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Exhibit 4.5    
    

 
 

REGISTRATION RIGHTS AGREEMENT    
    
    dated as of    
    
    January 6, 2006    
    
    among    
    
    MCLEODUSA INCORPORATED

and
  THE HOLDERS OF COMMON STOCK
  LISTED ON SCHEDULE I    
    

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	PAGE

	ARTICLE 1

DEFINITIONS
	

Section 1.01.	
 	
Definitions	
 	

1
	Section 1.02.	 	Other Definitional and Interpretative Provisions	 	3
	

ARTICLE 2

REGISTRATION RIGHTS
	

Section 2.01.	
 	
Demand Registration	
 	

3
	Section 2.02.	 	Piggyback Registration	 	5
	Section 2.03.	 	Filing Registration Statements; Lock-Up Agreements	 	6
	Section 2.04.	 	Registration Procedures	 	7
	Section 2.05.	 	Indemnification by the Company	 	9
	Section 2.06.	 	Indemnification by Participating Stockholders	 	10
	Section 2.07.	 	Conduct of Indemnification Proceedings	 	10
	Section 2.08.	 	Contribution	 	11
	Section 2.09.	 	Participation in Public Offering	 	12
	Section 2.10.	 	Other Indemnification	 	12
	Section 2.11.	 	Cooperation by the Company	 	12
	Section 2.12.	 	No Transfer of Registration Rights	 	12
	Section 2.13.	 	Purchases and Sales of Securities	 	12
	

ARTICLE 3

CERTAIN COVENANTS AND AGREEMENTS
	

Section 3.01.	
 	
Limitations on Subsequent Registration Rights	
 	

12
	Section 3.02.	 	Charter or Bylaw Provisions	 	13
	Section 3.03.	 	Conflicting Agreements	 	13
	

ARTICLE 4

MISCELLANEOUS
	

Section 4.01.	
 	
Binding Effect; Assignability	
 	

13
	Section 4.02.	 	Notices	 	13
	Section 4.03.	 	Waiver; Amendment	 	14
	Section 4.04.	 	Fees and Expenses	 	14
	Section 4.05.	 	Governing Law	 	14
	Section 4.06.	 	Jurisdiction	 	14
	Section 4.07.	 	WAIVER OF JURY TRIAL	 	14
	Section 4.08.	 	Specific Enforcement	 	15
	Section 4.09.	 	Effectiveness	 	15
	Section 4.10.	 	Entire Agreement	 	15
	Section 4.11.	 	Severability	 	15

  

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        AGREEMENT dated as of January 6, 2006 among (i) McLeodUSA Incorporated, a Delaware corporation (the
"Company"), and (ii) the holders of Common Stock listed on Schedule I hereto and any other Person that acquires any Common Stock for so
long as such Common Stock constitutes Registrable Securities hereunder from any such holders, directly or indirectly (the "Stockholders"). 

 
 

W I T N E S S E T H:    
    

        WHEREAS, on October 28, 2005, the Company and certain of its Subsidiaries filed with the United States Bankruptcy Court for the Northern District of
Illinois (i) voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code and (ii) a Joint Prepackaged Plan of Reorganization (the
"Plan"); 

        WHEREAS,
pursuant to the Plan, the Company has been authorized and directed to enter into this Agreement, and each Holder of an Allowed Class 5 Claim (as such terms are defined in
the Plan) and the Company are bound, and are deemed to be bound, by this Agreement and entitled to the benefit of and the right to enforce this Agreement. 

        WHEREAS,
pursuant to the Plan, each Holder of an Allowed Class 5 Claim (as such terms are defined in the Plan) must execute this Agreement as a condition to receiving its pro rata
distribution of Common Stock (as defined below). 

        WHEREAS,
each Stockholder is on the date hereof the holder of the number of shares of Common Stock as is set forth on Schedule I attached hereto. 

        NOW,
THEREFORE, in accordance with the Plan and in consideration of the covenants and agreements contained herein, the parties hereto agree as follows: 

 
 

ARTICLE 1
  DEFINITIONS    

        Section 1.01.    Definitions.    (a) The following terms, as used herein, have the following meanings: 

        "Affiliate" shall have the meaning ascribed to the term "Affiliated person" in Section 2(a)(3) of the Investment Company Act of
1940, as amended, and shall include any fund or account sharing a common Investment Adviser. The term "Affiliated" shall have the correlative meaning. 

        "Board" means the board of directors of the Company. 

        "Business Day" means any day except a Saturday, Sunday or other day on which commercial banks in New York City are authorized by law to
close. 

        "Common Shares" means shares of Common Stock. 

        "Common Stock" means the common stock, par value $.01 per share, of the Company issued pursuant to the Plan and any stock into which such
Common Stock may hereafter be converted or changed (including by way of recapitalization, merger, consolidation, other reorganization or otherwise). 

        "Company Securities" means (i) the Common Stock, (ii) securities convertible into or exchangeable for Common Stock, and
(iii) options, warrants or other rights to acquire Common Stock. 

        "Effective Date" means the Effective Date of and as defined in the Plan. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Fidelity" means Fidelity Management & Research Co. and its Affiliates. 

        "First Public Offering" means the first Public Offering after the date hereof. 

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        "Investment Adviser" shall have the meaning ascribed to such term in Section 2(a)(20) of the Investment Company Act of 1940, as
amended. 

        "NASD" means the National Association of Securities Dealers, Inc. 

        "Person" means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization,
including a government or political subdivision or an agency or instrumentality thereof. 

        "Public Offering" means an underwritten public offering of Registrable Securities of the Company pursuant to an effective registration
statement under the Securities Act, other than pursuant to a registration statement on Form S-4 or Form S-8 or any similar or successor form. 

        "Registrable Securities" means, at any time, any Common Shares until (i) a registration statement covering such Common Shares has
been declared effective by the SEC and such Common Shares have been disposed of pursuant to such effective registration statement or (ii) such Common Shares are sold, assigned or otherwise
disposed of, the Company has delivered a new certificate or other evidence of ownership for such Common Shares not bearing the legend required pursuant to the Stockholders Agreement and such Common
Shares may be resold without subsequent registration under the Securities Act. 

        "Registration Expenses" means any and all expenses incident to the performance of or compliance with any registration or marketing of
securities, including all (i) registration, listing and filing fees, and all other fees and expenses payable in connection with the listing of securities on any securities exchange or automated
interdealer quotation system, (ii) fees and expenses of compliance with any securities or "blue sky" laws (including reasonable fees and disbursements of counsel in connection with "blue sky"
qualifications of the securities registered), (iii) expenses in connection with the preparation, printing, mailing and delivery of any registration statements, prospectuses and other documents
in connection therewith and any amendments or supplements thereto, (iv) security engraving and printing expenses, (v) internal expenses of the Company (including all salaries and
expenses of its officers and employees performing legal or accounting duties), (vi) reasonable fees and expenses of counsel for the Company and customary fees and expenses for independent
certified public accountants retained by the Company (including the expenses relating to any comfort letters or costs associated with the delivery by
independent certified public accountants of any comfort letters requested pursuant to Section 2.04(h)), (vii) reasonable fees and expenses of any special experts retained by the Company
in connection with such registration, (viii) reasonable fees and expenses of one counsel for all of the Stockholders participating in the offering (selected by the Stockholders holding the
majority of the Registrable Securities to be sold for the account of all Stockholders in the offering), (ix) fees and expenses in connection with any review by the NASD of the underwriting
arrangements or other terms of the offering, and all fees and expenses of any "qualified independent underwriter," including the fees and expenses of any counsel thereto, (x) fees and
disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding any underwriting fees, discounts and commissions attributable to the sale of Registrable Securities,
(xi) costs of printing and producing any agreements among underwriters, underwriting agreements, any "blue sky" or legal investment memoranda and any selling agreements and other documents in
connection with the offering, sale or delivery of the Registrable Securities, (xii) transfer agents' and registrars' fees and expenses and the fees and expenses of any other agent or trustee
appointed in connection with such offering, (xiii) fees and expenses payable in connection with any ratings of the Registrable Securities, including expenses relating to any presentations to
rating agencies and (xiv) all out-of-pocket costs and expenses incurred by the Company or its appropriate officers in connection with their compliance with
Section 2.04(l). Except as set forth in clause (viii) above, Registration Expenses shall not include any out-of-pocket expenses of any Stockholders (or any agents
who manage their accounts). 

        "Rule 144" means Rule 144 (or any successor provisions) under the Securities Act. 

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        "SEC" means the Securities and Exchange Commission. 

        "Securities Act" means the Securities Act of 1933, as amended. 

        "Stockholders Agreement" means that certain Stockholders Agreement, dated as of the Effective Date of the Plan, among the Company and the
holders of Common Stock listed on Schedule I thereto. 

        "Subsidiary" means, with respect to any Person, any entity of which securities or other ownership interests having ordinary voting power
to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. 

        Section 1.02.    Other Definitional and Interpretative Provisions.    The words "hereof", "herein" and
"hereunder" and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The captions herein are included for
convenience of reference only and shall be ignored in the construction or interpretation hereof. References to Articles, Sections and Schedules are to Articles, Sections and Schedules of this
Agreement unless otherwise specified. All Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized
terms used in any Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the plural, and any
plural term the singular. Whenever the words "include", "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation", whether or not they
are in fact followed by those words or words of like import. "Writing", "written" and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a
visible form. References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof.
References to any Person include the successors and permitted assigns of that Person. References from or through any date mean, unless otherwise specified, from and including or through and including,
respectively. 

 
 

ARTICLE 2
  REGISTRATION RIGHTS    

        Section 2.01.    Demand Registration.    (a) If at any time following the first anniversary of the
Effective Date, the Company shall receive a request from any Stockholder, or group of Stockholders, that holds in the aggregate 20% (or, if the First Public Offering has occurred, any Stockholder, or
group of Affiliated Stockholders, that holds in the aggregate 10%) or more of the then outstanding Common Stock (the "Requesting Stockholder") that the
Company effect the registration under the Securities Act of all or any portion of such Requesting Stockholder's Registrable Securities, and specifying the intended method of disposition thereof, then
the Company shall promptly give notice of such requested registration (each such request shall be referred to herein as a "Demand Registration") at
least 20 Business Days prior to the anticipated filing date of the registration statement relating to such Demand Registration to the other Stockholders and thereupon shall use its best efforts to
effect, as expeditiously as possible, the registration under the Securities Act of: 

          (i)  all
Registrable Securities for which the Requesting Stockholders have requested registration under this Section 2.01, and 

         (ii)  subject
to the restrictions set forth in Sections 2.01(h) andSection 2.09, all other Registrable Securities that any other Stockholders (all such other Stockholders,
together with the Requesting Stockholders, the "Registering Stockholders") have requested the Company to register by request received by the Company
within 20 Business Days after such Stockholders receive the Company's notice of the Demand Registration (such request shall include all information with respect to such Stockholder required to effect
the registration of such Stockholder's Registrable Securities), 

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all
to the extent necessary to permit the disposition (in accordance with the intended methods thereof as aforesaid) of the Registrable Securities so to be registered,  provided that, subject to
Section 2.01(d)(g), the Company shall not be obligated to effect more than 4 Demand Registrations (at least one of
which shall be available for use after the First Public Offering has occurred), and provided further that the Company shall not be obligated to effect a
Demand Registration unless (i) the aggregate market price or fair value on the date of such request of the Registrable Securities requested to be included in such Demand Registration equals or
exceeds $25,000,000 or (ii) the number of Common Shares requested to be registered pursuant to such Demand Registration equals or exceeds 10% of then outstanding Common Shares on the date of
such request. In no event shall the Company be required to effect more than one Demand Registration hereunder within any six-month period. 

        (b)   Promptly
after the expiration of the 20 Business Day-period referred to in Section 2.01(a)(ii), the Company will notify all Registering Stockholders
of the identities of the other Registering Stockholders and the number of shares of Registrable Securities requested to be included therein. At any time prior to the effective date of the registration
statement relating to such registration, the Requesting Stockholders may revoke such request, without liability to any of the other Registering Stockholders, by providing a notice to the Company
revoking such request. A request, so revoked, shall be considered to be a Demand Registration unless (i) such revocation arose out of the fault of the Company (in which case the Company shall
be obligated to pay all Registration Expenses in connection with such revoked request), or (ii) the Requesting Stockholders reimburse the Company for all Registration Expenses of such revoked
request. 

        (c)   The
Company shall be liable for and pay all Registration Expenses in connection with any Demand Registration, regardless of whether such Registration is effected, except
as set forth in Section 2.01(b). 

        (d)   Any
registration statement filed pursuant to a Demand Registration shall be a shelf registration statement that complies with the provisions of Rule 415 under the
Securities Act, unless otherwise agreed by the Requesting Stockholder and at least one other Stockholder, or group of Affiliated Stockholders, if any, that holds in the aggregate 20% or more of the
then outstanding Registrable Securities (a "Second Large Holder"); provided that the first registration
statement filed pursuant to a Demand Registration after the First Public Offering shall be a shelf registration statement that complies with the provisions of Rule 415 under the Securities Act. 

        (e)   Unless
otherwise agreed with the Requesting Stockholder and at least one Second Large Holder, if any, any registration of the Company's Common Stock pursuant to this
Section 2.01 shall be effected solely for the purpose of registering the offer and sale of the Common Stock held by the Registering Stockholders and shall not be effected for any offer or sale
by the Company of securities by the Company. 

        (f)    If
requested by any Stockholder, or group of Stockholders, that holds in the aggregate 20% (or, if the First Public Offering has occurred, any Stockholder, or group of
Affiliated Stockholders, that holds in the aggregate 10%) or more of the then outstanding Common Stock, the Company shall use its best efforts to have the Common Stock quoted on the Nasdaq National
market or listed on a national securities exchange, in each case as designated by such Requesting Stockholder so long as the Company is subject to the reporting requirements under the Exchange Act,
whether or not as a result of a Demand Registration, and otherwise qualifies for such quotation or listing. 

        (g)   A
Demand Registration shall not be deemed to have occurred: 

          (i)  unless
the registration statement relating thereto (A) has become effective under the Securities Act and (B) has remained effective for a period of at
least 180 days, or in the case of a shelf registration statement, two years (or such shorter period in which all Registrable Securities of the Registering Stockholders included in such
registration have actually been sold thereunder), 

4

 

 provided that such registration statement shall not be considered a Demand Registration if, after such registration statement becomes effective, (1) such registration
statement is interfered with by any stop order, injunction or other order or requirement of the SEC or other governmental agency or court and (2) less than 75% of the Registrable Securities
included in such registration statement have been sold thereunder; or 

         (ii)  if
the Maximum Offering Size is reduced in accordance with Section 2.01(h) such that less than 662/3% of the Registrable Securities of the
Requesting Stockholders sought to be included in such registration are included. 

        (h)   If
a Demand Registration involves an underwritten Public Offering and the managing underwriter advises the Company and the Requesting Stockholders that, in its view, the
number of shares of Registrable Securities requested to be included in such registration (including any securities that the Company proposes to be included that are not Registrable Securities) exceeds
the largest number of shares that can be sold without having an adverse effect on such offering, including the price at which such shares can be sold (the "Maximum Offering
Size"), the Company shall include in such registration, in the priority listed below, up to the Maximum Offering Size: 

          (i)  first,
all Registrable Securities requested to be registered by any Registering Stockholders (allocated, if necessary for the offering not to exceed the Maximum
Offering Size, pro rata among such entities on the basis of the relative number of Registrable Securities so requested to be included in such registration by each), and 

         (ii)  second,
subject to Section 2.01(e), any securities proposed to be registered for the account of the Company. 

        (i)    Upon
notice to each Registering Stockholder, the Company may postpone effecting a registration pursuant to this Section 2.01 on one occasion during any period of
six consecutive months for a reasonable time specified in the notice but not exceeding 60 days (which period may not be extended or renewed), if (i) an investment banking firm of
recognized national standing shall advise the Company and the Requesting Stockholders in writing that effecting the registration would materially and adversely affect an offering of securities of such
Company the preparation of which had then been commenced or (ii) the Company is in possession of material non-public information the disclosure of which during the period specified
in such notice the Company reasonably believes would not be in the best interests of the Company. 

        Section 2.02.    Piggyback Registration.    (a) If the Company, subject to Section 2.03, proposes
to register any Company Securities under the Securities Act (other than a registration on Form S-8 or S-4, or any successor forms, relating to Common Shares issuable
upon exercise of employee stock options or in connection with any employee benefit or similar plan of the Company or in connection with a direct or indirect acquisition by the Company of another
Person), whether or not for sale for its own account, the Company shall each such time give prompt notice at least 30 Business Days prior to the anticipated filing date of the registration statement
relating to such registration to each Stockholder owning any Common Shares, which notice shall set forth such Stockholder's rights under this Section 2.02 and shall offer such Stockholder the
opportunity to include in such registration statement the number of Registrable Securities of the same class or series as those proposed to be registered as each such Stockholder may request (a
"Piggyback Registration"), subject to the provisions of Section 2.02(b). Upon the request of any such Stockholder made within 15 Business Days
after the receipt of notice from the Company (which request shall specify the number of Registrable Securities intended to be registered by such Stockholder), the Company shall use its best efforts to
effect the registration under the Securities Act of all Registrable Securities that the Company has been so requested to register by all such Stockholders, to the extent requisite to permit the
disposition of the Registrable Securities so to be registered, provided that (i) if such registration involves an underwritten Public Offering,
all such Stockholders requesting to be included in the Company's registration must sell 

5

 

their
Registrable Securities to the underwriters selected as provided in Section 2.04(f) on the same terms and conditions as apply to the Company or the Requesting Stockholders, as applicable,
and (ii) if, at any time after giving notice of its intention to register any Company Securities pursuant to this Section 2.02 and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall determine for any reason not to register such securities, the Company shall give notice to all such Stockholders and, thereupon,
shall be relieved of its obligation to register any Registrable Securities in connection with such registration. No registration effected under this Section 2.02 shall relieve the Company of
its obligations to effect a Demand Registration to the extent required by Section 2.01. The Company shall pay all Registration Expenses in connection with each Piggyback Registration. 

