Document:

exhibit10_4.htm

    Exhibit
10.4

     

    

     

    RESTRUCTURING
AGREEMENT

     

    This
RESTRUCTURING AGREEMENT (this “Agreement”) is made
and entered into as of February 11, 2009 by and between the following
parties:

     

    (a) Paul G.
Allen (the “Undersigned
Holder”);

     

    (b) Charter
Investment, Inc. (“CII”);
and

     

    (c) Charter
Communications, Inc., a Delaware corporation (“CCI” or the “Company” and the
Undersigned Holder, CII and the Company, each, a “Party”, and
collectively, the “Parties”).

     

    RECITALS

     

    WHEREAS, the Company has
determined that a restructuring of certain of its obligations is in the best
interests of its stakeholders;

     

    WHEREAS, other holders of certain claims under
that certain 11% Senior Notes Indenture dated as of September 28, 2005
(each, a “Consenting
11% Old Senior Note Holder”), by and between CCH I, LLC and CCH I Capital
Corp., as issuers, Charter Communications Holdings, LLC, as parent guarantor,
and The Bank of New York Trust Company, N.A., as trustee (the “11% Indenture”),
each of whom are unaffiliated parties, are party to other restructuring
agreements with the Company;

     

    WHEREAS, other holders of
certain claims under that certain 11% Senior Notes Indenture dated as of
September 14, 2006 (each, a “Consenting 11% New Senior
Note Holder”), by and between CCH I, LLC and CCH I Capital Corp., as
issuers, Charter Communications Holdings, LLC, as parent guarantor, and The Bank
of New York Trust Company, N.A., as trustee (the “11% Supplemental
Indenture”), each of whom are unaffiliated parties, are party to other
restructuring agreements with the Company;

     

    WHEREAS, other holders of
certain claims under that certain 10.25% Senior Notes Indenture dated as of
September 14, 2006 (each, a “Consenting 10.25% Old Senior
Note Holder”), by and between CCH II, LLC and CCH II Capital Corp., as
issuers, Charter Communications Holdings, LLC, as parent guarantor, and The Bank
of New York Trust Company, N.A., as trustee (the “10.25% Indenture”),
each of whom are unaffiliated parties, are party to other restructuring
agreements with the Company; 

     

    WHEREAS,
other holders of certain claims under that certain 10.25% Senior Notes
Supplemental Indenture dated as of July 2, 2008 (each, a “Consenting
10.25% New Senior Note Holder” and together with the Undersigned Holder,
the Consenting 11% Old Senior Note Holders, the Consenting 11% New Senior Note
Holders and the Consenting 10.25% Old Senior Note Holders, the “Consenting
Holders”), between CCH II, LLC and CCH II Capital Corp., as 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

      issuers,
Charter Communications Holdings, LLC, as parent guarantor, and The Bank of New
York Mellon Trust Company, N.A., as trustee (the “Supplemental 10.25%
Indenture” and together with the 11% Indenture, the 11% Supplemental
Indenture and the 10.25% Indenture, the “Indentures”),
each of whom are unaffiliated parties, are party to other restructuring
agreements with the Company;

    

     

    WHEREAS, each Consenting
Holder is the holder of a claim, as defined in section 101(5) of the Bankruptcy
Code, 11 U.S.C. §§ 101-1532 (the “Bankruptcy Code”)
arising out of, or related to the 11% Indenture and/or the 11% Supplemental
Indenture (each, a “11% Senior Note
Claim”) and/or the 10.25% Indenture and/or the 10.25% Supplemental
Indenture (each, a “10.25% Senior Note
Claim” and together with the 11% Senior Note Claims, the “Charter Claims”);

     

    WHEREAS, the Parties now
desire to implement a financial restructuring (the “Restructuring”) of
the Company and the Debtors (as defined in the Term Sheet (as defined below)) on
the terms and conditions set forth in the term sheet (including all exhibits and
financing commitments referenced therein, the “Term Sheet”) attached
hereto as Exhibit
1;1

     

    WHEREAS, the Parties intend to
implement the Restructuring through a confirmed joint plan of reorganization,
consistent in all material respects with the terms and conditions set forth in
this Agreement, the Term Sheet and the joint plan of reorganization contemplated
thereby (as the same may be amended from time to time in accordance with the
terms of this Agreement, the “Plan”), for the
Debtors in voluntary cases (the “Chapter 11 Cases”) to
be commenced by the Debtors by jointly filing petitions (the “Petitions”) under
chapter 11 of the Bankruptcy Code (the date of that event being the “Petition Date”) in
the United States Bankruptcy Court (the “Bankruptcy
Court”);

     

    WHEREAS, the Parties have
engaged in good faith negotiations with the objective of reaching an agreement
with regard to restructuring the outstanding claims of, and interests in, the
Company in accordance with the terms set forth in this Agreement and the Term
Sheet;

     

    WHEREAS, each Party has
reviewed, or has had the opportunity to review, this Agreement and the Term
Sheet with the assistance of professional legal advisors of its own
choosing;

     

    WHEREAS, each Consenting
Holder desires to support and vote to accept the Plan and may enter into an
agreement with the Company substantially similar in form and substance to this
Agreement;

     

    WHEREAS, the Company desires
to obtain the commitment of the Consenting Holders to support and vote to accept
the Plan, in each case subject to the terms and conditions set forth herein and
in the other restructuring agreements to which the other Consenting Holders are
party; and

     

     

     

      
        

    

    
      
        
          	
                  1

                	
                  Capitalized
      terms not otherwise defined herein shall have the meaning ascribed to them
      in the Term Sheet.

                

        

         

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    WHEREAS, subject to the
execution of definitive documentation and appropriate approvals by the
Bankruptcy Court of the Plan and the associated disclosure statement (as the
same may be amended from time to time, the “Disclosure
Statement”), each of which, including as amended, shall be consistent
with the Term Sheet, the following sets forth the agreement between the Parties
concerning their respective obligations.

     

    AGREEMENT

     

    NOW THEREFORE, in
consideration of the promises and the mutual covenants and agreements set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties hereby agree as
follows:

     

    1. Term
Sheet.

     

    The Term
Sheet is incorporated by reference herein and is made part of this Agreement as
if fully set forth herein.  The general terms and conditions of the
Restructuring are set forth in the Term Sheet; provided,
however,
that the Term Sheet is supplemented by the terms and conditions of this
Agreement.  In the event of any inconsistencies between the terms of
this Agreement and the Term Sheet, the Term Sheet shall govern.

     

    2. Effectuating the
Restructuring.

     

    To
implement the Term Sheet, the Parties have agreed, on the terms and conditions
set forth herein, that the Company shall use its commercially reasonable best
efforts to:

     

    
      	
              (a)  

            	
              solicit
      the requisite acceptances of the Plan (i) in accordance with section
      1125 of the Bankruptcy Code; and (ii) if solicited after the Chapter 11
      Cases have commenced, the Bankruptcy Court has approved the
      Disclosure Statement;

            

    

     

    
      	
              (b)  

            	
              move
      the Bankruptcy Court to confirm the Plan as expeditiously as practicable
      under the Bankruptcy Code, including under section 1129(b) thereof, the
      Federal Rules of Bankruptcy Procedure and the Bankruptcy Court’s local
      rules (the federal and local rules being the “Bankruptcy
      Rules”); and

            

    

     

    
      	
              (c)  

            	
              consummate
      the Plan;

            

    

     

    provided,
however,
that the form and substance of the Plan (including any Plan Supplement filed in
connection therewith) and the Disclosure Statement shall be consistent in all
material respects with the Term Sheet.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
 

    3. Commitments of the
Undersigned Holder Under this Agreement and the Term Sheet.

     

    (a) Voting by
Undersigned Holder.

     

    As long
as a Termination Event (as defined herein) has not occurred, or has occurred but
has been duly waived or cured in accordance with the terms hereof, the
Undersigned Holder agrees for itself that, so long as it is the legal owner,
beneficial owner and/or the investment advisor or manager of or with power
and/or authority to bind any Charter Claims and has been properly solicited
pursuant to sections 1125 and 1126 of the Bankruptcy Code, it shall timely vote
its Charter Claims (and not revoke or withdraw its vote) to accept the Plan,
subject to the proviso in Section 2 hereof.

     

    (b) Support
of Plan.

     

    As long
as a Termination Event has not occurred, or has occurred but has been duly
waived or cured in accordance with the terms hereof, the Undersigned Holder,
agrees for itself that, so long as it remains the legal owner, beneficial owner
and/or the investment advisor or manager of or with power and/or authority to
bind any Charter Claims, subject to the proviso in Section 2 hereof, by having
executed and become party to this Agreement, it will:

     

    
      	
              i.  

