Document:

EX-10.6

 Exhibit 10.6 

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE SUCH TERMS ARE BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE
COMPANY IF PUBLICLY DISCLOSED. THESE REDACTED TERMS HAVE BEEN MARKED IN THIS EXHIBIT WITH THREE ASTERISKS [***]. 
 DATA LICENSE AGREEMENT

 This Data License Agreement (“Agreement”) is entered into on March 10, 2021 (the “Effective
Date”) by and between Charter Communications Operating, LLC, a Delaware limited liability company, on behalf of itself and its Affiliates (“Charter”), and comScore Inc., a Delaware corporation, on behalf of itself and its
Affiliates (“Comscore”). 
 WHEREAS, Charter owns and/or operates certain cable television systems; provides and
distributes content and sells advertising on multi-media platform properties that it owns, distributes, or represents; provides certain advertising-related services and technology; and operates communications systems for the provision of video,
internet connectivity and telephony services to individuals and businesses; and these services and platforms generate set top box data, digital data and other data sets; 

WHEREAS, Comscore is a recognized global leader in cross-platform measurement of audiences, advertising and consumer behavior combining
proprietary TV, digital and movie viewing data to measure consumers’ multiscreen behavior; 
 WHEREAS, the Parties desire to
enter into a relationship where Charter will provide Comscore with the Licensed Charter Data (as defined herein) for the purposes provided for herein; and 

WHEREAS, the Parties have entered into Prior Agreements (as defined herein) under which Comscore licenses data from Charter and the
Parties intend that, except as otherwise specifically specified herein, this Agreement will supersede and replace such Prior Agreements in their entirety. 

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

DEFINITIONS 
 Capitalized
terms used in this Agreement shall have the meanings ascribed to them below. 
 Section 1.01 “Affiliate” means, with
respect to either Party, any entity that, directly or indirectly, Controls, is Controlled by, or is under common Control with such Party. 

Section 1.02 “Applicable Laws” means any and all federal, state and local laws, rules, regulations, ordinances
applicable to a Party’s performance of this Agreement or the provision or use of the Licensed Charter Data including, without limitation all Privacy Laws. 

Section 1.03 “Approved Data Providers” means (a) as of the Effective Date, the third parties listed on
Exhibit H and (b) any other third parties that Comscore has notified Charter of in writing (e-mail acceptable) to provide data to be matched with Licensed Charter Data by Approved Match Providers;
provided that Charter may reject any new Approved Data Provider within [***] (e-mail acceptable) of receipt of such notice if Charter reasonably and in good faith determines that the use of such party’s
data may cause reputational or legal harm to Charter. If Comscore reasonably disagrees with Charter’s determination, the Parties shall use reasonable good faith efforts to resolve such disagreement. 

Section 1.04 “Approved Match Providers” [***] 

 

 Section 1.05 [***] 

Section 1.06 “CCO” means Charter Communications Operating, LLC. 

Section 1.07 “Change of Control” means the transfer of the Control of a party from the person(s) or entity(ies) who hold
such Control on the Effective Date to one or more other persons or entities. 
 Section 1.08 “Charter Addressable
Data” means de-identified viewership data from Charter’s addressable advertising delivery on any platform in a form and format mutually agreed to by the Parties within ninety (90) days of
the Effective Date. 
 Section 1.09 [***] 

Section 1.10 “Charter Digital Data” means de-identified viewership data
from Charter’s digital properties across all platforms, including iOS and Android, to the extent Charter collects such data in the normal course of business. 

Section 1.11 “Charter Indemnified Parties” means CCO and its Affiliates and each of their present and former
officers, members, shareholders, directors, employees, representatives, attorneys, and agents, and all of their respective successors, heirs and assigns. 

Section 1.12 “Charter Intellectual Property” means Intellectual Property owned by Charter or licensed by third parties
to Charter. 
 Section 1.13 [***] 

Section 1.14 “Charter Streaming Data” means de-identified viewership data
from Spectrum Applications, including time spent viewing in Spectrum Applications. 
 Section 1.15 “Charter TV Data”
means de-identified linear, VOD, DVR, and TV Everywhere video/television activity data that is technically, commercially, and legally available to Charter and collected from Subscriber household or business
identification designations and RPD Source device identification designations, including from Subscribers using RPD Sources. 

Section 1.16 “Comscore Indemnified Parties” means Comscore and its Affiliates and each of their present and
former officers, members, shareholders, directors, employees, representatives, attorneys, and agents, and all of their respective successors, heirs and assigns. 

Section 1.17 “Comscore Intellectual Property” means Intellectual Property owned by Comscore. 

Section 1.18 “Comscore Property” means any Comscore data, reporting, products and services. 

Section 1.19 “Confidential Information” means all information or data disclosed or made available by the
Disclosing Party to the Receiving Party pursuant to this Agreement, including: (a) the fact that Confidential Information has been disclosed to a Receiving Party; (b) the terms and conditions of this Agreement; and (c) the Disclosing
Party’s proprietary business plans and objectives, financial projections, marketing plans, strategies, forecasts, unpublished financial information, budgets, projections, customer and supplier identities, characteristics and agreements,
marketing materials, inventions, discoveries, ideas, concepts, processes, techniques, methodologies, know-how, and Intellectual Property. Confidential Information may include any information disclosed by the
Disclosing Party that: (i) is labeled or otherwise identified by the Disclosing Party as confidential or proprietary, or (ii) if disclosed in oral or intangible form and given the nature of such information and the circumstances under
which it is disclosed, should be understood by a reasonable person to be confidential or proprietary information of the Disclosing Party. For the avoidance of doubt, Charter Licensed Data is deemed Charter Confidential Information. 

  
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 Section 1.20 “Control” means the ability to vote fifty percent (50%)
or more of the voting securities of, or other ownership interest in, an entity or the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such person or entity, whether through the
ownership of voting securities or other ownership interest, by contract or otherwise. 
 Section 1.21 “Disclosing
Party” means either Party when it discloses or makes available its Confidential Information to the other Party. 

Section 1.22 “Intellectual Property” means any inventions, discoveries, devices, apparatus, technology or processes,
methods, know-how, trade secrets, mathematical calculations, improvements or other intellectual property rights, including any copyright, patent, trademarks, service marks (whether or not an application has
been filed), domain names, and other rights and assets, as well as, any and all applications, registrations, renewals, extensions, restorations and re-instatements thereof, now or hereafter in force and effect
worldwide. 
 Section 1.23 “Licensed Charter Data” means Charter TV Data, Related Charter Data, Charter Streaming
Data, Charter Addressable Data and, subject to the conditions set forth in Section 2.1.2 below, Other Data. 
 Section 1.24
“Markets” means the local geographic markets from which Charter collects Charter TV Data. 
 Section 1.25
“Operator View” means Comscore’s reporting system containing Processed Charter Data, which is made available solely to Charter and to third parties expressly authorized by Charter in its sole discretion in writing from time to
time 
 Section 1.26 “Parties” means Charter and Comscore collectively, and “Party” means each of
them individually. 
 Section 1.27 “PI” means information that can reasonably be associated with an identified or an
identifiable person, household or device. PI can include, but is not limited to, a name, an identification number, e-mail address or other unique identifier, such as device identifiers, cookies, and
advertising identifiers. PI does not include information that is publicly available. 
 Section 1.28 “PII” means
information that directly identifies or reasonably can be used to identify an individual, such as name, address, phone number and e-mail address. 

Section 1.29 “Prior Agreements” mean the February 9,2009 Rentrak OnDemand Essentials MSO Service Agreement between
Rentrak and CCO, as amended, the June 17, 2010 Rentrak TV Essentials Service Agreement between Rentrak and CCO, as amended, the February 4, 2008 Rentrak OnDemand Essentials MSO Service Agreement between Rentrak and Time Warner Cable LLC,
as amended, the October 24, 2017 StationView Essentials Service Order between Rentrak and CCO, and the December 9, 2019 Service Order between Rentrak and CCO. 

Section 1.30 “Processed Charter Data” means Licensed Charter Data that has been processed by Comscore. 

Section 1.31 “Purpose” means the permitted uses of Licensed Charter Data as set forth in Article III. 

Section 1.32 “Raw Usage Data” has the meaning set forth in Exhibit A. 

Section 1.33 “Receiving Party” means either Party when it receives Confidential Information of the other Party.

 Section 1.34 “Related Charter Data” means data provided by Charter or a Charter-approved third party on
Charter’s behalf relating to Charter’s channel lineup and/or geographic market, as well as other non-viewing data provided by Charter or a Charter-approved third party on Charter’s behalf to
Comscore relating to the Charter TV Data. 
 Section 1.35 “Rentrak” means Rentrak Corporation. 

  
 3 

 Section 1.36 “RPD Sources” means Charter set-top boxes, Spectrum Applications and their successor, replacement or similar technological devices(s) or service(s) used by Charter to provide services to Subscribers. 

Section 1.37 “Spectrum Applications” means the streaming video applications made available by Charter to its
Subscribers. 
 Section 1.38 “Subscribers” means households and/or individuals who subscribe to and/or use
Charter’s products and services. 
 Section 1.39 “Syndicated Offering” means a product or service that provides
the same data and view for each customer receiving that offering and is not created for any specific customer and/or does not provide insight specific to such customer or specific to any campaign. 

Section 1.40 “Term” has the meaning set forth in Section 8.01. 

Section 1.41 [***] 

ARTICLE II. 
 CHARTER
DATA PROVISION 
 Section 2.01 Data Provided. 

