Document:

exhibit10_3.htm

     

    Exhibit
10.3

     

    
       

      

       

      CCH
II, LLC,

      CCH
II CAPITAL CORP.

       

      EXCHANGE
AND REGISTRATION RIGHTS AGREEMENT

       

      EXCHANGE
AND REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as
of November 30, 2009, by and among CCH II, LLC, a Delaware limited liability
company, and CCH II Capital Corp., a Delaware corporation (collectively, the
“Issuers”) and
the undersigned Investors (as defined below).

       

      WHEREAS:

       

      Where as
the Issuers propose to issue 13.50% Senior Notes due 2016 (the “Notes”) pursuant to,
and upon the terms set forth in, the Plan of Reorganization of Charter
Communications, Inc, its subsidiaries, and Charter Investment, Inc. (the “Plan”) under chapter
11 of Title 11 of the United States Code. In accordance with the Plan, the
Issuers, jointly and severally, agree for the benefit of the Investors, as
follows:

       

      NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Issuers and each of the holders hereby agree
as follows:

       

      1. Certain
Definitions.  For purposes of this Exchange and Registration
Rights Agreement, the following terms shall have the following respective
meanings:

       

      “Agreement” shall mean
this Exchange and Registration Rights Agreement.

       

      “Base Interest” shall
mean the interest that would otherwise accrue on the Notes under the terms
thereof and the Indenture, without giving effect to the provisions of this
Exchange and Registration Rights Agreement.

       

      “beneficial owner” has
the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the
Exchange Act, except that in calculating the beneficial ownership of any
particular “person” (as that term is used in Section 13(d)(3) of the Exchange
Act), such “person” will be deemed to have beneficial ownership of all
securities that such “person” has the right to acquire by conversion or exercise
of other securities, whether such right is currently exercisable or is
exercisable only upon the occurrence of a subsequent condition. The term
“beneficially own” has a corresponding meaning.

       

      “broker-dealer” shall
mean any broker or dealer registered with the Commission under the Exchange
Act.

       

      “Certification” shall
have the meaning assigned thereto in Section 7(p).

       

      
        
          
          

        

        
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      “Closing Date” shall
mean the date on which the Notes are initially issued.

       

      “Commission” shall
mean the United States Securities and Exchange Commission, or any other federal
agency at the time administering the Exchange Act or the Securities Act,
whichever is the relevant statute for the particular purpose.

       

      “Definitive Notes”
shall have the meaning assigned to such term in the Indenture.

       

      “Disclosure Package”
means, with respect to any offering of securities, (i) the preliminary
prospectus, (ii) each Free Writing Prospectus and (iii) all other information,
in each case, that is deemed, under Rule 159 promulgated under the Securities
Act, to have been conveyed to purchasers of securities at the time of sale of
such securities (including a contract of sale).

       

      “Effective Time” in
with respect to any Registration Statement means the time and date as of which
the Commission declares such Registration Statement effective or as of which
such Registration Statement otherwise becomes effective.

       

      “Electing Holder”
shall mean any holder of Registrable Securities that has returned a completed
and signed Notice and Questionnaire to the Issuers in accordance with Section 3(e)(ii) hereof.

       

      “Exchange Act” shall
mean the Securities Exchange Act of 1934, or any successor thereto, and the
rules, regulations and forms promulgated thereunder, all as the same shall be
amended from time to time.

       

      “Exchange Notes” shall
have the meaning assigned thereto in Section 2(a)
hereof.

       

      “Exchange Offer” shall
have the meaning assigned thereto in Section 2(a)
hereof.

       

      “Exchange Offer
Registration” shall have the meaning assigned thereto in
Section 3(c) hereof.

       

      “Exchange Offer Registration
Statement” shall have the meaning assigned thereto in Section 2(a) hereof.

       

       “Free Writing
Prospectus” means any “free writing prospectus” as defined in Rule 405
promulgated under the Securities Act.

       

      “holder” shall mean,
unless the context otherwise indicates, each of the holders who acquired
Registrable Securities from the Issuers and any transferees thereof, in each
case for so long as such person is a registered holder of any Registrable
Securities.

       

      “Holder Free Writing
Prospectus” means each Free Writing Prospectus prepared by or on behalf
of the relevant Holder or used or referred to by such Holder in connection with
the offering of Registrable Securities.

       

      
        
          
          

        

        
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      “Indenture” shall mean
the indenture governing the Notes, dated as of the Closing Date.

       

      “Notes” shall have the
meaning set forth in the preamble hereto.  Unless the context
otherwise requires, all references to a “Note” or “Notes” include any related
Note Guarantee.

       

      “Note Guarantee”
means, in respect of any Notes or Exchange Notes, the related guarantee thereof
by a Parent.

       

      “Notice and
Questionnaire” means a Notice of Registration Statement and Selling
Securityholder Questionnaire substantially in the form of Exhibit B
hereto.

       

      “Parent” means Charter
Communications, Inc. or any direct or indirect subsidiary of the foregoing, 100%
of the voting stock of which is owned directly or indirectly by Charter
Communications, Inc.

       

      “Person” shall mean a
corporation, association, partnership, organization, limited liability company,
business, individual, government or political subdivision thereof or
governmental agency.

       

      “Registrable
Securities” shall mean the Notes and the Exchange Notes; provided, however, that a
Note or Exchange Note shall cease to be a Registrable Security when (i) in the
circumstances contemplated by Section 2(a) hereof,
such Exchange Note has been issued in exchange for a Note to a holder other than
a Restricted Holder in the Exchange Offer as contemplated in Section 2(a) hereof; (ii) in the circumstances contemplated by
Section 2(b) hereof, a Shelf Registration Statement
registering such Note or Exchange Note under the Securities Act has been
declared or becomes effective and such Note or Exchange Note has been sold or
otherwise transferred by the holder thereof pursuant to and in a manner
contemplated by such effective Shelf Registration Statement; (iii) such Note or
Exchange Note is sold pursuant to Rule 144 under circumstances in which any
legend borne by such Note or Exchange Note relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed by
the Issuers or pursuant to the Indenture; (iv) after the earlier of (a) the date
the Exchange Offer is consummated, and (b) the date that is one (1) year after
the date of this Agreement, the holder of such Note or Exchange Note, as
applicable, is eligible to dispose of all of the Notes and Exchange Notes held
by such holder within a three (3) month period pursuant to Rule 144(e) (or any
successor provision thereto); or (v) such Note or Exchange Note shall cease to
be outstanding.

       

      “Registration Default”
shall have the meaning assigned thereto in Section 2(c) hereof.

       

      “Registration Default
Period” shall have the meaning assigned thereto in Section 2(c)
thereof.

       

      “Registration
Expenses” shall have the meaning assigned thereto in Section 4 hereof.

       

      
        
          
          

        

        
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      “Registration
Statement” means any registration statement filed as contemplated
hereunder.

       

      “Restricted Holder”
shall mean (i) a holder that is an affiliate of the Issuers within the meaning
of Rule 405 or Rule 144, (ii) a holder who acquires Exchange Notes outside the
ordinary course of such holder’s business, (iii) a holder who has arrangements
or understandings with any person to participate in the Exchange Offer for the
purpose of distributing Exchange Notes and (iv) a holder that is a
broker-dealer, but only with respect to Exchange Notes received by such
broker-dealer pursuant to the Exchange Offer in exchange for Registrable
Securities acquired by the broker-dealer directly from the Issuers.

       

      “Rule 144,” “Rule 405” and “Rule 415” shall mean,
in each case, such rule promulgated under the Securities Act (or any successor
provision), as the same shall be amended from time to time.

       

      “Securities Act” shall
mean the Securities Act of 1933, or any successor thereto, and the rules,
regulations and forms promulgated thereunder, all as the same shall be amended
from time to time.

       

      “Shelf Registration”
shall have the meaning assigned thereto in Section 2(b) hereof.

       

      “Shelf Registration
Statement” shall have the meaning assigned thereto in Section 2(b) hereof.

       

      “Special Interest”
shall have the meaning assigned thereto in Section 2(c) hereof.

       

      “Suspension Period”
shall have the meaning assigned thereto in Section 3(f) hereof.

       

      “Transfer Restricted
Notes” shall have the meaning assigned thereto in Section 2(c)
hereof.

       

      “Trigger Date” means
the effective date of the Plan.

       

      “Trust Indenture Act”
shall mean the Trust Indenture Act of 1939, or any successor thereto, and the
rules, regulations and forms promulgated thereunder, all as the same shall be
amended from time to time.

       

      Unless
the context otherwise requires, any reference herein to a “Section” or “clause”
refers to a Section or clause, as the case may be, of this Exchange and
Registration Rights Agreement, and the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Exchange and Registration Rights
Agreement as a whole and not to any particular Section or other
subdivision.

       

      For the
avoidance of doubt, the term “Notes” as used herein refers only to the Notes
issued pursuant to Section 4(2) of the Securities Act.

       

      
        
          
          

        

        
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      2. Registration Under the
Securities Act.

       

      (a) Except as
set forth in Section 2(b) below, the Issuers shall
use their commercially reasonable efforts to file under the Securities Act, on
or prior to January 15, 2010, a Registration Statement relating to an offer to
exchange (such registration statement, the “Exchange Offer Registration
Statement”, and such offer, the “Exchange Offer”) any
and all of the Notes that are Definitive Notes at the time the Exchange Offer
Registration Statement is declared effective by the Commission, for a like
aggregate principal amount of notes issued by the Issuers, which notes are
substantially identical in all material respects to the Notes (and are entitled
to the benefits of the Indenture which has been qualified under the Trust
Indenture Act), except that they have been registered pursuant to an effective
registration statement under the Securities Act and do not contain provisions
for the additional interest contemplated in Section 2(c) below (such notes,
collectively, the “Exchange
Notes”).  Unless the context otherwise requires, all references
to an “Exchange Note” or “Exchange Notes” include any related Note
Guarantee.  The Issuers agree to use their commercially reasonable
efforts to cause the Exchange Offer Registration Statement to become or be
declared effective under the Securities Act as soon as practicable but in no
event later than June 30, 2010.  The Exchange Offer will be registered
under the Securities Act on the appropriate form and will comply with the
Exchange Act.  The Issuers further agree to use their commercially
reasonable efforts to complete the Exchange Offer as soon as practicable but in
no event later than sixty (60) business days (or longer, if required by the
federal securities laws), after such Registration Statement has become
effective, hold the Exchange Offer open for at least twenty (20) business days
(calculated in accordance with the Exchange Act) and exchange the Exchange Notes
for all Registrable Securities that have been properly tendered and not
withdrawn on or prior to the expiration of the Exchange Offer.  The
Exchange Offer will be deemed to have been completed only if the Exchange Notes
received by holders, other than Restricted Holders, in the Exchange Offer in
exchange for Registrable Securities are, upon receipt, transferable by each such
holder without restriction under the Securities Act and the Exchange Act and
without material restrictions under the blue sky or securities laws of a
substantial majority of the States of the United States of
America.  The Exchange Offer shall be deemed to have been completed
upon the earlier to occur of (i) the Issuers having exchanged the Exchange Notes
for all outstanding Registrable Securities pursuant to the Exchange Offer and
(ii) the Issuers having exchanged, pursuant to the Exchange Offer, Exchange
Notes for all Registrable Securities that have been properly tendered and not
withdrawn before the expiration of the Exchange Offer.  Within five
(5) business days following completion of the Exchange Offer, the Issuers shall
provide a copy of the Notice and Questionnaire to each holder of Exchange Notes
through the facilities of the Depository Trust Company, together with a notice
(x) stating that any holder of Exchange Notes that continues to hold Registrable
Securities has registration rights pursuant to Section 2(d) of this Agreement
and (y) containing instructions as to how such holder may exercise such
registration rights.

       

      (b) The
Issuers shall use their commercially reasonable efforts to, as soon as
practicable after the Trigger Date, but in no event later than June 30, 2010,
file a “shelf” registration statement providing for the registration of, and the
sale on a continuous or delayed basis by the holders of, all the Registrable
Securities, which Registrable Securities are held by Restricted Holders,
pursuant to Rule 415 or any similar rule that may be adopted by the Commission
(such filing, the “Shelf Registration”
and such Registration Statements, collectively, the “Shelf Registration
Statement”).  The Issuers agree to use their commercially
reasonable 

       

      
        
          
          

        

        
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        efforts
(x) to cause the Shelf Registration Statement to become or be declared effective
by the Commission as soon as practicable but in no event later than ninety (90)
days after such obligation to file arises and to keep such Shelf Registration
Statement continuously effective for a period ending at such time as there are
no longer any Registrable Securities outstanding; provided, however, that no
holder shall be entitled to be named as a selling securityholder in the Shelf
Registration Statement or to use the prospectus forming a part thereof for
resales of Registrable Securities unless such holder is an Electing Holder and a
Restricted Holder, and (y) after the Effective Time of the Shelf Registration
Statement, promptly upon the request of any holder of Registrable Securities
that is not then an Electing Holder, to take any action reasonably necessary to
enable such holder to use the prospectus forming a part thereof for resales of
Registrable Securities, including, without limitation, any action necessary to
identify such holder as a selling securityholder in the Shelf Registration
Statement; provided,
however, that nothing in this clause (y) shall relieve any such holder of
the obligation to return a completed and signed Notice and Questionnaire to the
Issuers in accordance with Section 3(e)(iii) hereof.  The Issuers
further agree to supplement or make amendments to the Shelf Registration
Statement, as and when required by the rules, regulations or instructions
applicable to the registration form used by the Issuers for such Shelf
Registration Statement or by the Securities Act for shelf registration, and the
Issuers agree to furnish to each Electing Holder copies of any such supplement
or amendment prior to its being used or promptly following its filing with the
Commission.

      

       

      (c) In the
event that (i) the Issuers have not filed the Exchange Offer Registration
Statement or Shelf Registration Statement on or before the date on which such
registration statement is required to be filed pursuant to Section 2(a) or 2(b),
respectively, or (ii) such Exchange Offer Registration Statement or Shelf
Registration Statement has not become effective or been declared effective by
the Commission on or before the date on which such registration statement is
required to become or be declared effective pursuant to Section 2(a) or 2(b),
respectively, or (iii) the Exchange Offer has not been consummated within sixty
(60) business days after the initial effective date of the Exchange Offer
Registration Statement (if the Exchange Offer is then required to be made) or
(iv) any Shelf Registration Statement required by Section 2(b) hereof is filed and becomes or is declared
effective but shall thereafter either be withdrawn by either of the Issuers or
shall become subject to an effective stop order issued pursuant to Section 8(d)
of the Securities Act suspending the effectiveness of such registration
statement (except as specifically permitted herein) without being succeeded
immediately by an additional registration statement filed and declared effective
(each such event referred to in clauses (i) through (iv), a “Registration Default”
and each period during which a Registration Default has occurred and is
continuing, a “Registration Default
Period”), then, as liquidated damages for such Registration Default,
subject to the provisions of Section 7(c), special interest (“Special Interest”),
in addition to the Base Interest, shall accrue on the aggregate principal amount
of the outstanding Transfer Restricted Notes (as defined below) affected by such
Registration Default at a per annum rate of 0.25% for the first ninety (90) days
of the Registration Default Period, and at a per annum rate of 0.50% thereafter
for the remaining portion of the Registration Default Period.  All
accrued Special Interest shall be paid in cash by the Issuers on each Interest
Payment Date (as defined in the Indenture).  Notwithstanding the
foregoing, a Registration Default shall not be deemed to have occurred as a
result of a failure to file or have declared effective an Exchange Offer
Registration Statement or as a result of a failure to consummate the Exchange
Offer if (x) on or prior to the time the Exchange Offer is completed (A)
existing law or Commission policy or interpretations are changed such that the

       

      
        
          
          

        

        
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        Exchange
Notes received by holders, other than Restricted Holders, in the Exchange Offer
in exchange for Registrable Securities are not or would not be, upon receipt,
transferable by each such holder without restriction under the Securities Act or
(B) the Commission does not permit the Exchange Offer to be consummated because
Registrable Securities have been registered on the Shelf Registration Statement
and (y) the Issuers are then in compliance with Section 2(d).  The
parties hereto agree that the Special Interest provided for in this Section 2(c)
constitutes a reasonable estimate of the damage that will be suffered by holders
of Registrable Securities by reason of the happening of any Registration
Default. Upon the occurrence of a Registration Default, the Issuers shall send a
notice to all holders stating that a Registration Default has occurred,
describing the nature of the Registration Default and stating that holders shall
have fifteen (15) business days to identify to the Issuers, including, without
limitation, through the use of a temporary CUSIP identification, such holder’s
Transfer Restricted Notes entitled to Special Interest.  Any holder
who holds Transfer Restricted Notes that does not identify itself to the Issuers
during the fifteen (15) business day period following such notice delivery
(which notice shall be deemed delivered once delivered through the facilities of
the Depository Trust Company) shall not be entitled to receive any Special
Interest with respect to the related Registration Default; provided, however, that after
any Interest Payment Date on which such holder did not receive Special Interest
related to such Registration Default, such holder shall be entitled to receive
Special Interest, if any, related to such Registration Default with respect to
future interest payment periods on future Interest Payment Dates if it
identifies itself to the Issuers as holding Transfer Restricted Notes entitled
to such Special Interest within fifteen (15) business days following any
Interest Payment Date on which it did not receive Special
Interest.  Notwithstanding the foregoing and anything in this
Agreement to the contrary, in the case of an event referred to in clause (ii)
above, a “Registration Default” shall be deemed not to have occurred so long as
the Issuers have used and are continuing to use their commercially reasonable
efforts to cause such Exchange Offer Registration Statement or Shelf
Registration Statement, as the case may be, to become or be declared
effective.  For purposes of this Agreement, “Transfer Restricted
Notes” shall mean, with respect to any Registration Default, any Notes or
Exchange Notes which have not ceased being Registrable Securities pursuant to
the definition thereof in Section 1 of this
Agreement.