        (b)   If
a Piggyback Registration involves an underwritten Public Offering (other than any Demand Registration, in which case the provisions with respect to priority of
inclusion in such offering set forth in Section 2.01(h) shall apply) and the managing underwriter advises the Company that, in its view, the number of Shares that the Company and such
Stockholders intend to include in such registration exceeds the Maximum Offering Size, the Company shall include in such registration, in the following priority, up to the Maximum Offering Size: 

          (i)  first,
so much of the Company Securities proposed to be registered for the account of the Company as would not cause the offering to exceed the Maximum Offering Size, 

         (ii)  second,
all Registrable Securities requested to be included in such registration by any Stockholders pursuant to Section 2.02 (allocated, if necessary for the
offering not to exceed the Maximum Offering
Size, pro rata among such Stockholders on the basis of the relative number of shares of Registrable Securities so requested to be included in such registration by each), and 

        (iii)  third,
any securities proposed to be registered for the account of any other Persons with such priorities among them as the Company shall determine. 

        Section 2.03.    Filing Registration Statements; Lock-Up Agreements.    (a) Prior to the
earlier of (i) the sale, assignment or other disposition by Fidelity of such number of Common Shares held by it that it no longer holds an aggregate of 20% or more of the then outstanding
Common Stock and (ii) eighteen months after the Effective Date, the Company may not file with the SEC any registration statement to register any securities of the Company for the sale for its
own account under the Securities Act (other than a registration on Form S-8 or S-4, or any successor forms, relating to Common Shares issuable upon exercise of employee
stock options or in connection with any employee benefit or similar plan of the Company or in connection with a direct or indirect acquisition by the Company of another Person) and thereafter, the
Company may so file such a registration statement so long as a majority of the members of the Company's Board and a majority of the Stockholders approve such a filing. 

6

  

        (b)   If any registration of Registrable Securities shall be effected in connection with a Public Offering, neither the Company nor any Stockholder shall effect any public
sale or distribution, including any sale pursuant to Rule 144, of any Company Securities or other security of the Company (except as part of such Public Offering) during the period beginning
14 days prior to the effective date of the applicable registration statement until the earlier of (i) such time as the Company and the lead managing underwriter shall agree and
(ii) 90 days (or 180 days if the registration of such Registrable Securities is the First Public Offering). 

        Section 2.04.    Registration Procedures.    Whenever Stockholders request that any Registrable Securities be
registered pursuant to Section 2.01 or 2.02, subject to the provisions of such Sections, the Company shall use its best efforts to effect the registration and the sale of such Registrable
Securities in accordance with the intended method of disposition thereof as quickly as practicable, and, in connection with any such request: 

        (a)   The
Company shall as expeditiously as possible prepare and file with the SEC a registration statement on any form for which the Company then qualifies or that counsel
for the Company shall deem appropriate and which form shall be available for the sale of the Registrable Securities to be registered thereunder in accordance with the intended method of distribution
thereof, and use its best efforts to cause such filed registration statement to become and remain effective continuously for a period of not less than 180 days, or in the case of a shelf
registration statement, two years (or such shorter period in which all of the Registrable Securities of the Registering Stockholders included in such registration statement shall have actually been
sold thereunder). 

        (b)   Prior
to filing a registration statement or prospectus or any amendment or supplement thereto, the Company shall, if requested, furnish to each participating Stockholder
and each underwriter, if any, of the Registrable Securities covered by such registration statement copies of such registration statement as proposed to be filed, and thereafter the Company shall
furnish to such Stockholder and underwriter, if any, such number of copies of such registration statement, each amendment and supplement thereto (in each case including all exhibits thereto and
documents incorporated by reference therein), the prospectus included in such registration statement (including each preliminary prospectus and any summary prospectus) and any other prospectus filed
under Rule 424 or Rule 430A under the Securities Act and such other documents as such Stockholder or underwriter may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such Stockholder. Each Stockholder shall have the right to request that the Company modify any information contained in such registration statement, amendment and
supplement thereto pertaining to such Stockholder and the Company shall use its best efforts to comply with such request, provided, however, that the
Company shall not have any obligation so to modify any information if the Company reasonably expects that so doing would cause the prospectus to contain an untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements therein not misleading. 

        (c)   After
the filing of the registration statement, the Company shall (i) cause the related prospectus to be supplemented by any required prospectus supplement, and,
as so supplemented, to be filed pursuant to Rule 424 under the Securities Act, (ii) comply with the provisions of the Securities Act with respect to the disposition of all Registrable
Securities covered by such registration statement during the applicable period in accordance with the intended methods of disposition by the Registering Stockholders thereof set forth in such
registration statement or supplement to such prospectus and (iii) promptly notify each Registering Stockholder holding Registrable Securities covered by such registration statement of any stop
order issued or threatened by the SEC or any state securities commission and take all reasonable actions required to prevent the entry of such stop order or to remove it if entered. 

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        (d)   The
Company shall use its best efforts to (i) register or qualify the Registrable Securities covered by such registration statement under such other securities or
"blue sky" laws of such jurisdictions in the United States as any Registering Stockholder holding such Registrable Securities reasonably (in light of such Stockholder's intended plan of distribution)
requests and (ii) cause such Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and
operations of the Company and do any and all other acts and things that may be reasonably necessary or advisable to enable such Stockholder to consummate the disposition of the Registrable Securities
owned by such Stockholder, provided that the Company shall not be required to (A) qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 2.04(d), (B) subject itself to taxation in any such jurisdiction or (C) consent to general service of process in
any such jurisdiction. 

        (e)   The
Company shall immediately notify each Registering Stockholder holding such Registrable Securities covered by such registration statement, at any time when a
prospectus relating thereto is required to be delivered under the Securities Act, of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading and promptly prepare and make available to each such Stockholder and file with the SEC any such supplement or amendment. 

        (f)    (i) the
Requesting Stockholders shall have the right to select an underwriter or underwriters in connection with any Public Offering resulting from the exercise
by such Requesting Stockholder of a Demand Registration, which selection shall be subject to the approval of the Company, which approval shall be reasonably given, and (ii) the Company shall
select an underwriter or underwriters in connection with any other Public Offering. In connection with any Public Offering, the Company shall enter into customary agreements (including an underwriting
agreement in customary form) and take such all other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities in any such Public Offering,
including the engagement of a "qualified independent underwriter" in connection with the qualification of the underwriting arrangements with the NASD. 

        (g)   Upon
execution of confidentiality agreements in form and substance reasonably satisfactory to the Company, the Company shall make available for inspection by any
Registering Stockholder and any underwriter participating in any disposition pursuant to a registration statement being filed by the Company pursuant to this Agreement and any attorney, accountant or
other professional retained by any such Stockholder or underwriter (collectively, the "Inspectors"), all financial and other records, pertinent
corporate documents and properties of the Company (collectively, the "Records") as shall be reasonably necessary or desirable to enable them to exercise
their due diligence responsibility, and cause the Company's officers, directors and employees to supply all information reasonably requested by any Inspectors in connection with such registration
statement. Records that the Company determines, in good faith, to be confidential and that it notifies the Inspectors are confidential shall not be disclosed by the Inspectors unless (i) the
disclosure of such Records is necessary to avoid or correct a misstatement or omission in such registration statement or (ii) the release of such Records is ordered pursuant to a subpoena or
other order from a court of competent jurisdiction. Each Registering Stockholder agrees that information obtained by it as a result of such inspections shall be deemed confidential and shall not be
used by it or its Affiliates as the basis for any market transactions in the Company Securities unless and until such information is made generally available to the public. Each Registering
Stockholder further agrees that, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, it shall give notice to the Company and allow the Company, at its
expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential. 

8

 

        (h)   The
Company shall furnish to each Registering Stockholder and to each such underwriter, if any, a signed counterpart, addressed to such Registering Stockholder or
underwriter, of (i) an opinion or opinions of counsel to the Company and (ii) a comfort letter or comfort letters from the Company's independent public accountants, each in customary
form and covering such matters of the kind customarily covered by opinions or comfort letters, as the case may be, as a majority of such Registering Stockholders or the managing underwriter therefor
reasonably requests. 

        (i)    The
Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as
reasonably practicable, an earnings statement or such other document covering a period of 12 months, beginning within three months after the effective date of the registration statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 

        (j)    The
Company may require each Registering Stockholder promptly to furnish in writing to the Company such information regarding the distribution of the Registrable
Securities as the Company may from time to time reasonably request and such other information as may be legally required in connection with such registration. 

        (k)   Each
Registering Stockholder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 2.04(e), such
Stockholder shall forthwith discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such Stockholder's receipt of the copies
of the supplemented or amended prospectus contemplated by Section 2.04(e), and, if so directed by the Company, such Stockholder shall deliver to the Company all copies, other than any permanent
file copies then in such Stockholder's possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. If the Company shall give such notice, the
Company shall extend the period during which such registration statement shall be maintained effective (including the period referred to in Section 2.04(a)) by the number of days during the
period from and including the date of the giving of notice pursuant to Section 2.04(e) to the date when the Company shall make available to such Stockholder a prospectus supplemented or amended
to conform with the requirements of Section 2.04(e). 

        (l)    The
Company shall have appropriate officers of the Company (i) prepare and make presentations at any "road shows" and before analysts and rating agencies, as the
case may be, (ii) take other actions to obtain ratings for any Registrable Securities and (iii) otherwise use their best efforts to cooperate as reasonably requested by the underwriters
in the offering, marketing or selling of the Registrable Securities. 

        (m)  The
Company's obligations under this Section 2.04 shall not be conditioned upon any Registering Stockholder (other than the Requesting Stockholders) meeting the
information requirements of Section 2.01(a)(ii). 

        Section 2.05.    Indemnification by the Company.    The Company agrees to indemnify and hold harmless each
Stockholder holding Registrable Securities covered by a registration statement, its officers, directors, employees, partners and agents, and each Person, if any, who controls such Stockholder within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages, liabilities and expenses (including reasonable
expenses of investigation and reasonable attorneys' fees and expenses) ("Damages") caused by or relating to any untrue statement or alleged untrue
statement of a material fact contained in any registration statement or prospectus relating to the Registrable Securities (as amended or supplemented if the Company shall have furnished any amendments
or supplements thereto) or any preliminary prospectus, or caused by or relating to any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, except insofar as such Damages are caused by or related to any such untrue statement or omission or alleged 

9

 

untrue
statement or omission so made based upon information furnished in writing to the Company by such Stockholder or on such Stockholder's behalf expressly for use therein,  provided that, with respect to any
untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus, or in any
prospectus, as the case may be, the indemnity agreement contained in this paragraph shall not apply to the extent that any Damages result from the fact that a current copy of the prospectus (or such
amended or supplemented prospectus, as the case may be) was not sent or given to the Person asserting any such Damages at or prior to the written confirmation of the sale of the Registrable Securities
concerned to such Person if it is determined that the Company has provided such prospectus to such Stockholder and it was the responsibility of such Stockholder to provide such Person with a current
copy of the prospectus (or such amended or supplemented prospectus, as the case may be) and such current copy of the prospectus (or such amended or supplemented prospectus, as the case may be) would
have cured the defect giving rise to such Damages. The Company also agrees to indemnify any underwriters of the Registrable Securities, their officers and directors and each Person who controls such
underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act on substantially the same basis as that of the indemnification of the Stockholders
provided in this Section 2.05. 

        Section 2.06.    Indemnification by Participating Stockholders.    Each Stockholder holding Registrable
Securities included in any registration statement agrees, severally but not jointly, to indemnify and hold harmless the Company, its officers, directors and agents and each Person, if any, who
controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company to
such Stockholder, but only (i) with respect to information furnished in writing by such Stockholder or on such Stockholder's behalf expressly for use in any registration statement or prospectus
relating to the Registrable Securities, or any amendment or supplement thereto, or any preliminary prospectus or (ii) to the extent that any Damages result from the fact that a current copy of
the prospectus (or such amended or supplemented prospectus, as the case may be) was not sent or given to the Person asserting any such Damages at or prior to the written confirmation of the sale of
the Registrable Securities concerned to such Person if it is determined that it was the responsibility of such Stockholder to provide such Person with a current copy of the prospectus (or such amended
or supplemented prospectus, as the case may be) and such current copy of the prospectus (or such amended or supplemented prospectus, as the case may be) would have cured the defect giving rise to such
loss, claim, damage, liability or expense. Each such Stockholder also agrees to indemnify and hold harmless underwriters of the Registrable Securities, their officers and directors and each Person who
controls such underwriters within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act on substantially the same basis as such Stockholder is
required to indemnify the Company as provided in this Section 2.06. As a condition to including Registrable Securities in any registration statement filed in accordance with Article 2,
the Company may require that it shall have received an undertaking reasonably satisfactory to it from any underwriter to indemnify and hold it harmless to the extent customarily provided by
underwriters with respect to similar securities. No Stockholder shall be liable under this Section 2.06 for any Damages in excess of the net proceeds realized by such Stockholder in the sale of
Registrable Securities of such Stockholder to which such Damages relate. 

        Section 2.07.    Conduct of Indemnification Proceedings.    If any proceeding (including any governmental
investigation) shall be instituted involving any Person in respect of which indemnity may be sought pursuant to this Article 2, such Person (an "Indemnified
Party") shall promptly notify the Person against whom such indemnity may be sought (the "Indemnifying Party") in writing and the
Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses,  provided that the failure of any Indemnified Party so to notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations
hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure to notify. In any such proceeding, any Indemnified Party shall have 

10

 

the
right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party
shall have mutually agreed to the retention of such counsel or (ii) in the reasonable judgment of such Indemnified Party representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is understood that, in connection with any proceeding or related proceedings in the same jurisdiction, the Indemnifying
Party shall not be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified Parties, and that all
such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties.
The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent, or if there be a final judgment for the
plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any loss or liability (to the extent stated above) by reason of such settlement or
judgment. Without the prior written consent of the Indemnified Party, no Indemnifying Party shall effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from
all liability arising out of such proceeding. 

        Section 2.08.    Contribution.    If the indemnification provided for in this Article 2 is unavailable
to the Indemnified Parties in respect of any Damages, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Damages (i) as between the Company and the Stockholders holding Registrable Securities covered by a registration statement on the one hand and the
underwriters on the other, in such proportion as is appropriate to reflect the relative benefits received by the Company and such Stockholders on the one hand and the underwriters on the other, from
the offering of the Registrable Securities, or if such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits but also the
relative fault of the
Company and such Stockholders on the one hand and of such underwriters on the other in connection with the statements or omissions that resulted in such Damages, as well as any other relevant
equitable considerations and (ii) as between the Company on the one hand and each such Stockholder on the other, in such proportion as is appropriate to reflect the relative fault of the
Company and of each such Stockholder in connection with such statements or omissions, as well as any other relevant equitable considerations. The relative benefits received by the Company and such
Stockholders on the one hand and such underwriters on the other shall be deemed to be in the same proportion as the total proceeds from the offering (net of underwriting discounts and commissions but
before deducting expenses) received by the Company and such Stockholders bear to the total underwriting discounts and commissions received by such underwriters, in each case as set forth in the table
on the cover page of the prospectus. The relative fault of the Company and such Stockholders on the one hand and of such underwriters on the other 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 Company and such
Stockholders or by such underwriters. The relative fault of the Company on the one hand and of each such Stockholder on the other 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 such party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. 

        The
Company and the Stockholders agree that it would not be just and equitable if contribution pursuant to this Section 2.08 were determined by pro rata allocation (even if the
underwriters were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid 

11

 

or
payable by an Indemnified Party as a result of the Damages referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, 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 2.08, no
underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the public were
offered to the public exceeds the amount of any Damages that such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission,
and no Stockholder shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities of such Stockholder were offered to the public (less
underwriters' discounts and commissions) exceeds the amount of any Damages that such Stockholder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. 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. Each Stockholder's obligation to contribute pursuant to this Section 2.08 is several in the proportion that the proceeds of the offering received by
such Stockholder bears to the total proceeds of the offering received by all such Stockholders and not joint. 

        Section 2.09.    Participation in Public Offering.    No Stockholder may participate in any Public Offering
permitted under Section 2.01(d) unless such Stockholder (a) agrees to sell such Stockholder's Registrable
Securities on the basis provided in any underwriting arrangements approved by the Company and Stockholders holding at least a majority of the Registrable Securities included in such Public Offering
and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting
arrangements and the provisions of this Agreement in respect of registration rights. 

        Section 2.10.    Other Indemnification.    Indemnification similar to that specified herein (with appropriate
modifications) shall be given by the Company and each Stockholder participating therein with respect to any required registration or other qualification of securities under any federal or state law or
regulation or governmental authority other than the Securities Act. 

        Section 2.11.    Cooperation by the Company.    If any Stockholder shall transfer any Registrable Securities
pursuant to Rule 144, the Company shall cooperate, to the extent commercially reasonable, with such Stockholder and shall provide to such Stockholder such information as such Stockholder shall
reasonably request. 

        Section 2.12.    No Transfer of Registration Rights.    None of the rights of Stockholders under this
Article 2 shall be assignable by any Stockholder to any Person acquiring Securities in any Public Offering. 

        Section 2.13.    Purchases and Sales of Securities.    The Company shall not, and shall use its best efforts to
cause its affiliates (as defined in Rule 405 under the 1933 Act) not to, purchase and then resell or otherwise transfer any Common Shares. 

 
 

ARTICLE 3
  CERTAIN COVENANTS AND AGREEMENTS    

        Section 3.01.    Limitations on Subsequent Registration Rights.    The Company agrees that it shall not enter
into any agreement with any holder or prospective holder of any securities of the Company (a) that would allow such holder or prospective holder to include such securities in any Demand
Registration or Piggyback Registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that their
inclusion would not reduce the amount of the Registrable Securities of the Stockholders included therein or (b) on terms otherwise more favorable than this Agreement. 

12

 

        Section 3.02.    Charter or Bylaw Provisions.    Each Stockholder agrees to vote its Company Securities or
execute proxies or written consents, as the case may be, to ensure that the Company's certificate of incorporation and bylaws (a) facilitate, and do not at any time conflict with, any provision
of this Agreement and (b) permit each Stockholder to receive the benefits to which each such Stockholder is entitled under this Agreement. 

        Section 3.03.    Conflicting Agreements.    The Company represents that it has not, and agrees that it shall
not, enter into any agreement that is inconsistent with the rights granted to the holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof. 

 
 

ARTICLE 4
  MISCELLANEOUS    

        Section 4.01.    Binding Effect; Assignability.    This Agreement shall be binding upon and enforceable by each
of the parties hereto pursuant to, and in accordance with, the Plan both before and after execution hereof by any such party and shall inure to the benefit of and be binding upon the successors,
assigns and, subject to Section 2.12, transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent holders of Registrable
Securities. The failure of any party to execute this Agreement shall not prevent them from exercising their rights under this Agreement, subject to their obligations under and the terms and conditions
of this Agreement. If any transferee of any holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by operation of law or otherwise, such Registrable Securities
shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform
all of the terms and provisions of this Agreement and such Person shall be entitled to receive the benefits hereof. 

