Document:

EXH 10.3 CHTR 4.21.15 8K

EXHIBIT 10.3

CCO HOLDINGS, LLC
CCO HOLDINGS CAPITAL CORP.

$800,000,000 5.875% SENIOR NOTES DUE 2027
EXCHANGE AND REGISTRATION RIGHTS AGREEMENT
April 21, 2015
Credit Suisse Securities (USA) LLC
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
As representatives (“Representatives”) of the Purchasers 
c/o Credit Suisse Securities (USA) LLC
Eleven Madison Avenue
New York, New York 10010
Ladies and Gentlemen:
CCO Holdings, LLC, a Delaware limited liability company (the “Company”), and CCO Holdings Capital Corp., a Delaware corporation (“CCOH” and, together with the Company, the “Issuers”), propose, subject to the terms and conditions stated herein, to issue and sell to the Purchasers (as defined herein) upon the terms set forth in the Purchase Agreement (as defined herein) $800,000,000 aggregate principal amount of their 5.875% Senior Notes due 2027 (the “Notes”) on April 15, 2015, which will be guaranteed by Charter Communications, Inc., a Delaware corporation (the “Guarantor”).  In satisfaction of a condition to the obligations of the Purchasers under the Purchase Agreement, the Issuers and the Guarantor agree with the Purchasers for the benefit of holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as follows:
SECTION 1.    Certain Definitions.  For purposes of this Exchange and Registration Rights Agreement, the following terms shall have the following respective meanings:

“Agreement” shall mean this Exchange and Registration Rights Agreement.
“Base Indenture” shall mean the Indenture dated as of November 5, 2014 among the Issuers, the Guarantor, CCOH Safari, LLC and the Trustee.
“Base Interest” shall mean the interest that would otherwise accrue on the Notes under the terms thereof and the Indenture, without giving effect to the provisions of this Agreement.

“broker-dealer” shall mean any broker or dealer registered with the Commission under the Exchange Act.
“CCOH” shall have the meaning assigned thereto in the introductory paragraph hereto.
“Closing Date” shall mean April 21, 2015.  
“Commission” shall mean the United States Securities and Exchange Commission, or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose.
“Company” shall have the meaning assigned thereto in the introductory paragraph hereto.
“Conduct Rules” shall have the meaning assigned thereto in Section 3(e)(xix) hereof.
“Effective Time,” in the case of (i) an Exchange Offer Registration, shall mean the time and date as of which the Commission declares the Exchange Offer Registration Statement effective or as of which the Exchange Offer Registration Statement otherwise becomes effective and (ii) a Shelf Registration, shall mean the time and date as of which the Commission declares the Shelf Registration Statement effective or as of which the Shelf Registration Statement otherwise becomes effective.
“Electing Holder” shall mean any holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire to the Issuers in accordance with Section 3(e)(ii) or 3(e)(iii) hereof.
“Exchange Act” shall mean the Securities Exchange Act of 1934, or any successor thereto, and the rules, regulations and forms promulgated thereunder, all as the same shall be amended from time to time.
“Exchange Date” shall have the meaning assigned thereto in Section 2(a) hereof.
“Exchange Notes” shall mean the Notes substantially identical in all material respects as the Notes under the Indenture as the Registrable Securities (and are entitled to the benefits of the Indenture which shall be qualified under the Trust Indenture Act), except that they have been registered pursuant to an effective registration statement under the Securities Act and do not contain provisions for the additional interest contemplated in Section 2(c) hereof, to be issued to holders in exchange for Registrable Securities.
“Exchange Offer” shall have the meaning assigned thereto in Section 2(a) hereof.
“Exchange Offer Registration” shall have the meaning assigned thereto in Section 3(c) hereof.

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“Exchange Offer Registration Statement” shall have the meaning assigned thereto in Section 2(a) hereof.
“Exchanging Dealer” shall have the meaning assigned thereto in Section 6(a) hereof.
“Fifth Supplemental Indenture” shall mean the fifth supplemental indenture to the Base Indenture, dated as of the Closing Date, by and among the Issuers, the Guarantor and the Trustee, relating to the Notes.
“FINRA” shall have the meaning assigned thereto in Section 3(e)(xix) hereof.
“Guarantor” shall have the meaning assigned thereto in the introductory paragraph hereto.
“holder” shall mean, unless the context otherwise indicates, each of the Purchasers and other persons who acquire Registrable Securities from time to time (including, without limitation, any successors or assigns), in each case for so long as such person is a registered holder of any Registrable Securities.
“Indenture” shall mean the Base Indenture, as supplemented by the Fifth Supplemental Indenture, as the same shall be amended from time to time.
“Issuers” shall have the meaning assigned thereto in the introductory paragraph hereto. 
“Losses” shall have the meaning assigned thereto in Section 6(d) hereof.
“Notes” shall have the meaning assigned thereto in the introductory paragraph hereto and shall include any Notes issued in exchange therefor or in lieu thereof pursuant to the Indenture.
“Notice and Questionnaire” shall mean a Notice of Registration Statement and Selling Securityholder Questionnaire substantially in the form of Exhibit A hereto.
“Parent Companies” shall mean, collectively, (i) the Guarantor, (ii) CCI Exchange I, Inc., a Delaware corporation, (iii) Charter Investment, Inc., a Delaware corporation, (iv) Charter Communications Holding Company, LLC, a Delaware limited liability company, (v) Charter Communications Holdings, LLC, (vi) CCH I, LLC, a Delaware limited liability company and (vii) CCH II, LLC, a Delaware limited liability company.
“person” shall mean a corporation, association, partnership, organization, limited liability company, business, individual, government or political subdivision thereof or governmental agency.
“Purchase Agreement” shall mean the Amended and Restated Purchase Agreement, dated April 15, 2015, among the Representatives, the Issuers and the Guarantor relating to the Notes.

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“Purchasers” shall mean the Purchasers named in Schedule I to the Purchase Agreement.
“Registrable Securities” shall mean the Notes (and to the extent set forth in clause (i) of this definition and in Section 2(d) hereof, certain Exchange Notes); provided, however, that a Note or Exchange Note shall cease to be a Registrable Security when (i) in the circumstances contemplated by Section 2(a) hereof, such Note has been exchanged for an Exchange Note in an Exchange Offer as contemplated in Section 2(a) hereof (provided that any Exchange Note that, pursuant to the penultimate sentence of Section 2(a), is included in a prospectus for use in connection with resales by broker-dealers shall be deemed to be a Registrable Security with respect to Sections 5, 6 and 9 hereof until resale of such Registrable Security has been effected within the 180-day period referred to in Section 2(a)(y)); (ii) in the circumstances contemplated by Section 2(b) hereof, a Shelf Registration Statement registering such Note or Exchange Note under the Securities Act has been declared or becomes effective and such Note or Exchange Note has been sold or otherwise transferred by the holder thereof pursuant to and in a manner contemplated by such effective Shelf Registration Statement; (iii) such Note or Exchange Note is sold pursuant to Rule 144 under circumstances in which any legend borne by such Note or Exchange Note relating to restrictions on transferability thereof, under the Securities Act or otherwise, is removed by the Issuers pursuant to the Indenture; (iv) such Note or Exchange Note is eligible to be sold without restriction as to volume pursuant to Rule 144 by a Person that is not an “affiliate” (within the meaning of Rule 405); or (v) such Note or Exchange Note shall cease to be outstanding.
“Registration Default” shall have the meaning assigned thereto in Section 2(c) hereof.
“Registration Default Period” shall have the meaning assigned thereto in Section 2(c) thereof.
“Registration Expenses” shall have the meaning assigned thereto in Section 4 hereof.
“Representatives” shall have the meaning assigned thereto in the addressee block hereto. 
“Resale Period” shall have the meaning assigned thereto in Section 2(a) hereof.
“Restricted Holder” shall mean (i) a holder that is an affiliate of the Issuers within the meaning of Rule 405, (ii) a holder who acquires Exchange Notes outside the ordinary course of such holder’s business, (iii) a holder who has arrangements or understandings with any person to participate in the Exchange Offer for the purpose of distributing Exchange Notes and (iv) a holder that is a broker-dealer, but only with respect to Exchange Notes received by such broker-dealer pursuant to an Exchange Offer in exchange for Registrable Securities acquired by the broker-dealer directly from the Issuers.

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“Rule 144,” “Rule 405” and “Rule 415” shall mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time.
“Securities Act” shall mean the Securities Act of 1933, or any successor thereto, and the rules, regulations and forms promulgated thereunder, all as the same shall be amended from time to time.
“Shelf Filing Deadline” shall have the meaning assigned thereto in Section 2(b) hereof.
“Shelf Registration” shall have the meaning assigned thereto in Section 2(b) hereof.
“Shelf Registration Statement” shall have the meaning assigned thereto in Section 2(b) hereof.
“Special Interest” shall have the meaning assigned thereto in Section 2(c) hereof.
“Transfer Restricted Notes” shall have the meaning assigned thereto in Section 2(c) hereof.
“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, or any successor thereto, and the rules, regulations and forms promulgated thereunder, all as the same shall be amended from time to time.
“Trustee” shall mean The Bank of New York Mellon Trust Company, N.A., as trustee under the Indenture.
Unless the context otherwise requires, any reference herein to a “Section” or “clause” refers to a Section or clause, as the case may be, of this Agreement, and the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision.  Any reference herein to “Notes” or “Exchange Notes,” refers also to any guarantees thereof by the Guarantor (subject to Section 10 hereof) and any other guarantors required to guarantee such notes pursuant to the Indenture.
SECTION 2.    Registration Under the Securities Act.

(a)Except as set forth in Section 2(b) below, the Issuers and the Guarantor agree to file under the Securities Act, as soon as practicable a registration statement relating to an offer to exchange (such registration statement, the “Exchange Offer Registration Statement,” and such offer, the “Exchange Offer”) any and all of such Notes for a like aggregate principal amount of Exchange Notes.  The Issuers and the Guarantor agree to use their reasonable best efforts to cause the Exchange Offer Registration Statement to become or be declared effective under the Securities Act as soon as practicable after the Closing Date.  The Exchange Offer will be registered under the Securities Act on the appropriate form and will comply with the Exchange Act.  The Issuers and the Guarantor further agree to use their reasonable best efforts to complete the Exchange Offer not later than 540 days following the Closing Date (or if such 540th day is 

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not a business day, the next succeeding business day) (the “Exchange Date”) and to exchange Exchange Notes for all Registrable Securities that have been properly tendered and not withdrawn on or prior to the expiration of the Exchange Offer.  The Issuers and the Guarantor shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable United States federal and state securities laws to complete the Exchange Offer; provided, however, that in no event shall such period be less than 20 business days after the date notice of the Exchange Offer is mailed to holders.  The Exchange Offer will be deemed to have been completed only if the Exchange Notes received by holders, other than Restricted Holders, in the Exchange Offer in exchange for Registrable Securities are, upon receipt, transferable by each such holder without restriction under the Securities Act and the Exchange Act and without material restrictions under the blue sky or securities laws of a substantial majority of the States of the United States of America.  The Exchange Offer shall be deemed to have been completed upon the earlier to occur of (i) the Issuers having exchanged the Exchange Notes for all outstanding Registrable Securities pursuant to the Exchange Offer and (ii) the Issuers having exchanged, pursuant to the Exchange Offer, Exchange Notes for all Registrable Securities that have been properly tendered and not withdrawn before the expiration of the Exchange Offer.  The Issuers and the Guarantor agree (x) to include in the Exchange Offer Registration Statement a prospectus for use in any resales by any holder of Exchange Notes that is a broker-dealer and identifies itself as such by written notice to the Issuers prior to the effectiveness of the Exchange Offer Registration Statement and (y) to keep such Exchange Offer Registration Statement effective for a period (the “Resale Period”) beginning when Exchange Notes are first issued in the Exchange Offer and ending upon the earlier of the expiration of the 180th day after the Exchange Offer has been completed or such time as such broker-dealers no longer own any Registrable Securities.  With respect to such Exchange Offer Registration Statement, such holders shall have the benefit of the rights of indemnification and contribution set forth in Sections 6(a), (c), (d) and (e) hereof.

(b)If (i) on or prior to the time the Exchange Offer is completed existing law or Commission policy or interpretations are changed such that the Exchange Notes received by holders, other than Restricted Holders, in the Exchange Offer in exchange for Registrable Securities are not or would not be, upon receipt, transferable by each such holder without restriction under the Securities Act, (ii) the Exchange Offer has not been completed by the Exchange Date, (iii) any Purchaser so requests with respect to Registrable Securities that are not eligible to be exchanged for Exchange Notes in the Exchange Offer and that are held by it following the consummation of the Exchange Offer, or (iv) the Exchange Offer is not available to any holder (other than a Purchaser) which notifies the Issuers in writing, then, in each case, the Issuers and the Guarantor shall, in lieu of (or, in the case of clause (iii) or (iv), in addition to) conducting the Exchange Offer contemplated by Section 2(a), file a “shelf” registration statement in accordance with the remainder of this Section 2(b) below, under the Securities Act with respect to Notes that could not be exchanged for any reason set forth in clauses (i) through (iv) above.  The Issuers and the Guarantor shall, on or prior to 30 business days after the time such obligation to file arises, file a “shelf” registration statement providing for the registration of, and the sale on a continuous or delayed basis by the holders of, all the Registrable Securities, pursuant to Rule 415 or any similar rule that may be adopted by the Commission (such filing, the “Shelf Registration” and such registration statement, the “Shelf Registration Statement”).  The Issuers and the Guarantor agree to use their reasonable best efforts (x) to cause the Shelf Registration Statement to become or be declared effective by the Commission on or prior to the later of 540 days (or if 

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such 540th day is not a business day, the next succeeding business day) following the Closing Date and the 90th day (or if such 90th day is not a business day, the next succeeding business day) after the date such filing obligations arises (the “Shelf Filing Deadline”) and to keep such Shelf Registration Statement continuously effective for a period ending on the earlier of (i) the second anniversary of the Effective Time or (ii) such time as there are no longer any Registrable Securities outstanding; provided, however, that no holder (other than a Purchaser) shall be entitled to be named as a selling securityholder in the Shelf Registration Statement or to use the prospectus forming a part thereof for resales of Registrable Securities unless such holder is an Electing Holder, and (y) after the Effective Time of the Shelf Registration Statement, promptly upon the request of any holder of Registrable Securities that is not then an Electing Holder, to take any action reasonably necessary to enable such holder to use the prospectus forming a part thereof for resales of Registrable Securities, including, without limitation, any action necessary to identify such holder as a selling securityholder in the Shelf Registration Statement; provided, however, that nothing in this clause (y) shall relieve any such holder of the obligation to return a completed and signed Notice and Questionnaire to the Issuers in accordance with Section 3(e)(iii) hereof.  The Issuers and the Guarantor further agree to supplement or make amendments to the Shelf Registration Statement, as and when required by the rules, regulations or instructions applicable to the registration form used by the Issuers and the Guarantor for such Shelf Registration Statement or by the Securities Act for shelf registration, and the Issuers and the Guarantor agree to furnish to each Electing Holder copies of any such supplement or amendment prior to its being used or promptly following its filing with the Commission.

