Document:

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                                                                   EXHIBIT 10.27

                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

                                    Between

                          CRICKET COMMUNICATIONS INC.

                                      And

                     ERICSSON WIRELESS COMMUNICATIONS INC.

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN
FILED SEPERATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                               TABLE OF CONTENTS

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1.     DEFINITIONS......................................................     1
       1.1   Definitions................................................     1
       1.2   Other Definitional Provisions..............................    13
1A.    NOTICES..........................................................    13
       1A.1  Vendor's First Notice......................................    13
       1A.2  Owner's Notice.............................................    14
       1A.3  Vendor's Second Notice.....................................    14
       1A.4  Purchase of Products and Services..........................    14
       1A.5  Technical Specifications...................................    15
       1A.6  Development Process and Milestones.........................    15
       1A.7  Special Provisions Regarding Vendor Financing..............    15
       1A.8  Pricing....................................................    15
       1A.9  Vendor Preference..........................................    15
2.     SCOPE OF WORK AND RESPONSIBILITIES...............................    16
       2.1   Scope of Work..............................................    16
       2.2   Reserved...................................................    17
       2.3   Site Acquisition...........................................    17
       2.4   Expansions.................................................    17
       2.5   Review of Contract.........................................    17
       2.6   Eligibility under Applicable Laws and Applicable Permits...    17
       2.7   Further Assurances.........................................    17
       2.8   Liens and Other Encumbrances...............................    18
       2.9   Duty To Inform Itself Fully; Waiver of Defense.............    18
       2.10  Special Provisions Regarding Vendor Financing..............    18
3.     PURCHASE ORDERS AND SCHEDULES....................................    19
       3.1   Purchase Orders............................................    19
       3.2   Delivery under the Contract................................    19
       3.3   Order Acceptance...........................................    19
       3.4   Forecasts..................................................    20
       3.5   Inventory Control and Bar-coding...........................    20
4.     SUBCONTRACTORS...................................................    20
       4.1   Subcontractors.............................................    20
       4.2   Vendor's Liability.........................................    20
       4.3   No Effect of Inconsistent Terms in Subcontracts............    20
       4.4   Assignability of Subcontracts to Owner.....................    21
       4.5   Removal of Subcontractor or Subcontractor's Personnel......    21
       4.6   Subcontractor Insurance....................................    21
       4.7   Review and Approval not Relief of Vendor Liability.........    21
       4.8   Vendor Warranties..........................................    21
       4.9   Payment of Subcontractors..................................    21
       4.10  Copies.....................................................    22
       4.11  Benefit of Subcontracts....................................    22

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                               TABLE OF CONTENTS

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5.     PRICES AND PAYMENT...............................................    22
       5.1   Prices.....................................................    22
       5.2   Taxes......................................................    23
       5.3   Payment....................................................    23
       5.4   Reserved...................................................    25
       5.5   No Payment in Event of Material Breach.....................    25
       5.6   In Revenue Payments........................................    25
       5.7   Currency and Place of Payment..............................    25
6.     AVAILABILITY OF IOS..............................................    25
       6.1   Availability of IOS........................................    25
7.     DATA.............................................................    26
8.     SERVICES.........................................................    26
       8.1   Transportation.............................................    26
       8.2   Services...................................................    26
       8.3   No Interference............................................    26
9.     MANUALS, ENGINEERING DRAWINGS AND TRAINING.......................    27
       9.1   Documentation..............................................    27
       9.2   Standards for Manuals......................................    28
       9.3   Equipment and Data.........................................    28
       9.4   Training...................................................    28
       9.5   Manuals and Training.......................................    28
10.    ACCEPTANCE PROCEDURES............................................    28
       10.1  Acceptance Procedures......................................    28
       10.2  Costs and Expenses.........................................    30
11.    CHANGE ORDERS AND SCHEDULING.....................................    30
       11.1   Change Orders.............................................    30
       11.2   Cancellation..............................................    31
12.    DISCONTINUED PRODUCTS AND CONTINUING PRODUCT SUPPORT.............    31
       12.1   Notice of Discontinuation.................................    31
       12.2   Discontinuation During Warranty Period....................    32
13.    SOFTWARE; CONFIDENTIAL INFORMATION...............................    32
       13.1   RTU License...............................................    32
       13.2   Owner's Obligations.......................................    32
       13.3   Backwards Compatibility...................................    33
       13.4   Transfer and Relocation...................................    34
       13.5   Termination and Survival..................................    34
       13.6   Access to Source Codes....................................    35
       13.7   Ownership of Intellectual Property........................    35
14.   SOFTWARE AND EQUIPMENT CHANGES....................................    36
       14.1   Software..................................................    36
       14.2   Equipment.................................................    37
       14.3   Notice of Developments....................................    39