        Section 4.02.    Notices.    All notices, requests and other communications (collectively,
"Communications") to any party shall be in writing and shall be delivered in person, mailed by certified or registered mail, return receipt requested,
or sent by facsimile transmission, 

if
to the Company, to: 

McLeodUSA
Incorporated

6400 C Street SW

P.O. Box 3177

Cedar Rapids, IA 52406 3177

Facsimile: (319) 790 7901

Attn: James E. Thompson, Esq. 

if
to any Stockholder, to: 

        The
address of such Stockholder listed on Schedule I, or such other address as provided by such Stockholder to the Company. 

13

   
        All Communications shall be deemed received on the earliest of (i) the date such Communication is sent by facsimile transmission, (ii) the date such Communication is
delivered in person, (iii) the day after the date such Communication is placed in overnight mail with a national overnight courier service or (iv) three days after the date such
Communication is mailed by certified or registered mail, in each case so long as such day is a Business Day. If such day is not a Business Day, any such Communication shall be deemed not to have been
received until the next succeeding Business Day. Any Communication sent by facsimile transmission shall be confirmed by certified or registered mail, return receipt requested, posted within one
Business Day, or by personal delivery, whether courier or otherwise, made within two Business Days after the date of such facsimile transmissions. 

        Any
Person that becomes a Stockholder shall provide its address and fax number to the Company, which shall, upon request, promptly provide such information to any Stockholder requesting
such information. 

        Section 4.03.    Waiver; Amendment.    No provision of this Agreement may be waived except by an instrument in
writing executed by the party against whom the waiver is to be effective. No provision of this Agreement may be amended or otherwise modified except by an instrument in writing executed by the Company
with approval of (i) a majority of the Board and (ii) Stockholders holding at least two-thirds of the then outstanding Common Shares. 

        Section 4.04.    Fees and Expenses.    Except as may be otherwise provided herein or in any other agreement
between or among any parties hereto, the fees and expenses incurred by any Stockholder in connection with this Agreement, any amendment or waiver hereof and the transactions contemplated hereby and
all matters related hereto shall be paid by such Stockholder, except the Company shall pay all fees and expenses of one counsel for all Stockholders
(selected by Stockholders holding the majority of the Company Securities held by all Stockholders) in connection with any amendment or waiver of this Agreement or any transactions related thereto. 

        Section 4.05.    Governing Law.    This Agreement shall be governed by, and construed in accordance with, the
laws of the State of New York, without regard to the conflicts of laws rules of such state. 

        Section 4.06.    Jurisdiction.    The parties hereby agree that any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for
the Southern District of New York or any New York State court sitting in New York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and
that any case of
action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of New York, and each of the parties hereby irrevocably consents to the jurisdiction of
such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or
hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an
inconvenient form. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the
foregoing, each party agrees that service of process on such party as provided in Section 4.02 shall be deemed effective service of process on such party. 

        Section 4.07.    WAIVER OF JURY TRIAL.    EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

14

 

        Section 4.08.    Specific Enforcement.    Each party hereto acknowledges that the remedies at law of the other
parties for a breach or threatened breach of this Agreement would be inadequate and, in recognition of this fact, any party to this Agreement, without posting any bond, and in addition to all other
remedies that may be available, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other
equitable remedy that may then be available. 

        Section 4.09.    Effectiveness.    This Agreement shall become effective upon the Effective Date of and as
defined in the Plan. 

        Section 4.10.    Entire Agreement.    This Agreement and the Stockholders Agreement constitute the entire
agreement among the parties hereto and supersede all prior and contemporaneous agreements and understandings, both oral and written, among the parties hereto with respect to the subject matter hereof
and thereof. 

        Section 4.11.    Severability.    If any term, provision, covenant or restriction of this Agreement is held by
a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable
manner so that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 

15

 

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its authorized officer and each Stockholder is deemed to have accepted and agreed this Agreement pursuant
to the terms of the Plan, in each case as of the day and year first above written. 

	 	 	MCLEODUSA INCORPORATED
	

 	
 	

/s/  JAMES THOMPSON      

	 	 	Name: James Thompson
	 	 	Title: Group VP & General Counsel & Secretary

16

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Aeries Finance-II Ltd.,
    as a Stockholder
	

 	
 	

 	

By:	

Patriarch Partners X, LLC,
 its Managing Agent
	

 	
 	

 	

By:	

/s/ Lynn Tilton

	 	 	 	 	Name:	Lynn Tilton
	 	 	 	 	Title:	Manager

17

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

McLeod Depository Corp,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Susan E. Atkins

	 	 	 	 	Name:	Susan E. Atkins
	 	 	 	 	Title:	President

18

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

3V Capital Master Fund Ltd
    as a Stockholder
	

 	
 	

 	

By:	

/s/ ILLEGIBLE

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 

19

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Kennett Capital,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Chris Goergen

	 	 	 	 	Name:	CHRIS GOERGEN
	 	 	 	 	Title:	Authorized Signatory
	

 	
 	

 	

By:	

/s/ Charles D. Mires

	 	 	 	 	Name:	CHARLES D. MIRES
	 	 	 	 	Title:	Authorized Signatory

20

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

AIMCO CDO, Series 2000-A
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Chris Goergen

	 	 	 	 	Name:	CHRIS GOERGEN
	 	 	 	 	Title:	Authorized Signatory
	

 	
 	

 	

By:	

/s/ Charles D. Mires

	 	 	 	 	Name:	CHARLES D. MIRES
	 	 	 	 	Title:	Authorized Signatory

21

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Banc of America Strategic Solutions, Inc.
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Joshua Podietz

	 	 	 	 	Name:	Joshua Podietz
	 	 	 	 	Title:	Vice President

22

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

BANC OF AMERICA SECURITIES LLC
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Jonathan M. Barnes

	 	 	 	 	Name:	Jonathan M. Barnes
	 	 	 	 	Title:	Associate

23

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Calder & Co.
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Vilma Pindling

	 	 	 	 	Name:	VILMA PINDLING
	 	 	 	 	Title:	SENIOR ASSISTANT AGENT

24

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Bayerische Hypo-und Vereinsbank AG, New York Branch
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Salvatore Esposito

	 	 	 	 	Name:	Salvatore Esposito
	 	 	 	 	Title:	Managing Director

25

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Bear Stearns & Co. Inc.
    as a Stockholder
	

 	
 	

 	

By:	

/s/ John E. McDermott

	 	 	 	 	Name:	JOHN E. McDERMOTT
	 	 	 	 	Title:	SENIOR MANAGING DIRECTOR

26

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

CREDIT SUISSE FIRST BOSTON INTERNATIONAL
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Irina Borisova

	 	 	 	 	Name:	Irina Borisova
	 	 	 	 	Title:	Vice President

27

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Credit Suisse, acting through its Cayman Branch
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Didier Siffer

	 	 	 	 	Name:	Didier Siffer
	 	 	 	 	Title:	Director
	

 	
 	

 	

By:	

/s/ Carol Flaton

	 	 	 	 	Name:	Carol Flaton
	 	 	 	 	Title:	Managing Director

28

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	
CypressTree Investment Parters I, Ltd.,
	

 	
 	

 	

By:	

CypressTree Investment Management Company, Inc.,

as Portfolio Manager.
	

 	
 	

 	

By:	

/s/ Robert Weeden

	 	 	 	 	Name:	Robert Weeden
	 	 	 	 	Title:	Managing Director

29

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

SIMSBURY CLO. LIMITED,
    as a Stockholder
	

 	
 	

 	

By:	

Babson Capital Management LLC under delegated authority from Massachusetts Mutual Life Insurance Company as Collateral Manager
	

 	
 	

 	

By:	

/s/ David P. Wells

	 	 	 	 	Name:	David P. Wells, CFA
	 	 	 	 	Title:	Managing Director

30

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Commonwealth of Massachusetts Pension Reserves Investment Management Board,

By: Fidelity Management Trust Company, as Investment Manager
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Geoffrey W. Johnson

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 

31

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Fidelity Advisor Series I: Fidelity Advisor Leveraged Company Stock Fund
    as a Stockholder
	

 	
 	

 	

By:	

/s/ John H. Costello

	 	 	 	 	Name:	John H. Costello
	 	 	 	 	Title:	Assistant Treasurer

32

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Fidelity Advisor Series II: Fidelity Advisor High Income Advantage
    as a Stockholder
	

 	
 	

 	

By:	

/s/ John H. Costello

	 	 	 	 	Name:	John H. Costello
	 	 	 	 	Title:	Assistant Treasurer

33

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Fidelity Securities Fund: Fidelity Leveraged Company Stock Fund
    as a Stockholder
	

 	
 	

 	

By:	

/s/ John H. Costello

	 	 	 	 	Name:	John H. Costello
	 	 	 	 	Title:	Assistant Treasurer

34

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Pension Investment Committee of General Motors for General Motors Employees Domestic Group Pension Trust
	

 	
 	

 	

By:	

Fidelity Management Trust Company

    as Investment Manager
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Geoffrey W. Johnson

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 

35

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

ML CLO XII PILGRIM AMERICA (CAYMAN) LTD,
    as a Stockholder
	

 	
 	

 	

By:	

ING Investments, LLC as its investment manager
	

 	
 	

 	

By:	

/s/ Robert Wilson

	 	 	 	 	Name:	Robert Wilson
	 	 	 	 	Title:	Senior Vice President

36

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

Jefferies & Company, LLC
	

 	
 	

 	

By:	

/s/ Robert J. Welch

	 	 	 	 	Name:	Robert J. Welch
	 	 	 	 	Title:	Senior Vice President

37

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

Jefferies Employees Opportunity Fund, LLC
	

 	
 	

 	

By:	

/s/ Robert J. Welch

	 	 	 	 	Name:	Robert J. Welch
	 	 	 	 	Title:	Chief Financial Officer

38

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

Jefferies Partners Opportunity Fund II, LLC
	

 	
 	

 	

By:	

/s/ Robert J. Welch

	 	 	 	 	Name:	Robert J. Welch
	 	 	 	 	Title:	Chief Financial Officer

39

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

Jefferies Partners Opportunity Fund, LLC
	

 	
 	

 	

By:	

/s/ Robert J. Welch

	 	 	 	 	Name:	Robert J. Welch
	 	 	 	 	Title:	Chief Financial Officer

40

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

KS Capital Parner, L.P.,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Jack Swain

	 	 	 	 	Name:	Jack Swain
	 	 	 	 	Title:	General Partner

41

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

KS International, Inc.,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Jack Swain

	 	 	 	 	Name:	Jack Swain
	 	 	 	 	Title:	General Partner

42

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

MERRILL LYNCH CREDIT PRODUCTS, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Pierre Batrouni

	 	 	 	 	Name:	PIERRE BATROUNI
	 	 	 	 	Title:	Vice President

43

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

ODYSSEY AMERICA REINSURANCE CORPORATION,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Donald L. Smith

	 	 	 	 	Name:	Donald L. Smith
	 	 	 	 	Title:	Senior Vice President

44

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Centurion CDO II, Ltd.

By: RiverSource Investments, LLC as Collateral Manager,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Vincent Pham

	 	 	 	 	Name:	Vincent Pham
	 	 	 	 	Title:	Director—Operations

45

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Sequils-Centurion V, Ltd.

By: RiverSource Investments, LLC as Collateral Manager,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Vincent Pham

	 	 	 	 	Name:	Vincent Pham
	 	 	 	 	Title:	Director—Operations

46

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

JPMorgan Chase Bank, N.A.,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Andrew Opel

	 	 	 	 	Name:	ANDREW OPEL
	 	 	 	 	Title:	AUTHORIZED SIGNATORY

47

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Seneca CBO II, L.P.,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Tom Haag

	 	 	 	 	Name:	Tom Haag
	 	 	 	 	Title:	PM

48

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Seneca CBO III, Limited,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Tom Haag

	 	 	 	 	Name:	Tom Haag
	 	 	 	 	Title:	PM

49

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

SOL LOAN FUNDING, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Mikus N. Kins

	 	 	 	 	Name:	Mikus N. Kins
	 	 	 	 	Title:	Attorney-in-fact

50

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

STRATEGIC VALUE MASTER FUND, LTD.

By: Strategic Value Partners, LLC

Its Investment Advisor,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Vivianne Hernandez

	 	 	 	 	Name:	Vivianne Hernandez
	 	 	 	 	Title:	Authorized Signatory

51

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Textron Financial Corporation,
    as a Stockholder
	

 	
 	

 	

By:	

/s/ Matthew J. Colgan

	 	 	 	 	Name:	Matthew J. Colgan
	 	 	 	 	Title:	Senior Vice President

52

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Sapphire Special Opportunities Fund, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

Wayzata Investment Partners, LLC,

its Manager
	

 	
 	

 	

By:	

/s/ Joseph M. Deignan

	 	 	 	 	Name:	Joseph M. Deignan
	 	 	 	 	Title:	Authorized Signatory

53

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Wayland Distressed Opportunities Fund I-C, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

Wayzata Investment Partners, LLC,

its Manager
	

 	
 	

 	

By:	

/s/ Joseph M. Deignan

	 	 	 	 	Name:	Joseph M. Deignan
	 	 	 	 	Title:	Authorized Signatory

54

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Wayland Distressed Opportunities Fund I-A, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

Wayzata Investment Partners, LLC,

its Manager
	

 	
 	

 	

By:	

/s/ Joseph M. Deignan

	 	 	 	 	Name:	Joseph M. Deignan
	 	 	 	 	Title:	Authorized Signatory

55

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Wayland Distressed Opportunities Fund I-B, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

Wayzata Investment Partners, LLC,

its Manager
	

 	
 	

 	

By:	

/s/ Joseph M. Deignan

	 	 	 	 	Name:	Joseph M. Deignan
	 	 	 	 	Title:	Authorized Signatory

56

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Wayland Recovery Fund, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

Wayzata Investment Partners, LLC,

its Manager
	

 	
 	

 	

By:	

/s/ Joseph M. Deignan

	 	 	 	 	Name:	Joseph M. Deignan
	 	 	 	 	Title:	Authorized Signatory

57

 

	 	 	STOCKHOLDER:
	

 	
 	

 	

NAME OF INSTITUTION:
	

 	
 	

 	

Wayzata Recovery Fund, LLC,
    as a Stockholder
	

 	
 	

 	

By:	

Wayzata Investment Partners, LLC,

its Manager
	

 	
 	

 	

By:	

/s/ Joseph M. Deignan

	 	 	 	 	Name:	Joseph M. Deignan
	 	 	 	 	Title:	Authorized Signatory

58

 
 

SCHEDULE I    
    

	NAME, ADDRESS AND TIN
 
	 	NUMBER OF SHARES

	McLeod Depository Corp.

Susan Atkins

JP Morgan Chase Bank, N.A.

270 Park Avenue, 20th Floor

New York, NY 10017

20-4057039	 	1,396,739
	

	

3V Capital Master Fund Ltd.

Mark Focht

Libertas Holdings LLC

1 Greenwich Office Park North

Greenwich, CT 06831

98-0422169	
 	

402,735
	

	

Kennett Capital Inc.

Tony Gallo

Allstate Investment Mgmt. Co.

3075 Sanders Road., Suite G3B

Northbrook, IL 60062

52-2145989	
 	

72,504
	

	

AIMCO CDO Series 2000-A

Tony Gallo

Allstate Investment Mgmt. Co.

3075 Sanders Road., Suite G3B

Northbrook, IL 60062

Offshore Entity	
 	

72,504
	

	

Banc of America Strategic Solutions, Inc.

Jason Cipriani

Banc of America Strategic Solutions, Inc.

214 N. Tyron St., Floor 17

Charlotte, NC 28255

52-1710675	
 	

1,341,604
	

	

Banc of America Securities LLC

Jon Barnes

Banc of America Securities LLC

214 N. Tryon St.

NC1-027-14-1

Charlotte, NC 28255

56-2058405	
 	

44,295
	

	 	 	 

	

Calder & Co.

Bank of Nova Scotia

Attn: Stephen Levi

1 Liberty Place, Floor 23

New York, NY 10006

98-6000210	
 	

643,235
	

	

Bayerische Hypo-und Vereinsbank AG, New York Branch

HVB Group

Attn: Sal Espisito

150 E. 42nd Street

New York, NY 10017

13-2774123	
 	

1,063,914
	

	

Bear, Stearns and Co. Inc.

Bear Stearns

Attn: Laura Tarrado

383 Madison Avenue, Floor 8

New York, NY 10179

13-3604093	
 	

834,727
	

	

Credit Suisse First Boston, International

CSFB International

Attn: Diane Richards/Melanie Harries

1 Cabot Square

London E14 4QJ

Offshore Entity	
 	

852,595
	

	

Credit Suisse, Cayman Islands Branch

Ryan Delaney

Credit Suisse, New York & Cayman Island Branches

11 Madison Avenue, Floor 10

New York, NY 10010

13-5015677	
 	

918,907
	

	

Cypress Tree Investment Partners I

Cypress Tree Investment Management

Attn: Damien Mount

One Boston Place, Floor 16

Boston, MA 02108

Offshore Entity	
 	

174,009
	

	 	 	 

	

Simsbury CLO, Limited

JP Morgan Chase Bank

4 New York Plaza

New York, NY 10004

Account C39900; FCC 10200733.3

Offshore Entity	
 	

72,504
	

	

Commonwealth of Massachusetts Pension Reserves Investment Management Board

John Roche

Operations Manager

Fidelity Investments

82 Devonshire Street—Z1D

Boston, MA 02109

04-3525740	
 	

484,779
	

	

Fidelity Advisor Series I: Fidelity Advisor Leveraged Company Stock Fund

John Roche

Operations Manager

Fidelity Investments

82 Devonshire Street—Z1D

Boston, MA 02109

04-3533877	
 	

149,007
	

	

Fidelity Advisor Series II: Fidelity Advisor High Income Advantage

John Roche

Operations Manager

Fidelity Investments

82 Devonshire Street—Z1D

Boston, MA 02109

04-2940573	
 	

4,914,174
	

	

Fidelity Securities Fund: Fidelity Leveraged Company Stock Fund

John Roche

Operations Manager

Fidelity Investments

82 Devonshire Street—Z1D

Boston, MA 02109

04-3533868	
 	

1,701,867
	

	 	 	 

	

Pension Investment Committee of General Motors for General Motors Employees Domestic Group Pension Trust

John Roche

Operations Manager

Fidelity Investments

82 Devonshire Street—Z1D

Boston, MA 02109

New York, NY 10004

13-3160892	
 	

2,123,877
	

	

ML CLO XII Pilgrim America (Cayman) Ltd.