(c)In the event that (i) the Shelf Registration Statement has not become effective or been declared effective by the Commission on or prior to the Shelf Filing Deadline, (ii) the Exchange Offer has not been completed on or prior to the Exchange Date, (iii) the Exchange Offer Registration Statement required by Section 2(a) hereof is filed and becomes or is declared effective but thereafter shall either be withdrawn by the Issuers and the Guarantor or shall become subject to an effective stop order issued pursuant to Section 8(d) of the Securities Act suspending the effectiveness of such registration statement (except as specifically permitted herein) without being succeeded immediately by an additional registration statement filed and declared effective, in each case prior to the completion of the Exchange Offer or (iv) the Shelf Registration Statement required by Section 2(b) hereof is filed and becomes or is declared effective but shall thereafter either be withdrawn by the Issuers and the Guarantor or shall become subject to an effective stop order issued pursuant to Section 8(d) of the Securities Act suspending the effectiveness of such registration statement (except as specifically permitted herein) without being succeeded immediately by an additional registration statement filed and declared effective (each such event referred to in clauses (i) through (iv), a “Registration Default” and each period during which a Registration Default has occurred and is continuing, a “Registration Default Period”), then, as liquidated damages for such Registration Default, subject to the provisions of Section 9(b), special interest (“Special Interest”), in addition to the Base Interest, shall accrue on the aggregate principal amount of the outstanding Transfer Restricted Notes (as defined below) affected by such Registration Default at a per annum rate of 0.25% for the first 90 days of the Registration Default Period and at a per annum rate of 0.50% thereafter for the remaining portion of the Registration Default Period, commencing on (A) the 90th day after the filing of such Shelf Registration Statement was required, in the case of clause (i) above (but in no event prior to the 540th day after the original issue date of the Notes), (B) the 540th day after the original issue 

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date of the Notes, in the case of clause (ii) above, (C) the day such Exchange Offer Registration Statement ceases to be effective, in the case of clause (iii) above and (D) the day such Shelf Registration Statement ceases to be effective, in the case of clause (iv) above.  Following the cure of all Registration Defaults relating to particular Transfer Restricted Notes (which shall be the Effective Time of the Shelf Registration Statement in the case of clause (i) above, the date of the completion of the Exchange Offer, in the case of clause (ii) above, the date that the Exchange Offer Registration Statement again becomes effective, in the case of clause (iii) above, and the date that the Shelf Registration Statement again becomes effective, in the case of clause (iv) above), the interest rate borne by the relevant Transfer Restricted Notes will be reduced to the original interest rate borne by such Transfer Restricted Notes; provided, however, that, if after any such reduction in interest rate, a different Registration Default occurs, the interest rate borne by the relevant Transfer Restricted Notes shall again be increased pursuant to the foregoing provisions.  All accrued Special Interest shall be paid in cash by the Issuers and the Guarantor on each Interest Payment Date (as defined in the Indenture).  For purposes of this Agreement, “Transfer Restricted Notes” shall mean, with respect to any Registration Default, any Notes or Exchange Notes which have not ceased being Registrable Securities pursuant to the definition thereof in Section 1 of this Agreement.  Notwithstanding anything contained herein, (i) Special Interest shall be the sole and exclusive remedy with respect to a Registration Default and (ii) the Issuers and the Guarantor shall only have obligations hereunder with respect to Registrable Securities existing on the 366th day after the date hereof.

(d)If any Purchaser determines that it is not eligible to participate in the Exchange Offer with respect to the exchange of Registrable Securities constituting any portion of an unsold allotment, at the request of such Purchaser, then, subject to any prohibitions or restrictions imposed by any applicable law or regulations, the Issuers and the Guarantor shall use their commercially reasonable efforts to issue and deliver to such Purchaser, in exchange for such Registrable Securities, a like principal amount of Exchange Notes.  Such issuance shall not be deemed to be part of the Exchange Offer.  The Issuers and the Guarantor shall use their commercially reasonable efforts to cause the CUSIP Service Bureau to issue the same CUSIP number for Exchange Notes described in this Section 2(d) as for Exchange Notes issued pursuant to the Exchange Offer.  Any such Exchange Notes shall, at the time of issuance, and subject to the limitations set forth in Section 1 hereof, constitute Registrable Securities for purposes of this Agreement (other than Section 2(a) hereof).

(e)The Issuers and the Guarantor shall use their reasonable best efforts to take all actions necessary or advisable to be taken by them to ensure that the transactions contemplated herein are effected as so contemplated in Section 2(a) or 2(b) hereof.

(f)Any reference herein to a registration statement as of any time shall be deemed to include any document incorporated, or deemed to be incorporated, therein by reference as of such time and any reference herein to any post-effective amendment to a registration statement as of any time shall be deemed to include any document incorporated, or deemed to be incorporated, therein by reference as of such time.

SECTION 3.    Registration Procedures.  If the Issuers and the Guarantor file a registration statement pursuant to Section 2(a) or Section 2(b), the following provisions shall apply:

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(a)At or before the Effective Time of the Exchange Offer or the Shelf Registration, as the case may be, the Issuers and the Guarantor shall cause the Indenture to be qualified under the Trust Indenture Act of 1939.

(b)In the event that such qualification would require the appointment of a new trustee under the Indenture, the Issuers and the Guarantor shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture.

(c)In connection with the Issuers’ and the Guarantor’s obligations with respect to the registration of Exchange Notes as contemplated by Section 2(a) (the “Exchange Offer Registration”), if applicable, the Issuers and the Guarantor shall, as soon as practicable (or as otherwise specified):

(i)prepare and file with the Commission an Exchange Offer Registration Statement on any form which may be utilized by the Issuers and the Guarantor and which shall permit the Exchange Offer and resales of Exchange Notes by broker-dealers during the Resale Period to be effected as contemplated by Section 2(a);

(ii)as soon as practicable prepare and file with the Commission such amendments and supplements to such Exchange Offer Registration Statement and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Exchange Offer Registration Statement for the periods and purposes contemplated in Section 2(a) hereof and as may be required by the applicable rules and regulations of the Commission and the instructions applicable to the form of such Exchange Offer Registration Statement, and promptly provide each broker-dealer holding Exchange Notes with such number of copies of the prospectus included therein (as then amended or supplemented), in conformity in all material respects with the requirements of the Securities Act and the Trust Indenture Act, as such broker-dealer reasonably may request prior to the expiration of the Resale Period, for use in connection with resales of Exchange Notes;

(iii)prepare and furnish to each such holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers of such Exchange Notes during the Resale Period, such prospectus conforms in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

(iv)use their reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of such Exchange Offer Registration Statement or any post-effective amendment thereto as soon as practicable;

(v)use their reasonable best efforts to (A) register or qualify the Exchange Notes under the securities laws or blue sky laws of such jurisdictions as 

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are contemplated by Section 2(a) no later than the commencement of the Exchange Offer, (B) keep such registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions until the expiration of the Resale Period and (C) take any and all other actions as may be reasonably necessary or advisable to enable each broker-dealer holding Exchange Notes to consummate the disposition thereof in such jurisdictions; provided, however, that neither of the Issuers or the Guarantor shall be required for any such purpose to (1) qualify as a foreign corporation or limited liability company, as the case may be, in any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this Section 3(c)(v), (2) consent to general service of process in any such jurisdiction or (3) make any changes to its certificate of incorporation or by-laws (or other organizational document) or any agreement between it and holders of its ownership interests;

(vi)use their reasonable best efforts to obtain the consent or approval of each governmental agency or authority, whether federal, state or local, which may be required to effect the Exchange Offer Registration, the Exchange Offer and the offering and sale of Exchange Notes by broker-dealers during the Resale Period;

(vii)provide a CUSIP number for all Exchange Notes, not later than the applicable Effective Time;

(viii)comply with all applicable rules and regulations of the Commission, and make generally available to their securityholders as soon as practicable but no later than eighteen months after the effective date of such Exchange Offer Registration Statement, an earnings statement of the Company and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the option of the Company, Rule 158 thereunder);

(ix)mail to each holder a copy of the prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of instruction and related documents;

(x)utilize the services of a depositary for the Exchange Offer, which may be the Trustee, any new trustee under the Indenture, or an affiliate of any of them;

(xi)permit holders to withdraw tendered Notes at any time prior to the close of business, New York time, on the last business day on which the Exchange Offer is open;

(xii)prior to the Effective Time, provide a supplemental letter to the Commission (i) stating that the Issuers are conducting the Exchange Offer in reliance on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988), Morgan Stanley and Co., Inc. (pub. avail. June 5,

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1991); and (ii) including a representation that the Issuers have not entered into any arrangement or understanding with any person to distribute the Exchange Notes to be received in the Exchange Offer and that, to the best of the Issuers’ information and belief, each holder participating in the Exchange Offer is acquiring the Exchange Notes in the ordinary course of business and has no arrangement or understanding with any person to participate in the distribution of the Exchange Notes; and

(xiii)provide the Representatives, in advance of filing thereof with the Commission, a draft of such Exchange Offer Registration Statement substantially in the form to be filed with the Commission, each prospectus included therein or filed with the Commission and each amendment or supplement thereto (including any documents incorporated by reference therein after the initial filing), and shall use their commercially reasonable efforts to reflect in each such document, when so filed with the Commission, such comments as are reasonably proposed.

(d)As soon as practicable after the close of the Exchange Offer, the Issuers and the Guarantor shall:

(i)accept for exchange all Registrable Securities tendered and not validly withdrawn pursuant to the Exchange Offer;

(ii)deliver to the Trustee for cancellation all Notes so accepted for exchange; and

(iii)cause the Trustee promptly to authenticate and deliver to each holder a principal amount of Exchange Notes equal to the principal amount of the Registrable Securities of such Holder so accepted for exchange.

(e)In connection with the Issuers’ and the Guarantor’s obligations with respect to the Shelf Registration, if applicable, the Issuers and the Guarantor shall, as soon as practicable (or as otherwise specified):

(i)prepare and file with the Commission within the time periods specified in Section 2(b), a Shelf Registration Statement on any form which may be utilized by the Issuers and the Guarantor and which shall register all the Registrable Securities for resale by the holders thereof in accordance with such method or methods of disposition as may be specified by such of the holders as, from time to time, may be Electing Holders and use their reasonable best efforts to cause such Shelf Registration Statement to become or be declared effective within the time periods specified in Section 2(b);

(ii)not less than 30 calendar days prior to the Effective Time of the Shelf Registration Statement, mail the Notice and Questionnaire to the holders of Registrable Securities; no holder shall be entitled to be named as a selling securityholder in the Shelf Registration Statement as of the Effective Time, and no holder shall be entitled to use the prospectus forming a part thereof for resales of

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Registrable Securities at any time, unless such holder has returned a completed and signed Notice and Questionnaire to the Issuers by the deadline for response set forth therein; provided, however, holders of Registrable Securities shall have at least 28 calendar days from the date on which the Notice and Questionnaire is first mailed to such holders to return a completed and signed Notice and Questionnaire to the Issuers;

(iii)after the Effective Time of the Shelf Registration Statement, upon the request of any holder of Registrable Securities that is not then an Electing Holder, promptly send a Notice and Questionnaire to such holder; provided that the Issuers shall not be required to take any action to name such holder as a selling securityholder in the Shelf Registration Statement or to enable such holder to use the prospectus forming a part thereof for resales of Registrable Securities until such holder has returned a completed and signed Notice and Questionnaire to the Issuers;

(iv)as soon as practicable prepare and file with the Commission such amendments and supplements to such Shelf Registration Statement and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Shelf Registration Statement for the period specified in Section 2(b) and as may be required by the applicable rules and regulations of the Commission and the instructions applicable to the form of such Shelf Registration Statement, and furnish to the Electing Holders copies of any such supplement or amendment simultaneously with or prior to its being used or filed with the Commission;

(v)comply with the provisions of the Securities Act with respect to the disposition of all the Registrable Securities covered by such Shelf Registration Statement in accordance with the intended methods of disposition by the Electing Holders provided for in such Shelf Registration Statement;

(vi)provide (A) the Electing Holders, (B) the underwriters (which term, for purposes of this Agreement, shall include a person deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act), if any, thereof, (C) any sales or placement agent therefor, (D) counsel for any such underwriter or agent, (E) not more than one counsel for all the Electing Holders and (F) the Representatives, in advance of filing thereof with the Commission, a draft of such Shelf Registration Statement, each prospectus included therein or filed with the Commission and each amendment or supplement thereto (including any documents incorporated by reference therein after the initial filing), in each case in substantially the form to be filed with the Commission, and shall use their commercially reasonable efforts to reflect in each such document, when so filed with the Commission, such comments as are reasonably proposed;

(vii)for a reasonable period prior to the filing of such Shelf Registration Statement, and throughout the period specified in Section 2(b), make available at reasonable times at the Issuers’ or the Guarantor’s principal place of business, or such other reasonable place for inspection by the persons referred to in Section

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3(e)(vi) who shall certify to the Issuers or the Guarantor that they have a current intention to sell the Registrable Securities pursuant to the Shelf Registration such financial and other relevant information and books and records of the Issuers or the Guarantor, each of their subsidiaries and, as relevant, Parent Companies, and cause each of their officers, employees, counsel and independent certified public accountants to supply all relevant information and to respond to such inquiries, as shall be reasonably necessary, in the judgment of the respective counsel referred to in such Section, to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that each such party shall be required to maintain in confidence and not to disclose to any other person any information or records reasonably designated by the Issuers or the Guarantor as being confidential, until such time as (A) such information becomes a matter of public record (whether by virtue of its inclusion in such registration statement or otherwise, except as a result of a breach of this or any other obligation of confidentiality to the Issuers), or (B) such person shall be required so to disclose such information pursuant to a subpoena or order of any court or other governmental agency or body having jurisdiction over the matter (subject to the requirements of such order, and only after such person shall have given the Issuers prompt prior written notice of such requirement), or (C) such information is required to be set forth in such Shelf Registration Statement or the prospectus included therein or in an amendment to such Shelf Registration Statement or an amendment or supplement to such prospectus in order that such Shelf Registration Statement, prospectus, amendment or supplement, as the case may be, complies with applicable requirements of the federal securities laws and the rules and regulations of the Commission and does not contain an untrue statement of a material fact or omit to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, provided further, however, that notwithstanding anything to the contrary in this clause (vii), any such person (and each employee, representative, or other agent of such person) may disclose to any and all persons, without limitation, the U.S. tax treatment and any facts that may be relevant to the tax structure of the matters covered by and relating to this Agreement (including opinions or other tax analysis that are provided to such party relating to such tax treatment and tax structure); provided, however, that no person (and no employee, representative, or other agent of any person) shall disclose any other information that is not relevant to understanding the tax treatment and tax structure of the matters covered by and relating to this Agreement (including the identity of any party and any information that could lead another to determine the identity of any party), or any other information to the extent that such non-disclosure is reasonably necessary in order to comply with applicable securities law;

(viii)promptly notify each of the Representatives, the Electing Holders, any sales or placement agent therefor and any underwriter thereof (which notification may be made through any managing underwriter that is a representative of such underwriter for such purpose) and confirm such advice in writing, (A) when such Shelf Registration Statement or the prospectus included therein or any pro-

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spectus amendment or supplement or post-effective amendment has been filed, and, with respect to such Shelf Registration Statement or any post-effective amendment, when the same has become effective, (B) of any comments by the Commission and by the blue sky or securities commissioner or regulator of any state with respect thereto, or any request by the Commission for amendments or supplements to such Shelf Registration Statement or prospectus or for additional information, (C) of the issuance by the Commission of any stop order suspending the effectiveness of such Shelf Registration Statement or the initiation or, to the knowledge of the Issuers and the Guarantor, threatening of any proceedings for that purpose, (D) if at any time the representations and warranties of the Issuers and the Guarantor contemplated by Section 3(e)(xvii) or Section 5 hereof cease to be true and correct in all material respects, (E) of the receipt by the Issuers of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or, to the knowledge of the Issuers, threatening of any proceeding for such purpose, or (F) if at any time when a prospectus is required to be delivered under the Securities Act, that such Shelf Registration Statement, prospectus, prospectus amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act, or contains an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

(ix)use their reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of such Shelf Registration Statement or any post-effective amendment thereto as soon as practicable;

(x)if requested by any managing underwriter or underwriters, any placement or sales agent or any Electing Holder, promptly incorporate in a prospectus supplement or post-effective amendment such information as is required by the applicable rules and regulations of the Commission, and as such managing underwriter or underwriters, such agent or such Electing Holder specifies should be included therein relating to the terms of the sale of such Registrable Securities, including, without limitation, information (i) with respect to the principal amount of Registrable Securities being sold by such Electing Holder or agent or to any underwriters, the name and description of such Electing Holder, agent or underwriter, the offering price of such Registrable Securities, and any discount, commission or other compensation payable in respect thereof and the purchase price being paid therefor by such underwriters and (ii) with respect to any other material terms of the offering of the Registrable Securities to be sold by such Electing Holder or agent or to such underwriters; and make all required filings of such prospectus supplement or post-effective amendment upon notification of the matters to be incorporated in such prospectus supplement or post-effective amendment;

(xi)furnish to each Electing Holder, each placement or sales agent, if any, therefor, each underwriter, if any, thereof and the respective counsel referred