      

       

      (d) If (i) on
or prior to the time the Exchange Offer is completed, (A) existing law or
Commission policy or interpretations are changed such that the Exchange Notes
received by holders, other than Restricted Holders, in the Exchange Offer in
exchange for Registrable Securities are not or would not be, upon receipt,
transferable by each such holder without restriction under the Securities Act or
(B) the Commission does not permit the Exchange Offer to be consummated because
Registrable Securities have been registered on the Shelf Registration Statement,
(ii) after completion of the Exchange Offer as contemplated by this Agreement,
one or more Restricted Holders give written notice to the Issuers that they hold
Exchange Notes that continue to be Registrable Securities, or (iii) the Exchange
Offer has not been completed by April 15, 2010, the Issuers shall use their
commercially reasonable efforts to (1) file a “shelf” Registration Statement on
the appropriate form (or amend the existing Shelf Registration Statement) to
register for resale on a delayed or continuous basis under Rule 415 any
Registrable Securities not already registered for resale under the Shelf
Registration Statement as soon as practicable, but in no event more than
forty-five (45) days after the occurrence of one of the events set forth in
clauses (i), (ii), or (iii) immediately above, and (2) have such Registration
Statement (or post effective amendment) be declared effective as soon as
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        event
more than one-hundred fifty (150) days after the occurrence of such event and
keep such Registration Statement (or post effective amendment) continuously
effective for a period ending at such time as there are no longer any
Registrable Securities outstanding; provided, however, that,
except as provided in the immediately following sentence, no holder shall be
entitled to be named as a selling securityholder in any such Registration
Statement (or post effective amendment) or to use the prospectus forming a part
thereof for resales of Registrable Securities unless such holder (x) is an
Electing Holder or (y) in the case of a post effective amendment, is at such
time already named as a selling securityholder in the Shelf Registration
Statement.  After the Effective Time of such Registration Statement
(or post effective amendment), promptly upon the request of any holder of
Registrable Securities that is not then an Electing Holder, the Issuers shall
take any action reasonably necessary to enable such holder to use the prospectus
forming a part thereof for resales of Registrable Securities, including, without
limitation, any action necessary to identify such holder as a selling
securityholder in the Shelf Registration Statement; provided, however, that
nothing in this sentence shall relieve any such holder of the obligation to
return a completed and signed Notice and Questionnaire to the Issuers in
accordance with Section 3(e)(iii) hereof.  The Issuers further agree
to supplement or make amendments to such Registration Statement (or post
effective amendment), as and when required by the rules, regulations or
instructions applicable to the registration form used by the Issuers for such
Registration Statement or by the Securities Act for shelf registration, and the
Issuers agree to furnish to each Electing Holder copies of any such supplement
or amendment prior to its being used or promptly following its filing with the
Commission.  With respect to any Registration Statement filed pursuant
to this Section 2(d), the Issuers shall comply with subparagraphs (ii) through
(xvi) of Section 3(e) as if such Registration Statement were a Shelf
Registration Statement.  With respect to the event described in (iii)
above, such registration shall be in lieu of conducting the Exchange Offer
contemplated by Section 2(a).

      

       

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

       

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

       

      3. Registration
Procedures.  If the Issuers file a Registration Statement
pursuant to Section 2(a) or Section 2(b), the following provisions shall
apply:

       

      (a) At or
before the Effective Time of the Exchange Offer or the Shelf Registration, as
the case may be, the Issuers shall cause the Indenture to be qualified under the
Trust Indenture Act if not already qualified.

       

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

       

      
        
          
          

        

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

       

      (i) prepare,
file with the Commission and have declared effective, within the time periods
specified in Section 2(a), an Exchange Offer Registration Statement on any form
which may be utilized by the Issuers and which shall permit the Exchange Offer
to be effected as contemplated by Section 2(a);

       

      (ii) as soon
as practicable, prepare and file with the Commission such amendments and
supplements to such Exchange Offer Registration Statement and the prospectus
included therein as may be necessary to effect and maintain the effectiveness of
such Exchange Offer Registration Statement for the periods and purposes
contemplated in Section 2(a) hereof and as may be
required by the applicable rules and regulations of the Commission and the
instructions applicable to the form of such Exchange Offer Registration
Statement; and

       

      (iii) promptly
notify the holders, and confirm such advice in writing, (A) when such Exchange
Offer Registration Statement or the prospectus included therein or any
prospectus amendment or supplement or post-effective amendment has been filed,
and, with respect to such Exchange Offer Registration Statement or any
post-effective amendment, when the same has become effective, (B) of any
comments by the Commission and by the blue sky or securities commissioner or
regulator of any state with respect thereto, or any request by the Commission
for amendments or supplements to such Exchange Offer Registration Statement or
prospectus or for additional information, (C) of the issuance by the Commission
of any stop order suspending the effectiveness of such Exchange Offer
Registration Statement or the initiation or, to the knowledge of the Issuers,
threatening of any proceedings for that purpose, (D) if at any time the
Representations and Warranties of the Issuers contemplated by Section 5 hereof
cease to be true and correct in all material respects, or (E) of the receipt by
the Issuers of any notification with respect to the suspension of the
qualification of the Exchange Notes for sale in any jurisdiction or the
initiation or, to the knowledge of the Issuers, threatening of any proceeding
for such purpose;

       

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

       

      (v) to the
extent necessary, use their commercially reasonable efforts to (A) register or
qualify the Exchange Notes under the securities laws or blue sky laws of such
jurisdictions as are contemplated by Section 2(a)
no later than the commencement of the Exchange Offer and (B) keep such
registrations or qualifications in effect and comply with such laws so as to
permit the continuance of offers, sales and dealings therein in such
jurisdictions until the completion of the Exchange Offer; provided, however, that
neither of the Issuers shall be required for any such purpose to (1) qualify as
a foreign corporation or limited liability company, as the case may be, in any
jurisdiction wherein it would not otherwise be required to qualify but for the

       

      
        
          
          

        

        
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        requirements
of this Section 3(c)(v), (2) consent to general service of process in any such
jurisdiction or (3) make any changes to its certificate of incorporation or
by-laws (or other organizational document) or any agreement between it and
holders of its ownership interests;

      

       

      (vi) use their
commercially reasonable efforts to obtain the consent or approval of each
governmental agency or authority, whether federal, state or local, which may be
required to effect the Exchange Offer Registration and the Exchange
Offer;

       

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

       

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

       

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

       

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

       

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

       

      (xii) prior to
the Effective Time, provide a supplemental letter to the Commission as
contemplated in Exxon Capital Holdings Corporation (pub. avail. May 13,
1988) and Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991).

       

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

       

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

       

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

       

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

       

      
        
          
          

        

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

       

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

       

      (ii) not less
than thirty (30) calendar days prior to the anticipated Effective Time of the
Shelf Registration Statement, mail the Notice and Questionnaire to the holders
of Registrable Securities; except as provided in Section 2(b) and Section 2(d)
and as contemplated by Section 3(e)(iii), no holder shall be entitled to be
named as a selling securityholder in the Shelf Registration Statement as of the
Effective Time, and no holder shall be entitled to use the prospectus forming a
part thereof for resales of Registrable Securities at any time, unless such
holder has returned a completed and signed Notice and Questionnaire to the
Issuers by the deadline for response set forth therein; provided, however, holders of
Registrable Securities shall have at least twenty (20) calendar days from the
date on which the Notice and Questionnaire is first mailed to such holders to
return a completed and signed Notice and Questionnaire to the
Issuers;

       

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

       

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

       

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

       

      (vi) provide
the Electing Holders in advance of filing thereof with the Commission, a draft
of such Shelf Registration Statement, each prospectus included 

       

      
        
          
          

        

        
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        therein
or filed with the Commission and each amendment or supplement thereto (including
any documents incorporated by reference therein after the initial filing), in
each case in substantially the form to be filed with the Commission, and shall
use their commercially reasonable efforts to reflect in each such document, when
so filed with the Commission, such comments as are reasonably
proposed;

      

       

      (vii) promptly
notify each of the holders and the Electing Holders, and confirm such advice in
writing, (A) when such Shelf Registration Statement or the prospectus
included therein or any prospectus amendment or supplement or post-effective
amendment has been filed, and, with  respect to such Shelf
Registration Statement or any post-effective amendment, when the same has become
effective, (B) of any comments by the Commission and by the blue sky or
securities commissioner or regulator of any state with respect thereto, or any
request by the Commission for amendments or supplements to such Shelf
Registration Statement or prospectus or for additional information, (C) of
the issuance by the Commission of any stop order suspending the effectiveness of
such Shelf Registration Statement or the initiation or, to the knowledge of the
Issuers, threatening of any proceedings for that purpose, (D) of the
receipt by the Issuers of any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation or, to the knowledge of the Issuers, threatening of any proceeding
for such purpose or (E) if at any time when a prospectus is required to be
delivered under the Securities Act, that such Shelf Registration Statement,
prospectus, prospectus amendment or supplement or post-effective amendment does
not conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act, or contains an untrue statement of a
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing;

       

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

       

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

       

      (x) furnish
to each Electing Holder a copy of such Shelf Registration Statement, each such
amendment and supplement thereto (in each case including all exhibits thereto
upon request and documents incorporated by reference therein) and such

       

      
        
          
          

        

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

      

       

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

       

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

       

      (xiii) unless
any Registrable Securities shall be in book-entry only form, cooperate with the
Electing Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold, which certificates,
if so required by any securities exchange upon which any Registrable Securities
are listed, shall be penned, lithographed or engraved, or produced by any
combination of such methods, on steel engraved borders, and which certificates
shall not bear any restrictive legends;

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

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

       

      (xv) include
in the Shelf Registration Statement a “Plan of Distribution” section with at
least the information substantially in the form attached hereto as Exhibit B, to
the extent permitted by the rules, regulations, and form requirements
promulgated by the Commission, except to the extent revised pursuant to comments
received from the Staff of the Commission; and

       

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

       

      (f) In the
event that the Issuers are required, pursuant to Section 3(e)(vii)(E)
hereof, to notify the Electing Holders, the Issuers shall prepare and furnish to
each of the Electing Holders a reasonable number of copies of a prospectus
supplemented or amended so that, as thereafter delivered to purchasers of
Registrable Securities, such prospectus conforms in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act, and
shall not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing. Each
Electing Holder agrees that upon receipt of any notice from the Issuers pursuant
to this Section 3(f), such Electing Holder shall
forthwith discontinue the disposition of Registrable Securities pursuant to the
Shelf Registration Statement applicable to such Registrable Securities until
such Electing Holder shall have received copies of such amended or supplemented
prospectus, and if so directed by the Issuers, such Electing Holder shall
deliver to the Issuers (at the Issuers’ expense) all copies, other than
permanent file copies, then in such Electing Holder’s possession of the
prospectus covering such Registrable Securities at the time of receipt of such
notice.  Upon written notice to the holders of Registrable Securities,
the Issuers shall be entitled to suspend, for a period of time (each, a “Suspension Period”),
the use of any Registration Statement or prospectus and shall not be required to
amend or supplement the Registration Statement, any related prospectus or any
document incorporated therein by reference if the Issuers determine in their
reasonable good faith judgment, after consultation with counsel, that the
Registration Statement or any prospectus may contain an untrue statement of a
material fact or omit any fact necessary to make the statements in the
Registration Statement or prospectus not misleading; provided that
(A) there are no more than five (5) Suspension Periods in any 12-month
period, (B) the duration of any such Suspension Periods may not exceed
one-hundred twenty (120) days in the aggregate in any 12-month period, and (C)
the Issuers shall use their good faith efforts to amend the Registration
Statement and/or prospectus to correct such untrue statement or omission as soon
as reasonably practicable unless such amendment would reasonably be expected to
have a material adverse effect on any proposal or plan of the Issuers to effect
a merger, acquisition, disposition, financing, reorganization, recapitalization
or similar transaction, in each case that is material to the
Issuers.

       

      
        
          
          

        

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

       

      4. Registration
Expenses.  The Issuers agree, subject to the last sentence of
this Section 4, to bear and to pay or cause to be
paid promptly all expenses incident to the Issuers’ performance of or compliance
with this Agreement, including, without limitation, (a) all Commission, filing
and review fees and expenses, (b) all fees and expenses in connection with the
qualification of the Notes for offering and sale under the securities laws and
blue sky laws referred to in Section 3(e)(xi) hereof, (c) all expenses relating
to the preparation, printing, production, distribution and reproduction of each
registration statement required to be filed hereunder, each prospectus included
therein or prepared for distribution pursuant hereto, each amendment or
supplement to the foregoing, the expenses of preparing the Notes for delivery
and the expenses of printing or producing any blue sky or legal investment
memoranda and all other documents in connection with the offering, sale or
delivery of Notes to be disposed of (including, without limitation, certificates
representing the Notes), (d) messenger, telephone and delivery expenses relating
to the offering, sale or delivery of Notes and the preparation of documents
referred in clause (c) above, (e) fees and expenses
of the Trustee under the Indenture, any agent of the Trustee and any reasonable
fees and expenses for counsel for the Trustee and of any collateral agent or
custodian, (f) internal expenses (including, without limitation, all salaries
and expenses of the Issuers’ officers and employees performing legal or
accounting duties), (g) fees, disbursements and expenses of counsel and
independent certified public accountants of the Issuers, (h) reasonable
fees, disbursements and expenses of one counsel for the Electing Holders
retained in connection with a Shelf Registration, as selected by the Electing
Holders of at least a majority in aggregate principal amount of the Registrable
Securities held by Electing Holders (which counsel shall be reasonably
satisfactory to the Issuers), (i) any fees charged by securities rating services
for rating the Notes, and (j) reasonable fees, expenses and disbursements of any
other persons, including, without limitation, special experts, retained by the
Issuers in connection with such registration (collectively, the “Registration
Expenses”).  To the extent that any Registration Expenses are
incurred, assumed or paid by any holder of Registrable Securities, the

       

      
        
          
          

        

        
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        Issuers
shall reimburse such person for the full amount of the Registration Expenses so
incurred, assumed or paid promptly after receipt of a request
therefor.

      

       

      5. Indemnification.

       

      (a) The
Issuers agree, jointly and severally, to indemnify and hold harmless each holder
of Registrable Securities or Exchange Notes, as the case may be, the affiliates,
directors, officers, employees, members, managers and agents of each such holder
and each Person who controls any such holder within the meaning of either the
Securities Act or the Exchange Act, to the fullest extent permitted by
applicable law, from and against any and all losses, claims, damages,
liabilities and expenses to which they or any of them may become subject insofar
as such losses, claims, damages, liabilities and expenses (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in a Registration Statement as originally
filed or in any amendment thereof, or the Disclosure Package, or any
preliminary, final or summary prospectus or Free Writing Prospectus included in
any such Registration Statement, or in any amendment thereof or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and agrees to reimburse each such
indemnified party, as incurred, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action (whether or not the indemnified party is a
party to any proceeding); provided, however, that the
Issuers will not be liable in any case to the extent that any such loss, claim,
damage, liability or expense arises (i) out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished to
the Issuers by or on behalf of any such holder specifically for inclusion
therein including, without limitation, any notice and questionnaire, or (ii) out
of sales of Registrable Securities made during a Suspension Period after notice
is given pursuant to Section 3(f)
hereof.  This indemnity agreement will be in addition to any liability
which the Issuers may otherwise have.

       

      (b) Each
holder severally (and not jointly) agrees to indemnify and hold harmless the
Issuers and any Parent, and each of their affiliates, directors, employees,
members, managers and agents and each Person who controls any Issuer or any
Parent within the meaning of either the Securities Act or the Exchange Act, to
the fullest extent permitted by applicable law, from and against any and all
losses, claims, damages or liabilities to which they or any of them may become
subject insofar as such losses, claims, damages or liabilities arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in a Registration Statement as originally filed or in any
amendment thereof, or in the Disclosure Package or any Holder Free Writing
Prospectus, preliminary, final or summary prospectus included in any such
Registration Statement, or in any amendment thereof or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading, to the extent, but only to the extent, that
any such untrue statement or alleged untrue statement or omission or alleged
omission is contained in any written information relating to such holder
furnished to the Issuers by or on behalf of such holder specifically for
inclusion therein; provided, however, that the total amount to be indemnified by
such holder pursuant to this Section 5(b) shall be limited to the net proceeds
(after deducting underwriters’ discounts and 

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

         

        commissions)
received by such holder in the offering to which such Registration Statement or
prospectus relates.  This indemnity agreement will be in addition to
any liability which the Issuers may otherwise have.

