         1995                 1994               1993 
                                                                     -----------          ------------       ------------
<S>                                                                  <C>                   <C>               <C>
CABLE TV FUND 14-A, LTD. (27%):
    Balance, beginning of year                                       $ 5,883,075           $ 7,351,293        $ 8,628,651
    Net loss for year                                                 (1,104,003)           (1,468,218)        (1,277,358)
                                                                     -----------           -----------        ----------- 

    Balance, end of year                                             $ 4,779,072           $ 5,883,075        $ 7,351,293
                                                                     ===========           ===========        ===========


CABLE TV FUND 14-B, LTD. (73%):
    Balance, beginning of year                                       $16,180,888           $20,130,449        $23,566,591
    Net loss for year                                                 (2,969,808)           (3,949,561)        (3,436,142)
                                                                     -----------           -----------        ----------- 

    Balance, end of year                                             $13,211,080           $16,180,888        $20,130,449
                                                                     ===========           ===========        ===========

TOTAL:
    Balance, beginning of year                                       $22,063,963           $27,481,742        $32,195,242
    Net loss for year                                                 (4,073,811)           (5,417,779)        (4,713,500)
                                                                     -----------           -----------        ----------- 

    Balance, end of year                                             $17,990,152           $22,063,963        $27,481,742
                                                                     ===========           ===========        ===========
</TABLE>


                 The accompanying notes to financial statements
                   are an integral part of these statements.


                                      35
<PAGE>   36
                          CABLE TV FUND 14-A/B VENTURE
                            (A General Partnership)

                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                                    Year Ended December 31,          
                                                                    -----------------------------------------------------
                                                                        1995                 1994                1993 
                                                                    -----------           -----------         -----------
<S>                                                                 <C>                   <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                        $(4,073,811)          $(5,417,779)        $(4,713,500)
    Adjustments to reconcile net loss to net cash provided by
        operating activities:
           Depreciation and amortization                              8,774,507             9,188,994           9,352,808
           Amortization of interest rate protection agreement            82,085                82,080              82,080
           Decrease (increase) in trade receivables                    (492,782)              225,591            (253,001)
           Decrease  (increase) in deposits, prepaid expenses
               and deferred charges                                    (193,197)             (206,491)             13,218
           Increase (decrease) in accounts payable, accrued
               liabilities and subscriber prepayments                  (187,604)              592,973             139,815
                                                                    -----------           -----------         -----------

                 Net cash provided by operating activities            3,909,198             4,465,368           4,621,420
                                                                    -----------           -----------         -----------


CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property and equipment, net                          (3,903,813)           (3,630,545)         (3,040,155)
                                                                    -----------           -----------         ----------- 

                 Net cash used in investing activities               (3,903,813)           (3,630,545)         (3,040,155)
                                                                    -----------           -----------         ----------- 


CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from borrowings                                            108,593                71,380             159,493
    Repayment of debt                                                (1,849,862)           (1,261,189)         (3,606,172)
    Purchase of interest rate protection contract                           -                      -             (246,250)
    Increase (decrease) in advances from Jones Intercable, Inc.       1,852,780               296,259             (67,953)
                                                                     ----------           -----------         ----------- 

                 Net cash provided by (used in)
                   financing activities                                 111,511              (893,550)         (3,760,882)
                                                                     ----------           -----------         ----------- 

Increase (decrease) in cash                                             116,896               (58,727)         (2,179,617)

Cash, beginning of year                                                 254,974               313,701           2,493,318
                                                                    -----------           -----------         -----------

Cash, end of year                                                   $    371,870          $    254,974        $   313,701
                                                                    ============          ============        ===========

SUPPLEMENTAL CASH FLOW DISCLOSURE:
    Interest paid                                                   $  3,467,008          $  2,454,391        $ 2,333,869 
                                                                    ============          ============        ===========
</TABLE>


                 The accompanying notes to financial statements
                   are an integral part of these statements.


                                      36
<PAGE>   37
                          CABLE TV FUND 14-A/B VENTURE
                            (A General Partnership)

                         NOTES TO FINANCIAL STATEMENTS


(1)      ORGANIZATION AND PARTNERS' INTERESTS

         Formation and Business

         On January 8, 1988, Cable TV Fund 14-A, Ltd. and Cable TV Fund 14-B,
Ltd. (the "Venture Partners") formed a Colorado general partnership known as
Cable TV Fund 14-A/B Venture (the "Venture") by contributing $18,975,000 and
$51,025,000, respectively, for 27 percent and 73 percent ownership interests,
respectively.  The Venture was formed for the purpose of acquiring the cable
television system serving areas in and around Broward County, Florida (the
"Broward County System").

         Jones Intercable, Inc. ("Intercable"), general partner of each of the
Venture Partners, manages the Venture.  Intercable and its subsidiaries also
own and operate cable television systems.  In addition, Intercable manages
cable television systems for other limited partnerships for which it is general
partner and for other affiliated entities.

         Contributed Capital

         The capitalization of the Venture is set forth in the accompanying
statements of partners' capital.

         All Venture distributions, including those made from cash flow, from
the sale or refinancing of Venture property and on dissolution of the Venture,
shall be made to the Venture Partners in proportion to their 27 and 73 percent
interests in the Venture.

         Cable Television System Acquisition

         The Broward County System acquisition was accounted for as a purchase
with the purchase price allocated to tangible and intangible assets based upon
an independent appraisal.  The method of allocation of purchase price was as
follows:  first, to the fair value of net tangible assets acquired; second, to
the value of subscriber lists and noncompete agreements with previous owners;
third, to franchise costs; and fourth, to costs in excess of interests in net
assets purchased.  Brokerage fees paid to an affiliate of the General Partner
and other system acquisition costs were capitalized and included in the cost of
intangible assets.

(2)      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Accounting Records

         The accompanying financial statements have been prepared on the
accrual basis of accounting in accordance with generally accepted accounting
principles.  The Venture's tax returns are also prepared on the accrual basis.

         The preparation of financial statements in conformity with generally
accepted accounting principles requires the General Partner's management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from those estimates.

         Property, Plant and Equipment

         Depreciation is provided using the straight-line method over the
following estimated service lives:

<TABLE>
                          <S>                                                     <C>   
                          Cable distribution systems                               5 - 15 years
                          Equipment and tools                                           5 years
                          Office furniture and equipment                                5 years
                          Buildings                                               10 - 20 years
                          Vehicles                                                      3 years
</TABLE>

Replacements, renewals and improvements are capitalized and maintenance and 
repairs are charged to expense as incurred.




                                      37

<PAGE>   38

         Intangible Assets

         Costs assigned to franchises, subscriber lists and costs in excess of
interests in net assets purchased are amortized using the straight-line method
over the following remaining estimated useful lives:

<TABLE>
                          <S>                                                      <C>  
                          Franchise costs                                           1 - 7 years
                          Subscriber lists                                              3 years
                          Costs in excess of interests in net assets purchased         33 years
</TABLE>

         Revenue Recognition

         Subscriber prepayments are initially deferred and recognized as
revenue when earned.

(3)      TRANSACTIONS WITH AFFILIATES

         Management Fees and Reimbursements

         Intercable manages the Venture and receives a fee for its services
equal to five percent of the gross revenues of the Venture, excluding revenues
from the sale of cable television systems or franchises.  Management fees paid
to Intercable by the Venture for the years ended December 31, 1995, 1994 and
1993 were $1,173,475, $1,109,176 and $1,103,448, respectively.

         The Venture reimburses Intercable for allocated overhead and
administrative expenses.  These expenses include salaries and related benefits
paid for corporate personnel, rent, data processing services and other
corporate facilities costs.  Such personnel provide engineering, marketing,
accounting, administrative, legal, and investor relations services to the
Venture.  Allocations of personnel costs are based primarily on actual time
spent by employees of Intercable with respect to each entity managed.
Remaining expenses are allocated based on the pro rata relationship of the
Venture's revenues to the total revenues of all systems owned or managed by
Intercable and certain of its subsidiaries.  Systems owned by Intercable and
all other systems owned by partnerships for which Intercable is the general
partner are also allocated a proportionate share of these expenses.  Intercable
believes that the methodology used in allocating overhead and administrative
expenses is reasonable.  Reimbursements made to Intercable by the Venture for
allocated overhead and administrative expenses during the years ended December
31, 1995, 1994 and 1993 were $1,654,736, $1,668,114 and $1,598,120,
respectively.

         The Venture was charged interest during 1995 at an average interest
rate of 10.51 percent on the amounts due Intercable, which approximated
Intercable's weighted average cost of borrowing.  Total interest charged to the
Venture by Intercable was $155,659, $960 and $2,361 for the years ended
December 31, 1995, 1994 and 1993, respectively.

         Payments to/from Affiliates for Programming Services

         The Venture receives programming from Superaudio, Mind Extension
University, Jones Computer Network and Product Information Network, all of
which are affiliates of Intercable.

         Payments to Superaudio totaled $30,171, $30,631 and $30,018 in 1995,
1994 and 1993, respectively.  Payments to Mind Extension University totaled
$32,268, $27,751 and $17,451 in 1995, 1994 and 1993, respectively.  Payments to
Jones Computer Network, which initiated service in 1994, totaled $-0- and
$5,694 in 1995 and 1994, respectively.

         The Venture receives a commission from Product Information Network
based on a percentage of advertising revenue and number of subscribers.
Product Information Network, which initiated service in 1994, paid commissions
to the Venture totaling $23,430 and $23,856 in 1995 and 1994, respectively.




                                      38
<PAGE>   39
(4)      PROPERTY, PLANT AND EQUIPMENT

         Property, plant and equipment as of December 31, 1995 and 1994,
consisted of the following:

<TABLE>
<CAPTION>
                                                                                      December 31,              
                                                                             --------------------------------
                                                                                 1995                1994     
                                                                             ------------        ------------
         <S>                                                                 <C>                 <C>          
         Cable distribution systems                                          $ 45,655,600        $ 41,905,039
         Equipment and tools                                                    1,749,450           1,676,058
         Office furniture and equipment                                         1,150,940           1,117,198
         Buildings                                                              1,869,631           1,865,476
         Vehicles                                                                 856,493             814,530
         Land                                                                     730,867             730,867
                                                                             ------------        ------------
                                                                               52,012,981          48,109,168

         Less - accumulated depreciation                                      (24,307,885)        (20,972,255)
                                                                             ------------        ------------ 

                                                                             $ 27,705,096        $ 27,136,913
                                                                             ============        ============
</TABLE>

(5)      DEBT

         Debt consists of the following:  

<TABLE>
<CAPTION>
                                                                                      December 31,              
                                                                             --------------------------------
                                                                                 1995                1994     
                                                                             -------------       ------------
         <S>                                                                 <C>                 <C>
         Lending institutions-
             Revolving credit and term loan                                  $ 40,365,468        $ 42,120,468

         Capital lease obligations                                                165,184             151,453
                                                                             ------------        ------------

                                                                             $ 40,530,652        $ 42,271,921
                                                                             ============        ============
</TABLE>

         The balance outstanding on the Venture's term loan at December 31,
1995 was $40,365,468.  The term loan is payable in quarterly installments which
began March 31, 1993 and is payable in full by December 31, 1999.  Installments
paid during 1995 totaled $1,755,000.  Installments due during 1996 total
$3,510,000.  Funding for these installments is expected to come from cash on
hand, cash generated from operations and, in its discretion, advances from 
Intercable.  Interest is at the Venture's option of Prime plus 1/4 percent, 
the London Interbank Offered Rate ("LIBOR") plus 1-1/4 percent or the 
Certificate of Deposit rate plus 1-3/8 percent.  The effective interest rate
on amounts outstanding as of December 31, 1995 and 1994 was 7.17 percent for
both periods.

         In January 1993, the Venture entered into an interest rate cap
agreement covering outstanding debt obligations of $25,000,000.  The Venture
paid a fee of $246,250.  The agreement protected the Venture from LIBOR
interest rates that exceeded 7 percent for three years from the date of the
agreement.  The fee was being charged to interest expense over the life of the
agreement using the straight-line method.  The agreement expired in January
1996.

         Installments due on debt principal for each of the five years in the
period ending December 31, 2000 and thereafter, respectively, are: $3,559,555,
$4,729,555, $4,729,555, $27,511,987, $-0- and $-0-.  At December 31, 1995,
substantially all of the Venture's property, plant and equipment secured the
above indebtedness.

         At December 31, 1995, the carrying amount of the Venture's long-term
debt did not differ significantly from the estimated fair value of the
financial instruments.  The fair value of the Venture's long-term debt is
estimated based on the discounted amount of future debt service payments using
rates of borrowing for a liability of similar risk.

(6)      INCOME TAXES

         Income taxes have not been recorded in the accompanying financial
statements because they accrue directly to the partners of Cable TV Fund 14-A,
Ltd. and Cable TV Fund 14-B, Ltd.


                                      39
<PAGE>   40
         The Venture's tax returns, the qualification of the Venture as such
for tax purposes, and the amount of distributable Venture income or loss are
subject to examination by federal and state taxing authorities.  If such
examinations result in changes with respect to the Venture's qualification as
such, or in changes with respect to the Venture's recorded income or loss, the
tax liability of the Venture's general partners would likely be changed
accordingly.

         Taxable loss reported to the partners is different from that reported
in the statements of operations due to the difference in depreciation
recognized under generally accepted accounting principles and the expense
allowed for tax purposes under the Modified Accelerated Cost Recovery System
(MACRS).  There are no other significant differences between taxable loss and
the net loss reported in the statements of operations.

(7)      COMMITMENTS AND CONTINGENCIES

         Office and other facilities are rented under various long-term lease
arrangements.  Rent paid under such lease arrangements totaled $22,680, $49,856
and $46,521, respectively for the years ended December 31, 1995, 1994 and 1993.
Minimum commitments under operating leases for each of the five years in the
period ending December 31, 2000 and thereafter are as follows:

<TABLE>
                                  <S>                                     <C>
                                  1996                                    $32,243
                                  1997                                      6,996
                                  1998                                      1,166
                                  1999                                     -
                                  2000                                     -
                                  Thereafter                               -     
                                                                          -------

                                                                          $40,405
                                                                          =======
</TABLE>


(8)      SUPPLEMENTARY PROFIT AND LOSS INFORMATION

         Supplementary profit and loss information is presented below:

<TABLE>
<CAPTION>
                                                                                  Year Ended December 31,          
                                                                      ----------------------------------------------
                                                                          1995             1994             1993 
                                                                      ----------        ----------       -----------
                <S>                                                   <C>               <C>               <C>
                Maintenance and repairs                               $  204,878        $  238,893        $  238,163
                                                                      ==========        ==========        ==========

                Taxes, other than income and payroll taxes            $  268,757        $  258,369        $  265,331
                                                                      ==========        ==========        ==========

                Advertising                                           $  152,727        $  157,998        $   95,211
                                                                      ==========        ==========        ==========

                Depreciation of property, plant and equipment         $3,429,925        $3,315,438        $3,468,602
                                                                      ==========        ==========        ==========

                Amortization of intangible assets                     $5,344,582        $5,873,556        $5,884,206
                                                                      ==========        ==========        ==========
</TABLE>


                                      40
<PAGE>   41
            ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                       ACCOUNTING AND FINANCIAL DISCLOSURE

         None.

                                    PART III.

           ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

         The Partnership itself has no officers or directors. Certain
information concerning the directors and executive officers of the General
Partner is set forth below.

<TABLE>
<S>                          <C>   <C>
    Glenn R. Jones           66    Chairman of the Board and Chief Executive Officer
    Derek H. Burney          56    Vice Chairman of the Board
    James B. O'Brien         46    President and Director
    Ruth E. Warren           46    Group Vice President/Operations
    Kevin P. Coyle           44    Group Vice President/Finance
    Christopher J. Bowick    40    Group Vice President/Technology
    George H. Newton         61    Group Vice President/Telecommunications
    Timothy J. Burke         45    Group Vice President/Taxation/Administration
    Raymond L. Vigil         49    Group Vice President/Human Resources and Director
    Cynthia A. Winning       44    Group Vice President/Marketing
    Elizabeth M. Steele      44    Vice President/General Counsel/Secretary
    Larry W. Kaschinske      36    Controller
    Robert E. Cole           63    Director
    William E. Frenzel       67    Director
    Donald L. Jacobs         57    Director
    James J. Krejci          54    Director
    John A. MacDonald        42    Director
    Raphael M. Solot         62    Director
    Daniel E. Somers         48    Director
    Howard O. Thrall         48    Director
    Robert B. Zoellick       42    Director
</TABLE>
  

         Mr. Glenn R. Jones has served as Chairman of the Board of Directors and
Chief Executive Officer of the General Partner since its formation in 1970, and
he was President from June 1984 until April 1988. Mr. Jones is the sole
shareholder, President and Chairman of the Board of Directors of Jones
International, Ltd. He is also Chairman of the Board of Directors of the
subsidiaries of the General Partner and of certain other affiliates of the
General Partner. Mr. Jones has been involved in the cable television business in
various capacities since 1961, is a past and present member of the Board of
Directors and the Executive Committee of the National Cable Television
Association. He also is on the Executive Committee of Cable in the Classroom, an
organization dedicated to education via cable. Additionally, in March 1991, Mr.
Jones was appointed to the Board of Governors for the American Society for
Training and Development, and in November 1992 to the Board of Education Council
of the National Alliance of Business. Mr. Jones is also a founding member of the
James Madison Council of the Library of Congress. Mr. Jones is a past director
and member of the Executive Committee of C-Span. Mr. Jones has been the
recipient of several awards including the Grand Tam Award in 1989, the highest
award from the Cable Television Administration and Marketing Society; the
Chairman's Award from the Investment Partnership Association, which is an
association of sponsors of public syndications; the cable television industry's
Public Affairs Association President's Award in 1990, the Donald G. McGannon
award for the advancement of minorities and women in cable; the STAR Award from
American Women in Radio and Television, Inc. for exhibition of a commitment to
the issues and concerns of women in television and radio; the Women in Cable
Accolade in 1990 in recognition of support of this organization; the Most
Outstanding Corporate Individual Achievement award from the International
Distance Learning Conference; the Golden Plate Award 

                                       41
<PAGE>   42
from the American Academy of Achievement for his advances in distance education;
the Man of the Year named by the Denver chapter of the Achievement Rewards for
College Scientists; and in 1994 Mr. Jones was inducted into Broadcasting and
Cable's Hall of Fame.

         Mr. Derek H. Burney was appointed a Director of the General Partner on
December 20, 1994 and Vice Chairman of the Board of Directors on January 31,
1995. Mr. Burney joined BCE Inc., Canada's largest telecommunications company,
in January 1993 as Executive Vice President, International. He has been the
Chairman of Bell Canada International Inc., a subsidiary of BCE, since January
1993 and, in addition, has been Chief Executive Officer of BCI since July 1993.
Prior to joining BCE, Mr. Burney served as Canada's ambassador to the United
States from 1989 to 1992. Mr. Burney also served as chief of staff to the Prime
Minister of Canada from March 1987 to January 1989 where he was directly
involved with the negotiation of the U.S. - Canada Free Trade Agreement. In July
1993, he was named an Officer of the Order of Canada. Mr. Burney is chairman of
Bell Cablemedia plc. He is a director of Mercury Communications Limited,
Videotron Holdings plc, Tele-Direct (Publications) Inc., Teleglobe Inc., Bimcor
Inc., Maritime Telegraph and Telephone Company, Limited, Moore Corporation
Limited and Northbridge Programming Inc.

         Mr. James B. O'Brien, the General Partner's President, joined the
General Partner in January 1982. Prior to being elected President and a Director
of the General Partner in December 1989, Mr. O'Brien served as a Division
Manager, Director of Operations Planning/Assistant to the CEO, Fund Vice
President and Group Vice President/Operations. Mr. O'Brien was appointed to the
General Partner's Executive Committee in August 1993. As President, he is
responsible for the day-to-day operations of the cable television systems
managed and owned by the General Partner. Mr. O'Brien is a board member of Cable
Labs, Inc., the research arm of the U.S. cable television industry. He also
serves as a director of the Cable Television Administration and Marketing
Association and as a director of the Walter Kaitz Foundation, a foundation that
places people of ethnic minority groups in positions with cable television
systems, networks and vendor companies.