ING Pilgrim Investments

Attn: Brian Stevens

7337 East Doubletree Ranch Road

Scottsdale, AZ 85258

Offshore Entity	
 	

116,006
	

	

Jefferies & Company, Inc.

Jefferies & Company, Inc.

Attn: Michael Egan

Metro Center, One Station Place

Stamford, CT 06902

95-2622900	
 	

818,956
	

	

Jefferies Employees Opportunity Fund

Jefferies & Company, Inc.

Attn: Michael Egan

Metro Center, One Station Place

Stamford, CT 06902

06-1567019	
 	

159,242
	

	

Jefferies Partners Opportunity Fund II

Jefferies & Company, Inc.

Attn: Michael Egan

Metro Center, One Station Place

Stamford, CT 06902

95-4736081	
 	

545,971
	

	

Jefferies Partners Opportunity Fund

Jefferies & Company, Inc.

Attn: Michael Egan

Metro Center, One Station Place

Stamford, CT 06902

95-4714499	
 	

750,710
	

	 	 	 

	

KS Capital Partners, LP

Mike Jemal

KS Capital Partners, LP

11 W. 42nd St., 30th Floor

New York, NY 10036

22-3003767	
 	

112,824
	

	

KS International, Inc.

Mike Jemal

KS International, Inc.

11 W. 42nd St., 30th Floor

New York, NY 10036

Offshore Entity	
 	

47,600
	

	

Merrill Lynch Credit Products LLC

Merrill Lynch Credit Products LLC

Attn: Brian Wilson

4 World Financial Center, Floor 22

New York, NY 10080

56-2313907	
 	

153,562
	

	

Odyssey America Reinsurance Corporation

Bank of New York

1 Wall Street, 2nd Floor Window

New York, NY 10286

Attn: Michael Antwi

47-0698507

For Account #357620

Odyssey America RE Corp.	
 	

1,804,369
	

	

Aeries Finance-II Ltd.

Aeries Finance-II Ltd.

c/o U.S. Bank Corporate Trust Services

One Federal Street, 3rd Floor

Boston, MA 02110

FCC: Aeries Finance-II Ltd.

Attn: Jon Warn

Offshore Entity	
 	

14,501
	

	

Centurion CDO II, Ltd.

RiverSource Investments, LLC

Attn: Robin Stancil

100 N. Sepulveda Blvd., Suite 650

El Segundo, CA 90245

13-6062541	
 	

43,502
	

	 	 	 

	

SEQUILS Centurion V, Ltd.

Chase Manhattan Bank

Account G-72953

4 New York Plaza, Ground Floor

New York, NY 10004

Offshore Entity	
 	

43,502
	

	

JP Morgan Chase Bank, N.A.

Andrew Faherty

JP Morgan Chase Bank, N.A.

270 Park Avenue, 17th Floor

New York, NY 10017

13-4994650	
 	

1,438,224
	

	

Seneca CBO II L.P.

Rene Vielmas

Seneca CBO II L.P.

600 Travis St., Floor 4

Houston, TX 77002

Offshore Entity	
 	

145,007
	

	

Seneca CBO III, Limited

Rene Vielmas

Seneca CBO III, Limited

600 Travis St., Floor 4

Houston, TX 77002

Offshore Entity	
 	

145,007
	

	

SOL Loan Funding LLC

LaSalle Bank N.A., as Collateral Administrator

135 S. LaSalle St., Suite 1511

Chicago, IL 60603

Attn: CDO Trust Services-Mikas Kins

13-5266470	
 	

508,551
	

	

Strategic Value Master Fund, Ltd.

Mark Dicintio

Strategic Value Master Fund, Ltd.

80 Field Point Rd.

Greenwich, CT 06830

76-0707813	
 	

22,147
	

	 	 	 

	

Textron Financial Corporation

Don Henderson

Textrou Financial Corporation

40 Westminster St.

Providence, RI 02903

05-6008768	
 	

437,665
	

	

Sapphire Special Opportunities Fund, LLC

Wayzata Investment Partners LLC

Attn: Susan D. Peterson

701 East Lake St., Suite 300

Wayzata, MN 55391

22-3895790	
 	

1,126,953
	

	

Wayland Distressed Opportunities Fund I-C LLC

Wayzata Investment Partners LLC

Attn: Susan D. Peterson

701 East Lake St., Suite 300

Wayzata, MN 55391

20-0984128	
 	

1,423,601
	

	

Wayland Distressed Opportunities Fund I-A, LLC

Wayzata Investment Partners LLC

Attn: Susan D. Peterson

701 East Lake St., Suite 300

Wayzata, MN 55391

11-3693643	
 	

268,933
	

	

Wayland Distressed Opportunities Fund I-B, LLC

Wayzata Investment Partners LLC

Attn: Susan D. Peterson

701 East Lake St., Suite 300

Wayzata, MN 55391

33-1086190	
 	

246,786
	

	

Wayland Recovery Fund, LLC

Wayzata Investment Partners LLC

Attn: Susan D. Peterson

701 East Lake St., Suite 300

Wayzata, MN 55391

22-3875940	
 	

1,114,579
	

	

WAYZATA RECOVERY FUND LLC

Wayzata Investment Partners LLC

Attn: Susan D. Peterson

701 East Lake St., Suite 300

Wayzata, MN 55391

20-1612509	
 	

1,247,826
	

 
 

FIRST AMENDMENT TO
  REGISTRATION RIGHTS AGREEMENT    
    

        This First Amendment to Registration Rights Agreement (the "First Amendment") is entered into as of September 22nd, 2006, by and among
McLeodUSA Incorporated, a Delaware corporation (the "Company"), and the holders of Common Stock who are parties hereto (the "Amending Stockholders"). 

        WHEREAS,
the Company and the holders of Common Stock listed on Schedule I thereto (the "Stockholders") entered into that certain Registration Rights Agreement, dated as of
January 6, 2006 (the "Registration Rights Agreement"); and 

        WHEREAS,
pursuant to Section 4.03 of the Registration Rights Agreement, the Registration Rights Agreement may be amended upon the approval of (i) a majority of the Board of
Directors of the Company (the "Board") and (ii) Stockholders holding at least two-thirds of the outstanding Common Shares; and 

        WHEREAS,
this First Amendment has been approved by the Board and has received the approval of the Amending Stockholders who represent in excess of two-thirds of the
outstanding Common Shares. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 

	1.
	Definitions.    Capitalized terms used but not defined in this First Amendment shall have the respective meanings specified in
the Registration Rights Agreement.

	2.
	Amendment.

	(a)
	Section 2.03(a)
is hereby amended in its entirety as follows: 

        Filing Registration Statements; Lock-Up Agreements.    (a) Prior to the earlier of (i) the sale, assignment
or other disposition by Fidelity of such number of Common Shares held by it that it no longer holds an aggregate of 20% or more of the then outstanding Common Stock and (ii) eighteen months
after the Effective Date, the Company may not file with the SEC any registration statement to register any equity securities of the Company (or securities convertible or exchangeable for equity of the
Company) (collectively, "Equity Securities") for the sale for its own account under the Securities Act (other than a registration on Form S-8 or S-4, or any successor
forms, relating to Common Shares issuable upon exercise of employee stock options or in connection with any employee benefit or similar plan of the Company or in connection with a direct or indirect
acquisition by the Company of another Person) and thereafter, the Company may so file such a registration statement so long as a majority of the members of the Company's Board and a majority of the
Stockholders approve such a filing. 

	(b)
	Section 3.01
is hereby amended in its entirety as follows: 

        Limitations on Subsequent Registration Rights.    The Company agrees that it shall not enter into any agreement (a) with
any holder or prospective holder of any securities of the Company that would allow such holder or prospective holder to include such securities in any Demand Registration unless, under the terms of
such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that their inclusion would not reduce the amount of the Registrable Securities
of the Stockholders included therein, (b) with any holder or prospective holder of any Equity Securities that would allow such holder or prospective holder to include such securities in any
Piggyback Registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that their inclusion would
not reduce the amount of the Registrable Securities 

 

of
the Stockholders included therein or (c) with any holder or prospective holder of any Equity Securities that is on terms that are otherwise more favorable than this Agreement to such holder
or prospective holder. 

	(c)
	All
references in the Registration Rights Agreement to the term "Agreement" shall be deemed for all purposes to refer to the Registration Rights Agreement, as amended by this First
Amendment.

	3.
	Effectiveness.    Except as specifically provided herein, the Registration Rights Agreement is in all respects unaffected by
this First Amendment. All of the terms, conditions and provisions of the Registration Rights Agreement shall be and remain in full force and effect.

	4.
	Counterparts.    This First Amendment may be executed simultaneously in any number of counterparts, each of which shall be
deemed an original, but all such counterparts shall together constitute one of the same instrument.

	5.
	Governing Law.    This First Amendment shall be governed by, and construed in accordance with, the laws of the State of New
York, without regard to the conflicts of laws rules of such state. 

2

 

        IN
WITNESS WHEREOF, the parties hereto have duly executed and approved this First Amendment as of the date first above written. 

	 	MCLEODUSA INCORPORATED
	

 	

By:	

/s/ Bernard Zuroff

	 	Name:	Bernard Zuroff
	 	Title:	Group Vice President—General Counsel and Secretary

3

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

McLeod Depository Corp
 as a Stockholder
	

 	

1,396,739
 Number of Common Shares Held
	

 	

By:	

/s/ Susan E. Atkins

	 	Name:	Susan E. Atkins
	 	Title:	President

4

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

JEFFERIES AND COMPANY, INC.
 as a Stockholder
	

 	

1,056,493
 Number of Common Shares Held
	

 	

By:	

/s/ Robert J. Welch

	 	Name:	Robert J. Welch
	 	Title:	Senior Vice President

Jefferies & Co., Inc.

5

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

JEFFERIES PARTNERS OPPORTUNITY FUND, LLC
 as a Stockholder
	

 	

798,812
 Number of Common Shares Held
	

 	

By:	

/s/ Robert J. Welch

	 	Name:	Robert J. Welch
	 	Title:	Chief Financial Officer

Jefferies Partners

Opportunity Fund, LLC

6

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

JEFFERIES PARTNERS OPPORTUNITY FUND II, LLC
 as a Stockholder
	

 	

566,898
 Number of Common Shares Held
	

 	

By:	

/s/ Robert J. Welch

	 	Name:	Robert J. Welch
	 	Title:	Chief Financial Officer

Jefferies Partners

Opportunity Fund II, LLC

7

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

JEFFERIES EMPLOYEES OPPORTUNITY FUND, LLC
 as a Stockholder
	

 	

154,609
 Number of Common Shares Held
	

 	

By:	

/s/ Robert J. Welch

	 	Name:	Robert J. Welch
	 	Title:	Chief Financial Officer

Jefferies Employees

Opportunity Fund, LLC

8

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Wayland Distressed Opportunities Fund I-C, LLC
 as a Stockholder
	

 	

1,423,601
 Number of Common Shares Held
	

 	

By:	

Wayzata Investment Partners LLC,

its Manager
	

 	

By:	

/s/ Steven M. Adams

	 	Name:	Steven M. Adams
	 	Title:	Authorized Signatory

9

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Wayland Distressed Opportunities Fund I-B, LLC
 as a Stockholder
	

 	

246,786
 Number of Common Shares Held
	

 	

By:	

Wayzata Investment Partners LLC,

its Manager
	

 	

By:	

/s/ Steven M. Adams

	 	Name:	Steven M. Adams
	 	Title:	Authorized Signatory

10

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Wayzata Recovery Fund, LLC
 as a Stockholder
	

 	

1,247,826
 Number of Common Shares Held
	

 	

By:	

Wayzata Investment Partners LLC,

its Manager
	

 	

By:	

/s/ Steven M. Adams

	 	Name:	Steven M. Adams
	 	Title:	Authorized Signatory

11

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Wayzata Opportunities Fund Offshore, L.P.
 as a Stockholder
	

 	

37,500
 Number of Common Shares Held
	

 	

By:	

Wayzata Offshore GP, LLC, its General Partner
	 	By:	Wayzata Investment Partners LLC, its Manager
	

 	

By:	

/s/ Steven M. Adams

	 	Name:	Steven M. Adams
	 	Title:	Authorized Signatory

12

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Wayzata Opportunities Fund, LLC
 as a Stockholder
	

 	

4,191,363
 Number of Common Shares Held
	

 	

By:	

Wayzata Investment Partners LLC, its Manager
	

 	

By:	

/s/ Steven M. Adams

	 	Name:	Steven M. Adams
	 	Title:	Authorized Signatory

13

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Fidelity Advisor Series I: Fidelity Advisor Leveraged Company Stock Fund
 as a Stockholder
	

 	

149,007
 Number of Common Shares Held
	

 	

By:	

/s/ John H. Costello

	 	Name:	 
	 	Title:	 

14

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Fidelity Advisor Series II: Fidelity Advisor High Income Advantage Fund
 as a Stockholder
	

 	

4,914,174
 Number of Common Shares Held
	

 	

By:	

/s/ John H. Costello

	 	Name:	 
	 	Title:	 

15

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Fidelity Securities Fund: Fidelity Leveraged Company Stock Fund
 as a Stockholder
	

 	

1,701,867
 Number of Common Shares Held
	

 	

By:	

/s/ John H. Costello

	 	Name:	 
	 	Title:	 

16

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Pension Investment Committee of General Motors for General Motors Employees Domestic Group Pension Trust
 as a Stockholder
	

 	

2,123,877
 Number of Common Shares Held
	

 	

By:	

/s/ Geoffrey W. Johnson

	 	Name:	Geoffrey W. Johnson
	 	Title:	Vice President

17

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Commonwealth of Massachusetts Pension Reserves Investment Management Board
 as a Stockholder
	

 	

484,779
 Number of Common Shares Held
	

 	

By:	

/s/ Geoffrey W. Johnson

	 	Name:	Geoffrey W. Johnson
	 	Title:	Vice President

18

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

Banc of America Strategic Solutions, Inc.
 as a Stockholder
	

 	

        
 Number of Common Shares Held
	

 	

By:	

/s/ Robert Lang

	 	Name:	Robert Lang
	 	Title:	Managing Director

19

 

	 	Banc of America Strategic Solutions, Inc.
 as a Stockholder
	 	        
 Number of Common Shares Held
	

 	

By:	

/s/ Robert Lang

	 	Name:	Robert Lang
	 	Title:	Managing Director

20

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

SOL Loan Funding LLC
 as a Stockholder
	

 	

508,551
 Number of Common Shares Held
	

 	

By:	

/s/ [ILLEGIBLE]

	 	Name:	 
	 	Title:	 

21

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

3V Capital Master Fund Ltd
 as a Stockholder
	

 	

402,735
 Number of Common Shares Held
	

 	

By:	

/s/ Scott A. Stagg

	 	Name:	Scott A. Stagg
	 	Title:	Managing Member

22

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

JPMorgan Chase Bank, N.A.
 as a Stockholder
	

 	

1,438,224
 Number of Common Shares Held
	

 	

By:	

/s/ Andrew Opel

	 	Name:	ANDREW OPEL
	 	Title:	AUTHORIZED SIGNATORY

23

 

	 	STOCKHOLDER:
	

 	

NAME OF INSTITUTION:
	

 	

BEAR, STEARNS & CO. INC.
 as a Stockholder
	

 	

1,487,586
 Number of Common Shares Held
	

 	

By:	

/s/ John E. McDermott

	 	Name:	JOHN E. McDERMOTT
	 	Title:	SENIOR MANAGING DIRECTOR

24

QuickLinks

Exhibit 4.5

REGISTRATION RIGHTS AGREEMENT dated as of January 6, 2006 among MCLEODUSA INCORPORATED and THE HOLDERS OF COMMON STOCK LISTED ON SCHEDULE I

TABLE OF CONTENTS

REGISTRATION RIGHTS AGREEMENT

W I T N E S S E T H

ARTICLE 1 DEFINITIONS

ARTICLE 2 REGISTRATION RIGHTS

ARTICLE 3 CERTAIN COVENANTS AND AGREEMENTS

ARTICLE 4 MISCELLANEOUS

SCHEDULE I

FIRST AMENDMENT TO REGISTRATION RIGHTS AGREEMENTExhibit 4.6

 

STOCKHOLDERS AGREEMENT

 dated as of

January 6, 2006

among

MCLEODUSA INCORPORATED

and 

THE HOLDERS OF COMMON STOCK

LISTED ON SCHEDULE I

 

 

TABLE OF CONTENTS

 

	
   

  	
  PAGE

  
	
   

  
	
  Article 1

  
	
  DEFINITIONS

  
	
   

  	
   

  
	
  Section
  1.01. Definitions

  	
  1

  
	
  Section
  1.02. Other Definitional and Interpretative Provisions

  	
  5

  
	
   

  	
   

  
	
  Article 2

  
	
  RESTRICTIONS ON TRANSFER

  
	
   

  	
   

  
	
  Section
  2.01. General Restrictions On Transfer

  	
  5

  
	
  Section
  2.02. Permitted Transfers

  	
  6

  
	
  Section
  2.03. No Transfers to a Competitor

  	
  6

  
	
  Section
  2.04. Legends

  	
  7

  
	
   

  	
   

  
	
  Article 3

  
	
  TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS

  
	
   

  	
   

  
	
  Section
  3.01. Tag-Along Rights.