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                               TABLE OF CONTENTS

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15.   INTELLECTUAL PROPERTY.............................................    40
      15.1   Intellectual Property......................................    40
      15.2   Infringement...............................................    40
      15.3   Vendor's Obligation to Cure................................    41
      15.4   Vendor's Obligations.......................................    41
      15.5   Liability of Vendor........................................    42
16.   DELAY  ...........................................................    42
      16.1   Liquidated Damages.........................................    42
      16.2   Delay and Default..........................................    42
      16.3   System Capacity Guarantee..................................    42
      16.4   Limitation.................................................    43
      16.5   Early Completion Bonus.....................................    43
17    FORCE MAJEURE......................................................   43
      17.1   Excusable Delay............................................    43
18.   WARRANTIES........................................................    44
      18.1   Equipment and Services Warranty............................    44
      18.2   Expansions Warranty........................................    45
      18.3   Software Warranty..........................................    46
      18.4   Reserved...................................................    47
      18.5   Reserved...................................................    47
      18.6   Warranty Claim.............................................    47
      18.7   Technical Assistance.......................................    47
      18.8   Scope of Warranties........................................    47
      18.9   Third Party Warranties.....................................    48
      18.10  Additional Sites...........................................    48
      18.11  Exclusive Remedies.........................................    48
19.   INSURANCE.........................................................    48
      19.1   Insurance..................................................    48
20.   INDEMNIFICATION AND LIMITATION OF LIABILITY.......................    49
      20.1   Indemnity..................................................    49
      20.2   Claim for Losses...........................................    49
      20.3   Limitation Of Liability....................................    50
21.   REPRESENTATIONS AND WARRANTIES....................................    51
      21.1   Representations and Warranties of the Parties..............    51
22.   TITLE AND RISK OF LOSS............................................    52
      22.1   Title......................................................    52
      22.2   Risk of Loss...............................................    52
23.   DISPUTE RESOLUTION................................................    53
      23.1   Dispute Resolution.........................................    53
      23.2   Tolling....................................................    53
23.   DISPUTE RESOLUTION................................................    53
      24.1   Termination Without Cause..................................    53
      24.2   Termination for Cause......................................    53

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                               TABLE OF CONTENTS

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      24.3   Remedies...................................................    54
      24.4   Discontinuance of Work.....................................    55
      24.5   Payments...................................................    55
      24.6   Continuing Obligations.....................................    55
      24.7   Vendor's Right to Terminate................................    56
      24.8   Special Termination Events.................................    56
25.   SUSPENSION........................................................    57
      25.1   Owner's Right to Suspend Work..............................    57
26.   MISCELLANEOUS.....................................................    57
      26.1   Amendments.................................................    57
      26.2   Owner Liabilities..........................................    57
      26.3   Offset                                                         57
      26.4   Assignment.................................................    57
      26.5   Notices....................................................    58
      26.6   Governing Law..............................................    59
      26.7   Remedies...................................................    59
      26.8   Consent to Jurisdiction....................................    59
      26.9   Compliance with Law........................................    60
     26.10   Headings...................................................    60
     26.11   Severability...............................................    60
     26.12   Waiver.....................................................    60
     26.13   Public Statements and Advertising..........................    60
     26.14   Records and Communications.................................    61
     26.15   Ownership of Specifications................................    61
     26.16   Financing Requirements.....................................    61
     26.17   Owner Review, Comment and Approval.........................    61
     26.18   Confidentiality............................................    61
     26.19   Entirety of Contract, No Oral Change.......................    63
     26.20   Relationship of the Parties................................    63
     26.21   Discretion.................................................    63
     26.22   Non-Recourse...............................................    63
     26.23   Improvements, Inventions and Innovations...................    64
     26.24   Attachments and Incorporations.............................    64
     26.25   Conflicts..................................................    64
     26.26   References to Certain Sources..............................    64
     26.27   Counterparts...............................................    64
     26.28   Cooperation................................................    65
     26.29   Survival...................................................    65
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<PAGE>