         Ms. Ruth E. Warren joined the General Partner in August 1980 and has
served in various operational capacities, including system manager and Fund Vice
President, since then. Ms. Warren was elected Group Vice President/Operations of
the General Partner in September 1990.

         Mr. Kevin P. Coyle joined The Jones Group, Ltd. in July 1981 as Vice
President/Financial Services. In September 1985, he was appointed Senior Vice
President/Financial Services. He was elected Treasurer of the General Partner in
August 1987, Vice President/Treasurer in April 1988 and Group Vice
President/Finance and Chief Financial Officer in October 1990.

         Mr. Christopher J. Bowick joined the General Partner in September 1991
as Group Vice President/Technology and Chief Technical Officer. Previous to
joining the General Partner, Mr. Bowick worked for Scientific Atlanta's
Transmission Systems Business Division in various technical management
capacities since 1981, and as Vice President of Engineering since 1989.

         Mr. George H. Newton joined the General Partner in January 1996 as
Group Vice President/Telecommunications. Prior to joining the General Partner,
Mr. Newton was President of his own consulting business, Clear Solutions, and
since 1994 Mr. Newton has served as a Senior Advisor to Bell Canada
International. From 1990 to 1993, Mr. Newton served as the founding Chief
Executive Officer and Managing Director of Clear Communications, New Zealand,
where he established an alternative telephone company in New Zealand. From 1964
to 1990, Mr. Newton held a wide variety of operational and business assignments
with Bell Canada International.

         Mr. Timothy J. Burke joined the General Partner in August 1982 as
corporate tax manager, was elected Vice President/Taxation in November 1986 and
Group Vice President/Taxation/Administration in October 1990.

         Mr. Raymond L. Vigil joined the General Partner in June 1993 as Group
Vice President/Human Resources. Previous to joining the General Partner, Mr.
Vigil served as Executive Director of Learning with


                                       42
<PAGE>   43
USWest. Prior to USWest, Mr. Vigil worked in various human resources posts over
a 14-year term with the IBM Corporation.

         Ms. Cynthia A. Winning joined the General Partner as Group Vice
President/Marketing in December 1994. Previous to joining the General Partner,
Ms. Winning served since 1994 as the President of PRS Inc., Denver, Colorado, a
sports and event marketing company. From 1979 to 1981 and from 1986 to 1994, Ms.
Winning served as the Vice President and Director of Marketing for Citicorp
Retail Services, Inc., a provider of private-label credit cards for ten national
retail department store chains. From 1981 to 1986, Ms. Winning was the Director
of Marketing Services for Daniels & Associates cable television operations, as
well as the Western Division Marketing Director for Capital Cities Cable. Ms.
Winning also serves as a board member of Cities in Schools, a dropout
intervention/prevention program.

         Ms. Elizabeth M. Steele joined the General Partner in August 1987 as
Vice President/General Counsel and Secretary. From August 1980 until joining the
General Partner, Ms. Steele was an associate and then a partner at the Denver
law firm of Davis, Graham & Stubbs, which serves as counsel to the General
Partner.

         Mr. Larry Kaschinske joined the General Partner in 1984 as a staff
accountant in the General Partner's former Wisconsin Division, was promoted to
Assistant Controller in 1990 and named Controller in August 1994.

         Mr. Robert E. Cole was appointed a Director of the General Partner in
March 1996. Mr. Cole is currently self-employed as a partner of First Variable
Insurance Marketing and is responsible for marketing to National Association of
Securities Dealers, Inc. firms in northern California, Oregon, Washington and
Alaska. From 1993 to 1995, Mr. Cole was the Director of Marketing for Lamar Life
Insurance Company; from 1992 to 1993, Mr. Cole was Senior Vice President of PMI
Inc., a third party lender serving the special needs of Corporate Owned Life
Insurance (COLI) and from 1988 to 1992, Mr. Cole was the principal and
co-founder of a specialty investment banking firm that provided services to
finance the ownership and growth of emerging companies, productive assets and
real property. Mr. Cole is a Certified Financial Planner and a former United
States Naval Aviator.

         Mr. William E. Frenzel was appointed a Director of the General Partner
on April 11, 1995. Mr. Frenzel has been a Guest Scholar since 1991 with the
Brookings Institution, a research organization located in Washington D. C. Until
his retirement in January 1991, Mr. Frenzel served for twenty years in the
United States House of Representatives, representing the State of Minnesota,
where he was a member of the House Ways and Means Committee and its Trade
Subcommittee, the Congressional Representative to the General Agreement on
Tariffs and Trade (GATT), the Ranking Minority Member on the House Budget
Committee and a member of the National Economic Commission. Mr. Frenzel also
served in the Minnesota Legislature for eight years. He is a Distinguished
Fellow of the Tax Foundation, Vice Chairman of the Eurasia Foundation, a Board
Member of the U.S.-Japan Foundation, the Close-Up Foundation, Sit Mutual Funds
and Chairman of the Japan-America Society of Washington.

         Mr. Donald L. Jacobs was appointed a Director of the General Partner on
April 11, 1995. Mr. Jacobs is a retired executive officer of TRW. Prior to his
retirement, he was Vice President and Deputy Manager of the Space and Defense
Sector; prior to that appointment, he was the Vice President and General Manager
of the Defense Systems Group and prior to his appointment as Group General
Manager, he was President of ESL, Inc., a wholly owned subsidiary of TRW. During
his career, Mr. Jacobs served on several corporate, professional and civic
boards.

         Mr. James J. Krejci was President of the International Division of
International Gaming Technology, International headquartered in Reno, Nevada,
until March 1995. Prior to joining IGT in May 1994, Mr. Krejci was Group Vice
President of Jones International, Ltd. and was Group Vice President of the
General Partner. He also served as an officer of Jones Futurex, Inc., a
subsidiary of the General Partner engaged in manufacturing and marketing data
encryption devices, Jones Interactive, Inc., a subsidiary of Jones
International, Ltd. providing computer data and billing processing facilities
and Jones Lightwave, Ltd., a company owned by Jones International, Ltd. and Mr.
Jones, and several of its subsidiaries engaged in the provision of
telecommunications


                                       43
<PAGE>   44
services until leaving the General Partner in May 1994. Mr. Krejci has been a
Director of the General Partner since August 1987.

         Mr. John A. MacDonald was appointed a Director of the General Partner
on November 8, 1995. Mr. MacDonald is Executive Vice President of Business
Development and Chief Technology Officer of Bell Canada International Inc. Prior
to joining Bell Canada in November 1994, Mr. MacDonald was President and Chief
Executive Officer of The New Brunswick Telephone Company, Limited, a post he had
held since March of that year. Prior to March 1994, Mr. MacDonald was with NBTel
for 17 years serving in various capacities, including Market Planning Manager,
Corporate Planning Manager, Manager of Systems Planning and Development and
General Manager, Chief Engineer and General Manager of Engineering and
Information Systems and Vice President of Planning. Mr. MacDonald was the former
Chairman of the New Brunswick section of the Institute of Electrical and
Electronic Engineers and also served on the Federal Government's Information
Highway Advisory Council. Mr. MacDonald is Chairman of MediaLinx Interactive
Inc. and Stentor Canadian Network Management and is presently a Governor of the
Montreal Exchange. He also serves on the Board of Directors of Tele-Direct
(Publications) Inc., Bell-Northern Research, Ltd., SRCI, Bell Sygma, Canarie
Inc., and is a member of the University of New Brunswick Venture Campaign
Cabinet.

         Mr. Raphael M. Solot was appointed a Director of the General Partner in
March 1996. Mr. Solot is an attorney licensed to practice law in the State of
Colorado. Mr. Solot has practiced law in the State of Colorado as a sole
practitioner since obtaining his Juris Doctor degree from the University of
Colorado in 1964.

         Mr. Daniel E. Somers was initially appointed a Director of the General
Partner on December 20, 1994. Mr. Somers resigned as a Director on December 31,
1995, at the time he was elected Chief Executive Officer of Bell Cablemedia. Mr.
Somers was reinstated as a Director of the General Partner on February 2, 1996.
From January 1992 to January 1995, Mr. Somers worked as senior Vice President
and Chief Financial Officer of Bell Canada International Inc. and was appointed
Executive Vice President and Chief Financial Officer on February 1, 1995. He is
also a Director of certain of its affiliates. Mr. Somers currently serves as
Chief Executive Officer of Bell Cablemedia. Prior to joining Bell Canada
International Inc. and since January 1989, Mr. Somers was the President and
Chief Executive Officer of Radio Atlantic Holdings Limited. Mr. Somers is a
member of the North American Society of Corporate Planning, the Financial
Executives Institution and the Financial Analysts Federation.

         Mr. Howard O. Thrall was appointed a Director of the General Partner on
March 6, 1996. Mr. Thrall had previously served as a Director of the General
Partner from December 1988 to December 1994. Since September 1993, Mr. Thrall
has served as Vice President of Sales, Asian Region, for World Airways, Inc.
From 1984 until August 1993, Mr. Thrall was with the McDonnell Douglas
Corporation, where he concluded as a Regional Vice President, Commercial
Marketing with the Douglas Aircraft Company subsidiary. Mr. Thrall is also a
management and international marketing consultant, having completed assignments
with First National Net, Inc., Cheong Kang Associated (Korea), Aero Investment
Alliance, Inc. and Western Real Estate Partners.

         Mr. Robert B. Zoellick was appointed a Director of the General Partner
on April 11, 1995. Mr. Zoellick is Executive Vice President, General Counsel and
Corporate Secretary of Fannie Mae, a federally chartered and stockholder-owned
corporation that is the largest housing finance investor in the United States.
From August 1992 to January 1993, Mr. Zoellick served as Deputy Chief of Staff
of the White House and Assistant to the President. From May 1991 to August 1992,
Mr. Zoellick served concurrently as the Under Secretary of State for Economic
and Agricultural Affairs and as Counselor of the Department of State, a post he
assumed in March 1989. From 1985 to 1988, Mr. Zoellick served at the Department
of Treasury in a number of capacities, including Counselor to the Secretary. Mr.
Zoellick received the Alexander Hamilton and Distinguished Service Awards,
highest honors of the Departments of Treasury and State, respectively. The
German Government awarded him the Knight Commanders Cross for his work on
Germany unification. Mr. Zoellick currently serves on the boards of the Council
on Foreign Relations, the Congressional Institute, the German Marshall Fund of
the U.S., the European Institute, the National Bureau of Asian Research, the
American Council on Germany and the Overseas Development Council.


                                       44
<PAGE>   45
         Christopher J. Bowick, Cynthia A. Winning and Larry W. Kaschinske are
executive officers of the General Partner; Raymond L. Vigil is an executive
officer and a director of the General Partner; and Derek H. Burney, John A.
MacDonald and Daniel E. Somers are directors of the General Partner. Reports by
these persons with respect to the ownership of limited partnership interests in
the Partnership required by Section 16(a) of the Securities Exchange Act of
1934, as amended, were not filed within the required time. None of these
individuals own any limited partnership interests in the Partnership.

                         ITEM 11. EXECUTIVE COMPENSATION

         The Partnership has no employees; however, various personnel are
required to operate the Systems. Such personnel are employed by the General
Partner and, the cost of such employment is charged by the General Partner to
the Partnership or the Venture as a direct reimbursement item. See Item 13.

      ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGERS

         No person or entity owns more than 5 percent of the limited partnership
interests of the Partnership.

             ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         The General Partner and its affiliates engage in certain transactions
with the Partnership and the Venture. The General Partner believes that the
terms of such transactions are generally as favorable as could be obtained by
the Partnership and the Venture from unaffiliated parties. This determination
has been made by the General Partner in good faith, but none of the terms were
or will be negotiated at arm's-length and there can be no assurance that the
terms of such transactions have been or will be as favorable as those that could
have been obtained by the Partnership or the Venture from unaffiliated parties.

         The General Partner charges a management fee, and the General Partner
is reimbursed for certain allocated overhead and administrative expenses. These
expenses represent the salaries and benefits paid to corporate personnel, rent,
data processing services and other corporate facilities costs. Such personnel
provide engineering, marketing, administrative, accounting, legal and investor
relations services to the Partnership and the Venture. Allocations of personnel
costs are based primarily on actual time spent by employees of the General
Partner with respect to each partnership managed. Remaining expenses are
allocated based on the pro rata relationship of the Partnership's revenues to
the total revenues of all systems owned or managed by the General Partner and
certain of its subsidiaries. Systems owned by the General Partner and all other
systems owned by partnerships for which Jones Intercable, Inc. is the general
partner, are also allocated a proportionate share of these expenses.

         The General Partner also advances funds and charges interest on the
balance payable. The interest rate charged approximates the General Partner's
weighted average cost of borrowing.

         The Systems receives stereo audio programming from Superaudio, a joint
venture owned 50% by an affiliate of the General Partner and 50% by an
unaffiliated party, educational video programming from Mind Extension
University, Inc., an affiliate of the General Partner, and computer video
programming from Jones Computer Network, Ltd., an affiliate of the General
Partner, for fees based upon the number of subscribers receiving the
programming.

         Product Information Network ("PIN"), an affiliate of the General
Partner, provides advertising time for third parties on the Systems. In
consideration, the revenues generated from the third parties are shared between


                                       45
<PAGE>   46
PIN and the Venture. During the year ended December 31, 1995, the Partnership
received revenues from PIN of $77,790, and the Venture received revenues from
PIN of $23,430.

         The charges to the Partnership and to the Venture for related party
transactions are as follows for the periods indicated:

<TABLE>
<CAPTION>
                                                         At December 31,
                                            --------------------------------------
Cable TV Fund 14-A                              1995          1994         1993
- ------------------                              ----          ----         ----
<S>                                         <C>           <C>           <C>       
Management fees                             $2,204,740    $2,022,113    $1,945,823
Allocation of expenses                       3,170,917     3,105,440     2,737,532
Interest expense                                23,107        43,708         1,069
Amount of advances outstanding                 887,215       706,579        58,974
Highest amount of advances outstanding         887,215     1,004,121       457,354
Programming fees:
         Superaudio                             54,644        51,858        50,655
         Mind Extension University              61,431        51,389        32,659
         Jones Computer Network                 65,248        21,344           -0-
</TABLE>


<TABLE>
<CAPTION>
                                                        At December 31,
                                            --------------------------------------
Cable TV Fund 14-A/B Venture                    1995          1994         1993
- ----------------------------                    ----          ----         ----
<S>                                         <C>           <C>           <C>       
Management fees                             $1,173,475    $1,109,176    $1,103,448
Allocation of expenses                       1,654,736     1,668,114     1,598,120
Interest expense                               155,659           960         2,361
Amount of advances outstanding               2,206,959       354,179        57,920
Highest amount of advances outstanding       2,206,959       354,179       125,873
Programming fees:
         Superaudio                             30,171        30,631        30,018
         Mind Extension University              32,268        27,751        17,451
         Jones Computer Network                    -0-         5,694           -0-
</TABLE>




                                       46
<PAGE>   47
                                    PART IV.

    ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)1.         See index to financial statements for the list of financial
              statements and exhibits thereto filed as part of this report.

3.            The following exhibits are filed herewith.

   4.1        Limited Partnership Agreements for Cable TV Fund 14-A, Ltd. (1)

   4.2        Joint Venture Agreement of Cable TV Fund 14-A/B Venture, dated as
              of January 8, 1988, between Cable TV Fund 14-A, Ltd. and Cable TV
              Fund 14-B, Ltd. (1)

   10.1.1     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Big Cypress
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.2     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Brighton
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.3     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the
              unincorporated portions of Broward County, Florida (Fund 14-A/B).
              (3)

   10.1.4     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Cooper City,
              Florida (Fund 14-A/B).(10)

   10.1.5     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Dania, Florida
              (Fund 14-A/B). (3)

   10.1.6     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Davie, Florida
              (Fund 14-A/B). (3)

   10.1.7     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Hollywood
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.8     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Immokalee
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.9     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Lauderdale
              Lakes, Florida (Fund 14-A/B). (3)

   10.1.10    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Bement, Illinois (Fund 14-A). (5)

   10.1.11    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Cerro Gordo, Illinois (Fund 14-A). (4)

   10.1.12    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Chanute Air
              Force Base, Illinois (Fund 14-A). (4)

   10.1.13    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Town of
              Chatsworth, Illinois (Fund 14-A). (4)


                                       47
<PAGE>   48
   10.1.14    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Chenoah, Illinois (Fund 14-A). (4)

   10.1.15    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Clinton, Illinois (Fund 14-A). (4)

   10.1.16    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Dupage, Illinois (Fund 14-A). (1)

   10.1.17    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Fairbury, Illinois (Fund 14-A). (4)

   10.1.18    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Farmer City, Illinois (Fund 14-A). (10)

   10.1.19    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Forest, Illinois (Fund 14-A). (4)

   10.1.20    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Gibson City, Illinois (Fund 14-A). (4)

   10.1.21    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Leroy, Illinois (Fund 14-A). (4)

   10.1.22    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Monticello, Illinois (Fund 14-A). (4)

   10.1.23    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Naperville, Illinois (Fund 14-A). (1)

   10.1.24    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Pesotum, Illinois (Fund 14-A). (4)

   10.1.25    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Rantoul, Illinois (Fund 14-A). (4)

   10.1.26    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Thomasborough, Illinois (Fund 14-A). (9)

   10.1.27    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Tolono, Illinois (Fund 14-A).(10)

   10.1.28    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Will, Illinois (Fund 14-A). (1)

   10.1.29    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Calvert, Maryland (Fund 14-A). (1)

   10.1.30    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for St. Mary's
              County, Maryland (Fund 14-A). (5)

   10.1.31    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Southern Anne
              Arundel County, Maryland (Fund 14-A). (1)


                                       48
<PAGE>   49
   10.1.32    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Albertville, Minnesota (Fund 14-A). (1)

   10.1.33    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for City of Big
              Lake, Minnesota (Fund 14-A). (1)

   10.1.34    Copy of Ordinance No. 1200 dated 3/5/90 relating to the City of
              Big Lake franchise (Fund 14- A). (5)

   10.1.35    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Buffalo, Minnesota (Fund 14-A). (1)

   10.1.36    Copy of Ordinance dated 4/16/90 relating to the Buffalo franchise
              (Fund 14-A). (5)

   10.1.37    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Cokato, Minnesota (Fund 14-A). (1)

   10.1.38    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Dassel, Minnesota (Fund 14-A). (1)

   10.1.39    Copy of Ordinance No. 10.044 dated 1/16/90 relating to the Dassel
              franchise (Fund 14-A). (5)

   10.1.40    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Dayton, Minnesota (Fund 14-A). (1)

   10.1.41    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Delano, Minnesota (Fund 14-A). (1)

   10.1.42    Copy of Ordinance No. 0-90-01 dated 3/20/90 relating to the Delano
              franchise (Fund 14-A). (5)

   10.1.43    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of Elk
              River, Minnesota (Fund 14-A). (1)

   10.1.44    Copy of Ordinance No. 90-3 dated 2/26/90 relating to the City of
              Elk River franchise (Fund 14-A). (5)

   10.1.45    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Hassan, Minnesota (Fund 14-A). (2)

   10.1.46    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Maple Lake, Minnesota (Fund 14-A). (1)

   10.1.47    Copy of Ordinance No. 38 dated 3/5/90 relating to the City of
              Maple Lake franchise (Fund 14- A). (5)

   10.1.48    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Monticello, Minnesota (Fund 14-A). (1)

   10.1.49    Copy of Ordinance No. 183 dated 2/26/90 relating to the City of
              Monticello franchise (Fund 14-A). (5)


                                       49
<PAGE>   50
   10.1.50    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Monticello, Minnesota (Fund 14-A). (1)

   10.1.51    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Ostego, Minnesota (Fund 14-A). (1)

   10.1.52    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Rockford, Minnesota (Fund 14-A). (1)

   10.1.53    Resolutions 90-14 and 90-15 dated 4/10/90 relating to the City of
              Rockford franchise (Fund 14-A). (5)

   10.1.54    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Town of
              Rockford, Minnesota (Fund 14-A). (2)

   10.1.55    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of St.
              Michael, Minnesota (Fund 14-A). (1)

   10.1.56    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Watertown, Minnesota (Fund 14-A). (1)

   10.1.57    Copy of Ordinance No. 178 relating to the City of Watertown
              franchise (Fund 14-A). (5)

   10.1.58    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Buena Vista, New Jersey (Fund 14-A). (1)

   10.1.49    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Borough of
              Chesilhurst, New Jersey (Fund 14-A). (1)

   10.1.60    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Borough of
              Folsom, New Jersey (Fund 14-A). (1)

   10.1.61    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Monroe, New Jersey (Fund 14-A). (1)

   10.1.62    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Washington, New Jersey (Fund 14-A). (1)

   10.1.63    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Waterford, New Jersey (Fund 14-A). (1)

   10.1.64    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Winslow, New Jersey (Fund 14-A). (1)

   10.1.65    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Georgetown, South Carolina (Fund 14-B). (5)

   10.2.1     Credit Agreement dated as of July 21, 1994 among Cable TV Fund
              14-A and The Bank of Nova Scotia, as agent for various lenders.
              (Fund 14-A) (9)

   10.2.2     Credit Agreement dated as of September 30, 1988 among Cable TV
              Fund 14-A/B Venture and The Bank of Nova Scotia, as agent for
              various lenders. (Fund 14-A/B) (6)


                                       50
<PAGE>   51
   10.2.3     First Letter Amendment dated June 11, 1990 to Credit Agreement
              dated as of September 30, 1988 among Cable TV Fund 14-A/B Venture
              and The Bank of Nova Scotia, as agent for various lenders. (Fund
              14-A/B) (6)

   10.2.4     Second Letter Amendment dated May 28, 1992 to Credit Agreement
              dated as of September 30, 1988 among Cable TV Fund 14-A/B Venture
              and The Bank of Nova Scotia, as agent for various lenders. (Fund
              14-A/B) (6)

   10.2.5     Third Letter Amendment dated June 30, 1994 to Credit Agreement
              dated as of September 30, 1988 among Cable TV Fund 14-A/B Venture
              and The Bank of Nova Scotia, as agent for various lenders. (Fund
              14-A/B) (9)

   10.3.1     Purchase and Sale Agreement dated as of March 31, 1988 by and
              between Cable TV Fund 14- A/B Venture as Buyer and Jones
              Intercable, Inc. as Seller. (Fund 14-A/B) (7)

   10.3.2     Purchase and Sale Agreement dated as of May 30, 1991, by and
              between Jones Intercable, Inc. and Fund 14-A. (Fund 14-A) (8)

   10.3.3     Asset Purchase Agreement dated as of March 28, 1996, between Cable
              TV Fund 14-A, Ltd. and Lenfest Atlantic, Inc.