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to in Section 3(e)(vi) hereof an executed copy (or, in the case of an Electing Holder, a conformed copy) of such Shelf Registration Statement, each such amendment and supplement thereto (in each case including all exhibits thereto (in the case of an Electing Holder of Registrable Securities, upon request) and documents incorporated by reference therein) and such number of copies of such Shelf Registration Statement (excluding exhibits thereto and documents incorporated by reference therein unless specifically so requested by such Electing Holder, agent or underwriter, as the case may be) and of the prospectus included in such Shelf Registration Statement (including, without limitation, each preliminary prospectus and any summary prospectus), in conformity in all material respects with the applicable requirements of the Securities Act and the Trust Indenture Act, and such other documents, as such Electing Holder, agent, if any, and underwriter, if any, may reasonably request in order to facilitate the offering and disposition of the Registrable Securities owned by such Electing Holder, offered or sold by such agent or underwritten by such underwriter and to permit such Electing Holder, agent and underwriter to satisfy the prospectus delivery requirements of the Securities Act; and the Issuers and the Guarantor hereby consent to the use of such prospectus (including, without limitation, such preliminary and summary prospectus) and any amendment or supplement thereto by each such Electing Holder and by any such agent and underwriter, in each case in the form most recently provided to such person by the Issuers and the Guarantor, in connection with the offering and sale of the Registrable Securities covered by the prospectus (including, without limitation, such preliminary and summary prospectus) or any supplement or amendment thereto;

(xii)use their reasonable best efforts to (A) register or qualify the Registrable Securities to be included in such Shelf Registration Statement under such securities laws or blue sky laws of such jurisdictions as any Electing Holder and each placement or sales agent, if any, therefor and underwriter, if any, thereof shall reasonably request, (B) keep such registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions during the period the Shelf Registration is required to remain effective under Section 2(b) above and for so long as may be necessary to enable any such Electing Holder, agent or underwriter to complete its distribution of Notes pursuant to such Shelf Registration Statement and (C) take any and all other actions as may be reasonably necessary or advisable to enable each such Electing Holder, agent, if any, and underwriter, if any, to consummate the disposition in such jurisdictions of such Registrable Securities; provided, however, that none of the Issuers or the Guarantor shall be required for any such purpose to (1) qualify as a foreign corporation or limited liability company, as the case may be, in any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this Section 3(d)(xii), (2) consent to general service of process in any such jurisdiction or (3) make any changes to its certificate of incorporation or by-laws (or other organizational document) or any agreement between it and holders of its ownership interests;

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(xiii)use their reasonable best efforts to obtain the consent or approval of each governmental agency or authority, whether federal, state or local, which may be required to effect the Shelf Registration or the offering or sale in connection therewith or to enable the selling holder or holders to offer, or to consummate the disposition of, their Registrable Securities;

(xiv)unless any Registrable Securities shall be in book-entry only form, cooperate with the Electing Holders and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, which certificates, if so required by any securities exchange upon which any Registrable Securities are listed, shall be penned, lithographed or engraved, or produced by any combination of such methods, on steel engraved borders, and which certificates shall not bear any restrictive legends; and, in the case of an underwritten offering, enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters may request at least two business days prior to any sale of the Registrable Securities;

(xv)provide a CUSIP number for all Registrable Securities, not later than the applicable Effective Time;

(xvi)enter into one or more underwriting agreements, engagement letters, agency agreements, “best efforts” underwriting agreements or similar agreements, as appropriate, including customary provisions relating to indemnification and contribution (but no less favorable than those set forth in Section 6 with respect to all parties indemnified under Section 6), unless such provisions are acceptable to Electing Holders of at least 50% in aggregate principal amount of the Registrable Securities and any managing underwriters, and take such other actions in connection therewith as any Electing Holders of at least 20% in aggregate principal amount of the Registrable Securities at the time outstanding shall request in order to expedite or facilitate the disposition of such Registrable Securities;

(xvii)whether or not an agreement of the type referred to in Section 3(e)(xvi) hereof is entered into, and whether or not any portion of the offering contemplated by the Shelf Registration is an underwritten offering or is made through a placement or sales agent or any other entity, (A) make such representations and warranties to the Electing Holders and the placement or sales agent, if any, therefor and the underwriters, if any, thereof in form, substance and scope as are customarily made in connection with an offering of debt securities pursuant to any appropriate agreement or to a registration statement filed on the form applicable to the Shelf Registration; (B) obtain an opinion of counsel to the Issuers and the Guarantor in customary form, subject to customary limitations, assumptions and exclusions, and covering such matters, of the type customarily covered by such an opinion, as the managing underwriters, if any, or as any Electing Holders of at least 20% in aggregate principal amount of the Registrable Securities at the time outstanding may reasonably request, addressed to such Electing Holder or Electing Holders and the placement or sales agent, if any, therefor and the underwriters, if any, thereof and dated the date of the Effective Time of such Shelf Reg-

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istration Statement (and if such Shelf Registration Statement contemplates an underwritten offering of a part or all of the Registrable Securities, dated the date of the closing under the underwriting agreement relating thereto) (it being agreed that the matters to be covered by such opinion shall include the matters set forth in paragraphs (b) and (c) of Section 8 of the Purchase Agreement to the extent applicable to an offering of this type); (C) obtain a “cold comfort” letter or letters from the independent certified public accountants of the Issuers and the Guarantor addressed to the selling Electing Holders, the placement or sales agent, if any, therefor or the underwriters, if any, thereof, dated (i) the effective date of such Shelf Registration Statement and (ii) the effective date of any prospectus supplement to the prospectus included in such Shelf Registration Statement or post-effective amendment to such Shelf Registration Statement which includes unaudited or audited financial statements as of a date or for a period subsequent to that of the latest such statements included in such prospectus (and, if such Shelf Registration Statement contemplates an underwritten offering pursuant to any prospectus supplement to the prospectus included in such Shelf Registration Statement or post-effective amendment to such Shelf Registration Statement which includes unaudited or audited financial statements as of a date or for a period subsequent to that of the latest such statements included in such prospectus, dated the date of the closing under the underwriting agreement relating thereto), such letter or letters to be in customary form and covering such matters of the type customarily covered by letters of such type; (D) deliver such documents and certificates, including, without limitation, officers’ certificates, as may be reasonably requested by any Electing Holders of at least 20% in aggregate principal amount of the Registrable Securities at the time outstanding or the placement or sales agent, if any, therefor and the managing underwriters, if any, thereof to evidence the accuracy of the representations and warranties made pursuant to clause (A) above or those contained in Section 5(a) hereof and the compliance with or satisfaction of any agreements or conditions contained in the underwriting agreement or other similar agreement entered into by the Issuers and the Guarantor pursuant to Section 3(e)(xvi); and (E) undertake such obligations relating to expense reimbursement, indemnification and contribution as are provided in Section 6 hereof;

(xviii)notify in writing each holder of Registrable Securities of any proposal by the Issuers and the Guarantor to amend or waive any provision of this Agreement pursuant to Section 9(h) hereof and of any amendment or waiver effected pursuant thereto, each of which notices shall contain the substance of the amendment or waiver proposed or effected, as the case may be;

(xix)in the event that any broker-dealer registered under the Exchange Act shall underwrite any Registrable Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the Conduct Rules (the “Conduct Rules”) of the Financial Industry Regulatory Authority, Inc. (“FINRA”) or any successor thereto, as amended from time to time) thereof, whether as a holder of such Registrable Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or

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otherwise, assist such broker-dealer in complying with the requirements of such Conduct Rules, including, without limitation, by (A) if such Conduct Rules shall so require, engaging a “qualified independent underwriter” (as defined in such Conduct Rules) to participate in the preparation of the Shelf Registration Statement relating to such Registrable Securities, to exercise usual standards of due diligence in respect thereto and, if any portion of the offering contemplated by such Shelf Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the yield of such Registrable Securities, (B) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 6 hereof (or to such other customary extent as may be requested by such underwriter), and (C) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Conduct Rules; and

(xx)comply with all applicable rules and regulations of the Commission, and make generally available to its securityholders as soon as practicable but in any event not later than eighteen months after the effective date of such Shelf Registration Statement, an earnings statement of the Company and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the option of the Company, Rule 158 thereunder).

(f)In the event that the Issuers or the Guarantor would be required, pursuant to Section 3(e)(viii)(F) hereof, to notify the Electing Holders, the placement or sales agent, if any, therefor and the managing underwriters, if any, thereof, the Issuers or the Guarantor shall prepare and furnish to each of the Electing Holders, to each placement or sales agent, if any, and to each such underwriter, if any, a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers of Registrable Securities, such prospectus conforms in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act, and shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing.  Each Electing Holder agrees that upon receipt of any notice from the Issuers or the Guarantor pursuant to Section 3(e)(viii)(F) hereof, such Electing Holder shall forthwith discontinue the disposition of Registrable Securities pursuant to the Shelf Registration Statement applicable to such Registrable Securities until such Electing Holder shall have received copies of such amended or supplemented prospectus, and if so directed by the Issuers or the Guarantor, such Electing Holder shall deliver to the Issuers or the Guarantor (at the Issuers’ or the Guarantor’s expense) all copies, other than permanent file copies, then in such Electing Holder’s possession of the prospectus covering such Registrable Securities at the time of receipt of such notice.

(g)In the event of a Shelf Registration, in addition to the information required to be provided by each Electing Holder in its Notice and Questionnaire, the Issuers or the Guarantor may require such Electing Holder to furnish to the Issuers or the Guarantor such additional information regarding such Electing Holder and such Electing Holder’s intended method of distribution of Registrable Securities as may be required in order to

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comply with the Securities Act.  Each such Electing Holder agrees to notify the Issuers or the Guarantor as promptly as practicable of any inaccuracy or change in information previously furnished by such Electing Holder to the Issuers or the Guarantor or of the occurrence of any event in either case as a result of which any prospectus relating to such Shelf Registration contains or would contain an untrue statement of a material fact regarding such Electing Holder or such Electing Holder’s intended method of disposition of such Registrable Securities or omits to state any material fact regarding such Electing Holder or such Electing Holder’s intended method of disposition of such Registrable Securities required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly to furnish to the Issuers or the Guarantor any additional information required to correct and update any previously furnished information or required so that such prospectus shall not contain, with respect to such Electing Holder or the disposition of such Registrable Securities, an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing.

SECTION 4.    Registration Expenses.  The Issuers and the Guarantor agree, subject to the last sentence of this Section 4, to bear and to pay or cause to be paid promptly all expenses incident to the Issuers’ and the Guarantor’s performance of or compliance with this Agreement, including, without limitation, (a) all Commission and any FINRA registration, filing and review fees and expenses including, without limitation, fees and disbursements of counsel for the placement or sales agent or underwriters in connection with such registration, filing and review, (b) all fees and expenses in connection with the qualification of the Notes for offering and sale under the securities laws and blue sky laws referred to in Section 3(e)(xii) hereof and determination of their eligibility for investment under the laws of such jurisdictions as any managing underwriters or the Electing Holders may designate, including, without limitation, any fees and disbursements of counsel for the Electing Holders or underwriters in connection with such qualification and determination, (c) all expenses relating to the preparation, printing, production, distribution and reproduction of each registration statement required to be filed hereunder, each prospectus included therein or prepared for distribution pursuant hereto, each amendment or supplement to the foregoing, the expenses of preparing the Notes for delivery and the expenses of printing or producing any underwriting agreements, agreements among underwriters, selling agreements and blue sky or legal investment memoranda and all other documents in connection with the offering, sale or delivery of Notes to be disposed of (including, without limitation, certificates representing the Notes), (d) messenger, telephone and delivery expenses relating to the offering, sale or delivery of Notes and the preparation of documents referred in clause (c) above, (e) fees and expenses of the Trustee under the Indenture, any agent of the Trustee and any reasonable fees and expenses for counsel for the Trustee and of any collateral agent or custodian, (f) internal expenses (including, without limitation, all salaries and expenses of the Issuers’ and the Guarantor’s officers and employees performing legal or accounting duties), (g) fees, disbursements and expenses of counsel and independent certified public accountants of the Issuers and the Guarantor (including, without limitation, the expenses of any opinions or “cold comfort” letters required by or incident to such performance and compliance), (h) reasonable fees, disbursements and expenses of one counsel for the Electing Holders retained in connection with a Shelf Registration, as selected by the Electing Holders of at least a majority in aggregate principal

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amount of the Registrable Securities held by Electing Holders (which counsel shall be reasonably satisfactory to the Issuers and the Guarantor), (i) any fees charged by securities rating services engaged by the Issuers for rating the Notes, and (j) reasonable fees, expenses and disbursements of any other persons, including, without limitation, special experts, retained by the Issuers and the Guarantor in connection with such registration (collectively, the “Registration Expenses”).  To the extent that any Registration Expenses are incurred, assumed or paid by any holder of Registrable Securities or any placement or sales agent therefor or underwriter thereof, the Issuers and the Guarantor shall reimburse such person for the full amount of the Registration Expenses so incurred, assumed or paid promptly after receipt of a request therefor.  Notwithstanding the foregoing, the holders of the Registrable Securities being registered shall pay all agency fees and commissions and underwriting discounts and commissions attributable to the sale of such Registrable Securities and the fees and disbursements of any counsel or other advisors or experts retained by such holders (severally or jointly), other than the counsel and experts specifically referred to above.

SECTION 5.    Representations, Warranties and Covenants.  Except with respect to clauses (a) and (b) below, the Issuers and the Guarantor represent and warrant to, and agree with, each Purchaser and each of the holders from time to time of Registrable Securities the information set forth in this Section 5.

With respect to clauses (a) and (b) below, the Issuers and the Guarantor covenant that:
(a)Each registration statement covering Registrable Securities and each prospectus (including, without limitation, any preliminary or summary prospectus) contained therein or furnished pursuant to Section 3(e) or Section 3(c) hereof and any further amendments or supplements to any such registration statement or prospectus, when it becomes effective or is filed with the Commission, as the case may be, and, in the case of an underwritten offering of Registrable Securities, at the time of the closing under the underwriting agreement relating thereto, will conform in all material respects to the requirements of the Securities Act and the Trust Indenture Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and at all times subsequent to the Effective Time when a prospectus would be required to be delivered under the Securities Act, other than from (i) such time as a notice has been given to holders of Registrable Securities pursuant to Section 3(e)(viii)(F) or Section 3(c)(iii)(F) hereof until (ii) such time as the Issuers and the Guarantor furnish an amended or supplemented prospectus pursuant to Section 3(f) or Section 3(c)(iii) hereof, each such registration statement, and each prospectus (including, without limitation, any preliminary or summary prospectus) contained therein or furnished pursuant to Section 3(e) or Section 3(c) hereof, as then amended or supplemented, will conform in all material respects to the requirements of the Securities Act and the Trust Indenture Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; provided, however, that this covenant shall not apply to any statements or omissions

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made in reliance upon and in conformity with information furnished in writing to the Issuers and the Guarantor by a holder of Registrable Securities expressly for use therein.

(b)Any documents incorporated by reference in any prospectus referred to in Section 5(a) hereof, when they become or became effective or are or were filed with the Commission, as the case may be, will conform or conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents will contain or contained an untrue statement of a material fact or will omit or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that this covenant shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Issuers and the Guarantor by a holder of Registrable Securities expressly for use therein.

(c)This Agreement has been duly authorized, executed and delivered by the Issuers and the Guarantor.

SECTION 6.    Indemnification.

(a)The Issuers and the Guarantor, jointly and severally, agree to indemnify and hold harmless each holder of Registrable Securities or Exchange Notes, as the case may be, covered by any Exchange Offer Registration Statement or Shelf Registration Statement (including each Purchaser and, with respect to any prospectus delivery as contemplated in Section 3(c)(ii) or (iii) hereof, each holder (which may include any Purchaser) that is a broker-dealer and elects to exchange for Exchange Notes any Registrable Securities that it acquired for its own account as a result of market-making activities or other trading activities (but not directly from the Issuers, the Guarantor or any affiliate of the Issuers) for Exchange Notes) (each an “Exchanging Dealer”), the affiliates, directors, officers, employees and agents of each such holder and each person who controls any such holder within the meaning of either the Securities Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Exchange Offer Registration Statement or Shelf Registration Statement as originally filed or in any amendment thereof, or in any preliminary prospectus or the prospectus included in any registration statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Issuers and the Guarantor will not be liable in any case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Issuers and the Guarantor by or on behalf of any such holder specifically for inclusion therein.  This indemnity agreement will be in addition to any liability which the Issuers and the Guarantor may otherwise have.