      

       

      (c) Promptly
after receipt by an indemnified party under this Section 5 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 5, notify the indemnifying party in
writing of the commencement thereof; but the failure so to notify the
indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless
and to the extent such action and such failure results in material prejudice to
the indemnifying party and forfeiture by the indemnifying party of substantial
rights and defenses; and (ii) will not, in any event, relieve the indemnifying
party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b)
above.  The indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party), and,
except as provided in the next sentence, after notice from the indemnifying
party to such indemnified party of its election to so assume the defense
thereof, the indemnifying party shall not be liable to such indemnified party
for any legal expenses of other counsel or any other expenses subsequently
incurred by such indemnified party in connection with the defense thereof other
than reasonable costs of investigation.  Notwithstanding the
indemnifying party’s rights in the prior sentence, the indemnified party shall
have the right to employ its own counsel (and one local counsel), and the
indemnifying party shall bear the reasonable fees, costs and expenses of such
separate counsel if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of
interest; (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action; or (iv) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party.  No indemnifying party shall, in connection
with any one action or separate but substantially similar or related actions in
the same jurisdiction arising out of the same general circumstances or
allegations, be liable for the fees and expenses of more than one separate firm
of attorneys (in addition to any local counsel) for all indemnified
parties.  An indemnifying party shall not be liable under this Section
5 to any indemnified party regarding any settlement
or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent is consented to by such
indemnifying party, which consent shall not be unreasonably
withheld.  No indemnifying party, in the defense of any such claim or
litigation, shall, except with the consent of each indemnified party, consent to
entry of any judgment or enter into any settlement or compromise that does not
include as an unconditional term thereof the giving by the claimant or plaintiff
therein, to such indemnified party, of a full and final release from all
liability in respect to such claim or litigation.

       

      
        
          
          

        

        
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      (d) In the
event that the indemnity provided in Section 5(a)
or Section 5(b) above is unavailable to or
insufficient to hold harmless an indemnified party for any reason, then each
applicable indemnifying party agrees to contribute to the aggregate losses,
claims, damages and liabilities (including, without limitation, legal or other
expenses reasonably incurred in connection with investigating or defending same)
to which such indemnifying party may be subject in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party
on the one hand and by the indemnified party on the other from the offering of
the Registrable Securities.  If, however, the allocation provided by
the immediately preceding sentence is not permitted by applicable law, then each
indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the indemnifying party on the
one hand and the indemnified party on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations.  The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the indemnifying party on the one hand or the
indemnified party on the other and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.  The parties agree that it would not be just and equitable
if contribution pursuant to this Section 5(d) were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this
Section 5(d).  The amount paid or payable
by an indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to above in this Section 5(d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  Notwithstanding
the provisions of this Section 5(d), no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  For purposes of this
Section 5, each Person who controls any holder of
Registrable Securities, agent or underwriter within the meaning of either the
Securities Act or the Exchange Act and each director, officer, employee and
agent of any such holder, agent or underwriter shall have the same rights to
contribution as such holder, agent or underwriter, and each Person who controls
the Issuers within the meaning of either the Securities Act or the Exchange Act
and each officer and director of the Issuers shall have the same rights to
contribution as the Issuers, subject in each case to the applicable terms and
conditions of this Section 5(d).

       

      (e) The
provisions of this Section 5 will remain in full
force and effect, regardless of any investigation made by or on behalf of any
holder of Registrable Securities or the Issuers or any of the officers,
directors or controlling Persons referred to in this Section 5 hereof, and will survive the transfer of Registrable
Securities.

       

      (f) To the
extent any indemnification by an indemnifying party is prohibited or limited by
law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under this Section 5 to the fullest extent permitted by law; provided,
however, that: (i) no Person involved in the sale of Registrable Securities
which Person is guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to
contribution from any 

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

         

        Person
involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities pursuant to such Shelf
Registration.

      

       

      6. Rule 144 and Rule 144A;
Other Exemptions.  With a view to making available to the
holders of Registrable Securities the benefits of Rule 144 and Rule 144A
promulgated under the Securities Act and other rules and regulations of the
Commission that may at any time permit a holder of Registrable Securities to
sell such securities to the public without registration, the Issuers covenant
that they will (i) file in a timely manner all reports and other documents
required, if any, to be filed by them under the Securities Act and Exchange Act
and the rules and regulations adopted thereunder and (ii) make available
information necessary to comply with Rule 144 and Rule 144A, if available with
respect to resales of the Registrable Securities under the Securities Act, at
all times, all to the extent required from time to time to enable such holder to
sell Registrable Securities without registration under the Securities Act within
the limitation of the exemptions provided by (x) Rule 144 and Rule 144A
promulgated under the Securities Act (if available with respect to resales of
the Registrable Securities), as such rules may be amended from time to time or
(y) any other rules or regulations now existing or hereafter adopted by the
Commission.  Upon the reasonable request of any holder of Registrable
Securities, the Issuers will deliver to such holder a written statement as to
whether they have complied with such information requirements, and, if not, the
specific reasons for non-compliance.

       

      7. Miscellaneous.

       

      (a) No Inconsistent
Agreements.  The Issuers shall not hereafter enter into any
agreement with respect to its securities which is inconsistent with or violates
the rights granted to the holders of Registrable Securities in this
Agreement.

       

      (b) Adjustments Affecting
Registrable Securities.  The Issuers shall not take any action,
or permit any change to occur, with respect to its securities which would
materially and adversely affect the ability of the holders of Registrable
Securities to include such Registrable Securities in a registration undertaken
pursuant to this Agreement or which would materially and adversely affect the
marketability of such Registrable Securities in any such registration (including
effecting a stock split or a combination of shares).

       

      (c) Remedies; Specific
Performance.  Any Person having rights under any provision of
this Agreement shall be entitled to enforce such rights specifically, to recover
damages caused by reason of any breach of any provision of this Agreement and to
exercise all other rights existing in their favor. The parties hereto agree and
acknowledge that money damages would not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction for specific
performance and/or injunctive relief (without posting any bond or other
security) in order to enforce or prevent violation of the provisions of this
Agreement and shall not be required to prove irreparable injury to such party or
that such party does not have an adequate remedy at law with respect to any
breach of this Agreement (each of which elements the parties admit). The parties
hereto further agree and acknowledge that each and every 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

         

        obligation
applicable to it and contained in this Agreement shall be specifically
enforceable against it and hereby waives and agrees not to assert any defenses
against an action for specific performance of their respective obligations
hereunder.  All rights and remedies existing under this Agreement are
cumulative to, and not exclusive of, any rights or remedies available under this
Agreement or otherwise.

      

       

      (d) Successors and
Assigns.  All covenants and agreements in this Agreement by or
on behalf of any of the parties hereto shall bind and only inure to the benefit
of the respective successors and assigns of the parties hereto whether so
expressed or not. In addition, whether or not any express assignment has been
made, the provisions of this Agreement which are for the benefit of purchasers
or holders of Registrable Securities are also for the benefit of, and
enforceable by, any subsequent holder of Registrable Securities. No assignment
or delegation of this Agreement by the Issuers, or any of the Issuers’ rights,
interests or obligations hereunder, shall be effective against any holder
without the prior written consent of such holder.

       

      (e) Severability.  Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement.

       

      (f) Counterparts.  This
Agreement may be executed simultaneously in two or more counterparts, any one of
which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same
Agreement.

       

      (g) Descriptive Headings;
Interpretation; No Strict Construction.  The descriptive
headings of this Agreement are inserted for convenience only and do not
constitute a substantive part of this Agreement. Whenever required by the
context, any pronoun used in this Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular forms of nouns, pronouns,
and verbs shall include the plural and vice versa. Reference to any agreement,
document, or instrument means such agreement, document, or instrument as amended
or otherwise modified from time to time in accordance with the terms thereof,
and, if applicable, hereof. The words “include”, “includes” or “including” in
this Agreement shall be deemed to be followed by “without limitation”. The use
of the words “or,” “either” or “any” shall not be exclusive. The parties hereto
have participated jointly in the negotiation and drafting of this Agreement. If
an ambiguity or question of intent or interpretation arises, this Agreement
shall be construed as if drafted jointly by the parties hereto, and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this
Agreement.  All references to laws, rules, regulations and forms in
this Agreement shall be deemed to be references to such laws, rules, regulations
and forms, as amended from time to time or, to the extent replaced, the
comparable successor thereto in effect at the time.  All references to
agencies, self-regulatory organizations or governmental entities in this
Agreement shall be deemed to be references to the comparable successor
thereto.

       

      (h) Governing
Law.  This Agreement and the exhibits and schedules hereto
shall be governed by, and construed in accordance with, the laws of the State of
New York, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the 

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

         

        State of
New York or any other jurisdiction) to the extent such rules or provisions would
cause the application of the laws of any jurisdiction other than the State of
New York.

      

       

      (i) Notices. All notices,
demands or other communications to be given or delivered under or by reason of
the provisions of this Agreement shall be in writing and shall be deemed to have
been given when (a) delivered personally to the recipient, (b) telecopied or
sent by facsimile to the recipient, or (c) one (1) Business Day after being sent
to the recipient by reputable overnight courier service (charges prepaid). Such
notices, demands and other communications shall be sent to the Issuers at the
address set forth below and to any holder of Registrable Securities at the
address set forth on the signature page hereto, or at such address or to the
attention of such other Person as the recipient party has specified by prior
written notice to the sending party. The Issuers’ address is:

       

      Charter
Communications, Inc.

      12405
Powerscourt Drive

      St.
Louis, Missouri  63131

      Attention:  General
Counsel

       

      with
copies to:

       

      Attn: Christian O.
Nagler, Esq.

      Kirkland
& Ellis LLP

      601
Lexington Avenue

      New York,
NY 10022-4611

      Facsimile:  (212)
446-4900

       

      Notice to
the holders shall be sent to:

       

      Paul,
Weiss, Rifkind, Wharton & Garrison LLP

      1285
Avenue of the Americas

      New York,
New York 10019-6064

      Attention:
Lawrence G. Wee

      Facsimile:
(212) 757-3990

       

      and
to:

       

      Skadden,
Arps, Slate, Meagher & Flom LLP

      300 South
Grand Avenue

      Los
Angeles, CA 90071

      Attention:
Nicholas P. Saggese

      Facsimile:
(213) 687-5600

       

      If any
time period for giving notice or taking action hereunder expires on a day which
is a Saturday, Sunday or legal holiday in the State of New York or the
jurisdiction in which the Issuers’ principal office is located, the time period
shall automatically be extended to the Business Day immediately following such
Saturday, Sunday or legal holiday.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      (j) Delivery by
Facsimile. This Agreement, the agreements referred to herein, and each
other agreement or instrument entered into in connection herewith or therewith
or contemplated hereby or thereby, and any amendments hereto or thereto, to the
extent signed and delivered by means of a facsimile machine or other electronic
means, shall be treated in all manner and respects as an original agreement or
instrument and shall be considered to have the same binding legal effect as if
it were the original signed version thereof delivered in person. At the request
of any party hereto or to any such agreement or instrument, each other party
hereto or thereto shall reexecute original forms thereof and deliver them to all
other parties. No party hereto or to any such agreement or instrument shall
raise the use of a facsimile machine or other electronic means to deliver a
signature or the fact that any signature or agreement or instrument was
transmitted or communicated through the use of a facsimile machine or other
electronic means as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

       

      (k) Waiver of Jury Trial.
Each of the parties to this Agreement hereby agrees to waive its respective
rights to a jury trial of any claim or cause of action based upon or arising out
of this Agreement. The scope of this waiver is intended to be all-encompassing
of any and all disputes that may be filed in any court and that relate to the
subject matter of this Agreement, including contract claims, tort claims and all
other common law and statutory claims. Each party hereto acknowledges that this
waiver is a material inducement to enter into this Agreement, that each has
already relied on this waiver in entering into this Agreement, and that each
will continue to rely on this waiver in their related future dealings. Each
party hereto further warrants and represents that it has reviewed this waiver
with its legal counsel and that it knowingly and voluntarily waives its jury
trial rights following consultation with legal counsel. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING
(OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION
7(k) AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT. In the event of litigation, this Agreement may be filed as a written
consent to a trial by the court.

       

      (l) Arm’s Length
Agreement.  Each of the parties to this Agreement agrees and
acknowledges that this Agreement has been negotiated in good faith, at arm’s
length, and not by any means prohibited by law.

       

      (m) Sophisticated Parties;
Advice of Counsel.  Each of the parties to this Agreement
specifically acknowledges that (a) it is a knowledgeable, informed,
sophisticated Person capable of understanding and evaluating the provisions set
forth in this Agreement and (ii) it has been fully advised and represented by
legal counsel of its own independent selection and has relied wholly upon its
independent judgment and the advice of such counsel in negotiating and entering
into this Agreement.

       

      (n) Entire
Agreement.  This Agreement, together with Schedule I attached
hereto, and any certificates, documents, instruments and writings that are
delivered pursuant hereto, constitutes the entire agreement and understanding of
the parties in respect of the subject matter hereof and supersedes all prior
understandings, agreements or representations by or 

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

         

        among the
parties, written or oral, to the extent they relate in any way to the subject
matter hereof.

      

       

      (o) Attorneys’
Fees.  In the event of litigation or other proceedings in
connection with or related to this Agreement, the prevailing party in such
litigation or proceeding shall be entitled to reimbursement from the opposing
party of all reasonable expenses, including, without limitation, reasonable
attorneys’ fees and expenses of investigation in connection with such litigation
or proceeding.

       

      (p) Certification.  Within
fifteen (15) business days following receipt of written request from the Issuers
by any holder (which request shall not be made more than twice in any calendar
year), such holder shall certify to the Issuers that such holder continues to
hold Registrable Securities (the “Certification”).  If
a holder fails to provide the Certification within the fifteen (15) business day
period referred to in the immediately preceding sentence, the Issuers reserve
the right, in their sole discretion, to remove such holder’s Registrable
Securities from a Registration Statement within fifteen (15) business days after
receipt by such holder of a second written notice specifying that the holder may
be removed from such Registration Statement unless such holder provides the
Certification within such subsequent fifteen (15) business day
period.

       

      (q) Use of
FWP.  No holder shall use a Holder Free Writing Prospectus
without the prior written consent of the Issuers, which shall not be
unreasonably withheld.

       

      (r) Notification of
Status.  Each holder shall notify the Issuers by written notice
within ten (10) business days from the first day on which the holder no longer
holds Registrable Securities.

       

      (s) Acknowledgement.  Each
holder understands that in can only participate in an Exchange Offer if: (i) it
acquired the Registrable Securities in the ordinary course of business; and (ii)
it does not engage in, intend to engage in, or have arrangements to participate
in a distribution (within the meaning of the Securities Act) of the Exchange
Notes.

       

      (t) Termination.  The
obligations of the Issuers and of any holder, other than those obligations
contained in Section 5, shall terminate with respect to the Issuers and such
holder as soon as both (A) such holder no longer holds any Registrable
Securities and (B) such holder is no longer a Restricted Holder or otherwise
subject to the volume limitations set forth in Rule 144(e) promulgated under the
Securities Act or any successor provision thereto with respect to Registrable
Securities.

       

      (u) Note
Guarantee.  The obligations of the Issuers hereunder,
including, without limitation, under Section 2, will be deemed satisfied if
satisfied by any Parent that provides a Note Guarantee.

       

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      If the
foregoing is in accordance with your understanding, please sign and return to us
counterparts hereof, and upon the acceptance hereof by you, on behalf of each of
the holders, this letter and such acceptance hereof shall constitute a binding
agreement between each of the holders and the Issuers.

       

      IN
WITNESS WHEREOF, each undersigned holders and the Issuers have caused their
respective signature page to this Registration Rights Agreement to be duly
executed as of the date first written above.

       

      ISSUERS:

       

      CCH
II, LLC, as an Issuer

       

      By:_____________________

      Name:

      Title:

      

       

      CCH
II CAPITAL CORP.

      as
an Issuer

       

      By:_____________________

      Name:

      Title:

       
 

      
        
          
            

             

            [Signature
Page to Exchange and Registration Rights Agreement]

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      
        	 
      	
                [_______]_____________________________

                By:           

                Name:

                Title:

                Address:

              

      

      

       

      
        	 
      	
                [_______]_____________________________

                By:           

                Name:

                Title:

                Address:

              

      

      

       

      
        	 
      	
                [_______]_____________________________

                By:           

                Name:

                Title:

              

      

      

       

      
        	 
      	
                [_______]_____________________________

                By:           

                Name:

                Title:

                Address:

              

      

      

       

      
        	 
      	
                [_______]_____________________________

                By:           

                Name:

                Title:

                Address:

              

      

      

       

      
        
          
            

             

            [Signature
Page to Exchange and Registration Rights Agreement]

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      EXHIBIT
A

       

      

       

      CCH II,
LLC

       

      CCH II
CAPITAL CORP.