            	
              from
      and after the date hereof not directly or indirectly seek, solicit,
      support or vote in favor of any other plan, sale, proposal or offer of
      dissolution, winding up, liquidation, reorganization, merger or
      restructuring of the Company that could reasonably be expected to prevent,
      delay or impede the Restructuring of the Company as contemplated by the
      Term Sheet, the Plan or any other document filed with the Bankruptcy Court
      in furtherance of confirming the
Plan;

            

    

     

    
      	
              ii.  

            	
              agree
      to permit disclosure in the Disclosure Statement and any filings by the
      Company with the Securities and Exchange Commission of the contents of
      this Agreement; provided
      that the amount of the Charter Claims held by the Undersigned Holder shall
      be disclosed only to the Company and shall not be disclosed by the Company
      to any other person or entity;

            

    

     

    
      	
              iii.  

            	
              cooperate
      with the Company to secure consents, approvals or waivers required to be
      obtained from governmental authorities in connection with the Plan with
      respect to the transfer or change in control of Franchises (as defined in
      the Communications Act of 1934, as amended, 47 U.S.C. Sections 151 et seq.),
      licenses and permits; provided
      that the Company shall reimburse the Undersigned Holder for all reasonable
      out-of-pocket expenses incurred in connection with this Section 3(b)(iii);
      and

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    
      	
              iv.  

            	
              forbear
      from exercising, directly or indirectly, any right to accelerate or
      commence any action to collect indebtedness outstanding under any
      indenture to which the Company and/or any of its subsidiaries (each, a
      “Company
      Indenture”) is a party or to file or join in an involuntary
      petition for relief under the Bankruptcy Code against the Company based
      upon the failure to pay any such
indebtedness.

            

    

     

    As long
as a Termination Event has not occurred, or has occurred but has been duly
waived or cured in accordance with the terms hereof, the Company and the
Undersigned Holder, so long as it is the legal owner, beneficial owner and/or
the investment advisor or manager of or with power and/or authority to bind any
Charter Claim, further agree that they shall not:

     

    
      	
              i.  

            	
              object
      to or otherwise commence any proceeding opposing any of the terms of this
      Agreement, the Term Sheet, the Disclosure Statement or the Plan; or
      

            

    

     

    
      	
              ii.  

            	
              take
      any action that is inconsistent with, or that would delay approval of the
      Disclosure Statement or Confirmation of the
  Plan.

            

    

     

    (c) Transfer
of Claims, Interests and Securities.

     

    The
Undersigned Holder hereby agrees, for so long as this Agreement shall remain in
effect (such period, the “Restricted Period”),
not to sell, assign, transfer, hypothecate or otherwise dispose of, directly or
indirectly (each such transfer, a “Transfer”), all or
any of its Charter Claims (or any right related thereto and including any voting
rights associated with such Charter Claims), unless the transferee thereof
(a) agrees in an enforceable writing to assume and be bound by this Agreement
and the Term Sheet, and to assume the rights and obligations of the Undersigned
Holder under this Agreement and (b) promptly delivers such writing to the
Company (each such transferee becoming, upon the Transfer, an Undersigned Holder
hereunder).  The Company shall promptly acknowledge any such Transfer
in writing and provide a copy of that acknowledgement to the
transferor.  By its acknowledgement of the relevant Transfer, the
Company shall be deemed to have acknowledged that its obligations to the
Undersigned Holder hereunder shall be deemed to constitute obligations in favor
of the relevant transferee as an Undersigned Holder hereunder.  Any
sale, transfer or assignment of any Relevant Claim (as defined below) that does
not comply with the procedure set forth in the first sentence of this Subsection
3(c) shall be deemed void ab
initio.  To extent permitted by law, the Undersigned Holder
shall be permitted to Transfer Class A Common Stock of the Company so long as an
ownership change under section 382 of the Internal Revenue Code would not occur
as a result of the Transfer.  Notwithstanding any order establishing
certain notice periods with respect to monitoring transfers of Class A Common
Stock, upon request of the Undersigned Holder the Company shall promptly (to the
fullest extent permitted by any such order) evaluate and notify the Undersigned
Holder of whether it will consent to or waive certain restrictions with respect
to the proposed Transfer, which consent and/or waiver shall not be unreasonably
withheld.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    (d) Further
Acquisition of Charter Claims.

     

    This
Agreement shall in no way be construed to preclude the Undersigned Holder or any
of its respective subsidiaries from acquiring additional Charter Claims; provided
that any such additional Charter Claims acquired by the Undersigned Holder or
any subsidiary thereof shall automatically be deemed to be subject to the terms
of this Agreement.  Upon the request of the Company, the Undersigned
Holder shall, in writing and within five (5) business days, provide an accurate
and current list of all Charter Claims that it and any subsidiary holds at that
time, subject to any applicable confidentiality restrictions and applicable
law.

     

    (e) Representation
of the Undersigned Holder’s holdings.

     

    The
Undersigned Holder represents that, as of the date hereof:

     

    
      	
              i.  

            	
              CII
      is the legal owner, beneficial owner and/or the investment advisor or
      manager for the legal or beneficial owner of such Charter Claims set forth
      on its respective signature page (collectively, the “Relevant
      Claims”);

            

    

     

    
      	
              ii.  

            	
              there
      are no Charter Claims of which CII is the legal owner, beneficial owner
      and/or investment advisor or manager for such legal or beneficial owner
      that are not part of CII’s Relevant Claims unless CII does not possess the
      full power to vote and dispose of such claims;
  and

            

    

     

    
      	
              iii.  

            	
              CII
      has full power to vote, dispose of and compromise the aggregate principal
      amount of the Relevant Claims, subject to applicable securities
      laws.

            

    

     

    (f) Representation
of Capacity

     

    The
Undersigned Holder is executing this Agreement solely in his capacity as the
beneficial owner of claims against the Debtors and of equity interests in the
Debtors.  No covenant, agreement or understanding made by the
Undersigned Holder in this Agreement is made in his capacity as a chairperson or
director of CCI or shall prevent or in any way limit the Undersigned Holder from
taking any action or refraining from taking any action in his capacity as a
chairperson or director of CCI.

     

    4. The Company’s
Responsibilities.

     

    Bondholder
Support Agreements.

     

    (a) The
Company represents and warrants that it has entered into (or concurrently
herewith is entering into) binding restructuring, plan support or lock-up
agreements consistent in all material respects with the terms and provisions of
this Agreement and the Plan (“Bondholder Support
Agreements”) with:

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    
      	
              i.  

            	
              more
      than two thirds in amount of holders of claims arising out of, or related
      to, the 11% Senior Notes Indenture dated as of September 14, 2006 and
      the 11% Senior Notes of CCH I, LLC and CCH I Capital Corporation due 2015
      other than the Undersigned Holder or CII (the “CCH I Claims”,
      each holder of such a claim other than the Undersigned Holder or CII, a
      “CCH I
      Bondholder”), and

            

    

     

    
      	
              ii.  

            	
              more
      than two thirds in principal amount of holders of claims held by the
      Committee (as defined in the Term Sheet) arising out of or related to the
      10.25% Senior Notes of CCH II, LLC and CCH II Capital Corp. due 2010
      and the 10.25% Senior Notes of CCH II, LLC and CCH II Capital Corp. due
      2013 (the “CCH
      II Claims,” together with the CCH I Claims, the “Charter
      Claims”, and each holder of CCH II Claim a “CCH II
      Bondholder” and each CCH I Bondholder and each CCH II Bondholder, a
      “Charter
      Bondholder”),

            

    

     

    pursuant
to which, except as previously disclosed to the Undersigned Holder in writing,
each Charter Bondholder has agreed to be bound to a Bondholder Support Agreement
substantially similar to this Agreement, including without limitation, to be
bound by the substantially similar provisions set forth in Section 3(a), (b),
(c) (excluding the last sentence thereof), (d) and (e) above and Section 8
below.

     

    The
Company shall maintain in full force and effect and enforce each Bondholder
Support Agreement to the fullest extent possible and as long as this Agreement
remains in effect.

     

    The
Company shall give prompt written notice and description to the Undersigned
Holder of, in each case of which the Company has knowledge, (i) any termination
of a Bondholder Support Agreement, (ii) any breach by a Charter Bondholder of a
material provision of its Bondholder Support Agreement or the Term Sheet and of
any waiver or cure of such breach and (iv) if at any time Bondholder Support
Agreements are no longer in full force and effect with at least two thirds in
amount of holders of CCH I Claims or more than two thirds in principal amount of
holders of CCH II claims held by the Committee.

     

    Implementation
of Plan.

     

    (b) The
Company shall use its commercially reasonable best efforts to:

     

    
      	
              i.  

            	
              effectuate
      and consummate the Restructuring on the terms described in the Term Sheet
      and the Plan;

            

    

     

    
      	
              ii.  

            	
              commence
      the Chapter 11 Cases on or before April 1,
2009;

            

    

     

    
      	
              iii.  