2.1.1 Licensed Charter Data. During the Term, Charter shall make available to Comscore Licensed Charter Data, subject to and in
accordance with the terms of this Agreement. 
 2.1.2 Other Data. [***] 

Section 2.02 Data Parameters and Specifications. Charter shall use commercially reasonable efforts to ensure that all Licensed
Charter Data provided hereunder is provided on a regular basis in accordance with the Data Parameters set forth on Exhibit A. Charter shall use commercially reasonable efforts to ensure that the Licensed Charter Data provided hereunder is
complete, accurate, free of data anomalies and corruption and compliant with the applicable Charter privacy policy including the applicable opt-out provisions. 

Section 2.03 Service Levels. Charter shall comply with the service levels set forth in Exhibit B when providing Licensed
Charter Data to Comscore. 
 Section 2.04 Comscore Obligations. 

(a) Within [***] after receipt by Comscore, Comscore shall process valid data deletion requests received by Charter from consumers and
transmitted by Charter to Comscore via, as applicable, the Approved Match Provider(s) in a manner that is mutually agreed to by the Parties. 

(b) Comscore shall use commercially reasonable efforts to identify missing or corrupted data, data anomalies or data errors. If Comscore
identifies any missing or corrupted data or data anomalies or errors, it will promptly remit to Charter the details of the same and thereafter the Parties will each provide reasonable assistance to resolve the same. 

(c) [***] 
 (d) [***] 

ARTICLE III. 
 LICENSES
AND RESTRICTIONS 
 Section 3.01 License to Licensed Charter Data. Subject to the terms and conditions of this Agreement and
in consideration of the rights, licenses, and obligations set forth herein, including the aggregation and projection requirements and restrictions set forth herein, Charter hereby grants Comscore a
non-exclusive, nontransferable, revocable, limited right and license to the Licensed Charter Data during the Term for Comscore to [***]. 

  
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 Section 3.02 Restrictions; Aggregation Requirements. Except as otherwise
permitted in this Agreement or approved by Charter in writing (e-mail acceptable where specified): 

(a) Comscore shall not (i) license, provide or otherwise make available any Licensed Charter Data to third parties, other than Approved
Match Providers in accordance with Section 3.04; (ii) report, display, license or otherwise provide the Licensed Charter Data to any third party in a manner that may be reasonably used to identify Charter or to conclusively determine that the
particular data was provided by Charter; (iii) [***]; or (iv) [***]. 
 (b) Comscore shall ensure that any Comscore products and services
that derive results from the Charter TV Data will always, in the applicable calculations for each Market, (i) include usage or viewership data from at least [***] in such Market, or (ii) (A) include usage or viewership data from at least
[***] in such Market and (B) [***]. For clarity, Comscore may not issue any reports or data feeds that contain any Charter TV Data that has not been aggregated and de-identified according to this Agreement.
[***] 
 (c) [***] 
 (d)
Comscore shall process, use, store and disclose all Licensed Charter Data in a secure manner as determined by the privacy and security requirements set forth in Exhibit C, as such Exhibit may be amended from time to time by Charter upon
written notice to Comscore. 
 (e) [***] 

(f) Comscore shall not (i) include any PI in any of its reports, products services, analytics reporting, or other external-facing
documents created in connection with the Licensed Charter Data; or (ii) associate the Charter Licensed Data with any identifiable Subscriber or any other identifiable person or PII. Comscore shall not, under any circumstances, attempt to
ascertain or derive the identity of or obtain any PII concerning any individual or Subscriber household from the Licensed Charter Data. 

(g) [***] If Comscore requests such approval from Charter, Charter shall provide final approval or explanation for non-approval within [***] (e-mail acceptable) of receipt of such request, such approval not to be unreasonably withheld. 

(h) [***] 
 (i) [***] If Comscore
requests Charter’s approval for an exception to this Section 3.02(i), Charter shall provide final approval or explanation for non-approval within [***] (e-mail
acceptable) of receipt of such request, such approval not to be unreasonably withheld. 
 Section 3.03 Third-Party Linking.
Comscore may use a Content Delivery Network (e.g. [***]) or another party as a third-party linking service to facilitate the creation of cross-platform measurement products (including attribution, ad effectiveness, ad planning, buying, and
optimization) using Licensed Charter Data (subject to Section 3.02(g)) and other use cases agreed to by the Parties. [***] All linking pursuant to this Section shall be performed in accordance with the third-party linking workflows set forth in
Exhibit D or as otherwise agreed to in writing by the Parties. For clarity, [***]. If Comscore requests such approval from Charter, Charter shall provide final approval or explanation for non-approval
within [***] (e-mail acceptable) of receipt of such request, such approval not to be unreasonably withheld. 

Section 3.04 Matching. Comscore may perform first-party and third-party matches at a household level with Licensed Charter Data
and client provided or other owned or licensed data for all approved use cases, [***]. 

  
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 (a) Approved Match Providers; Workflow. All first- and third-party matching permitted
under this Agreement must be performed by the Approved Match Provider(s) solely as described in this Agreement, including in accordance with the matching workflow set forth in Exhibit D. 

(b) Third-Party Matching. Comscore shall have the right, in connection with use cases permitted under this Agreement, to integrate or
match Licensed Charter Data at a household (HH) or STB device level (or in either case, at a lesser granularity than household (HH) (e.g., ZIP code) to any data provided by Approved Data Providers; [***]. 

(c) First-Party Matching. [***] 

ARTICLE IV. 
 CERTAIN
COVENANTS 
 Section 4.01 Preferred Access. Charter shall provide Comscore with Preferred Access to all Licensed Charter
Data. [***] “Local Measurement” means content measurement or advertising measurement (including for attribution or ad effectiveness, subject to Section 3.02(g), in a local market of syndicated ratings-based or syndicated
impressions-based reporting of viewing activity in any market or group of markets. 
 Section 4.02 Preferred Data Measurement
Partner. Charter shall designate Comscore as its Preferred Data Measurement Partner for the Term. [***] 
 Section 4.03
Preferred Local Measurement Provider. Charter will not license any of the Licensed Charter Data for Local Measurement purposes to any other party for five (5) years beginning July 1, 2021 (other than with respect to [***]). 

Section 4.04 Provision of Digital Data. [***] 

Section 4.05 Programmer Addressable Impressions. Charter shall publicly endorse Comscore as Charter’s default solution for
addressable measurement and shall openly and publicly support Comscore as the default industry standard for addressable measurement. Charter shall promote Comscore in affiliated organizations as default provider, including On Addressability,
Ampersand and Canoe. Charter will provide the available data and necessary rights to that data from its addressable advertising delivery to support Comscore’s addressable measurement business. 

ARTICLE V. 
 PRIVACY AND
DATA SECURITY 
 Section 5.01 Privacy. The Parties acknowledge and understand that any use, access to, sharing, disclosure
and storage of all PI relating to Charter’s Subscribers is subject to: (a) the subscriber privacy protections set forth in Section 631 of the Cable Communications Policy Act of 1984, as amended (47 USC 551) (the “Cable
Act”); (b) the then current documented Subscriber information collection business practices and written customer privacy policies of Charter (which practices and policies are described more fully at
https://www.spectrum.com/policies/your-privacy-rights, and may be amended in Charter’s sole discretion from time to time, provided that Charter shall notify Comscore as soon as reasonably practicable of any update to Charter’s data
handling practices or polices that would materially impact the Licensed Charter Data as it relates to this Agreement); and (c) all applicable local, state and federal laws, rules and regulations governing Charter’s collection, maintenance,
transmission, dissemination, use and destruction of Charter PI, including (i) any state and federal security breach notification laws, (ii) any state and federal laws and regulations requiring the protection or deletion of PI or PII,
including without limitation the California Consumer Privacy Act of 2018 and related regulations, as such Act and regulations may be amended from time to time (collectively, the “CCPA”), to the limited extent of such laws’ and
regulations’ applicability, and (iii) the rules, regulations and directives of the Federal Communications Commission and the Federal Trade Commission, as amended from time to time (collectively, the “Privacy Laws”). Each
Party represents and warrants that it will comply with the Privacy Laws, as applicable, and Comscore 