       

      INSTRUCTION
TO DTC PARTICIPANTS

       

      (Date of
Mailing)

       

      URGENT —
IMMEDIATE ATTENTION REQUESTED

       

      DEADLINE
FOR RESPONSE:  [DATE](1)

       

      The
Depository Trust Company (“DTC”) has identified you as a DTC Participant through
which beneficial interests in the CCH II, LLC (“CCH II”) and CCH II Capital
Corp. (collectively, the “Issuers”) 13.50% Senior Notes due 2016 (the “Notes”)
are held.

       

      The
Issuers are in the process of registering the Notes under the Securities Act of
1933, as amended, for resale by the beneficial owners thereof. In order to have
their Notes included in the Exchange and Registration Statement, beneficial
owners must complete and return the enclosed Notice of Registration Statement
and Selling Securityholder Questionnaire.

       

      It is
important that beneficial owners of the Notes receive a copy of the enclosed
materials as soon as possible as their rights to have the Notes included in the
registration statement depend upon their returning the Notice and Questionnaire
by [_________].  Please forward a copy of the enclosed documents to
each beneficial owner that holds interests in the Notes through
you.  If you require more copies of the enclosed materials or have any
questions pertaining to this matter, please contact the Issuers c/o CCH II, LLC,
12405 Powerscourt Drive, St. Louis, Missouri, 63131,
Attention:  General Counsel.

       

      _____________

       

      (1)  Not
less than twenty (20) calendar days from date of mailing.

       

      
        
          
            
              	 
      	
                      A-1

                    	 
      

            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      CCH II,
LLC

       

      CCH II
CAPITAL CORP.

       

      Notice of
Registration Statement

       

      and

       

      Selling
Securityholder Questionnaire

       

      (Date)

       

      Reference
is hereby made to the Exchange and Registration Rights Agreement (the “Registration Rights
Agreement”) among the Issuers and the holders named
therein.  Pursuant to the Registration Rights Agreement, the Issuers
have filed with the United States Securities and Exchange Commission (the “Commission”) a
registration statement on Form [    ] (the “Shelf Registration
Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of
the Issuers’ Notes.  A copy of the Registration Rights Agreement is
attached hereto.  All capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Registration Rights
Agreement.

       

      Each
beneficial owner of Registrable Securities is entitled to have the Registrable
Securities beneficially owned by it included in the Shelf Registration
Statement.  In order to have Registrable Securities included in the
Shelf Registration Statement, this Notice of Registration Statement and Selling
Securityholder Questionnaire (“Notice and
Questionnaire”) must be completed, executed and delivered to the Issuers’
counsel at the address set forth herein for receipt ON OR BEFORE [Deadline for
Response].  Beneficial owners of Registrable Securities who do not
complete, execute and return this Notice and Questionnaire by such date (i) will
not be named as selling securityholders in the Shelf Registration Statement and
(ii) may not use the prospectus forming a part thereof for resales of
Registrable Securities.

       

      Certain
legal consequences arise from being named as a selling securityholder in the
Shelf Registration Statement and related prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related prospectus.

       

      
        
          
            
              	 
      	
                      A-2

                    	 
      

            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      ELECTION

       

      The
undersigned holder (the “Selling Securityholder”) of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3).  The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Registration Rights Agreement,
including, without limitation, Section 5 of the Registration Rights Agreement,
as if the undersigned Selling Securityholder were an original party
thereto.

       

      Upon any
sale of Registrable Securities pursuant to the Shelf Registration Statement, the
Selling Securityholder will be required to deliver to the Issuers and the
Trustee the Notice of Transfer Pursuant to Registration Statement set forth in
Exhibit C to
the Registration Rights Agreement within ten (10) business days of such
transfer.

       

      The
Selling Securityholder hereby provides the following information to the Issuers
and represents and warrants that such information is accurate and
complete:

       

      QUESTIONNAIRE

       

      (1)           (i)           Full
Legal Name of Selling Securityholder:

       

      (ii)          Full
Legal Name of Registered Holder (if not the same as in (i) above) of Registrable
Securities Listed in Item (3) below:

       

      (iii)         Full
Legal Name of DTC Participant (if applicable and if not the same as (ii) above)
Through Which Registrable Securities Listed in Item (3) below are
held:

       

      (iv)         Full
name of person or persons who have voting or investment control of the
Registrable Securities:

       

      (2)           Address
for Notices to Selling Securityholder:

       

      _______________________________

       

      _______________________________

       

      _______________________________

       

      Telephone:                                ______________________________

       

      Fax:                                            
______________________________

       

      Contact
Person:                        ______________________________

       

      (3)           Beneficial
Ownership of Notes:

       

      	 
      	
              A-3

            	 
      

       

      
         

        
          
          

          
            

          

        

        
          
          

        

      

       

          Except as set
forth below in this Item (3), the undersigned does not beneficially own any
Notes.

       

      (a)           Principal
amount of Registrable Securities beneficially owned:

       

      ______________________________________________

       

      ______________________________________________

       

      CUSIP No(s). of such Registrable
Securities:  
____________________________                                                                                                                

       

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

       

      ______________________________________________

       

      CUSIP
No(s). of such other Notes:   
____________________________                                                                                                                

       

      (c)           Principal
amount of Registrable Securities which the undersigned wishes to be included in
the Registration Statement: _______________________

       

      CUSIP No(s). of such Registrable
Securities to be included in the Registration Statement:
____________________________

       

      (4)           Beneficial
Ownership of Other Securities of the Issuers:

       

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

       

      State any
exceptions here:

       

      (5)           Relationships
with the Issuers:

       

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

       

      State any
exceptions here:

       

      (6)           Plan
of Distribution:

       

      Except as
set forth below, the undersigned Selling Securityholder intends to distribute
the Registrable Securities listed above in Item (3) only as follows (if at
all):  All or any portion of such Registrable Securities may be sold
from time to time directly by the undersigned Selling Securityholder or,
alternatively, through one or more underwriters, broker-dealers or
agents.  Such Registrable Securities may be sold in one or more
transactions at fixed prices, at prevailing market prices at the time of sale,
at varying prices determined at the time of sale, or at negotiated
prices.  Such sales may be effected in transactions (which may involve
crosses or 

      
         

        	 
      	
                A-4

              	 
      

         

      

      
        
          

        

      

      
      

       

      block
transactions) (i) on any national securities exchange or quotation service on
which the Registrable Securities may be listed or quoted at the time of sale,
(ii) in the over-the-counter market, (iii) in transactions otherwise than on
such exchanges or services or in the over-the-counter market, or (iv) through
the writing of options, whether such options are listed on an options exchange
or otherwise, (v) ordinary brokerage transactions and transactions in which the
broker-dealer solicits purchasers, (vi) block trades in which the broker-dealer
will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction, (vii) purchases by a
broker-dealer as principal and resale by the broker-dealer for its account,
(viii) an exchange distribution in accordance with the rules of the applicable
exchange, (ix) privately negotiated transactions, (x) short sales, (xi) sales
pursuant to Rule 144 or Rule 144A, (xii) broker-dealers may agree with the
selling securityholder to sell a specified number of shares at a stipulated
price per share, (xiii) a combination of any such methods of sale, and (xiv) any
other method permitted pursuant to applicable law.  In connection with
sales of the Registrable Securities or otherwise, the Selling Securityholder may
enter into hedging transactions with broker-dealers, which may in turn engage in
short sales of the Registrable Securities in the course of hedging the positions
they assume.  The Selling Securityholder may also sell Registrable
Securities short and deliver Registrable Securities to close out such short
positions, or loan or pledge Registrable Securities to broker-dealers that in
turn may sell such Notes.

       

      State any
exceptions here:

       

      By
signing below, the Selling Securityholder acknowledges that it understands its
obligation to comply, and agrees that it will comply, with the provisions of the
1934 Act including, without limitation, Regulation M.

       

      In the
event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Issuers, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Registration Rights
Agreement.

       

      By
signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related prospectus.  The Selling Securityholder understands that such
information will be relied upon by the Issuers and Charter Holdings in
connection with the preparation of the Shelf Registration Statement and related
prospectus.

       

      By
signing below, the undersigned hereby represents and warrants that it is
entitled under the terms of the Registration Rights Agreement to have all of its
Registrable Securities included in the Registration Statement and cannot sell
such Registrable Securities in one transaction under Rule 144 solely because of
the provisions of Rule 144.

       

      In
accordance with the Selling Securityholder’s obligation under Section 3(e) of
the Registration Rights Agreement to provide such information as may be required
by law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly 

      
         

        	 
      	
                A-5

              	 
      

         

      

      
        
          
          

          
            

          

        

        
          
          

        

         

        notify
the Issuers of any inaccuracies or changes in the information provided herein
which may occur subsequent to the date hereof at any time while the Shelf
Registration Statement remains in effect.  All notices hereunder and
pursuant to the Registration Rights Agreement shall be made in writing, by
hand-delivery, first-class mail, or air courier guaranteeing overnight delivery
as follows:

      

       

      (i)           To
the Issuers:

       

      CCH II, LLC

      CCH II Capital Corp.

      12405 Powerscourt Drive

      St. Louis,
Missouri  63131

      Attention:  General
Counsel

       

      with a copy to:

       

      Kirkland & Ellis LLP

      153 East 53rd Street

      New York, NY 10022

      Attn: Christian O. Nagler

      

      Once this
Notice and Questionnaire is executed by the Selling Securityholder and received
by the Issuers’ counsel, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives, and assigns of the Issuers and the Selling
Securityholder (with respect to the Registrable Securities beneficially owned by
such Selling Securityholder and listed in Item (3) above).  This
Agreement shall be governed in all respects by the laws of the State of New York
without giving effect to any provisions relating to conflicts of
laws.

       

      The
undersigned represents and warrants that it holds Registrable Securities and is
entitled to have such Registrable Securities included in a Registration
Statement.

       

      IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

       

      Dated:  ____________________

       

      

      ______________________________________________________________________

      Selling
Securityholder

      (Print/type
full legal name of beneficial owner of Registrable Securities)

       

      By:  ___________________________________________

       

      Name:

      Title:

      
        
           

          	 
      	
                  A-6

                	 
      

           

        

      

      
        
          

        

      

      
      

       

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

       

      Kirkland & Ellis LLP

      153 East 53rd Street

      New York, NY 10022

      Attn: Christian O. Nagler

       

      
        
          
            
              	 
      	
                      A-7

                    	 
      

            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
B

       

      PLAN OF
DISTRIBUTION

      

      We are
registering our 13.50% Senior Notes due 2016 to permit the resale of such
securities.  We will not receive any of the proceeds from the sale by
the selling securityholder of the securities.

       

      The
selling securityholder may sell all or a portion of the securities beneficially
owned by it and offered hereby from time to time directly or through one or more
underwriters, broker-dealers or agents. If the securities are sold through
underwriters or broker-dealers, the selling securityholder will be responsible
for underwriting discounts or commissions or agent’s commissions. The securities
may be sold in one or more transactions at fixed prices, at prevailing market
prices at the time of the sale, at varying prices determined at the time of
sale, or at negotiated prices. These sales may be effected in transactions,
which may involve crosses or block transactions,

       

      
        	
                ·  

              	
                on
      any national securities exchange or quotation service on which the
      securities may be listed or quoted at the time of
  sale;

              

      

       

      
        	
                ·  

              	
                in
      the over-the-counter market;

              

      

       

      
        	
                ·  

              	
                in
      transactions otherwise than on these exchanges or systems or in the
      over-the-counter market;

              

      

       

      
        	
                ·  

              	
                through
      the writing of options, whether such options are listed on an options
      exchange or otherwise;

              

      

       

      
        	
                ·  

              	
                ordinary
      brokerage transactions and transactions in which the broker-dealer
      solicits purchasers;

              

      

       

      
        	
                ·  

              	
                block
      trades in which the broker-dealer will attempt to sell the shares as agent
      but may position and resell a portion of the block as principal to
      facilitate the transaction;

              

      

       

      
        	
                ·  

              	
                purchases
      by a broker-dealer as principal and resale by the broker-dealer for its
      account;

              

      

       

      
        	
                ·  

              	
                an
      exchange distribution in accordance with the rules of the applicable
      exchange;

              

      

       

      
        	
                ·  

              	
                privately
      negotiated transactions;

              

      

       

      
        	
                ·  

              	
                short
      sales;

              

      

       

      
        	
                ·  

              	
                sales
      pursuant to Rule 144 or Rule 144A;

              

      

       

      
        	
                ·  

              	
                broker-dealers
      may agree with the selling securityholder to sell a specified number of
      such shares at a stipulated price per
share;

              

      

       

      
        	
                ·  

              	
                a
      combination of any such methods of sale;
and

              

      

      
        
           

          	 
      	
                  B-1

                	 
      

           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                ·  

              	
                any
      other method permitted pursuant to applicable
  law.

              

      

       

      If the
selling securityholders effect such transactions by selling securities to or
through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts,
concessions or commissions from the selling securityholders or commissions from
purchasers of the securities for whom they may act as agent or to whom they may
sell as principal (which discounts, concessions or commissions as to particular
underwriters, broker-dealers or agents may be in excess of those customary in
the types of transactions involved). In connection with sales of the securities,
the selling securityholders may enter into hedging transactions with
broker-dealers, which may in turn engage in short sales of the securities in the
course of hedging in positions they assume. The selling securityholder may also
sell securities short and deliver securities covered by this prospectus to close
out short positions and to return borrowed shares in connection with such short
sales. The selling securityholder may also loan or pledge securities to
broker-dealers that in turn may sell such securities.

       

      The
selling securityholders and any broker-dealer participating in the distribution
of the securities may be deemed to be “underwriters” within the meaning of the
Securities Act of 1933, and any commission paid, or any discounts or concessions
allowed to, any such broker-dealer may be deemed to be underwriting commissions
or discounts under the Securities Act of 1933. At the time a particular offering
of the securities is made, a prospectus supplement, if required, will be
distributed which will set forth the aggregate amount of shares of securities
being offered and the terms of the offering, including the name or names of any
broker-dealers or agents, any discounts, commissions and other terms
constituting compensation from the selling securityholders and any discounts,
commissions or concessions allowed or reallowed or paid to
broker-dealers.

       

      There can
be no assurance that the selling securityholders will sell any or all of the
securities pursuant to the shelf registration statement, of which this
prospectus forms a part.

       

      We will
pay all expenses of the registration of the securities pursuant to the
registration rights agreement, including, without limitation, Securities and
Exchange Commission filing fees; provided, however, that the selling security
holders will pay all underwriting discounts and selling commissions, if any. We
will indemnify the selling security holders against liabilities, including some
liabilities under the Securities Act of 1933, in accordance with the
registration rights agreements, or the selling securityholders will be entitled
to contribution. We may be indemnified by the selling securityholders against
civil liabilities, including liabilities under the Securities Act of 1933, that
may arise from any written information furnished to us by the selling
securityholders specifically for use in this prospectus, in accordance with the
related registration rights agreement, or we may be entitled to
contribution.

       

      Once sold
under the registration statement, of which this prospectus forms a part, the
securities will be freely tradable in the hands of persons other than our
affiliates.

       

      
        
          
            
              	 
      	
                      B-2

                    	 
      

            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
C

       

      NOTICE OF
TRANSFER PURSUANT TO REGISTRATION STATEMENT

       

      CCH II,
LLC

      CCH II
Capital Corp.

      12405
Powerscourt Drive

      St.
Louis, Missouri  63131

      Attention:  General
Counsel

      

      The Bank
of New York Mellon Trust Company, NA, as trustee

      2 North
LaSalle Street, Suite 1020

      Chicago,
Illinois  60602

      Attention:
Trust Officer

       

      Re:           13.50%
Senior Notes due 2016

       

      Dear
Sirs:

       

      Please be
advised that _______________ has transferred $___________ aggregate principal
amount of the above-referenced Notes pursuant to an effective Registration
Statement on Form S-1 (File No. 333-____) filed by the Issuers.

       

      We hereby
certify that the prospectus delivery requirements, if any, of the Securities Act
of 1933, as amended, have been satisfied and that the above-named beneficial
owner of the Notes is named as a “Selling Holder” in the prospectus dated [date]
or in supplements thereto, and that the aggregate principal amount of the Notes
transferred are the Notes listed in such prospectus opposite such owner’s
name.