            	
              file
      the Plan and Disclosure Statement, consistent with the terms of the Term
      Sheet and reasonably acceptable to the Undersigned Holder, and implement
      all steps necessary and desirable to obtain

            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                 

              	
                from
      the Bankruptcy Court an order confirming the Disclosure Statement (the
      “Disclosure
      Statement Order”), which Disclosure Statement Order shall be
      entered by the Bankruptcy Court no later than on or before the 50th day
      following the Petition Date;

              

      

       

    

    
      	
              iv.  

            	
              implement
      all steps necessary and desirable to obtain from the Bankruptcy Court an
      order confirming the Plan, which order shall be in form and substance
      consistent with the Term
      Sheet and reasonably acceptable to the Undersigned Holder (the
      “Confirmation Order”),
      which Confirmation Order shall be entered by the Bankruptcy Court no later
      than on or before the 130th day following the Petition Date;
  and

            

    

     

    
      	
              v.  

            	
              cause
      the Effective Date of the Plan to occur no later than on or before the
      150th day following the Petition Date but notwithstanding the following
      proviso in no event shall the Confirmation Date occur in December; provided,
      that if consents, approvals or waivers required to be obtained from
      governmental authorities in connection with the Plan with respect to
      Franchises (as defined in the Communications Act of 1934, as amended, 47
      U.S.C. Sections 151 et seq.),
      licenses and permits covering areas serving at least 80% of the basic
      subscribers have not been obtained on or before the 150th day following
      the Petition Date, then cause the Effective Date of the Plan to occur no
      later than on or before December 15,
2009.

            

    

     

    The Company shall take no actions
inconsistent with this Agreement, the Term Sheet and the Plan or the expeditious
Confirmation and Consummation of the Plan.

     

    5. Mutual
Representations, Warranties, and Covenants.

     

    Each
Party makes the following representations, warranties and covenants to each of
the other Parties, each of which are continuing representations, warranties and
covenants:

     

    (a) Enforceability.

     

    Subject
to the provisions of sections 1125 and 1126 of the Bankruptcy Code, this
Agreement is a legal, valid and binding obligation of the Party, enforceable
against it in accordance with its terms, except as enforcement may be limited by
applicable laws relating to or limiting creditors’ rights generally or by
equitable principles relating to enforceability.

     

    (b) No
Consent or Approval.

     

    Except as
expressly provided in this Agreement, no consent or approval is required by any
other entity in order for it to carry out the provisions of this
Agreement.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    (c) Power and
Authority.

     

    It has
all requisite power and authority to enter into this Agreement and to carry out
the transactions contemplated by, and perform its respective obligations under,
this Agreement, the Term Sheet and the Plan.

     

    (d) Authorization.

     

    The
execution and delivery of this Agreement and the performance of its obligations
hereunder have been duly authorized by all necessary action on its
part.

     

    (e) No
Conflicts.

     

    The
execution, delivery and performance of this Agreement does not and shall
not:  (a) violate any provision of law, rule or regulations
applicable to it or any of its subsidiaries; (b) violate its certificate of
incorporation, bylaws or other organizational documents or those of any of its
subsidiaries; or (c) conflict with, result in a breach of or constitute (with
due notice or lapse of time or both) a default under any material contractual
obligation to which it or any of its subsidiaries is a party.

     

    6. No
Waiver of Participation and Preservation of Rights.

     

    This
Agreement and the Plan are part of a proposed settlement of disputes among the
Parties.  Without limiting the foregoing sentence in any way, if the
transactions contemplated by this Agreement or otherwise set forth in the Plan
are not consummated as provided herein, if a Termination Event occurs, or if
this Agreement is otherwise terminated for any reason, the Parties each fully
reserve any and all of their respective rights, remedies, claims and
interests.

     

    7. Acknowledgement.

     

    This
Agreement and the Term Sheet and the transactions contemplated herein and
therein are the product of negotiations between the Parties and their respective
representatives.  This Agreement is not and shall not be deemed to be
a solicitation of votes for the acceptance of a plan of reorganization for the
purposes of sections 1125 and 1126 of the Bankruptcy Code or
otherwise.  The Company will not solicit acceptances of the Plan from
the Undersigned Holder in any manner inconsistent with the Bankruptcy Code or
applicable nonbankruptcy law.

     

    8. Termination.

     

    (a) Termination
Events.

     

    The term
“Termination
Event,” wherever used in this Agreement, means any of the following
events (whatever the reason for such Termination Event and whether it is
voluntary or involuntary):

     

    
      	
              i.  

            	
              the
      commitments set forth in that certain commitment letter, dated February
      11, 2009 (the “Commitment
      Letter”), expire or terminate

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                 

              	
                pursuant
      to Section 9 of the Commitment Letter or are otherwise no longer in
      effect;

              

      

       

    

    
      	
              ii.  

            	
              the
      Company’s board of directors is advised in writing by its outside counsel
      that continued pursuit of the Plan is inconsistent with its fiduciary
      duties because, and the board of directors determines in good faith that,
      (A) a proposal or offer from a third party is reasonably likely to be more
      favorable to the Company than is proposed under the Term Sheet, taking
      into account, among other factors, the identity of the third party, the
      likelihood that any such proposal or offer will be negotiated to finality
      within a reasonable time, and the potential loss to the company if the
      proposal or offer were not accepted and consummated, or (B) the Plan is no
      longer confirmable or feasible;

            

    

     

    
      	
              iii.  

            	
              the
      Plan or any subsequent plan filed by the Debtors with the Bankruptcy Court
      (or a plan supported or endorsed by the Company) is not in a form and
      substance that is reasonably consistent in all material respects with the
      Term Sheet;

            

    

     

    
      	
              iv.  

            	
              the
      Debtors shall not have filed for chapter 11 relief with the Bankruptcy
      Court on or before April 1, 2009;

            

    

     

    
      	
              v.  

            	
              a
      Disclosure Statement Order reasonably acceptable to the Company and the
      Undersigned Holder is not entered by the Bankruptcy Court on or before the
      50th day following the Petition
Date;

            

    

     

    
      	
              vi.  

            	
              a
      Confirmation Order reasonably acceptable to the Company and the
      Undersigned Holder is not entered by the Bankruptcy Court on or before the
      130th day following the Petition
Date;

            

    

     

    
      	
              vii.  

            	
              either
      (a) the Effective Date shall not have occurred on or before the 150th
      day following the Petition Date or (b) if consents, approvals or
      waivers required to be obtained from governmental authorities in
      connection with the Plan with respect to Franchises, licenses and permits
      covering areas serving at least 80% of the basic subscribers have not been
      obtained on or before the 150th day following the Petition Date, and all
      other conditions precedent to the Effective Date shall have been satisfied
      before the 150th day following the Petition Date or waived by the
      Undersigned Holder (other than those conditions that by their nature are
      to be satisfied on the Effective Date), then the Effective Date shall not
      have occurred on or before December 15,
2009;

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

    
      	
              viii.  

            	
              any
      of the Chapter 11 Cases of the Company is converted to cases under chapter
      7 of the Bankruptcy Code and such event causes the Plan not to be
      confirmable;

            

    

     

    
      	
              ix.  

            	
              the
      Bankruptcy Court shall enter an order in any of the Chapter 11 Cases
      appointing (i) a trustee under chapter 7 or chapter 11 of the Bankruptcy
      Code, (ii) a responsible officer or (iii) an examiner, in each case
      with enlarged powers relating to the operation of the business (powers
      beyond those set forth in subclauses (3) and (4) of section 1106(a)) under
      section 1106(b) of the Bankruptcy
Code;

            

    

     

    
      	
              x.  

            	
              any
      of the Chapter 11 Cases of the Company is dismissed and such event causes
      the Plan not to be confirmable;

            

    

     

    
      	
              xi.  

            	
              the
      Confirmation Order is reversed on appeal or
  vacated;

            

    

     

    
      	
              xii.  

            	
              any
      Party has breached any material provision of this Agreement or the Term
      Sheet and any such breach has not been duly waived or cured in accordance
      with the terms hereof after a period of five (5)
  days;

            

    

     

    
      	
              xiii.  

            	
              the
      Company shall withdraw the Plan or publicly announce its intention not to
      support the Plan;

            

    

     

    
      	
              xiv.  

            	
              the
      Effective Date shall have occurred;

            

    

     

    
      	
              xv.  

            	
              any
      Bondholder Support Agreement has terminated, any Charter Bondholder has
      breached any material provision of its Bondholder Support Agreement or the
      Term Sheet and any such breach has not been duly waived or cured in
      accordance with the terms of the Bondholder Support Agreement after a
      period of five (5) days, or if at any time Bondholder Support Agreements
      are no longer in full force and effect with at least two thirds in amount
      of holders of CCH I Claims or more than two thirds in principal amount of
      holders of CCH II claims held by the Committee;
  or

            

    

     

    
      	
              xvi.  