  
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specifically agrees to be subject to the terms of this Article applicable to its use and disclosure of any PI it receives hereunder, or any Licensed Charter Data that include any individual
household statistics that is not aggregated and de-identified/anonymized as if it were a cable operator, and Comscore shall not engage in any conduct (whether by act or omission) that would cause Charter to be
in violation of the Privacy Laws. The Parties agree that the Licensed Charter Data made available to Comscore is not intended to include and should not include PII, and Charter will use commercially reasonable efforts to ensure that PII is not made
available or provided to Comscore; provided that Comscore will use commercially reasonable efforts to identify and exclude any PII that may inadvertently be included in the Licensed Charter Data. To the extent that PII is nevertheless provided to
Comscore, upon detection, Comscore will promptly notify Charter within 24 hours and will destroy, and certify to Charter that Comscore or any third party acting on Comscore’s behalf, has destroyed, all copies thereof in Comscore’s
possession or control unless otherwise instructed by Charter or required by Applicable Law. The Parties agree to work together in good faith to prevent the use and/or dissemination by any person or entity of any PII that may be included in the
Licensed Charter Data. For the avoidance of doubt, all Licensed Charter Data is Charter Confidential Information, and Comscore shall handle Licensed Charter Data in accordance with all applicable security and confidentiality terms and conditions of
this Agreement and all Applicable Laws. 
 Section 5.02 Legal Restrictions. In the event that either Party, based on the
reasoned advice of counsel, at any time determines in good faith it is reasonably likely that the performance of its obligations under this Agreement, including without limitation the release of the Licensed Charter Data or any subset thereof to
Comscore pursuant to this Agreement, is not compliant with Applicable Laws or such Party’s privacy policy (collectively, “Legal Restrictions”), such Party shall immediately notify the other Party in writing of such
determination and any non-compliance; provided that as soon as circumstances become apparent which may lead to such determination, the Parties will notify each other of the possibility that a notice of non-compliance may be forthcoming. Upon discovery of any such non-compliance, Charter may suspend delivery of any portion of the Licensed Charter Data that violates any Legal
Restrictions and Comscore may suspend providing the services it provides to Charter referenced in Section 6.03; provided that the Parties will use reasonable, good-faith efforts to effect the intention of the Parties hereto subject to Legal
Restrictions, pursuant to a different format or process upon mutually agreeable terms. Upon execution of a mutually agreeable and legally sufficient modification, any portion of the Licensed Charter Data that had not been delivered will thereafter
be delivered and Comscore will, if applicable, resume providing services and access to Charter referenced in Section 6.03. The Parties agree to take commercially reasonable steps to minimize any negative impact on both
Parties from such suspension or termination; provided that nothing herein requires Charter or Comscore to continue to engage in any activity that violates any Legal Restrictions or unreasonably increases its risk of violating any Legal Restrictions,
as determined by that Party’s legal counsel. 
 Section 5.03 Data Protection. Comscore shall use commercially reasonable
efforts, including leading industry accepted standards and practices to ensure the integrity and confidentiality of the Licensed Charter Data stored at and/or transmitted over any form to Comscore owned or leased servers or replacement technology.
Comscore shall implement and maintain reasonable administrative, physical, and technical safeguards as identified on Exhibit C. Comscore will maintain in place a commercially reasonable disaster recovery plan designed to provide recovery from
a communications failure within 24 hours of such failure. Comscore shall notify Charter promptly upon discovery of any unauthorized use, access, acquisition or disclosure of Licensed Charter Data and will cooperate with Charter in every reasonable
way to help it investigate such unauthorized use, access, acquisition or disclosure, regain possession of such information, prevent its further unauthorized use, and cooperate with any notification that may be required by Applicable Law. 

  
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 Section 5.04 Licensed Charter Data Retention. Comscore shall have the right to
retain Licensed Charter Data for up to [***] after receipt. Comscore shall not keep and shall immediately delete or destroy all such Licensed Charter Data that is not within the applicable retention period set forth above. 

Section 5.05 Audit. During the Term and for a period of [***] thereafter, Comscore shall maintain accurate and complete books,
files, and records associated with this Agreement, including sufficient information to demonstrate Comscore’s compliance with this Agreement. Upon not less than thirty (30) days’ prior written notice, Charter shall have the right to,
through the use of a third-party auditor examine Comscore procedures, practices, operations, books, files, and records relating to the Licensed Charter Data and Comscore’s possession, use and protection thereof. Such audit will occur during
normal business hours and for the sole purpose of, and to the extent necessary for, verifying Comscore’s compliance with this Agreement. The costs and expenses of such audit shall be paid by Charter unless the auditors find a material breach by
Comscore of this Agreement in which case Comscore shall pay the reasonable costs. 
 ARTICLE VI. 

CONSIDERATION 

Section 6.01 License Fee. Comscore will pay Charter an annual License Fee as defined in Exhibit G in accordance with
the payment schedule set forth in Exhibit G. 
 Section 6.02 Operator View. Throughout the Term, Comscore will create,
provide and maintain licenses to a custom version of the Operator View. The Operator View may be used by Charter for its commercial purposes and may be accessed via UI. 

Section 6.03 Product Access. Throughout the Term, Comscore will provide to Charter, [***], licenses and access to Comscore
products and services that are currently provided to Charter as of the Effective Date and to other Syndicated Offerings that use Licensed Charter Data. Notwithstanding the foregoing, any parties that become Affiliates of Charter after the Effective
Date shall not have access to or licenses to such products or services hereunder unless such party provides Comscore with data elements similar to Licensed Charter Data with the same rights allowed herein at no additional cost to Comscore (either as
part of the Licensed Charter Data or otherwise), and the Parties agree to integrate such data elements into Comscore products or services. [***] 

ARTICLE VII. 
 OWNERSHIP
AND INTELLECTUAL PROPERTY 
 Section 7.01 Ownership of Licensed Charter Data. As between the Parties, Charter owns all
right, title, and interest in and to the Charter Intellectual Property and the Licensed Charter Data. 
 Section 7.02 Ownership of
Comscore Reports, Products Services and Data. As between the Parties and exclusive of any Licensed Charter Data, Comscore shall own all right, title and interest to, and shall retain all right, title and interest to Comscore Intellectual
Property, the Comscore products, services, reports and data feeds the aggregated data sets contained therein. 
 ARTICLE VIII. 

TERM AND TERMINATION 

Section 8.01 Term. This Agreement shall be in full force and effect for the period commencing on the Effective Date and ending ten
(10) years after such Effective Date unless sooner terminated in accordance with the terms of this Agreement or extended in a mutually agreed amendment to this Agreement (the “Term”). 

  
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 Section 8.02 Termination. This Agreement may be terminated by either Party (such
Party being referred to as the “Terminating Party”) immediately in the event of any material breach by the other Party of that is not cured within forty-five (45) days after written notice of such breach, if such breach is
capable of cure. This Agreement shall automatically terminate in the event of the insolvency of either of the Parties or if either of the Parties are declared bankrupt or makes an assignment for the benefit of creditors, or in the event a receiver
is appointed or any proceeding is demanded by, for or against either of the Parties under any provision of any bankruptcy law. Each Party agrees to provide notice to the other Party of the occurrence of any of the aforementioned events which would
give rise to a termination right by the other Party or an automatic termination of this Agreement. In the event that this Agreement is terminated for any reason then, notwithstanding anything to the contrary in such other agreement Comscore shall no
longer be obligated to provide Charter any products and services at no charge and all agreements that provide such products and services at no charge shall automatically terminate with no further action needed. 

Section 8.03 Effects of Termination. Upon termination or expiration of this Agreement, (i) all rights granted by Comscore
under this Agreement, including the right to access any Comscore Property, will immediately cease, except as otherwise expressly provided in this Agreement or otherwise agreed to by the Parties, (ii) all rights granted by Charter under this
Agreement, including the right to access and use any Licensed Charter Data, will immediately cease and Charter will have no further obligation to provide the Licensed Charter Data to Comscore (notwithstanding the foregoing, unless Charter terminates
this Agreement for a material breach by Comscore, Comscore shall, subject to the retention requirements stated in Section 5.04, retain all rights under Section 3.01(i) with respect to the Licensed Charter Data provided prior to the
termination or expiration and shall be able to continue to use such Licensed Charter Data for historical reporting and for Comscore’s syndicated products and services into which such Licensed Charter Data was integrated prior to the termination
or expiration of the Agreement), and (iii) all amounts then due to Charter shall be immediately due and payable and, if Charter terminates this Agreement during the initial ten (10)-year term for a material breach by Comscore, then within
ninety (90) days of such termination Comscore shall pay to Charter as liquidated damages an amount calculated as follows: [***]. 

Section 8.04 Survival. The terms and provision of this Agreement which by their nature are intended to survive termination or
expiration of this Agreement shall so survive, including Article I, Article V, Article VII, Section 8.03, Article IX, Article XI, and Article XII. 

ARTICLE IX. 

CONFIDENTIALITY 

Section 9.01 During the Term and for three (3) years thereafter (and at all times following the expiration or termination of the
Term with respect to PI and trade secrets except as otherwise expressly allowed under this Agreement), the Receiving Party shall not disclose the Disclosing Party’s Confidential Information to any third party without the prior written consent
of the Disclosing Party other than: (i) to the Receiving Party’s employees and professional services advisors as required (“Representatives”), or (ii) as may be required by law, regulation or court order, subject to
the terms of Section 9.03 below. The Receiving Party will only disclose the Disclosing Party’s Confidential Information to those of the Receiving Party’s employees and Representatives who have a need to know such Confidential
Information for the purpose of performing the Receiving Party’s obligations, or exercising the Receiving Party’s rights, under this Agreement. The Receiving Party shall make all of its Representatives aware of the fact that the
Confidential Information is confidential and contractually bind Representatives to the obligations owing to the Disclosing Party. The Receiving Party shall be responsible for the acts or omissions of its Representatives with regard to Confidential
Information and for any breach by any of them of said obligations or any other terms of this Agreement. The Receiving Party shall protect the confidentiality and maintain security measures adequate to safeguard all of the Disclosing Party’s
Confidential Information from disclosure to others using at least the same degree of care used to protect the Receiving Party’s own highly Confidential Information and trade secrets, but in any case using no less than a reasonable degree of
care and, specifically, Comscore shall maintain and secure any Charter Confidential information in electronic data format using security measures that meet or exceed the ISO/IEC 27002 information security controls standard, as further set forth in
Exhibit C. 