       

      Dated:__________________

       

      
        	
                                                        Very
      truly yours,

              
	 
      
	                                        __________________________
	
                (Name)

              
	 
      
	
                                                        By:   __________________________                                                             

              
	
                                                        (Authorized
      Signature)

              
	 
      

      

      

       

      
        
          
            
              	 
      	
                      C-3exhibit10_4.htm

    

     

     

    Exhibit 10.4

     

    AMENDED
AND RESTATED

     

    LIMITED
LIABILITY COMPANY AGREEMENT

     

    OF

     

    CHARTER
COMMUNICATIONS HOLDING COMPANY, LLC

     

    (a Delaware Limited Liability
Company)

     

     

    This
AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (as amended from time
to time, this “Agreement”) is entered into as of
November 30, 2009 among Charter Communications, Inc., a Delaware corporation
(“CCI”), Charter
Investment, Inc, a Delaware corporation (“CII”), and Charter
Communications Holding Company, LLC, a Delaware limited liability company (the
“Company”).

     

     

    WITNESSETH:

     

     

    WHEREAS,
a Certificate of Formation (as amended from time to time, the “Certificate”) of the Company
was filed in the office of the Secretary of State of the State of Delaware on
May 25, 1999.  The Company was formed and has heretofore been operated
pursuant to the Limited Liability Company Agreement, entered into and made
effective as of May 25, 1999 by CII, as amended and restated numerous times,
most recently by that certain Amended and Restated Limited Liability Company
Agreement, dated as of January 1, 2001, among CII, Vulcan Cable III Inc., CCI
and certain other investors (the “Existing LLC
Agreement”).

     

     

    WHEREAS,
on March 27, 2009, CCI, CII and certain direct and indirect subsidiaries of CCI,
including the Company (collectively, the “Debtors”), filed petitions for
relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the
United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy
Court”).

     

     

    WHEREAS,
the Debtors filed a joint plan of reorganization (the “Joint Plan”) which, pursuant
to the Bankruptcy Code, was confirmed by an order, entered November 17, 2009
(the “Confirmation
Order”), of the Bankruptcy Court.

     

     

    WHEREAS,
pursuant to the Joint Plan, among other things, and on the effective date
thereof (the “Effective
Date”) (i) all of CII’s existing membership interests in the Company are
being cancelled, other than a 1% interest to be retained by CII (the “Retained Interest”), (ii) CCI
will hold all of the membership interests in the Company other than the Retained
Interest, (iii) the parties are confirming CCI as manager of the Company, and
(iv) CCI, CII and Paul G. Allen (“Mr. Allen”) are entering into
an agreement (the “New Exchange
Agreement”), pursuant to which, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      among
other things, CII and Mr. Allen shall have the right, exercisable at their
election at any time and from time to time, to exchange, directly or indirectly,
all or any portion of the Retained Interest for common stock of CCI in
accordance with the New Exchange Agreement.

    

     

     

    WHEREAS,
the Confirmation Order provides, among other things, for the amendment and
restatement of the Existing LLC Agreement on the terms set forth herein, and the
parties desire to amend and restate the Existing LLC Agreement on such
terms.

     

     

    NOW,
THEREFORE, in consideration of the terms and provisions set forth herein, the
benefits to be gained by the performance thereof and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree to amend and restate the Existing LLC Agreement as
follows:

     

     

    SECTION
1. General.

     

     

    (a) Formation. Effective as of
the date and time of filing of the Certificate in the office of the Secretary of
State of the State of Delaware, the Company was formed as a limited liability
company under the Delaware Limited Liability Company Act, 6 Del. C. § 18-101,
et. seq., as amended from
time to time (the “Act”). Except as expressly
provided herein, the rights and obligations of the Members (as defined in
Section 1(h)) in connection with the regulation and management of the Company
shall be governed by the Act.

     

     

    (b) Name. The name of the Company
shall be “Charter Communications Holding Company, LLC.” The business of the
Company shall be conducted under such name or any other name or names that the
Manager (as defined in Section 4(a)(i) hereof) shall determine from time to
time.

     

     

    (c) Registered Agent. The address
of the registered office of the Company in the State of Delaware shall be c/o
Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
Delaware 19808. The name and address of the registered agent for service of
process on the Company in the State of Delaware shall be Corporation Service
Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. The
registered office or registered agent of the Company may be changed from time to
time by the Manager.

     

     

    (d) Principal Office. The
principal place of business of the Company shall be at 12405 Powerscourt Drive,
St. Louis, MO 63131. At any time, the Manager may change the location of the
Company’s principal place of business.

     

     

    (e) Term. The term of the Company
commenced on the date of the filing of the Certificate
of Formation in the office of the Secretary of State of the State of Delaware,
and the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      Company
will have perpetual existence until dissolved and its affairs wound up in
accordance with the provisions of this Agreement.

    

     

     

    (f) (Intentionally
Omitted).

     

     

    (g) Qualification; Registration.
The Manager shall cause the Company to be qualified, formed or registered
under assumed or fictitious name statutes or similar laws in any jurisdiction in
which the Company transacts business and in which such qualification, formation
or registration is required or desirable. The Manager, as an authorized person
within the meaning of the Act, shall execute, deliver and file any certificates
(and any amendments and/or restatements thereof) necessary for the Company to
qualify to do business in a jurisdiction in which the Company may wish to
conduct business.

     

     

    (h) Voting. Each member of the
Company (if there is only one member of the Company, the “Member”; or if there are more than
one, the “Members”) shall have one vote (a
“Vote”) as to any matter under
the Act or this Agreement that requires the vote, approval or consent of the
Members for each one percentage point of Percentage Interest (as defined in
Section 7) held by such Member (totaling 100 Votes for all Members) (any
fraction of such a percentage point shall be entitled to an equivalent fraction
of a Vote). Any vote, approval or consent as to any matter under the Act or this
Agreement by a Member may be evidenced by such Member’s execution of any
document or agreement (including this Agreement or an amendment hereto) which
would otherwise require as a precondition to its effectiveness such vote,
approval or consent of the Members.

     

     

    SECTION
2. Purposes. The Company was
formed for the object and purpose of, and the nature of the business to be
conducted by the Company is, engaging in any lawful act or activity for which
limited liability companies may be formed under the Act.

     

     

    SECTION
3. Powers. The Company shall
have all powers necessary, appropriate or incidental to the accomplishment of
its purposes and all other powers conferred upon a limited liability company
pursuant to the Act.

     

     

    SECTION
4. Management.

     

     

    (a)           Management by
Manager.

     

     

    i) The
Members hereby confirm CCI, or its successor-in-interest that acquires directly
or indirectly substantially all of the assets or business of CCI, as the
Company’s manager (the “Manager”). CCI shall be the Manager
until a simple majority of the Votes elects otherwise or until its earlier
resignation. No other person may be elected as Manager without the approval of

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      a simple
majority of the Votes (for purposes of this Agreement, to the extent the context
requires, the term “person” refers to both individuals and
entities).  Except as otherwise required by applicable law and as
provided below with respect to the Board (if applicable) and except for such
matters which require the approval of the Members under this Agreement or
applicable law, the powers of the Company shall at all times be exercised by or
under the authority of, and the business, property and affairs of the Company
shall be managed by, or under the direction of, the Manager. The Manager is a
“manager” of the Company within the meaning of the Act. Any person appointed as
Manager shall accept its appointment by execution of a consent to this
Agreement.

    

     

     

    ii) The
Manager shall be authorized to elect, remove or replace directors and officers
of the Company, who shall have such authority with respect to the management of
the business and affairs of the Company as set forth herein or as otherwise
specified by the Manager in the resolution or resolutions pursuant to which such
directors or officers were elected.

     

     

    iii) Except as
otherwise required by this Agreement or applicable law, the Manager shall be
authorized to execute or endorse any check, draft, evidence of indebtedness,
instrument, obligation, note, mortgage, contract, agreement, certificate or
other document on behalf of the Company without the consent of any Member or
other person.

     

     

    iv) No annual
or regular meetings of the Manager or the Members are required. The Manager and
Members may, by written consent, take any action which it or they are otherwise
required or permitted to take at a meeting.

     

     

    v) The
Manager’s duty of care in the discharge of its duties to the Company and the
Members is limited to discharging its duties in good faith, with the care a
director of a Delaware corporation would exercise under similar circumstances,
in the manner it reasonably believes to be in the best interests of the Company
and its Members.

     

     

    vi) Except as
required by the Act, no Manager shall be liable for the debts, liabilities
and obligations of the Company, including without limitation any debts,
liabilities and obligations under a judgment, decree or order of a court, solely
by reason of being a manager of the Company.

     

     

    (b) Consent
Required.

     

     

    i) The
affirmative vote, approval, consent or ratification of the Manager shall be
required to:

     

     

    (1) alter the
primary purposes of the Company as set forth in Section 2;

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2) issue
membership interests in the Company to any Person and admit such Person as a
member;

     

     

    (3) do any
act in contravention of this Agreement or any resolution of the members, or
cause the Company to engage in any business not authorized by the Certificate or
the terms of this Agreement or that which would make it impossible to carry on
the usual course of business of the Company;

     

     

    (4) enter
into or amend any agreement which provides for the management of the business or
affairs of the Company by a person other than the Manager;

     

     

    (5) change or
reorganize the Company into any other legal form;

     

     

    (6) amend
this Agreement;

     

     

    (7) approve a
merger or consolidation with another person;

     

     

    (8) sell all
or substantially all of the assets of the Company;

     

     

    (9) change
the status of the Company from one in which management is vested in the Manager
to one in which management is vested in the members or in any other manager,
other than as may be delegated to the Board and the officers
hereunder;

     

     

    (10) possess
any Company property or assign the rights of the Company in specific Company
property for other than a Company purpose;

     

     

    (11) operate
the Company in such a manner that the Company becomes an “investment company”
for purposes of the Investment Company Act of 1940;

     

     

    (12) except as
otherwise provided or contemplated herein, enter into any agreement to acquire
property or services from any person who is a director or officer of the
Company;

     

     

    (13) settle
any litigation or arbitration with any third party, any Member, or any affiliate
of any Member, except for any litigation or arbitration brought or defended in
the ordinary course of business where the present value of the total settlement
amount or damages will not exceed Fifty Million Dollars
($50,000,000);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (14) subject
to the additional restrictions set forth in Section 4(b)(ii)(6) and Section 13,
materially change any of the tax reporting positions or elections of the
Company;

     

     

    (15) make or
commit to any expenditures which, individually or in the aggregate, exceed or
are reasonably expected to exceed the Company’s total budget (as approved by the
Manager) by the greater of 5% of such budget or Five Million Dollars
($5,000,000); or

     

     

    (16) make or
incur any secured or unsecured indebtedness which, individually or in the
aggregate, exceeds Fifty Million Dollars ($50,000,000), provided that this
restriction shall not apply to (i) any refinancing of or amendment to existing
indebtedness which does not increase total borrowing, (ii) any indebtedness to
(or guarantee of indebtedness of) any company controlled by or under common
control with the Company (“Intercompany
Indebtedness”), (iii) the pledge of any
assets to support any otherwise permissible indebtedness of the Company or any
Intercompany Indebtedness or (iv) indebtedness necessary to finance a
transaction or purchase approved by the Manager.

     

     

    ii) In
addition to the foregoing, at any time prior to January 1, 2010, one hundred
percent (100%) of the Votes shall be required to:

     

     

    (1) issue
limited liability company interests in the Company to any person or enter into
any agreement, understanding or arrangement to do so;

     

     

    (2) change or
reorganize the Company into any other legal form;

     

     

    (3) approve a
merger or consolidation of the Company with another person or enter into any
agreement, understanding or arrangement to do so;

     

     

    (4) sell all
or substantially all of the assets of the Company and its subsidiaries, taken as
a whole or enter into any agreement, understanding or arrangement to do
so;

     

     

    (5) voluntarily
dissolve the Company;

     

     

    (6) amend
Exhibit C
hereto, change the classification of the Company to other than a partnership or
an entity disregarded from its owner for federal, state and local tax purposes,
or materially change any of the tax reporting positions or elections of the
Company; or

     

     

    (7) engage in
any other transaction reasonably expected to result in income or gain being
allocated to CII for United States federal income tax purposes that is outside
the ordinary course of business with respect to the operation of the Company and
its direct and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      indirect
subsidiaries or enter into any agreement, understanding or arrangement to do any
of the foregoing.

    

     

     

    iii) Each of
the events described in the foregoing clauses (1) through (7) of Section
4(b)(ii) are referred to herein as a “Gain Recognition
Event.”  From and after January 1, 2010, for so long as CII or
another Allen Entity is a Member, if the Manager determines in good faith that a
Gain Recognition Event is reasonably likely to occur, the Manager shall provide
prompt written notice to CII of the nature and terms of such Gain Recognition
Event and the anticipated timing thereof.

     

     

    (c) Board
of Directors; Meetings.

     

     

    i) Board of Directors.  Notwithstanding Section
4(a), the Manager may delegate its powers to manage the business of the Company
to a Board of Directors (the “Board”), which, subject to the
resolutions adopted by the Manager from time to time, shall have the authority
to exercise all such powers of the Company and do all such lawful acts and
things as may be done by the Manager and as are not by statute or by this
Agreement required to be exercised or done only by the
Manager.  Except for the rights and duties that are assigned to
officers of the Company, the rights and duties of the directors may not be
assigned or delegated to any person.  The number of directors shall be
determined by the Manager and may be changed form time to time by the
Manager.  Each director shall be appointed by the Manager and shall
serve in such capacity until the earlier of his or her resignation or removal
(with or without cause) or replacement by the Manager.  At the date
hereof, there are no directors of the Company.

     

     

    ii) Regular Meetings. Regular
meetings of the Board may be held without notice at such time and at such place
as shall from time to time be determined by the Board, but not less often than
annually.

     

     

    iii) Special Meetings. Special
meetings of the Board may be called by the President or any director on
twenty-four (24) hours’ notice to each director; special meetings shall be
called by the President or Secretary in like manner and on like notice on the
written request of Members holding a simple majority of the Votes. Notice of a
special meeting may be given by facsimile. Attendance in person of a director at
a meeting shall constitute a waiver of notice of that meeting, except when the
director objects, at the beginning of the meeting, to the transaction of any
business because the meeting is not duly called or convened.

     

     

    iv) Telephonic Meetings.
Directors may participate in any regular or special meeting of the Board,
by means of conference telephone or similar communications equipment, by means
of which all persons participating in the meeting can hear each other.
Participation in a meeting pursuant to this Section 4(d)(iv) will constitute
presence in person at such meeting.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    v) Quorum. At all meetings of
the Board, a majority of the directors shall constitute a quorum for the
transaction of business, and the act of a majority of the directors present at
any meeting at which there is a quorum shall be the act of the Board, except as
may be otherwise specifically provided by statute, the Certificate or this
Agreement. If a quorum is not present at any meeting of the Board, the directors
present thereat may adjourn the meeting from time to time until a quorum shall
be present. Notice of such adjournment shall be given to any director not
present at such meeting.

     

     

    vi) Action Without Meeting.
Unless otherwise restricted by the Certificate or this Agreement, any
action required or permitted to be taken at any meeting of the Board may be
taken without a meeting if all directors consent thereto in writing and such
written consent is filed with the minutes of proceedings of the
Board.

     

     

    vii) Actions of Manager
Controls.  No action, authorization or approval of the Board
shall be required, necessary or advisable for the taking of any action by the
Company that has been approved by the Manager.  In the event that any
action of the Manager conflicts with any action of the Board or any other person
or entity, the action of the Manager shall control.

     

     

    (d) Director’s Duty of
Care. Each director’s duty of care in the discharge of his or her duties
to the Company and the Members is limited to discharging his duties in good
faith, with the care a director of a Delaware corporation would exercise under
similar circumstances, in the manner he or she reasonably believes to be in the
best interests of the Company and its Members.

     

     

    SECTION
5. Officers.

     

     

    (a) Officers. The Company shall
have such officers as may be necessary or desirable for the business of the
Company. The officers may include a Chairman of the Board, a President, a
Treasurer and a Secretary, and such other additional officers, including one or
more Vice Presidents, Assistant Secretaries and Assistant Treasurers as the
Manager, the Board, the Chairman of the Board, or the President may from time to
time elect. Any two or more offices may be held by the same
individual.  At the date hereof, the officers of the Company are set
forth on Exhibit
A hereto.

     

     

    (b) Election and Term. The
President, Treasurer and Secretary shall, and the Chairman of the Board may, be
appointed by and shall hold office at the pleasure of the Manager or the Board.
The Manager, the Board, or the President may each appoint such other officers
and agents as such person shall deem desirable, who shall hold office at the
pleasure of the Manager, the Board, or the President, and who shall have such
authority and shall perform such duties as from time to time shall, subject to
the provisions of Section 5(d) hereof, be prescribed by the Manager, the Board,
or the President.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Removal. Any officer may be
removed by the action of the Manager or the action of at least a majority of the
directors then in office, with or without cause, for any reason or for no
reason. Any officer other than the Chairman of the Board, the President, the
Treasurer or the Secretary may also be removed by the Chairman of the Board or
the President, with or without cause, for any reason or for no
reason.