   27         Financial Data Schedule

- ----------

   (1)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1987 (Commission File Nos.
              0-15378 and 0-16200)

   (2)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1990 (Commission File Nos.
              0-15378 and 0-16200)

   (3)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1989 (Commission File Nos.
              0-15378 and 0-16200)

   (4)        Incorporated by reference from the Annual Report on Form 10-K for
              fiscal year ended December 31, 1990 of Jones Intercable, Inc.
              (Commission File No. 1-9953)

   (5)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1992.

   (6)        Incorporated by reference from Registrants' Reports on Form 8-K
              dated March 31, 1993 (Commission File Nos. 0-15378 and 0-16200)

   (7)        Incorporated by reference from Registrants' Reports on Form 8-K
              dated March 31, 1988 (Commission File Nos. 0-15378 and 0-16200)

   (8)        Incorporated by reference from Fund 14-A's Report on Form 8-K
              dated June 12, 1991 (Commission File No. 0-15378).

   (9)        Incorporated by reference from the Annual Report on Form 10-K for
              fiscal year ended December 31, 1994 of Jones Intercable, Inc.
              (Commission File No. 1-9953)

  (10)        Incorporated by reference from Registrant's Report on Form 10-K 
              for fiscal year ended December 31, 1994 (Commission File No. 
              0-15378)

   (b)        Reports on Form 8-K None.


                                       51
<PAGE>   52
                                   SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                             CABLE TV FUND 14-A, LTD.
                                             a Colorado limited partnership
                                             By: Jones Intercable, Inc.

                                             By: /s/ Glenn R. Jones
                                                 -------------------------------
                                                 Glenn R. Jones
                                                 Chairman of the Board and Chief
Dated:        March 25, 1996                     Executive Officer

         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.

                                          By: /s/ Glenn R. Jones
                                              -------------------------------
                                              Glenn R. Jones
                                              Chairman of the Board and Chief
                                              Executive Officer
Dated:     March 25, 1996                     (Principal Executive Officer)

                                          By: /s/ Kevin P. Coyle
                                              -------------------------------
                                              Kevin P. Coyle
                                              Group Vice President/Finance
Dated:     March 25, 1996                     (Principal Financial Officer)

                                          By: /s/ Larry Kaschinske
                                              -------------------------------
                                              Larry Kaschinske
                                              Controller
Dated:     March 25, 1996                     (Principal Accounting Officer)

                                          By: /s/ James B. O'Brien
                                              -------------------------------
                                              James B. O'Brien
Dated:     March 25, 1996                     President and Director

                                          By: /s/ Raymond L. Vigil
                                              -------------------------------
                                              Raymond L. Vigil
Dated:     March 25, 1996                     Group Vice President and Director


                                          By: /s/ Derek H. Burney
                                              -------------------------------
                                              Derek H. Burney
Dated:     March 25, 1996                     Director




                                       52
<PAGE>   53
                                             By:
                                                     ---------------------------
                                                     Robert E. Cole
Dated:                                               Director

                                             By:     /s/  William E. Frenzel
                                                     ---------------------------
                                                     William E. Frenzel
Dated:        March 25, 1996                         Director

                                             By:     /s/  Donald L. Jacobs
                                                     ---------------------------
                                                     Donald L. Jacobs
Dated:        March 25, 1996                         Director

                                             By:     /s/  James J. Krejci
                                                     ---------------------------
                                                     James J. Krejci
Dated:        March 25, 1996                         Director

                                             By:     /s/  John A. MacDonald
                                                     ---------------------------
                                                     John A. MacDonald
Dated:        March 25, 1996                         Director

                                             By:
                                                     ---------------------------
                                                     Raphael M. Solot
Dated:                                               Director

                                             By:     /s/  Daniel E. Somers
                                                     ---------------------------
                                                     Daniel E. Somers
Dated:        March 25, 1996                         Director

                                             By:     /s/  Howard O. Thrall
                                                     ---------------------------
                                                     Howard O. Thrall
Dated:        March 25, 1996                         Director

                                             By:     /s/  Robert B. Zoellick
                                                     ---------------------------
                                                     Robert B. Zoellick
Dated:        March 25, 1996                         Director


(21602)



                                       53
<PAGE>   54
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                        EXHIBIT DESCRIPTION                                 PAGE
- ------                        -------------------                                 ----


<S>           <C>                                                                 <C>
   4.1        Limited Partnership Agreements for Cable TV Fund 14-A, Ltd. (1)

   4.2        Joint Venture Agreement of Cable TV Fund 14-A/B Venture, dated as
              of January 8, 1988, between Cable TV Fund 14-A, Ltd. and Cable TV
              Fund 14-B, Ltd. (1)

   10.1.1     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Big Cypress
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.2     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Brighton
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.3     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the
              unincorporated portions of Broward County, Florida (Fund 14-A/B).
              (3)

   10.1.4     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Cooper City,
              Florida (Fund 14-A/B). (10)

   10.1.5     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Dania, Florida
              (Fund 14-A/B). (3)

   10.1.6     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Davie, Florida
              (Fund 14-A/B). (3)

   10.1.7     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Hollywood
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.8     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Immokalee
              Seminole Indian Reservation, Florida (Fund 14-A/B). (2)

   10.1.9     Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Lauderdale
              Lakes, Florida (Fund 14-A/B). (3)

   10.1.10    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Bement, Illinois (Fund 14-A). (5)

   10.1.11    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Cerro Gordo, Illinois (Fund 14-A). (4)

   10.1.12    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Chanute Air
              Force Base, Illinois (Fund 14-A). (4)

   10.1.13    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Town of
              Chatsworth, Illinois (Fund 14-A). (4)
</TABLE>


<PAGE>   55
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                        EXHIBIT DESCRIPTION                                 PAGE
- ------                        -------------------                                 ----


<S>           <C>                                                                 <C>
   10.1.14    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Chenoah, Illinois (Fund 14-A). (4)

   10.1.15    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Clinton, Illinois (Fund 14-A). (4)

   10.1.16    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Dupage, Illinois (Fund 14-A). (1)

   10.1.17    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Fairbury, Illinois (Fund 14-A). (4)

   10.1.18    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Farmer City, Illinois (Fund 14-A). (10)

   10.1.19    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Forest, Illinois (Fund 14-A). (4)

   10.1.20    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Gibson City, Illinois (Fund 14-A). (4)

   10.1.21    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Leroy, Illinois (Fund 14-A). (4)

   10.1.22    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Monticello, Illinois (Fund 14-A). (4)

   10.1.23    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Naperville, Illinois (Fund 14-A). (1)

   10.1.24    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Pesotum, Illinois (Fund 14-A). (4)

   10.1.25    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Rantoul, Illinois (Fund 14-A). (4)

   10.1.26    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Thomasborough, Illinois (Fund 14-A). (9)

   10.1.27    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Village of
              Tolono, Illinois (Fund 14-A). (10)

   10.1.28    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Will, Illinois (Fund 14-A). (1)

   10.1.29    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Calvert, Maryland (Fund 14-A). (1)

   10.1.30    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for St. Mary's
              County, Maryland (Fund 14-A). (5)

   10.1.31    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for Southern Anne
              Arundel County, Maryland (Fund 14-A). (1)
</TABLE>


<PAGE>   56
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                        EXHIBIT DESCRIPTION                                 PAGE
- ------                        -------------------                                 ----


<S>           <C>                                                                 <C>
   10.1.32    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Albertville, Minnesota (Fund 14-A). (1)

   10.1.33    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for City of Big
              Lake, Minnesota (Fund 14-A). (1)

   10.1.34    Copy of Ordinance No. 1200 dated 3/5/90 relating to the City of
              Big Lake franchise (Fund 14- A). (5)

   10.1.35    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Buffalo, Minnesota (Fund 14-A). (1)

   10.1.36    Copy of Ordinance dated 4/16/90 relating to the Buffalo franchise
              (Fund 14-A). (5)

   10.1.37    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Cokato, Minnesota (Fund 14-A). (1)

   10.1.38    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Dassel, Minnesota (Fund 14-A). (1)

   10.1.39    Copy of Ordinance No. 10.044 dated 1/16/90 relating to the Dassel
              franchise (Fund 14-A). (5)

   10.1.40    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Dayton, Minnesota (Fund 14-A). (1)

   10.1.41    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Delano, Minnesota (Fund 14-A). (1)

   10.1.42    Copy of Ordinance No. 0-90-01 dated 3/20/90 relating to the Delano
              franchise (Fund 14-A). (5)

   10.1.43    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of Elk
              River, Minnesota (Fund 14-A). (1)

   10.1.44    Copy of Ordinance No. 90-3 dated 2/26/90 relating to the City of
              Elk River franchise (Fund 14-A). (5)

   10.1.45    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Hassan, Minnesota (Fund 14-A). (2)

   10.1.46    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Maple Lake, Minnesota (Fund 14-A). (1)

   10.1.47    Copy of Ordinance No. 38 dated 3/5/90 relating to the City of
              Maple Lake franchise (Fund 14- A). (5)

   10.1.48    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Monticello, Minnesota (Fund 14-A). (1)

   10.1.49    Copy of Ordinance No. 183 dated 2/26/90 relating to the City of
              Monticello franchise (Fund 14-A). (5)
</TABLE>



<PAGE>   57
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                        EXHIBIT DESCRIPTION                                 PAGE
- ------                        -------------------                                 ----


<S>           <C>                                                                 <C>
   10.1.50    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Monticello, Minnesota (Fund 14-A). (1)

   10.1.51    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Ostego, Minnesota (Fund 14-A). (1)

   10.1.52    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Rockford, Minnesota (Fund 14-A). (1)

   10.1.53    Resolutions 90-14 and 90-15 dated 4/10/90 relating to the City of
              Rockford franchise (Fund 14-A). (5)

   10.1.54    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Town of
              Rockford, Minnesota (Fund 14-A). (2)

   10.1.55    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of St.
              Michael, Minnesota (Fund 14-A). (1)

   10.1.56    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the City of
              Watertown, Minnesota (Fund 14-A). (1)

   10.1.57    Copy of Ordinance No. 178 relating to the City of Watertown
              franchise (Fund 14-A). (5)

   10.1.58    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Buena Vista, New Jersey (Fund 14-A). (1)

   10.1.49    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Borough of
              Chesilhurst, New Jersey (Fund 14-A). (1)

   10.1.60    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Borough of
              Folsom, New Jersey (Fund 14-A). (1)

   10.1.61    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Monroe, New Jersey (Fund 14-A). (1)

   10.1.62    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Washington, New Jersey (Fund 14-A). (1)

   10.1.63    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Waterford, New Jersey (Fund 14-A). (1)

   10.1.64    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the Township of
              Winslow, New Jersey (Fund 14-A). (1)

   10.1.65    Copy of a franchise and related documents thereto granting a
              community antenna television system franchise for the County of
              Georgetown, South Carolina (Fund 14-B). (5)

   10.2.1     Credit Agreement dated as of July 21, 1994 among Cable TV Fund
              14-A and The Bank of Nova Scotia, as agent for various lenders.
              (Fund 14-A) (9)

   10.2.2     Credit Agreement dated as of September 30, 1988 among Cable TV
              Fund 14-A/B Venture and The Bank of Nova Scotia, as agent for
              various lenders. (Fund 14-A/B) (6)
</TABLE>



<PAGE>   58
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                        EXHIBIT DESCRIPTION                                 PAGE
- ------                        -------------------                                 ----


<S>           <C>                                                                 <C>

   10.2.3     First Letter Amendment dated June 11, 1990 to Credit Agreement
              dated as of September 30, 1988 among Cable TV Fund 14-A/B Venture
              and The Bank of Nova Scotia, as agent for various lenders. (Fund
              14-A/B) (6)

   10.2.4     Second Letter Amendment dated May 28, 1992 to Credit Agreement
              dated as of September 30, 1988 among Cable TV Fund 14-A/B Venture
              and The Bank of Nova Scotia, as agent for various lenders. (Fund
              14-A/B) (6)

   10.2.5     Third Letter Amendment dated June 30, 1994 to Credit Agreement
              dated as of September 30, 1988 among Cable TV Fund 14-A/B Venture
              and The Bank of Nova Scotia, as agent for various lenders. (Fund
              14-A/B) (9)

   10.3.1     Purchase and Sale Agreement dated as of March 31, 1988 by and
              between Cable TV Fund 14- A/B Venture as Buyer and Jones
              Intercable, Inc. as Seller. (Fund 14-A/B) (7)

   10.3.2     Purchase and Sale Agreement dated as of May 30, 1991, by and
              between Jones Intercable, Inc. and Fund 14-A. (Fund 14-A) (8)

   10.3.3     Asset Purchase Agreement dated as of March 29, 1995, between Cable
              TV Fund 14-A, Ltd. and Lenfest Atlantic, Inc.

   27         Financial Data Schedule

- ----------

   (1)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1987 (Commission File Nos.
              0-15378 and 0-16200)

   (2)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1990 (Commission File Nos.
              0-15378 and 0-16200)

   (3)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1989 (Commission File Nos.
              0-15378 and 0-16200)

   (4)        Incorporated by reference from the Annual Report on Form 10-K for
              fiscal year ended December 31, 1990 of Jones Intercable, Inc.
              (Commission File No. 1-9953)

   (5)        Incorporated by reference from Registrant's Report on Form 10-K
              for fiscal year ended December 31, 1992.

   (6)        Incorporated by reference from Registrants' Reports on Form 8-K
              dated March 31, 1993 (Commission File Nos. 0-15378 and 0-16200)

   (7)        Incorporated by reference from Registrants' Reports on Form 8-K
              dated March 31, 1988 (Commission File Nos. 0-15378 and 0-16200)

   (8)        Incorporated by reference from Fund 14-A's Report on Form 8-K
              dated June 12, 1991 (Commission File No. 0-15378).

   (9)        Incorporated by reference from the Annual Report on Form 10-K for
              fiscal year ended December 31, 1994 of Jones Intercable, Inc.
              (Commission File No. 1-9953)

  (10)        Incorporation by reference from Registrant's Annual Report on 
              Form 10-K for fiscal year ended December 31, 1994 (Commission 
              File No. 0-15378).
</TABLE>


<PAGE>   1





                            ASSET PURCHASE AGREEMENT

                                    BETWEEN

                            CABLE TV FUND 14-A, LTD.

                                      AND

                             LENFEST ATLANTIC, INC.

                                     DATED

                                 March 28, 1996
<PAGE>   2
                               TABLE OF CONTENTS

<TABLE>
<S> <C>                                                                                           <C>
1.  CERTAIN DEFINITIONS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1

2.  PURCHASE AND SALE OF THE ASSETS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   8
         2.1.  Agreement to Purchase and Sell . . . . . . . . . . . . . . . . . . . . . . . . .   8
         2.2.  Excluded Assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9
         2.3.  Purchase Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9
         2.4.  EBU Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10
         2.5.  Revenue Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10
         2.6.  Capital Expenditures Adjustment  . . . . . . . . . . . . . . . . . . . . . . . .   10
         2.7.  Current Items Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10
         2.8.  Adjustments and Current Items Amount Calculated  . . . . . . . . . . . . . . . .   11
         2.9.  Assumption of Liabilities  . . . . . . . . . . . . . . . . . . . . . . . . . . .   12

3.  SELLER'S REPRESENTATIONS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13
         3.1.  Organization and Qualification . . . . . . . . . . . . . . . . . . . . . . . . .   13
         3.2.  Authorization  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13
         3.3.  System Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13
         3.4.  EBUs, Revenues and Capital Expenditures at Closing . . . . . . . . . . . . . . .   14
         3.5.  No Other Operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   14
         3.6.  Title and Condition of Personal Property . . . . . . . . . . . . . . . . . . . .   15
         3.7.  Franchises, Licenses and Contracts . . . . . . . . . . . . . . . . . . . . . . .   15
         3.8.  No Conflicts; Consents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   16
         3.9.  Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   16
         3.10. Employment Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   16
         3.11. Taxes  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   17
         3.12. Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18
         3.13. No Adverse Change  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18
         3.14. Compliance with Legal Requirements . . . . . . . . . . . . . . . . . . . . . . .   18
         3.15. Environmental Laws and Regulations . . . . . . . . . . . . . . . . . . . . . . .   21
         3.16. Real Property  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   21
         3.17. Non-Infringement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   22
         3.18. Books and Records  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   22
         3.19. Accounts Receivable  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   22
         3.20. Bonds  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   22
         3.21. Accuracy of Schedules  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   23
         3.22. Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   23

4.  BUYER'S REPRESENTATIONS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   23
         4.1.  Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   23
         4.2.  Authorization  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   23
         4.3.  Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   23

5.  COVENANTS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   24
         5.1.  Seller's Pre-Closing Obligations . . . . . . . . . . . . . . . . . . . . . . . .   24
         5.2.  Financial Information  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   25
         5.3.  Title Matters  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   25
         5.4.  Employees of the System  . . . . . . . . . . . . . . . . . . . . . . . . . . . .   26
         5.5.  Buyer's Cooperation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   26
         5.6.  HSR Act Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   26
         5.7.  Transitional Billing Services  . . . . . . . . . . . . . . . . . . . . . . . . .   27
         5.8.  Bulk Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   27
</TABLE>
<PAGE>   3




<TABLE>
<S>                                                                                               <C>
6.  CONDITIONS PRECEDENT  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   27
         6.1.  Conditions Precedent to Buyer's Obligations  . . . . . . . . . . . . . . . . . .   27
         6.2.  Conditions Precedent to Seller's Obligations . . . . . . . . . . . . . . . . . .   28