  	
  8

  
	
  Section
  3.02. Drag-along Rights

  	
  10

  
	
  Section
  3.03. Additional Conditions to Tag-Along Sales and
  Drag-Along Sales

  	
  12

  
	
   

  	
   

  
	
  Article 4

  
	
   

  	
   

  
	
  CERTAIN COVENANTS AND AGREEMENTS

  
	
   

  	
   

  
	
  Section
  4.01. Confidentiality

  	
  13

  
	
  Section
  4.02. Reports

  	
  14

  
	
  Section
  4.03. Provision of Information to Prospective
  Transferee of Common Shares

  	
  15

  
	
  Section
  4.04. Charter or Bylaw Provisions

  	
  15

  
	
  Section
  4.05. Conflicting Agreements

  	
  16

  
	
   

  	
   

  
	
  Article 5

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  Section
  5.01. Termination

  	
  16

  
	
  Section
  5.02. Survival

  	
  16

  
	
  Section
  5.03. Binding Effect; Assignability; Benefit

  	
  16

  
	
  Section
  5.04. Notices

  	
  17

  
	
  Section
  5.05. Waiver; Amendment

  	
  17

  

 

 

	
   

  	
  PAGE

  
	
   

  	
   

  
	
  Section
  5.06. Fees and Expenses

  	
  18

  
	
  Section
  5.07. Governing Law

  	
  18

  
	
  Section
  5.08. Jurisdiction

  	
  18

  
	
  Section
  5.09. WAIVER OF JURY TRIAL

  	
  18

  
	
  Section
  5.10. Specific Enforcement

  	
  18

  
	
  Section
  5.11. Effectiveness

  	
  19

  
	
  Section
  5.12. Entire Agreement

  	
  19

  
	
  Section
  5.13. Severability

  	
  19

  
	
   

  	
   

  
	
  Exhibit A     
  Tag-Along Notice

  	
   

  
	
  Exhibit B     
  Tag-Along Response Notice

  	
   

  
	
  Exhibit C     
  Drag-Along Sale Notice

  	
   

  
	
  Exhibit D     
  Joinder Agreement

  	
   

  

 

ii

 

STOCKHOLDERS AGREEMENT

 

AGREEMENT dated as of January 6, 2006 among
(i) McLeodUSA Incorporated, a Delaware corporation (the “Company”), and (ii)
the holders of Common Stock listed on Schedule I hereto and any other Person
that acquires any Common Stock from any such holders, directly or indirectly,
and executes and delivers to the Company a joinder agreement in the form
attached hereto as Exhibit D at any time after the date hereof (collectively,
the “Stockholders”).

 

W I T N E S S E T H :

 

WHEREAS, on October 28, 2005 (the “Petition Date”), the Company and certain of its Subsidiaries
filed with the United States Bankruptcy Court for the Northern District of
Illinois (i) voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code and (ii) a Joint Prepackaged Plan of Reorganization (the “Plan”);

 

WHEREAS, pursuant to the Plan, the Company
has been authorized and directed to enter into this Agreement, and each Holder
of an Allowed Class 5 Claim (as such terms are defined in the Plan) and the
Company are bound, and are deemed to be bound, by this Agreement and entitled
to the benefit of and the right to enforce this Agreement.

 

WHEREAS, pursuant to the Plan, each Holder of
an Allowed Class 5 Claim (as such terms are defined in the Plan) must execute
this Agreement prior to receiving its pro rata distribution of Common Stock (as
defined below).

 

WHEREAS, each Stockholder is on the date
hereof the holder of the number of shares of Common Stock as is set forth on
Schedule I attached hereto.

 

NOW, THEREFORE, in accordance with the Plan
and in consideration of the covenants and agreements contained herein, the
parties hereto agree as follows:

 

ARTICLE 1

DEFINITIONS

 

Section 1.01. Definitions. The
following terms, as used herein, have the following meanings:

 

“Acting in Concert” means acting pursuant to
an agreement, arrangement or understanding, in each case whether formal or
informal, for the purpose of acquiring, holding, voting or disposing of Common
Stock.

 

 

“Affiliate” shall have the
meaning ascribed to the term “Affiliated person” in Section 2(a)(3) of the
Investment Company Act of 1940, as amended, and shall include any fund or
account sharing a common Investment Adviser. The term “Affiliated”
shall have the correlative meaning.

 

“Beneficial Owner” shall be determined
pursuant to Rules 13d-3 and 13d-5 under the Exchange Act, and “Beneficial Ownership” shall mean any of the
rights of a Beneficial Owner.

 

“Board” means the board of
directors of the Company.

 

“Business Day” means any day
except a Saturday, Sunday or other day on which commercial banks in New York
City are authorized by law to close.

 

“control”
(including the terms “controlling”, “controlled by” and “under common control with”)
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a person, whether through the
ownership of voting shares, by contract, or otherwise.

 

“Common Shares” means shares
of Common Stock.

 

“Common Stock” means the
common stock, par value $0.01 per share, of the Company issued pursuant to the
Plan and any stock into which such Common Stock may hereafter be converted or
changed (including by way of recapitalization, merger, consolidation, other
reorganization or otherwise).

 

“Competitor”
means, at the time a Transfer is contemplated, (i) any provider of
telecommunications services to third parties, which provider serves customers
in (x) any state in which the Company or any of its Affiliates then serves
customers, (y) any state that is contiguous to any state referred to in clause
(x) or (z) Canada, or (ii) any Person if the primary business of such Person or
of such Person and its Affiliates is the provision of telecommunications
services to third parties.

 

“Competitor Affiliate”
means, with respect to any Competitor, any other Person directly or indirectly
controlling, controlled by or under common control with such Competitor other
than:

 

(i) any such Person which constitutes a
commercial bank, savings and loan association, savings bank, insurance company,
lease financing company, commercial finance company or mutual fund (or any subsidiary
of any such entity to which troubled credits are transferred) if (x) such
Person controls such Competitor, (y) such Person is not itself controlled by or
under common control with any Competitor not controlled by such Person and (z)
such Person and its Affiliates, taken together, are not engaged in, as a
principal line of business, the business of acquiring debt or equity of
financially distressed companies;

 

 

(ii) any Person listed on Schedule II
attached hereto and any Investment Adviser of such Person; or

 

(iii) any investment fund or separate account
that is managed or advised by (x) the same Investment Adviser as any holder or
Beneficial Owner of Common Stock as of the Effective Date or (y) an Affiliate
of such Investment Adviser.

 

For purposes of this definition, (1) an
Investment Adviser to an investment fund, and any Person who directly or
indirectly controls, is controlled by or under common control with such
Investment Adviser, shall be deemed to be directly or indirectly controlling,
controlled by or under common control with such investment fund, and (2) a
Person shall not be considered to be in control of another Person if the first
Person and its Affiliates (A) Beneficially Own less than 15% of the voting
securities of the second Person, (B) do not possess, directly or indirectly,
the power to direct or cause the direction of the management and policies of
the second Person, whether by contract or otherwise, and (C) are not deemed to
be in control of the second Person by virtue of clause (1) of this sentence.

 

“Effective Date”
means the Effective Date of and as defined in the Plan.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Financial Officer”
means the chief financial officer, principal accounting officer, treasurer or
controller of the Company.

 

“Investment Adviser”
shall have the meaning ascribed to such term in Section 2(a)(20) of the
Investment Company Act of 1940, as amended.

 

“Person” means an individual,
corporation, limited liability company, partnership, fund, account,
association, trust or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

 

“Public Company” means (i) the Company has
become subject to the reporting requirements of the Exchange Act, (ii) a
registration statement has become effective for all of the Common Stock and
(iii) the Common Stock has been listed on a national exchange or approved for
quotation on the Nasdaq National Market.

 

“Public
Offering” means a firmly underwritten public offering of Common
Shares pursuant to an effective registration statement under the Securities Act
(other than pursuant to a registration statement on Form S-4 or Form S-8 or any
similar or successor form), if such offering results in the

 

 

Common Stock
being listed and traded on a national exchange or approved for quotation and
traded on the Nasdaq National Market.

 

“Registration Rights Agreement”
means that certain Registration Rights Agreement, dated as of the Effective
Date, among the Company and the holders of Common Stock listed on Schedule I
thereto.

 

“Related Transactions” means transactions
executed pursuant to a common agreement, arrangement or understanding, in each
case whether formal or informal.

 

“Securities Act” means the
Securities Act of 1933, as amended.

 

“Shelf Registration
Statement” means a shelf registration statement that complies with
the provisions of Rule 415 under the Securities Act.

 

“Subsidiary” means, with
respect to any Person, any entity of which securities or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are at the time
directly or indirectly owned by such Person.

 

“Tag-Along Portion” means, for
any Tagging Person, that number of securities equal to the product of (i) the
aggregate number of Common Shares owned by the Tagging Person immediately prior
to the applicable Tag-Along Sale and (ii) a fraction the numerator of which is
the maximum number of Common Shares proposed by the Tag-Along Seller to be
Transferred in such Tag-Along Sale and the denominator of which is the
aggregate number of Common Shares owned by all Stockholders at such time.

 

“Third Party” means a
prospective Transferee of Common Shares in an arm’s-length transaction from one
or more Stockholders, other than an Affiliate of any such Stockholders.

 

“Transfer” means, with respect
to any Common Shares, (i) when used as a verb, to sell, assign, dispose of,
exchange, pledge, encumber, hypothecate or otherwise transfer such Common
Shares or any participation or interest therein, whether directly or
indirectly, or agree or commit to do any of the foregoing and (ii) when used as
a noun, a direct or indirect sale, assignment, disposition, exchange, pledge, encumbrance,
hypothecation, or other transfer of such Common Shares or any participation or
interest therein or any agreement or commitment to do any of the foregoing. The
terms “Transferee”, Transferor”,
“Transferred”, and other forms of the
word “Transfer” shall have the correlative
meanings.

 

“Twenty Percent Holder”
means (i) any Person or group of
Affiliated Persons who, as a Holder of an Allowed Class 5 Claim (as such terms
are defined

 

 

in the Plan), became entitled to Beneficially Own not less than 20% of
the Common Stock immediately after giving effect to consummation of the Plan on
the Effective Date; provided, however,
that Twenty Percent Holder shall exclude any Person or group of Affiliated
Persons who did not hold all or substantially all of such Class 5 Claim on the
Petition Date, (ii) Fidelity Management & Research Co. and its Affiliates
and (iii) Wayzata Investment Partners LLC and its Affiliates.

 

Section 1.02. Other Definitional and
Interpretative Provisions. The words “hereof”, “herein” and “hereunder”
and words of like import used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The captions
herein are included for convenience of reference only and shall be ignored in
the construction or interpretation hereof. References to Articles, Sections,
Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of
this Agreement unless otherwise specified. All Exhibits and Schedules annexed
hereto or referred to herein are hereby incorporated in and made a part of this
Agreement as if set forth in full herein. Any capitalized terms used in any
Exhibit or Schedule but not otherwise defined therein, shall have the meaning
as defined in this Agreement. Any singular term in this Agreement shall be
deemed to include the plural, and any plural term the singular. Whenever the
words “include”, “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation”, whether or
not they are in fact followed by those words or words of like import. “Writing”,
“written” and comparable terms refer to printing, typing and other means of
reproducing words (including electronic media) in a visible form. References to
any agreement or contract are to that agreement or contract as amended,
modified or supplemented from time to time in accordance with the terms hereof
and thereof. References to any Person include the successors and permitted
assigns of that Person. References from or through any date mean, unless
otherwise specified, from and including or through and including, respectively.

 

ARTICLE 2. 

RESTRICTIONS ON TRANSFER

 

Section 2.01. General Restrictions On
Transfer. (a) Each Stockholder agrees that it shall not Transfer any
Common Shares (or solicit any offers in respect of any Transfer of any Common
Shares), except in compliance with or pursuant to an exemption from the
requirements of the Securities Act and any other applicable securities or “blue
sky” laws, and the terms and conditions of this Agreement.

 

(b)      Any attempt to Transfer
any Common Shares prior to the Termination Date (as defined below) not in
compliance with this Agreement shall

 

 

be null and void, and the Company shall not,
and shall cause any transfer agent not to, give any effect in the Company’s
stock records to such attempted Transfer.

 

Section 2.02. Permitted Transfers.
Subject to Sections 2.03, 3.01 and 3.02, any Stockholder may at any time
Transfer any or all of its Common Shares without the consent of the Board or
any other Stockholder or group of Stockholders so long as (a) prior to the
consummation thereof, the proposed Transferee delivers to the Company, in form
and substance reasonably acceptable to the Company, (i) if the proposed
Transferee is not already party to this Agreement, an agreement to be bound by
the terms of this Agreement in the form of Exhibit A hereto, (ii) if the
proposed Transferee is not a Competitor or Competitor Affiliate, a written
representation from the proposed Transferee to that effect, (iii) if the
proposed Transferee is a Competitor or Competitor Affiliate, a written
representation that the proposed Transfer does not violate Section 2.03,
together with such documentation as may be reasonably requested by the Company
to verify the accuracy of such certification and (iv) if no Tag-Along Notice
(as defined below) has been delivered in accordance with Section 3.01 with
respect to such proposed Transfer, (A) a written certification by the proposed
Transferor confirming that the proposed Transfer would not constitute a
Tag-Along Sale (as defined below) and (B) a written certification by the
proposed Transferee confirming that the Transferee(s), together with its
Affiliates and Persons with whom they are Acting in Concert, would not, after giving
effect to such Transfer, Beneficially Own at least 30% of the outstanding
Common Shares, provided, that this Section
2.02(a) shall not apply to Transfers solely among Persons listed on Schedule II
hereto that have a common Investment Adviser as of the Petition Date and (b)
the Transfer to such Transferee is in compliance with the Securities Act and
any other applicable securities or “blue sky” laws. If requested by the Company
in its reasonable judgment, an opinion of counsel, in form and substance reasonably
acceptable to the Company, for such Transferor shall be supplied to the Company
at such Transferor’s expense to the effect that such Transfer is being made
pursuant to an exemption from the registration requirements under the
Securities Act and in compliance with any other applicable securities or “blue
sky” laws. Upon becoming a party to this Agreement, the permitted Transferee of
a Stockholder shall be substituted for, and shall enjoy the same rights and be
subject to the same obligations as, the Transferor hereunder with respect to
the Common Shares Transferred pursuant to such Transfer.

 

Section 2.03. No Transfers to a
Competitor. Notwithstanding anything in this Agreement to the
contrary, no Stockholder may Transfer any Common Shares to a Competitor or a
Competitor Affiliate if, after such Transfer, such Competitor or Competitor
Affiliate, together with the Affiliates of such Competitor Affiliates, would
Beneficially Own at least 20% of the outstanding Common Shares unless (i) such
Transfer is approved by the Board and the Stockholders holding at least
two-thirds of the then outstanding Common Shares or (ii) (x) the Competitor or

 

 

Competitor Affiliate and its Affiliates will
be, after such Transfer, the Beneficial Owners of a majority of the outstanding
Common Shares after such Transfer and (y) the Competitor or Competitor
Affiliate, as the case may be, has offered to purchase all of the then
outstanding Common Shares on the same terms and conditions offered to such
Stockholder and purchases, simultaneously with such Transfer, all such Common
Shares that are tendered to it at or prior to the time of such Transfer. For
the avoidance of doubt, any Stockholder that initially declines the offer
described in clause (ii) of the preceding sentence may nevertheless tender
outstanding Common Shares at the time of such Transfer and such Common Shares
will be purchased by the Competitor or Competitor Affiliate, as the case may
be, on the same terms and conditions and simultaneously with such Transfer.

 

Section 2.04. Legends. Each
certificate evidencing Common Stock subject to the terms hereof and each
certificate issued in exchange for or upon the Transfer of any such Common
Stock shall be stamped or otherwise imprinted with a legend in substantially
the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AND OTHER OBLIGATIONS (INCLUDING THE OBLIGATION TO
SELL SUCH SECURITIES UPON AN APPROVED SALE) SET FORTH IN THE STOCKHOLDERS
AGREEMENT, DATED AS OF JANUARY 6, 2006, AS THE SAME MAY BE AMENDED OR MODIFIED
FROM TIME TO TIME, AMONG THE ISSUER OF THESE SECURITIES (THE “COMPANY”) AND ITS
STOCKHOLDERS, AND IN THE CERTIFICATE OF INCORPORATION OF THE COMPANY. ANY
PURPORTED TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE THAT FAILS
TO COMPLY WITH SUCH RESTRICTIONS AND OBLIGATIONS SHALL BE VOID AND OF NO EFFECT.
A COPY OF SUCH STOCKHOLDERS AGREEMENT AND CERTIFICATE OF INCORPORATION SHALL BE
FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN
REQUEST.”

 

Upon the Termination Date, the holder of any
certificate representing Common Stock and bearing such legend shall be entitled
to receive from the Company, without expense, new securities of like tenor not
bearing the legend set forth above.

 

 

ARTICLE 3

TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS

 

Section 3.01. Tag-Along Rights.
(a) Subject to Section 3.03, if any Stockholder or Stockholders (the “Tag-Along Seller”) propose to Transfer
Beneficial Ownership of Common Shares (A) representing at least 30% of the then
outstanding Common Shares in a single transaction or in a series of Related
Transactions to a Transferee or group of Affiliated Transferees
and/or to Transferees who are Acting in Concert (excluding, in each case, Transferees
who are Affiliates of the Tag-Along Seller) (a “Block  Tag-Along Sale”)
or (B) to a Transferee or group of Affiliated Transferees or Transferees
Acting in Concert (excluding Transferees who are Affiliates of the
Tag-Along Seller), who, together with any Affiliates thereof and any Persons
with whom such Transferee(s) or Affiliates thereof is/are Acting in Concert,
would, after giving effect to such Transfer, Beneficially Own at least 30% of
the outstanding Common Shares (a “Threshold
Tag-Along Sale” and together with the Block Tag-Along Sale, each a “Tag-Along Sale”),

 

(i)    not less than 10 Business
Days prior to the expected date of consummation of such Transfer, the Tag-Along
Seller shall provide each other Stockholder written notice, in the form of
Exhibit A hereto, of the terms and conditions of such proposed Transfer (“Tag-Along
Notice”) and each other Stockholder shall be offered the
opportunity to participate in such Transfer in accordance with Sections 3.01
and 3.03, and

 

(ii)   each other Stockholder may
elect, at its option, to participate in the proposed Transfer in accordance
with this Section 3.01 and Section 3.03 (each such electing other Stockholder,
a “Tagging
Person”).

 

The Tag-Along Notice shall identify the
number of Common Shares proposed by the Tag-Along Seller to be Transferred in
such Tag-Along Sale (“Tag-Along Offer”), the consideration
for which the Transfer is proposed to be made, and all other material terms and
conditions of the Tag-Along Offer, including the form of the proposed
agreement, if any, and a firm offer by the proposed Transferee to purchase
Common Shares from the Stockholders in accordance with this Section 3.01 and
Section 3.03.