     

     

    (d) Duties
and Authority of Officers.

     

     

    i) President. The President
shall be the chief executive officer and (if no other person has been appointed
as such) the chief operating officer of the Company; shall (unless the Chairman
of the Board elects otherwise) preside at all meetings of the Members and Board;
shall have general supervision and active management of the business and
finances of the Company; and shall see that all orders and resolutions of the
Board or the Manager are carried into effect; subject, however, to the right of
the directors to delegate any specific powers to any other officer or officers.
In the absence of direction by the Manager, Board, or the Chairman of the Board
to the contrary, the President shall have the power to vote all securities held
by the Company and to issue proxies therefor. In the absence or disability of
the President, the Chairman of the Board (if any) or, if there is no Chairman of
the Board, the most senior available officer appointed by the Manager or the
Board shall perform the duties and exercise the powers of the President with the
same force and effect as if performed by the President, and shall be subject to
all restrictions imposed upon him.

     

     

    ii) Vice President. Each Vice
President, if any, shall perform such duties as shall be assigned to such person
and shall exercise such powers as may be granted to such person by the Manager,
the Board or by the President of the Company. In the absence of direction by the
Manager, the Board or the President to the contrary, any Vice President shall
have the power to vote all securities held by the Company and to issue proxies
therefor.

     

     

    iii) Secretary. The Secretary
shall give, or cause to be given, a notice as required of all meetings of the
Members and of the Board. The Secretary shall keep or cause to be kept, at the
principal executive office of the Company or such other place as the Board may
direct, a book of minutes of all meetings and actions of directors and Members.
The minutes shall show the time and place of each meeting, whether regular or
special (and, if special, how authorized and the notice given), the names of
those present at Board meetings, the number of Votes present or represented at
Members’ meetings, and the proceedings thereof. The Secretary shall perform such
other duties as may be prescribed from time to time by the Manager or the Board
and may be assisted in his or her duties by any Assistant Secretary who shall
have the same powers of the Secretary in absence of the Secretary.

     

     

    iv) Treasurer. The Treasurer
shall have custody of the Company funds and securities and shall keep or cause
to be kept full and accurate accounts of receipts and disbursements in books of
the Company to be maintained for such purpose; shall deposit all moneys and
other valuable effects of the Company in the name and to the credit of the
Company in 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      depositories
designated by the Manager or the Board; and shall disburse the funds of the
Company as may be ordered by the Manager or the Board.

    

     

     

    v) Chairman of the Board. The
Chairman of the Board, if any, shall perform such duties as shall be assigned,
and shall exercise such powers as may be granted to him or her by the Manager or
the Board.

     

     

    vi) Authority of Officers. The
officers, to the extent of their powers set forth in this Agreement or otherwise
vested in them by action of the Manager or the Board not inconsistent with this
Agreement, are agents of the Company for the purpose of the Company’s business
and the actions of the officers taken in accordance with such powers shall bind
the Company.

     

     

    SECTION
6. Members.

     

     

    (a) Members. The Members of the
Company shall be set forth on Exhibit B hereto as
amended from time to time. At the date hereof, CCI and CII are the only Members.
Neither CCI nor CII are required to make any capital contribution to the
Company; however, CCI may make capital contributions to the Company at any time
in its sole discretion (for which its capital account balance shall be
appropriately increased). Each Member shall have a capital account in the
Company, the balance of which, at the date hereof, is reflected on Exhibit B hereto,
which capital account balance shall be adjusted from time to time in accordance
with the provisions set forth on Exhibit C hereto. The
provisions of this Agreement, including this Section 6, are intended to benefit
the Members and, to the fullest extent permitted by law, shall not be construed
as conferring any benefit upon any creditor of the Company. Notwithstanding
anything to the contrary in this Agreement, neither CCI nor CII shall have any
duty or obligation to any creditor of the Company to make any contribution to
the Company.

     

     

    (b) Admission of Members. Other
persons may be admitted as Members from time to time pursuant to the provisions
of this Agreement, including Section 4(b). In such event, this Agreement may be
amended as appropriate in accordance with the provisions of Section 15(b) to
establish the rights and responsibilities of the Members and to govern their
relationships.

     

     

    (c) Limited Liability. Except as
required by the Act, no Member shall be liable for the debts, liabilities and
obligations of the Company, including without limitation any debts, liabilities
and obligations of the Company under a judgment, decree or order of a court,
solely by reason of being a member of the Company.

     

     

    (d) Competing Activities.
Notwithstanding any duty otherwise existing at law or in equity, (i)
neither a Member nor a Manager of the Company, or any of their respective
affiliates, partners, members, shareholders, directors, managers, officers or
employees, shall be expressly or impliedly restricted or prohibited solely by
virtue of this Agreement or the relationships created 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      hereby
from engaging in other activities or business ventures of any kind or character
whatsoever and (ii) except as otherwise agreed in writing or by written Company
policy, each Member and Manager of the Company, and their respective affiliates,
partners, members, shareholders, directors, managers, officers and employees,
shall have the right to conduct, or to possess a direct or indirect ownership
interest in, activities and business ventures of every type and description,
including activities and business ventures in direct competition with the
Company.

    

     

     

    (e) Bankruptcy. Notwithstanding
any other provision of this Agreement, the bankruptcy (as defined in the Act) of
a Member shall not cause the Member to cease to be a member of the Company and,
upon the occurrence of such an event, the Company shall continue without
dissolution.

     

     

    SECTION
7. Units; Percentage Interests.
The Company has only one class of units (“Units”) representing
membership interests in the Company, which entitle the Members to certain rights
as set forth in this Agreement.  The number of Units held by each
Member, at the date hereof, is set forth on Exhibit B
hereto.  For purposes of this Agreement, “Percentage Interest” shall mean (a) with
respect to CII (or its permitted transferees), a fraction expressed as a
percentage (x) the numerator of which is the number of Available Exchange Shares
(as defined in the New Exchange Agreement) from time to time, and (y) the
denominator of which is the sum of (I) 111,990,247, plus (II) the number of
Available Exchange Shares from time to time, plus (III) the number of additional
shares of CCI common stock (if any) issued after the Effective Date (other than
in connection with exercise of the Exchange Option under the New Exchange
Agreement) so long as all of the proceeds (if any) of such issuance (net of
underwriting discounts and commissions) are contributed to the Company or any of
the Company’s wholly owned direct or indirect subsidiaries, and (b) with respect
to CCI, one-hundred percent (100%) minus the percentage calculated pursuant to
clause (a) of this definition.

     

     

    SECTION
8. Distributions. The Company
may from time to time distribute to the Members such amounts in cash and other
assets as shall be determined by the Members acting by simple majority of the
Votes.  Each such distribution (including liquidating distributions)
shall be divided among the Members in accordance with their respective
Percentage Interests.  Notwithstanding that the assets of the Company
remaining after payment of or due provision for all debts, liabilities, and
obligations of the Company may be insufficient to return the capital
contributions or share of the Company’s profits reflected in such Member’s
positive capital account balance, a Member shall have no recourse against the
Company or any other Member. Notwithstanding any provision to the contrary
contained in this Agreement, the Company shall not be required to make a
distribution to the Members on account of their interest in the Company if such
distribution would violate the Act or any other applicable law.

     

     

    SECTION
9. Allocations. The profits and
losses of the Company shall be allocated to the Members in accordance with the
provisions set forth on Exhibit C
hereto.

     

     

    SECTION
10. Dissolution;
Winding Up.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) Dissolution. The Company
shall be dissolved upon (i) the adoption of a plan of dissolution by the Members
acting by unanimity of the Votes and the approval of the Manager or (ii) the
occurrence of any other event required to cause the dissolution of the Company
under the Act.

     

     

    (b) Effective Date of Dissolution.
Any dissolution of the Company shall be effective as of the date on which
the event occurs giving rise to such dissolution, but the Company shall not
terminate unless and until all its affairs have been wound up and its assets
distributed in accordance with the provisions of the Act and the Certificate is
cancelled.

     

     

    (c) Winding Up. Upon dissolution
of the Company, the Company shall continue solely for the purposes of winding up
its business and affairs as soon as reasonably practicable. Promptly after the
dissolution of the Company, the Manager shall immediately commence to wind up
the affairs of the Company in accordance with the provisions of this Agreement
and the Act. In winding up the business and affairs of the Company, the Manager
may, to the fullest extent permitted by law, take any and all actions that it
determines in its sole discretion to be in the best interests of the Members,
including, but not limited to, any actions relating to (i) causing written
notice by registered or certified mail of the Company’s intention to dissolve to
be mailed to each known creditor of and claimant against the Company, (ii) the
payment, settlement or compromise of existing claims against the Company, (iii)
the making of reasonable provisions for payment of contingent claims against the
Company and (iv) the sale or disposition of the properties and assets of the
Company.  It is expressly understood and agreed that a reasonable time
shall be allowed for the orderly liquidation of the assets of the Company and
the satisfaction of claims against the Company so as to enable the Manager to
minimize the losses that may result from a liquidation.

     

     

    SECTION
11. Transfer. At any such time as
the Company has more than one Member, no Member shall transfer, directly or
indirectly, whether by sale, assignment, gift, pledge, hypothecation, mortgage,
exchange or otherwise (each, a “Transfer”), all or any part of
his, her or its limited liability company interest in the Company to any other
person without the prior written consent of each of the other Members; provided, however, that this
Section 11 shall not restrict the ability of (x) any Member to Transfer (at any
time) all or a portion of its limited liability company interest in the Company
to another Member or (y) CCI to Transfer (at any time) all or a portion of its
limited liability company interest in the Company to any other person or
entity.  For the avoidance of doubt, nothing herein shall prohibit,
restrict or limit in any way the rights of Mr. Allen and CII to engage in the
transactions set forth in the New Exchange Agreement.  Upon the
Transfer of a Member’s limited liability company interest, the Manager shall
provide notice of such Transfer to each of the other Members and shall amend
Exhibit B
hereto to reflect the Transfer. Notwithstanding the foregoing, (x) CII shall be
permitted to Transfer (at any time) its membership interest in the Company (or
any portion thereof) to another Allen Entity (as defined below), including in
connection with a liquidation of CII, and (y) the holders of capital stock of
CII shall be permitted to Transfer (at any time) shares of such capital stock
(or any portion thereof) to an Allen Entity or, so long as CII’s membership
interest in the Company is Transferred to one or more Allen Entities prior to or
concurrently with the Transfer of such capital stock, to any other person or
entity.  For purposes hereof, “Allen Entity” means from time
to time any of (1) Mr. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      Allen,
(2) any entity controlled by Mr. Allen, (3) any trust in which Mr. Allen is the
grantor, (4) the estate, spouse, immediate family members and heirs of Mr.
Allen, and (5) any trust created as a result of the death of Mr.
Allen.  “Controlled” shall mean the
direct or indirect ownership of at least 50 % of the voting power and economic
interest of an entity.

    

     

     

    SECTION
12. Admission of Additional Members.
The admission of additional or substitute Members to the Company shall be
accomplished by the approval required under Section 4(b) and the amendment of
this Agreement, including Exhibit B hereto, in
accordance with the provisions of Section 15(b), pursuant to which amendment
each additional or substitute Member shall agree to become bound by this
Agreement.

     

     

    SECTION
13. Tax Status.  It is
intended that the Company shall be treated as a partnership for federal, state
and local income tax purposes.  Notwithstanding anything to the
contrary in this Agreement, the Manager shall not take any action that would
result in the Company being treated as other than a partnership or an entity
disregarded from its owner for federal, state and local income tax purposes (or
refrain from taking any action, where omission would have such result) without
prior consent from all the Members.  All provisions of this Agreement
are to be construed so as to preserve such tax status.  Additional
provisions with respect to tax matters are set forth on Exhibit C
hereto.  The Members acknowledge and agree that transactions
consummated pursuant to the Joint Plan did not result in a termination of the
Company pursuant to Section 708 of the Code.

     

     

    SECTION
14. Exculpation
and Indemnification.

     

     

    (a) Exculpation. Neither the
Members, the Manager, the directors (if any) of the Company, the officers of the
Company, their respective affiliates, nor any person who at any time shall
serve, or shall have served, as a director, officer, employee or other agent of
any such Members, Manager, directors, officers, or affiliates (a “Specified Agent”) shall be liable, in
damages or otherwise, to the Company or to any Member or any other Person for,
and neither the Company nor any Member shall take any action against such
Members, Manager, directors, officers, affiliates or Specified Agent, in respect
of any Loss (as defined below) which arises out of any acts or omissions
performed or omitted by such person pursuant to the authority granted by this
Agreement, or otherwise performed on behalf of the Company, or otherwise arising
out of or relating to the business and affairs of the Company, unless it is
determined by a court of competent jurisdiction that such Member, Manager,
director, officer, affiliate, or Specified Agent did not act in good faith, in
the best interests of the Company and within the scope of authority conferred on
such person by this Agreement or approved by the Manager, to the extent
applicable. For purposes hereof, “Loss” means any costs or
expenses (including reasonable attorneys’ fees and expenses), judgments, fines,
losses, claims, damages, liabilities and amounts paid in settlement in
connection with any actual or threatened claim, action, suit, proceeding or
investigation, whether civil, criminal, administrative or
investigative.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) No Recourse. Each Member
shall look solely to the assets of the Company for return of such Member’s
investment, and if the property of the Company remaining after the discharge of
the debts and liabilities of the Company is insufficient to return such
investment, each Member shall have no recourse against the Company, the other
Members or their affiliates, except as expressly provided herein; provided, however, that the
foregoing shall not relieve any Member or the Manager of any fiduciary duty or
implied covenant of good faith and fair dealing to the Members that it may have
hereunder or under applicable law.

     

     

    (c) Indemnification. In any
threatened, pending or completed claim, action, suit or proceeding to which a
Member, a Manager, a director of the Company, any officer of the Company, their
respective affiliates, or any Specified Agent was or is a party or is threatened
to be made a party by reason of the fact that such person is or was engaged in
activities on behalf of the Company or otherwise relating to the business and
affairs of the Company, including without limitation any action or proceeding
brought under the Securities Act of 1933, as amended, against a Member, a
Manager, a director of the Company, any officer of the Company, their respective
affiliates, or any Specified Agent relating to the Company, the Company shall to
the fullest extent permitted by law indemnify and hold harmless the Members,
Manager, directors of the Company, officers of the Company, their respective
affiliates, and any such Specified Agents against losses, damages, expenses
(including  attorneys’ fees), judgments and amounts paid in settlement
actually and reasonably incurred by or in connection with such claim, action,
suit or proceeding; provided,
however, that none of the Members, Managers, directors of the Company,
officers of the Company, their respective affiliates or any Specified Agent
shall be indemnified for actions constituting bad faith, willful misconduct, or
fraud. Any act or omission by any such Member, Manager, director, officer, or
any such affiliate or Specified Agent, if done in reliance upon the opinion of
independent legal counsel or public accountants selected with reasonable care by
such Member, Manager, director, officer, or any such affiliate or Specified
Agent, as applicable, shall not constitute bad faith, willful misconduct, or
fraud on the part of such Member, Manager, director, officer, or any such
affiliate or Specified Agent.

     

     

    (d) Expenses. To the extent
permitted by applicable law, expenses (including reasonable legal fees) incurred
by a Member, a Manager, a director of the Company, any officer of the Company,
their respective affiliates, or any Specified Agent in such Person’s capacity as
such in defending any claim, action, suit, or proceeding shall, from time to
time, be advanced by the Company prior to the final disposition of such claim,
action, suit, or proceeding upon receipt by the Company of an undertaking by or
on behalf of the Member, Manager, director, officer, affiliate, or Specified
Agent to repay such amount if it shall be determined that such Person is not
entitled to be indemnified as authorized in Section 14(c).

     

     

    (e) No Presumption. The
termination of any claim, action, suit or proceeding by judgment, order or
settlement shall not, of itself, create a presumption that any act or failure to
act by a Member, a Manager, a director of the Company, any officer of the
Company, their respective affiliates or any Specified Agent constituted bad
faith, willful misconduct or fraud under this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f) Limitation on Indemnification.
Any such indemnification under this Section 14 shall be recoverable only
out of the assets of the Company and not from the Members.

     

     

    (g) Reliance on the Agreement. To
the extent that, at law or in equity, a Member, Manager, director of the
Company, officer of the Company or any Specified Agent has duties (including
fiduciary duties) and liabilities relating thereto to the Company or to any
Member or other person bound by this Agreement, such Member, Manager, director,
officer or any Specified Agent acting under this Agreement shall not be liable
to the Company or to any Member or other person bound by this Agreement for its
good faith reliance on the provisions of this Agreement. The provisions of this
Agreement, to the extent that they restrict the duties and liabilities of a
Member, Manager, director of the Company, officer of the Company or any
Specified Agent otherwise existing at law or in equity, are agreed by the
parties hereto to replace such other duties and liabilities of such Member,
Manager, director or officer or any Specified Agent.