                      SYSTEM EQUIPMENT PURCHASE AGREEMENT
                      -----------------------------------

          This System Equipment Purchase Agreement is effective as of September
20, 1999 (the "Effective Date"), by and between Cricket Communications, Inc. a
               --------------
Delaware corporation (the "Owner"), and Ericsson Wireless Communications Inc., a
                           -----
Delaware corporation (the "Vendor").
                           ------

                                   RECITALS:
                                   --------

          A.  WHEREAS, the Owner desires to purchase CDMA PCS systems for U.S.
based markets pursuant to this Contract;

          B.  WHEREAS, the Vendor desires to provide such CDMA PCS systems to
the Owner, as described in Exhibit A, including but not limited to the Vendor's
obligation to develop, manufacture, engineer, equip, integrate, install, test
and provide technical assistance for said PCS systems in accordance with the
terms and conditions set forth herein; and

          C.  WHEREAS, the mutual goal of the parties hereto is to build CDMA
PCS systems that are capable of integrating new technologies while reducing
costs over time in a highly competitive marketplace.

          NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth in this Contract, the Owner and the Vendor hereby agree as follows:

          SECTION 1.  DEFINITIONS

          1.1  Definitions.  In addition to the terms listed below, certain
               -----------
additional terms are defined elsewhere in this Contract and in the Exhibits, and
all definitions are subject to the provisions of subsection 1.2 hereof.  As used
in this Contract, the following terms have the following meanings:

          "Affiliate" means Cricket Communications, Inc. and any subsidiary
           ---------
thereof.

          "Annual Release Maintenance Fee" means, with respect to each System,
           ------------------------------
those fees of the Vendor as described on Exhibit B.

          "ANSI" means American National Standards Institute.
           ----

          "Applicable Laws" mean, as to any Person, the certificate of
           ---------------
incorporation and by-laws or other organizational or governing documents of such
Person, all U.S. or foreign laws, treaties, ordinances, judgments, decrees,
injunctions, writs, orders and stipulations of any court, arbitrator or
governmental agency or authority and statutes, rules, regulations, orders and
interpretations thereof of any federal, state, provincial, county, municipal,
regional, environmental or other Governmental Entity, instrumentality, agency,
authority, court or other body:  (i) applicable to or binding upon such Person
or any of its property or to which such Person or any of its property

                                       1
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is subject; or (ii) having jurisdiction over all or any part of a System or the
Work to be performed pursuant to the terms of this Contract.

          "Applicable Permits" mean any waiver, exemption, zoning, building,
           ------------------
variance, franchise, permit, authorization, approval, license or similar order
of or from any country, federal, state, provincial, county, municipal, regional,
environmental or other Governmental Entity, instrumentality, agency, authority,
court or other body having jurisdiction over all or any part of a System or the
Work to be performed pursuant to the terms of this Contract.

          "Availability Period" is defined in subsection 24.8.
           -------------------

          "Available Market" means any market where Owner or any of its
           ----------------
Affiliates have acquired a license to build and operate a System, for which no
purchase orders for products, equipment or services have been placed by Owner or
any Affiliate, regardless of whether Owner or an Affiliate holds applicable
licenses from the FCC for such market as of September 20, 1999 or a license for
such market is acquired thereafter; provided however, it excludes any Contiguous
Markets.