            	
              the
      Company shall not have reached agreement with senior management on a
      compensation program reasonably acceptable to the Company and the
      Requisite Holders by March 12,
2009.

            

    

     

    The
foregoing Termination Events are intended solely for the benefit of the Company
and the Undersigned Holder; provided
that no Party may seek to terminate this Agreement and the Term Sheet based upon
a material breach or a failure of a condition (if any) in this Agreement arising
out of its own actions or omissions; provided,
further,
that such actions or omissions may entitle the other Parties to the remedies
described in Section 9(e) hereof.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    (b) Termination
Event Procedures.

     

    
      	
              i.  

            	
              Upon
      the occurrence of a Termination Event contemplated by clause (ii) of
      Section 8(a) hereof or clause (xii) of Section 8(a) hereof due to a
      material breach of this Agreement by the Undersigned Holder, in each case
      subject to the last sentence of Section 8(a) hereof, the Company shall
      have the right to terminate this Agreement and the Term Sheet by giving
      written notice thereof to the other
Parties.

            

    

     

    
      	
              ii.  

            	
              Upon
      the occurrence of a Termination Event contemplated by clause (viii), (xi),
      (xiv) or (xvi) of Section 8(a) hereof, in each case subject to the last
      sentence of Section 8(a) hereof, this Agreement and the Term Sheet shall
      automatically terminate without further
action.

            

    

     

    
      	
              iii.  

            	
              Except
      as set forth in Section 8(b)(i) and 8(b)(ii) hereof, upon the occurrence
      of a Termination Event (including, for the avoidance of doubt, a
      Termination Event contemplated by clause (i) or (ii) of Section 8(a)
      hereof), subject to the last sentence of Section 8(a) hereof, the
      Undersigned Holder shall have the right to terminate this Agreement and
      the Term Sheet by giving written notice to the other Parties unless no
      later than five (5) business days after the occurrence of any such
      Termination Event, the occurrence of such Termination Event is waived in
      writing by the Undersigned Holder.  The Parties hereby waive any
      requirement under section 362 of the Bankruptcy Code to lift the
      automatic stay thereunder (the “Automatic
      Stay”) in connection with giving any such notice (and agree not to
      object to any non-breaching Party seeking to lift the Automatic Stay in
      connection with giving any such notice, if necessary).  Any such
      termination (or partial termination) of the Agreement shall not restrict
      the Parties’ rights and remedies for any breach of the Agreement by any
      Party, including, but not limited to, the reservation of rights set forth
      in Section 6 hereof.

            

    

     

    (c) Consent
to Termination.

     

    In
addition to the Termination Events set forth in Section 8(a) hereof, this
Agreement shall be terminable immediately upon written notice to all of the
Parties of the written agreement(s) of the Company and the Requisite Holders to
terminate all of their restructuring agreements and the written agreement of the
Company and the Undersigned Holder to terminate their restructuring
agreement.

     

    9. Miscellaneous
Terms.

     

    (a) Binding
Obligation; Assignment.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    Binding
Obligation.  Subject to the provisions of sections 1125 and
1126 of the Bankruptcy Code, this Agreement is a legally valid and binding
obligation of the Parties, enforceable in accordance with its terms, and shall
inure to the benefit of the Parties and their
representatives.  Nothing in this Agreement, express or implied, shall
give to any entity, other than the Parties and their respective members,
officers, directors, agents, financial advisors, attorneys, employees, partners,
Affiliates, successors, assigns, heirs, executors, administrators and
representatives, any benefit or any legal or equitable right, remedy or claim
under this Agreement.

     

    Assignment.  No
rights or obligations of any Party under this Agreement may be assigned or
transferred to any other entity except as provided in Section 3(c)
hereof.

     

    (b) Further
Assurances.

     

    The
Parties agree to execute and deliver such other instruments and perform such
acts, in addition to the matters herein specified, as may be reasonably
appropriate or necessary, from time to time, to effectuate the agreements and
understandings of the Parties, whether the same occurs before or after the date
of this Agreement.

     

    (c) Headings.

     

    The
headings of all sections of this Agreement are inserted solely for the
convenience of reference and are not a part of and are not intended to govern,
limit or aid in the construction or interpretation of any term or provision
hereof.

     

    (d) Governing
Law.

     

    THIS
AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH
STATE, WITHOUT GIVING EFFECT TO THE CHOICE OF LAWS PRINCIPLES
THEREOF.  By its execution and delivery of this Agreement, each of the
Parties hereto hereby irrevocably and unconditionally agrees for itself that any
legal action, suit or proceeding with respect to any matter under or arising out
of or in connection with this Agreement or for recognition or enforcement of any
judgment rendered in any such action, suit or proceeding, shall be brought
exclusively in either a state or federal court of competent jurisdiction in the
State of New York and County of New York.  By execution and delivery
of this Agreement, each of the Parties hereto hereby irrevocably accepts and
submits itself to the exclusive jurisdiction of each such court, generally and
unconditionally, with respect to any such action, suit or
proceeding.  Notwithstanding the foregoing consent to jurisdiction in
either a state or federal court of competent jurisdiction in the State of New
York and County of New York, upon the commencement of the Chapter 11 Cases, each
of the Parties hereto hereby agrees that, if the Petitions have been filed and
any of the Chapter 11 Cases are pending, the Bankruptcy Court shall have
exclusive jurisdiction of all matters arising out of or in connection with this
Agreement.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

     

    (e) Specific
Performance

     

    The
Parties hereby acknowledge that the rights of the Parties under this Agreement
are unique and that remedies at law for breach or threatened breach of any
provision of this Agreement would be inadequate and, in recognition of this
fact, agree that, in the event of a breach or threatened breach of the
provisions of this Agreement, in addition to any remedies at law, the Parties
(with the consent of the Undersigned Holder, in the case of the Undersigned
Holder) shall, without posting any bond, be entitled to obtain equitable relief
in the form of specific performance, a temporary restraining order, a temporary
or permanent injunction or any other equitable remedy which may then be
available and the Parties hereby waive any objection to the imposition of such
relief.

     

    (f) Complete
Agreement, Interpretation and Modification.

     

    
      	
              i.  

            	
              Complete
      Agreement.  This Agreement, the Term Sheet and the other
      agreements, exhibits and other documents referenced herein and therein
      constitute the complete agreement between the Parties with respect to the
      subject matter hereof and supersede all prior agreements, oral or written,
      between or among the Parties with respect
  thereto.

            

    

     

    
      	
              ii.  

            	
              Interpretation.  This
      Agreement is the product of negotiation by and among the
      Parties.  Any Party enforcing or interpreting this Agreement
      shall interpret it in a neutral manner.  There shall be no
      presumption concerning whether to interpret this Agreement for or against
      any Party by reason of that Party having drafted this Agreement, or any
      portion thereof, or caused it or any portion thereof to be
      drafted.

            

    

     

    
      	
              iii.  

            	
              Modification of this Agreement
      and the Term Sheet.  Except as set forth in Section 8(b)
      hereof, as it applies to Termination Events, this Agreement and the Term
      Sheet may only be modified, altered, amended or supplemented by an
      agreement in writing signed by the Company and the Undersigned
      Holder.

            

    

     

    (g) Execution
of this Agreement.

     

    This
Agreement may be executed and delivered (by facsimile or otherwise) in any
number of counterparts, each of which, when executed and delivered, shall be
deemed an original, and all of which together shall constitute the same
agreement.  Except as expressly provided in this Agreement, each
individual executing this Agreement on behalf of a Party has been duly
authorized and empowered to execute and deliver this Agreement on behalf of said
Party.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

    (h) Settlement
Discussions.

     

    This
Agreement and the Restructuring are part of a proposed settlement of a dispute
among the Parties.  Nothing herein shall be deemed an admission of any
kind.  Pursuant to Federal Rule of Evidence 408 and any applicable
state rules of evidence, this Agreement and all negotiations relating thereto
shall not be admissible into evidence in any proceeding other than a proceeding
to enforce the terms of this Agreement.

     

    (i) Consideration.

     

    The
Company and the Undersigned Holder hereby acknowledge that no consideration,
other than that specifically described herein and in the Term Sheet, shall be
due or paid to the Undersigned Holder for its agreement to vote to accept the
Plan in accordance with the terms and conditions of this Agreement, other than
the Company’s representations, warranties and agreement to use its commercially
reasonable best efforts to obtain approval of the Disclosure Statement and to
seek to confirm and consummate the Plan in accordance with the terms and
conditions of the Term Sheet.

     

    (j) Notices.

     

    All
notices hereunder shall be deemed given if in writing and delivered, if sent by
facsimile, courier or by registered or certified mail (return receipt requested)
to the following addresses and facsimile numbers (or at such other addresses or
facsimile numbers as shall be specified by like notice):

     

    
      	
              i.  

            	
              If
      to the Company, to:

            

    

     

    Charter
Communications, Inc.