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The Issuers and the Guarantor, jointly and severally, also agree to indemnify or contribute as provided in Section 6(d) to Losses of any underwriter of Registrable Securities or Exchange Notes, as the case may be, registered under a Shelf Registration Statement, their directors, officers, employees or agents and each person who controls such underwriter within the meaning of either the Securities Act or the Exchange Act, on substantially the same basis as that of the indemnification of the Purchasers and the selling holders provided in this Section 6(a) and shall, if requested by any holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 3(e)(xvi) hereof.
(b)Each holder of Registrable Securities or Exchange Notes covered by an Exchange Offer Registration Statement or Shelf Registration Statement (including each Purchaser and, with respect to any prospectus delivery as contemplated in Section 3(c)(ii) or Section 3(f)(iv) hereof, each Exchanging Dealer) severally agrees to indemnify and hold harmless the Issuers, the Guarantor and each of their affiliates, directors, employees, members, managers and agents and each Person who controls the Issuers and the Guarantor within the meaning of either the Securities Act or the Exchange Act, to the same extent as the foregoing indemnity from the Issuers and the Guarantor to each such holder, but only with reference to written information relating to such holder furnished to the Issuers and the Guarantor by or on behalf of such holder specifically for inclusion in the documents referred to in the foregoing indemnity.  This indemnity agreement will be in addition to any liability which any such holder may otherwise have.

(c)Promptly after receipt by an indemnified party under this Section 6 or notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 6, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above.  The indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation.  Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed

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counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party.  No indemnifying party shall, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all indemnified parties.  An indemnifying party shall not be liable under this Section 6 to any indemnified party regarding any settlement or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party, which consent shall not be unreasonably withheld.

(d)In the event that the indemnity provided in paragraph (a) or (b) of this Section 6 is unavailable to or insufficient to hold harmless an indemnified party for any reason, then each applicable indemnifying party agrees to contribute to the aggregate losses, claims, damages and liabilities (including, without limitation, legal or other expenses reasonably incurred in connection with investigating or defending same) (collectively “Losses”) to which such indemnifying party may be subject in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and by the indemnified party on the other from the offering of the Notes.  If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the indemnified party failed to give the notice required under subsection (c) above, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the indemnifying party on the one hand and the indemnified party on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations.  Benefits received by the Issuers shall be deemed to be equal to the sum of (x) the total net proceeds from the initial placement of the Notes (before deducting expenses) reflected in the Purchase Agreement and (y) the total amount of Special Interest which the Issuers were not required to pay as a result of registering the securities covered by the Exchange Offer Registration Statement or Shelf Registration Statement which resulted in such Losses.  Benefits received by the Purchasers shall be deemed to be equal to the total purchase discounts and commissions as reflected in the Purchase Agreement, and benefits received by any other holders shall be deemed to be equal to the proceeds received from the sale of the Registrable Securities or Exchange Notes, as applicable.  Benefits received by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth in the prospectus forming a part of the Exchange Offer Registration Statement or Shelf Registration Statement which resulted in such Losses.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party on the one hand or the indemnified party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The parties agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the holders or any agents or un-

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derwriters or all of them were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d).  The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this subsection (d), no holder shall be required to contribute any amount in excess of the amount by which the dollar amount of the proceeds received by such holder from the sale of Registrable Securities (after deducting any fees, discounts and commissions applicable thereto) exceeds the amount of any damages which such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, and no underwriter shall be required to contribute any amount in excess of the amount by which the total price of the Registrable Securities underwritten by it and distributed to the public exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  The holders’ and any underwriters’ obligations in this subsection (d) to contribute are several in proportion to the principal amount of Registrable Securities registered or underwritten, as the case may be, by them, and not joint.  Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 6, each person who controls any holder, agent or underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of a holder, agent or underwriter shall have the same rights to contribution as such holder, agent or underwriter, and each person who controls the Issuers or the Guarantor within the meaning of either the Securities Act or the Exchange Act and each officer and director of the Issuers or the Guarantor shall have the same rights to contribution as the Issuers or the Guarantor, subject in each case to the applicable terms and conditions of this paragraph (d).

(e)The provisions of this Section will remain in full force and effect, regardless of any investigation made by or on behalf of any holder or the Issuers or the Guarantor or any of the officers, directors or controlling persons referred to in this Section hereof, and will survive the sale by a holder of securities covered by an Exchange Offer Registration Statement or Shelf Registration Statement.

SECTION 7.    Underwritten Offerings.

(a)Selection of Underwriters.  If any of the Registrable Securities covered by the Shelf Registration are to be sold pursuant to an underwritten offering, the managing underwriter or underwriters thereof shall be designated by Electing Holders holding at least a majority in aggregate principal amount of the Registrable Securities to be included in such offering, provided that such designated managing underwriter or underwriters is or are reasonably acceptable to the Issuers and the Guarantor.

(b)Participation by Holders.  Each holder of Registrable Securities hereby agrees with each other such holder that no such holder may participate in any underwritten offering hereunder unless such holder (i) agrees to sell such holder’s Registrable Securities on the basis provided in any underwriting arrangements with respect to such Registrable Securities ap-

-24-

proved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

(c)Minimum Requirements.  The Issuers and the Guarantor shall not have any obligations with respect to any underwriters or underwritten offering except a single underwritten offering of $270 million or more of Registrable Securities. 

SECTION 8.    Rule 144.  Each of the Issuers and the Guarantor covenants to the holders of Registrable Securities that to the extent it shall be required to do so under the Exchange Act, it shall timely file the reports required to be filed by it under the Exchange Act or the Securities Act (including, without limitation, the reports under Section 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144), and shall take such further action as any holder of Registrable Securities may reasonably request, all to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144, or any similar or successor rule or regulation hereafter adopted by the Commission.  Upon the request of any holder of Registrable Securities in connection with that holder’s sale pursuant to Rule 144, the Issuers and the Guarantor shall deliver to such holder a written statement as to whether it has complied with such requirements.

SECTION 9.    Miscellaneous.

(a)No Inconsistent Agreements.  The Issuers and the Guarantor represent, warrant, covenant and agree that they have not granted, and shall not grant, registration rights with respect to Registrable Securities or any other Notes which would be inconsistent with the terms contained in this Agreement.

(b)Specific Performance.  Except with respect to a Registration Default, the parties hereto acknowledge that there would be no adequate remedy at law if the Issuers or the Guarantor fail to perform any of their obligations hereunder and that the Purchasers and the holders from time to time of the Registrable Securities may be irreparably harmed by any such failure, and accordingly agree that the Purchasers and such holders, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to compel specific performance of the obligations of the Issuers or the Guarantor under this Agreement in accordance with the terms and conditions of this Agreement, in any court of the United States or any State thereof having jurisdiction.

(c)Notices.  All notices, requests, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) when delivered by hand, if delivered personally or by courier, (ii) when sent by facsimile (with written confirmation of receipt), provided that a copy is mailed by registered or certified mail, return receipt requested or (iii) three days after being deposited in the mail (registered or certified mail, postage prepaid, return receipt requested) as follows:  if to the Issuers, c/o CCO Holdings, LLC, 400 Atlantic Street, 10th Floor, Stamford, Connecticut, Attention:  General Counsel, and if to a holder, to the address of such holder set forth in the security register or other records of the Issuers, or to such other address as the Issuers or any such holder may have furnished to the other in

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writing in accordance herewith, with a copy in like manner c/o Credit Suisse Securities (USA) LLC, Attn:  General Counsel, Eleven Madison Avenue, New York, New York 10010.  Notices of change of address shall be effective only upon receipt.

(d)Parties in Interest.  All the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and the holders from time to time of the Registrable Securities and the respective successors and assigns of the parties hereto and such holders.  In the event that any person shall acquire Registrable Securities, in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be deemed a beneficiary hereof for all purposes and such Registrable Securities shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such transferee shall be entitled to receive the benefits, and be conclusively deemed to have agreed to be bound by all the applicable terms and provisions, of this Agreement.  If the Issuers or the Guarantor shall so request, any such successor, assign or transferee shall agree in writing to acquire and hold the Registrable Securities subject to all the applicable terms hereof.

(e)Survival.  The respective indemnities, agreements, representations, warranties and each other provision set forth in this Agreement or made pursuant hereto shall remain in full force and effect regardless of any investigation (or statement as to the results thereof) made by or on behalf of any holder of Registrable Securities, any director, officer or partner of such holder, any agent or underwriter or any director, officer or partner thereof, or any controlling person of any of the foregoing, and shall survive delivery of and payment for the Registrable Securities pursuant to the Purchase Agreement and the transfer and registration of Registrable Securities by such holder and the consummation of an Exchange Offer.

(f)GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

(g)Headings.  The descriptive headings of the several Sections and paragraphs of this Agreement are inserted for convenience only, do not constitute a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement.

(h)Entire Agreement; Amendments.  This Agreement and the other writings referred to herein (including, without limitation, the Indenture and the form of Notes) or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject matter.  This Agreement supersedes all prior agreements and understandings between the parties with respect to its subject matter.  This Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument duly executed by the Issuers, the Guarantor and the holders of at least a majority in aggregate principal amount of the Registrable Securities at the time outstanding.  Each holder of any Registrable Securities at the time or thereafter outstanding shall be bound by any amendment or waiver effected pursuant to this Section 9(h), whether or not any notice, writing or marking indicating such amendment or waiver appears on such Registrable Securities or is delivered to such holder.

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(i)Inspection.  For so long as this Agreement shall be in effect, this Agreement and a complete list of the names and addresses of all the holders of Registrable Securities shall be made available for inspection and copying, upon reasonable prior notice, on any business day during normal business hours by any holder of Registrable Securities for proper purposes only (which shall include any purpose related to the rights of the holders of Registrable Securities under the Notes, the Indenture and this Agreement) at the offices of the Issuers at the address thereof set forth in Section 9(c) above and at the office of the Trustee under the Indenture.

(j)Counterparts.  This Agreement may be executed by the parties in counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument.

(k)Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law.

(l)Securities Held by the Issuers, etc.  Whenever the consent or approval of holders of a specified percentage of principal amount of Registrable Securities or Exchange Notes is required hereunder, Registrable Securities or Exchange Notes, as applicable, held by the Issuers or their affiliates (other than subsequent holders of Registrable Securities or Exchange Notes if such subsequent holders are deemed to be affiliates solely by reason of their holdings of such Registrable Securities or Exchange Notes) shall not be counted in determining whether such consent or approval was given by the holders of such required percentage.

(m)Additional Notes.  Notwithstanding anything contained herein, any registration statement and exchange offer herein contemplated may include other securities issued by the Issuers and guaranteed by the Guarantor. 

SECTION 10.    Release of Guarantor.  Notwithstanding anything herein to the contrary, if the Guarantor is released from its obligations under the Indenture in accordance with the terms thereof, the Guarantor shall be automatically released from its obligations hereunder.

[Signature Pages Follow]

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If the foregoing is in accordance with your understanding, please sign and return to us counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Purchasers, this Agreement and such acceptance hereof shall constitute a binding agreement between each of the Purchasers, the Issuers and the Guarantor.  It is understood that your acceptance of this letter on behalf of each of the Purchasers is pursuant to the authority set forth in a form of agreement among Purchasers, the form of which shall be submitted to the Issuers and the Guarantor for examination upon request, but without warranty on your part as to the authority of the signers thereof.
Very truly yours,

CCO HOLDINGS, LLC,
as an Issuer

		
	By:
	/s/Thomas M. Degnan                

Name:  Thomas M. Degnan
		
	Title:  
	Senior Vice President - Finance and Corporate Treasurer    

CCO HOLDINGS CAPITAL CORP.,
as an Issuer

		
	By:
	/s/Thomas M. Degnan                

Name:  Thomas M. Degnan
		
	Title:  
	Senior Vice President - Finance and Corporate Treasurer    

CHARTER COMMUNICATIONS, INC.,
as Guarantor

		
	By:
	/s/Thomas M. Degnan                

Name:  Thomas M. Degnan
		
	Title:  
	Senior Vice President - Finance and Corporate Treasurer    

Charter - Registration Rights Agreement

Accepted as of the date hereof:

Acting on behalf of itself and
the several Purchasers

By:  CREDIT SUISSE SECURITIES (USA) LLC

		
	By:
	/s/Eric Federman________________________________

		
	Name:
	Eric Federman

		
	Title: 
	Managing Director 

Charter - Registration Rights Agreement

EXHIBIT A
CCO HOLDINGS, LLC
CCO HOLDINGS CAPITAL CORP.

INSTRUCTION TO DTC PARTICIPANTS
(Date of Mailing)
URGENT - IMMEDIATE ATTENTION REQUESTED
DEADLINE FOR RESPONSE:  [DATE](a)
The Depository Trust Company (“DTC”) has identified you as a DTC Participant through which beneficial interests in the CCO Holdings, LLC (the “Company”) and CCO Holdings Capital Corp. (together with the Company, the “Issuers”) 5.875% Senior Notes due 2027 issued on April 21, 2015 (the “Notes”) are held.
The Issuers are in the process of registering the Notes under the Securities Act of 1933, as amended, for resale by the beneficial owners thereof.  In order to have their Notes included in the registration statement, beneficial owners must complete and return the enclosed Notice of Registration Statement and Selling Securityholder Questionnaire.
It is important that beneficial owners of the Notes receive a copy of the enclosed materials as soon as possible as their rights to have the Notes included in the registration statement depend upon their returning the Notice and Questionnaire by [Deadline For Response].  Please forward a copy of the enclosed documents to each beneficial owner that holds interests in the Notes through you.  If you require more copies of the enclosed materials or have any questions pertaining to this matter, please contact the Issuers c/o CCO Holdings, LLC, 440 Atlantic Street, 10th Floor, Stamford, Connecticut 06901, Attention:  Secretary. 
(a)    Not less than 28 calendar days from date of mailing.

A- 1

CCO HOLDINGS, LLC
CCO HOLDINGS CAPITAL CORPORATION

Notice of Registration Statement
and
Selling Securityholder Questionnaire

(Date)

Reference is hereby made to the Exchange and Registration Rights Agreement (the “Exchange and Registration Rights Agreement”) between CCO Holdings, LLC and CCO Holdings Capital Corp. (together, the “Issuers”), the guarantor party thereto, and the Purchasers named therein.  Pursuant to the Exchange and Registration Rights Agreement, the Issuers have filed with the United States Securities and Exchange Commission (the “Commission”) a registration statement on Form S-1 (the “Shelf Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Issuers’ 5.875% Senior Notes due 2027 issued on April 21, 2015 (the “Notes”).  A copy of the Exchange and Registration Rights Agreement is attached hereto.  All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Exchange and Registration Rights Agreement.
Each beneficial owner of Registrable Securities is entitled to have the Registrable Securities beneficially owned by it included in the Shelf Registration Statement.  In order to have Registrable Securities included in the Shelf Registration Statement, this Notice of Registration Statement and Selling Securityholder Questionnaire (“Notice and Questionnaire”) must be completed, executed and delivered to the Issuers’ counsel at the address set forth herein for receipt ON OR BEFORE [Deadline for Response].  Beneficial owners of Registrable Securities who do not complete, execute and return this Notice and Questionnaire by such date (i) will not be named as selling securityholders in the Shelf Registration Statement and (ii) may not use the Prospectus forming a part thereof for resales of Registrable Securities.
Certain legal consequences arise from being named as a selling securityholder in the Shelf Registration Statement and related prospectus.  Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Shelf Registration Statement and related prospectus.