  
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The Receiving Party shall further use such Confidential Information only for the purposes of exercising its rights and performing its obligations under this Agreement. The Disclosing Party may
disclose the Confidential Information to the Receiving Party in written or other tangible form (including on magnetic media) or by oral, visual or other means. The Receiving Party may make copies of Confidential Information to the extent reasonably
necessary for the Receiving Party’s use as permitted under this Section. 
 Section 9.02 Confidential Information shall not
include information that: (i) is publicly known at the time of the Disclosing Party’s disclosure thereof to the Receiving Party; (ii) is, or becomes, publicly known, through no fault of the Receiving Party subsequent to the time of
the Disclosing Party’s disclosure thereof to the Receiving Party; (iii) is received by the Receiving Party free of any obligation of confidentiality prior to the time such information is received by the Receiving Party; (iv) is
developed by the Receiving Party independently of, and without use of, the Confidential Information; (v) is rightfully obtained by the Receiving Party from third parties authorized to make such disclosure without restriction; or (vi) is
identified in writing by the Disclosing Party as no longer proprietary or confidential. 
 Section 9.03 In the event the Receiving
Party is required by law, regulation or court order to disclose any Confidential Information, the Receiving Party shall promptly notify the Disclosing Party in writing prior to making any such disclosure to facilitate the Disclosing Party seeking a
protective order or other appropriate remedy. The Receiving Party agrees to reasonably cooperate with the Disclosing Party in seeking such order or other remedy. The Receiving Party further agrees that if the Disclosing Party is not successful in
precluding the disclosure of the Confidential Information, it shall furnish only that portion of the Confidential Information that is legally required and shall exercise all reasonable efforts to obtain reliable assurances that confidential
treatment shall be accorded the Confidential Information. 
 Section 9.04 If the Receiving Party becomes aware of any threatened or
actual misappropriation, unauthorized access or acquisition to, use or disclosure of, or any inability to account for any Confidential Information, the Receiving Party will promptly notify the Disclosing Party of the details thereof and will
immediately use its own commercially reasonable efforts and provide all reasonable assistance to the Disclosing Party to terminate or at least minimize any such threatened or actual misappropriation and unauthorized access, use or disclosure, and/or
to recover any misappropriated or unaccounted for Confidential Information. 
 Section 9.05 Security Requirements. In addition
to all terms set forth herein, Comscore shall comply with the terms of the Security Addendum attached hereto and incorporated herein as Exhibit C. 

Section 9.06 Equitable Relief. The Receiving Party acknowledges and agrees that any breach or threatened breach of the provisions
of this Article is likely to cause the Disclosing Party irreparable harm for which money damages may not be an appropriate or sufficient remedy. The Receiving Party therefore agrees that, in such circumstances, the Disclosing Party (or its
Affiliates, as the case may be), may be entitled to receive injunctive or other equitable relief to remedy or prevent any breach or threatened breach of this Agreement. Such remedy is not the exclusive remedy for any breach or threatened breach of
this Agreement but is in addition to all other rights and remedies available at law or in equity. 
 ARTICLE X. 

REPRESENTATIONS AND WARRANTIES 

Section 10.01 By Comscore. Comscore represents and warrants that (a) Comscore is a corporation validly existing and in good
standing under the laws of the State of Delaware and has the corporate power to enter into this Agreement and perform its obligations hereunder; (b) the performance of this Agreement by Comscore or its vendors or subcontractors does not and
shall not violate (i) any Applicable Laws, (ii) the certificate of incorporation or by-laws of Comscore and no consent from any third party is required for Comscore to enter into or perform this
Agreement, or (iii) any agreement to which Comscore is a party; (c) Comscore has the right to perform its obligations as contemplated hereunder; (d) Comscore is the owner of, or has the right to license, any third-party data used in
connection with the 

  
 10 

 
Licensed Charter Data and has the right to use that data for the use contemplated hereunder; (e) no Comscore Property, nor Charter’s use of any Comscore Property, will infringe or
otherwise misappropriate the Intellectual Property rights of any third party; (f) Comscore has provided notice and choice for uses of the Comscore data that is used in connection with the Licensed Charter Data that is compliance with Applicable
Law and its privacy policies; and (g) Comscore will not identify or attempt to identify, or obtain or attempt to obtain PII of, Subscribers, and Comscore will not disclose any such PII if it should happen to possess such PII. 

Section 10.02 By Charter. Charter represents and warrants that: (a) Charter is a limited liability company validly existing
and in good standing under the laws of the State of Delaware and has the corporate power to enter into this Agreement and perform its obligations hereunder; (b) the performance of this Agreement by Charter or its vendors or subcontractors does
not and shall not violate (i) any Applicable Laws, (ii) the certificate of incorporation or by-laws of Charter, or (iii) any agreement to which Charter is a party; (c) Charter has the right
to perform its obligations as contemplated hereunder; (d) Charter is the owner of, or has the right to license, the Licensed Charter Data and has the right to grant the license provided herein for the use contemplated hereunder; (e) no
Licensed Charter Data provided under this Agreement infringes upon or will infringe or otherwise misappropriates the Intellectual Property rights of any third party; and (f) Charter has provided notice and a choice to its Subscribers that is in
compliance with Applicable Law and its applicable privacy policies. 
 Section 10.03 Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY
SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO ANY DATA OR SERVICES PROVIDED HEREUNDER, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR
FITNESS FOR PARTICULAR PURPOSE OR ARISING BY USAGE OF TRADE, COURSE OF DEALING, OR COURSE OF AS EXPRESSLY PROVIDED FOR OTHERWISE IN THIS AGREEMENT, NEITHER PARTY WARRANTS THAT THE DATA OR SERVICES PROVIDED IS ERROR-FREE OR THAT THE PROVISION OF THE
DATA OR SERVICES SHALL BE UNINTERRUPTED, AND EACH PARTY HEREBY DISCLAIMS ANY AND ALL LIABILITY ON ACCOUNT THEREOF. THE ABOVE LIMITATIONS SHALL APPLY TO THE EXTENT ALLOWED BY APPLICABLE LAW. 

ARTICLE XI. 

INDEMNIFICATION 

Section 11.01 By Comscore. Comscore shall defend, indemnify, and hold harmless the Charter Indemnified Parties from
and against any and all losses, liabilities, judgments, claims, costs, damages and expenses (including, without limitation, fines, forfeitures, reasonable attorneys’ fees, disbursements and administrative or court costs)
(“Losses”) arising out of or in connection with: (a) any claim by a third party arising from Comscore’s unauthorized disclosure of Charter’s Confidential Information or a breach of confidentiality and/or security by
Comscore or Comscore’s subcontractors with respect to Licensed Charter Data; (b) any claim by a third party (including any Subscriber) for a violation of such third party’s privacy rights arising from Comscore’s or its
vendors’ or subcontractors’ actions or inactions (including without limitation arising from Comscore’s violation or breach of the applicable terms of use, privacy policy, or other agreement between Comscore and such third party)
(other than such claim arising from a breach by Charter of this Agreement); (c) any claim by a third party resulting from Comscore’s material breaches of its representations, warranties and covenants hereunder; (d) Comscore’s gross
negligence or willful misconduct hereunder; (e) any claim by a third party resulting from Comscore’s failure to comply with all Applicable Laws; (f) any claim by a third party resulting from the infringement or misappropriation of
Charter’s Intellectual Property by Comscore; or (g) any claim by a third party alleging any Comscore Property or Charter’s use of any Comscore Property infringes or otherwise misappropriates any third party Intellectual Property or
other proprietary rights. 

  
 11 

 Section 11.02 By Charter. Charter shall defend, indemnify, and hold harmless the
Comscore Indemnified Parties from and against any and all Losses arising out of or in connection with any claim brought by a third party (including any Subscriber): (a) for a violation of such third party’s privacy rights arising from
Charter’s or its vendors’ or subcontractors’ actions or inactions (including without limitation arising from Charter’s violation or breach of the applicable terms of use, privacy policy, or other agreement between Charter and
such third party), other than any such violation or breach arising out of Comscore’s breach of this Agreement;); (b) resulting from Charter’s material breaches of its representations, warranties and covenants hereunder; (c) resulting
from Charter’s gross negligence or willful misconduct hereunder; (d) resulting from Charter’s failure to comply with all Applicable Laws; (e) resulting from the infringement or misappropriation of Comscore’s Intellectual
Property by Charter; or (f) alleging any Licensed Charter Data or Comscore’s use of any Licensed Charter Data infringes or otherwise misappropriates any third party Intellectual Property or other proprietary rights. 

Section 11.03 Notice and Participation. Upon receipt of notice of the assertion of a claim against a Charter Indemnified Party or
a Comscore Indemnified Party (each an “Indemnified Party”) such Indemnified Party shall promptly notify the other Party (the “Indemnifying Party”) of the same; provided that the Indemnified Party’s failure to
provide such notice shall not relieve the Indemnifying Party of its indemnification and defense obligations unless, and only to the extent, such failure materially prejudices the Indemnifying Party’s ability to provide a defense to or indemnity
for such claims. The Indemnified Party shall have the right to employ separate counsel and to participate in (but not control) any such action, but the fees and expenses of such counsel shall be at the expense of the Indemnified Party.
Notwithstanding the foregoing, under no circumstances shall the Indemnifying Party settle any claim or dispute if such settlement: (i) requires the Indemnified Party to admit any liability, (ii) imposes any equitable remedy against the
Indemnified Party; (iii) imposes any financial obligations for which the Indemnified Party is not otherwise indemnified hereunder, of (iv) imposes any other liability or obligations upon the Indemnified Party (including any admission of
wrongdoing by the Indemnified Party) which would be reasonably expected to have an adverse effect upon the Indemnified Party’s business, reputation or prospects. 

Section 11.04 Limitation of Liability; Obligation to Correct Errors. 