 

From the date of its receipt of the Tag-Along
Notice, each Tagging Person shall have the right (a “Tag-Along Right”),
exercisable by written notice in the form of Exhibit B hereto (“Tag-Along
Response Notice”) given to the Tag-Along Seller within 10
Business Days after its receipt of the Tag-Along Notice (the “Tag-Along
Notice Period”), to request that the Tag-Along Seller include
in such Tag-Along Sale any portion or all of such Tagging Person’s Tag-Along
Portion, and the Tag-Along Seller shall include the number of Common Shares
proposed by the Tag-Along Seller to be Transferred as set forth in the Tag-Along

 

 

Notice
(reduced to the extent necessary, so that each Tagging Person shall be able to
include its Tag-Along Portion) and such additional Common Shares as permitted
by Section 3.01(d). Each Tag-Along Response Notice shall include instructions
for payment or delivery of the purchase price for the Common Shares to be
Transferred in such Tag-Along Sale. Each Tagging Person that exercises its
Tag-Along Rights hereunder shall deliver to the Tag-Along Seller, with its
Tag-Along Response Notice, the certificates representing the Common Shares of
such Tagging Person to be included in the Tag-Along Sale, together with a
limited power-of-attorney authorizing the Tag-Along Seller to Transfer such
Common Shares on the terms set forth in the Tag-Along Notice or, if such
delivery is not permitted by applicable law, an unconditional agreement to
deliver such Common Shares pursuant to this Section 3.01(a) at the closing for
such Tag-Along Sale against delivery to such Tagging Person of the
consideration therefor. Delivery of the Tag-Along Response Notice with such
certificate or certificates and limited power-of-attorney shall constitute an
irrevocable acceptance of the Tag-Along Offer by such Tagging Person, subject
to the provisions of this Section 3.01 and Section 3.03.

 

If, at the end of a 105-day period after such
delivery of such Tag-Along Notice (which 105-day period shall be extended if
any of the transactions contemplated by the Tag-Along Offer are subject to
regulatory approval until the expiration of five Business Days after all such
approvals have been received, but in no event later than 120 days following
delivery of the Tag-Along Notice by the Tag-Along Seller), the Tag-Along Seller
has not completed the Transfer of all Common Shares proposed to be Transferred
by the Tag-Along Seller and all Tagging Persons on substantially the same terms
and conditions set forth in the Tag-Along Notice, the Tag-Along Seller shall
(i) return to each Tagging Person the limited power-of-attorney and all
certificates representing the Common Shares that such Tagging Person delivered
for Transfer pursuant to this Section 3.01(a) and any other documents in the
possession of the Tag-Along Seller executed by the Tagging Persons in
connection with the proposed Tag-Along Sale, and (ii) not conduct any Transfer
of Common Shares without again complying with this Agreement.

 

(b)      Concurrently with the
consummation of the Tag-Along Sale, the Tag-Along Seller shall (i) notify the
Tagging Persons thereof, (ii) remit to the Tagging Persons the total
consideration for the Common Shares of the Tagging Persons Transferred pursuant
thereto (net of any fees and expenses as provided in Section 3.03), with the
cash portion of the purchase price paid by wire transfer of immediately
available funds in accordance with the wire transfer instructions in the
applicable Tag-Along Response Notices and (iii) promptly after the consummation
of such Tag-Along Sale, furnish to each Tagging Person a certification that the
Tag-Along Sale was consummated for the same consideration and under the same
material terms and conditions as were set forth in the Tag-Along Notice, or if
such Tag-Along Sale was consummated for

 

 

different consideration than that set forth
in the Tag-Along Notice (as permitted by Section 3.01(e)), a certification
setting forth such consideration.

 

(c)       If at the termination of
the Tag-Along Notice Period any Stockholder shall not have elected to
participate in the Tag-Along Sale, such Stockholder shall be deemed to have
waived its rights under Section 3.01(a) with respect to the Transfer of its
Common Shares pursuant to such Tag-Along Sale.

 

(d)      If (i) any Stockholder
declines to exercise its Tag-Along Rights or (ii) any Tagging Person elects to
exercise its Tag-Along Rights with respect to less than such Tagging Person’s
Tag-Along Portion, each Tag-Along Seller and Tagging Person shall be entitled
to Transfer, pursuant to the Tag-Along Offer, a pro rata share of the number of
Common Shares constituting, as the case may be, the Tag-Along Portion of such
Tagging Person or the portion of such Tagging Person’s Tag-Along Portion with
respect to which Tag-Along Rights were not exercised.

 

(e)       The Tag-Along Seller
shall Transfer, on behalf of itself and each Tagging Person, the Common Shares
subject to the Tag-Along Offer and elected to be Transferred on substantially
the same terms and conditions set forth in the Tag-Along Notice within 105 days
(or such longer period as extended under Section 3.01(a)) of delivery of the
Tag-Along Notice, provided that the
price payable in any such Transfer may exceed the price specified in the
Tag-Along Notice by up to 10%; provided, further,
that the Tag-Along Seller shall not be required to provide any indemnity,
representations, warranties or otherwise assume any obligations with respect to
the Common Shares of any Tagging Person.

 

(f)       Notwithstanding anything
contained in this Section 3.01, there shall be no liability on the part of the
Tag-Along Seller to the Tagging Persons (other than the obligation to return
any certificates evidencing Common Shares and limited powers-of-attorney
received by the Tag-Along Seller) if the Transfer of Common Shares pursuant to
Section 3.01 is not consummated for whatever reason. Whether to effect a
Transfer of Common Shares pursuant to this Section 3.01 by the Tag-Along Seller
is in the sole and absolute discretion of the Tag-Along Seller.

 

Section 3.02. Drag-along Rights.
(a)   Subject to Section 3.03, if (i) any
Stockholder or Stockholders (the “Drag-Along Seller”) propose to
Transfer a number of Common Shares owned by the Drag-Along Seller in a single
transaction or in a series of Related Transactions (a “Drag-Along
Sale”) to a Third Party other than a Twenty Percent Holder (a “Drag-Along Transferee”) in a bona fide sale, (ii) after such
Transfer, such Drag-Along Transferee would Beneficially Own at least 50% of the
outstanding Common Shares, (iii) a resolution has been duly passed by the Board
approving the Drag-Along Sale as being fair to all Stockholders and (iv) the
Drag-Along Sale has been approved by

 

 

Stockholders holding at least two-thirds of
the then outstanding Common Shares, the Drag-Along Seller may at its option (A)
sell all of the Common Shares owned by the Drag-Along Seller and (B) require
all Stockholders other than the Drag-Along Seller (the “Drag-Along
Stockholders”) to Transfer all of the Common Shares owned by each
Drag-Along Stockholder for the same consideration per Common Share and
otherwise on the same terms and conditions as the Drag-Along Seller in such
Drag-Along Sale.

 

The Drag-Along Seller shall provide written
notice, in the form of Exhibit C hereto, of such Drag-Along Sale to the
Drag-Along Stockholders (a “Drag-Along Sale Notice”) not later
than 10 Business Days prior to the proposed Drag-Along Sale. The Drag-Along
Sale Notice shall identify the Transferee, the consideration for which a
Transfer is proposed to be made (the “Drag-Along Sale Price”) and all
other material terms and conditions of the Drag-Along Sale. Each Drag-Along
Stockholder shall be required to participate in the Drag-Along Sale on the
terms and conditions set forth in the Drag-Along Sale Notice and to tender all
its Common Shares as set forth in this Section 3.02. The price payable in such
Transfer shall be the Drag-Along Sale Price. Not later than 15 Business Days
after the date of the Drag-Along Sale Notice (the “Drag-Along Sale Notice Period”),
each of the Drag-Along Stockholders shall deliver to a representative of the
Drag-Along Seller designated in the Drag-Along Sale Notice the certificates
representing the Common Shares of such Drag-Along Stockholder to be included in
the Drag-Along Sale, together with a limited power-of-attorney authorizing the
Drag-Along Seller or its representative to Transfer such Common Shares on the
terms set forth in the Drag-Along Notice and wire transfer or other
instructions for payment or delivery of the consideration to be received in
such Drag-Along Sale, or, if such delivery is not permitted by applicable law,
an unconditional agreement to deliver such Common Shares pursuant to this
Section 3.02(a) at the closing for such Drag-Along Sale against delivery to
such Drag-Along Stockholder of the consideration thereto. If a Drag-Along
Stockholder should fail to deliver such certificates to the Drag-Along Seller,
the Company (subject to reversal under Section 3.02(b)) shall cause the books
and records of the Company to show that such Common Shares are bound by the
provisions of this Section 3.02(a), and that such Common Shares shall be
Transferred to the Drag-Along Transferee immediately upon surrender for
Transfer by the holder thereof.

 

(b)      The Drag-Along Seller
shall have a period of 105 days from the date of delivery of the Drag-Along
Sale Notice to consummate the Drag-Along Sale on the terms and conditions set
forth in such Drag-Along Sale Notice, provided
that, if such Drag-Along Sale is subject to regulatory approval, such 105-day
period shall be extended until the expiration of five Business Days after all
such approvals have been received, but in no event later than 120 days
following the date of delivery of the Drag-Along Sale Notice. If the Drag-Along
Sale shall not have been consummated during such period, the Drag-Along Seller
shall return to each of the Drag-Along Stockholders the limited power-of-attorney
and all

 

 

certificates representing Common Shares that
such Drag-Along Stockholders delivered for Transfer pursuant hereto, together
with any other documents in the possession of the Drag-Along Seller executed by
the Drag-Along Stockholders in connection with such proposed Transfer, and all
the restrictions on Transfer contained in this Agreement or otherwise
applicable at such time with respect to such Common Shares owned by the
Drag-Along Stockholders shall again be in effect.

 

(c)       Concurrently with the
consummation of the Transfer of Common Shares pursuant to this Section 3.02,
the Drag-Along Seller shall (i) notify the Drag-Along Stockholders thereof,
(ii) remit to each of the Drag-Along Stockholders that have surrendered their
certificates the total consideration for the Common Shares Transferred pursuant
thereto (subject to Section 3.03(b)(ii)), with the cash portion of the purchase
price to be paid by wire transfer of immediately available funds in accordance
with such Drag-Along Stockholder’s wire transfer instructions, and (iii)
promptly after completion of such Transfer, furnish such other evidence of the
completion and the date of completion of such Transfer and the terms thereof as
may be reasonably requested by such Drag-Along Stockholders.

 

(d)      Notwithstanding anything
contained in this Section 3.02, there shall be no liability on the part of the
Drag-Along Seller to any Drag-Along Stockholders (other than the obligation to
return the limited power-of-attorney and the certificates and other applicable
instruments representing Common Shares received by the Drag-Along Seller) if
the Transfer of Common Shares pursuant to this Section 3.02 is not consummated
for whatever reason, regardless of whether the Drag-Along Seller has delivered
a Drag-Along Sale Notice. Whether to effect a Transfer of Common Shares
pursuant to this Section 3.02 by the Drag-Along Seller is in the sole and
absolute discretion of the Drag-Along Seller.

 

Section 3.03. Additional Conditions
to Tag-Along Sales and Drag-Along Sales. Notwithstanding anything
contained in Section 3.01 or Section 3.02, the rights and obligations of (i)
the Tagging Persons to participate in a Tag-Along Sale under Section 3.01 and
(ii) the Drag-Along Stockholders to participate in a Drag-Along Sale under
Section 3.02 are subject to the following conditions:

 

(a)       upon the consummation of
such Tag-Along Sale or Drag-Along Sale, all of the Stockholders participating
therein will receive, in connection with such Tag-Along Sale or Drag-Along
Sale, the same form and amount of consideration per Common Share, or, if any
Stockholders are given an option as to the form and amount of consideration to
be received, all Stockholders participating therein will be given the same
option;

 

(b)      the fees and expenses incurred
by any Stockholder in connection with any Tag-Along Sale or Drag-Along Sale
shall be paid by such Stockholder, except the
Tag-Along Seller or Drag-Along Seller shall retain one counsel for all

 

 

Stockholders participating in such Tag-Along
Sale or Drag-Along Sale (which counsel shall be selected by such Tag-Along
Seller or Drag-Along Seller) and the fees and expenses of such counsel shall be
paid as follows (to the extent not otherwise paid by the Company or another
Person):  (i) all such fees and expenses
incurred in connection with any unconsummated Tag-Along Sale or Drag-Along Sale
shall be paid by the Tag-Along Seller or Drag-Along Seller, as the case may be,
and (ii) all such fees and expenses incurred in connection with any consummated
Tag-Along Sale or Drag-Along Sale shall be paid from the total consideration
for the Common Shares Transferred pursuant thereto, prior to the distribution
of the net amount to the Tagging Persons or Drag-Along Stockholders, as the
case may be;

 

(c)       each Tagging Person
shall (i) make such representations, warranties and covenants and enter into
such definitive agreements as are customary for transactions of the nature of
the proposed Transfer, (ii) benefit from all of the same provisions of the
definitive agreements as the Tag-Along Seller and (iii) be required to bear
their proportionate share of any escrows, holdbacks or adjustments in purchase
price; and

 

(d)      each Drag-Along
Stockholder shall (i) make such representations, warranties and covenants and
enter into such definitive agreements as are customary for transactions of the
nature of the proposed Transfer; provided
that no Drag-Along Stockholder shall be required to provide any representations
or indemnities in connection with any Drag-Along Sale other than representations
and indemnities concerning such Drag-Along Stockholder’s title to the Common
Shares free and clear of any encumbrances and authority, power and right to
enter into and consummate the Transfer without contravention of any law or
material agreement, (ii) benefit from all of the same provisions of the
definitive agreements as the Drag-Along Seller, as the case may be, and (iii)
be required to bear their proportionate share of any purchase price holdbacks
or adjustments in purchase price.

 

ARTICLE 4

CERTAIN COVENANTS
AND AGREEMENTS

 

Section 4.01. Confidentiality.
Each Stockholder agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its and its
Affiliates’ Investment Advisers, directors, officers, employees and agents,
including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made must be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) to

 

 

the extent required to exercise any remedies
or enforcement rights under this Agreement, (f) in accordance with Section
4.03, (g) with the consent of the Company, (h) to the extent such Information
(1) becomes publicly available other than as a result of a breach of this
Section or (2) becomes available to the Stockholder on a
nonconfidential basis from a source other than the Company or (i) to the extent
such Information is received after the Termination Date. For the purposes of
this Section, “Information” means all information
received from the Company or any of its Subsidiaries relating to the Company or
any of its Subsidiaries or any of their respective businesses, other than any
such information that is available to the Stockholder on a nonconfidential basis
prior to disclosure by the Company or any of its Subsidiaries; provided that, in the case of information received from the
Company or its Subsidiaries after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

 

Section 4.02. Reports. Until
the earlier of (i) the effective date of a Shelf Registration Statement or (ii)
the Termination Date, the Company agrees to furnish to each Stockholder (other
than a Competitor or Competitor Affiliate), for so long as such Stockholder
owns any Common Shares:

 

(a)       within 90 days
after the end of each fiscal year of the Company, an audited consolidated
balance sheet of the Company and its Subsidiaries and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such
year, setting forth in each case in comparative form the figures for the
previous fiscal year, all reported on by Deloitte & Touche LLP or other
independent public accountants of recognized national standing (without any
qualification or exception as to the scope of such audit) to the effect that
such consolidated financial statements present fairly in all material respects
the financial condition and results of operations of the Company and its
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied;

 

(b)      within 45 days after
the end of each of the first three fiscal quarters of each fiscal year of the
Company, a consolidated balance sheet of the Company and its Subsidiaries and
related statements of operations, stockholders’ equity and cash flows as of the
end of and for such fiscal quarter and the then elapsed portion of the fiscal
year, setting forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of
the end of) the previous fiscal year, all certified by one of its Financial
Officers as presenting fairly in all material respects the financial condition
and results of operations of the Company and its Subsidiaries on a consolidated
basis in

 

 

accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of footnotes;

 

(c)       concurrently with the
delivery of (i) any certificate of a Financial Officer of the Company to
lenders under any credit facility of the Company relating to (A) the occurrence
of a default thereunder, (B) compliance with covenants thereunder or
(C) changes in GAAP or in the application thereof or (ii) any certificate
of the accounting firm that reported on the Company’s financial statements
stating whether they obtained knowledge during the course of their examination
of such financial statements of any default under any credit facility of the
Company, a copy of such certificate;

 

(d)      within 10 Business Days
after final approval thereof by the Board (but in any event no later than
February 28 of each fiscal year of the Company), a budget of the Company and
its Subsidiaries for such fiscal year, prepared to show information on a
quarterly basis, and, to the extent all relevant internal approvals have been
obtained, any significant revisions of such budget; and

 

(e)       any other Information,
reasonably requested by any Stockholder, that is required for such Stockholder
to effect a Transfer of Common Stock under Rule 144A(d)(4) of the Securities
Act.

 

Section 4.03. Provision of
Information to Prospective Transferee of Common Shares. Any
Stockholder may (i) provide any Information, including without limitation the
Information provided pursuant to Section 4.02 or (ii) request that the Company
provide such Information (in which case the Company shall comply with such
request), to any Person to whom such Stockholder is contemplating a Transfer of
any Common Shares, provided that
(x) neither the provision of such Information nor such Transfer would be in
violation of the provisions of this Agreement, the Securities Act, or any other
applicable securities or “blue sky” laws, (y) the Person to be provided such
Information pursuant to this Section shall execute a confidentiality agreement
containing provisions substantially the same as those in Section 4.01 and (z)
no Information may be provided to a Competitor or Competitor Affiliate.

 

Section 4.04. Charter or Bylaw Provisions. (a) 
Each Stockholder agrees to vote its Common Shares or execute proxies or
written consents, as the case may be, to ensure that the Company’s certificate
of incorporation and bylaws (i) facilitate, and do not at any time conflict
with, any provision of this Agreement and (ii) permit each Stockholder to
receive the benefits to which each such Stockholder is entitled under this
Agreement.

 

(b)      The Company agrees that
its certificate of incorporation shall at all times provide that Transfers that
occur prior to the Termination Date not in accordance with this Agreement are
void and of no effect.

 

 

Section 4.05. Conflicting Agreements. The Company
and each Stockholder represents that it has not, and agrees that it shall not
(a) enter into any agreement or arrangement of any kind with any Person with
respect to its Common Shares inconsistent with the provisions of this Agreement
or for the purpose or with the effect of denying or reducing the rights of any
other Stockholder under this Agreement, or (b) act, for any reason, as a member
of a group or in concert with any other Person in connection with the Transfer
or voting of its Common Shares in any manner that is inconsistent with the
provisions of this Agreement.