7.  CLOSING   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   30
         7.1.  Time and Place . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   30
         7.2.  Seller's Deliveries  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   30
         7.3.  Buyer's Obligations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   31

8.  TERMINATION   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   32
         8.1.  Termination Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   32
         8.2.  Effect of Termination  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   33

9.  SURVIVAL OF REPRESENTATIONS AND INDEMNITY   . . . . . . . . . . . . . . . . . . . . . . . .   33
         9.1.  Survival of Representations, Warranties and Covenants  . . . . . . . . . . . . .   33
         9.2.  Seller's Indemnity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   34
         9.3.  Buyer's Indemnity  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   35
         9.4.  Procedure for Indemnified Third Party Claim  . . . . . . . . . . . . . . . . . .   35
         9.5.  Limitation on Indemification . . . . . . . . . . . . . . . . . . . . . . . . . .   36
         9.6.  Determination of Indemnification Amounts and Related Matters . . . . . . . . . .   36

10. CONFIDENTIALITY AND PRESS RELEASES  . . . . . . . . . . . . . . . . . . . . . . . . . . . .   36
         10.1. Confidentiality  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   36
         10.2. Press Releases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   36

11. BROKERAGE FEES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   37

12. CASUALTY LOSSES   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   37

13. MISCELLANEOUS   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   38
         13.1. Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   38
         13.2. Notices  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   38
         13.3. Assignment; Binding Effect . . . . . . . . . . . . . . . . . . . . . . . . . . .   39
         13.4. Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   39
         13.5. Taxes  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   39
         13.6. Collection of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   40
         13.7. Entire Agreement; Amendments; Waivers  . . . . . . . . . . . . . . . . . . . . .   40
         13.8. Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   40
         13.9. Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   40
         13.10.Schedules and Exhibits; Headings . . . . . . . . . . . . . . . . . . . . . . . .   40
         13.11.Governing Law  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   40
         13.12 Third Parties; Joint Ventures  . . . . . . . . . . . . . . . . . . . . . . . . .   41
         13.13.Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   41
         13.14.Attorney's Fees  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   41
</TABLE>





<PAGE>   4






                        INDEX OF SCHEDULES AND EXHIBITS


                      Schedules

                         3.3          System Information
                         3.5          Competition
                         3.6          Personal Property
                         3.7          Franchises, Licenses and Contracts
                         3.8          Consents
                         3.9          Litigation
                         3.10         Employees of the System
                         3.11         Taxes
                         3.13         Material Adverse Changes
                         3.14         Legal Requirements
                         3.15         Environmental Matters
                         3.16         Real Property
                         3.19         Accounts Receivable
                         3.20         Bonds
                         5.1          Description of Compensation 
                                      Practices
                        

                      Exhibits

                          A           Form of Bill of Sale and Assignment
                          B           Opinion of Seller's Counsel
                          C           Opinion of Buyer's Counsel
                          D           Form of Assumption Agreement






<PAGE>   5
                            ASSET PURCHASE AGREEMENT

                 This ASSET PURCHASE AGREEMENT (the "Agreement") is made as of
the 28th day of March, 1996, by and between CABLE TV FUND 14-A, LTD., a
Colorado limited partnership (the "Seller"), and LENFEST ATLANTIC, INC., a New
Jersey corporation (the "Buyer").

                                    RECITALS

                 A.       Seller owns and operates the cable television system
based in Turnersville, New Jersey and serving Washington and Monroe Townships
in Gloucester County, Winslow and Waterford Townships and the Borough of
Chesilhurst in Camden County and Folsom and Buena Vista Townships in Atlantic
County, all in the State of New Jersey (the "System").

                 B.       Seller desires to sell, and Buyer desires to
purchase, substantially all of the assets comprising the System on the terms
and conditions set forth in this Agreement.

                                   AGREEMENTS

                 In consideration of the mutual promises and covenants
hereinafter set forth, Buyer and Seller hereby agree as follows:

                 1.       CERTAIN DEFINITIONS.

                          As used in this Agreement, the following terms,
whether in singular or plural form, shall have the following meanings:

                 1.1.     "Accounts Receivable" means the rights of Seller to
payment for services rendered by Seller prior to the Closing Date in connection
with the operation of the System, as reflected on the billing records of
Seller.

                 1.2.     "Assumed Contracts" means (i) all Contracts listed in
Schedule 3.7 hereto not excluded by Buyer within fifteen (15) business days
after receipt by Buyer of copies of the Contracts listed in Schedule 3.7; (ii)
any Contracts entered into by Seller in the ordinary course of business and as
permitted by this Agreement between the date hereof and the Closing Date that
would have been listed on Schedule 3.7 had they been in existence on the date
hereof and which Buyer agrees in writing to assume; and (iii) all Contracts,
except employee-related contracts, vehicle leases and the Contracts referred to
or
<PAGE>   6



listed in Section 2.2, which meet the criteria in Section 3.7 (i), (ii), (iii)
or (iv) for exclusion from Schedule 3.7.

                 1.3.     "Basic Subscriber" means any private residential
customer account that is billed by individual unit (regardless of whether such
account is in a single family home or in an individually billed unit in an
apartment house or other multi-unit building) excluding (i) "second connects"
or "additional outlets," as such terms are commonly understood in the cable
television industry, (ii) accounts that are not charged, or are charged less
than, standard rates for Limited Basic and/or Basic Plus service other than
pursuant to a senior discount, (iii) accounts that have not paid in full for at
least two (2) month's service at standard rates, except that accounts that are
new to the System within the two (2) months prior to the Closing Date shall not
be excluded so long as such accounts pay in full for at least two (2) month's
service at standard rates from the date such accounts are activated by the
System, (iv) accounts that are more than sixty (60) days delinquent from the
date of billing on any amount due to Seller in excess of $5.00, (v) accounts
that are pending disconnection for any reason, and (vi) accounts solicited
during the sixty (60) day period preceding the Closing Date by extraordinary
promotions or offers of discounts other than those generally being offered in
the cable television industry.

                 1.4.     "Basic Plus" means the tier programming service
provided by the System as described on Schedule 3.3.

                 1.5.     "Bulk Subscriber" means any commercial, bulk-billed
and other account not billed by individual unit, such as hotels, motels,
apartment houses and multi-family homes, excluding (i) accounts that have not
paid in full for at least two (2) month's service, except that accounts that
are new to the System within the two (2) months prior to the Closing Date shall
not be excluded so long as such accounts pay in full for at least two (2)
month's service from the date such accounts are activated by the System, (ii)
accounts that are more than sixty (60) days delinquent from the date of billing
on any amount due to Seller, (iii) accounts that are pending disconnection for
any reason, and (iv) accounts solicited during the sixty (60) day period
preceding the Closing Date by extraordinary promotions or offers of discounts
other than those generally being offered in the cable television industry.

                 1.6.     "Cable Act" means Title VI of the Communications Act
of 1934, as amended, 47 U.S.C. Section 151 et seq., and all other provisions of
the Cable Communications Policy Act of 1984, Pub. L. No. 98-549, the Cable
Television Consumer Protection and Competition Act of 1992, Pub. L. No.
102-385, and





                                      -2-
<PAGE>   7



the Telecommunications Act of 1996, Pub. L. No. 104-104, as such statutes may
be amended from time to time, and the rules and regulations promulgated
thereunder.

                 1.7.     "Closing" means the consummation of the transaction
contemplated by this Agreement in accordance with the provisions of Section 7.

                 1.8.     "Closing Date" means the date of the Closing as
determined in accordance with the provisions of Section 7.

                 1.9.     "Code" means the Internal Revenue Code of 1986, as
amended, and the regulations thereunder, or any subsequent legislative
enactment thereof, as in effect from time to time.

                 1.10.    "Consents" means all of the consents, permits or
approvals of third parties necessary to transfer the Assets to Buyer or
otherwise to consummate lawfully the transaction contemplated hereby.

                 1.11.    "Contracts" means all leases, private easements,
private rights-of-way, multiple dwelling unit agreements, programming
agreements that are specific to the System, retransmission consent agreements
that are specific to the System, must carry notifications, pole attachment and
conduit agreements, subscriber agreements and other agreements, written or oral
(including any amendments and other modifications thereto) to which Seller is a
party and which affect the Assets or the business or operations of the System,
and (i) which are in effect on the date hereof and which by their terms are to
be in effect as of the Closing Date, or (ii) which are entered into by Seller
in the ordinary course of business and as permitted by this Agreement between
the date of this Agreement and the Closing Date and which by their terms are to
be in effect as of the Closing Date.

                 1.12.    "Equivalent Billing Unit" means the quotient of (x)
the aggregate monthly revenue for Limited Basic and Basic Plus cable television
services derived by the System from Basic Subscribers and Bulk Subscribers
(excluding any "Nonstandard Charges," as defined below), in each case for the
last calendar month preceding the date of such determination, divided by (y)
the greater of (i) $21.73 or (ii) the sum of the standard monthly fee charged
for the provision of Limited Basic service to customers served by the System
and 97.6% of the standard monthly fee charged for the provision of Basic Plus
service to customers served by the System, as of the date of determination.
For purposes of this definition, the term "Nonstandard Charges" means any
charges for





                                      -3-
<PAGE>   8



premium services, pay-per-view programming, franchise fees, taxes, second
connects, additional outlets, installation fees, deposits and other
non-recurring items and any charges for the rental of converters, remote
control devices and other like charges for equipment.  Equivalent Billing Units
are sometimes referred to herein as "EBUs."

                 1.13.    "ERISA" means the Employee Retirement Income Security
Act of 1974, as amended, and rules and regulations promulgated thereunder and
published interpretations with respect thereto.

                 1.14.    "FCC" means the Federal Communications Commission.

                 1.15.    "Franchises" means all municipal, county and state
franchises, franchise applications (if any), authorizations and permits
relating to the System, other than the Licenses.

                 1.16.    "Governmental Authority" means (i) the United States
of America, any state, commonwealth, territory, or possession thereof and any
political subdivision or quasi-governmental authority of any of the same,
including but not limited to courts, tribunals, departments, commissions,
boards, bureaus, agencies, counties, municipalities, provinces, parishes, and
other instrumentalities, and (ii) any foreign (as to the United States of
America) sovereign entity, including but not limited to nations, states,
republics, kingdoms and principalities, any state, province, commonwealth,
territory or possession thereof, and any political subdivision,
quasi-governmental authority, or instrumentality of any of the same.

                 1.17.    "Hazardous Substances" means (i) any "hazardous
waste" as defined by the Resources Conservation and Recovery Act of 1976
("RCRA") (42 U.S.C. Section 6901 et seq.), as amended, and rules and
regulations promulgated thereunder; (ii) any "hazardous substance" as defined
by the Comprehensive Environmental Response, Compensation and Liability Act of
1980 (42 U.S.C. Section  9601 et seq.) ("CERCLA"), as amended, and rules and
regulations promulgated thereunder; (iii) any substance regulated by the Toxic
Substances Act ("TSCA") (42 U.S.C. Section 2601 et seq.), as amended, and rules
and regulations promulgated thereunder; (iv) asbestos; (v) polychlorinated
biphenyls; (vi) any substances regulated under the provisions of Subtitle I of
RCRA relating to underground storage tanks; (vii) any substance the presence,
use, treatment, storage or disposal of which on the Real Property is prohibited
by any Legal Requirements; and (viii) any other substance which by any Legal
Requirements require special





                                      -4-
<PAGE>   9



handling, reporting or notification of any Governmental Authority in its
collection, storage, use, treatment, or disposal.

                 1.18.    "HSR Act" means the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended.

                 1.19.    "Judgment" means any judgment, writ, order,
injunction, award or decree of any court, judge, justice or magistrate,
including any bankruptcy court or judge, and any order of or by any
Governmental Authority.

                 1.20.    "Knowledge" of any Person of or with respect to any
matter means that such Person (if a natural person) or any of the officers,
directors and general managers of such Person (if not a natural Person) has
actual awareness or knowledge of such matter.

                 1.21.    "Legal Requirements" means applicable common law and
any statute, ordinance, code or other law, rule, regulation, order, technical
or other standard, requirement or procedure enacted, adopted, promulgated,
applied or followed by any Governmental Authority, including Judgments.

                 1.22.    "Licenses" means all domestic satellite, business
radio, CARS, microwave and other licenses, and all authorizations and permits
relating to the System granted to Seller by any Governmental Authority, except
the Franchises or any public easements or rights-of-way related thereto.

                 1.23.    "Lien" means any security agreement, financing
statement filed with any Governmental Authority, conditional sale or other
title retention agreement, any lease, consignment or bailment given for
purposes of security, any lien, mortgage, indenture, pledge, option,
encumbrance, adverse interest, constructive trust or other trust, claim,
attachment, exception to or defect in title or other ownership interest
(including but not limited to reservations, rights of entry, possibilities of
reverter, encroachments, easement, rights-of-way, restrictive covenants, leases
and licenses) of any kind, which otherwise constitutes an interest in or claim
against property, whether arising pursuant to any Legal Requirement, Contract
or otherwise.

                 1.24.    "Limited Basic" means the basic programming service
provided by the System as described on Schedule 3.3.





                                      -5-
<PAGE>   10




                 1.25.    "Litigation" means any claim, action, suit,
proceeding, arbitration, investigation, hearing or other activity or procedure
that could result in a Judgment, and any notice of any of the foregoing.

                 1.26.    "Losses" means any claims, losses, liabilities,
damages, Liens, penalties, costs, and expenses, including but not limited to
interest which may be imposed in connection therewith, expenses of
investigation, reasonable fees and disbursements of counsel and other experts,
and the cost to any Person making a claim or seeking indemnification under this
Agreement with respect to funds expended by such Person by reason of the
occurrence of any event with respect to which indemnification is sought.

                 1.27.    "Person" means any natural person, Governmental
Authority, corporation, general or limited partnership, joint venture, trust,
association or unincorporated entity of any kind.

                 1.28.    "Personal Property" means all of the equipment,
plant, inventory, spare parts, supplies and other tangible personal property
which are owned or leased by Seller and used or useful as of the date hereof in
the conduct of the business or operations of the System, other than the
Excluded Assets, plus such additions thereto and deletions therefrom arising in
the ordinary course of business and as permitted by this Agreement between the
date of this Agreement and the Closing Date.

                 1.29.    "Real Property" means all of the fee estates and
buildings and other improvements thereon, leasehold interests in real estate,
private easements, private rights to access, private rights-of-way, and other
real property interests which are owned or leased by Seller and used or useful,
as of the date of this Agreement, in the conduct of the business or operations
of the System, plus such additions thereto and deletions therefrom arising in
the ordinary course of business and permitted by this Agreement between the
date of this Agreement and the Closing Date.

                 1.30.    "Taxes" means all levies and assessments of any kind
or nature imposed by any Governmental Authority, including but not limited to
all income, sales, use, ad valorem, value added, franchise, severance, net or
gross proceeds, withholding, payroll, employment, excise or property taxes,
together with any interest thereon and any penalties, additions to tax or
additional amounts applicable thereto.





                                      -6-
<PAGE>   11




                 1.31.    "Transaction Documents" means all instruments and
documents executed and delivered by Buyer or Seller or any officer, director or
affiliate of either of them in connection with this Agreement or the
transaction contemplated hereby.

                 1.32.    List of Additional Definitions.  The following is a
list of additional terms used in this Agreement and a reference to the Section
hereof in which such term is defined:

<TABLE>
<CAPTION>
                 Term                                          Section
                 ----                                          -------
                 <S>                                              <C>
                 Adjustment Time                                  2.7
                 Annualized Gross Revenues                        2.5
                 Assets                                           2.1
                 Assumed Liabilities                              2.9
                 Buyer                                            Preamble
                 Capital Expenditures Adjustment Amount           2.6
                 Current Items Amount                             2.7
                 Excluded Assets                                  2.2
                 Final Adjustment                                 2.8
                 Financial Statements                             3.12
                 Grace Period                                     2.8
                 Indemnitee                                       9.4
                 Indemnitor                                       9.4
                 Independent Accountant                           2.8
                 Initial Adjustment Certificate                   2.8
                 Initial Indemnification Claim Date               9.5
                 Outside Closing Date                             7.1
                 Purchase Price                                   2.3
                 Purchase Price Adjustment Mechanism              2.3
                 Revenue Adjustment Amount                        2.5
                 Seller                                           Preamble
                 EBU Adjustment Amount                            2.4
                 System                                           Recitals
                 Title Commitments                                5.3
                 Title Defect                                     5.3
                 Transitional Billing Services                    5.7
</TABLE>                                                





                                      -7-
<PAGE>   12



                 2.       PURCHASE AND SALE OF THE ASSETS.

                 2.1.     Agreement to Purchase and Sell.  Subject to the terms
and conditions set forth in this Agreement, at Closing Seller shall sell,
convey, assign, transfer and deliver to Buyer, and Buyer shall purchase from
Seller, for the Purchase Price, free and clear of all Liens (except Liens for
ad valorem Taxes not yet due and payable), and with full warranties of title
and with full substitution and subrogation to all rights and actions of
warranty against all preceding owners, the following described tangible and
intangible assets used or useful in connection with the conduct of the business
or operations of the System (the "Assets"):


                          2.1.1     the Personal Property;

                          2.1.2     the Real Property;

                          2.1.3     the Franchises;

                          2.1.4     the Assumed Contracts;

                          2.1.5     the Accounts Receivable;

                          2.1.6     the Licenses;

                          2.1.7     all of Seller's proprietary information,
technical information and data, machinery and equipment warranties, maps,
computer disks and tapes, plans, diagrams, blueprints and schematics relating
to the System, including filings with the FCC, other than as any of the
foregoing relate to the Excluded Assets;

                          2.1.8     all books and records relating to the
business or operations of the System, including, to the extent available to
Seller, executed copies of the Assumed Contracts, subject to the right of
Seller to have such books and records made available to Seller for a reasonable
period, not to exceed three years from the Closing Date;

                          2.1.9     the goodwill and going concern value
generated by Seller with respect to the System, if any; and

                          2.1.10    all intangible assets of Seller relating to
the System not specifically described above.





                                      -8-
<PAGE>   13



                 2.2.     Excluded Assets.  The following assets (the "Excluded
Assets") shall not be transferred to Buyer by Seller and are specifically
excluded from the Assets:

                          2.2.1   Seller's cash on hand as of the Closing Date
and all other cash in any of Seller's bank or savings accounts, any and all
insurance policies, construction and performance bonds, intercompany
receivables with respect to any affiliate of Seller, letters of credit or other
similar items and any cash surrender value in regard thereto, and any stocks,
bonds, certificates of deposit and similar investments;

                          2.2.2   Any Contracts other than the Assumed 
Contracts;

                          2.2.3   Any books and records that Seller is required
by law to retain, subject to the right of Buyer to have access to and to copy
for a reasonable period, not to exceed three years from the Closing Date, and
Seller's partnership books and records related to internal partnership matters
and financial relationships with Seller's lenders;

                          2.2.4   Any claims, rights and interests in and to
any refunds of federal, state or local franchise, income or other taxes or fees
for periods prior to the Closing Date; and

                          2.2.5   The trademarks, trade names, service marks
and all other information and similar intangible assets relating to Seller or
the System.

                 2.3.     Purchase Price.  Subject to the terms and conditions
of this Agreement, at the Closing Buyer shall deliver to Seller by wire
transfer of immediately available funds, to such account or accounts as are
designated in writing by Seller to Buyer, the sum of $84,500,000 (the "Purchase
Price") for the Assets, which sum shall be subject to adjustment as follows:
(i) the Purchase Price shall be reduced by the sum of (a) the greater of the
EBU Adjustment Amount or the Revenue Adjustment Amount (if both are positive
numbers) and (b) the Capital Expenditures Adjustment Amount; and (ii) the
Purchase Price shall be subject to upward or downward adjustment, as the case
may be, pursuant to the Current Items Amount (collectively, the "Purchase Price
Adjustment Mechanism").  Anything in this Agreement to the contrary
notwithstanding, if the number of Equivalent Billing Units of the System is
less than 36,300 as of the Closing Date but the System's Annualized Gross
Revenues as of the Closing Date exceed $17,500,000, the Seller shall be
entitled to offset,





                                      -9-
<PAGE>   14



dollar for dollar, the EBU Adjustment Amount by the amount of the revenue
overage based on the same adjustment factors.  For example, if the number of
Equivalent Billing Units of the System is 36,000 as of the Closing Date and the
System's Annualized Gross Revenues as of the Closing Date are $17,600,000,
Seller would be entitled to offset the EBU Adjustment Amount of $698,400 (300 x
$2,328) by $483,000 (100,000 x $4.83).