(a) EXCEPT FOR: (I) A PARTY’S BREACH OF THE CONFIDENTIALITY OR PRIVACY AND SECURITY PROVISIONS OF THIS AGREEMENT, (II) A
PARTY’S INTENTIONAL BREACH OF THIS AGREEMENT, (III) A PARTY’S GROSS NEGLIGENCE, WILLFUL MISCONDUCT AND/OR FRAUD, (IV) A PARTY’S FAILURE TO COMPLY WITH APPLICABLE LAWS, RULES OR REGULATIONS IN ITS PERFORMANCE OF THIS
AGREEMENT, AND (V) EACH PARTY’S INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES OR ANY OTHER INDIRECT DAMAGES (INCLUDING LOSS OF REVENUES OR PROFITS OR
DAMAGES ARISING FROM LOST DATA OR CONTENT) UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

(b) OTHER THAN FOR (I) A PARTY’S BREACH OF THE CONFIDENTIALITY OR PRIVACY AND SECURITY PROVISIONS OF THIS AGREEMENT, (II) A
PARTY’S INTENTIONAL BREACH OF THIS AGREEMENT, (III) A PARTY’S GROSS NEGLIGENCE, WILLFUL MISCONDUCT AND/OR FRAUD, (IV) A PARTY’S FAILURE TO COMPLY WITH APPLICABLE LAWS, RULES OR REGULATIONS IN ITS PERFORMANCE OF THIS
AGREEMENT, AND (V) EACH PARTY’S INDEMNIFICATION OBLIGATIONS, THE AGGREGATE LIABILITY OF EACH PARTY TO THE OTHER FOR DAMAGES ARISING UNDER THIS AGREEMENT SHALL NOT EXCEED [***]. THE PARTIES HAVE AGREED THAT THESE LIMITATIONS WILL SURVIVE
AND APPLY EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS AGREEMENT IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE. 

  
 12 

 ARTICLE XII. 

MISCELLANEOUS 

Section 12.01 Integration, Waivers, and Modifications. This Agreement, including the Exhibits and Schedules attached hereto which
are incorporated by reference, represents the entire agreement between Charter and Comscore relating to the subject matter of this Agreement and supersedes all prior agreements or understandings, written or oral, relating to the subject matter of
this Agreement. No failure or delay on the part of either Party in exercising any right, power, or remedy under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any such right, power, or remedy preclude any other
or further exercise or the exercise of any other right, power, or remedy. Unless otherwise specified, any amendment, supplement, or modification to any provision of this Agreement, any waiver of any provision of this Agreement, and any consent to
any departure by the Parties from the terms of this Agreement, shall be effective only if it is made or given in writing and signed by both Parties. 

Section 12.02 Media Release and Public Announcement. Comscore shall have the right to identify Charter as a customer on its
website or in marketing materials. Upon execution of this Agreement Comscore shall have the right to announce the entering into of this Agreement (including the general nature of the transactions contemplated in this Agreement); provided that any
such press release or similarly broadly distributed public statements shall be first mutually approved by Charter and Comscore. 

Section 12.03 Liability; Expenses. Except as expressly set forth in this Agreement, each Party shall be responsible for
(a) the acts and omissions of its employees, contractors and sub-contractors, and (b) its own costs and expenses incurred in connection with the transactions contemplated hereunder. 

Section 12.04 Severability. If any provision or portion thereof of this Agreement shall be adjudged by any court of competent
jurisdiction to be unenforceable or invalid for any reason whatsoever, that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable. 

Section 12.05 Modification and Waiver. Except as expressly set forth herein, this Agreement shall not be modified except in
writing signed by both Parties. No waiver by either Party of any breach of this Agreement by the other shall be deemed to be a waiver of any preceding or subsequent breach thereof. 

Section 12.06 Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal
representatives, successors and permitted assigns. Either Party may assign its rights or obligations under this Agreement, in its entirety, to any entity that Controls, is Controlled by, or is under common Control with the assigning Party or in
connection with a merger or acquisition of all or substantially all of such Party’s stock or assets by providing no less than thirty (30) days’ prior written notice to the other Party, unless prohibited by confidentiality obligations.
In the event the non-assigning Party objects to the assignment, the non-assigning Party may terminate this Agreement by providing written notice to the assigning Party:
(i) prior to the anticipated effective date of assignment set forth in the assigning Party’s notice; or (ii) after the effective date of assignment if the non-assigning Party is notified after
the effective date of the assignment as a result of confidentiality obligations restricting the assigning Party’s ability to notify the non-assigning Party. 

Section 12.07 No Agency. Neither this Agreement nor any act of the Parties hereunder shall be construed as creating a partnership,
joint venture or association between Comscore and Charter. Neither Party shall have the right to bind the other to any obligation or liability whatsoever. 

Section 12.08 Headings. The headings in this Agreement are solely for convenience and shall be given no meaning or effect in the
construction or interpretation of this Agreement. 

  
 13 

 Section 12.09 Notices. All notices, requests, demands, claims, and other
communications provided for or permitted under this Agreement shall be in writing and shall be deemed duly given if provided to the applicable addresses set forth below and (i) if personally delivered, when so delivered, (ii) if mailed,
two business days after having been sent by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient set forth below, or (iii) if sent through an overnight delivery service that guarantees
next day delivery, the day following being so sent: 
 If to Charter: [***] 

If to Comscore: [***] 
 The notice information
above of either Party may be changed by giving written notice of the change to the other Party in accordance with this Section 12.09. 

Section 12.10 Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State of New
York, without regard to its principles of conflict of laws. Each of the Parties submits to the exclusive jurisdiction of any state or federal court sitting in the New York County Civil Courts or the United States District Court for the Southern
District of New York in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Each of the Parties waives any defense of
inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto. 

Section 12.11 Force Majeure. If the performance by either Party of any of the provisions of this Agreement entered into hereunder
shall be delayed or prevented by force majeure events, which are those events beyond such Party’s reasonable control (including the following to the extent such is beyond such Party’s reasonable control: acts of God or the government,
riot, or other industrial disturbances, fire, or flood), then such Party shall be excused from performance for the period of time and to the extent it is prevented from performing, due to such force majeure; provided that (a) it has taken all
reasonable steps to overcome or remedy such inability to perform, and (b) if performance is so delayed for a period in excess of thirty (30) calendar days, the other Party may terminate this Agreement at any time thereafter (until such
time as performance is completed) by delivery of a written notice of termination. Charter may, but is not required to, take any self-help actions (including but not limited to engaging additional third parties) needed to reduce delays or harm that
may be caused by or related to Comscore’s inability to perform its obligations under this Agreement (“Self-Help Actions”). Self-Help Actions shall include but are not limited to engaging additional third parties. Neither party
shall be responsible for any costs that the other party incurs for as a result of taking Self-Help Actions to reduce such delays or harm. 

[Signature page follows.] 

  
 14 

 IN WITNESS WHEREOF, each Party has caused this Agreement to be executed by its duly authorized
representatives as of the respective date written below. 
  

			
	Charter Communications Operating, LLC
	By: Charter Communications, Inc., its manager
		
	By:	 	 /s/ David Kline

	Name:	 	David Kline
	Title:	 	EVP and President, Spectrum Reach
		
	Date:	 	March 10, 2021
	
	comScore, Inc.
		
	By:	 	 /s/ Gregory A. Fink

	Name:	 	Gregory A. Fink
	Title:	 	Chief Financial Officer & Treasurer
		
	Date:	 	March 10, 2021

  
 15 

 EXHIBIT G 

LICENSE FEE 
 The “License
Fee” means [***] for providing Comscore with the Licensed Charter Data as set forth herein. Charter shall bill Comscore for the License Fee according to the following payment schedule: 

 

																																									
	 	  	Year 1	 	  	Year 2	 	  	Year 3	 	  	Year 4	 	  	Year 5	 	  	Year 6	 	  	Year 7	 	  	Year 8	 	  	Year 9	 	  	Year 10	 
	 Annual fee (millions of dollars)
	  	 	10.00	 	  	 	12.25	 	  	 	14.50	 	  	 	16.75	 	  	 	19.00	 	  	 	21.25	 	  	 	23.50	 	  	 	25.75	 	  	 	28.00	 	  	 	32.32	 

 Comscore will pay each amount in the above schedule in four (4) equal quarterly installments, with each installment due
and payable in arrears within sixty (60) days following the end of the applicable quarter. [***] 
  

	(a)	 Base License Fee: [***] 

 

	(b)	 Additional Data/Use License Fee: [***] 

 

	(c)	 Preferred Status License Fee: [***] 

  
 16 

 Omitted Schedules 

Exhibit A – Data Parameters, Format and Method of Transmission 

Exhibit B – Service Levels 
 Exhibit C – Security
Addendum 
 Exhibit D – Third-Party Linking and Matching Workflows; Match Process 

Exhibit E – Prohibited Health Condition Data 
 Exhibit F
– Pharmaceutical Use Case Requirements 
 Exhibit H – Third-Party Matching 

Exhibit I – First-Party Matching 

  
 17airc-ex41_10.htm

Exhibit 4.1

DESCRIPTION OF SECURITIES

REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT

General

AIR’s charter authorizes the issuance of up to 1,021,175,000 shares of Class A common stock, par value of $.01 per share, and 1,000,000 shares of Class A preferred stock, par value $.01 per share. 

Power to Reclassify Unissued Shares

AIR’s Board of Directors has the power, without stockholder approval, to amend AIR’s charter to increase or decrease the aggregate number of authorized shares of stock or the number of authorized shares of stock of any class or series, to authorize AIR to issue additional authorized but unissued shares of Class A common stock or preferred stock and to classify and reclassify any unissued shares of AIR’s Class A common stock or preferred stock into other classes or series of stock, including one or more classes or series of Class A common stock or preferred stock that have priority with respect to voting rights, dividends, or upon liquidation over shares of AIR’s Class A common stock. Prior to the issuance of shares of each new class or series, AIR’s Board of Directors will be required by the MGCL and AIR’s charter to set, subject to the provisions of AIR’s charter regarding restrictions on transfer and ownership of stock, the terms, preferences, conversion, or other rights, voting powers, restrictions, limitations as to dividends, or other distributions, qualifications, or terms or conditions of redemption for each class or series of stock.