    12405
Powerscourt Drive

    St.
Louis, Missouri  63131 

      
      

    

    Attention:  General
Counsel

    

    with
copies (which shall not constitute notice) to:

    

    Kirkland
& Ellis LLP

    Citigroup
Center

    153 East
53rd Street

    New York,
New York  10022

    Attention:  Richard
M. Cieri and Paul Basta;

     

     

    
      
        
        

      

      
        15

        
          

        

      

       

    

     

    

    
      	
              ii.  

            	
              If
      to the Undersigned Holder, to:

            

    

     

    Charter
Investments, Inc.

    505 Fifth
Avenue S

    Suite
900

    Seattle,
WA 98104

    Attention:
William McGrath, Esq.

    Facsimile:
(206) 342-2347

    email:
billmc@vulcan.com;

    

    with
copies (which shall not constitute notice) to:

    

    Skadden,
Arps, Slate, Meagher & Flom LLP

    300 South
Grand Avenue

    Los
Angeles, CA 90071

    Attention:
Nicholas P. Saggese, Esq.

    Facsimile:
(213) 687-5550

    email:
nick.saggese@skadden.com

    

    - and –

    

    Skadden,
Arps, Slate, Meagher & Flom LLP

    4 Times
Square

    New York,
NY  10036

    Attention:
Jay M. Goffman, Esq.

    Facsimile:
(917) 777-2120

    email:
jay.goffman@skadden.com

    

    Any
notice given by delivery, mail or courier shall be effective when
received.  Any notice given by facsimile shall be effective upon oral
or machine confirmation of transmission.

     

    (k) No
Obligations following Effective Date.

     

    Upon the
occurrence of a Termination Event pursuant to Section 8(a)(xiv) hereof and
termination of this Agreement in accordance with Section 8(b)(ii) hereof, this
Agreement shall forthwith become void, there shall be no liability under this
Agreement on the part of any Party and the Undersigned Holder shall have the
sole and exclusive power to vote, or to direct the voting of, and to dispose, or
to direct the disposition of, any securities received by the Undersigned Holder
pursuant to the Plan.

     

    (l) Savings
Clause.

     

    Prior to
commencement of the Chapter 11 Cases, if and to the extent the Company’s
execution, agreement, performance, undertaking, or similar arrangement herein or
in the Term Sheet (each, a “Undertaking”) would
cause a default or event of default under the CCO Credit Facility or the CCOH
Credit Facility (and for the avoidance of doubt, in each case, including all
notes issued thereunder), such Undertaking shall be deemed unenforceable solely
to 

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

       

      the
extent necessary to avoid a default or event of default and such action shall be
void ab initio to the extent necessary to avoid a default or event of
default.  To the extent that any Undertaking is unenforceable or void
in accordance with the foregoing, the Parties shall use commercially reasonable
best efforts to restore equivalent consideration to any affected
Party.

    

     

    (m) Time of
the Essence.

     

    The
Parties agree that time is of the essence with respect to each and every term
and provision of this Agreement.

     

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

     

     

    IN
WITNESS WHEREOF, the Parties have entered into this Agreement on the day and
year first above written.

     

    Dated:    February
11, 2009

    

     

                                                                CHARTER
COMMUNICATIONS, INC

     

     

                                                                By:
____________________________                                                                

                                                                Name: __________________________                                                                          

                                                                Its: ____________________________

     

     

     

     

                                                            ____________________________

                                                            PAUL G. ALLEN

     

                                                                                                         

     

     

                                                                CHARTER INVESTMENT,
INC.

     

     

                                                                By:  ____________________________                                                              

                                                                Name:  __________________________                                                                         

                                                                Its:  ____________________________                                                              

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
1

     

    TERM
SHEETldhls8021308ex4-1.htm

    
      

      

    

    
      EXHIBIT
4.1

       

      LD
HOLDINGS, INC.

       

      2009
EQUITY INCENTIVE PLAN

       

      ARTICLE
1. ESTABLISHMENT AND PURPOSE

       

      1.1
Establishment of the Plan. LD Holdings, Inc., a Nevada corporation (the
"Company"), hereby establishes an incentive compensation plan (the "Plan"), as
set forth in this document.

       

      1.2
Purpose of the Plan. The purpose of the Plan is to promote the success and
enhance the value of the Company by linking the personal interests of
Participants to those of the Company's shareholders, and by providing
Participants with an incentive for outstanding performance. The Plan is further
intended to attract and retain the services of Participants upon whose judgment,
interest, and special efforts the successful operation of LD Holdings, Inc. and
its subsidiaries is dependent.

       

      1.3
Effective Date of the Plan. The Plan shall become effective on February 10,
2009.

       

      ARTICLE
2. DEFINITIONS

       

      Whenever
used in the Plan, the following terms shall have the meanings set forth below
and, when the meaning is intended, the initial letter of the word is
capitalized:

       

      (a)
"Award" means, individually or collectively, a grant under this Plan of Stock,
Nonqualified Stock Options, Incentive Stock Options, Restricted Stock, or
Performance Shares.

       

      (b)
"Award Agreement" means an agreement which may be entered into by each
Participant and the Company, setting forth the terms and provisions applicable
to Awards granted to Participants under this Plan.

       

      (c)
"Board" or "Board of Directors" means the Company's Board of
Directors.

       

      (d)
"Cause" shall mean willful and gross misconduct on the part of an Eligible
Person that is materially and demonstrably detrimental to the Company or any
Subsidiary as determined by the Committee in its sole discretion.

       

      (e)
"Change in Control" shall be deemed to have occurred if (i) any "person" (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than
(A) a person who on February 10, 2009 was the beneficial owner of more than 25%
of the outstanding Shares, (B) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or (C) a corporation owned
directly or indirectly by the shareholders of the Company in substantially the
same proportions as their ownership of stock of the Company, is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or
more of the total voting power represented by the Company's then outstanding
voting securities, or (ii) during any period of two

       

      (2)
consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Company and any new Director whose election by the
Board of Directors or nomination for election by the Company's shareholders was
approved by a vote of at least two-thirds (2/3) of the Directors then still in
office who either were Directors at the beginning of the period or whose
election or nomination for election was previously so approved, cease for any
reason to constitute a majority thereof, or (iii) the shareholders of the
Company approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least fifty-five percent
(55%) of the total voting power represented by the voting securities of the
Company or such surviving entity outstanding immediately after such merger or
consolidation, or the shareholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all the Company's assets.

       

      (f)
"Code" means the Internal Revenue Code of 1986, as amended from time to
time.

       

      (g)
"Committee" means the committee or committees, as specified in Article 3,
appointed by the Board to administer the Plan with respect to grants of
Awards.

       

      (h)
"Consultant" means a natural person under contract with the Company to provide
bona fide services to the Company which are not in connection with the offer or
sale of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for the Company's
securities.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (i)
"Director" means any individual who is a member of the LD Holdings, Inc. Board
of Directors.

       

      (j)
"Disability" shall mean the Participant's inability to perform the Participant's
normal Employment functions due to any medically determinable physical or mental
disability, which can last or has lasted 12 months or is expected to result in
death.

       

      (k)
"Eligible Person" means an Employee, Director or Consultant.

       

      (l)
"Employee" means any officer or employee of the Company or of one of the
Company's Subsidiaries. Directors who are not otherwise employed by the Company
shall not be considered Employees under this Plan.

       

      (m)
"Employment," with reference to an Employee, means the condition of being an
officer or employee of the Company or one of its Subsidiaries. "Employment,"
with reference to a Consultant, means the condition of being a Consultant.
"Employment," with reference to a Director, means the condition of being a
Director. The change in status of an Eligible Person among the categories of
Employee, Director and Consultant shall not be deemed a termination of
Employment.

       

      (n)
"Exchange Act" means the Securities Exchange Act of 1934, as amended from time
to time, or any successor Act thereto.

       

      (o)
"Exercise Price" means the price at which a Share may be purchased by a
Participant pursuant to an Option, as determined by the Committee.

       

      (p) "Fair
Market Value" shall mean (i) at such time as there are closing prices quoted for
the Shares, the closing price of Shares on the relevant date, or (if there were
no sales on such date) the next preceding trading date, all as reported on the
principal market for the Shares, or (ii) at such time as there is a public
market quoted without closing prices, the mean of the closing high bid and low
asked on the relevant date, as reported on the principal market for the Shares,
or

       

      (iii) at
such time as there is no public market for the Shares, the value determined from
time to time by the Board of Directors.

       

      (q)
"Incentive Stock Option" or "ISO" means an option to purchase Shares from LD
Holdings, Inc., granted under this Plan, which is designated as an Incentive
Stock Option and is intended to meet the requirements of Section 422 of the
Code.

       

      (r)
"Insider" shall mean an Eligible Person who is, on the relevant date, an
officer, director, or ten percent (10%) beneficial owner of the Company, as
those terms are defined under Section 16 of the Exchange Act.