                 2.4.     EBU Adjustment.  The EBU Adjustment shall be an
amount equal to $2,328 multiplied by the number, if any, of Equivalent Billing
Units of the System less than 36,300 as of the Closing Date (the "EBU
Adjustment Amount").

                 2.5.     Revenue Adjustment.  The Revenue Adjustment shall be
an amount equal to $4.83 multiplied by the amount, if any, by which the
System's Annualized Gross Revenues as of the Closing Date are less than
$17,500,000 (the "Revenue Adjustment Amount") and shall be made in accordance
with generally accepted accounting principles applied on a consistent basis.
The System's "Annualized Gross Revenues" shall be an amount equal to the
System's gross revenues for the three (3) calendar months prior to the Closing
Date multiplied by four (4).

                 2.6.     Capital Expenditures Adjustment.  The Capital
Expenditures Adjustment shall be an amount equal to the actual shortfall, if
any, in the System's budgeted capital expenditures for 1996, pro rated as of
the Closing Date if the Closing Date occurs before year-end 1996 (the "Capital
Expenditures Adjustment Amount") and shall be made in accordance with generally
accepted accounting principles applied on a consistent basis.  The System's
$2,000,000 capital expenditures budget for 1996 is described on Schedule 3.3.

                 2.7.     Current Items Amount.  Buyer or Seller, as
appropriate, shall pay to the other (by increasing or decreasing the Purchase
Price paid to Seller at the Closing) the net amount of the adjustments and
prorations effected pursuant to Sections 2.7.1, 2.7.2, 2.7.3 and 2.7.4 below
(the "Current Items Amount").  The adjustments provided for herein shall be
made in accordance with generally accepted accounting principles applied on a
consistent basis as of the close of business (5:00 p.m., eastern time) on the
Closing Date (the "Adjustment Time").

                          2.7.1   Accounts Receivable.  Seller shall be
entitled to an amount equal to the sum of (i) 90% of the face amount of all
active Accounts Receivable that are 30 days or less past due as of the
Adjustment Time, plus (ii)





                                      -10-
<PAGE>   15



80% of the face amount of all active Accounts Receivable that are between 31
days and 60 days past due as of the Adjustment Time.  For purposes of making
"past due" calculations under this Section 2.7.1, the billing statements of the
System will be deemed to be due and payable on the first day of the period
during which the service to which such billing statements relate is provided.

                          2.7.2   Advance Payments and Deposits.  Buyer shall
be entitled to an amount equal to the aggregate of (i) all deposits of
subscribers of the System for converters, decoders, and similar items, and (ii)
all payments for services to be rendered by Buyer to subscribers of the System
after the Adjustment Time.

                          2.7.3   Expenses.  As of the Adjustment Time, the
following expenses shall be prorated so that all expenses for periods prior to
the Adjustment Time shall be for the account of Seller, and all expenses for
periods after the Adjustment Time shall be for the account of Buyer: (i) all
payments and charges under the Franchises, the Licenses, and the Assumed
Contracts; (ii) Taxes levied or assessed against any of the Assets; (iii)
Taxes, if any, payable with respect to cable television service and related
sales to subscribers of the System; (iv) charges for utilities and other goods
or services furnished to the System; (v) copyright fees based on signal
carriage by the System; and (vi) all other items of expense relating to the
System; provided, however, that Seller and Buyer shall not prorate any items of
expense payable under any Excluded Assets, all of which shall remain and be
solely for the account of Seller.

                          2.7.4   Income.  As of the Adjustment Time, all items
of income relating to the System shall be prorated so that all income for
periods prior to the Adjustment Time shall be for the account of the Seller,
and all income for periods after the Adjustment Time shall be for the account
of Buyer; provided, however, that Seller and Buyer shall not prorate any
Accounts Receivable, which shall be purchased by Buyer pursuant to the
provisions of Section 2.7.1.

                 2.8.     Adjustments and Current Items Amount Calculated.  The
EBU Adjustment Amount, the Revenue Adjustment Amount, the Capital Expenditures
Adjustment Amount and the Current Items Amount shall be estimated in good faith
by Seller, and set forth, together with a detailed statement of the calculation
thereof, in a certificate (the "Initial Adjustment Certificate") executed by a
duly authorized representative of Seller and delivered, together with such
supporting documentation as the Buyer may reasonably request, to Buyer not
later than ten (10) days prior to the Closing.





                                      -11-
<PAGE>   16



The Initial Adjustment Certificate shall constitute the basis on which the EBU
Adjustment Amount, the Revenue Adjustment Amount, the Capital Expenditures
Adjustment Amount and the Current Items Amount are calculated for purposes of
the Closing.  On or before ninety (90) days after the Closing Date, Seller
shall deliver to Buyer a final calculation of the adjustments calculated as of
the Closing Date (the "Final Adjustment"), together with such supporting
documentation as Buyer may reasonably request, which shall evidence in
reasonable detail the nature and extent of each adjustment.  Seller shall
cooperate with Buyer and provide reasonable access to the necessary personnel
and records of Seller to review the Final Adjustment.  Should Buyer dispute
Seller's Final Adjustment, Buyer shall promptly, but in no event later than
thirty (30) days after receipt of the Final Adjustment (the "Grace Period"),
deliver to Seller written notice describing in reasonable detail the dispute,
together with Buyer's determination as to the Final Adjustment in reasonable
detail.  If the dispute is not resolved by the parties within twenty (20) days
from the date of receipt by Seller of written notice from Buyer, the parties
agree to engage promptly a "big six" accounting firm mutually acceptable to
Seller and Buyer (the "Independent Accountant") to resolve the dispute within
thirty (30) days after such engagement.  The Independent Accountant's
determination shall be final and binding on the parties.  The Buyer, on the one
hand, or the Seller, on the other hand, shall make appropriate payment to the
other of the difference between the Final Adjustment amount and the adjustment
amount paid at Closing pursuant to the Initial Adjustment Certificate within
three (3) business days following either the resolution of the dispute by the
parties or the receipt of the Independent Accountant's final determination, as
the case may be.  All fees and costs of the Independent Accountant shall be
borne equally by the Seller and the Buyer.  Buyer shall not dispute Seller's
Final Adjustment unless the Buyer's computation of the Final Adjustment differs
from Seller's computation of the Final Adjustment by more than $7,000.  If
Buyer fails to notify Seller prior to the expiration of the Grace Period that
it disputes Seller's Final Adjustment, Seller's Final Adjustment shall be
deemed to be accepted by Buyer and shall be final and binding on the parties.

                 2.9.     Assumption of Liabilities.  As of the Closing Date,
Buyer shall assume, pay, discharge, and perform the following (the "Assumed
Liabilities"):  (i) all liabilities and obligations with respect to periods
subsequent to the Closing Date under any Franchise, License, or Assumed
Contract; (ii) other obligations and liabilities of Seller only to the extent
that there shall be an adjustment in favor of Buyer with respect thereto
pursuant to Section 2.7; and (iii) all obligations and liabilities arising out
of Buyer's ownership of the Assets or operation of the System after the Closing
Date.  All debts, liabilities, and





                                      -12-
<PAGE>   17



obligations arising out of or relating to the Assets or the operation of the
System other than the Assumed Liabilities shall remain and be the obligations
and liabilities solely of Seller.

                 3.       SELLER'S REPRESENTATIONS.

                          Seller represents, warrants, covenants and agrees as
                          follows:

                 3.1.     Organization and Qualification.  Seller is a limited
partnership duly organized, validly existing, and in good standing under the
laws of the State of Colorado, and has all requisite power and authority to own
and lease the properties and assets it currently owns and leases and to conduct
its activities and to carry on its business as such activities and business are
currently conducted and to perform the terms of this Agreement.  Seller is duly
qualified to do business as a foreign limited partnership and is in good
standing in the State of New Jersey.

                 3.2.     Authorization.  Seller has full partnership power and
authority to execute, deliver and perform this Agreement and to consummate the
transactions contemplated in this Agreement.  The execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated by this Agreement on the part of Seller have been duly and validly
authorized and approved by all necessary action on the part of Seller and its
general partner.  This Agreement has been duly and validly executed and
delivered by Seller, and is the valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms.

                 3.3.     System Information.  Schedule 3.3 sets forth a
materially true and accurate description of the following information as of the
date of this Agreement:

                          3.3.1   the number of miles of activated aerial and 
underground plant included in the Assets;

                          3.3.2   the approximate number of passings of the 
System;

                          3.3.3   a description of the basic and tier services
available from the System, the rates charged by Seller for each, together with
the approximate number of subscribers receiving each of the services, and any
other charges by Seller for services to subscribers;


                                      -13-
<PAGE>   18



                          3.3.4   the System's subscribers receiving free
and/or discounted services;

                          3.3.5   the System's 1996 budget, including
information about budgeted capital expenditures and planned basic and tier rate
increases;

                          3.3.6   the channel and megahertz capacity of the
System, the stations and signals carried by the System, the channel position of
each such signal and station, and all frequencies utilized by the System; and

                          3.3.7   with respect to each Bulk Subscriber:

                                  (i)      the name and address of, and, if
applicable, the number of units in, each such establishment, building,
condominium, hotel or motel that is served by the System; and

                                  (ii)     a description of the cable
television services delivered to each such establishment, building,
condominium, hotel or motel on a bulk basis and the monthly rates (including
discounts, if any) charged for each such service.

                 3.4.     EBUs, Revenues and Capital Expenditures at Closing.
As of the Closing Date, (i) the System will have 36,300 Equivalent Billing
Units, (ii) the System will have $17,500,000 of Annualized Gross Revenues, and
(iii) the Seller will have expended the pro rata portion of the System's
$2,000,000 budgeted capital expenditures for 1996.  Anything in this Agreement
to the contrary notwithstanding, the Buyer's sole remedy for Seller's breach of
the representations contained in this Section 3.4 shall be the downward
adjustment of the Purchase Price pursuant to the Purchase Price Adjustment
Mechanism described in Section 2.3 above and such purchase price adjustment
shall be deemed to cure any default of Seller under this Section 3.4.

                 3.5.     No Other Operators.  Except as described on Schedule
3.5, and other than multichannel multipoint distribution services and direct
broadcast satellite services (i) the System is the only multiple channel
operator presently serving the communities which it serves, (ii) to the best of
Seller's knowledge, no other multiple channel operator is presently
contemplated by any person in the communities now served by the System, and
(iii) no franchises or other authorizations other than the Franchises have been
issued with respect to the communities served by the System.


                                      -14-
<PAGE>   19



                 3.6.     Title and Condition of Personal Property.   Schedule
3.6 contains a complete description of all material items of Personal Property,
other than the Excluded Assets.  The Personal Property constitutes all personal
property necessary to conduct lawfully and properly the business or operations
of the System as now conducted.  Except as described on Schedule 3.6, Seller
has good and marketable title to all of the Personal Property, free and clear
of all Liens, except ad valorem Taxes not yet due and payable, and at Closing
Buyer will acquire good and marketable title to all of the Personal Property,
free and clear of all Liens, except ad valorem taxes not yet due and payable.
All the Personal Property is in good working order and repair, ordinary wear
and tear excepted.

                 3.7.     Franchises, Licenses, and Contracts.  Schedule 3.7
contains a description of all of the Franchises, Licenses and Contracts, except
for:  (i) subscription agreements with individual residential subscribers for
the cable services provided by the System in the ordinary course of business
which may be cancelled by the System without penalty on not more than 30 days
notice; (ii) miscellaneous service contracts terminable at will without
penalty; (iii) other Contracts not involving aggregate liabilities under all
such Contracts exceeding $25,000; and (iv) other Contracts not involving any
material nonmonetary obligation.  Seller has delivered to Buyer true and
complete copies of each of the Franchises, Licenses, and written Contracts,
including any amendments thereto, other than Contracts described in clauses
(i), (ii),  (iii) and (iv) above and motor vehicle leases.  Except as described
on Schedule 3.7:  (i) each of the Franchises, Licenses, and Contracts is valid,
in full force and effect, and enforceable in accordance with its terms against
the parties thereto other than Seller, and Seller has fulfilled when due, or
has taken all action necessary to enable it to fulfill when due, all of its
obligations thereunder; (ii) there has not occurred any default (without regard
to lapse of time, the giving of notice, the election of any Person other than
Seller, or any combination thereof) by Seller nor, to the knowledge of Seller,
has there occurred any default (without regard to lapse of time, the giving of
notice, the election of Seller, or any combination thereof) by any Person other
than Seller under any of the Franchises, Licenses, or Contracts; and (iii)
neither Seller nor, to the knowledge of Seller, any other Person is in arrears
in the performance or satisfaction of its obligations under any of the
Franchises, Licenses, or Contracts, and no waiver or indulgence has been
granted by any of the parties thereto.  Except as described on Schedule 3.7,
the Franchises, Licenses, and Contracts are sufficient to permit Seller to
operate the System lawfully in the manner in which it is currently operated.





                                      -15-
<PAGE>   20



                 3.8.     No Conflicts; Consents.  Except as described on
Schedule 3.8 or on any other Schedule to this Agreement, the execution,
delivery, and performance by Seller of this Agreement does not and will not:
(i) violate any provision of any Legal Requirement; (ii) conflict with or
violate any provision of the certificate of limited partnership or the limited
partnership agreement of Seller; (iii) conflict with, violate, result in a
breach of, constitute a default under (without regard to requirements of
notice, lapse of time, or elections of other Persons, or any combination
thereof), accelerate, or permit the acceleration of the performance required
by, any Contract; (iv) result in the creation or imposition of any Lien against
or upon any of the Assets; or (v) require any consent, approval, or
authorization of, or filing of any certificate, notice, application, report, or
other document with, any Governmental Authority or other Person.

                 3.9.     Litigation.  Except as described on Schedule 3.9, (i)
there is no outstanding Judgment against Seller requiring Seller to take any
action of any kind with respect to the Assets or the operation of the System,
or to which the System or the Assets are subject or by which they are bound or
affected; and (ii) there is no Litigation pending or, to Seller's knowledge,
threatened, against Seller which individually or in the aggregate might result
in any materially adverse change in the financial condition or operation of the
System or adversely affect the Assets or the ability of Seller to perform its
obligations under this Agreement.  Except as described on Schedule 3.9, there
are no proceedings pending to which Seller is a party or, to Seller's
knowledge, threatened, nor have any demands been made by any Governmental
Authority, utility, pole lessor, or other party, which seeks or could result in
the termination, modification, suspension or limitation of Seller's rights or
obligations with respect to the Franchises, Licenses, or Contracts.

                 3.10.    Employment Matters.

                          3.10.1  Neither Seller nor any Employee Benefit Plan
or, to Seller's knowledge, any Multiemployer Plan (as those terms are defined
in ERISA) maintained by Seller or to which Seller has or has had the obligation
to contribute in respect of any of Seller's employees that render services in
connection with the System is in violation of the provisions of ERISA; no
reportable event, within the meaning of Title IV of ERISA, has occurred and is
continuing with respect to any such Employee Benefit Plan or, to Seller's
knowledge, any such Multiemployer Plan; and no prohibited transaction, within
the meaning of Title I of ERISA, has occurred with respect to any such Employee
Benefit Plan or, to Seller's knowledge, any such Multiemployer Plan.





                                      -16-
<PAGE>   21



                          3.10.2  There are no collective bargaining agreements
applicable to any persons employed by Seller that render services in connection
with the System, and Seller has no duty to bargain with any labor organization
with respect to any such persons.  There is not pending any demand for
recognition or any other request or demand from a labor organization for
representative status with respect to any Persons employed by Seller that
render services in connection with the System.

                          3.10.3  Schedule 3.10 contains a true and complete
list of the names and positions of all employees of the System and a
description of the salaries and benefits of such persons.  With respect to any
Persons employed by Seller that render services in connection with the System,
Seller is in compliance with all applicable Legal Requirements respecting
employment conditions and practices, has withheld all amounts required by any
applicable Legal Requirements or Contracts to be withheld from wages or
salaries, and is not liable for any arrears of wages or any taxes or penalties
for failure to comply with any of the foregoing.

                          3.10.4  With respect to any Persons employed by
Seller that render services in connection with the System, (i) Seller has not
engaged in any unfair labor practice within the meaning of the National Labor
Relations Act and has not violated any Legal Requirements prohibiting
discrimination on the basis of race, color, national origin, sex, religion,
age, marital status, or handicap in its employment conditions or practices; and
(ii) except as described on Schedule 3.10, there are no pending or, to Seller's
knowledge, threatened unfair labor practice charges or discrimination
complaints relating to race, color, national origin, sex, religion, age,
marital status, or handicap against Seller before any Governmental Authority
nor, to Seller's knowledge, does any basis therefor exist.

                          3.10.5  There are no existing or, to Seller's
knowledge, threatened, labor strikes, disputes, or grievances affecting the
System or other labor controversies which could reasonably be expected to have
a material and adverse effect on the financial condition or operations of the
System.  There are no pending or, to the knowledge of Seller, threatened
arbitration proceedings under any Contracts respecting Seller's employees, nor
to the knowledge of Seller, does any basis therefor exist.

                 3.11.    Taxes.  Except as described on Schedule 3.11, (i)
Seller has duly and timely paid all Taxes with respect to the System and the
Assets which





                                      -17-
<PAGE>   22



have become due and payable by it; (ii) Seller has received no notice of, nor
does Seller have any knowledge of, any notice of deficiency or assessment of
proposed deficiency or assessment from any taxing Governmental Authority with
respect to the System; and (iii) there are no audits pending with respect to
the System and there are no outstanding agreements or waivers by Seller that
extend the statutory period of limitations applicable to any federal, state,
local, or foreign tax returns or Taxes with respect to the System.

                 3.12.    Financial Statements.  Seller has delivered to Buyer
true, complete and correct copies of the audited financial statements of Seller
for the year ended December 31, 1994 and true, correct and complete unaudited
financial statements of Seller for the nine (9) months ended September 30, 1995
(the "Financial Statements").  The Financial Statements accurately reflect all
of the cash flows, income, expenses, liabilities, operations, equity and assets
of Seller at the respective dates thereof.  Seller also has delivered to Buyer
unaudited balance sheets as of December 31, 1994 and September 30, 1995, each
of which fairly and accurately present, as of the respective dates thereof, the
assets and liabilities of the System.  Seller also has delivered to Buyer
unaudited statements of operations for the twelve and nine month periods ended
December 31, 1994 and September 30, 1995, respectively, both of which fairly
and accurately present the results of operations of the System for the
respective periods presented.  Except as indicated in the notes to such
financial statements, the respective above-referenced financial statements have
been prepared in accordance with GAAP consistently applied with prior periods.

                 3.13.    No Adverse Change.  Except as described on Schedule
3.13, there has been no material adverse change in the Assets or the financial
condition or operations of the Seller since September 30, 1995, other than
changes arising from matters caused by or arising from legislation, rulemaking
or regulation affecting the cable television industry in general, and the
Assets and the financial condition and operations of the System have not been
materially and adversely affected as a result of any fire, explosion, accident,
casualty, labor trouble, flood, drought, riot, storm, condemnation or act of
God or public force or otherwise.

                 3.14.    Compliance with Legal Requirements.

                          3.14.1  The operation of the System as currently
conducted does not violate or infringe in any material respect any Legal
Requirements currently in effect or, to the knowledge of Seller, proposed to
become effective.  Except as described on Schedule 3.14, Seller has received no
notice of any





                                      -18-
<PAGE>   23



violation by Seller or the System of any Legal Requirement applicable to the
operation of the System as currently conducted, and knows of no basis for the
allegation of any such violation.