Common Stock

Holders of the Class A common stock are entitled to receive dividends, if, when and as declared by AIR’s Board of Directors, out of funds legally available therefor. The holders of shares of Class A common stock, upon any voluntary or involuntary liquidation, dissolution or winding up of or any distribution of the assets of AIR, are entitled to receive ratably any assets remaining after payment in full of all liabilities of AIR and any liquidation preferences of preferred stock. The shares of Class A common stock possess voting rights for the election of directors of AIR and in respect of other corporate matters, each share entitling the holder thereof to one vote. Holders of shares of Class A common stock do not have cumulative voting rights in the election of directors, which means that holders of more than 50% of the shares of Class A common stock voting for the election of directors can elect all of the directors if they choose to do so and the holders of the remaining shares cannot elect any directors. Holders of shares of Class A common stock do not have preemptive rights, which means that they have no right to acquire any additional shares of Class A common stock that may be issued by AIR at a subsequent date.

The Class A common stock is traded on the New York Stock Exchange, or NYSE, under the symbol “AIRC.” Computershare Trust Company, N.A. serves as transfer agent and registrar of the Class A common stock.

Preferred Stock

Under its charter, AIR’s Board of Directors may from time to time establish and cause AIR to issue one or more classes or series of preferred stock and set the terms, preferences, conversion, or other rights, voting powers, restrictions, limitations as to dividends, or other distributions, qualifications, or terms or conditions of redemption of such classes or series. Accordingly, AIR’s Board of Directors, without stockholder approval, may issue preferred stock with voting, conversion, or other rights that could adversely affect the voting power and other rights of the holders of Class A common stock. Preferred stock could be issued quickly with terms calculated to delay or prevent a change of control or make removal of management more difficult. Additionally, the issuance of preferred stock may have the effect of decreasing the market price of AIR’s Class A common stock, may adversely affect the voting and other rights of the holders of AIR’s Class A common stock, and could have the effect of delaying, deferring, or preventing a change of control of AIR or other corporate action.

AIR’s charter authorizes the issuance of up to 1,000,000 shares of AIR’s Class A preferred stock, par value $0.01 per share. At December 31, 2020, AIR had issued 20 shares of Class A preferred stock with an aggregate liquidation preference of $2 million. The Class A preferred stock ranks senior to the Class A common stock with respect to the 

 

 

payment of dividends and distributions upon liquidation, dissolution or winding up. The Class A preferred stock will entitle the holders thereof to cumulative cash dividends payable quarterly in an amount of 8.5% per annum for 4 years, which rate will increase by 50 bps per annum in each of years 5, 6, and 7 after the issuance, and by 25 bps per annum in each of years 8 through 27, after which time the annual dividend rate will remain 15%. AIR may, at its option at any time on or after the fifth anniversary of the issue date, redeem the Class A preferred stock at any time in whole, or from time to time in part, at a price per share (the “Preferred Stock Redemption Price”) equal to the liquidation preference, plus any accrued but unpaid dividends to, but excluding, the date of redemption. Substantially concurrently with the occurrence of a Change of Control (as defined in AIR’s charter), AIR must redeem all of the outstanding shares of Class A preferred stock for cash at a price per share equal to the Preferred Stock Redemption Price. Except as described above, the shares of Class A preferred stock have no stated maturity, are not subject to any sinking fund and will remain outstanding indefinitely. Holders of shares of Class A preferred stock generally do not have any voting rights. However, certain material adverse changes to the terms of the Class A preferred stock cannot be made without the affirmative vote of at least 66 2/3% of the outstanding shares of Class A preferred stock.

 

The transfer agent and registrar for each class or series of preferred stock will be designated by AIR’s Board of Directors.

 

Restrictions on Transfer an Ownership

For AIR to qualify as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, which is referred to herein as the Code, not more than 50% in value of its outstanding capital stock may be owned, directly or indirectly, by five or fewer individuals (as defined in the Code to include certain entities) during the last half of a taxable year, and the shares of capital stock must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year.Because AIR’s Board of Directors believes that it is essential for AIR to continue to qualify as a REIT and to provide additional protection for AIR’s stockholders in the event of certain transactions, AIR’s Board of Directors has adopted provisions of the charter restricting the acquisition of shares of Class A common stock.

Subject to certain exceptions specified in the charter, no holder may beneficially or constructively own, or be deemed to own by virtue of the attribution rules in the Code and Rule 13d-3 under the Securities Exchange Act of 1934, or Exchange Act, more than 8.7%, by value or number of shares, whichever is more restrictive, of the outstanding shares of AIR’s Class A common stock (which restriction is referred to herein as the “common stock ownership limit”), or 8.7% in aggregate value of the outstanding shares of all classes and series of AIR’s capital stock, including AIR’s Class A common stock and preferred stock (which restriction is referred to herein as the “aggregate stock ownership limit”). For purposes of calculating the amount of stock owned by a given individual, the individual’s Class A common stock and interests in the AIR Operating Partnership are aggregated. Under certain conditions, AIR’s Board of Directors may waive the ownership limits.

In addition to the ownership limits described above, AIR’s charter will prohibit any person from (i) beneficially or constructively owning shares of AIR capital stock that would result in AIR being “closely held” under section 856(h) of the Code (ii) transferring shares of AIR capital stock if such transfer would result in shares of AIR’s capital stock being beneficially owned by fewer than 100 persons (determined without reference to any rules of attribution) AIR’s capital stock being beneficially owned by fewer than 100 persons (determined without reference to any rules of attribution); (iii) beneficially or constructively owning shares of AIR stock to the extent such beneficial or constructive ownership in a tenant of AIR’s real property that is described in Section 856(d)(2)(B) of the Code if the income derived by AIR from such tenant would cause AIR to fail to satisfy any of the gross income requirements of Section 856(c) of the Code; (iv) beneficially or constructively owning shares of AIR capital stock if such ownership would result in AIR’s failing to qualify as a REIT; and (v) beneficially or constructively owning shares of stock to the extent such beneficial ownership of stock would result in AIR failing to qualify as a “domestically controlled qualified investment entity” within the meaning of section 897(h) of the Code. These restrictions together are referred to herein as the “ownership limits.” 

AIR’s Board of Directors may, in its sole discretion, exempt a person from the ownership limits and certain other limits on the ownership of its capital stock described above, and may establish a different limit on ownership for any 

 

 

 

such person. However, in no event may the 15% ownership limitation applicable to Mr. Considine be waived In order to be considered by the Board of Directors for exemption or a different limit on ownership, a person must make such representations and undertakings as are reasonably necessary to ascertain that such person’s beneficial or constructive ownership of AIR’s capital stock will not jeopardize AIR’s ability to qualify as a REIT under the Code and must agree that any violation or attempted violation of such representations or undertakings (or other action that is contrary to the ownership limits or the other limits on ownership of AIR’s capital stock described above) will result in the shares of capital stock being automatically transferred to a trust as described below. As a condition of its waiver, the Board of Directors may require an opinion of counsel or IRS ruling satisfactory to the Board of Directors with respect to AIR’s qualification as a REIT and may impose such other conditions as it deems appropriate in connection with the granting of the exemption or a different limit on ownership. 

In connection with the waiver of the ownership limits or at any other time, AIR’s Board of Directors may, in its sole discretion, from time to time increase the ownership limits for one or more persons and decrease the ownership limits for all other person. Reduced ownership limits will not apply to any person whose percentage ownership of the total outstanding shares of AIR’s Class A common stock or of the total outstanding shares of all classes and series of AIR’s capital stock, as applicable, is in excess of such decreased ownership limits until such time as such person’s percentage of total outstanding shares of AIR’s Class A common stock or of the total outstanding shares of all classes and series of AIR’s capital stock, as applicable, equals or falls below the decreased ownership limits. However, any further acquisition of shares of AIR’s Class A common stock or capital stock, as applicable, in excess of such percentage ownership of the total outstanding shares of AIR’s Class A common stock or of the total outstanding shares of all classes and series of AIR’s capital stock would be in violation of the ownership limits.

As a condition of such waiver, the AIR Board of Directors may require opinions of counsel satisfactory to it or an undertaking from the applicant with respect to preserving the REIT status of AIR. If shares of capital stock in excess of the ownership limits, or shares of Class A common stock that would cause the REIT to be beneficially owned by fewer than 100 persons, or that would result in AIR being “closely held” within the meaning of Section 856(h) of the Code, or that would otherwise result in AIR failing to qualify as a REIT or failing to qualify as a “domestically controlled qualified investment entity” within the meaning of section 897(h) of the Code, are issued or transferred to any person, such issuance or transfer shall be null and void to the intended transferee, and the intended transferee would acquire no rights to the stock. Shares of capital stock transferred in excess of the ownership limits or other applicable limitations will automatically be transferred to a trust for the exclusive benefit of one or more qualifying charitable organizations to be designated by AIR. Shares transferred to such trust will remain outstanding, and the trustee of the trust will have all voting and dividend rights pertaining to such shares. The trustee of such trust may transfer such shares to a person whose ownership of such shares does not violate the ownership limits or other applicable limitation. Upon a sale of such shares by the trustee, the interest of the charitable beneficiary will  terminate, and the sales proceeds would be paid, first, to the original intended transferee, to the extent of the lesser of (1) such transferee’s original purchase price (or the market value of such shares on the date of the violative transfer if purportedly acquired by gift or devise) and (2) the price received by the trustee, and, second, any remainder to the charitable beneficiary. In addition, shares of stock held in such trust are purchasable by AIR for a 90-day period at a price equal to the lesser of the price paid for the stock by the original intended transferee (or the original market value of such shares if purportedly acquired by gift or devise) and the market price for the stock on the date that AIR determines to purchase the stock. The 90-day period commences on the date of the violative transfer or the date that AIR’s Board of Directors determines in good faith that a violative transfer has occurred, whichever is later. All certificates representing shares of capital stock bear a legend referring to the restrictions described above.