 

ARTICLE 5

MISCELLANEOUS

 

Section 5.01. Termination. This
Agreement shall terminate upon the earlier of the date (i) on which the Company
becomes a Public Company and (ii) of a Public
Offering (the “Termination Date”).
If the Termination Date occurs upon a Public Offering, the Termination Date
shall be deemed to have occurred immediately prior to such Public Offering.

 

Section 5.02. Survival. Section
4.01 shall survive for one year after the Termination Date and Section 2.04
shall survive until all legends have been removed in accordance with the terms
thereof.

 

Section 5.03. Binding Effect;
Assignability; Benefit. (a) 
This Agreement shall be binding upon and enforceable by each of the
parties hereto pursuant to, and in accordance with, the Plan both before and
after execution hereof by any such party and shall inure to the benefit of and
be binding upon the parties hereto and their respective heirs, successors,
legal representatives and permitted assigns. The failure of any party to
execute this Agreement shall not prevent them from exercising their rights
under this Agreement, subject to their obligations under and the terms and
conditions of this Agreement. Any Stockholder that Transfers all of its Common
Shares in accordance with Article 2 shall cease to be bound by the terms
hereof.

 

(b)      Neither this Agreement
nor any right, remedy, obligation or liability arising hereunder or by reason
hereof shall be assignable by any party hereto pursuant to any Transfer of
Common Shares or otherwise, except that any Person acquiring Common Shares from
any Stockholder in a Transfer in compliance with this Agreement shall execute
and deliver to the Company an agreement to be bound by the terms of this
Agreement in the form of Exhibit D hereto, in accordance with Section 2.02, and
shall thenceforth be a “Stockholder”.

 

(c)       Nothing in this
Agreement, expressed or implied, is intended to confer on any Person other than
the parties hereto, and their respective heirs,

 

 

successors, legal representatives and
permitted assigns, any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

 

Section 5.04. Notices. All
notices, requests and other communications (collectively, “Communications”)
to any party shall be in writing and shall be delivered in person, mailed by
certified or registered mail, return receipt requested, or sent by facsimile
transmission,

 

if to the Company, to:

 

McLeodusa Incorporated

6400 C Street SW

P.O. Box 3177

Cedar Rapids, IA 52406 3177

Facsimile:  (319) 790 7901

Attn:  James E. Thompson, Esq.

 

if to any Stockholder, to:

 

The address of such Stockholder listed on
Schedule I, such Stockholder’s Joinder Agreement or such other address as provided
by such Stockholder to the Company.

 

All Communications shall be deemed received
on the earliest of (i) the date such Communication is sent by facsimile
transmission, (ii) the date such Communication is delivered in person, (iii)
the day after the date such Communication is placed in overnight mail with a
national overnight courier service or (iv) three days after the date such
Communication is mailed by certified or registered mail, in each case so long
as such day is a Business Day. If such day is not a Business Day, any such
Communication shall be deemed not to have been received until the next
succeeding Business Day. Any Communication sent by facsimile transmission shall
be confirmed by certified or registered mail, return receipt requested, posted
within one Business Day, or by personal delivery, whether courier or otherwise,
made within two Business Days after the date of such facsimile transmissions.

 

Any Person that becomes a Stockholder shall
provide its address and fax number to the Company, which shall, upon request,
promptly provide such information to any Stockholder requesting such
information.

 

Section 5.05. Waiver; Amendment. No provision of this Agreement may
be waived except by an instrument in writing executed by the party against whom
the waiver is to be effective. No provision of this Agreement may be amended or
otherwise modified except by an instrument in writing executed by the Company
with approval of (i) a majority of the Board and (ii) Stockholders holding at
least two-thirds of the then outstanding Common Shares.

 

 

Section 5.06. Fees and Expenses. Except as may be
otherwise provided herein or in any other agreement between or among any
parties hereto, the fees and expenses incurred by any Stockholder in connection
with this Agreement, any amendment or waiver hereof and the transactions
contemplated hereby and all matters related hereto shall be paid by such
Stockholder, except the Company shall pay all
fees and expenses of one counsel for all Stockholders (selected by Stockholders
holding the majority of the Common Shares held by all Stockholders) in
connection with any amendment or waiver of this Agreement or any transactions
related thereto.

 

Section 5.07. Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws
of the State of New York, without regard to the conflicts of laws rules of such
state.

 

Section 5.08. Jurisdiction.
The parties hereby agree that any suit, action or proceeding seeking to enforce
any provision of, or based on any matter arising out of or in connection with,
this Agreement or the transactions contemplated hereby shall be brought in the
United States District Court for the Southern District of New York or any New
York State court sitting in New York City, so long as one of such courts shall
have subject matter jurisdiction over such suit, action or proceeding, and that
any case of action arising out of this Agreement shall be deemed to have arisen
from a transaction of business in the State of New York, and each of the
parties hereby irrevocably consents to the jurisdiction of such courts (and of
the appropriate appellate courts therefrom) in any such suit, action or
proceeding and irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding in any such court or that any such suit, action
or proceeding which is brought in any such court has been brought in an
inconvenient form. Process in any such suit, action or proceeding may be served
on any party anywhere in the world, whether within or without the jurisdiction
of any such court. Without limiting the foregoing, each party agrees that
service of process on such party as provided in Section 5.04 shall be deemed
effective service of process on such party.

 

Section 5.09. WAIVER OF JURY TRIAL.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 5.10. Specific Enforcement.
Each party hereto acknowledges that the remedies at law of the other parties
for a breach or threatened breach of this Agreement would be inadequate and, in
recognition of this fact, any party to this Agreement, without posting any
bond, and in addition to all other remedies that may be available, shall be
entitled to obtain equitable relief in the form of specific

 

 

performance, a temporary restraining order, a
temporary or permanent injunction or any other equitable remedy that may then
be available.

 

Section 5.11. Effectiveness.
This Agreement shall become effective upon the Effective Date.

 

Section 5.12. Entire Agreement.
This Agreement and the Registration Rights Agreement constitute the entire
agreement among the parties hereto and supersede all prior and contemporaneous
agreements and understandings, both oral and written, among the parties hereto
with respect to the subject matter hereof and thereof.

 

Section 5.13. Severability.
If any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such a determination, the parties shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner so that
the transactions contemplated hereby be consummated as originally contemplated
to the fullest extent possible.

 

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized
officers as of the day and year first above written. 

 

	
   

  	
   

  	
  MCLEODUSA INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James E. Thompson

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  James Thompson

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Group VP, General Counsel & Secretary

  
						

 

20

 

STOCKHOLDER:

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  Aeries Finance - II Ltd.

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
  By: Patriarch Partners X, LLC,

  
	
   

  	
  its Managing Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynn Tilton

  
	
   

  	
   

  	
  Name: Lynn Tilton

  
	
   

  	
   

  	
  Title: Manager

  

 

STOCKHOLDER:

 

 

	
   

  	
  Jefferies Partners Opportunity Fund II, LLC

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J. Welch

  	
   

  
	
   

  	
   

  	
  Name:  Robert J. Welch

  
	
   

  	
   

  	
  Title:    Chief Financial
  Officer

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  Jefferies Partners Opportunity Fund, LLC

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J. Welch

  	
   

  
	
   

  	
   

  	
  Name:  Robert J. Welch

  
	
   

  	
   

  	
  Title:    Chief Financial
  Officer

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  Jefferies Employees Opportunity Fund, LLC

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J. Welch

  	
   

  
	
   

  	
   

  	
  Name:  Robert J. Welch

  
	
   

  	
   

  	
  Title:    Chief Financial
  Officer

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  Jefferies & Company, Inc.

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J. Welch

  	
   

  
	
   

  	
   

  	
  Name:  Robert J. Welch

  
	
   

  	
   

  	
  Title:    Senior Vice President

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  McLeod Depository Corp,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Susan E Atkins

  	
   

  
	
   

  	
   

  	
  Name:  Susan E. Atkins

  
	
   

  	
   

  	
  Title:    President

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  3V Capital Master Fund Ltd,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Kennett Capital,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris Goergen

  	
   

  
	
   

  	
   

  	
  Name:  CHRIS GOERGEN

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles D. Mires

  	
   

  
	
   

  	
   

  	
  Name:  CHARLES D. MIRES

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AIMCO CDO, Series 2000-A,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris Goergen

  	
   

  
	
   

  	
   

  	
  Name: CHRIS GOERGEN

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles D. Mires

  	
   

  
	
   

  	
   

  	
  Name:  CHARLES D. MIRES

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Banc of America Strategic Solutions, Inc.,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joshua Podietz

  	
   

  
	
   

  	
   

  	
  Name:  Joshua Podietz

  
	
   

  	
   

  	
  Title:  Vice President

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANC OF AMERICA SECURITIES LLC,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan M. Barnes

  	
   

  
	
   

  	
   

  	
  Name:  Jonathan M. Barnes

  
	
   

  	
   

  	
  Title:  Associate

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bayerische Hypo-und
  Vereinsbank AG, New York Branch

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Salvatore Esposito

  	
   

  
	
   

  	
   

  	
  Name:  Salvatore Esposito

  
	
   

  	
   

  	
  Title:  Managing Director

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Bear Stearns & Co. Inc.,

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN E. McDermott

  
	
   

  	
   

  	
  Name: JOHN E. McDermott

  
	
   

  	
   

  	
  Title: SENIOR MANAGING DIRECTOR

  
				

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON

  INTERNATIONAL,

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irina Borisova

  
	
   

  	
   

  	
  Name: Irina Borisova

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Lincoln Burkitt

  
	
   

  	
   

  	
  Lincoln Burkitt

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
  OTC Derivative Support Group

  
				

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Credit Suisse, acting through its Cayman Branch,

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Didier Siffer

  	
  /s/ CAROL FLATON

  
	
   

  	
   

  	
  Name:

  	
  Didier Siffer

  	
  CAROL FLATON

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
  MANAGING DIRECTOR

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  CypressTree Investment Partners I, Ltd.,

  
	
   

  	
  By: CypressTree Investment Management Company, Inc.,

  
	
   

  	
     as Portfolio Manager.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Weeden

  	
   

  
	
   

  	
   

  	
  Name: Robert Weeden

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  SIMSBURY CLO, LIMITED,

  	
   

  
	
   

  	
  as a Stockholder

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Babson Capital Management LLC

  
	
   

  	
  Under delegated authority from

  
	
   

  	
  Massachusetts Mutual Life Insurance

  
	
   

  	
  Company as Collateral Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David P. Wells

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David P. Wells, CFA

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  
								

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Commonwealth
  of Massachusetts Pension Reserves

  
	
   

  	
   

  	
  Investment
  Management Board,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Geoffrey W. Johnson

  	
   

  
	
   

  	
   

  	
  Name:  

  
	
   

  	
   

  	
  Title:  

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Fidelity Management Trust Company

  as Investment Manager

  	
   

  
	
   

  	
   

  	
   

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
  Fidelity
  Advisor Series I: Fidelity Advisor

  
	
   

  	
  Leveraged
  Company Stock Fund,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John H. Costello

  	
   

  
	
   

  	
   

  	
  Name:  John H. Costello

  
	
   

  	
   

  	
  Title:  Assistant Treasurer

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
  Fidelity
  Advisor Series II: Fidelity Advisor

  
	
   

  	
  High
  Income Advantage,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John H. Costello

  	
   

  
	
   

  	
   

  	
  Name:  John H. Costello

  
	
   

  	
   

  	
  Title:  Assistant Treasurer

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
  Fidelity
  Securities Fund:

  
	
   

  	
  Fidelity
  Leveraged Company Stock Fund,

  	
   

  
	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John H. Costello

  	
   

  
	
   

  	
   

  	
  Name:  John H. Costello

  
	
   

  	
   

  	
  Title:  Assistant Treasurer

  

 

 

STOCKHOLDER:

 

 

	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Pension
  Investment Committee of General Motors for

  General Motors Employees Domestic Group

  
	
   

  	
   

  	
  Pension
  Trust,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Geoffrey W. Johnson

  	
   

  
	
   

  	
   

  	
  Name:  

  
	
   

  	
   

  	
  Title:  

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Fidelity Management Trust Company

  as Investment Manager

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

STOCKHOLDER:

 

 

	
   

  	
  ML
  CLO XII PILGRIM AMERICA

  
	
   

  	
  (CAYMAN)
  LTD,

  
	
   

  	
  By:

  	
  ING
  Investments, LLC

  
	
   

  	
   

  	
  as
  its investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  

  
	
   

  	
  Title:  

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  as
  a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert Wilson

  	
   

  
	
   

  	
   

  	
  Name:
   Robert Wilson

  
	
   

  	
   

  	
  Title:  Senior Vice President

  

 

 

STOCKHOLDER:

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  KS Capital Partners L.P.

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Jack Swain

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Jack Swain

  
	
   

  	
   

  	
   

  	
  Title: General Partner

  
						

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  KS International, Inc,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Jack Swain

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Jack Swain

  
	
   

  	
   

  	
   

  	
  Title:  General Partner

  
						

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  MERRILL LYNCH CREDIT PRODUCTS, LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Pierre Batrouni

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
   

  	
  Title:  PIERRE BATROUNI

            VICE PRESIDENT

  
							

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  ODYSSEY AMERICA REINSURANCE CORPORATION

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Donald L. Smith

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Donald L. Smith

  
	
   

  	
   

  	
   

  	
  Title:   Senior Vice President

  
								

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF
  INSTITUTION:

  
	
   

  	
   

  	
  Sequils-Centurion
  V, Ltd.

  By: RiverSource Investments, LLC as

  Collateral Manager,

  	
   

  
	
   

  	
   

  	
  as a
  Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Vincent
  Pham

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Vincent Pham

  
	
   

  	
   

  	
   

  	
  Title:
    Director - Operations

  
							

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
  Centurion CDO II, Ltd.

  By: RiverSource Investments, LLC as

  Collateral Manager,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Vincent Pham

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Vincent Pham

  
	
   

  	
   

  	
   

  	
  Title:   Director - Operations

  
						

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  JP Morgan Chase Bank, N.A.,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Andrew Opel

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
   

  	
  Title:  ANDREW OPEL

  AUTHORIZED SIGNATORY

  

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Seneca CBO II, L.P,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Thomas Haag

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Thomas Haag

  
	
   

  	
   

  	
   

  	
  Title:  PM

  

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneco CBO III, Limited,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Thomas Haag

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas Haag

  
	
   

  	
   

  	
   

  	
  Title:

  	
  PM

  
						

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SOL LOAN FUNDING LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ MIKUS N. KINS

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  MIKUS N. KINS

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney-in-fact

  
						

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
  Strategic
  Value Master Fund, Ltd.

  
	
   

  	
   

  	
  By:

  	
  Strategic
  Value Partners, LLC

  
	
   

  	
   

  	
   

  	
  Its
  Investment Advisor

  	
   

  
	
   

  	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Vivianne Hernandez

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Vivianne
  Hernandez

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
							

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Textron
  Financial Corporation

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Matthew J. Colgan

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Matthew
  J. Colgan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President

  
						

 

 

STOCKHOLDER:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sapphire
  Special Opportunities Fund LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  /s/
  Wazata Investment Partners LLC,

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph M. Deignan

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Joseph
  M. Deignan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
						

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wayland
  Distressed Opportunities Fund I-C LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  /s/
  Wayzata Investment Partners LLC,

  
	
   

  	
   

  	
  Its
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph M. Deignan

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Joseph
  M. Deignan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
						

 

 

STOCKHOLDER:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wayland
  Distressed Opportunities Fund I-A LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  /s/
  Wayzata Investment Partners LLC,

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph M. Deignan

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Joseph
  M. Deignan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
						

 

 

STOCKHOLDER:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wayland
  Distressed Opportunities Fund I-B LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  /s/
  Wayzata Investment Partners LLC,

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph M. Deignan

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Joseph
  M. Deignan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
						

 

 

STOCKHOLDER:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wayland
  Recovery Fund LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  /s/
  Wayzata Investment Partners LLC,

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph M. Deignan

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Joseph
  M. Deignan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
						

 

 

STOCKHOLDER:

 

 

	
   

  	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wayzata
  Recovery Fund LLC,

  	
   

  
	
   

  	
   

  	
  as a Stockholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  /s/
  Wayzata Investment Partners LLC,

  
	
   

  	
   

  	
  Its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Joseph M. Deignan

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Joseph
  M. Deignan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
						

 

 

Schedule I

 

Stockholders

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
    

   	
    

   	
    

   
	
  McLeod
  Depository Corp.

  Susan Atkins

  JP Morgan Chase Bank, N.A.

  270 Park Avenue, 20th Floor

  New York, NY 10017

  

  20-4057039

  	
   

  	
  1,396,739

  
	
   

  	
   

  	
   

  
	
  3V
  Capital Master Fund Ltd.

  Mark Focht

  Libertas Holdings LLC

  1 Greenwich Office Park North

  Greenwich, CT 06831

  

  98-0422169

  	
   

  	
  402,735

  
	
   

  	
   

  	
   

  
	
  Kennett
  Capital Inc.

  Tony Gallo

  Allstate Investment Mgmt. Co.

  3075 Sanders Road., Suite G3B

  Northbrook, IL 60062

  

  52-2145989

  	
   

  	
  72,504

  
	
   

  	
   

  	
   

  
	
  AIMCO
  CDO Series 2000-A

  Tony Gallo

  Allstate Investment Mgmt. Co.

  3075 Sanders Road., Suite G3B

  Northbrook, IL 60062

  

  Offshore Entity

  	
   

  	
  72,504

  
	
   

  	
   

  	
   

  
	
  Banc of
  America Strategic Solutions, Inc.

  Jason Cipriani

  Banc of America Strategic Solutions, Inc.

  214 N. Tyron St., Floor 17

  Charlotte, NC 28255

  

  52-1710675

  	
   

  	
  1,341,604

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
    

   	
    

   	
    

   
	
  Banc of
  America Securities LLC

  Jon Barnes

  Banc of America Securities LLC

  214 N. Tryon St.

  NC1-027-14-1

  Charlotte, NC 28255

  

  56-2058405

  	
   

  	
  44,295

  
	
    

   	
    

   	
    

   
	
   Calder
   & Co.

   Bank of Nova Scotia

   Attn: Stephen Levi

   1 Liberty Place, Floor 23

   New York, NY 10006

   

   98-6000210

   	
    

   	
   643,235

   
	
    

   	
    

   	
    

   
	
  Bayerische
  Hypo-und Vereinsbank AG, New York Branch

  HVB Group

  Attn: Sal Espisito

  150 E. 42nd Street

  New York, NY 10017

  

  13-2774123

  	
   

  	
  1,063,914

  
	
   

  	
   

  	
   

  
	
  Bear,
  Stearns and Co. Inc.