          "AXE Switch" means Vendor's CDMA version of its switch.
           ----------

          "B Exhibits" are defined in subsection 2.4.
           ----------

          "Backwards Compatible" or "Backwards Compatibility" means:  (i) with
           --------------------      -----------------------
respect to new Software Maintenance Releases, Software Upgrades, Software
Combined Releases and Software Enhancements, the ability of each of the two (2)
prior older versions of Software to remain fully functional in accordance with
and up to the performance levels to which each was performing immediately prior
to the integration with the new Software Maintenance Release, Software Upgrade,
Software Combined Releases and/or Software Enhancement, and the ability of such
new Software Maintenance Release, Software Upgrade, Software Combined Release
and/or Software Enhancement to interoperate and be compatible with all such
functionality of such prior Software versions and with all existing in-service
Vendor provided Products already installed in the System; (ii) with respect to
all Equipment Upgrades, and Equipment Combined Releases to the extent of that
portion of the Equipment Combined Release which is the Equipment Upgrade or the
use of which by Owner is not optional without losing the benefit of the
Equipment Upgrade (for purposes of this Contract, a "New Equipment Release"
means collectively the Equipment Upgrade and such non-optional portion of the
Equipment Combined Release), the ability of the existing infrastructure to
remain fully functional in accordance with and up to the performance levels to
which it was performing immediately prior to the integration with the New
Equipment Release, and the ability of the New Equipment Release to interoperate
and be fully compatible with all such functionality of such existing
infrastructure; and (iii) with respect to each of Software Maintenance Releases,
Software Upgrades, Software Combined Releases, Software Enhancements and New
Equipment Releases, the ability of such Products to comply with the existing
interfaces to other third party equipment already deployed in the System and
with respect to which Vendor is already in compliance prior to the introduction
of the Software Maintenance Releases, Software Upgrades, Software Combined
Releases, Software Enhancements and New Equipment Releases.

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          "Base Station ("BTS" or "RBS") means the radio Products that handle
           -----------------------------
the Owner's PCS radio traffic in a designated cell.  The Base Station includes
all amplification, modulation, synchronization and other circuitry required to
process a radio signal.

          "Base Station Controller ("BSC")" means the radio Products that
           -------------------------------
control the Owner's PCS radio traffic.

          "Beta Testing" means pre-launch testing conducted by Owner in respect
           ------------
of which no payment from customers is made to the Owner for the services
provided in connection therewith.

          "Business Day" means any day of the year other than a Saturday, Sunday
           ------------
or a United States Federal holiday.

          "Capacity Guarantee" is defined in subsection 16.3.
           ------------------

          "Certificate of Final Acceptance" is defined in subsection 10.1(f).
           -------------------------------

          "Certificate of Substantial Completion" is defined in subsection
           -------------------------------------
10.1(d).

          "Changes" are defined in subsection 11.1.
           -------

          "Change Orders" are defined in subsection 11.1.
           -------------

          "Claim" is defined in subsection 15.2.
           -----

          "Claim Notice" is defined in subsection 15.2.
           ------------

          "Competitive Factors" means those reasonably quantifiable factors
           -------------------
and/or reasonably objective factors associated with the sale and financing of
wireless telecommunications equipment and related services, that are material to
a purchaser in considering the "all in" value and cost of the equipment and
services being purchased, including, but not limited to, price, payment terms,
lead times, financing amount, interest rates, repayment terms, penalties for
delay, rewards for timely performance, the issuance of warrants, features,
functionality, performance, warranty terms, service terms, spare parts
allocations, costs of ongoing hardware and software maintenance and upgrades and
other such reasonably quantifiable factors and/or reasonably objective factors.

          "Compliance Warranty" is defined in subsection 8.3.
           -------------------

          "Contiguous Market" means a market where Owner or any of its
           -----------------
Affiliates have acquired a license to build and operate a System which is
geographically close or proximate to other markets where Owner or any of its
Affiliates have deployed a System, and where operating synergies would be gained
or capital expenditures would be avoided by deploying other vendors' Systems
similar to those contained in the other markets (Contiguous Markets are excluded
from the definition of Available Markets in order to facilitate Owner's desire
for deployment of a single vendor's infrastructure equipment in each Owner
region, i.e., Salt Lake City, Provo, Denver,

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Phoenix, Tucson, Albuquerque and Santa Fe are considered to have operating
efficiencies and synergies and are deemed to be an Owner region and thus
Contiguous Markets).

          "Contract" means this System Equipment Purchase Agreement, together
           --------
with all Exhibits, Schedules and Specifications hereto, together with all
amendments, modifications and supplements.

          "Contract Term" means the period commencing on the Effective Date and
           -------------
ending seven (7) years therefrom, unless terminated earlier in accordance with
the terms and conditions hereof, or unless extended by the mutual written
consent of the parties hereto.