Any person who acquires or attempts or intends to acquire beneficial or constructive ownership of shares of AIR’s capital stock that will or may violate the foregoing restrictions on transferability and ownership will be required to give notice to AIR immediately and provide AIR with such other information as it may request to determine the effect, if any, of such transfer on AIR's qualification as a REIT and to ensure compliance with the ownership limits.

In addition to the foregoing, if AIR's Board of Directors determines that a proposed or purported transfer would violate the restrictions on ownership and transfer of AIR’s capital stock set forth in AIR's charter, the Board of Directors may take such action as it deems advisable to refuse to give effect to or to prevent such violation, including but not limited to, causing AIR to repurchase shares of its capital stock, refusing to give effect to the transfer on its books or instituting proceedings to enjoin the transfer.

 

 

 

All persons who own, directly or by virtue of the attribution provisions of the Code and Rule 13d-3 under the Exchange Act, more than a specified percentage of the outstanding shares of capital stock must file a written statement or an affidavit with AIR containing the information specified in the AIR charter within 30 days after January 1 of each year. In addition, each stockholder shall upon demand be required to disclose to AIR in writing such information with respect to the direct, indirect and constructive ownership of shares as AIR’s Board of Directors deems appropriate or necessary to comply with the provisions of the Code applicable to a REIT or to comply with the requirements of any taxing authority or governmental agency.

The restrictions on ownership and transfer of capital stock described above could delay, defer or prevent a transaction or a change in control that might involve a premium price for AIR’s Class A common stock or otherwise be in the best interests of AIR’s stockholders.

The restrictions on transfer and ownership described above and the other provisions described below, along with other provisions of the MGCL, alone or in combination, could have the effect of delaying, deferring or preventing a proxy contest, tender offer, merger, or other change in control of AIR that might involve a premium price for shares of AIR Class A common stock or otherwise be in the best interest of AIR’s stockholders, and could increase the difficulty of consummating any offer.

Amendments to AIR’s Charter and Bylaws and Approval of Extraordinary Actions

Under Maryland law, a Maryland corporation generally cannot amend its charter, merge, consolidate, sell all or substantially all of its assets, engage in a statutory share exchange or dissolve unless the action is advised by the board of directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter unless a lesser percentage (but not less than a majority of the votes entitled to be cast on the matter) is set forth in the corporation’s charter. AIR’s charter provides for approval of these matters by the affirmative vote of stockholders entitled to cast a majority of the votes entitled to be cast on such matter, except that the affirmative vote of stockholders holding at least two-thirds of the shares entitled to vote on such matter is required to amend the provisions of AIR’s charter relating to the removal of directors, which also requires two-thirds of all votes entitled to be cast on the matter, and to amend the provisions of AIR’s charter relating to the vote required to amend the removal provisions. AIR’s Board of Directors has the exclusive power to adopt, alter or repeal any provision of AIR’s bylaws or to make new bylaws.

Maryland law permits a Maryland corporation to transfer all or substantially all of its assets without the approval of the stockholders of the corporation to one or more persons if all of the equity interests of the person or persons are owned, directly or indirectly, by the corporation.

 

Classified Board

AIR’s charter provides that AIR’s Board of Directors shall be divided into three classes. The three classes are denominated as Class I, Class II, and Class III. Class I will serve until the 2021 annual meeting of AIR’s stockholders, at which annual meeting such Class will be elected to a term expiring at the 2022 annual meeting of AIR’s stockholders. Class II and Class III will serve until the 2022 annual meeting of AIR’s stockholders. Commencing with the 2022 annual meeting of AIR’s stockholders, AIR’s Board of Directors will no longer be classified, and each director shall be elected annually for a term of one year expiring at the next succeeding annual meeting. Under the classified board provisions, it would take at least two elections of directors for any individual or group to gain control of AIR’s Board of Directors. Accordingly, these provisions could discourage a third party from initiating a proxy contest, making a tender offer, or otherwise attempting to gain control of AIR.

 

 

 

Removal of Directors

AIR’s charter provides that AIR’s directors may be removed only for cause, as defined in AIR’s charter, and then only by at least two-thirds of the votes entitled to be cast generally in the election of directors.

Size of Board and Vacancies

AIR’s amended and restated bylaws provide that AIR’s Board of Directors shall consist of not less than three nor greater than nine directors, the exact number of which shall be fixed exclusively by the Board of Directors. Any vacancies created in the Board of Directors resulting from any increase in the authorized number of directors or the death, resignation, retirement, disqualification, removal from office, or other cause will be filled by a majority of the directors then in office, even if the remaining directors do not constitute a quorum. Any director elected by the Board of Directors to fill a vacancy will hold office for the remainder of the full term of the class of directors in which the vacancy has occurred and until his or her successor is elected and qualifies.

Business Combinations

Under Maryland law, certain “business combinations” (including a merger, consolidation, share exchange or, in certain circumstances, an asset transfer or issuance or transfer or reclassification of equity securities) between a Maryland corporation and any person who beneficially owns, directly or indirectly, (1) 10% or more of the voting power of the corporation’s shares or (2) is an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding voting stock of the corporation (an “Interested Stockholder”), or an affiliate or associate thereof, are prohibited for five years after the most recent date on which the Interested Stockholder became an Interested Stockholder. Thereafter, any such business combination must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least (a) 80% of the votes entitled to be cast by holders of outstanding voting shares of the corporation, voting together as a single voting group, and (b) two-thirds of the votes entitled to be cast by holders of outstanding voting shares of the corporation other than shares held by the Interested Stockholder or an affiliate or associate of the Interested Stockholder with whom the business combination is to be effected, unless, among other conditions, the corporation’s stockholders receive a specified minimum price for their shares and the consideration is received in cash or in the same form as previously paid by the Interested Stockholder for its shares. For purposes of determining whether a person is an Interested Stockholder of AIR, interests in AIR OP that are held by limited partners other than AIR or “LP Units” will be treated as beneficial ownership of the shares of common stock that may be issued in exchange for the LP Units when such LP Units are tendered for redemption. The Maryland business combination statute could have the effect of discouraging offers to acquire AIR and of increasing the difficulty of consummating any such offer. These provisions of Maryland law do not apply, however, to business combinations that are approved or exempted by the board of directors of the corporation prior to the time that the Interested Stockholder becomes an Interested Stockholder. The AIR Board of Directors does not immediately intend to pass such a resolution.

 

Control Share Acquisitions

Maryland law provides that “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter, excluding shares of stock owned by the acquiror, by an officer of the corporation or by directors who are employees of the corporation. “Control shares” are voting shares of stock that, if aggregated with all other shares of stock previously acquired by that person, would entitle the acquiror to exercise voting power, except solely by virtue of a revocable proxy, in electing directors within one of the following ranges of voting power:

 

	
 
	
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one-tenth or more but less than one-third;

 

	
 
	
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one-third or more but less than a majority; or

 

	
 
	
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a majority or more of all voting power.

Control shares do not generally include shares the acquiring person is then entitled to vote that were acquired in good faith and as a result of having previously obtained stockholder approval. For purposes of determining whether a person or entity is an Interested Stockholder of AIR, ownership of LP Units will be treated as beneficial ownership 

 

 

 

of the shares of Class A common stock that may be issued in exchange for the LP Units when such LP Units are tendered for redemption.

A “control share acquisition” means the acquisition, directly or indirectly, of control shares, subject to certain exceptions. A person who has made or proposes to make a control share acquisition, upon the satisfaction of certain conditions (including delivery of an “acquiring person statement” and a written undertaking to pay certain of the corporation’s expenses of a special meeting), may compel the corporation’s board of directors to call a special meeting of stockholders, to be held within 50 days of demand, to consider the voting rights of the shares. If no request for a meeting is made, the corporation may itself, at its option, present the question at any stockholders meeting.

If voting rights are not approved at the meeting or if the acquiring person does not deliver an “acquiring person statement” as required by the statute, then, subject to certain conditions and limitations, the corporation may, at its option, redeem any or all of the control shares (except those for which voting rights have previously been approved) for fair value, determined without regard to the absence of voting rights, as of the date of the last control share acquisition or of any meeting of stockholders at which the voting rights of such shares were considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquiror becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of the appraisal rights may not be less than the highest price per share paid by the acquirer in the control share acquisition, and certain limitations and restrictions otherwise applicable to the exercise of dissenters’ rights do not apply in the context of a control share acquisition.

The control share acquisition statute does not apply to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction, or to acquisitions approved or exempted by the corporation’s charter or bylaws prior to the control share acquisition. No such exemption appears in AIR’s charter or bylaws. The control share acquisition statute could have the effect of discouraging offers to acquire AIR and of increasing the difficulty of consummating any such offer.