       

      (s)
"Nonqualified Stock Option" or "NQSO" means the option to purchase Shares from
LD Holdings, Inc., granted under this Plan, which is not intended to be an
Incentive Stock Option.

       

      (t)
"Option" or "Stock Option" shall mean an Incentive Stock Option or a
Nonqualified Stock Option.

       

      (u)
"Participant" means a person who holds an outstanding Award granted under the
Plan.

       

      (v)
"Performance Share" shall mean an Award granted to an Eligible Person pursuant
to Article 8 herein.

       

      (w)
"Plan" means this 2009 Equity Incentive Plan.

       

      (x)
"Restricted Stock" means an Award of Stock granted to an Eligible Person
pursuant to Article 7 herein.

       

      (y)
"Restriction Period" means the period during which Shares of Restricted Stock
are subject to restrictions or conditions under Article 7.

       

      (z)
"Shares" or "Stock" means the shares of common stock of the
Company.

       

      (aa)
"Subsidiary" shall mean any corporation in which the Company owns directly, or
indirectly through subsidiaries, more than fifty percent (50%) of the total
combined voting power of all classes of Stock, or any other entity (including,
but not limited to, partnerships and joint ventures) in which the Company owns
more than fifty percent (50%) of the combined equity thereof.

       

      ARTICLE
3. ADMINISTRATION

       

      3.1 The
Committee. The Plan and all Awards hereunder shall be administered by one or
more Committees of the Board as may be appointed by the Board for this purpose.
The Board may appoint a Committee specifically responsible for Awards to
Insiders (the "Disinterested Committee") where each Director on such
Disinterested Committee is a "Non-Employee Director" (or any successor
designation for determining who may administer plans, transactions or awards
exempt under Section 16(b) of the Exchange Act), as that term is used in Rule
16b-3 under the Exchange Act, as that rule may be modified from time to time. If
no specific Committee is appointed by the Board, then the Board in its entirety
shall be the Committee. Any Committee may be replaced by the Board at any
time.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      3.2
Authority of the Committee. The Committee shall have full power, except as
limited by law and subject to the provisions herein, to select the recipients of
Awards; to determine the size and types of Awards; to determine the terms and
conditions of such Awards in a manner consistent with the Plan; to construe and
interpret the Plan and any agreement or instrument entered into under the Plan;
to establish, amend, or waive rules and regulations for the Plan's
administration; and (subject to the provisions of Article 10 herein) to amend
the terms and conditions of any outstanding Award to the extent such terms and
conditions are within the discretion of the Committee as provided in the Plan.
Further, the Committee shall make all other determinations which may be
necessary or advisable for the administration of the Plan.

       

      No Award
may be made under the Plan after December 31, 2017.

       

      All
determinations and decisions made by the Committee pursuant to the provisions of
the Plan and all related orders or resolutions of the Board shall be final,
conclusive, and binding on all persons, including the Company, its stockholders,
Eligible Persons, Participants, and their estates and
beneficiaries.

       

      Subject
to the terms of this Plan, the Committee is authorized, and shall not be limited
in its discretion, to use any of the Performance Criteria specified herein in
its determination of Awards under this Plan.

       

      ARTICLE
4. SHARES SUBJECT TO THE PLAN

       

      4.1
Number of Shares. Subject to adjustment as provided in

       

      Section
4.3 herein, the number of Shares available for grant under the Plan shall not
exceed five million (5,000,000) Shares. The Shares granted under this Plan may
be either authorized but unissued or reacquired Shares.

       

      Without
limiting the discretion of the Committee under this section, unless otherwise
provided by the Committee, the following rules will apply for purposes of the
determination of the number of Shares available for grant under the Plan or
compliance with the foregoing limits:

       

      (a) The
grant of Stock, a Stock Option or a Restricted Stock Award shall reduce the
Shares available for grant under the Plan by the number of Shares subject to
such Award. However, to the extent the Participant uses previously owned Shares
to pay the Exercise Price or any taxes, or Shares are withheld to pay taxes,
these Shares shall be available for regrant under the Plan.

       

      (b) With
respect to Performance Shares, the number of Performance Shares granted under
the Plan shall be deducted from the number of Shares available for grant under
the Plan. The number of Performance Shares which cannot be, or are not,
converted into Shares and distributed to the Participant (after any applicable
tax withholding) following the end of the Performance Period shall increase the
number of Shares available for regrant under the Plan by an equal
amount.

       

      4.2
Lapsed Awards. If any Award granted under this Plan is canceled, terminates,
expires, or lapses for any reason, Shares subject to such Award shall be again
available for the grant of an Award under the Plan.

       

      4.3
Adjustments in Authorized Plan Shares. In the event of any merger,
reorganization, consolidation, recapitalization, separation, liquidation, Stock
dividend, split-up, Share combination, or other change in the corporate
structure of the Company affecting the Shares, an adjustment shall be made in
the number and class of Shares which may be delivered under the Plan, and in the
number and class of and/or price of Shares subject to outstanding Awards granted
under the Plan, and/or the number of outstanding Options, Shares of Restricted
Stock, and Performance Shares constituting outstanding Awards, as may be
determined to be appropriate and equitable by the Committee, in its sole
discretion, to prevent dilution or enlargement of rights.

       

      ARTICLE
5. STOCK GRANT

       

      5.1 Grant
of Stock. Subject to the terms and provisions of the Plan, the Board of
Directors, at any time and from time to time, may grant Shares of Stock to
Eligible Persons in such amounts and upon such terms and conditions as the Board
of Directors shall determine.

       

      ARTICLE
6. STOCK OPTIONS

       

      6.1 Grant
of Options. Subject to the terms and provisions of the Plan, Options may be
granted to Eligible Persons at any time and from time to time, and under such
terms and conditions, as shall be determined by the Committee. The Committee
shall have discretion in determining the number of Shares subject to Options
granted to each Eligible Person. The Committee may grant ISOs, NQSOs, or a
combination thereof. ISOs, however, may be granted only to Employees and only if
this Plan is approved by the shareholders of the Company within one year after
it is adopted by the Board of Directors.

       

      6.2 Form
of Issuance. Each Option grant may be issued in the form of an Award Agreement
and/or may be recorded on the books and records of the Company for the account
of the Participant. If an Option is not issued in the form of an Award
Agreement, then the Option shall be deemed granted as determined by the
Committee. The terms and conditions of an Option shall be set forth in the Award
Agreement, in the notice of the issuance of the grant, or in such other
documents as the Committee shall determine. Such terms and conditions shall
include the Exercise Price, the duration of the Option, the number of Shares to
which an Option pertains (unless otherwise provided by the Committee, each
Option may be exercised to purchase one Share), and such other provisions as the
Committee shall determine, including, but not limited to whether the Option is
intended to be an ISO or a NQSO.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      6.3
Exercise Price.

       

      (a)
Unless a greater Exercise Price is determined by the Committee, the Exercise
Price for each ISO awarded under this Plan shall be equal to one hundred percent
(100%) of the Fair Market Value of a Share on the date the Option is granted.
If, however, the Eligible Person owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or of its parent or subsidiary corporations, then the Exercise Price of an ISO
shall be not less than one hundred ten percent (110%) of the Fair Market Value
of a Share on the date the Option is granted.

       

      (b) The
Exercise Price of a NQSO shall be determined by the Committee in its sole
discretion.

       

      6.4
Duration of Options. Each Option shall expire at such time as the Committee
shall determine at the time of grant (which duration may be extended by the
Committee); provided, however, that no Option shall be exercisable later than
the tenth (10th) anniversary date of its grant. If, however, the Eligible Person
owns stock possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of its parent or subsidiary
corporations, then no Option shall be exercisable later than the fifth (5th)
anniversary date of its grant.

       

      6.5
Vesting of Options. Options shall vest at such times and under such terms and
conditions as determined by the Committee; provided, however, unless a different
vesting period is provided by the Committee at or before the grant of an Option,
the Options will vest on the first anniversary of the grant.

       

      6.6
Exercise of Options. Options granted under the Plan shall be exercisable at such
times and be subject to such restrictions and conditions as the Committee shall
in each instance approve, which need not be the same for each grant or for each
Participant.

       

      Options
shall be exercised by delivery of a written notice (including e-mail and
telecopies) to the Secretary of the Company (or, if so provided by the Company,
to its designated agent), which notice shall be irrevocable, setting forth the
exact number of Shares with respect to which the Option is being exercised and
including with such notice payment of the Exercise Price. When Options have been
transferred, the Company or its designated agent may require appropriate
documentation that the person or persons exercising the Option, if other than
the Participant, has the right to exercise the Option. No Option may be
exercised with respect to a fraction of a Share.

       

      6.7
Payment. The Exercise Price shall be paid in full at the time of exercise. No
Shares shall be issued or transferred until full payment has been received
therefor.