          "Core System" means that collection or aggregation of Products, which
           -----------
are designed by Vendor to operate as a functional entity in accordance with the
applicable Specifications or otherwise represented by Vendor in its published
information as being capable of operating as a functional entity.  By way of
example and not limitation, a circuit pack or connecting cable which is an OEM
item, and which forms part of Vendor's CDMA version of the AXE switch ("AXE
Switch") would form part of a Core System, whereas a call center system or voice
mail system, though it interfaces with the System, would not be part of a Core
System, since various call center systems or voice mail systems manufactured by
several alternate manufacturers could be utilized by Owner, and operated
functionally independent of the selection of Vendor's Equipment for the MSC.

          "Customer Price Guide" means the Vendor's published price notification
           --------------------
release or releases furnished for the purpose of communicating to customers the
Vendor's list pricing or pricing related items applicable to Products.

          "Defects and Deficiencies", "Defects or Deficiencies" or "Defective"
           ------------------------    -----------------------      ---------
means any one (1) or a combination of the following items or other items of a
substantially similar nature:

          (a)  when used with respect to the performance of Services, that such
     Services are not provided in a careful and workmanlike manner and in
     accordance with the Specifications, using material which is free from
     defects;

          (b)  when used with respect to structures, materials or Products, that
     such items:  (i) are not new and of good quality and free from defects in
     materials and workmanship; or (ii) do not conform to the Specifications; or
     (iii) with respect to Software, that such Software does not process dates
     correctly; or

          (c)  with respect to all other Work, that the same: (i) are not free
     of defects in workmanship and materials; or (ii) do not conform to the
     Specifications.

          "Delivery Date" is defined in subsection 1A.1.
           -------------

          "Discontinued Products" are defined in subsection 12.1.
           ---------------------

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<PAGE>

          "Documentation" means the Operating Manuals, the Maintenance and
           -------------
Instruction Manuals, the Training manuals, the "as-built" Site parameters and
all other documentation necessary for the operation of the System, any
Expansions and/or any material part thereof.

          "Dollars" or "U.S. $" or "$" means the lawful currency of the United
           -------      ------      -
States of America.

          "EFT" means Electronic Funds Transfer.
           ---

          "Equipment" means all equipment, hardware and other items of personal
           ---------
property (including, without limitation, any Documentation furnished hereunder
in respect thereof) which are required to be furnished by the Vendor in
accordance with the terms and conditions of this Contract, including repair and
replacement parts.

          "Equipment and Services Warranty" is defined in subsection 18.1.
           -------------------------------

          "Equipment Backwards Compatibility Warranty" is defined in subsection
           ------------------------------------------
14.2.5.

          "Equipment Combined Release" is defined in subsection 14.2.1.
           --------------------------

          "Equipment Enhancements" mean modifications or improvements made to
           ----------------------
the Equipment which improve the performance or capacity of such Equipment
(sometimes referred to by the Vendor as its "Class B" changes).

          "Equipment Upgrade" means a change or modification in any delivered
           -----------------
Equipment which fixes or otherwise corrects faults, design shortcomings or
shortcomings in meeting the Specifications, required to correct Defects of a
type that result in inoperative conditions, unsatisfactory operating conditions,
or which is recommended to enhance safety (sometimes referred to by the Vendor
as its "Class A" changes).

          "Expansions" mean any additional Products or Services ordered by the
           ----------
Owner from the Vendor, which may include growth to existing Systems and
additional Products, Services and Systems.

          "Expansions Warranty" is defined in subsection 18.2.
           -------------------

          "Expansions Warranty Period" is defined in subsection 18.2.
           --------------------------

          "Extension Period" is defined in subsection 10.1(f).
           ----------------

          "FCC" means the Federal Communications Commission.
           ---

          "FCC Rules" means Federal Communication Commission's Rules and
           ---------
Regulations.

          "Final Acceptance" means, with respect to any System, the date that
           ----------------
Owner signs the Certificate of Final Acceptance.

                                       5
<PAGE>

          "Fit" means physical size or mounting arrangement (for example,
           ---
electrical or mechanical connections).

          "Force Majeure" is defined in Section 17.
           -------------

          "Form" means physical shape.
           ----

          "Function" means Product features and performance, or with respect to
           --------
other items, the features and performance of such items.