     

     

    SECTION
15. Miscellaneous.

     

     

    (a) Certificate of Limited Liability
Company Interest. A Member’s limited liability company interest may be
evidenced by a certificate of limited liability company interest executed by the
Manager or an officer in such form as the Manager may approve; provided that
such certificate of limited liability company interest shall not bear a legend
that causes such limited liability company interest to constitute a security
under Article 8 (including Section 8-103) of the Uniform Commercial Code as
enacted and in effect in the State of Delaware, or the corresponding statute of
any other applicable jurisdiction.

     

     

    (b) Amendment. The terms and
provisions set forth in this Agreement may be amended by simple majority of the
Votes unless such an amendment would disproportionately affect a Member (each
such Member, a “Disproportionately Affected
Member”) in which case the terms and provisions set forth in this
Agreement may be amended only by a written instrument executed by each such
Disproportionately Affected Member.  Notwithstanding the foregoing,
one hundred percent (100%) of the Votes shall be required to amend Section
4(b)(ii), Section 4(b)(iii), Section 6, Section 7, Section 8, Section 9, Section
11, Section 13, Section 14 and this Section 15(b) of this Agreement and Exhibit C to this
Agreement.  Compliance with any term or provision set forth herein may
be waived only by a written instrument executed by each Member.  No
failure or delay on the part of any Member in exercising any right, power or
privilege granted hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or privilege preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege granted hereunder.

     

     

    (c) Binding Effect. This
Agreement shall be binding upon and inure to the benefit of the Members and
their respective successors and assigns.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) Governing Law. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
Delaware, without regard to any conflicts of law principles that would require
the application of the laws of any other jurisdiction.

     

     

    (e) Severability. In the event
that any provision contained in this Agreement shall be held to be invalid,
illegal or unenforceable for any reason, the invalidity, illegality or
unenforceability thereof shall not affect any other provision
hereof.

     

     

    (f) Multiple Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

     

     

    (g) Entire Agreement. This
Agreement (together with the New Exchange Agreement, the Joint Plan and all
related documents, instruments and agreements contemplated by the Joint Plan)
constitutes the entire agreement of the parties hereto with respect to the
subject matter hereof and supersedes and replaces any prior or contemporaneous
understandings.

     

     

    (h) Relationship between the Agreement
and the Act. Regardless of whether any provision of this Agreement
specifically refers to particular Default Rules (as defined below), (i) if any
provision of this Agreement conflicts with a Default Rule, the provision of this
Agreement controls and the Default Rule is modified or negated accordingly, and
(ii) if it is necessary to construe a Default Rule as modified or negated in
order to effectuate any provision of this Agreement, the Default Rule is
modified or negated accordingly. For purposes of this Section 15(h), “Default Rule” shall mean a rule stated
in the Act which applies except to the extent it may be negated or modified
through the provisions of a limited liability company’s Limited Liability
Company Agreement.

     

     

    (i)           Inspection.  Upon
the request of any Member, the Manager shall make reasonably available to the
requesting Member the Company’s books and records; provided, however, that the Manager
shall have the right to keep confidential from the Members, for such period of
time as the Manager deems reasonable, any information which the Manager
reasonably believes to be in the nature of trade secrets or other information
the disclosure of which the Manager in good faith believes is not in the best
interest of the Company or could damage the Company or its business or which the
Company is required by law or by agreement with a third party to keep
confidential.  Any such request, inspection, or copying of information
by a Member may be made by that Person or that Person’s agent or
attorney.

     

     

    (j) Financial
Statements.  The Manager shall cause annual audited financial
statements to be sent to each Member not later than 90 days after the close of
the calendar year, but in no event later than when CCI receives such statements.
The report shall contain a balance sheet as of the end of the calendar year and
an income statement and statement of cash flow for the calendar year. Such
financial statements shall be prepared in accordance with generally accepted

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      accounting
principles consistently applied and be accompanied by the report thereon of the
independent accountants engaged by the Company.  Notwithstanding the
foregoing, the audited financial statements of CCI shall satisfy this Section
15(j) to the extent that such financials statements do not reflect the
financials or assets of other material operations.  In addition, the
Manager shall provide any Member with such periodic operating and financial
reports of the Company as such Member may from time to time reasonably
request.

    

     

     

    (k) Parties in
Interest.  Except as expressly provided in the Act and Section
14 of this Agreement, nothing in this Agreement shall confer any rights or
remedies under or by reason of this Agreement on any persons other than the
Members and their respective heirs, representatives, successors and permitted
assigns nor shall anything in this Agreement relieve or discharge the obligation
or liability of any third person to any party to this Agreement, nor shall any
provision give any third person any right of subrogation or action over or
against any party to this Agreement.

     

     

    (l) Notices.  Any
notice to be given to any party hereto in connection with this Agreement shall
be in writing (which may include facsimile) and shall be deemed to have been
given and received when delivered to the address of the receiving party as
specified on the signature pages hereof. Any party may, at any time by giving
five (5) days’ prior written notice to the other parties, designate any other
address in substitution of the foregoing address to which such notice shall be
given.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on
the date first above written.

     

    CHARTER
COMMUNICATIONS, INC., a Delaware corporation, as Member and Manager

    

    

    By:  __________________________      

    Name:

    Title:

     

    Address
for notices:

    __________________________      

    __________________________      

    __________________________      

     

     

    

    CHARTER
INVESTMENT, INC., a Delaware corporation

    

    

    By:  __________________________      

    Name:              William
L. McGrath

    Title:                Vice
President

     

    Address
for notices:

    c/o
Vulcan Inc.

    505 Fifth
Avenue South, Suite 900

    Seattle,
Washington 98104

    Attention:  General
Counsel

    Facsimile:  (206)
342-3347

     

    CHARTER
COMMUNICATIONS HOLDING COMPANY LLC, a Delaware limited liability
company

     

     

    By:  __________________________         

    Name:

    Title:

     

    Address
for notices:

    __________________________      

    __________________________      

    __________________________     

     

     

    [Signature
Page to Amended and Restated Limited Liability Company Agreement of

    Charter
Communications Holding Company, LLC]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    

    

    EXHIBIT
A

     

    Officers

     

    
      	
              Neil
      Smit

            	
              President
      and Chief Executive Officer

            
	
              Michael
      J. Lovett

            	
              Executive
      Vice President and Chief Operating Officer

            
	
              Eloise
      E. Schmitz

            	
              Executive
      Vice President and Chief Financial Officer

            
	
              Gregory
      L. Doody

            	
              Executive
      Vice President and General Counsel

            
	
              Grier
      C. Raclin

            	
              Executive
      Vice President and Chief Administrative Officer

            
	
              Marwan
      Fawaz

            	
              Executive
      Vice President and Chief Technology Officer

            
	
              Ted
      W. Schremp

            	
              Executive
      Vice President and Chief Marketing Officer

            
	
              Joshua
      L. Jamison

              Steven
      E. Apodaca

            	
              President,
      East Operations

              President,
      West Operations

            
	
              Greg
      S. Rigdon

            	
              Senior
      Vice President -  Corporate Development

            
	
              Joseph
      R. Stackhouse

            	
              Senior
      Vice President -  Customer Operations

            
	
              Jay
      E. Carlson

            	
              Senior
      Vice President - Information Technology

            
	
              Kevin
      D. Howard

            	
              Vice
      President, Controller and Chief Accounting Officer

            
	
              Thomas
      M. Degnan

            	
              Vice
      President - Finance and Corporate Treasurer

            
	
              Richard
      R. Dykhouse

            	
              Vice
      President, Associate General Counsel and Corporate
    Secretary

            
	
              Paul
      J. Rutterer

            	
              Assistant
      Secretary

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
B

     

     

    

     

    
      	
              Member

            	 	
              Capital Account

            	 	
              Units

            
	 	 	 	 	 
	
              Charter
      Communications, Inc.

            	 	
              $[•]

            	 	
              99

            
	 	 	 	 	 
	
              Charter
      Investment, Inc.

            	 	
              $[•]

            	 	
              1

            

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
C

     

     

    TAX
AND ACCOUNTING MATTERS

     

    SECTION
1.                           Capital
Accounts.

     

     

    (a) Maintenance of Capital Accounts;
Determination of Profits and Losses; General Rules. A separate “Book
Capital Account” (as defined in Section 1(b) of this Exhibit C) shall be
maintained for each Member in accordance with the provisions of this Section
1.  Similarly, the “Profits” or “Losses” (as defined in Section 2(a)
of this Exhibit
C) shall be determined by the Company.

     

     

    (b) Book Capital
Accounts.  A capital account (the “Book Capital Account”) for
each Member shall be maintained at all times during the term of the Company in
accordance with this Section 1(b) and the capital accounting rules set forth in
Section 1.704-1(b)(2)(iv) of the Income Tax Regulations, as the same may be
amended from time to time (“Income Tax
Regulations”).  The Company shall make all adjustments required
by Section 1.704-1(b)(2)(iv), including, without limitation, the adjustments
contained in Section 1.704-1(b)(2)(iv)(g) of the Income Tax
Regulations (relating to Section 704(c) property).  In the event that
at any time during the term of the Company beginning on the day immediately
following the Effective Date it shall be determined that the Book Capital
Accounts shall not have been maintained as required by this Section 1(b), then
said accounts shall be retroactively adjusted so that the same shall conform to
this Section 1(b).

     

     

    i) Initial Book Capital
Accounts.  The “Initial Book Capital Account”
of a Member, as of the date of this Agreement, shall be equal to the amount set
forth on Exhibit
B of the Agreement.

     

     

    ii) Determination of Book
Items.  Consistent with the provisions of Section
1.704-1(b)(2)(iv)(g)(3) of the Income
Tax Regulations: (1) “Book
Depreciation” (which means the depreciation, depletion or amortization
deduction or allowance that shall be allowable to the Company with respect to an
item of property of the Company, determined in the manner hereinafter set forth)
for each item of property of the Company shall be the amount that bears the same
relationship to the “Gross
Asset Value” of such item of property of the Company as the “Tax Depreciation” (which means
the depreciation, depletion, amortization deduction or allowance as determined
for federal income tax purposes) with respect to such item of property of the
Company for such year bears to the “adjusted basis” (within the meaning of
Section 1011(a) of the Internal Revenue Code of 1986, as amended (the “Code”)) of such item of
property of the Company; and (2) “Book Gain or Loss” shall be
the gain or loss recognized by the Company from the sale, other disposition or
revaluation (as provided in the definition of “Gross Asset Value” below) of
property of the Company (such gain or loss determined by reference to the Gross
Asset Value, and not the adjusted tax basis, of such property to the
Company).  If an item of property of 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      the
Company shall have an “adjusted basis” (as defined in the preceding sentence)
equal to zero, Book Depreciation shall be determined under a reasonable method,
which method shall be selected by the Manager; provided that with respect to any
item of property with an adjusted basis of zero as of the Effective Date, Book
Depreciation shall be determined consistent with past
practice.

    

     

     

    iii) Book Adjustments on
Distributions.  With respect to all distributions of property
to the Members, such distribution shall comply with the provisions contained in
Section 1.704-1(b)(2)(iv)(e) of the Income Tax Regulations (relating to
adjustments to Member’s Book Capital Accounts in connection with such
distributions) and all allocations and adjustments made in connection therewith
shall be in accordance with Section 2 of this Exhibit
C.

     

     

    iv) Section 704(b)
Compliance.  The foregoing provisions and the other provisions
of this Agreement relating to the maintenance of Book Capital Accounts are
intended to comply with Section 704(b) of the Code and with the Income Tax
Regulations promulgated thereunder (and shall be interpreted and applied in a
manner consistent with such Income Tax Regulations).  In the event the
Manager shall determine that it is prudent to modify the manner in which the
Book Capital Accounts, or any debits or credits thereto, are computed in order
to comply with Section 704(b) of the Code and with Income Tax Regulations
promulgated thereunder, then the Manager may make such modification, provided that any change in
the manner of maintaining Book Capital Accounts shall not materially alter the
economic arrangement between the Members.

     

     

    
      	
              SECTION
      2.  

            	
              Allocation of Income, Losses
      and Deductions for Book and Tax
Purposes.

            

    

     

     

    (a) Profits and
Losses.  The “Profits” or “Losses” of the Company (which
means the Company’s taxable income or loss, respectively, as calculated in
accordance with Section 703(a) of the Code (with, however, (1) all items of
income, gain, loss or deduction required to be stated separately pursuant to
Section 703(a)(1) of the Code being included in such taxable income or loss, (2)
any income and gain that is exempt from federal income tax, and all expenditures
made by the Company described in Section 705(a)(2)(B) of the Code (or treated as
expenditures so described pursuant to Section 1.704-1(b)(2)(iv)(i) of the Income
Tax Regulations) being included in such Profits or Losses, (3) Book Depreciation
(and not Tax Depreciation) including without limitation all items of Member
Nonrecourse Deductions (as defined in Section 2(c) of this Exhibit C)) being
included in calculating such Profits or Losses, and (4) Book Gain or Loss (and
not Tax Gain or Loss (as defined in Section 2(b)(i) of this Exhibit C)) being
included in calculating such Profits or Losses), but excluding in such
calculation the amounts allocated under Sections 2(b) and (d) of this Exhibit C) for each
fiscal year of the Company, shall be determined and allocated to each of the
Members in the following order and priority:

     

     

    i) Profit and
Loss.  Except as otherwise provided in this Agreement, Profit
(and items thereof) and Loss (and items thereof) shall be allocated among the
Member’s Book Capital Accounts such that the Book Capital Accounts of the
Members (after the Book Capital 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      Accounts
have been adjusted to reflect all prior capital contributions and distributions
for the relevant fiscal year and increased by each Member’s share of Company
Minimum Gain and Member Nonrecourse Debt Minimum Gain) are as nearly as possible
equal (proportionately) to the amounts that would be distributed to the Members
if (1) all of the assets of the Company were sold to a third party for cash in
an amount equal to their Gross Asset Value (except assets actually sold during
the fiscal year shall be treated as sold for the consideration received
therefore), (2) the Company satisfied all of its liabilities in accordance with
their terms (limited with respect to each nonrecourse liability to the Gross
Asset Value of the assets securing such liability), and (3) all of the Company
assets were distributed in liquidation of the Company in accordance with Section 8 of this
Agreement.  The Manager may, in its discretion, make such other
assumptions as it deems necessary or appropriate in order to effectuate the
intended economic arrangement of the Members.  Notwithstanding
anything else in this Agreement or this Exhibit C to the
contrary, the provisions of the Existing LLC Agreement, taking into account each
Member’s Percentage Interest (as defined in the Existing LLC Agreement)
immediately before the transactions contemplated by the Joint Plan, shall govern
with respect to allocations of income, gain, loss, credit and deduction for the
period up to and including the Effective Date, including any items of income,
gain, loss, credit and deduction arising on the Effective Date and/or arising as
a result of the transactions effective as of the Effective Date, as contemplated
by the Joint Plan.

    

     

     

    The
assets of the Company shall be revalued as of the Effective Date in accordance
with Section 1.704-1(b)(2)(iv)(f) of the Income Tax Regulations.  For
purposes of this Section 2, “Gross Asset Value” shall mean,
with respect to any asset, the gross fair market value of such asset as of the
Effective Date, except as follows:

     

     

    (1) the
initial Gross Asset Value of any asset contributed by a Member to the Company
after the Effective Date shall be the gross fair market value of such asset at
the time of such contribution as determined in good faith by the Manager and the
initial Gross Asset Value of any other asset acquired by the Company after the
Effective Date shall be equal to its cost, within the meaning of Section 1012 of
the Code;

     

     

    (2) the Gross
Asset Values of all Company assets may, in the discretion of the Manager, be
adjusted to equal their respective gross fair market values, as reasonably
determined by the Manager, as of the following times:  (i) the
acquisition of an additional interest in the Company by any new or existing
Member in exchange for more than a de minimis capital contribution; (ii) the
distribution by the Company to a Member of more than a de minimis amount of
Company property as consideration for an interest in the Company; (iii) the
liquidation of the Company within the meaning of Section 1.704-1(b)(2)(ii)(g) of
the Income Tax Regulations or as otherwise provided in the Income Tax
Regulations; and (iv) at any other time the Manager reasonably deems
appropriate;

     

     

    (3) the Gross
Asset Value of any Company asset distributed to any Member shall be the gross
fair market value of such asset on the date of distribution (taking Section
7701(g) of the Code into account), as reasonably determined by the
Manager;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (4) the Gross
Asset Values of Company assets shall be increased (or decreased) to reflect any
adjustments to the adjusted basis of such assets pursuant to Code Section 734(b)
or Code Section 743(b), but only to the extent that such adjustments are taken
into account in determining Book Capital Accounts pursuant to Section
1.704-1(b)(2)(iv)(m) of the Income Tax Regulations and this Exhibit C; provided,
however, that Gross Asset Values shall not be adjusted pursuant to this clause
(4) to the extent the Manager reasonably determines that an adjustment pursuant
to clause (2) above is necessary or appropriate in connection with a transaction
that would otherwise result in an adjustment pursuant to this clause (4);
and

     

     

    (5) if the
Gross Asset Value of an asset has been determined or adjusted pursuant to clause
(1), (2) or (4) above, such Gross Asset Value shall thereafter be adjusted by
the Book Depreciation taken into account with respect to such asset for purposes
of computing Profits and Losses.