A- 2

ELECTION
The undersigned holder (the “Selling Securityholder”) of Registrable Securities hereby elects to include in the Shelf Registration Statement the Registrable Securities beneficially owned by it and listed below in Item (3).  The undersigned, by signing and returning this Notice and Questionnaire, agrees to be bound with respect to such Registrable Securities by the terms and conditions of this Notice and Questionnaire and the Exchange and Registration Rights Agreement, including, without limitation, Section 6 of the Exchange and Registration Rights Agreement, as if the undersigned Selling Securityholder were an original party thereto.
Upon any sale of Registrable Securities pursuant to the Shelf Registration Statement, the Selling Securityholder will be required to deliver to the Issuers and the Trustee the Notice of Transfer Pursuant to Registration Statement set forth in Exhibit B to the Exchange and Registration Rights Agreement.
The Selling Securityholder hereby provides the following information to the Issuers and represents and warrants that such information is accurate and complete:
QUESTIONNAIRE
		
	(1)
	(a)    Full Legal Name of Selling Securityholder:

(b)    Full Legal Name of Registered Holder (if not the same as in (a) above) of Registrable Securities Listed in Item (3) below:
(c)    Full Legal Name of DTC Participant (if applicable and if not the same as (b) above) Through Which Registrable Securities Listed in Item (3) below are Held:
		
	(2)
	Address for Notices to Selling Securityholder:

_______________________________
_______________________________
_______________________________
Telephone:    _______________________________
Fax:    _______________________________
Contact Person:    _______________________________

		
	(3)
	Beneficial Ownership of Notes:

Except as set forth below in this Item (3), the undersigned does not beneficially own any Notes.
		
	(a)
	Principal amount of Registrable Securities beneficially owned:

____________________________________________________________
CUSIP No(s). of such Registrable Securities:  _______________________ 

A- 3

 
		
	(b)
	Principal amount of Notes other than Registrable Securities beneficially owned: _____________________________________________________________

CUSIP No(s). of such other Notes:  ________________________________    
		
	(c)
	Principal amount of Registrable Securities which the undersigned wishes to be included in the Shelf Registration Statement:  __________________________________

CUSIP No(s). of such Registrable Securities to be included in the Shelf Registration Statement:  ____________________________________________________    
		
	(4)
	Beneficial Ownership of Other Securities of the Issuers:

Except as set forth below in this Item (4), the undersigned Selling Securityholder is not the beneficial or registered owner of any other securities of the Issuers other than the Notes listed above in Item (3).
State any exceptions here:  
		
	(5)
	Relationships with the Issuers:

Except as set forth below, neither the Selling Securityholder nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with the Issuers (or their respective predecessors or affiliates) during the past three years.
State any exceptions here:
		
	(6)
	Plan of Distribution:

Except as set forth below, the undersigned Selling Securityholder intends to distribute the Registrable Securities listed above in Item (3) only as follows (if at all):  Such Registrable Securities may be sold from time to time directly by the undersigned Selling Securityholder or, alternatively, through underwriters, broker-dealers or agents.  Such Registrable Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices.  Such sales may be effected in transactions (which may involve crosses or block transactions) (i) on any national securities exchange or quotation service on which the Registrable Securities may be listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise than on such exchanges or services or in the over-the-counter market, or (iv) through the writing of options.  In connection with sales of the Registrable Securities or otherwise, the Selling Securityholder may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities in the course of hedging the positions they assume.  The Selling Securityholder may also sell Registrable Securities short and deliver Registrable Securities to close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell such Registrable Securities.

A- 4

State any exceptions here:
By signing below, the Selling Securityholder acknowledges that it understands its obligation to comply, and agrees that it will comply, with the provisions of the Exchange Act including, without limitation, Regulation M.
In the event that the Selling Securityholder transfers all or any portion of the Registrable Securities listed in Item (3) above after the date on which such information is provided to the Issuers, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer of its rights and obligations under this Notice and Questionnaire and the Exchange and Registration Rights Agreement.
By signing below, the Selling Securityholder consents to the disclosure of the information contained herein in its answers to Items (1) through (6) above and the inclusion of such information in the Shelf Registration Statement and related Prospectus.  The Selling Securityholder understands that such information will be relied upon by the Issuers in connection with the preparation of the Shelf Registration Statement and related Prospectus.
In accordance with the Selling Securityholder’s obligation under Section 3(e) of the Exchange and Registration Rights Agreement to provide such information as may be required by law for inclusion in the Shelf Registration Statement, the Selling Securityholder agrees to promptly notify the Issuers of any inaccuracies or changes in the information provided herein which may occur subsequent to the date hereof at any time while the Shelf Registration Statement remains in effect.  All notices hereunder and pursuant to the Exchange and Registration Rights Agreement shall be made in writing, by hand-delivery, first-class mail, or air courier guaranteeing overnight delivery as follows:
(i)    To the Issuers:
_________________________
_________________________
_________________________
_________________________
_________________________

(ii)    With a copy to:
_________________________
_________________________
_________________________
_________________________
_________________________

Once this Notice and Questionnaire is executed by the Selling Securityholder and received by the Issuers’ counsel, the terms of this Notice and Questionnaire, and the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Issuers and the Selling Securityholder (with respect to the Registrable Securities beneficially owned by such Selling Securityholder and listed in Item (3) above).  This Agreement shall be

A- 5

governed in all respects by the laws of the State of New York without giving effect to any provisions relating to conflicts of laws.
IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.
Dated:  ____________________
______________________________________________________________________________
Selling Securityholder
(Print/type full legal name of beneficial owner of Registrable Securities)

		
	By:
	___________________________________________

Name:
Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE ISSUERS’ COUNSEL AT:
_________________________
_________________________
_________________________
_________________________
_________________________

A- 6

EXHIBIT B
NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT
CCO Holdings, LLC
CCO Holdings Capital Corp.
440 Atlantic Street, 10th Floor
Stamford, Connecticut  06901
Attention:  Secretary

The Bank of New York Mellon Trust Company, N.A.
[Address]
Attention:  Trust Officer

		
	Re:
	CCO Holdings, LLC and CCO Holdings Capital Corp.

(together, the “Issuers”) 5.875% Senior Notes due 2027 issued on April 21, 2015 (the “Notes”)

Dear Sirs:

Please be advised that ________________ has transferred $___________ aggregate principal amount of the above-referenced Notes pursuant to an effective Registration Statement on Form S-1 (File No. 333-____) filed by the Issuers.
We hereby certify that the prospectus delivery requirements, if any, of the Securities Act of 1933, as amended, have been satisfied and that the above-named beneficial owner of the Notes is named as a “Selling Holder” in the prospectus dated [date] or in supplements thereto, and that the aggregate principal amount of the Notes transferred are the Notes listed in such prospectus opposite such owner’s name.
Dated:
Very truly yours,
__________________________________________
(Name)
By:  ______________________________________
(Authorized Signature)

B-1AAMCSTXLeasewithSCFC

Exhibit 10.1

COMMERCIAL LEASE

This Commercial Lease (“Lease”) is entered into as of April 16, 2015, (“Effective Date”) by and between St. Croix Financial Center, Inc., a U.S. Virgin Islands corporation, as the lessor (“Landlord”) and Altisource Asset Management Corporation, a U.S. Virgin Islands corporation, as the lessee (“Tenant”). 

Landlord and Tenant agree as follows: 

1.0    PREMISES.  

1.1    Description of Premises.  In consideration of the rents to be paid and the covenants and agreements to be performed by the parties, Landlord does hereby lease to Tenant, and Tenant does hereby lease from Landlord the following described premises (hereinafter the “Premises”) on St. Croix, U.S. Virgin Islands:

One story wood frame building (“Building”) located on Plot No. 56 of Estate Southgate Farm, consisting of 11.2984 U.S. acres, more or less, East End Quarter “A”, St. Croix, U.S. Virgin Islands, as shown on O.L.G. Drawing No. 4610-A, dated May 15, 1990 (“Land”) together with the use of the sidewalks and parking areas adjacent to the Building, all as shown on the map attached hereto as Exhibit “A” and made a part hereof. 

2.0    Use: It is understood and agreed between the parties that the Premises shall be used and occupied for no purpose, without the prior written consent of Landlord, except for:

General Office Use  

Landlord shall have the absolute right to approve Tenant's use and occupancy of the Premises for any activity other than as set forth herein, and such consent shall not be unreasonably withheld. 

3.0    Term: It is agreed that this Lease shall commence on the Effective Date and terminate at 5:00 pm AST on the date that is the last day of the calendar month that is five (5) years after the Date of Completion/Possession (see Section 22). For example, if the Date of Completion/Possession is September 15, 2015, then the last day of the initial Term of this Lease shall be September 30, 2020. The term of the Lease may be extended as set forth in Section 8.0. 

4.0    Rent:     Beginning with the Date of Completion/Possession, Tenant agrees to pay Landlord as rent hereunder the amount of One Hundred Twenty Thousand U.S. Dollars ($120,000.00) on an annual basis, which shall be paid in twelve (12) equal monthly installments in the amount of $10,000.00 each.  The rent shall be due on the first (1st) day of each calendar month during the remaining term hereof, without demand, deduction, or offset (the “Monthly Rent”).  Should Date of Completion/Possession be any date other than the first day of the calendar month, the amount of rent due for first month shall be proportionately adjusted for the number of days in 

Commercial Lease
SCFC and AAMC
Page 2 

 

the month of occupancy by Tenant or the number of days in the month following the Date of Completion/Possession.

5.0    Renewal Rent Adjustment:  At the commencement of the Renewal Term, if the renewal option is exercised by Tenant, monthly rent payments shall escalate by adding nine percent (9.0%) to the rent paid during the initial term, According, the monthly rent payment during the Renewal Term shall be $10,900 per month ($10,000 x 1.09 = $10,900). 

6.0    Late Fee: Tenant shall pay a late fee equal to 5.0% of the amount due for any payment of rent actually received by Landlord five (5) or more business days after its due date. 

7.0    Security Deposit: No security deposit shall be due and payable. 

8.0     Renewal Option: Provided that no Event of Default has occurred within the prior twelve (12) months, Tenant may elect to renew this Lease for a one term of five (5) additional years (“Renewal Term”).  The Renewal Term will begin on the same day that the original Lease ends.  In order to exercise this renewal option, Tenant must give Landlord written notice of Tenant’s intention to renew no later than six (6) months before the expiration date of this Lease. If said notice is not delivered within the time herein specified, the renewal option shall be considered not to have been exercised, and shall be null and void and of no effect unless otherwise agreed between Tenant and Landlord. In the event that this Renewal Option is exercised, Tenant shall pay rent to the Landlord during the Renewal Term pursuant to Sections 4.0 and 5.0 and the definition of a ‘Lease Year” shall not change. All terms and conditions of this Lease shall remain in full effect during the First Renewal Term.

9.0    Intentionally Omitted. 

10.0    Insurance:  

10.1    Tenant’s Insurance.  Tenant, at Tenant’s expense, will procure and keep in effect during the Term hereof the following insurance:

10.1(a)     Commercial General Liability Insurance (“Liability Insurance”) for the benefit of Landlord and naming Landlord as an additional insured, with combined single limits of at least ONE MILLION DOLLARS ($1,000,000.00) per occurrence for death, bodily injury and property damage.  

10.1(b)  Causes of Loss – Special Form Insurance or equivalent (sometimes known as “All Risks Insurance”) (“Property Insurance”) on the leasehold improvements (including the Work) made or paid for by Tenant and the personal property owned by Tenant now or hereafter located on the Premises to insure against loss or damage by fire, windstorm, earthquakes and against other risks now embraced by so called extended coverage all risk endorsements, in amounts sufficient to prevent Landlord or Tenant from becoming a co-insurers of any partial loss under the terms of the applicable policies, but in no event less than the Budget amount for the leasehold upfit and the furniture, equipment and furnishings. Proceeds of such insurance shall be used first to restore, repair or replace 

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Tenant’s leasehold improvements (the Work) to their existing condition prior to such casualty (unless the Lease is terminated as provided herein) and all surplus proceeds remaining after such payment for such restoration, repair or replacement shall belong to Tenant. If the Lease is terminated, then all such proceeds shall belong to Tenant. 

10.1(c)  All insurance provided for in this Lease to be obtained by Tenant shall be placed into effect under enforceable policies issued by insurers licensed to do business in the U.S. Virgin Islands and approved by Landlord, which approval will not be unreasonably withheld or delayed.  Tenant shall inform such person as may be designated by Landlord of all transactions concerning the insurance to be purchased by Tenant pursuant to this Lease.  Tenant shall cause the Landlord to be named as an “Additional Insured” on the Liability Insurance policy and on the Property Insurance policy. At the request of Landlord, any Property Insurance policy shall be made payable to the holders of any mortgage to which this Lease is at any time subordinate, as the interest of such holders may appear, pursuant to a standard clause for holders of mortgages. The proceeds of Tenant’s Property Insurance shall however be distributed as provided in this Lease regardless of the provisions of the mortgage. 

To the extent obtainable, all policies shall contain an agreement by the insurers that: 

(a) Any loss shall be payable to Landlord or the holders of any such mortgage, notwithstanding any act or negligence of Tenant that might otherwise result in forfeiture of such insurance; 
(b) That such policies shall not be canceled except upon ten (10) days prior written notice to Landlord and to the holders of any mortgage, and 
(c) That the coverage afforded thereby shall not be affected by the performance of any work in or about the leased property.
Each policy shall expressly provide that the coverage provided by such policy shall be deemed primary insurance and that any insurance provided by or on behalf of Landlord shall be in excess of any insurance provided by such policy. Tenant shall furnish Landlord, or cause to be furnished to Landlord, currently with the execution of this Lease, and prior to the inception of each successive policy period, evidence of insurance in form satisfactory to Landlord and, upon request by Landlord, copies of such policies required to be maintained hereunder naming Landlord as an additional insured thereunder. Upon request of Landlord, Tenant shall also provide coverage under such insurance (or so much thereof as Landlord may require) for the benefit of the Landlord’s Mortgagee holding a lien on the Premises and shall name such Mortgagee under a standard mortgagee provision. All property damage insurance policies shall either permit or contain an express waiver of any right of recovery (by subrogation or otherwise) by the insurance company against Landlord. 

10.2    Landlord’s Insurance.  Landlord, at Landlord’s expense, will procure and keep in effect during the Term hereof the following insurance:

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10.(a)  Commercial General Liability Insurance (“Liability Insurance”) with combined single limits of at least ONE MILLION DOLLARS ($1,000,000.00) per occurrence for death, bodily injury and property damage. 

10.2(b)      Causes of Loss – Special Form Insurance or equivalent (sometimes known as “All Risks Insurance”) (“Property Insurance”) on the Building and the personal property owned by Landlord now or hereafter located in the Building to insure against loss or damage by fire, (excluding windstorm and earthquakes) and against other risks now embraced by so called extended coverage all risk endorsements, in amounts sufficient to prevent Landlord or Tenant from becoming a co-insurers of any partial loss under the terms of the applicable policies. Proceeds of such insurance shall be used first to restore, repair or replace the Building to its existing condition prior to such casualty (unless the Lease is terminated as provided herein) and all surplus proceeds remaining after such payment for such restoration, repair or replacement shall belong to Tenant. If the Lease is terminated, then all such proceeds shall belong to Landlord. Tenant acknowledges that Landlord’s policy of property insurance may include commercially reasonable deductible limits, and that, notwithstanding the waiver set forth in Section 10.3, such deductible amounts shall, if Tenant or any person acting at the direction or under the control of Tenant is the cause of any loss covered by Landlord’s policy of property insurance, be considered the sole responsibility of Tenant hereunder to the extent of Tenant’s fault. 

All property damage insurance policies shall either permit or contain an express waiver of any right of recovery (by subrogation or otherwise) by the insurance company against Tenant.  

10.3     Landlord and Tenant each hereby waives any and every right or cause of action for any and all loss of, or damage to, any of its property (whether or not such loss or damage is caused by the fault or negligence of the other party or anyone for whom said other party may be responsible), which loss or damage is actually covered by valid and collectible causes of loss – special form property insurance or equivalent policies maintained by such party or required to be maintained by such party under this Lease and to the extent that such loss or damage is recovered under said insurance policies.  Written notice of the terms of said mutual waivers shall be given to each insurance carrier and said insurance policies shall be properly endorsed, if necessary, to prevent the invalidation of said insurance coverages by reason of said waivers.