                          3.14.2  Seller is permitted under all applicable
Franchises and FCC rules, regulations and orders to distribute the
transmissions (whether television, satellite, radio or otherwise) of video
programming or other information that the Seller makes available to subscribers
of the System and to utilize all carrier frequencies generated by the
operations of the System, and is licensed to operate all the facilities
required by law to be licensed, including without limitation any business radio
and any cable television relay service system being operated as part of the
System.  Other than requests for network nonduplication and syndex protection
and as described on Schedule 3.14, no written requests have been received by
Seller during the three years preceding the date of this Agreement from the
FCC, the United States Copyright Office or any other Person challenging or
questioning the right of Seller's operation of the System and of any
FCC-licensed or registered facility used in conjunction with Seller's operation
of the System.  Except as provided in Schedule 3.14, Seller's operation of the
System, and of any FCC-licensed or registered facility used in conjunction with
Seller's operation of the System, is in compliance in all material respects
with the FCC's rules and regulations and the provisions of the Communications
Act of 1934, as amended.  Seller has not violated any laws or any duty or
obligation with regard to protecting the privacy rights of any past or present
subscribers of the System.

                          3.14.3  Seller has conducted all system and microwave
performance tests and all Cumulative Leakage Index ("CLI") related tests
applicable to the System.  Seller has (i) maintained appropriate log books and
other recordkeeping which accurately and completely reflect in all material
respects all results required to be shown thereon; (ii) to the extent required
by the rules and regulations of the FCC, corrected any radiation leakage of the
System required to be corrected in connection with Seller's monitoring
obligations under the rules and regulations of the FCC; and (iii) otherwise
complied in all material respects with all applicable CLI rules and regulations
in connection with the operation of the System.

                          3.14.4  Seller has deposited with the United States
Copyright Office all statements of account and other documents and instruments,
and paid all royalties, supplemental royalties, fees and other sums to the
United States Copyright Office required under the Copyright Act with respect to
the business and operations of the System as are required to obtain, hold and





                                      -19-
<PAGE>   24



maintain the compulsory copyright license for cable television systems
prescribed in Section 111 of the Copyright Act.  Seller is in compliance in all
material respects with the Copyright Act and the rules and regulations of the
Copyright Office with respect to the operation of the System, except as to
potential copyright liability arising from the performance, exhibition or
carriage of any music on the System as to which the Seller makes no
representation.  Seller is entitled to hold and does hold the compulsory
copyright license described in Section 111 of the Copyright Act, which
compulsory copyright license is in full force and effect and has not been
revoked, cancelled, encumbered or adversely affected in any manner.

                          3.14.5  All of the broadcast television signals
carried by the System are carried either pursuant to the must-carry
requirements or pursuant to executed retransmission consent agreements.

                          3.14.6  Seller's operation of the System has not and
does not violate the Cable Act, except for violation(s) which, individually or
in the aggregate, reasonably could not be expected to have a material adverse
effect on the System.  Seller has delivered or will deliver promptly after the
date hereof to Buyer complete and correct copies of all reports and filings for
the past three years made or filed pursuant to the Cable Act, the
Communications Act or FCC rules or regulations with respect to the System,
including, without limitation, FCC Forms 159 (Remittance Advice), 159C, 320,
328, 329, 393, 395A, 1200, 1205, 1210, 1215, 1220, 1225 and 1230, copies of
Seller's correspondence with any Governmental Authority relating to rate
regulation generally or specific rates charged to subscribers of the System
including, without limitation, copies of any complaints filed with the FCC with
respect to Seller's rates charged to such subscribers and any other
documentation supporting an exemption from the rate regulation provisions of
the Cable Act.  A request for renewal has been timely filed under Section
626(a) of the Cable Act with the proper Governmental Authority with respect to
each franchise of the System expiring within 36 months of the date of this
Agreement.  Except as described on Schedule 3.14, Seller has received no notice
that any complaints about the System have been filed with the New Jersey Board
of Public Utilities.

                          3.14.7  The System is being operated in compliance
with the Rules and Regulations of the Federal Aviation Administration ("FAA").
Schedule 3.6 lists all of the existing towers of the System.  Without limiting
the generality of the foregoing, the existing towers of the System are
obstruction marked and lighted in accordance with the Rules and Regulations of
the FAA and FCC or are exempt from such requirements.  All required
authorizations,





                                      -20-
<PAGE>   25



including, but not limited to, Hazard to Air Navigation determinations, for
such towers have been issued by and pursuant to the Rules and Regulations of
the FAA.  Except as set forth on Schedule 3.6, Seller does not lease space on
such towers to any third party.

                 3.15.    Environmental Laws and Regulations.

                          3.15.1  Seller is not the subject of any "Superfund"
evaluation or investigation in connection with the Real Property, and to its
knowledge is not the subject of any investigation or proceeding of any
Governmental Authority evaluating whether any remedial action is necessary to
respond to any release of Hazardous Substances on or in connection with the
Real Property.

                          3.15.2  All material permits, licenses, permissions,
and other authorizations relating to the Real Property which are required under
applicable Legal Requirements with respect to pollution or protection of the
environment have been obtained, including Legal Requirements relating to actual
or threatened emissions, discharges, or releases of Hazardous Substances into
ambient air, surface water, ground water, land, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport, or handling of Hazardous Substances.  Seller is in compliance in all
respects with all terms and conditions of such permits, licenses, permissions,
and authorizations, and is in material compliance in all respects with all
other limitations, restrictions, obligations, schedules, and time-tables of
such Legal Requirements or of any other environmental, health, or safety Legal
Requirements relating to the Real Property.  Except as described on Schedule
3.15, Seller has not received notice of, and has no knowledge of circumstances
relating to, any past, present, or future  events, conditions, circumstances,
activities, practices, incidents, actions, or plans, including but not limited
to the presence, use, generation, manufacture, disposal, release, or threatened
release of any Hazardous Substances from the Real Property, which could
interfere with or prevent continued compliance with any Legal Requirement, or
which are reasonably likely to give rise to any liability, based upon or
related to the processing, distribution, use, treatment, storage, disposal,
transport, or handling, or the emission, discharge, release, or threatened
release into the environment, of any Hazardous Substance from or attributable
to the Real Property.

                 3.16.    Real Property.  Schedule 3.16 contains descriptions
of all the Real Property, which comprises all real property interests necessary
to conduct the business or operations of the System as now conducted.  Seller
has





                                      -21-
<PAGE>   26



delivered to Buyer true and complete copies of all deeds, leases, easements,
rights-of-way or other instruments pertaining to the Real Property (including
any and all amendments and other modifications of such instruments).  Seller
has good and marketable fee simple title to all of the fee estates (including
the improvements thereon), listed in Schedule 3.16, free and clear of all
Liens, except for (i) Liens for Taxes not yet due and payable; (ii) easements,
rights-of-way and restrictions of record, none of which materially affects the
use of value of such property and all of which are described in Schedule 3.16;
and (iii) any other claims or encumbrances which are described in Schedule 3.16
and annotated to indicate that such claims or encumbrances will be removed
prior to or at Closing.  All Real Property (including the improvements thereon)
(A) is in good condition and repair consistent with its present use, (B) is
available to Seller for immediate use in the conduct of the business or
operations of the System, and (C) complies in all material respects with all
applicable building or zoning codes and the regulations of any governmental
authority having jurisdiction.

                 3.17.    Non-Infringement.  The operation of the System as
currently conducted does not infringe upon, or otherwise violate, the rights of
any person or entity in any copyright, trade name, trademark right, service
mark, service name, patent, patent right, license, trade secret or franchise,
and there is not pending or, to Seller's knowledge, threatened any action with
respect to any such infringement or breach.

                 3.18.    Books and Records.  All of the books, records, and
accounts of the System are in all material respects true and complete, are
maintained in accordance with good business practice and all applicable Legal
Requirements, and accurately present and reflect in all material respects all
of the transactions therein described.

                 3.19.    Accounts Receivable.  Except as described in Schedule
3.19, Seller is the true and lawful owner of the Accounts Receivable and has
good and clear title to each Account, free and clear of all Liens, with the
absolute right to transfer any interest therein.  Each such Account is (i) a
valid obligation of the account debtor enforceable in accordance with its
terms, and (ii) in all material respects, a true and correct statement of the
account for merchandise actually sold and delivered to, or for actual services
performed for and accepted by, such account debtor.

                 3.20.    Bonds.  Schedule 3.20 contains an accurate and
complete list of all bonds (franchise, construction, fidelity, or performance)
of Seller which





                                      -22-
<PAGE>   27



relate in any way to the ownership or use of the Assets or the operation of the
System.

                 3.21.    Accuracy of Schedules.  All Schedules to this
Agreement are accurate and complete in all material respects as of the date of
this Agreement.

                 3.22.    Disclosure.  No representation or warranty by Seller,
or any statement or certificate furnished by Seller to Buyer pursuant to this
Agreement or in connection with the transaction contemplated by this Agreement,
contains or will at Closing contain any untrue statement of a material fact or
omits or will at Closing omit to state a material fact necessary to make the
statements contained therein not misleading.

                 4.       BUYER'S REPRESENTATIONS.

                          Buyer hereby represents, warrants, covenants and 
agrees, as follows:

                 4.1.     Organization.  Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of New
Jersey, and has all requisite power and authority to own and lease the
properties and assets it currently owns and leases and to conduct its
activities and to carry on its business as such activities and business are
currently conducted and to perform the terms of this Agreement.

                 4.2.     Authorization.  Buyer has full corporate power and
authority to execute, deliver, and perform this Agreement and to consummate the
transactions contemplated in this Agreement.  The execution, delivery, and
performance of this Agreement and the consummation of the transactions
contemplated in this Agreement on the part of Buyer have been duly and validly
authorized and approved by all necessary action on the part of Buyer, including
appropriate resolutions, if necessary, of the Board of Directors of Buyer.
This Agreement has been duly and validly executed and delivered by Buyer, and
is the valid and binding obligation of Buyer, enforceable against Buyer in
accordance with its terms.

                 4.3.     Disclosure.  No representation or warranty of Buyer,
or any statement or certificate furnished by Buyer to Seller pursuant to this
Agreement or in connection with the transaction contemplated by this Agreement,
contains


                                      -23-
<PAGE>   28



or will contain at Closing any untrue statement of a material fact or omits or
will at Closing omit to state a material fact  necessary to make the statements
contained therein not misleading.

                 5.       COVENANTS.

                 5.1.     Seller's Pre-Closing Obligations.  Seller covenants
and agrees that, from and after the execution and delivery of this Agreement
until and including the Closing Date:

                          5.1.1   Access.  Seller shall give Buyer and its
representatives full access during normal business hours to all of the
properties, books, and records relating to the System, and furnish Buyer with
such information concerning the Assets and the System as Buyer may reasonably
request.

                          5.1.2   Conduct of Business.  Seller shall operate
the System in the ordinary and usual course and in accordance with past
practices, which shall include, without limitation, maintaining appropriate
staff and management personnel (consistent with past practices) at the System
and maintaining appropriate inventory (consistent with past practices).  Seller
shall duly comply in all material respects with all applicable Legal
Requirements, perform all of its material obligations under all of the
Franchises, Licenses, and Contracts without default, and maintain the books,
records, and accounts relating to the System in the usual, regular, and
ordinary manner on a basis consistent with past practices.  Seller shall use
reasonable efforts to keep available the services of its employees providing
services in connection with the System, continue normal marketing, advertising,
and promotional expenditures with respect to the System, and preserve
beneficial business relationships with all customers, suppliers, and others
having business or other dealings with Seller relating to the System, including
Governmental Authorities having jurisdiction over Seller.  Seller shall
maintain the Assets in good condition and repair, ordinary wear excepted, and
Seller shall keep in effect the casualty and liability insurance covering the
Assets at a level that is reasonable and appropriate (consistent with past
practices).

                          5.1.3   Negative Covenants.  Seller shall not, except
as Buyer may otherwise consent in writing, (i) modify, terminate, renew,
suspend, or abrogate any Assumed Contract (except that Seller may make non-
material modifications in the ordinary course of business), (ii) modify,
terminate, renew, suspend, or abrogate any Franchise or License, (iii)
transfer, convey, or otherwise dispose of any of the Assets (except that Seller
may use inventory and





                                      -24-
<PAGE>   29



dispose of damaged or defective equipment or material in the normal course of
business), (iv) take any action that would result in the creation of a Lien on
any of the Assets, (v) engage in any marketing, subscriber installation, or
collection practices that are inconsistent with the past practices of Seller,
(vi) implement any increase or decrease in the rates charged for the System's
Limited Basic or Basic Plus cable television services except in accordance with
Seller's 1996 budget as described on Schedule 3.3 or pursuant to a Legal
Requirement or Judgment or (vii) enter into any Assumed Contract(s) that
individually or in the aggregate for the same or related transactions commit
the System and/or the Buyer to amounts in excess of $50,000.

                          5.1.4   Consents.  Seller shall use reasonable
efforts to obtain as promptly as possible all approvals, authorizations, and
Consents required in order to consummate the transactions contemplated by this
Agreement, including approvals of the FCC, Governmental Authorities, and other
Persons to the transfer or assignment by Seller to Buyer of all rights under
and pursuant to the Franchises, Licenses, and Assumed Contracts.

                          5.1.5   Employment Matters.  Without Buyer's prior
written consent, Seller shall make no change in the compensation payable or to
become payable by Seller to any Person employed in connection with the conduct
of the business or operations of the System, except in accordance with past
practices as described on Schedule 5.1.

                 5.2.     Financial Information.  Seller shall promptly deliver
to Buyer true and complete copies of all monthly operating reports of Seller
with respect to the System and any reports with respect to the operation of the
System prepared by or for Seller at any time from the date of this Agreement
until the Closing.

                 5.3.     Title Matters.  At least sixty (60) days before the
Closing, Seller shall obtain and furnish to Buyer, at Seller's cost, title
insurance commitments (the "Title Commitments") issued by a nationally
recognized title insurer showing the status of record title to each fee parcel
of the Real Property, and agreeing to insure marketable title in fee simple to
each such parcel, at Seller's cost, subject only to (i) zoning restrictions,
prohibitions, and other requirements imposed by any Governmental Authority
having jurisdiction over the Real Property; (ii) public utility easements of
record; (iii) Liens for Taxes not yet due and payable; and (iv) easements,
rights-of-way, restrictions, and other similar encumbrances incurred in the
ordinary course of business that do not materially interfere with the ordinary
use of the property.  If Buyer shall





                                      -25-
<PAGE>   30



notify Seller within twenty (20) days of its receipt of the Title Commitments
of any Lien or other matter (other than Liens permitted by items (i) - (iv)
above) affecting title to the Real Property which, in the determination of
Buyer, renders title uninsurable or unmerchantable, or which could adversely
affect the use of any parcel of the Real Property for the purpose for which it
is currently used by Seller (each, a "Title Defect"), Seller shall exercise its
best efforts to remove or, with the consent of Buyer, cause the title company
to commit to insure over, each Title Defect prior to the Closing.

                 5.4.     Employees of the System.  Seller shall comply with
the provisions of the Worker Adjustment and Retraining Notification Act, as
amended, 23 U.S.C. Section  2101, et seq., as it relates to the transaction
contemplated hereby, and shall indemnify and hold harmless Buyer from and
against all Losses arising with respect thereto.  Seller acknowledges that
Buyer may, but shall have no obligation to, hire any of Seller's employees that
render services in connection with the operation of the System; provided,
however, that Buyer shall give Seller notice at least thirty (30) days prior to
the Closing Date of the name of any employee of the System to whom Buyer does
not plan to offer employment on and after the Closing Date.  Seller shall
remain solely responsible for, and shall indemnify and hold harmless Buyer from
and against all Losses arising with respect to, all salaries and all severance,
vacation, sick, holiday, and other benefits to which employees of Seller may be
entitled, as a result of consummation of the transaction contemplated hereby or
otherwise.

                 5.5.     Buyer's Cooperation.  Buyer shall fully cooperate
with Seller, do all things reasonably necessary to assist Seller, and use its
commercially reasonable efforts at its expense to obtain all Consents necessary
for the transfer of or assignment to Buyer of the Franchises, Leases and
Assumed Contracts, including the furnishing of all financial and other
information reasonably required by the party whose Consent is being sought.

                 5.6.     HSR Act Compliance.  Within thirty (30) days after
the date of this Agreement, Seller and Buyer shall prepare and file proper
premerger notification forms and affidavits in compliance with the HSR Act.
Seller and Buyer shall each pay one-half of all fees payable to Governmental
Authorities in connection with such filings.  If, following the filing of such
forms, any Governmental Authority shall challenge the transaction contemplated
hereby, or request additional filings or information, Seller and Buyer shall
take preliminary steps to attempt to ascertain the nature of the challenge and
the likelihood that the Governmental Authority will permit the transaction
contemplated hereby to proceed notwithstanding the challenge.  After taking
such preliminary steps,





                                      -26-
<PAGE>   31



neither Seller nor Buyer shall have any obligation to contest such challenge or
make or provide any such filing or information, and each shall be entitled, at
its option, to withdraw its filing and terminate this Agreement.

                 5.7.     Transitional Billing Services.  Seller shall provide
to Buyer, upon written request and at the cost of the Buyer, subscriber billing
services ("Transitional Billing Services") in connection with the System for a
period of up to ninety (90) days following Closing to allow for conversion of
existing billing arrangements.  Buyer shall notify Seller in writing at least
thirty (30) days prior to Closing as to whether it desires Seller to provide
Transitional Billing Services.  Each party shall cooperate with all reasonable
requests by the other in connection with the first billing cycle following
Closing.

                 5.8.     Bulk Sales.  Buyer and Seller each waive compliance
by the other with Legal Requirements relating to bulk sales applicable to the
transaction contemplated hereby.

                 6.       CONDITIONS PRECEDENT.

                 6.1.     Conditions Precedent to Buyer's Obligations.  The
obligations of Buyer under this Agreement with respect to the purchase of the
Assets shall be subject to the fulfillment on or prior to the Closing Date of
each of the following conditions, any of which may be waived by Buyer:

                          6.1.1   Accuracy of Representations; Performance of
Agreements; Officer's Certificate.  All of the representations and warranties
of Seller contained in this Agreement or any Transaction Document shall be true
and correct in all material respects at and as of the Closing Date as if given
on the Closing Date, except that the failure of the Seller's representations
contained in Section 3.4 hereof to be true and correct in all material respects
shall not relieve the Buyer of its obligations under this Agreement to purchase
the Assets, and Seller shall have complied with and performed in all material
respects all of the agreements, covenants, and conditions required by this
Agreement to be performed or complied with by it on or prior to the Closing.
Seller shall have furnished Buyer with an executed certificate of its President
or any Vice President, dated as of the Closing, certifying to the fulfillment
of the foregoing conditions.

                          6.1.2   Consents.  Seller shall have obtained and
delivered to Buyer each of the Consents designated on Schedule 3.8 as material,
with no adverse conditions imposed by such Consent





                                      -27-
<PAGE>   32



                          6.1.3   Title Commitments.  Seller shall have
furnished to Buyer the Title Commitments within the time period required by
this Agreement.

                          6.1.4   No Litigation.  There shall be no Legal
Requirement, and no Judgment shall have been entered and not vacated by a
final, unappealable order by any Governmental Authority of competent
jurisdiction in any Litigation or arising therefrom, which (i) enjoins,
restrains, makes illegal, or prohibits consummation of the transaction
contemplated by this Agreement, or (ii) requires separation or divestiture by
Buyer of all or any portion of the Assets after the Closing, and there shall be
no Litigation pending or threatened that seeks, or which if successful would
have the effect of, any of the foregoing.

                          6.1.5   HSR Act Compliance.  All waiting periods
under the HSR Act applicable to this Agreement or the transaction contemplated
hereby shall have expired or been terminated.

                          6.1.6   Deliveries.  Seller shall have made or stand
willing to and able to make all of the deliveries to Buyer set forth in Section
7.2.

                          6.1.7   No Adverse Change.  Between the date of this
Agreement and the Closing Date, there shall have been (i) no material adverse
change in the System or its financial condition, taken as a whole, other than
any change arising out of matters affecting the economy as a whole or matters
(including, without limitation, competition caused by or arising from
multichannel multipoint distribution services and/or direct broadcast satellite
and legislation, rulemaking or regulation) affecting the cable television
industry (national or regional) generally, and (ii) no material loss, damage,
impairment, confiscation or condemnation of any of the Assets that has not been
repaired or replaced.