       

      Payment
may be made:

       

      (a) in
cash, or

       

      (b)
unless otherwise provided by the Committee at any time, and subject to such
additional terms and conditions and/or modifications as the Committee or the
Company may impose from time to time, and further subject to suspension or
termination of this provision by the Committee or Company at any time, by
delivery of Shares of Stock owned by the Participant in partial (if in partial
payment, then together with cash) or full payment (if a fractional Share remains
after payment of the Exercise Price in full by previously owned Shares, then the
fractional Share shall be withheld for taxes); provided, however, as a condition
to paying any part of the Exercise Price in Stock, at the time of exercise of
the Option, the Participant must establish to the satisfaction of the Company
that the Stock tendered to the Company has been held by the Participant for a
minimum of six (6) months preceding the tender; or

       

      If
payment is made by the delivery of Shares of Stock, the value of the Shares
delivered shall be equal to the Fair Market Value of the Shares on the day
preceding the date of exercise of the Option.

       

      6.8
Termination of Employment. Unless otherwise provided by the Committee, the
following limitations on exercise of Options shall apply upon termination of
Employment:

       

      (a)
Termination by Death or Disability. In the event the Employment of a Participant
shall terminate by reason of death or Disability, all outstanding Options
granted to that Participant shall immediately vest as of the date of termination
of Employment and may be exercised, if at all, no more than three (3) years from
the date of the termination of Employment, unless the Options, by their terms,
expire earlier.

       

      (b)
Termination for Cause. If the Employment of a Participant shall be terminated by
the Company for Cause, all outstanding Options held by the Participant shall
immediately be forfeited to the Company and no additional exercise period shall
be allowed, regardless of the vested status of the Options.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (c)
Retirement or Other Termination of Employment. If the Employment of a
Participant shall terminate for any reason other than the reasons set forth in
(a) or (b) above, all outstanding Options which are vested as of the effective
date of termination of Employment may be exercised, if at all, no more than
thirty (30) days from the date of termination of Employment, unless the Options,
by their terms, expire earlier. In the event of the death of the Participant
after termination of Employment, this paragraph (c) shall still apply and not
paragraph (a), above.

       

      (d)
Options not Vested at Termination. Except as provided in paragraph (a) above,
all Options held by the Participant which are not vested on or before the
effective date of termination of Employment shall immediately be forfeited to
the Company (and shall once again become available for grant under the
Plan).

       

      (e)
Notwithstanding the foregoing, the Committee may, in its sole discretion,
establish different terms and conditions pertaining to the effect of termination
of Employment, but no such modification shall shorten the terms of Options
issued prior to such modification.

       

      6.9
Restrictions on Exercise and Transfer of Options. Unless otherwise provided by
the Committee:

       

      (a)
During the Participant's lifetime, the Participant's Options shall be
exercisable only by the Participant or by the Participant's guardian or legal
representative. After the death of the Participant, an Option shall only be
exercised by the holder thereof (including, but not limited to, an executor or
administrator of a decedent's estate) or his guardian or legal
representative.

       

      (b) No
Option shall be transferable except: (i) in the case of the Participant, only
upon the Participant's death; and (ii) in the case of any holder after the
Participant's death, only by will or by the laws of descent and
distribution.

       

      6.10
Competition. Notwithstanding anything in this Article 6 to the contrary, in the
event the Committee determines, in its sole discretion, that a Participant is
engaging in activity competitive with the Company, any Subsidiary, or any
business in which any of the foregoing have a substantial interest (the "LD
Holdings, Inc. Businesses"), the Committee may cancel any Option granted to such
Participant, whether or not vested, in whole or in part. Such cancellation shall
be effective as of the date specified by the Committee. Competitive activity
shall mean any business or activity if a substantially similar business activity
is being carried on by a LD Holdings, Inc. Business, including, but not limited
to, representing or providing consulting services to any person or entity that
is engaged in competition with a LD Holdings, Inc. Business or that takes a
position adverse to a LD Holdings, Inc. Business. However, competitive activity
shall not include, among other things, owning a nonsubstantial interest as a
shareholder in a competing business.

       

      ARTICLE
7. RESTRICTED STOCK

       

      7.1 Grant
of Restricted Stock. Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant Shares of Restricted
Stock to Eligible Persons in such amounts and upon such terms and conditions as
the Committee shall determine. In addition to any other terms and conditions
imposed by the Committee, vesting of Restricted Stock may be conditioned upon
the attainment of Performance Goals based on Performance Criteria in the same
manner as provided in Section 8.3, herein with respect to Performance
Shares.

       

      7.2
Restricted Stock Agreement. The Committee may require, as a condition to an
Award, that a recipient of a Restricted Stock Award enter into a Restricted
Stock Award Agreement, setting forth the terms and conditions of the Award. In
lieu of a Restricted Stock Award Agreement, the Committee may provide the terms
and conditions of an Award in a notice to the Participant of the Award, on the
Stock certificate representing the Restricted Stock, in the resolution approving
the Award, or in such other manner as it deems appropriate.

       

      7.3
Transferability. Except as otherwise provided in this Article 7, the Shares of
Restricted Stock granted herein may not be sold, transferred, pledged, assigned,
or otherwise alienated or hypothecated until the end of the applicable
Restriction Period established by the Committee, if any.

       

      7.4 Other
Restrictions. The Committee may impose such other conditions and/or restrictions
on any Shares of Restricted Stock granted pursuant to the Plan as it may deem
advisable including, without limitation, a requirement that Participants pay a
stipulated purchase price for each Share of Restricted Stock and/or restrictions
under applicable Federal or state securities laws; and may legend the
certificates representing Restricted Stock to give appropriate notice of such
restrictions.

       

      The
Company shall also have the right to retain the certificates representing Shares
of Restricted Stock in the Company's possession until such time as all
conditions and/or restrictions applicable to such Shares have been
satisfied.

       

      7.5
Removal of Restrictions. Except as otherwise provided in this Article 7, Shares
of Restricted Stock covered by each Restricted Stock grant made under the Plan
shall become freely transferable by the Participant after the last day of the
Restriction Period and completion of all conditions to vesting, if any. However,
unless otherwise provided by the Committee, the Committee, in its sole
discretion, shall have the right to immediately waive all or part of the
restrictions and conditions with regard to all or part of the Shares held by any
Participant at any time.

       

      7.6
Voting Rights, Dividends and Other Distributions. During the Restriction Period,
Participants holding Shares of Restricted Stock granted hereunder may exercise
full voting rights and shall receive all regular cash dividends paid with
respect to such Shares. Except as provided in the following sentence, in the
sole discretion of the Committee, other cash dividends and other distributions
paid to Participants with respect to Shares of Restricted Stock may be subject
to the same restrictions and conditions as the Shares of Restricted Stock with
respect to which they were paid. If any such dividends or distributions are paid
in Shares, the Shares shall be subject to the same restrictions and conditions
as the Shares of Restricted Stock with respect to which they were
paid.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      7.7
Termination of Employment Due to Death or Disability. In the event the
Employment of a Participant shall terminate by reason of death or Disability,
unless otherwise provided by the Committee prior to or at the time of the Award,
all Restriction Periods and all restrictions imposed on outstanding Shares of
Restricted Stock held by the Participant shall immediately lapse and the
Restricted Stock shall immediately become fully vested as of the date of
termination of Employment.

       

      7.8
Termination of Employment for Other Reasons. If the Employment of a Participant
shall terminate for any reason other than those specifically set forth in
Section 7.7 herein, all Shares of Restricted Stock held by the Participant which
are not vested as of the effective date of termination of Employment immediately
shall be forfeited and returned to the Company.

       

      ARTICLE
8. PERFORMANCE SHARES

       

      8.1
Grants of Performance Shares. A Performance Share is equivalent in value to a
Share of Stock. Subject to the terms of the Plan, Performance Shares may be
granted to Eligible Persons at any time and from time to time, as determined by
the Committee. The Committee shall have complete discretion in determining the
number of Performance Shares awarded to each Participant.

       

      8.2
Performance Period. The Performance Period for Performance Shares is the period
over which the Performance Goals are measured. The Performance Period is set by
the Committee for each Award; however, in no event shall an Award have a
Performance Period of less than six months.

       

      8.3
Performance Goals. For each Award of Performance Shares, the Committee shall
establish performance objectives ("Performance Goals") for the Company, its
Subsidiaries, and/or divisions of any of foregoing, based on the Performance
Criteria and other factors set forth below. Performance Goals shall include
payout tables, formulas or other standards to be used in determining the extent
to which the Performance Goals are met, and, if met, the number of Performance
Shares distributed to Participants in accordance with Section 8.5. All
Performance Shares which may not be converted under the Performance Goals or
which are reduced by the Committee under Section 8.5 or which may not be
converted for any other reason after the end of the Performance Period shall be
canceled at the time they would otherwise be distributable. When the Committee
desires an Award to qualify under Section 162(m) of the Code, as amended, the
Committee shall establish the Performance Goals for the respective Performance
Shares prior to or within 90 days of the beginning of the service relating to
such Performance Goal, and not later than after 25% of such period of service
has elapsed. For all other Awards, the Performance Goals must be established
before the end of the respective Performance Period.