     

     

    (b) Tax Allocations.

     

     

    i) Tax Gain or
Loss.  The gain or loss for United States federal income tax
purposes from the sale or other disposition of property of the Company (“Tax Gain or Loss”) for each
fiscal year of the Company shall be calculated and reflected to the Members as
provided in this Section 2(b).  Tax Gain or Loss for purposes of this
Section shall be calculated (1) without including any income from interest on
any deferred portion of the sale price and (2) without including in the tax
basis of the property of the Company any remaining special basis adjustment to
property of the Company under Section 732(d) or 743 of the Code except to the
extent that such special basis adjustment is allocated to the common basis of
property of the Company under Section 1.734-2(b)(1) of the Income Tax
Regulations.  The Members agree that the tax effects of any special
basis adjustment that is not included in the calculation of tax gain or loss in
accordance with clause (2) of the preceding sentence shall be separately
reflected in calculating the tax gain or loss of the Member to whom such special
basis adjustment relates.

     

     

    ii) Section 704(c)
Property.  In the case of “Section 704(c) Property” (as
hereinafter defined), Tax Gain or Loss (as the case may be) and Tax Depreciation
shall be allocated in accordance with the requirements of Section 704(c) of the
Code and the Income Tax Regulations thereunder and such other provisions of the
Code as govern the treatment of Section 704(c) Property.  Such
allocations shall be made in accordance with the “traditional method” as set
forth in Section 1.704-3(b) of the Income Tax Regulations.  As used
herein, “Section 704(c)
Property” means (i) each item of property of the Company which is
contributed to the Company (or which was contributed to the Company prior to the
Effective Date) and to which Section 704(c) of the Code or Section
1.704-1(b)(2)(iv)(d) of the Income Tax Regulations applies, and (ii) each item
of property of the Company which, as contemplated by Section 1.704-1(b)(4)(i)
and other analogous provisions of the Income Tax Regulations, is governed by the
principles of Section 704(c) of the Code (or principles analogous to the
principles contained in Section 704(c) of the Code) by virtue of (a) an increase
or decrease in the Book Capital Accounts of the Members to reflect a revaluation
of property of the Company on the Company’s books as provided by Section

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      1.704-1(b)(2)(iv)(f)
of the Income Tax Regulations (including revaluations occurring prior to the
Effective Date), (b) the fact that it constitutes a receivable, account payable,
or other accrued but unpaid item which, under principles analogous to those
applying to an item of property of the Company having an adjusted tax basis that
differs from its Gross Asset Value, is treated as an item of property described
in Section 1.704-1(b)(2)(iv)(g)(2) of the Income Tax Regulations, or (c) any
other provision of the Code or the Income Tax Regulations (including, without
limitation, Section 1.704-1(b)(4)(i) of the Income Tax Regulations) as the same
may from time to time be construed, to the extent that, and for so long as, such
item of property of the Company continues to be governed by the principles of
Section 704(c) of the Code (or principles analogous to the principles contained
in Section 704(c) of the Code).  The allocation of tax items shall
except as provided otherwise in this Exhibit C or the Code
and the Income Tax Regulations follow the allocation of book
items.

    

     

     

    (c) Exceptions.

     

     

    i) Limitations.

     

     

    (1) General
Limitation.  Notwithstanding anything to the contrary contained
in this Section 2 of Exhibit C, no
allocation of Loss shall be made to a Member which would cause such Member (a
“Restricted Member”) to
have a deficit balance (or increase such deficit balance) in its Adjusted Book
Capital Account which exceeds the sum of such Member’s share of Company Minimum
Gain and such Member’s share of Member Nonrecourse Debt Minimum
Gain.  If the limitation contained in the preceding sentence would
apply to cause an item of loss or deduction to be unavailable for allocation to
a Restricted Member, then such item of loss or deduction shall be allocated
between or among Members who are not Restricted Members in accordance with
such  Members’ Percentage Interests.  If all members are
Restricted Members, items of loss or deduction shall be allocated among all
Members in accordance with their Percentage Interests.

     

     

    (2) Members Nonrecourse
Deductions.  Notwithstanding anything to the contrary contained
in this Section 2, any and all items of loss and deduction and any and all
expenditures described in Section 705(a)(2)(B) of the Code (or treated as
expenditures so described pursuant to Section 1.704-1(b)(2)(iv)(i) of the Income
Tax Regulations) that are (in accordance with the principles set forth in
Section 1.704-2(i)(2) of the Income Tax Regulations) attributable to Member
Nonrecourse Debt (collectively, “Member Nonrecourse
Deductions”) shall be allocated to the Member that bears the Economic
Risk of Loss for such Member Nonrecourse Debt.  If both Members bear
such Economic Risk of Loss, such Member Nonrecourse Deductions shall be
allocated between or among Members in accordance with the ratios in which they
share such Economic Risk of Loss.  If both Members bear such Economic
Risk of Loss for different portions of Member Nonrecourse Debt, each such
portion shall be treated as a separate Member Nonrecourse Debt.

     

     

    ii) Minimum Gain
Chargebacks.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (1) Company Minimum
Gain.  Except to the extent provided in Section 1.704-2(f)(2),
(3), (4) and (5) of the Income Tax Regulations, if there is, for any fiscal year
of the Company, a net decrease in Company Minimum Gain, there shall be allocated
to each Member, before any other allocation pursuant to this Section 2 is made
under Section 704(b) of the Code of the Company items for such fiscal year,
items of income and gain for such year (and, if necessary, for subsequent years)
equal to the Member’s share of the net decrease in Company Minimum
Gain.  A Member’s share of the net decrease in Company Minimum Gain is
(i) the amount of such total net decrease multiplied by the Member’s percentage
share of the Company’s minimum gain at the end of the immediately preceding
taxable year, and (ii) in the event that a Member’s share of the net decrease in
Company Minimum Gain results from a revaluation, the increase in such Member’s
Book Capital Account attributable to such revaluation to the extent the
reduction in minimum gain is caused by the revaluation determined in accordance
with Section 1.704-2(g)(1) and (2) of the Income Tax
Regulations.  Items of income and gain to be allocated pursuant to the
foregoing provisions of this Section 2(c)(ii)(1) shall consist first of gains
recognized from the disposition of items of property of the Company subject to
one or more Nonrecourse Liabilities of the Company, and then of a pro rata
portion of the other items of Company income and gain for that
year.  This Section 2(c)(ii)(1) is intended to comply with the minimum
gain chargeback requirement in the Income Tax Regulations and shall be
interpreted consistently therewith.

     

     

    (2) Company’s Nonrecourse Debt Minimum
Gain.  Except to the extent provided in Section 1.704-2(i)(4)
of the Income Tax Regulations, if there is, for any fiscal year of the Company,
a net decrease in the Member Nonrecourse Debt Minimum Gain, there shall be
allocated to each Member that has a share of the Member Nonrecourse Debt Minimum
Gain at the beginning of such fiscal year before any other allocation pursuant
to this Section 2 (other than an allocation required pursuant to Section
2(c)(ii)(1) of this Exhibit C) is made
under Section 704(b) of the Code for such fiscal year, items of income and gain
for such year (and, if necessary, for subsequent years) equal to such Member’s
share of the net decrease in the Member Nonrecourse Debt Minimum
Gain.  The determination of a Member’s share of the net decrease in
the Member Nonrecourse Debt Minimum Gain shall be made in a manner consistent
with the principles contained in Sections 1.704-2(i)(5) and 1.704-2(g)(1) and
(2) of the Income Tax Regulations.  The determination of which items
of income and gain to be allocated pursuant to the foregoing provisions of this
Section 2(c)(ii)(2) shall be made in a manner that is consistent with the
principles contained in Sections 1.704-2(f)(6), (i)(4) and (j)(2) of the Income
Tax Regulations.  This Section 2(c)(ii)(2) is intended to comply with
the minimum gain chargeback requirement in Section 1.704-2(i)(4) of the Income
Tax Regulations and shall be interpreted consistently therewith.

     

     

    iii) Nonrecourse
Deductions.  Nonrecourse Deductions for any fiscal year shall
be specially allocated among the Members in accordance with their Percentage
Interests.

     

     

    iv) Certain Defined
Terms.  For purposes of this Exhibit C: (i) “Company Minimum Gain” shall
have the same meaning as “partnership minimum gain” as set forth in Section
1.704-2(b)(2) of the Income Tax Regulations and the amount of Company Minimum
Gain, as well as any net increase or decrease in any Company Minimum Gain for
any taxable year shall be determined in accordance with the rules of Section
1.704-2(d) of the Income Tax Regulations 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      treating
such Company Minimum Gain as partnership minimum gain; (ii) “Member Nonrecourse Debt” shall
have the meaning set forth in Section 1.704-2(b)(4) of the Income Tax
Regulations; (iii) “Member
Nonrecourse Debt Minimum Gain” shall have the same meaning as “partner
nonrecourse debt minimum gain” as set forth in Section 1.704-2(i)(2) of the
Income Tax Regulations; (iv) “Nonrecourse Liability” shall
have the meaning set forth in Section 1.704-2(b)(3) of the Income Tax
Regulations; (v) “Adjusted Book
Capital Account” means the Book Capital Account of a Member reduced by
any adjustments, allocations or distributions described in Section
1.704-1(b)(2)(ii)(d)(4), (5) or (6) of the Income Tax Regulations; (vi) “Economic Risk of Loss” shall
have the meaning set forth in Section 1.752-2(b)-(j) of the Income Tax
Regulations; (vii) “Nonrecourse
Deductions” shall have the meaning set forth in Section 1.704-2(b)(1) of
the Income Tax Regulations.

    

     

     

    v) Code Section 754 Adjustments.
As of the Effective Date and upon consummation of the Joint Plan, the Company
shall have in place and the Manager shall cause the Company to file an election
under Section 754 of the Code (and applicable provisions of state and local
law).  Pursuant to Section 1.704-1(b)(2)(iv)(m) of the Income Tax
Regulation, to the extent an adjustment to the adjusted tax basis of any Member
asset under Sections 734(b) or 743(b) of the Code is required to be taken into
account in determining Book Capital Accounts, the amount of such adjustment to
the Book Capital Accounts shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases such
basis) and such gain or loss shall be specially allocated to the Members in a
manner consistent with the manner in which their Book Capital Accounts are
required to be adjusted pursuant to Section 1.704-1(b)(2)(iv)(m) of the Income
Tax Regulations.

     

     

    (d) Tax and Accounting
Matters.

     

     

    i) Qualified Income
Offset.  Notwithstanding anything to the contrary in this Exhibit C, in the
event any Member unexpectedly receives any adjustments, allocations or
distributions described in Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) of the
Income Tax Regulations, there shall be specially allocated to such Member such
items of Company income and gain, at such times and in such amounts as will
eliminate as quickly as possible the deficit balance (if any) in its Book
Capital Account (in excess of the sum of such Member’s share of Company Minimum
Gain and such Member’s share of Member Nonrecourse Debt Minimum Gain) created by
such adjustments, allocations or distributions.

     

     

    ii) Gross Income
Allocation.  In the event any Member has a deficit balance (if
any) in its Book Capital Account (in excess of the sum of such Member’s share of
Company Minimum Gain and such Member’s share of Member Nonrecourse Debt Minimum
Gain) at the end of any fiscal year, each such Member shall be specially
allocated items of Company income and gain in the amount of such excess as
quickly as possible, provided that an allocation pursuant to this Section
2(d)(ii) shall be made only if and to the extent that such Person would have a
deficit balance (if any) in its Book Capital Account (in excess of the sum of
such Member’s share of Company Minimum Gain and such Member’s share of Member
Nonrecourse Debt Minimum Gain) 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      after all
other allocations provided for in this Exhibit C have been
made as if Section 2(d)(i) and this Section 2(d)(ii) were not in this Exhibit
C.

    

     

     

    (e) Nonrecourse Liabilities for Purposes
of Section 752.  As permitted by Section 1.752-3(a)(3) of the
Income Tax Regulations, the Members hereby specify that excess Nonrecourse
Liabilities of the Company shall be allocated first to each Member up to the
amount of built-in gain that is allocable to such Member on Section 704(c)
Property where such Section 704(c) Property is subject to the Nonrecourse
Liability to the extent that such built-in gain exceeds the amount of
liabilities allocated pursuant to Section 1.752-3(a)(2) of the Income Tax
Regulations with respect to such property.  To the extent the excess
Nonrecourse Liabilities exceed the amount of such built-in gain, remaining
excess Nonrecourse Liabilities shall then be allocated in accordance with the
Members’ Percentage Interests.  The amount of Nonrecourse Liabilities
allocated to any Member shall be adjusted to reflect any transfer of interests,
diminution and/or increase in Percentage Interests or diminution and/or increase
in any built-in gain allocable to any Member pursuant to section 704(c) of the
Code, taking into account an adjustment for any such diminution and/or increase
in Percentage Interests.

     

     

    SECTION
3. No Deficit Funding
Obligation.

     

     

    Notwithstanding
anything to the contrary contained in this Exhibit C or in the
Agreement, no Member having a negative balance in its Book Capital Account shall
have any obligation to the Company or to any other Member to restore its Book
Capital Account to zero.

     

     

    SECTION
4. Order of
Application.

     

     

    For
purposes of this Exhibit C, the
provisions set forth in the Agreement and this Exhibit C shall be
applied in the order and manner provided in Section 1.704-2 of the Income Tax
Regulations.

     

     

    
      	
              SECTION
      5.  

            	
              Allocations in Connection with
      Transfer of Member
Interests.

            

    

     

     

    Upon the
effective date of a valid direct or indirect transfer of all or part of an
interest in the Company pursuant to the New Exchange Agreement,  CII
and Mr. Allen shall specify a “closing of the books” or “pro rata” method with
respect to the allocation of  items of income, deduction, gain, loss
and/or credit of the Company in accordance with Section 706(d) of the Code;
provided, however, that with respect to any transaction pursuant to the Joint
Plan, all cancellation of indebtedness income shall be allocated using a
“closing of the books” method pursuant to the Existing LLC
Agreement.

     

     

    SECTION
6. Tax Matters
Partner.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a) Tax Matters
Partner.  The Manager shall be the “tax matters partner” of the
Company as such term is defined in Section 6231(a)(7) of Code (“Tax Matters Partner”), and it
shall serve as such at the expense of the Company with all powers granted to a
tax matters partner under the Code.  Each Member shall give prompt
notice to each other Member of any and all notices it receives from the Internal
Revenue Service or any relevant state or local taxing authority concerning the
Company, or its federal, state or local income tax return.  The Tax
Matters Partner shall at the Company’s expense furnish the Members with status
reports regarding any negotiation between the Internal Revenue Service (or any
relevant state or local taxing authority) and the Company, and each Member, if
it so requests, may participate in such negotiation.  The Tax Matters
Partner shall not enter into any settlement with any taxing authority (federal,
state or local), or extend the statute of limitations, on behalf of the Company
or the Members without the approval of the Members.

     

     

    (b) Books and
Records.  The Manager shall maintain books and records of the
Company as may be required in connection with the preparation and filing of the
Company’s required United States federal, state and local income tax returns or
other tax returns or reports of foreign jurisdictions.  All such books
and records shall at all times be made available at the principal office of the
Manager and shall be open to the reasonable inspection and examination by the
Members or their duly authorized representatives during normal business hours
upon reasonable advance notice.

     

     

    (c) Tax Returns.  The
Manager shall use commercially reasonable efforts to cause the Company’s
accountants, as soon as practicable after the end of each fiscal year of the
Company but in no event later than July 15, to (i) prepare and submit drafts of
the Company’s federal, state and local tax returns to the Members and (ii)
prepare and deliver to each Member such information as is necessary to complete
such Member’s federal, state and local tax or information
returns.  The Manager shall also use commercially reasonable efforts
to cause the Company’s accountants, as soon as practicable after the end of any
short taxable year of a Member with respect to the Company, but in no event
later than 225 days after the end of such short taxable year, to prepare and
submit estimates to such Member of such information as is necessary to permit
such Member to prepare its federal, state and local tax or information
returns.  The costs of such preparation and review, and the costs of
any revisions or supplements to such tax returns or information statements
required as a result of such review, shall be a Company expense.  The
Manager shall use diligent efforts to have the Company’s accountants prepare and
file final federal, state and local tax returns for the Company no later than
the initial statutory filing date therefore (subject to any extension obtained
from the Internal Revenue Service relating thereto).

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