                          6.1.8   No Material Purchase Price Adjustment.  The
Initial Adjustment Certificate delivered by Seller to Buyer pursuant to Section
2.8 hereof shall indicate that the Purchase Price will not be reduced by an
amount greater than $4,000,000 pursuant to the Purchase Price Adjustment
Mechanism.

                 6.2.     Conditions Precedent to Seller's Obligations.  The
obligations of Seller under this Agreement with respect to the sale of the
Assets shall be subject to the fulfillment on or prior to the Closing of each
of the following conditions, which may be waived by Seller:





                                      -28-
<PAGE>   33



                          6.2.1   Accuracy of Representations; Performance of
Agreements; and Officer's Certificate.  All of the representations and
warranties of Buyer contained in this Agreement shall be true and correct at
and as of the Closing Date, and Buyer shall have complied with and performed
all of the agreements, covenants, and conditions required by this Agreement to
be performed or complied with by it on or prior to the Closing.  Buyer shall
have furnished Seller with an executed certificate of its President or any Vice
President, dated as of the Closing, certifying to the fulfillment of the
foregoing conditions.

                          6.2.2   No Litigation.  There shall be no Legal
Requirement, and no Judgment shall have been entered and not vacated by any
Governmental Authority of competent jurisdiction in any Litigation or arising
therefrom, which enjoins, restrains, makes illegal, or prohibits consummation
of the transactions contemplated by this Agreement.

                          6.2.3   HSR Act Compliance.  All waiting periods
under the HSR Act applicable to this Agreement or the transaction contemplated
hereby shall have expired or been terminated.

                          6.2.4   Deliveries.  Buyer shall have made or stand
willing and able to make all the deliveries to Seller set forth in Section 7.3.

                          6.2.5   Consents.  Seller shall have obtained each of
the Consents designated on Schedule 3.8 as material.

                          6.2.6   No Material Purchase Price Adjustment.  The
Initial Adjustment Certificate delivered by Seller to Buyer pursuant to Section
2.8 hereof shall indicate that the Purchase Price will not be reduced by an
amount greater than $4,000,000 pursuant to the Purchase Price Adjustment
Mechanism; provided, however, if the Initial Adjustment Certificate delivered
by Seller to Buyer pursuant to Section 2.8 hereof discloses that the Purchase
Price will be reduced by an amount greater than $4,000,000 pursuant to the
Purchase Price Adjustment Mechanism and Buyer shall give written notice to
Seller not later than three (3) days prior to the Closing that Buyer agrees
that, regardless of the actual adjustment amount as calculated pursuant to the
Purchase Price Adjustment Mechanism, the Purchase Price will not be reduced by
an amount greater than $4,000,000, the Seller shall not be relieved of its
obligations under this Agreement to sell the Assets.





                                      -29-
<PAGE>   34



                 7.       CLOSING.

                 7.1.     Time and Place.  The consummation of the transfer and
delivery of the Assets to Buyer and the receipt of the consideration therefore
by Seller shall constitute the "Closing."  Unless otherwise mutually agreed to
by the parties, the Closing shall take place by mail and/or by fax.  The
parties agree that a signature on a document received by the other party via
fax shall be deemed valid and binding if the original executed document is sent
for delivery to the other party by an overnight courier service that guarantees
overnight delivery.  The parties agree to close the transactions contemplated
by this Agreement upon a date designated by Seller, which in no event shall be
sooner than fifteen (15) business days after all of the conditions to Closing
set forth in Section 6 hereof have been satisfied or waived, which specified
date shall constitute the "Closing Date."  Seller shall use its reasonable best
efforts to designate the last business day of a month as the Closing Date.  The
effective date of the sale of the System shall be at the close of business on
the Closing Date and all allocations provided for hereunder shall be made as of
the close of business on the Closing Date, except as otherwise agreed in
writing by the parties.  In no event shall the Closing be held later than
December 31, 1996 (the "Outside Closing Date").

                 7.2.     Seller's Deliveries.  At the Closing, Seller shall
deliver or cause to be delivered to Buyer the following:

                          7.2.1   Bill of Sale.  An executed Bill of Sale and 
Assignment in the form of Exhibit A;

                          7.2.2   Vehicle Titles.  Title certificates to all
vehicles included among the Assets, endorsed for transfer of title to Buyer,
and separate bills of sale therefor if required by the laws of the states in
which such vehicles are titled;

                          7.2.3   Deeds.  Executed deeds conveying to Buyer,
subject only to the permitted liens reflected on the Title Commitments, each
fee parcel of the Real Property;

                          7.2.4   Title Commitments.  Updated Title
Commitments, to the extent required to remove or insure over any Title Defects
reflected on previously delivered Title Commitments;





                                      -30-
<PAGE>   35



                          7.2.5   Officer's Certificate.  The certificate 
described in Section 6.1.1;

                          7.2.6   Consents.  The original of each Consent, to
the extent designated material on Schedule 3.7.

                          7.2.7   Franchises, Licenses, Assumed Contracts, and
Business Records.  To the extent not previously delivered, copies of all
Franchises, Licenses, Assumed Contracts, customer and subscriber lists,
blueprints, schedules, drawings, plans, projections, engineering records, and
all files and records used by Seller in connection with its operation of the
System.

                          7.2.8   Opinions of Counsel.  Opinions of (i)
Elizabeth M. Steele, Seller's counsel, addressed to Buyer and dated as of the
Closing Date, substantially in the form attached hereto as Exhibit B and (ii)
Cole, Raywid & Braverman, L.L.P., Seller's special communications counsel,
addressed to Buyer and dated as of the Closing Date, in form and substance
reasonably satisfactory to Buyer;

                          7.2.9   Assumption Agreement.  An executed
counterpart of an Assumption Agreement, substantially in the form attached
hereto as Exhibit D; and

                          7.2.10 Other Documents.  Such other documents and
instruments as shall be necessary to effect the intent of this Agreement and
consummate the transaction contemplated by this Agreement.

                 7.3.     Buyer's Obligations.  At the Closing, Buyer shall
deliver or cause to be delivered to Seller the following:

                          7.3.1   Purchase Price.  The Purchase Price, payable 
as provided in Section 2.4;

                          7.3.2   Assumption Agreement.  An executed
counterpart of an Assumption Agreement, substantially in the form attached
hereto as Exhibit D;

                          7.3.3   Officer's Certificate.  The certificate 
described in Section 6.2.1;


                                      -31-
<PAGE>   36



                          7.3.4   Opinion of Counsel.  An opinion of Samuel W.
Morris, Jr., Buyer's counsel, substantially in the form of Exhibit C, and

                          7.3.5   Other Documents.  Such other documents and
instruments as shall be necessary to effect the intent of this Agreement and
consummate the transaction contemplated by this Agreement.

                 8.       TERMINATION.

                 8.1.    Termination Events.  This Agreement may be terminated 
and the transaction contemplated by this Agreement may be abandoned:

                          8.1.1   at any time, by the mutual agreement of Buyer 
and Seller;

                          8.1.2   at any time, by either Buyer or Seller if the
other is in material breach or default of its respective covenants, agreements,
or other obligations in this Agreement, or if any of the other's
representations in this Agreement or any Transaction Document are not true and
accurate in all material respects when made or when otherwise required by this
Agreement to be true and accurate, except that the party in breach or default
shall be given notice by the other party and an opportunity to begin and a
reasonable period of time to diligently pursue a cure before the other party
shall terminate this Agreement and except that the failure of the Seller's
representations contained in Section 3.4 hereof to be true and accurate in all
material respects as of the Closing Date shall not be cause for termination of
this Agreement;

                          8.1.3   by either Buyer or Seller, upon written
notice to the other, if any of the conditions to its obligations set forth in
Sections 6.1 and 6.2, respectively, shall not have been satisfied on or before
the Outside Closing Date for any reason other than a material breach or default
by such party of its respective covenants, agreements, or other obligations
hereunder, or any of its representations herein not being true and accurate in
all material respects when made or when otherwise required by this Agreement to
be true and accurate in all material respects; or

                          8.1.4   as otherwise provided in this Agreement


                                      -32-
<PAGE>   37



 .

                 8.2.     Effect of Termination.

                          8.2.1   Without limiting any other provision of this
Section 8.2, if the transaction contemplated by this Agreement is terminated
and abandoned as provided herein:  (i) each party shall pay the costs and
expenses incurred by it in connection with this Agreement, and no party (or any
of its officers, directors, employees, agents, representatives or shareholders)
shall be liable to any other party for any costs, expenses or damages except as
expressly specified herein; (ii) each party shall redeliver all documents, work
papers and other materials of the other party relating to the transaction
contemplated hereby, whether so obtained before or after the execution hereof,
to the party furnishing the same; (iii) all confidential information received
by either party hereto shall be treated in accordance with Section 10.1 hereof;
and (iv) neither party hereto shall have any liability or further obligation to
the other party to this Agreement except (A) as stated in subparagraphs (ii)
and (iii) of this Section 8.2.1, and (B) to the extent applicable, as set forth
in Sections 8.2.2 and 8.2.3 below.

                          8.2.2   If both (i) this Agreement is terminated by
Buyer pursuant to Section 8.1 for any reason and (ii) Seller shall be in breach
in a material respect of any of its representations and warranties made herein
or its covenants or agreements made herein, then Buyer shall have as its sole
and exclusive remedy the right to seek monetary damages from Seller.

                          8.2.3   If both (i) this Agreement is terminated by
Seller pursuant to Section 8.1 for any reason and (ii) Buyer shall be in breach
in a material respect of any of its representations and warranties made herein
or its covenants or agreements made herein, then Seller shall (A) be entitled
to receive the Deposit from the Escrow Agent, and (B) have the right to seek
additional monetary damages from Buyer.

                 9.       SURVIVAL OF REPRESENTATIONS
                          AND INDEMNITY.

                 9.1.     Survival of Representations, Warranties and
Covenants.  All representations, warranties, covenants and agreements contained
in this Agreement and in any Transaction Document shall be deemed continuing
representations, warranties, covenants and agreements and shall survive the
Closing Date as specified herein.  The representations and warranties contained
in this Agreement and in any Transaction Document shall survive for a period
ending on the date which is one (1) year after the Closing Date, except for
representations and warranties set forth in Sections 3.1 (Organization and





                                      -33-
<PAGE>   38



Qualification of Seller), 3.2 (Authorization of Seller), 4.1 (Organization of
Buyer) and 4.2 (Authorization of Buyer), which shall survive indefinitely, and
the representations and warranties set forth in Section 3.6 (Title and
Condition of Personal Property) and Section 3.15 (Environmental Laws and
Regulations), which shall survive for the period of the applicable statutes of
limitations.  If Closing occurs, neither party shall have liability to the
other (for indemnification or otherwise) with respect to any representation or
warranty or any covenant, agreement or obligation to the extent required to be
performed prior to the Closing Date, unless on or prior to the end of the
applicable survival period such party is given notice of a claim with respect
thereto and specifying the factual basis of that claim in reasonable detail to
the extent then known to the claiming party.

                 9.2.     Seller's Indemnity.  Notwithstanding the Closing, and
regardless of any investigation made at any time by or on behalf of Buyer or
any information Buyer may have, Seller shall indemnify and hold Buyer, its
affiliates, officers, directors, employees, agents, and representatives, and
any Person claiming by or through any of them, as the case may be, harmless
from and against any Losses arising out of or resulting from:

                          9.2.1   all actual or purported liabilities and
obligations of Seller, and all claims and demands made in respect thereof
whether or not known or asserted at or prior to the Closing (except the Assumed
Liabilities), relating to the System;

                          9.2.2   the operation of the System prior to the 
Adjustment Time;
 
                          9.2.3   any misrepresentation, breach of warranty, or
nonfulfillment of any agreement or covenant on the part of Seller under this
Agreement or any Transaction Document; and

                          9.2.4   any failure of Buyer or Seller to comply with
the applicable notice and/or filing requirements of the New Jersey bulk sales
laws.

                          If, by reason of the claim of any third party
relating to any of the matters subject to such indemnification, a Lien,
attachment, garnishment, or execution is placed or made upon any of the
properties or assets owned or leased by Buyer or any other idemnitee under this
Section, in addition to any indemnity obligation of Seller under this Section,
Seller shall furnish a bond





                                      -34-
<PAGE>   39



sufficient to obtain the prompt release thereof within five days from receipt
of notice relating thereto.

                 9.3.     Buyer's Indemnity.  Notwithstanding the Closing, and
regardless of any investigation made at any time  by or on behalf of Seller or
any information Seller may have, Buyer shall indemnify and hold Seller, its
affiliates, officers, directors, employees, agents, and representatives, and
any Person claiming by or through any of them, as the case may be, from and
against any Losses arising out of or resulting from:

                          9.3.1   the Assumed Liabilities; and

                          9.3.2   any misrepresentation, breach of warranty, or
nonfulfillment of any agreement or covenant on the part of Buyer under this
Agreement or any Transaction Document.

                 9.4.     Procedure for Indemnified Third Party Claim.
Promptly after receipt by a party entitled to indemnification under this
Agreement (the "Indemnitee") of written notice of the assertion or the
commencement of any Litigation with respect to any matter referred to in
Sections 9.2 and 9.3, the Indemnitee shall give written notice thereof to the
party from whom indemnification is sought pursuant hereto (the "Indemnitor")
and thereafter shall keep the Indemnitor reasonably informed with respect
thereto.  Failure of the Indemnitee to give the Indemnitor notice as provided
herein shall not relieve the Indemnitor of its obligations hereunder unless the
Indemnitee's failure to give the Indemnitor timely notice materially limits or
prejudices the Indemnitor's ability to defend, in which case such failure of
the Indemnitee to give the Indemnitor notice shall relieve the Indemnitor of
its indemnification obligations.  In case any Litigation shall be brought
against any Indemnitee, the Indemnitor shall be entitled to participate in such
Litigation, such Litigation may not be settled by the Indemnitee without the
consent of the Indemnitor, and, at the request of the Indemnitee, the
Indemnitor shall assume the defense thereof with counsel mutually satisfactory
to the Indemnitor and the Indemnitee, at the Indemnitor's sole expense.  If the
Indemnitor and the Indemnitee cannot agree on the choice of a single counsel,
both the Indemnitor and the Indemnitee shall have separate counsel at the
Indemnitor's sole expense.  If the Indemnitor shall assume the defense of any
Litigation, it shall not settle the Litigation unless the settlement shall
include as an unconditional term thereof the giving by the claimant or the
plaintiff of a release of the Indemnitee, satisfactory to the Indemnitee, from
all liability with respect to such Litigation.





                                      -35-
<PAGE>   40



                 9.5.     Limitation on Indemnification.  Notwithstanding
anything else contained in this Section 9, Buyer shall not make a claim for
indemnification hereunder until the date on which Buyer's indemnification
claims equal or exceed $50,000 (the "Initial Indemnification Claim Date").  On
and after the InitialIndemnification Claim Date, Buyer may make a claim for
indemnification with respect to all claims then outstanding or thereafter
arising.

                 9.6.     Determination of Indemnification Amounts and Related
Matters.

                          9.6.1   Amounts payable by the Indemnitor to the
Indemnitee in respect of any Losses under this Section 9 shall be payable by
the Indemnitor as incurred by the Indemnitee.

                          9.6.2   In calculating amounts payable to an
Indemnitee under this Agreement, the amount of the indemnified Losses shall be
"grossed-up" by the amount of any increase in the Indemnitee's liability for
Taxes resulting from indemnification by the Indemnitor under this Agreement.

                 10.      CONFIDENTIALITY AND PRESS RELEASES.

                 10.1.    Confidentiality.  Each party shall hold in strict
confidence all documents and information concerning the other and its business
and properties (except that either party may disclose such documents and
information to any Governmental Authority reviewing the transactions
contemplated hereby or as required pursuant to any Legal Requirement), and if
the transaction contemplated hereby should not be consummated, such confidence
shall be maintained, and all such documents and information (in whatever form)
and copies thereof shall immediately thereafter be destroyed, or returned to
the party originally furnishing the same.

                 10.2.    Press Releases.  No press release or public
disclosure, either written or oral, of the existence or terms of this Agreement
shall be made by either Buyer or Seller prior to the Closing without the
consent of the other, and Buyer and Seller shall each furnish to the other
advance copies of any release which it proposes to make public concerning this
Agreement or the transactions contemplated hereby and the date upon which Buyer
or Seller, as the case may be, proposes to make such press release.  This
provision shall not, however, be construed to prohibit any party from making
any disclosures in accordance with the rules and regulations of any
Governmental Authority with which it is required to comply under any Legal
Requirement, or from filing this Agreement


                                      -36-
<PAGE>   41



with, or disclosing the terms of this Agreement to, any governmentally
regulated institutional lender to such party.

                 11.      BROKERAGE FEES.  Buyer and Seller represent and
warrant to the other that it has not incurred any obligations or liabilities,
contingent or otherwise, for brokerage or finder's fees or agent's commissions
or other like payment in connection with this Agreement or the transactions
contemplated hereby for which it will have any liability, except (i) Seller has
retained The Jones Group, Ltd. (the "Group") as its sole broker and finder in
connection with this Agreement and the transaction contemplated hereby, and
Seller has agreed to pay the entire commission of the Group and (ii) Buyer has
retained Communications Equity Associates ("CEA") as its sole broker and finder
in connection with this Agreement and the transaction contemplated hereby, and
Buyer has agreed to pay the entire commission of CEA.  Buyer shall have no
liability or responsibility for the commission payable to Group and Seller
shall have no liability or responsibility for the commission payable to CEA.
Seller shall indemnify and hold Buyer harmless against and in respect of any
breach by it of the provisions of this Section 11, and Buyer shall indemnify
and hold Seller harmless against and in respect of any breach by it of the
provisions of this Section 11.

                 12.      CASUALTY LOSSES.  The risk of any loss or damage to
the Assets resulting from fire, theft or any other casualty (except reasonable
wear and tear) shall be borne by Seller at all times prior to the Adjustment
Time.  In the event that any such loss or damage shall be sufficiently
substantial so as to preclude and prevent within 30 days from the occurrence of
the event resulting in such loss or damage resumption of normal operations of
any material portion of the System or replacement or restoration of the lost or
damaged Assets, Seller shall immediately notify Buyer in writing of its
inability to resume normal operations or to replace or restore the lost or
damaged Assets, and Buyer, at any time within 10 days after receipt of such
notice, may elect by written notice to Seller to either (i) waive such defect
and proceed toward consummation of the transaction in accordance with terms of
this Agreement, or (ii) terminate this Agreement.  If Buyer elects to terminate
this Agreement, Buyer and Seller shall stand fully released and discharged of
any and all obligations hereunder.  If Buyer shall elect to consummate the
transaction contemplated by this Agreement notwithstanding such loss or damage
and does so, all insurance proceeds payable as a result of the occurrence of
the event resulting in such loss or damage shall be delivered by Seller to
Buyer, or the rights thereto shall be assigned by Seller to Buyer if not yet
paid over to Seller.





                                      -37-
<PAGE>   42



                 13.      MISCELLANEOUS.

                 13.1.    Further Assurances.  From time to time after the
Closing, Seller shall, if requested by Buyer, make, execute and deliver to
Buyer such additional assignments, bills of sale, deeds and other instruments
of transfer, as may be necessary or proper to transfer to Buyer all of Seller's
right, title, and interest in and to the Assets.  Such efforts and assistance
shall be without cost to Buyer.