Unsolicited Takeovers

Under Maryland law, a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors may elect to be subject to certain statutory provisions relating to unsolicited takeovers that, among other things, would automatically classify the board into three classes with staggered terms of three years each and vest in the board the exclusive right to determine the number of directors and the exclusive right, by the affirmative vote of a majority, of the remaining directors to fill vacancies on the board, even if the remaining directors do not constitute a quorum. These statutory provisions relating to unsolicited takeovers also provide that any director elected to fill a vacancy shall hold office for the remainder of the full term of the class of directors in which the vacancy occurred, rather than the next annual meeting of directors as would otherwise be the case, and until his successor is elected and qualified.

Neither AIR’s charter nor AIR’s bylaws provides that AIR is subject to any of the foregoing statutory provisions, although its charter and bylaws contain provisions that have similar effects as the foregoing statutory provisions. For example, AIR’s charter provides that its Board of Directors will initially be divided into three classes, denominated as Class I, Class II and Class III, with Class I serving until the 2021 annual meeting of AIR’s stockholders (at which meeting it will be elected for a term expiring at the next annual meeting of AIR’s stockholders) and Class II and Class III serving until the 2022 annual meeting of AIR’s stockholders; commencing with the 2022 annual meeting of AIR’s stockholders, AIR’s Board of Directors will no longer be classified, and each director shall be elected annually for a term of one year expiring at the next succeeding annual meeting. The classification and staggered terms of office of AIR’s directors would make it more difficult for a third party to gain control of AIR’s Board of Directors prior to the 2022 annual meeting of AIR’s stockholders. However, following the 2022 annual meeting of AIR’s stockholders, AIR shall be prohibited from electing to be subject to the foregoing statutory provisions.

 

 

 

Dissolution of AIR

AIR’s dissolution must be approved by AIR’s Board of Directors by a majority vote of the entire Board of Directors and by AIR’s stockholders by the affirmative vote of a majority of all the votes entitled to be cast by AIR’s stockholders on the matter.

Advance Notice of Director Nominations and New Business; Procedures of Special Meetings Requested by Stockholders

AIR’s bylaws provide that nominations of persons for election to the Board of Directors and the proposal of business to be considered by stockholders at the annual or special meeting of stockholders may be made only:

 

	
 
	
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pursuant to AIR’s notice of the meeting;

 

	
 
	
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by or at the direction of the Board of Directors; or

 

	
 
	
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by a stockholder who was a stockholder at the time the notice of meeting was given, and at the time of the meeting, and is entitled to vote at the meeting, and who has complied with the advance notice procedures, including the minimum time period, described in the bylaws.

AIR’s bylaws also provide that only the business specified in its notice of meeting may be brought before a special meeting of stockholders. AIR’s bylaws provide that AIR’s stockholders have the right to call a special meeting only upon the written request of the stockholders entitled to cast not less than a majority of all the votes entitled to be cast on the business proposed to be transacted at such meeting.

Proxy Access

AIR’s bylaws permit any stockholder or group of up to 20 stockholders (counting as one stockholder, for this purpose, any two or more funds that are part of the same “qualifying fund group” (as defined in the bylaws of Apartment Investment and Management Company (“Aimco”))) that (i) has owned continuously for at least three years a number of shares of Aimco Common Stock that represents at least 3% of outstanding Aimco Common Stock as of the date the notice of proxy access nomination is delivered to or mailed and received by the Secretary of Aimco in accordance with AIR’s bylaws (the “Required Shares”), (ii) continues to own the Required Shares through the date of the annual meeting, and (iii) satisfies all of the other requirements of, and complies with all applicable procedures set forth in AIR’s bylaws, to nominate up to a specified number of director nominees in AIR’s proxy materials for an annual meeting of stockholders. A nominating stockholder is considered to own only those outstanding shares of Aimco Common Stock as to which the stockholder possesses both (i) the full voting and investment rights pertaining to the shares and (ii) the full economic interest in (including the opportunity for profit from and risk of loss on) such shares. Under this provision, generally borrowed or hedged shares do not count as “owned” shares. Further, to the extent not otherwise excluded pursuant to this definition of ownership, a nominating stockholder’s “short position” as defined in Rule 14e-4 under the Exchange Act is deducted from the shares otherwise “owned.” If a group of stockholders is aggregating its stockholdings in order to meet the 3% ownership requirement, the ownership of the group will be determined by aggregating the lowest number of shares continuously owned by each member during the three-year holding period.

The maximum number of stockholder nominees permitted under the proxy access provisions of AIR’s bylaws shall not exceed the greater of two or 20% of the directors in office as of the last day a notice of nomination may be timely received. If the 20% calculation does not result in a whole number, the maximum number of stockholder nominees is the closest whole number below 20%. If one or more vacancies occurs for any reason after the nomination deadline and AIR’s Board of Directors decides to reduce the size of AIR’s Board of Directors in connection therewith, the 20% calculation will be calculated based on the number of directors in office as so reduced. Stockholder-nominated candidates whose nomination is withdrawn or whom the Board of Directors determines to include in the proxy materials as board-nominated candidates will be counted against the 20% maximum. In addition, any director in office as of the nomination deadline who was included in AIR’s proxy materials as a stockholder nominee for either of the two preceding annual meetings and whom AIR’s Board of Directors decides to renominate for election to the Board of Directors also will be counted against the 20% maximum.

 

 

 

Notice of a nomination pursuant to the proxy access provisions of AIR’s bylaws must be received no earlier than 150 days and no later than 120 days before the anniversary of the date that AIR distributed its proxy statement for the previous year’s annual meeting of stockholders.

A stockholder nominee will not be eligible for inclusion in AIR’s proxy materials if any stockholder has nominated a person pursuant to the advance notice provision of AIR’s bylaws, if the nominee would not be independent, if the nominee’s election would cause AIR to violate its bylaws, its charter or any applicable listing standards, laws, rules or regulations, if the nominee is or has been an officer or director of a competitor, as defined in Section 8 of the Clayton Antitrust Act of 1914, within the past three years, if the nominee is a named subject of a pending criminal proceeding or has been convicted in such a criminal proceeding within the past 10 years, if the nominee is subject to any order of the type specified in Rule 506(d) of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or if the nominee or the stockholder who nominated him or her has provided false and misleading information to AIR or otherwise breached any of its or their obligations, representations or agreements under the proxy access provisions of AIR’s bylaws. Stockholder nominees who are included in AIR’s proxy materials but subsequently withdraw from or become ineligible for election at the meeting or do not receive at least 10% of the votes cast in the election will be ineligible for nomination under the proxy access provisions of AIR’s bylaws for the next two years. A nomination made under the proxy access provisions of AIR’s bylaws will be disregarded at the annual meeting under certain circumstances described in AIR’s bylaws.

 

Limitation of Liability and Indemnification of Directors and Officers

Maryland law permits a Maryland corporation to include in its charter a provision that limits the liability of its directors and officers to the corporation and its stockholders for money damages, except for liability resulting from (1) actual receipt of an improper benefit or profit in money, property or services or (2) active or deliberate dishonesty that is established by a final judgment and that is material to the cause of action. AIR’s charter contains a provision that limits, to the maximum extent permitted by Maryland law, the liability of AIR’s directors and officers to AIR and its stockholders for money damages. This provision does not limit AIR’s right or that of its stockholders to obtain equitable relief, such as injunction or rescission.

AIR’s charter and bylaws obligate it, to the maximum extent permitted by Maryland law, to indemnify and, without requiring a preliminary determination of the ultimate entitlement to indemnification, to pay or reimburse reasonable expenses before a final disposition of a proceeding to (1) any individual who is a present or former director or officer of AIR and who is made, or threatened to be made, a party to, or witness in, the proceeding by reason of his or her service in that capacity; or (2) any individual who, while one or AIR’s directors or officers and at AIR’s request, serves or has served as a director, officer, partner, member, manager, trustee, employee or agent of another corporation, REIT, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise, and who is made or threatened to be made a party to, or witness in, the proceeding by reason of his or her service in that capacity.

AIR’s charter and bylaws authorize AIR, with the approval of its Board of Directors, to provide indemnification and advancement of expenses to its agents and employees.

Maryland law requires a Maryland corporation (unless otherwise provided in its charter, which AIR’s charter does not) to indemnify a director or officer who has been successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his or her service in that capacity. Maryland law permits a Maryland corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements, and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made or threatened to be made a party by reason of their service in that capacity unless it is established that:

 

	
 
	
•
	
 
	
the act or omission of the director or officer was material to the matter giving rise to the proceeding and (1) was committed in bad faith or (2) was the result of active and deliberate dishonesty;

 

	
 
	
•
	
 
	
the director or officer actually received an improper personal benefit in money, property or services; or

 

	
 
	
•
	
 
	
in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful.

 

 

 

 

Under the MGCL, AIR may not indemnify a director or officer in a suit by AIR or in its right in which the director or officer was adjudged liable to AIR or in a suit in which the director or officer was adjudged liable on the basis that personal benefit was improperly received. A court may order indemnification if it determines that the director or officer is fairly and reasonably entitled to indemnification, even though the director or officer did not meet the prescribed standard of conduct or was adjudged liable on the basis that personal benefit was improperly received. However, indemnification for an adverse judgment in a suit by the corporation or in its right, or for a judgment of liability on the basis that personal benefit was improperly received, is limited to expenses.

In addition, Maryland law permits a Maryland corporation to advance reasonable expenses to a director or officer upon receipt of (1) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification and (2) a written undertaking by him or her, or on his or her behalf, to repay the amount paid or reimbursed if it is ultimately determined that the standard of conduct was not met.

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