11.0    Assignment, Sublease, or other transfer of interest: Tenant covenants not to assign, transfer nor sublet this Lease (collectively “transfer”) nor any part thereof without the express written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed. In the event of any transfer without said written consent, Landlord, in addition to any other remedies available, shall have the right to terminate this Lease, and to re-enter and repossess the Premises.  No subletting, assigning or other transfer of interest as set forth above shall relieve Tenant of its obligations hereunder. The term “sublet” shall be deemed to include but not limited to the granting of licenses, concessions and any other rights of occupancy for any portion of the Premises.  For the purposes hereof, Landlord may consider the following criteria in determining whether to consent to the transfer: (a) the financial wherewithal of the proposed transferee; (b) the business and personal record of the transferee and its principals, including any instances of bankruptcy or criminal convictions; and (c) the proposed use of the Premises by the transferee in the context of 

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the other uses of other Tenants in other property owned by Landlord. All proposed transferees shall reasonably cooperate with Landlord in examining the forgoing criteria and shall promptly provide Landlord with any information reasonably related to such criteria. The transferee’s failure to so cooperate shall be grounds for the Landlord to refuse to consent to the proposed transfer. Provided, however, Tenant shall have the right to assign the Lease to an affiliate of Tenant without the prior written consent of Landlord. If Tenant merges into another entity then the Lease shall be an asset of the surviving entity and the merger shall not be a breach of the transfer restrictions in this Section. 

12.0    Utilities: By the Date of Possession/Completion, Tenant shall initiate, contract for and obtain in the Tenant’s name all utility services required on the Premises, including electricity, water and telephone, exterminating and garbage removal services and Tenant shall pay all charges for these services as they become due.  Tenant hereby indemnifies Landlord and holds Landlord harmless from any and all claims for the payment for said utilities. Tenant shall pay for all meters and installations necessary. 

The existing generator providing standby electricity to the Building (and other buildings) will be available for Tenant’s use and Landlord shall maintain such generator for the Term.  Tenant shall pay a reasonable prorata share of the costs of the diesel fuel, oil and other operating expenses of the generator. 

13.0    Insolvency of Lessee: Tenant agrees that if the estate created hereby shall be taken in execution, or by other process of law, or if Tenant shall be declared bankrupt or insolvent, according to law, or any receiver be appointed for the business and property of Tenant, or if any assignment shall be made of Tenant' property for the benefit of creditors and in all cases such event is not cured within 60 days, then and in such event this Lease may be canceled at the option of Landlord. 

14.0    Intentionally Omitted. 

15.0    Estoppel Certificate:  At any time during the term of this Lease, Tenant shall, within ten (10) days of the written request by Landlord, execute, acknowledge and deliver to Landlord, any mortgagee, prospective mortgagee, or any prospective purchaser of the Premises, an estoppel certificate in recordable form or in such other form as Landlord may from time to time require, evidencing whether (a) this Lease is in full force and effect; (b) this Lease has been amended in any way; (c) Tenant has accepted and is occupying the Premises; (d) there are any existing defaults on the part of Landlord hereunder or any defenses or setoffs against the enforcement of this Lease to the knowledge of Tenant (and specifying the nature of any such defaults, defenses or offsets, if any); (e) the date to which rents and other amounts due hereunder, if any, have been paid; and (f) any other information as may be reasonably requested by Landlord.  Each certificate delivered pursuant to this paragraph may be relied upon by Landlord or any other party to whom the certificate is addressed.

At any time during the term of this Lease, Landlord shall, within ten (10) days of the written request by Tenant, execute, acknowledge and deliver to Tenant, any mortgagee, prospective mortgagee or government agency an estoppel certificate in recordable form or in such other form as Tenant may from time to time require, evidencing whether (a) this Lease is in full force and 

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effect; (b) this Lease has been amended in any way; (c) there are any existing defaults on the part of Tenant hereunder or any defenses or setoffs against the enforcement of this Lease to the knowledge of Landlord (and specifying the nature of any such defaults, defenses or offsets, if any); (d) the date to which rents and other amounts due hereunder, if any, have been paid; and (e) any other information as may be reasonably requested by Tenant.  Each certificate delivered pursuant to this paragraph may be relied upon by Tenant or any other party to whom the certificate is addressed. 

16.0    Quiet Enjoyment: Upon payment by Tenant of the rents herein provided, and upon the observance of all of the covenants, terms and conditions on the Tenant’s part to be observed and performed, the Tenant shall peaceably and quietly enjoy the Premises for the term hereof without hindrance or interruption by the Landlord or any other person or persons lawfully or equitably claiming by, through or under the Landlord, subject, nevertheless, to the terms of this Lease.

17.0    Improvements:  Any alterations, additions or improvements by Tenant shall be done in accordance with all requirements and local regulations. Prior to commencement of any alterations, additions or improvements in excess of $50,000 or of a structural nature, Tenant must present Landlord with all plans and specifications, and obtain Landlord’s permission for the work to take place, which consent shall not be unreasonably withheld, conditioned or delayed, prior to filing for any permit(s).  In addition Tenant must demonstrate to the reasonable satisfaction of Landlord that the alterations, additions or improvements comply with all applicable sections of the Americans With Disabilities Act (the “ADA”) rules and regulations and that the cost of any modifications to the Premises occasioned by the alterations, additions or improvements and required by the ADA shall be borne by Tenant.

18.0 Construction or Other Liens: LANDLORD OR ITS PROPERTY SHALL NOT BE LIABLE FOR NOR SUBJECT TO CONSTRUCTION LIENS, MATERIALMEN’S LIENS, OR MECHANICS LIENS.  Landlord’s approval of any alterations, additions or improvements shall not be deemed a consent the imposition of any such liens. Tenant shall neither cause nor permit any lien to be placed or filed against the Premises. Any mechanics' lien, construction lien or materialmen’s lien filed against the Premises, or the Building or the land on which the Building is located, for work claimed to have been done for, or materials claimed to have been furnished to Tenant, shall be discharged or bonded over by Tenant within twenty (20) days thereafter, at Tenant's expense. Tenant shall make no contract or agreement for the construction, alteration, or repairing of any building or other improvement on the Premises that shall call for the payment of more than Fifty Thousand Dollars ($50,000.00) for the purchase of material to be used for work and labor to be performed in and about the construction, alteration, or repair to be made, unless such contract or agreement is in writing, contains an express waiver by such contractor of any and all claim for mechanic's, construction or materialmen's liens against the Premises, the Building or the land upon which the Building is located (including those to be made and erected under the terms of this Lease) and a copy of which is delivered to Landlord prior to the commencement of any work thereunder (excluding contracts for the general maintain, repair and/or replacement of any of the leasehold improvements being made pursuant to this Lease). Nothing herein shall be construed as permitting any mechanic's, construction or materialmen's liens against the Premises, the Building or the land on which the Building is located stemming from contracts in an amount less than $50,000.00. 

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19.0    Improvements to Landlord’s Property: Any and all alterations, additions and improvements on or in the Premises at the commencement of the Lease Term, as well as any that may be erected or installed during the Lease Term, shall become part of the Premises and the sole property of Landlord upon the expiration of the Term (including any renewal terms) or earlier proper termination of this Lease. All movable trade fixtures, furniture, furnishings, servers and computers, equipment and other personal property placed in the Premises by Tenant shall be and remain the property of Tenant.  Movable trade fixtures shall not include any portion of any building, structure or slab erected or placed on the Premises.

20.0    Landlord’s Election: Except in the event Landlord shall elect otherwise in writing at the time such approval is provided for such work, alterations, installations, additions or improvements made by Tenant upon the Premises (other than the Work) as Landlord shall select, shall be removed by Tenant and Tenant shall restore the Premises to the condition of the Premises following completion of the Work, at Tenant’s own cost and expense, prior to the expiration of the term.

21.0    Work To Be Done By Tenant:  Upon the signing of this Lease Tenant shall, at Tenant’s sole expense, promptly commence and complete to the reasonable satisfaction of Landlord, the following described work:

NONE 

(Tenant shall pay all material and labor costs related to the forgoing work and shall utilize only new and quality materials.) 

22.0    Work To Be Done By Landlord:  Upon the signing of this Lease, Landlord will promptly commence and complete to the reasonable satisfaction of Tenant the work described in this Section 22.0. 

22.1    Landlord and Tenant agree that the Premises has to be improved to be suitable for Tenant’s occupancy and use as its corporate offices. Landlord and Tenant hereby designate George Ashley as the architect (“Designated Architect”) for this construction project and Landlord agrees to hire the Designated Architect as the architect and supervisor of construction as provided in this Section 22.0. Designated Architect shall prepare working plans and specifications for the upfit of the Premises (“Plans and Specifications”) and a construction budget and draw schedule (collectively “Budget”) to make renovations to the exterior and interior of the Building to make it suitable for use by Tenant as its corporate offices and to construct a deck off the eastern side of the Building facing the marina according to plans already prepared by the Designated Architect (see Exhibit “B” attached hereto and made a part hereof), which Plans and Specifications and Budget must be reasonably acceptable to Landlord and Tenant. Landlord and Tenant shall work together to designate one or more contractors (“Designated Contractor”) to perform the work described in this Section 22.0. Landlord shall hire one or more Designated Contractors acceptable to Tenant to perform the construction of the interior and exterior improvements and the deck described in the Plans and Specifications (collectively the “Work”) for prices that are consistent with the Budget. All Work 

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shall be completed to the reasonable satisfaction of Landlord and Tenant. All warranties for work and materials from contractors and suppliers shall be in favor of Landlord and Tenant.   

Tenant shall reimburse Landlord for the actual cost of the Work as provided in Section 22.3. 

Landlord and Tenant may agree upon changes to the Plans and Specifications and such changes shall be evidenced by a written change order signed by Landlord and Tenant. The  Budget shall be revised as part of such change order to reflect any reasonable increase or decrease in the cost of the Work resulting from the changes to the Plans and Specifications. 

22.2      Landlord hereby agrees to promptly commence performance of the Work following the signing of this Lease and to thereafter diligently perform the Work in accordance with the Plans and Specifications and all applicable laws, codes, rules and regulations and in a good and workmanlike manner.  The Landlord shall supply or cause to be supplied all materials and all services, skill, permits, superintendence and all things and services of every description reasonably necessary and appropriate to carry out and complete the Work as provided in the Plans and Specifications.  Possession of the Premises for occupancy by Tenant shall be delivered to Tenant when all of the Work has been finally completed (“Final Completion”)and accepted by the Designated Architect and Tenant (“Date of Completion/Possession”).  

22.3     Landlord may submit applications for payment (“Applications for Payment”) monthly during construction based on the amount of Work actually completed and applications for payment submitted by the Designated Contractor. Each Application for Payment shall be based on the schedule of values in the Budget and must be approved by Designated Architect and Tenant. Based upon Applications for Payment submitted by the Landlord to the Tenant which have been approved by Designated Architect and Tenant, Tenant shall make progress payments to the Landlord as the Work is completed. Prior to payment by Tenant under each Application for Payment, Tenant shall have the right to inspect the Work to verify that (i) the Work has been done in accordance with the Plans and Specifications and all applicable laws, codes, rules and regulations and (ii) such Work is reasonably satisfactory to Tenant. Tenant shall take all commercially reasonable efforts to inspect the Work within five business days of its receipt of each Application for Payment and hereby designates Designated Architect as its representative to inspect the Work. Tenant shall pay approved Applications for Payment within seven (7) business days after the date of the approval. In addition, upon request by Tenant, Landlord shall obtain (and deliver a copy to Tenant) from its contractors, subcontractors and suppliers signed lien waivers for the amounts paid to the party signing the lien waiver. Final payment, being the entire unpaid balance of the Budget, shall be made by the Tenant to the Tenant when the Work has been fully completed and the Premises are delivered to Tenant for occupancy. In the event there is any dispute between Landlord and Tenant concerning the performance of the Work, the amount of any payment due or otherwise, the dispute shall be resolved by Designated Architect and Landlord and Tenant agree to be bound by Designated Architect’s decision. 

22.4     Landlord (or its contractors) shall obtain and maintain from a company or companies lawfully authorized to do business in the U.S. Virgin Islands  (i) insurance for protection from claims under workers' or workmen's compensation acts and other employee benefit acts which are 

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applicable, and (ii) liability insurance claims for damages because of bodily injury, including death, and from claims for damages, other than to the Work itself, to property which may arise out of or result from the Landlord or its contractor's performance of the Work, whether such operations are by the Landlord, contractor or by a subcontractor or anyone directly or indirectly employed by any of them.  Upon request, certificates of such insurance shall be filed with the Tenant. 

22.5    Tenant shall provide builder’s risk insurance coverage. Limits of coverage shall be the total cost of the Work as set forth in the Budget. Coverage shall be provided in an amount equal to the full replacement value of the Work and costs of debris removal for any single occurrence. Name insureds shall include Landlord, Tenant, and designated contractors and all subcontractors. Coverage is to be written on causes of loss-special form to cover “all risks” of physical loss except those specifically excluded in the policy. 

23.0    Repairs and Maintenance by Landlord:  Landlord shall maintain at its expense all structural components, roof, foundation, exterior walls, and exterior portions of the Building in good order, condition and repair during the term of this Lease and any renewal or extension thereof. Landlord shall also maintain all mechanical, electrical, plumbing and drainage systems which are outside of the Premises but which provide service to the Premises in good order, condition and repair. Landlord shall have no obligation to maintain and repair any portion of the air conditioning system. Landlord shall have no obligation to inspect the Premises.  Tenant shall promptly report in writing to Landlord any defective condition known to it, whether Tenant or Landlord is required to repair it, and the failure by Tenant to so report such defects shall make Tenant responsible to Landlord for any liability incurred by Landlord by reason of such defects.  Landlord shall have no obligation to make repairs that are its responsibility until it has received such written notice from Tenant.  Landlord shall make such repairs within a reasonable time after receiving such written notice from Tenant. In addition, Landlord shall maintain the common areas surrounding or serving the Premises, if any, in good order, condition and repair during the term of the Lease and any renewal or extension thereof, which maintenance and repair shall include but not be limited to the removal from the common areas of all papers, debris, filth and refuse, when reasonably necessary. Landlord shall comply with all and any duly authorized requirements of government authorities applicable to those elements that are Landlord’s obligation to maintain hereunder.  

If Landlord fails to perform its obligations under this Section 23 within twenty (20) days after receiving notice of such need, same may be made by Tenant at the expense of Landlord and Tenant may deduct the amount paid from the rent due hereunder. Any dispute between Landlord and Tenant concerning the obligations and performance under this Section 23  shall be resolved by mediation and arbitration as provided in Section 50 hereof.

24.0     Repairs & Maintenance by Tenant:  Tenant shall maintain and repair at its expense all of the interior and non-structural portions of the Premises in good order, condition and repair during the term of this Lease.  For the purposes hereof, it is understood that the term interior and non-structural shall include, but not be limited to: all such items as interior (non-structural) walls, ceilings and floor coverings, finishes and/or membranes; all window panes, frames, sills and trim; all interior lighting fixtures (including switches and outlets); all interior plumbing and plumbing fixtures (including sinks, lavatories, etc.); all air conditioning units and all portions of the air 

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conditioning system, wherever located. The Tenant shall maintain the Premises in a neat, clean and sanitary condition at all times. Tenant shall maintain the sidewalk and the parking area that are part of the Premises in a clean, neat and safe condition.  

If Tenant fails to maintain the Premises in good order, condition and repair or fails to make such repairs or restorations within twenty (20) days after receiving notice of such need, same may be made by Landlord at the expense of Tenant and collectible as Additional Rent or otherwise and shall be paid by Tenant within five (5) days after rendition of a bill or statement thereof. Any dispute between Landlord and Tenant concerning the obligations and performance under this Section 24 shall be resolved by mediation and arbitration as provided in Section 50 hereof. 

There shall be no liability on the part of Landlord by reason of inconvenience, annoyance or injury to business arising from Landlord, Tenant or others making any repairs, alterations or improvements in or to any portion of the Building, or in or to fixtures, appurtenances, or equipment thereof, and no liability upon Landlord for failure of Landlord or others to make any repairs, alterations, additions or improvements, except as set forth above with regard to the exterior, structural and roof portions of the building, in or to any portion of the Building or of the Premises, or in or to the fixtures, appurtenances or equipment thereof.  Tenant shall comply with all and any duly authorized requirements of government authorities applicable to those elements that are Tenant’s obligation to maintain hereunder. 