                 13.2.    Notices.  All notices, requests, demands,  and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be deemed to have been duly given if (i) mailed,
registered or certified mail, return receipt requested, postage prepaid, (ii)
delivered by hand, (iii) sent by facsimile transmission, or (iv) delivered by
courier, to the following addresses, or at such other address as a party may
designate by notice given in accordance with this Section 13.2:


                          (i)     If to Seller:


                                  Cable TV Fund 14-A, Ltd.
                                  c/o Jones Intercable, Inc.
                                  9697 East Mineral Avenue
                                  P.O. Box 3309
                                  Englewood, Colorado 80155-3309
                                  Attention:  President
                                  Facsimile: (303) 799-4675

                                  With a copy to:

                                  Jones Intercable, Inc.
                                  9697 East Mineral Avenue
                                  P.O. Box 3309
                                  Englewood, Colorado 80155-3309
                                  Attention:  General Counsel
                                  Facsimile: (303) 799-1644





                                      -38-
<PAGE>   43





                          (ii)    If to Buyer:

                                  Lenfest Atlantic, Inc.
                                  c/o The Lenfest Group
                                  202 Shoemaker Road
                                  Pottstown, Pennsylvania 19464
                                  Facsimile: (610) 327-6340

                                  With a copy to:

                                  Samuel W. Morris, Jr.
                                  Vice President-General Counsel
                                  The Lenfest Group
                                  1332 Enterprise Drive
                                  Suite 300
                                  West Chester, Pennsylvania 19380
                                  Facsimile: (610) 431-7718



                 Notices delivered personally or by courier shall be effective
upon delivery to the intended recipient.  Notices transmitted by facsimile
transmission shall be effective when confirmation of transmission is received.
Notices delivered by registered or certified mail shall be effective on the
delivery date set forth on the receipt of registered or certified mail, or
three days after deposit in the mail, whichever is earlier.

                 13.3.    Assignment; Binding Effect.  Neither party may assign
this Agreement or any interest herein without the prior written consent of the
other party, except that Buyer may assign this Agreement to any entity
controlling, controlled by or under common control with Buyer, in which case
Buyer shall have no further liability or obligation under this Agreement.
Subject to the foregoing, this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

                 13.4.    Expenses.  Each party shall bear its own expenses and
the fees and expenses of its legal counsel, accountants, and other experts
incurred in connection with the preparation of this Agreement and the
consummation of the transactions contemplated by this Agreement.

                 13.5.    Taxes.  Any sales, use, transfer or documentary taxes
imposed in connection with the sale and delivery of the Assets and rights
acquired by Buyer under this Agreement shall be paid by Buyer; provided,





                                      -39-
<PAGE>   44



however, that Seller agrees to reimburse Buyer for one-half of any such taxes
paid.

                 13.6.    Collection of Accounts.  From and after the Closing
Date, Buyer shall have the right and authority, at its expense, to collect for
its account all items to which it is entitled as provided in this Agreement and
to endorse with the name of Seller any checks or drafts received on account of
any such items.

                 13.7.    Entire Agreement; Amendments; Waivers.  This
Agreement merges all previous negotiations between the parties hereto and
constitutes the entire agreement and understanding between the parties with
respect to the subject matter of this Agreement.  No alteration, modification
or change of this Agreement shall be valid except by an agreement in writing
executed by the parties hereto.  No failure or delay by any party in exercising
any right, power or privilege hereunder (and no course of dealing between or
among any of the parties) shall operate as a waiver of any such right, power,
or privilege.  No waiver of any default on any one occasion shall constitute a
waiver of any subsequent or other default.  No single or partial exercise of
any such right, power, or privilege shall preclude the further or full exercise
thereof.

                 13.8.    Counterparts.  This Agreement may be executed in one
or more counterparts with the same effect as if all of the signatures on such
counterparts appeared on one document.  All executed counterparts shall
together constitute one and the same agreement.

                 13.9.    Severability.  If any provision of this Agreement or
the application thereof to any Person or circumstance shall be invalid or
unenforceable to any extent, the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by law.

                 13.10.    Schedules and Exhibits; Headings.  All references
herein to Schedules and Exhibits are to the Schedules and Exhibits attached
hereto, which shall be incorporated in and constitute a part of this Agreement
by such reference.  The headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning of this
Agreement.

                 13.11.    Governing Law.  The validity, performance, and
enforcement of this Agreement and all Transaction Documents, unless expressly
provided to the contrary, shall be governed by the laws of the State of New
Jersey, without giving effect to the principles of conflicts of law of such
State.





                                      -40-
<PAGE>   45



                 13.12.    Third Parties; Joint Ventures.  This Agreement
constitutes an agreement solely among the parties hereto, and, except as
otherwise provided herein, is not intended to and will not confer any rights,
remedies, obligations, or liabilities, legal or equitable, including any right
of employment, on any Person (including but not limited to any employee or
former employee of Seller) other than the parties hereto and their respective
successors, or assigns, or otherwise constitute any Person a third party
beneficiary under or by reason of this Agreement.  Nothing in this Agreement,
expressed or implied, is intended to or shall constitute the parties hereto
partners or participants in a joint venture.

                 13.13.    Construction.  This Agreement has been negotiated by
Buyer and Seller and their respective legal counsel, and legal or equitable
principles that might require the construction of this Agreement or any
provision of this Agreement against the party drafting this Agreement shall not
apply in any construction or interpretation of this Agreement.

                 13.14.    Attorneys' Fees.  Notwithstanding any other
provision of this Agreement, the prevailing party in any Litigation between
Seller and Buyer with respect to this Agreement or the transactions
contemplated hereby shall be entitled to recover from the nonprevailing party
its reasonable attorneys' fees and costs of the Litigation.

                 IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above.


                                        SELLER:

                                        CABLE TV FUND 14-A, LTD.,
                                        a Colorado limited partnership

                                        By:  JONES INTERCABLE, INC.,
                                             a Colorado corporation,
                                             its general partner


                                             By:   /s/ KEVIN P. COYLE
                                                ------------------------------
                                                   Kevin P. Coyle
                                                   Group Vice President/Finance


                                      -41-
<PAGE>   46



<TABLE>
<CAPTION>
                                        BUYER:
<S>                                     <C>   
                                        LENFEST ATLANTIC, INC.,
                                        a New Jersey corporation


                                        By: ------------------------------
                                            H.F. (Gerry) Lenfest
                                            President
</TABLE>


                                      -42-
<PAGE>   47

                                  EXHIBIT A TO
                            ASSET PURCHASE AGREEMENT
                                    BETWEEN
                            CABLE TV FUND 14-A, LTD.
                                      AND
                             LENFEST ATLANTIC, INC.

                       ------------------------------

                     [Form of Bill of Sale and Assignment]


                 THIS BILL OF SALE AND ASSIGNMENT, dated as of ______, 1996, is
given by Cable TV Fund 14-A, Ltd., a Colorado limited partnership ("Seller"),
to Lenfest Atlantic, Inc., a New Jersey corporation ("Buyer").

                                    RECITALS

                 Seller and Buyer have entered into an Asset Purchase Agreement
dated as of March __, 1996 (as amended from time to time, the "Agreement") that
provides, among other things, for the assignment and transfer by Seller to
Buyer of substantially all of the tangible and intangible assets of Seller's
cable television system based in Turnersville, New Jersey and serving
Washington and Monroe Townships in Gloucester County, Winslow and Waterford
Townships and the Borough of Chesilhurst in Camden County and Folsom and Buena
Vista Townships in Atlantic County, all in the State of New Jersey (the
"System").  All capitalized terms not defined herein shall have the meanings
ascribed to them in the Agreement.

                                   AGREEMENTS

                 For good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, Seller conveys, assigns, transfers and
delivers to Buyer, free and clear of all Liens (except Liens for ad valorem
Taxes not yet due and payable), and with full warranties of title and with full
substitution and subrogation to all rights and actions of warranty against all
preceding owners, all right, title and interest of Seller in all of the Assets,
excluding the Excluded Assets, but including the following:

                 (a)      All of the equipment, plant, inventory, spare parts,
supplies and other tangible personal property that are owned or leased by
Seller and used





<PAGE>   48
or useful as of the date hereof in the conduct of the business or operations of
the System, including, without limitation, the items described on Exhibit A.

                 (b)      All of the fee estates and buildings and other
improvements thereon, leasehold interests in real estate, private easements,
private rights to access, private rights-of-way, and other real property
interests that are owned or leased by Seller and used or useful, as of the date
hereof, in the conduct of the business or operations of the System, including,
without limitation, the interests described on Exhibit B.

                 (c)      All municipal, county and state franchises, franchise
applications (if any), authorizations and permits relating to the System,
including, without limitation, the items described on Exhibit C.

                 (d)      The leases, private easements, private rights-of-way,
multiple dwelling unit agreements, programming agreements that are specific to
the System, retransmission consent agreements that are specific to the System,
must carry notifications, pole attachment and conduit agreements, subscriber
agreements and other agreements described on Exhibit D.

                 (e)      All rights of Seller to payment for services rendered
by Seller prior to the date hereof in connection with the operation of the
System, as reflected on the billing records of Seller.

                 (f)      All domestic satellite, business radio, CARS,
microwave and other licenses, and all authorizations and permits relating to
the System granted to Seller by any Governmental Authority, except any public
easements or rights-of-way related thereto, including without limitation the
items described on Exhibit E.

                 (g)      All of Seller's proprietary information, technical
information and data, machinery and equipment warranties, maps, computer discs
and tapes, plans, diagrams, blueprints and schematics relating to the System,
including filings with the FCC.

                 (h)      All books and records relating to the business or
operations of the System.

                 (i)      The goodwill and going concern value generated by
Seller with respect to the System.





<PAGE>   49
                 (j)      All intangible assets of Seller relating to the
System not specifically described above.

                 TO HAVE AND TO HOLD the Assets unto Buyer, its successors and
assigns, forever, and Seller hereby warrants and agrees to defend title to the
same against all lawful claims of any Person.

                 Seller shall execute and deliver to Buyer such further
instruments of conveyance as may be reasonably necessary to convey the Assets.

                 This Bill of Sale and Assignment is executed and delivered
pursuant to the Agreement, subject to the covenants, representations,
warranties and other provisions thereof.  No provisions set forth in this Bill
of Sale and Assignment shall be deemed to enlarge, alter or amend the terms or
provisions of the Agreement.

                 Seller has executed this Bill of Sale and Assignment as of the
date first above written.


                                    CABLE TV FUND 14-A, LTD.,
                                    a Colorado limited partnership

                                    By:  Jones Intercable, Inc.,
                                         a Colorado corporation,
                                         its general partner



                                         By:
                                            ------------------------------
                                             James B. O'Brien
                                             President






<PAGE>   50






                                  EXHIBIT B TO
                            ASSET PURCHASE AGREEMENT
                                    BETWEEN
                            CABLE TV FUND 14-A, LTD.
                                      AND
                             LENFEST ATLANTIC, INC. 

                       ------------------------------

                      [Jones Intercable, Inc. Letterhead]


                                _________, 1996


Lenfest Atlantic, Inc.
c/o The Lenfest Group
202 Shoemaker Road
Pottstown, Pennsylvania 19464

                 Re:      Asset Purchase Agreement dated March __, 1996 (the
                          "Agreement"), between Cable TV Fund 14-A, Ltd., a
                          Colorado limited partnership ("Seller"), and Lenfest
                          Atlantic, Inc., a New Jersey corporation ("Buyer")

Ladies and Gentlemen:

                 I am General Counsel of Jones Intercable, Inc., a Colorado
corporation ("Jones") that is the general partner of Seller, and I have acted
as counsel to Seller in connection with the transactions contemplated by the
Agreement.  This opinion is being delivered to you pursuant to Section 7.2.8 of
the Agreement.  Capitalized terms used herein and not otherwise defined herein
shall have the same meanings assigned to them in the Agreement.

                 In my capacity as counsel to Seller, I or persons under my
supervision have examined the Agreement, including the Schedules and Exhibits
thereto, and such other records, agreements, instruments, certificates and
matters as I have considered necessary for the purpose of this opinion.  As to
certain factual matters, I have relied on certificates and oral confirmations
issued
<PAGE>   51
Lenfest Atlantic, Inc.
c/o The Lenfest Group
________, 1996
Page 2




or given by public officials, and on documents and information furnished to me
by appropriate corporate officers of Jones.

                 In such examination, I have assumed the genuineness of all
signatures, other than the signatures of the officers of Jones, the
authenticity of all documents submitted to me as originals, the conformity with
original documents of all documents submitted to me as certified, telecopied,
photostatic or reproduced copies, and the authenticity of such latter
documents.  I have also assumed that the Agreement and each and every other
document and instrument executed and delivered to Seller by Buyer have been
duly authorized by all necessary action on the part of Buyer, have been duly
executed and delivered by authorized agents of Buyer and constitute the legal,
valid and binding obligations of Buyer, enforceable against Buyer in accordance
with their respective terms.

                 I am qualified to practice law in the State of Colorado only
and do not purport to express an opinion concerning the laws of any
jurisdiction other than the internal laws of the State of Colorado and the
United States federal law (except that no opinion is expressed herein with
respect to the Communications Act of 1934, as amended, or the rules,
regulations and orders promulgated or issued by the Federal Communications
Commission thereunder).  I am expressing no opinion herein as to whether a
court would apply Colorado law to any particular aspect of the subject matter
hereof.  To the extent that the laws of any other state purport to govern the
documents referenced herein, you may rely on my opinion with respect to such
laws to the extent that the laws of such state or states are substantially the
same as the laws of the State of Colorado, as to which sameness I express no 
opinion.

                 The opinion set forth in numbered paragraph 2 below relating
to the enforceability of the Agreement is subject to the following limitation:
such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting creditors' rights generally and the
application of general principles of equity (regardless of whether considered
in a proceeding in equity or at law), and constitutional, statutory, common law
or judicial requirements of notice and due process.

<PAGE>   52
Lenfest Atlantic, Inc.
c/o The Lenfest Group
_________, 1996
Page 3




                 Based upon and subject to the foregoing and any other
qualifications stated herein, I am of the opinion that:

                 1.       Seller is a limited partnership duly organized,
validly existing and in good standing under the laws of the State of Colorado.
Seller has all requisite partnership power and authority to own or lease its
assets, to own and operate the System and to conduct its activities and to
carry on the business of the System as such activities and business are
currently conducted.  Seller is duly qualified or licensed to do business as a
foreign limited partnership and is in good standing in the State of New Jersey.

                 2.       Seller has full partnership power and authority to
execute, deliver and perform the Agreement and to consummate the transactions
contemplated thereby.  The execution, delivery and performance of the Agreement
and the consummation of the transactions contemplated thereby on the part of
Seller have been duly and validly authorized and approved by all necessary
action on the part of Seller, including appropriate resolutions of the Board of
Directors of Jones.  The Agreement has been duly and validly executed and
delivered by Seller, and is the valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms.

                 3.       Except as set forth on the Schedules to the
Agreement, the execution, delivery and performance by Seller of the Agreement
does not and will not:  (i) violate any provision of any Legal Requirement of
Seller; (ii) conflict with or violate any of the provisions of the Limited
Partnership Agreement of Seller; or (iii) conflict with, result in a breach of
or constitute a default under any agreement or instrument to which Seller is a
party or by which Seller or the Assets is bound.

                 This opinion is rendered to you in connection with the
transactions contemplated by the Agreement and is not to be quoted in whole or
in part or otherwise referred to in any of your financial statements or other
public releases, nor is it to be filed with any Governmental Authority or any
Person without my prior written consent.  I assume no obligation to advise you
of any changes in the opinion set forth herein which may come to my attention
after the date hereof.  This opinion may not be relied on by any other Person
or for any
<PAGE>   53
Lenfest Atlantic, Inc.
c/o The Lenfest Group
_________,1996
Page 4




purpose whatsoever other than the consummation of the transactions contemplated
by the Agreement.

                                    Very truly yours,



                                    Elizabeth M. Steele
<PAGE>   54
                                  EXHIBIT C TO
                            ASSET PURCHASE AGREEMENT
                                    BETWEEN
                            CABLE TV FUND 14-A, LTD.
                                      AND
                             LENFEST ATLANTIC, INC.

                     [Letterhead of Lenfest Atlantic, Inc.]


                 (a)      Buyer is a corporation duly incorporated and
organized, validly existing and in good standing under the laws of the State of
New Jersey and has all requisite corporate power and authority to execute,
deliver and perform the Asset Purchase Agreement according to its terms.

                 (b)      The Asset Purchase Agreement has been duly authorized
and approved on behalf of Buyer by all necessary corporate action.

                 (c)      The Asset Purchase Agreement has been duly executed
and delivered by Buyer and constitutes the legal, valid and binding obligation
of Buyer, enforceable against Buyer in accordance with its terms, except in
each case:  the enforceability of the Asset Purchase Agreement may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws and
principles of equity and public policy affecting creditors' rights generally.

                 (d)      Neither the execution, delivery and performance by
Buyer of the Asset Purchase Agreement, nor the consummation by Buyer of the
transactions contemplated thereby, will constitute a violation of or conflict
with or result in any breach of or default under the terms, conditions or
provisions of any material agreement or instrument known to me to which Buyer
is a party or by which it is bound.

[Buyer's counsel's opinion delivered at Closing shall contain customary
introductions and qualifications not reflected herein, all in form and
substance reasonably satisfactory to Seller.]
<PAGE>   55

                                  EXHIBIT D TO
                            ASSET PURCHASE AGREEMENT
                                    BETWEEN
                            CABLE TV FUND 14-A, LTD.
                                      AND
                             LENFEST ATLANTIC, INC.

                        ------------------------------
 
                        [Form of Assumption Agreement]


         THIS ASSUMPTION AGREEMENT is entered into on __________, 1996,
between Lenfest Atlantic, Inc., a New Jersey corporation ("Buyer"), and Cable TV
Fund 14-A, Ltd., a Colorado limited partnership ("Seller").

         WHEREAS, pursuant to the Asset Purchase Agreement dated as of March
____, 1996 (as amended from time to time, the "Purchase Agreement") between
Buyer and Seller, Seller has agreed to convey, assign and transfer to Buyer
substantially all of the assets of Seller's cable television system based in
Turnersville, New Jersey and serving Washington and Monroe Townships in
Gloucester County, Winslow and Waterford Townships and the Borough of
Chesilhurst in Camden County and Folsom and Buena Vista Townships in Atlantic
County, all in the State of New Jersey (the "System"); and

         WHEREAS, as further consideration for the sale to Buyer of the System,
the Purchase Agreement requires that Buyer assume as of the Closing Date (as
defined in the Purchase Agreement) and agree to pay and discharge when due,
certain liabilities and obligations of Seller relating to the System, all as
more specifically described in the Purchase Agreement. All capitalized terms
not defined herein shall have the meanings ascribed to them in the Purchase
Agreement.

         NOW, THEREFORE, in consideration of the sale, conveyance, assignment,
transfer and delivery of the System by Seller to Buyer and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Buyer and Seller agree as follows:

         1.      ASSIGNMENT. Seller does hereby sell, convey, assign, transfer
and deliver to Buyer, its successors and assigns, all the respective right,
title and interest of Seller in and to the Franchises, Licenses and Contracts.
<PAGE>   56
         2.      ASSUMPTION OF LIABILITIES. As of the Closing Date, Buyer
hereby assumes, and shall pay, discharge and perform the following: (i) all
liabilities and obligations with respect to the acts, omissions or events
occurring subsequent to the Closing Date under any Franchise, License or
Contract; (ii) other obligations and liabilities of Seller only to the extent
there was an adjustment in favor of Buyer with respect thereto pursuant to
Section 2.7 of the Purchase Agreement; and (iii) all obligations and
liabilities arising out of Buyer's ownership of the Assets or operation of the
System after the Closing Date.

         3.      RETENTION OF RIGHTS.  Nothing contained herein shall be deemed
to alter, modify, expand or diminish the terms and provisions set forth in the
Purchase Agreement, including the representations, warranties and covenants of
the parties contained therein.

         IN WITNESS WHEREOF, the parties have caused this Assumption Agreement
to be executed in their respective names and attested to by their duly
authorized officers as of the date first above written.

                                           
                                     CABLE TV FUND 14-A, LTD.,                  
                                     a Colorado limited partnership             
                                     
                                     By: Jones Intercable, Inc.,                
                                         a Colorado corporation,           
                                         its general partner               
                                     
                                         By:                               
                                                 ------------------------------ 
                                                      James B. O'Brien          
                                                      President           



                                     LENFEST ATLANTIC, INC.,
                                     a New Jersey corporation

                                     By:
                                        ------------------------------
                                        H.F. (Gerry) Lenfest
                                        President

<TABLE> <S> <C>

<ARTICLE> 5
       
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<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             JAN-01-1995
<PERIOD-END>                               DEC-31-1995
<CASH>                                         293,179
<SECURITIES>                                         0
<RECEIVABLES>                                1,328,715
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                                0
                                          0
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