  Bear Stearns

  Attn: Laura Tarrado

  383 Madison Avenue, Floor 8

  New York, NY 10179

  

  13-3604093

  	
   

  	
  834,727

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  Credit
  Suisse First Boston, International

  CSFB International

  Attn: Diane Richards/Melanie Harries

  1 Cabot Square

  London E14 4QJ

  

  Offshore Entity

  	
   

  	
  852,595

  
	
   

  	
   

  	
   

  
	
  Credit
  Suisse, Cayman Islands Branch

  Ryan Delaney

  Credit Suisse, New York & Cayman Island
  Branches

  11 Madison Avenue, Floor 10

  New York, NY 10010

  

  13-5015677

  	
   

  	
  918,907

  
	
   

  	
   

  	
   

  
	
  Cypress
  Tree Investment Partners I

  Cypress Tree Investment Management

  Attn: Damien Mount

  One Boston Place, Floor 16

  Boston, MA 02108

  Offshore
  Entity

  	
   

  	
  174,009

  
	
   

  	
   

  	
   

  
	
  Simsbury
  CLO, Limited

  JP Morgan Chase Bank

  4 New York Plaza

  New York, NY 10004

  Account C39900; FCC 10200733.3

  Offshore
  Entity

  	
   

  	
  72,504

  
	
   

  	
   

  	
   

  
	
  Commonwealth
  of Massachusetts Pension Reserves Investment Management Board

  John Roche

  Operations Manager

  Fidelity Investments

  82 Devonshire Street - Z1D

  Boston, MA 02109

  

  04-3525740

  	
   

  	
  484,779

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  Fidelity
  Advisor Series I: Fidelity Advisor Leveraged Company Stock Fund

  John Roche

  Operations Manager

  Fidelity Investments

  82 Devonshire Street - Z1D

  Boston, MA 02109

  

  04-3533877

  	
   

  	
  149,007

  
	
   

  	
   

  	
   

  
	
  Fidelity
  Advisor Series II: Fidelity Advisor High Income Advantage

  John Roche

  Operations Manager

  Fidelity Investments

  82 Devonshire Street - Z1D

  Boston, MA 02109

  

  04-2940573

  	
   

  	
  4,914,174

  
	
   

  	
   

  	
   

  
	
  Fidelity
  Securities Fund: Fidelity Leveraged Company Stock Fund

  John Roche

  Operations Manager

  Fidelity Investments

  82 Devonshire Street - Z1D

  Boston, MA 02109

  

  04-3533868

  	
   

  	
  1,701,867

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  Pension Investment Committee of General
  Motors for General Motors Employees Domestic Group Pension Trust

  John Roche

  Operations Manager

  Fidelity Investments

  82 Devonshire Street - Z1D

  Boston, MA 02109

  New York, NY 10004

  

  13-3160892

  	
   

  	
  2,123,877

  
	
   

  	
   

  	
   

  
	
  ML CLO
  XII Pilgrim America (Cayman) Ltd.

  ING Pilgrim Investments

  Attn: Brian Stevens

  7337 East Doubletree Ranch Road

  Scottsdale, AZ 85258

  

  Offshore Entity

  	
   

  	
  116,006

  
	
   

  	
   

  	
   

  
	
  Jefferies
  & Company, Inc.

  Jefferies & Company, Inc.

  Attn: Michael Egan

  Metro Center, One Station Place

  Stamford, CT 06902

  

  95-2622900

  	
   

  	
  818,956

  
	
   

  	
   

  	
   

  
	
  Jefferies
  Employees Opportunity Fund

  Jefferies & Company, Inc.

  Attn: Michael Egan

  Metro Center, One Station Place

  Stamford, CT 06902

  

  06-1567019

  	
   

  	
  159,242

  
	
   

  	
   

  	
   

  
	
  Jefferies
  Partners Opportunity Fund II

  Jefferies & Company, Inc.

  Attn: Michael Egan

  Metro Center, One Station Place

  Stamford, CT 06902

  

  95-4736081

  	
   

  	
  545,971

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  Jefferies
  Partners Opportunity Fund

  Jefferies & Company, Inc.

  Attn: Michael Egan

  Metro Center, One Station Place

  Stamford, CT 06902

  

  95-4714499

  	
   

  	
  750,710

  
	
   

  	
   

  	
   

  
	
  KS
  Capital Partners, LP

  Mike Jemal

  KS Capital Partners, LP

  11 W. 42nd St., 30th Floor

  New York, NY 10036

  

  22-3003767

  	
   

  	
  112,824

  
	
   

  	
   

  	
   

  
	
  KS
  International, Inc.

  Mike Jemal

  KS International, Inc.

  11 W. 42nd St., 30th Floor

  New York, NY 10036

  

  Offshore Entity

  	
   

  	
  47,600

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  Merrill
  Lynch Credit Products LLC

  Merrill Lynch Credit Products LLC

  Attn: Brian Wilson

  4 World Financial Center, Floor 22

  New York, NY 10080

  

  56-2313907

  	
   

  	
  153,562

  
	
   

  	
   

  	
   

  
	
  Odyssey
  America Reinsurance Corporation

  Bank of New York

  1 Wall Street, 2nd Floor Window

  New York, NY 10286

  Attn: Michael Antwi

  

  47-0698507

  For Account #357620

  Odyssey America RE Corp.

  	
   

  	
  1,804,369

  
	
   

  	
   

  	
   

  
	
  Aeries Finance-II Ltd.

  Aeries Finance-II Ltd.

  c/o U.S. Bank Corporate Trust Services

  One Federal Street, 3rd Floor

  Boston, MA 02110

  FCC: Aeries Finance-II Ltd.

  Attn: Jon Warn

  Offshore
  Entity

  	
   

  	
  14,501

  
	
   

  	
   

  	
   

  
	
  Centurion
  CDO II, Ltd.

  RiverSource Investments, LLC

  Attn: Robin Stancil

  100 N. Sepulveda Blvd., Suite 650

  El Segundo, CA 90245

  

  13-6062541

  	
   

  	
  43,502

  
	
   

  	
   

  	
   

  
	
  SEQUILS Centurion V, Ltd.

  Chase Manhattan Bank

  Account G-72953

  4 New York Plaza, Ground Floor

  New York, NY 10004

  Offshore
  Entity

  	
   

  	
  43,502

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  JP
  Morgan Chase Bank, N.A.

  Andrew Faherty

  JP Morgan Chase Bank, N.A.

  270 Park Avenue, 17th Floor

  New York, NY 10017

  

  13-4994650

  	
   

  	
  1,438,224

  
	
   

  	
   

  	
   

  
	
  Seneca
  CBO II L.P.

  Rene Vielmas

  Seneca CBO II L.P.

  600 Travis St., Floor 4

  Houston, TX 77002

  

  Offshore Entity

  	
   

  	
  145,007

  
	
   

  	
   

  	
   

  
	
  Seneca
  CBO III, Limited
 Rene Vielmas

  Seneca CBO III, Limited

  600 Travis St., Floor 4

  Houston, TX 77002

  

  Offshore Entity

  	
   

  	
  145,007

  
	
   

  	
   

  	
   

  
	
  SOL Loan
  Funding LLC

  LaSalle Bank N.A., as Collateral Administrator

  135 S. LaSalle St., Suite 1511

  Chicago, IL 60603

  Attn: CDO Trust Services-Mikas Kins

  

  13-5266470

  	
   

  	
  508,551

  
	
   

  	
   

  	
   

  
	
  Strategic
  Value Master Fund, Ltd.

  Mark Dicintio

  Strategic Value Master Fund, Ltd.

  80 Field Point Rd.

  Greenwich, CT 06830

  

  76-0707813

  	
   

  	
  22,147

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  Textron
  Financial Corporation

  Don Henderson

  Textrou Financial Corporation

  40 Westminster St.

  Providence, RI 02903

  

  05-6008768

  	
   

  	
  437,665

  
	
   

  	
   

  	
   

  
	
  Sapphire
  Special Opportunities Fund, LLC

  Wayzata Investment Partners LLC

  Attn: Susan D. Peterson

  701 East Lake St., Suite 300

  Wayzata, MN 55391

  

  22-3895790

  	
   

  	
  1,126,953

  
	
   

  	
   

  	
   

  
	
  Wayland
  Distressed Opportunities Fund I-C LLC

  Wayzata Investment Partners LLC

  Attn: Susan D. Peterson

  701 East Lake St., Suite 300

  Wayzata, MN 55391

  

  20-0984128

  	
   

  	
  1,423,601

  
	
   

  	
   

  	
   

  
	
  Wayland
  Distressed Opportunities Fund I-A, LLC

  Wayzata Investment Partners LLC

  Attn: Susan D. Peterson

  701 East Lake St., Suite 300

  Wayzata, MN 55391

  

  11-3693643

  	
   

  	
  268,933

  

 

 

	
   NAME, ADDRESS AND TIN

   	
    

   	
   NUMBER OF SHARES

   
	
   

  	
   

  	
   

  
	
  Wayland
  Distressed Opportunities Fund I-B, LLC

  Wayzata Investment Partners LLC

  Attn: Susan D. Peterson

  701 East Lake St., Suite 300

  Wayzata, MN 55391

  

  33-1086190

  	
   

  	
  246,786

  
	
   

  	
   

  	
   

  
	
  Wayland
  Recovery Fund, LLC

  Wayzata Investment Partners LLC

  Attn: Susan D. Peterson

  701 East Lake St., Suite 300

  Wayzata, MN 55391

  

  22-3875940

  	
   

  	
  1,114,579

  
	
   

  	
   

  	
   

  
	
  WAYZATA
  RECOVERY FUND LLC

  Wayzata Investment Partners LLC

  Attn: Susan D. Peterson

  701 East Lake St., Suite 300

  Wayzata, MN 55391

  

  20-1612509

  	
   

  	
  1,247,826

  

 

 

Schedule II

 

Holders of Common Stock Who Are Not
Competitor Affiliates

 

	
  3V
  Capital Master Fund Ltd.

  
	
  Aeries
  II Finance Ltd.

  
	
  AIMCO
  CDO Series 2000-A

  
	
  Alliance
  Capital Funding, L.L.C.

  
	
  Andover
  Capital Offshore Partners LTD

  
	
  Andover
  Capital Partners LP

  
	
  Ares
  III CLO Ltd.

  
	
  Ares
  IV CLO Ltd.

  
	
  Ares
  V CLO Ltd

  
	
  Ares
  Leveraged Investment Fund II, L.P.

  
	
  Bank
  of America Strategic Solutions, Inc.

  
	
  Bank
  of America, N.A.

  
	
  Bank
  of Nova Scotia

  
	
  Bayerische
  Hypo-und Vereinsbank AG - New York

  
	
  Bear
  Stearns and Co. Inc.

  
	
  Centurion
  CDO II, Ltd.

  
	
  Citigroup
  Financial Products Inc. fka SB Hld Co

  
	
  Commonwealth
  of Massachusetts Pension Reserves Investment Management Board

  
	
  Credit
  Suisse First Boston International

  
	
  Credit
  Suisse First Boston, New York and Cayman Branch

  
	
  CypressTree
  Investment Partners I

  
	
  D.K.
  Acquisition Partners, L.P.

  
	
  Fidelity
  Advisor Series I: Fidelity Advisor Leveraged Company Stock Fund

  
	
  Fidelity
  Advisor Series II: Fidelity Advisor High Income Advantage Fund

  
	
  Fidelity
  Securities Fund: Fidelity Leveraged Company Stock Fund

  
	
  Goldman
  Sachs Credit Partners L.P.

  
	
  Jefferies
  & Company Inc.

  
	
  Jefferies
  Employees Opportunity Fund LLC

  
	
  Jefferies
  Partners Opportunity Fund LLC 

  
	
  Jefferies
  Partners Opportunity Fund II LLC

  
	
  JPMorgan
  Chase Bank, N.A.

  
	
  Kennett
  Capital Inc.

  
	
  KS
  Capital Partners, LP

  
	
  KS
  International, Inc.

  
	
  Madison
  Avenue CDO I Ltd.

  
	
  Merrill
  Lynch Credit Products LLC

  
	
  Millenium
  Partners LP

  
	
  ML
  CLO XII Pilgrim America (Cayman)

  
	
  New
  Alliance Global CDO, Ltd.

  
	
  Odyssey
  America Reinsurance Corporation

  
	
  Pension
  Investment Committee of General Motors for General Motors Employees Domestic
  Group Pension Trust

  
	
  Quantum
  Partners LDC

  
	
  Royalton
  Company

  
	
  Sapphire
  Special Opportunities Fund LLC

  
	
  Seneca
  CBO II L.P.

  

 

 

	
  Seneca
  CBO III, Limited

  
	
  SEQUILS
  Centurion V, Ltd.

  
	
  Simsbury
  CLO, Limited

  
	
  SOL
  Loan Funding LLC

  
	
  Strategic
  Value Master Fund, Ltd.

  
	
  Textron
  Financial Corporation

  
	
  Wayland
  Distressed Opportunities Fund I-A LLC

  
	
  Wayland
  Distressed Opportunities Fund I-B LLC

  
	
  Wayland
  Distressed Opportunities Fund I-C LLC

  
	
  Wayland
  Investment Fund II

  
	
  Wayland
  Recovery Fund

  
	
  Wayzata
  Recovery Fund LLC

  

 

 

EXHIBIT A

 

TAG-ALONG NOTICE

 

This Tag-Along Notice (this “Tag-Along
Notice”) is made as of the date written below by the
undersigned (the “Tag-Along Seller”) in accordance
with the Stockholders Agreement dated as of              
      , 200   (the “Stockholders
Agreement”) among McLeodUSA Incorporated and the holders of
Common Stock listed on Schedule 1 thereto, as the same may be amended from time
to time. Capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Stockholders Agreement.

 

The undersigned Tag-Along Seller proposes to
Transfer Common Shares pursuant to a Tag-Along Sale (the “Tag-Along
Sale”). The terms and conditions of the Tag-Along Sale are as
follows:

 

Number of
Common Shares proposed to be Transferred in the Tag-Along Sale:

 

Consideration
to be received by Stockholders pursuant to the Tag-Along Sale:

 

All other
material terms and conditions of the Tag-Along Sale:

 

The form of proposed agreement, if any, and a
firm offer by the proposed Transferee to purchase Common Shares from the
Stockholders in accordance with the Stockholders Agreement are attached hereto.

 

If you choose to exercise your Tag-Along
Right in accordance with the Stockholders Agreement, you may send your
Tag-Along Response Notice to the undersigned Tag-Along Seller at the following
address:

 

 

IN WITNESS WHEREOF, the undersigned has
executed this Tag-Along Notice as of the date written below.

 

Date:                  
     ,             

 

	
   

  	
  [NAME OF TAG-ALONG SELLER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT B

 

TAG-ALONG RESPONSE NOTICE

 

This Tag-Along Response Notice (this “Tag-Along
Response Notice”) is made as of the date written below by the
undersigned (the “Tagging Person”) in accordance with
the Stockholders Agreement dated as of             
    , 200   (the “Stockholders Agreement”)
among McLeodUSA Incorporated and the holders of Common Stock listed on Schedule
1 thereto, as the same may be amended from time to time. Capitalized terms
used, but not defined, herein shall have the meaning ascribed to such terms in
the Stockholders Agreement.

 

In response to the Tag-Along Notice delivered
by                              
(the “Tagging Seller”) on or about                     , 200  ,
regarding a proposed Tag-Along Sale (the “Tag-Along Sale”),
the undersigned Tagging Person hereby requests that such Tagging Seller include
    % of the undersigned Tagging Person’s Tag-Along
Portion, in accordance with the Stockholders Agreement.

 

Please pay or deliver the undersigned Tagging
Person’s pro rata portion of the total consideration Transferred pursuant to
the Tag-Along Sale (net of any fees and expenses in accordance with the Stockholders
Agreement), in accordance with the Stockholders Agreement, as follows:

 

IN WITNESS WHEREOF, the undersigned has
executed this Tag-Along Response Notice as of the date written below.

 

Date:                  
     ,        

 

	
   

  	
  [NAME OF TAGGING PERSON]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT C

 

DRAG-ALONG SALE NOTICE

 

This Drag-Along Sale Notice (this “Drag-Along
Sale Notice”) is made as of the date written below by the
undersigned (the “Drag-Along Seller”) in accordance
with the Stockholders Agreement dated as of              
    , 200   (the “Stockholders Agreement”)
among McLeodUSA Incorporated and the holders of Common Stock listed on Schedule
1 thereto, as the same may be amended from time to time. Capitalized terms
used, but not defined, herein shall have the meaning ascribed to such terms in
the Stockholders Agreement.

 

The undersigned Drag-Along Seller proposes to
Transfer Common Shares pursuant to a Drag-Along Sale. The terms and conditions
of such Drag-Along Sale are as follows:

 

Transferee:

 

Consideration
to be received by Stockholders pursuant to the Drag-Along Sale:

 

All other
material terms and conditions of the Drag-Along Sale:

 

IN WITNESS WHEREOF, the undersigned has
executed this Drag-Along Notice as of the date written below.

 

Date:                    
    ,        

 

	
   

  	
  [NAME OF DRAG-ALONG SELLER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT D

 

JOINDER TO STOCKHOLDERS AGREEMENT

 

This Joinder Agreement (this “Joinder
Agreement”) is made as of the date written below by the
undersigned (the “Joining Party”) in accordance with
the Stockholders Agreement dated as of             
   , 200   (the “Stockholders Agreement”)
among McLeodUSA Incorporated and the holders of Common Stock listed on Schedule
1 thereto, as the same may be amended from time to time. Capitalized terms
used, but not defined, herein shall have the meaning ascribed to such terms in
the Stockholders Agreement.

 

The Joining Party hereby acknowledges, agrees
and confirms that, by its execution of this Joinder Agreement, the Joining
Party shall be deemed to be a party to the Stockholders Agreement as of the
date hereof and shall have all of the rights and obligations of a “Stockholder”
thereunder as if it had executed the Stockholders Agreement. The Joining Party
hereby ratifies, as of the date hereof, and agrees to be bound by, all of the
terms, provisions and conditions contained in the Stockholders Agreement.

 

IN WITNESS WHEREOF, the undersigned has
executed this Joinder Agreement as of the date written below.

 

Date:                    
     ,         

 

	
   

  	
  [NAME OF JOINING PARTY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

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