25.0    Condemnation:  Landlord reserves all rights to any award paid because of any taking of the Premises or any part thereof.  Tenant assigns to Landlord any right the Tenant may have to such award.  Further, the Tenant shall make no claims against Landlord for damages in connections with any eminent domain proceeding affecting all or any portion of the Premises. Notwithstanding the foregoing, the Tenant may claim and recover from the condemning authority a separate award for the Tenant’s moving expenses, business dislocation damages, the Tenant’s personal property and fixtures, the unamortized costs of leasehold improvements paid for by the Tenant (including the improvements comprising the Work) and any other award that would not substantially reduce the award payable to Landlord.  Each party shall seek its own award, as limited above, at its own expense, and neither shall have any right to any award made to the other.

26.0    Nuisance & Environmental Compliance:  Tenant shall not perform any acts or carry on any practices that may injure the Premises or improvements, or be a nuisance or menace to Landlord or its business invitees. Tenant shall, at its own expense, comply with all laws and all orders, regulations or ordinances of all governmental agencies and authorities affecting its’ use of the Leased Premises and the parking area. Tenant shall not block nor interfere in any way with any other tenant's leased premises, except that Tenant shall have the right to restrict access to the parking area to its employees, invites, and guests. Tenant shall not place any merchandise or advertising of any kind outside of the Premises without Landlord’s written consent, which may be unreasonably withheld.  Tenant shall not cause nor permit any Hazardous Substance to be spilled, leaked, disposed of, or otherwise released on or under the Premises.  Tenant may use or otherwise handle on the Premises only those Hazardous Substances typically used or sold in the prudent and safe operation of the business specified herein.  Tenant may store such Hazardous Substances on the Premises only in quantities necessary to satisfy Tenant’s reasonably anticipated needs.  Tenant shall comply 

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with all Environmental Laws and exercise the highest degree of care in the use, handling, and storage of Hazardous Substances and shall take all practicable measures to minimize the quantity and toxicity of Hazardous Substances used, handled, or stored on the Premises.  Upon the expiration or termination of this Lease, Tenant shall remove all Hazardous Substances from the Premises.  The term Environmental Law shall mean any federal, state or local statute, regulation, or ordinance or any judicial or other governmental order pertaining to the protection of health, safety or the environment.  The term Hazardous Substance shall mean any hazardous, toxic, infectious or radioactive substance, waste, and material as defined or listed by any Environmental Law and shall include, without limitation, petroleum oil and its fractions.

27.0    Indemnification:  Tenant agrees to indemnify, defend and hold Landlord and its employees and agents harmless from any and all Claims which arise from Hazardous Substances which are spilled, leaked, disposed of, or otherwise released upon the Premises or common areas during the term of this Lease, unless such Hazardous Substances are spilled, leaked, disposed of, or otherwise released upon the Real Property or Premises or common areas by prior tenants, tenants of adjoining premises or by Landlord or its employees, contractors, or agents. The indemnity set forth herein shall survive the expiration or early termination of this Lease.

28.0    Landlord Not Liable: To the fullest extent permitted by law, Tenant agrees that Landlord and Landlord's agents and employees shall not be liable for, and Tenant waives all claims for, damage to person or property sustained by Tenant or any person claiming through Tenant, regardless of the cause thereof, resulting from any accident or occurrence in or upon the  Premises or the Building of which they are a part, or any other part of the Building, including but not limited to claims for damage resulting from: (a) any equipment or appurtenances being repaired; (b) injury done or occasioned by wind; (c) any defect in or failure of plumbing or air conditioning equipment, electric wiring or installation thereof; (d) broken glass; (e) the backing up of any sewer pipe or downspout; (f) the bursting, leaking or running of any tank, tub, washstand, water closet, waste pipe, drain or any other pipe or tank in, upon or about such building or  Premises; (g) the falling of any fixture, plaster, tile or stucco; and (h) any act, omission or negligence of co-tenants, licensees or of any other persons or occupants of the Building. Notwithstanding the foregoing, Landlord shall not be released from liability to Tenant for and to the extent of any injury and damages caused by the Landlord failure to perform its obligations hereunder or by the gross negligence or willful misconduct of Landlord or its employees, contractors, or agents.  

29.0    Obligation to Pay Rent: This Lease and the obligation of Tenant to pay rent hereunder and perform all of the other covenants and agreements hereunder on the part of Tenant to be performed shall in no wise be affected, impaired or excused because Landlord is unable to fulfill any of its obligations under this Lease or to supply or is delayed in supplying any service expressly or impliedly to be supplied or is unable to make, or is delayed in making repairs, additions, alterations or decorations or is unable to supply or is delayed in supplying any equipment or fixtures if Landlord is prevented or delayed from so doing by reason of strike or labor troubles or any outside cause whatsoever including, but not limited to, government pre-emption in connection with a National Emergency or by reason of any rule, order or regulation of any department or subdivision thereof of any government agency or by reason of the conditions of supply and demand. 

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If Tenant is not able to reasonably occupy the Premises as its corporate offices, then Landlord will use good faith commercially reasonable efforts to find suitable replacement temporary office space for Tenant at a reasonable rental rate until the Premises are again suitable for Tenant’s use as its corporate offices. 

This Lease and the obligation of Landlord to perform all of the other covenants and agreements hereunder on the part of Landlord to be performed shall in no wise be affected, impaired or excused because Tenant is unable to fulfill any of its obligations under this Lease or is unable to make, or is delayed in making repairs, additions, alterations or decorations or is unable to supply or is delayed in supplying any equipment or fixtures if Tenant is prevented or delayed from so doing by reason of strike or labor troubles or any outside cause whatsoever including, but not limited to, government pre-emption in connection with a National Emergency or by reason of any rule, order or regulation of any department or subdivision thereof of any government agency or by reason of the conditions of supply and demand.

30.0    Indemnification: To the fullest extent permitted by law, Tenant hereby indemnifies Landlord and holds Landlord harmless of and from all claims: arising from the conduct or management of, or from, any work or thing whatsoever done in or about, the  Premises, the Building or the equipment thereof during the term of this Lease; arising during such term from any condition of sidewalk or parking area comprising the Premises appurtenant thereto; arising from any act or negligence of Tenant or any of its agents, contractors, employees, guests or business invitees; to any person or persons or to the property of any person, persons, corporation, or corporations, occurring during such term on, in, or about the Premises including the sidewalk, and parking area.  Tenant hereby also indemnifies Landlord against and holds Landlord harmless from all costs, counsel fees, and liabilities incurred in or about any such claim or in or about any action or proceeding brought thereon, and in case any action or proceeding be brought against Landlord by reason of any such claim, Tenant shall, on notice from Landlord, resist or defend such action or proceeding by counsel satisfactory to Landlord.  

31.0    Damage to or Destruction of Leased Premises: 

31.1    If the Premises or any part thereof shall be damaged by fire or any other cause, Tenant shall give prompt notice thereof to Landlord. 

31.2    If, in the reasonable judgment of Landlord’s contractor or architect and Tenant’s contractor or architect, full restoration of the Premises within a period of four (4) months from the date of the damage is reasonably possible, then Landlord shall restore the Premises with the leasehold improvements comprising the Work to the condition they were in just prior to the casualty damage, provided adequate insurance proceeds are available and received by Landlord from Landlord’s and Tenant’s property insurance policies (Tenant shall make property insurance proceeds received for the leasehold improvements available to Landlord).  If the Premises are unusable, in whole or in part, during such restoration, the Monthly Rent and any additional rent shall be proportionately abated to the extent and for the period that the Premises are unusable.  Notwithstanding the foregoing, if any such damage or destruction is the fault of Tenant, its agents, employees, contractors, or invitees, Tenant shall not be entitled to any abatement of rent.

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The Tenant shall be responsible at its sole cost and expense to repair and replace any of the Tenant's equipment, inventory and other personal property and leasehold improvements (other than leasehold improvements comprising the Work) made by Tenant which were damaged or destroyed by such event.  

31.3    If restoration is not reasonably possible, in the judgment of Landlord’s contractor or architect and judgment of Tenant’s contractor or architect, within the aforesaid four (4) month period or if the damage is not adequately covered by property insurance proceeds, Landlord shall promptly so notify Tenant, and Landlord and Tenant shall each have the right to terminate this Lease by giving written notice thereof to the other party within sixty (60) days after the effective date of such notice, in which event this Lease and the tenancy hereunder shall terminate as of the date of such damage or destruction and the Monthly Rent and any additional rent shall be apportioned as of the date of such damage or destruction.  If neither party exercises its right of termination, the Premises shall be restored as provided in Section 31.2 above.

31.4    Notwithstanding anything to the contrary contained herein, in the event that such restoration of the Premises is not substantially completed within six (6) months from the date of the damage, and provided that such delay in substantial completion results from a cause other than force majeure, Tenant shall have the right to terminate this Lease by delivering twenty (20) days’ prior written notice to Landlord, no later than six (6) months and fifteen (15) days from the date of the damage.  In the event the restoration of the Premises is substantially completed within such twenty (20) day period, such right of termination shall be deemed to be void and without effect and the Lease shall remain in full force and effect.  

31.5    If the Lease is terminated, then (i) all such proceeds from the Landlord’s property insurance policy shall belong to Landlord; (ii) all such proceeds from the Tenant’s property insurance on the leasehold improvements (including the Work) made or paid for by Tenant and the personal property owned by Tenant now or hereafter located on the Premises shall belong to Tenant; and (iii)  Tenant shall, in that event, not hold Landlord liable for loss of business, loss of economic opportunity, or any other damages whatsoever. 

31.6    If such damage or destruction to the Premises or Building was caused by Tenant or its employees, contractors, licensees, or invitees, then Tenant shall be liable to Landlord for any and all costs and expenses of performing the repairs and restoration to the Premises and Building if Landlord elects to make the repairs or restoration (or in the event, Landlord elects to terminate the Lease and not to repair or restore the Premises and the Building, then for the reduction in the fair market value of the Premises and the Building caused by the damage or destruction) to the extent such costs and expenses are not actually paid by the proceeds received from insurance obtained by Landlord or Tenant and for any deductible which Landlord may be required to pay under such insurance policy.

31.7    Any dispute between Landlord and Tenant under this Section 31 shall be resolved by mediation and arbitration as provided in Section 50 hereof. 

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32.0    Intentionally Omitted. 

33.0    Signs: Tenant shall place no signs on the Premises or on the sidewalk in front of the Premises or in any area adjoining the Premises without first submitting a design and description of any such sign to the Landlord and receiving the Landlord's written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Landlord hereby approves the installation of one or two small brass signs (approximately 15 inches by 30 inches) placed on the exterior of the Building next to the entrance. 

34.0    Right of Entry: Landlord shall have the right to enter upon the Leased Premises at all reasonable hours for the purpose of inspecting same or making repairs deemed essential by Landlord. Notwithstanding the foregoing, except in case of an emergency, Landlord’s entry is conditioned upon giving the Tenant at least 24 hours prior notice, promptly finishing any work for which Landlord entered, and causing the least practical interference to Tenant’s operations. In all cases, except in an emergency, Landlord shall be accompanied by Tenant or Tenant’s security. 

35.0    Intentionally deleted.

36.0    Landlord’s Lien: In consideration of the mutual benefits arising under this Lease, Tenant, as debtor, hereby grant to Landlord as secured party, a lien and security interest on all equipment, furniture, furnishings and other tangible personal property of Tenants now or hereafter placed in or upon the Leased Premises (the “Tenant’s Personal Property”), and such Tenant’s Personal Property shall be and remain subject to such lien and security interest of Landlord for payment of all rent and other sums agreed to be paid by Tenants herein and the performance by Tenant of all Tenant’s obligations hereunder. Such Tenant’s Personal Property subject to Landlord’s lien shall not be removed from the Premises, except in the normal course of business, without the written consent of Landlord. The provisions of this Lease relating to said lien and security interest and the parties shall constitute a security agreement under the Uniform Commercial Code as enacted by the U.S. Virgin Islands so that Landlord shall have and may enforce a security interest on all Tenants’ Personal Property now or hereafter placed in or on the Premises, including but not limited to all fixtures, machinery, equipment, inventory, furnishings and other articles of personal property now or hereafter placed in or upon the Premises by Tenants. Upon execution of this Lease and as a condition of the operation hereof, Tenant shall as debtor execute such financing statement or statements as Landlord may now or hereafter reasonably request in order that such security interest or interests may be perfected and protected pursuant to the Uniform Commercial Code.  Landlord may at its election at any time file a copy of this Lease as a financing statement.  Landlord, as secured party, shall be entitled to all of the rights and remedies afforded a secured party under the Uniform Commercial Code in addition to and cumulative of the Landlord's liens and rights provided by law, in equity or by the other terms and provisions of this Lease. Upon the occurrence of an event of default by Tenants of which default Tenants shall have notice (as may be required under the Lease) but shall have not cured within the time permitted, if any, Landlord may, in addition to any other remedies provided herein or by law, enter upon the Premises and take possession of any and all Tenant’s Personal Property situated on the Premises or elsewhere and subject to Landlord’s lien without liability for trespass or conversion, and sell the same with or without notice at public or private sale, with or without having such Tenants’ Personal Property at the sale, at which Landlord 

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or its assigns may purchase, and apply the proceeds thereof, less any and all expenses connected with the taking of possession and sale of the Tenant’s Personal Property as a credit against any sums due by Tenant to Landlord.  Any surplus shall be paid to Tenant, and Tenant agrees to pay any deficiency forthwith.  Alternatively, the lien hereby granted may be foreclosed in the manner and form provided by law for foreclosure of chattel mortgages or in any other form provided by law.  Landlord shall deliver to Tenant upon Tenant’s request, however, a subordination of the aforesaid lien and security interest, in favor of a bona fide bank or similar lending institution, which requires a first priority lien upon Tenant’s leasehold improvements or as collateral for a loan to be used to finance leasehold improvements to the leased Premises, or inventory or working capital for the business to be operated at the Leased Premises.  

37.0    Equipment to be Removed: Upon the termination of this Lease, Tenant shall remove all movable trade fixtures, furniture, furnishings, servers and computers, equipment and other personal property placed in the Premises by Tenant, and shall deliver the Premises to the Landlord in a clean condition, normal wear and tear excepted and damage by casualty.  In the event that Tenant fails to remove such personal property, Landlord shall be entitled to take title to said personal property at Landlord's sole option.  Landlord may have said personal property removed at Tenant's cost.  If Tenant abandons the Premises in violation of this Lease, any property that Tenant leaves on the Premises shall be deemed to have been abandoned and may either be retained by Landlord as the property of Landlord or may be disposed of at public or private sale as Landlord sees fit.  Any property of Tenant sold at public or private sale or retained by Landlord shall, at the value of the proceeds of any such sale, or the then current fair market value of such property as may be retained by Landlord, be applied by Landlord against: (a) the expense of Landlord for removal, storage, or sale of the property; (b) the arrears of rent or future rent payable under this Lease; and (c) any other damages to which Landlord may be entitled hereunder.  The balance of such amounts, if any, shall be given to Tenant.

38.0    Tenant Holding Over: The failure of Tenant to surrender the Premises at the conclusion of the initial term of this Lease or at the termination of any applicable Renewal Option Term and the subsequent holding over by Tenant, with or without the consent of Landlord, shall result in the creation of a tenancy which may be canceled by Landlord on seven (7) days’ notice.  The rental for such holding over period shall be in the 50% of the amount of the last applicable Monthly Rent, per week, payable in advance. This provision does not give Tenant any right to hold over at the expiration of the term.  All other terms and conditions of this Lease shall remain in full force during any tenancy created pursuant to this paragraph.