       

      (a) The
Performance Criteria which the Committee is authorized to use, in its sole
discretion, are any of the following criteria or any combination
thereof:

       

      (1)
Financial performance of the Company (on a consolidated basis), of one or more
of its Subsidiaries, and/or a division of any of the foregoing. Such financial
performance may be based on net income and/or Value Added (after-tax cash
operating profit less depreciation and less a capital charge).

       

      (2)
Service performance of the Company (on a consolidated basis), of one or more of
its Subsidiaries, and/or of a division of any of the foregoing. Such service
performance may be based upon measured customer perceptions of service
quality.

       

      (3) The
Company's Stock price; return on shareholders' equity; total shareholder return
(Stock price appreciation plus dividends, assuming the reinvestment of
dividends); and/or earnings per share.

       

      (4) With
respect to the Company (on a consolidated basis), to one or more of its
Subsidiaries, and/or to a division of any of the foregoing: sales, costs, market
share of a product or service, return on net assets, return on assets, return on
capital, profit margin, and/or operating revenues, expenses or
earnings.

       

      (5)
Completion of a marketing or development project as defined in the Award
Agreement.

       

      (b)
Except to the extent otherwise provided by the Committee in full or in part, if
any of the following events occur during a Performance Period and would directly
affect the determination of whether or the extent to which Performance Goals are
met, they shall be disregarded in any such computation: changes in accounting
principles; extraordinary items; changes in tax laws affecting net income and/or
Value Added; natural disasters, including floods, hurricanes, and earthquakes;
and intentionally inflicted damage to property which directly or indirectly
damages the property of the Company or its Subsidiaries. No such adjustment
shall be made to the extent such adjustment would cause the Performance Shares
to fail to satisfy the performance-based exemption of Section 162(m) of the
Code.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      8.4
Dividend Equivalents on Performance Shares. Unless reduced or eliminated by the
Committee, a cash payment in an amount equal to the dividend payable on one
Share will be made to each Participant for each Performance Share which on the
record date for the dividend had been awarded to the Participant and not
converted, distributed or canceled.

       

      8.5 Form
and Timing of Payment of Performance Shares. As soon as practicable after the
applicable Performance Period has ended and all other conditions (other than
Committee actions) to conversion and distribution of a Performance Share Award
have been satisfied (or, if applicable, at such other time determined by the
Committee at or before the establishment of the Performance Goals for such
Performance Period), the Committee shall determine whether and the extent to
which the Performance Goals were met for the applicable Performance Shares. If
Performance Goals have been met, then the number of Performance Shares to be
converted into Stock and distributed to the Participants shall be determined in
accordance with the Performance Goals for such Awards, subject to any limits
imposed by the Committee. Conversion of Performance Shares shall occur as soon
as reasonably administratively possible following the determination of the
number of Shares to which the Participant is entitled.

       

      8.6
Termination of Employment Due to Death or Disability. Unless otherwise provided
by the Committee prior to or at the time of an Award, if the Employment of a
Participant shall terminate by reason of death or Disability, the Participant
shall receive a distribution of all outstanding Performance Shares calculated as
if all unfinished Performance Periods had ended with 100% of the Performance
Goals achieved, payable in the year following the date of termination of
Employment.

       

      8.7
Termination of Employment for Other Reasons. If the Employment of a Participant
shall terminate for other than a reason set forth in Section 8.6 (and other than
for Cause), the number of Performance Shares to be converted and distributed
shall be converted and distributed based upon the achievement of the Performance
Goals and in accordance with all other terms of the Award and the Plan; however,
the Participant may receive no more than a prorated payout of all Performance
Shares, based on the portions of the respective Performance Periods that have
been completed.

       

      8.8
Termination of Employment for Cause. In the event that a Participant's
Employment shall be terminated by the Company for Cause, all Performance Shares
shall be forfeited by the Participant to the Company.

       

      8.9
Nontransferability. Performance Shares may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or laws of
intestacy.

       

      ARTICLE
9. Employee Matters

       

      9.1
Employment Not Guaranteed. Nothing in the Plan shall interfere with or limit in
any way the right of the Company or any Subsidiary to terminate any
Participant's Employment at any time, nor confer upon any Participant any right
to continue in the employ of the Company or one of its
Subsidiaries.

       

      9.2
Participation. No Eligible Person shall have the right to be selected to receive
an Award under this Plan, or, having been so selected, to be selected to receive
a future Award.

       

      9.3
Claims and Appeals. Any claim under the Plan by a Participant or anyone claiming
through a Participant shall be presented to the Committee. Any person whose
claim under the Plan has been denied may, within sixty (60) days after receipt
of notice of denial, submit to the Committee a written request for review of the
decision denying the claim. The Committee shall determine conclusively for all
parties all questions arising in the administration of the Plan.

       

      ARTICLE
10. AMENDMENT, MODIFICATION, AND TERMINATION

       

      10.1
Amendment, Modification, and Termination. The Board of Directors alone shall
have the right to alter, amend or revoke the Plan or any part thereof at any
time and from time to time, provided, however, that the Board of Directors may
not, without the approval of the holders of a majority of the voting Shares,
make any alteration or amendment to the Plan which changes the aggregate number
of shares of Common Stock which may be issued under the Plan, extend the term of
the Plan, or change the employees or class of employees eligible to receive
Awards thereunder. The Board may at any time suspend or terminate the Plan in
whole or in part.

       

      10.2
Awards Previously Granted. No termination, amendment, or modification of the
Plan shall adversely affect in any material way any Award previously granted
under the Plan, without the written consent of the Participant holding such
Award.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      ARTICLE
11. CHANGE IN CONTROL

       

      Upon the
occurrence of a Change in Control:

       

      (a) Any
and all Options granted hereunder immediately shall become vested and
exercisable;

       

      (b) Any
Restriction Periods and all restrictions imposed on Restricted Shares shall
lapse and they shall immediately become fully vested;

       

      (c) The
100% Performance Goal for all Performance Shares relating to incomplete
Performance Periods shall be deemed to have been fully achieved and shall be
converted and distributed in accordance with all other terms of the Award and
this Plan; provided, however, notwithstanding anything to the contrary in this
Plan, no outstanding Performance Share may be reduced.

       

      ARTICLE
12. WITHHOLDING

       

      12.1 Tax
Withholding. The Company shall deduct or withhold an amount sufficient to
satisfy Federal, state, and local taxes (including the Participant's employment
tax obligations) required by law to be withheld with respect to any taxable
event arising or as a result of this Plan ("Withholding Taxes").

       

      12.2
Share Withholding. With respect to withholding required upon the exercise of
Options, upon the lapse of restrictions on Restricted Stock, upon the
distribution of Performance Shares in the form of Stock, or upon any other
taxable event hereunder involving the transfer of Stock to a Participant, the
Company shall withhold Stock having a Fair Market Value on the date the tax is
to be determined in an amount equal to the Withholding Taxes on such Stock. Any
fractional Share remaining after the withholding shall be withheld as additional
Federal withholding.

       

      Prior to
the end of any Performance Period a Participant may elect to have a greater
amount of Stock withheld from the distribution of Performance Shares to pay
withholding taxes; provided, however, the Committee may prohibit or limit any
individual election or all such elections at any time.

       

      12.3
Payment In Lieu of Share Withholding. In any situation in which the Company
would be required to withhold Stock pursuant to Sec. 12.2 above, the Participant
may, in lieu of all or part of such withholding, remit to the Company an amount
in cash sufficient to satisfy the federal, state and local withholding tax
requirements or may direct the Company to withhold from other amounts payable to
the Participant, including salary.

       

      ARTICLE
13. SUCCESSORS

       

      All
obligations of the Company under the Plan, with respect to Awards granted
hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

       

      ARTICLE
14. LEGAL CONSTRUCTION

       

      14.1
Severability. In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.

       

      14.2
Requirements of Law. The granting of Awards and the issuance of Shares under the
Plan shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as
may be required.

       

      14.3
Securities Law Compliance. With respect to Insiders, transactions under this
Plan are intended to comply with all applicable conditions of Rule 16b-3 or its
successors under the Exchange Act. To the extent any provision of the plan or
action by the Committee fails to comply with a condition of Rule 16b-3 or its
successors, it shall not apply to the Insiders or transactions
thereby.

       

      14.4
Governing Law. To the extent not preempted by Federal law, the Plan, and all
agreements hereunder, shall be construed in accordance with and governed by the
laws of the State of Nevada.

       

      13

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