39.0    Default By Tenant: The following shall be deemed an event of default (“Event of Default”) by Tenant: (a) The failure to pay any rent due hereunder when due and such rent is not paid within thirty (30) days after written notice from Landlord to Tenant specifying the nature of the breach; (b) The failure to maintain any insurance required hereunder, which breach is not cured within thirty (30) days after written notice from Landlord to Tenant specifying the nature of the breach; or (c) The failure to cure the non-compliance any of the other conditions or covenants of the Lease for more than thirty (30) days after written notice from Landlord to Tenant specifying the nature of the breach, provided, however, if such non-monetary breach is of a nature which cannot be reasonably cured within such thirty (30) day period, then Tenant shall have such additional time 

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as is necessary as long as Tenant commences to cure the breach within such thirty (30) day period and diligently continues curing such breach.  To the extent that a cure period is provided for a monetary default, an Event of Default shall be deemed cured hereunder only upon the occurrence of the following: (a) Payment of the sum and/or performance of the obligation for which the Notice of Default was given; (b) Payment of the reasonable, documented attorney's fees, if any, for the preparation of the Notice of Default; and (c) Payment of all sums (including late fees and subsequent monthly installments) and/or performance of all obligations under the terms of this Lease that have become due as of the date of cure. 

40.0    Landlord’s Remedies: Upon the occurrence of an Event of Default, Landlord shall have, in addition to all other rights and remedies it may have and to the extent permitted by law, shall have the immediate right of re-entry and may remove all persons and property from the Leased Premises, and such property may be removed and stored in a public warehouse or elsewhere without notice or resort to legal process.

41.0    Action For Restitution:  Landlord, in addition to all other rights and remedies it may have, shall have the right to seek restitution of the Premises by virtue of the summary eviction proceedings provided in 28 VIC §781, et seq.  

42.0    Reletting:  In addition to all other rights and remedies it may have, should the Landlord re-enter as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided by law, Landlord may elect to relet the Premises or any part thereof on such term or terms (which may be a term extending beyond the terms of this Lease) and at such rental or rentals and upon such other terms and conditions as the Landlord in its sole reasonable [i.e., cannot lease to a colleague, associate or other business relationship for no rent, or nominal rent] discretion may deem advisable, upon such reletting all rentals received by the Landlord from such reletting be applied, first, to the payment of any indebtedness other than rent or Additional Rent due hereunder from the Tenant to the Landlord; second, to the payment of any costs and expenses of such reletting, including brokerage fees and attorney's fees; third, to the payment of rent or Additional Rent due and unpaid hereunder, and the residue if any, shall be held by the Landlord and applied in payment of future rents as the same may become due and payable hereunder.  If such rentals received from such reletting during any month be less than that to be paid during that month by the Tenant hereunder, the Tenant shall pay any such deficiency which deficiency shall be calculated and paid monthly for the then-current term (i.e., no renewal term).  Notwithstanding any such reletting without termination, the Landlord may at any time thereafter elect to terminate this Lease.

43.0    Reentry & Termination:    In addition to all other rights and remedies it may have, should the Landlord re-enter as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided by law, Landlord may elect at any time to terminate this Lease and Landlord may recover from the Tenant all damages Landlord may incur by reason of Tenant’s breach hereof, including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in the Lease for the remainder of the stated term over the then reasonable rental value of the Premises for the remainder of the stated term, all of which amount shall be immediately due and payable from the Tenant to the Landlord. 

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No re-entry or taking possession of the Premises by the Landlord shall be construed as an election by Landlord to terminate this Lease unless a written notice of such intention is given to the Tenant or unless the termination thereof is decreed by a Court of competent jurisdiction.  Tenant shall pay Landlord for all reasonable costs and attorney’s fees incurred by Landlord as a result of the occurrence of an Event of Default.
 
44.0    Rights & Remedies: It is agreed that each and every one of the rights, remedies and benefits provided by this Lease to Landlord shall be cumulative, and shall not be exclusive of any other of said rights, remedies and benefits allowed by law.

45.0    Additional Rent Defined: All costs and expenses that Tenant assumes or agrees to pay pursuant to this Lease, other than the Annual Rent amount, shall be deemed Additional Rent and, in the event of non-payment, Landlord shall have all the rights and remedies herein provided for in case of non-payment of the Annual Rent.  If Tenant shall default in making any payment required to be made by Tenant, or shall default in performing any term, covenant, or condition of this Lease, on the part of Tenant to be performed, which shall involve the expenditure of money by Tenant, Landlord, at Landlord's option may, but shall not be obligated to, make such payment or, on behalf of Tenant, expend such sums as may be necessary to perform and fulfill such term, covenant, or condition, and any and all sums so expended by Landlord, with interest thereon at the rate of nine percent (9%) per annum from the day of such expenditure, shall be Additional Rent and shall be repaid by Tenant to Landlord on demand, but no such payment, or expenditure by Landlord shall be deemed a waiver of Tenant's default nor shall it affect any other remedy of Landlord by reason of such default.

46.0    Notices: Whenever under this Lease a provision is made for notice of any kind, it shall be deemed sufficient service thereof if such notice is in writing and, in the case of the Tenant, delivered to the Premises, or in the case of either party, addressed to the respective party to this Lease at the address shown below, deposited in the mail with postage prepaid:

FOR LANDLORD:    St. Croix Financial Center, Inc.  
5001 Tamarind Reef, Suite 28  
Christiansted, VI 00820  
Attn: Kevin M. Brandt. President 
        
        
FOR TENANT:    Altisource Asset Management Corporation 
See below * 
___________________________________
Attention:  General Counsel

           With a courtesy copy to:    facilitynotices@altisource.com 

*   The mailing address of Tenant will change to the Temporary Space when Tenant occupies the Temporary Space shortly after the Effective Date of this Lease. The mailing address 

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will change to the Premises when Tenant occupies the Premises shortly after the Date of Completion/Possession.

47.0    Waiver of Condition or Covenant: It is agreed that if during the course of the administration of this Lease either Landlord or Tenant fails to insist upon strict compliance with each and every condition hereof, such failure shall not be deemed a waiver by Landlord or Tenant with regard to any non-compliance. Regardless of any prior course of conduct, Landlord and Tenant at all times reserve the right to demand strict and timely compliance with all the terms and conditions hereof.

48.0    Covenants Binding on Heirs: The covenants, conditions and agreements made and entered into by the parties hereto are declared binding on their respective heirs, successors, representatives and assigns.

49.0    Waiver of Jury Trial. It is mutually agreed by and between Landlord and Tenant that the respective parties hereto shall and they hereby do waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matter whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use of or occupancy of said Premises, and any emergency statutory or any other statutory remedy.  

50.0    Mediation & Arbitration:  Any dispute, difference, or question which shall arise under or in connection with this Lease shall be resolved first by mediation and, if after a minimum of two (2) eight hour sessions no resolution has been achieved then the parties shall turn to final and binding arbitration pursuant to the Commercial Arbitration Rules of the American Arbitration Association. In consideration of the parties’ waiver of a judicial forum, it is agreed that the decision of the arbitrator shall be final and binding upon Landlord and Tenant and a judgment thereon may be entered in any court of competent jurisdiction in the U.S. Virgin Islands.  The arbitrator shall have the right to award costs and expenses, including reasonable attorney’s fees, in favor of the prevailing party.  This article shall not be interpreted or construed to prevent the Landlord from filing and prosecuting a forcible entry and detainer action under Chapter 33, Subchapter II of Title 28 of the Virgin Islands Code and exercising any other rights and remedies available to Landlord thereunder upon the occurrence of an Event of Default by Tenant under this Lease. The parties expressly agree that the arbitration provisions shall not apply to any dispute or default for which a forcible entry and detainer action under Chapter 33, Subchapter II of Title 28 of the Virgin Islands Code is available. 

51.0    MISCELLANEOUS:  The following minor issues are resolved as: 

(a)  Words "Landlord" and "Tenant" when used herein shall be taken to mean either the singular or the plural and shall refer to male or female, to corporations or partnerships, as the case may be, or as grammatical construction shall require;

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(b) The headings of the various articles of this Lease are intended only for convenience and are not intended to limit, define, or construe the scope of any article of this Lease, nor offset the provisions thereof;
(c) In case of an emergency (the existence of which shall be determined solely by Landlord) if Tenant shall not be present to permit entry, Landlord or its representatives may enter the same forcibly without rendering Landlord or its representatives liable therefor or affecting Tenant' obligations under this Lease; 
(d) Neither the method of computation of rent nor any other provision of this Lease shall be deemed to create any relationship between the parties hereto other than that of Landlord and Tenant; 
(e) Tenant affirms and agrees that Landlord and its agents have made no representations or promises with respect to the Premises or the entry into of this Lease except as in this Lease expressly set forth and that no claim or liability shall be asserted by Tenant against Landlord or its agents for breach of any representations or promises not expressly stated herein; 
(f) This Lease shall not be recorded but a brief Memorandum of Lease, signed by Landlord and Tenant may be recorded at the Office of the Recorder of Deeds, Christiansted, St. Croix; 
(g) The words “term of this Lease” shall mean the initial term of this Lease and any renewal option terms of this Lease; and
(h) Time is of the essence herein.

52.0    TEMPORARY SPACE.  

52.1     Beginning on the Effective Date of this Lease and continuing through the date that is fourteen (14) days after Landlord fully completes performance of all the Work in accordance with the provisions contained in Section 22 (Final Completion) and Landlord delivers possession of the Premises to Tenant (the Date of Completion/Possession), Landlord shall provide Tenant the exclusive use of the following described premises for use as its offices (“Temporary Premises”): 

Building Location:    36C Strand Street 
Floor Level:         Second and Third Floors with balcony  
Address:        Christiansted, St Croix, VI 

52.2    Landlord shall provide the Temporary Premises to Tenant for a monthly rent in the amount of $2,000 per month. Tenant shall pay for electricity, water and other utilities. The provisions of this Lease (other than Sections 1.2 and Sections 4.0 and 5.0) shall apply to the lease of the Temporary Premises by Landlord to Tenant. The provisions dealing with the Work also do not apply to the Temporary Space. If Landlord has not delivered the Premises with the Work fully completed within one year after the Effective Date and such delay is not the result of a Landlord delay, then Tenant shall start paying rent for the Temporary Space at the rate of $4,000.00 per month. 

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53.0    LANDLORD REPRESENTATIONS AND WARRANTIES.  Landlord represents and warrants to Tenant as follows:
a)    Landlord is a limited liability company duly organized, validly existing and in good standing under the laws of the Territory of the United States Virgin Islands.  The execution, delivery and performance of this Lease and the transactions contemplated hereby by the Landlord are within the powers and authority of Landlord and have been duly authorized by all necessary company action by the members and managers of Landlord. The person signing this Lease on behalf of the Landlord has been duly authorized by all necessary action of the Landlord to sign and deliver this Lease. This Lease and all other documents signed by Landlord in connection with the transactions described herein are and will be the legal, valid and binding obligations of the Landlord in accordance with their provisions.
b)    Landlord owns good, marketable and insurable fee simple title to the land underlying the Building, sidewalk and parking area (“Real Property”) free and clear of all mortgages, security interests, judgments, agreements, covenants, tax liens, construction liens, options and other liens or encumbrances that would prevent or adversely affect the ability of Landlord to enter into this Lease and perform its obligations hereunder or for Tenant to enjoy the use of the Premises as contemplated herein for the term of this Lease. Landlord has leased the Temporary Space from Christiansted Restoration Corporation. 
c)    The Building is in good repair and working condition and suitable for the improvements described in the “Work” (as herein defined).
d)    There are no actions, suits or proceedings pending or threatened against, by or affecting Landlord, the Real Property or the Building, which could adversely impact the usability of the Building or Premises for the Use described herein, question or impair the validity of this Lease, question or impair Landlord’s title to the Real Property or of any action to be taken by Landlord pursuant to or in connection with this Lease, in any court or before any governmental agency. Landlord is not the debtor in any bankruptcy, reorganization or other insolvency proceedings of any type.
e)    Landlord shall comply with all applicable laws, rules and regulations applicable to its obligations under this Lease.
f)    To the best of Landlord’s knowledge, neither Landlord nor any tenant or previous owner of the Real Property has disposed of, released or discharged any Hazardous Substances (as defined in Section 26) on, under or about the Real Property. 
g)    To the best of the Landlord’s knowledge, no notice, demand, request for information, citation, summons, complaint or order has been issued, no penalty has been assessed and no investigation or review is pending or threatened by any governmental entity or other party with respect to (i) the alleged violation by Landlord or any prior  tenant or previous owner of any Environmental Law (as defined in Section 26), (ii) the alleged failure by Landlord or any prior tenant or previous owner to have any environmental or other permit, or (iii) the release of any Hazardous Substances onto or from the Real Property.  

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54.0    TENANT REPRESENTATIONS AND WARRANTIES.  Tenant represents and warrants to Landlord as follows:

a)    Tenant is a corporation duly organized, validly existing and in good standing under the laws of U.S. Virgin Islands.  The execution, delivery and performance of this Lease and the transactions contemplated hereby by the Tenant are within the powers and authority of Tenant and have been duly authorized by all necessary corporate action by the directors of Tenant. The person signing this Lease on behalf of the Tenant has been duly authorized by all necessary action of the Tenant to sign and deliver this Lease. This Lease and all other documents signed by Tenant in connection with the transactions described herein are and will be the legal, valid and binding obligations of the Landlord in accordance with their provisions.
b)    There are no actions, suits or proceedings pending or threatened against, by or affecting Tenant, which could adversely impact the validity of Tenant’s obligations under this Lease or of any action to be taken by Tenant pursuant to or in connection with this Lease, in any court or before any governmental agency. Tenant is not the debtor in any bankruptcy, reorganization or other insolvency proceedings of any type.
c)    Tenant shall comply with all applicable laws, rules and regulations applicable to its obligations under this Lease. 

55.0    LEASE COMMISSION TO REALTOR.  NONE.

56.0    ENTIRE AGREEMENT: This Lease constitutes the entire understanding between Tenant and Landlord superseding any former agreements, and its terms may not be amended except in writing executed by both parties.

57.0    RIGHT TO TERMINATE LEASE UPON SALE OF HOTEL AND MARINA:  Notwithstanding any other provision contained herein, if Landlord sells (or forms a joint venture, merges into or consolidates with another entity) the Tamarind Reef Hotel and Green Cay Marina and the purchaser (or the new entity, as the case may be) elects to convert the Building to another use or to remove the Building and replace it with other improvements for use with the operation of the hotel and/or marina and therefore have no rental offices in the Building, then the Landlord (or the purchaser following closing or the new entity) shall have the right to terminate this Lease with one year’s prior written notice to Tenant and the payment of the lease termination payment described in this Section 57.  The cost of the Work described in Section 22 shall be prorated as of the date of termination and the Landlord (or the purchaser following closing, as the case may be) shall pay a lease termination payment to Tenant based on the actual cost of the Work calculated as follows: “Actual Cost of the Work” multiplied by a fraction with the numerator being the number of days from date of termination until the last day of the term of the Lease (the term being the initial 5 year term plus the 5 year renewal term of this Lease for this calculation) (i.e., 10 years) if there had been no early termination and the denominator being the number of days from the Commencement Date until the last day of the term of the Lease (i.e., 3,650 days) if there had been no early termination.  For example, if the Lease is terminated under this Section 57 with 700 days left in the initial 5 year 

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term plus the 5 year renewal term of this Lease, then the amount of refund owed to Tenant would be calculated as follows:  “Actual Cost of the Work” x 700/3,650 = “Amount of Payment to Tenant”. 

Landlord and Tenant have duly executed this Lease effective as of the Effective Date. 

FOR LANDLORD

St. Croix Financial Center, Inc.   

By: /s/ Kevin M. Brandt            
      Kevin M. Brandt, President 

Witness: /s/ M. Mare                

FOR TENANT

Altisource Asset Management Corporation 

By: /s/ George G. Ellison            
       George G. Ellison, Chief Executive Officer

Witness: /s/ Stephen H. Gray            

Tenant Information: 

Name of Primary Contact: Stephen H. Gray 

Email Address(es): Stephen.Gray@AltisourceAMC.com 

Office Phone:  (340) 713-7727     Mobile Phone: (917) 544-7031 

Mailing Address: 402 Strand Street, Frederiksted, USVI 00840 *

Physical Address: 402 Strand Street, Frederiksted, USVI 00840 *

*  The mailing address and physical address of Tenant will change to the Temporary Space (as defined herein) when Tenant occupies the Temporary Space shortly after the Effective Date of this Lease. The mailing address and physical address will change to the Premises 

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(as defined herein) when Tenant occupies the Premises shortly after the Date of Completion/Possession (as defined herein).

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