          "Funds" is defined in Section 2.10.
           -----

          "Governmental Entity" means the United States federal government or
           -------------------
any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

          "Guaranteed Substantial Completion Date" means, with respect to a
           --------------------------------------
System, the date by which Substantial Completion must be achieved by the Vendor.
The Guaranteed Substantial Completion Date is determined based on the Site that
is identified by the Owner in writing to be the last Site to be included in the
definition of such System (the "Last Site").  If the Owner has issued a Purchase
                                ---------
Order to the Vendor to proceed with Site Preparation activities with respect to
the Last Site, the Guaranteed Substantial Completion Date shall be the date
which is sixty (60) calendar days after the later of the date of such Purchase
Order or the date that written notice identifying the Last Site was issued.

     If the Owner has performed the Site Preparation activities with respect to
the Last Site, the Guaranteed Substantial Completion Date shall be the date
which is thirty (30) calendar days after the date the Owner issues a Site
Preparation Substantial Completion Certificate with respect to the Last Site to
the Vendor; provided that in all of the foregoing circumstances, the Guaranteed
            -------- ----
Substantial Completion Date shall be delayed to a date mutually acceptable to
Vendor and Owner, acting reasonably, in the event that:

     i.   Owner has not satisfied its obligations, if any, for Site Preparation
          for the installation of the switch by at least twelve (12) weeks
          prior to the Substantial Completion Date (in this case, the parties
          agree that the period of delay shall be equal to the number of days
          that the Owner's Site Preparation obligations, if any, are delayed
          beyond such date which is twelve (12) weeks prior to the Substantial
          Completion Date); or

     ii.  extreme weather and other unusual environmental conditions beyond
          Vendor's reasonable control delays Vendor's completion of Substantial
          Completion activities (in this case the parties agree that the period
          of delay shall be equal to the period of time associated with the
          duration of such extreme or unusual condition(s)); or

                                       6
<PAGE>

     iii. Vendor is not provided with all necessary and reasonable access to the
          System and each Site; or

     iv.  at the time Owner identifies the Last Site, more than 10% of the
          total number of Sites for the System are also identified
          contemporaneously therewith.

Owner shall also involve Vendor through all stages of the Site Acquisition
process.  In all cases, Owner shall be responsible for the provisioning of
backhaul facilities required at all Sites.  Such provisioning must be completed
prior to the start of Equipment integration by the Vendor at each site.

          "Hazardous Materials" mean material designated as a "hazardous
           -------------------
chemical substance or mixture" by the Administrator, pursuant to Section 6 of
the Toxic Substance Control Act, a "hazardous material" as defined in the
Hazardous Materials Transportation Act (49 U.S.C. 1801, et seq.), or a
"hazardous substance as defined in the Occupational Safety and Health Act
Communication Standard (29 CFR 1910.1200).

          "Independent Public Accountant" is defined in subsection 5.1(ii)(d).
           -----------------------------

          "In Revenue Service" or "In Revenue" means, with respect to a System,
           ----------------------------------
the commercial operation of such System, exclusive of operation for purposes of
determining compliance with this Contract or Beta Testing, whether or not
revenue is actually being generated.

          "Initial Period" is defined in subsection 10.1(f).
           --------------

          "Initial Software Features" mean those Software features contained in
           -------------------------
Vendor's standard base generic software releases together with those additional
optional software features listed in Exhibit C.

          "Installation and Integration" is described in Exhibit F.
           ----------------------------

          "Intellectual Property Rights" are defined in subsection 15.2.
           ----------------------------

          "Interoperability" means the ability of the Products to operate with
           ----------------
other Products and to operate with and within a System, and are in accordance
with the Specifications.

          "Joint Information" is defined in subsection 26.23.
           -----------------

          "Liquidated Damages" is defined in subsection 16.1.
           ------------------

          "List Price" means Vendor's published (from time to time) "network
           ----------
wireless systems price reference guide" or other price notification releases
furnished by Vendor for the purpose of communicating Vendor's prices or pricing
related information to Vendor's customers; however this does not include firm
price quotation.

                                       7
<PAGE>

          "Losses" mean any claims, demands, suits, proceedings, causes of
           ------
action, damages, costs, expenses, liabilities, reasonable attorneys' fees and
amounts paid in settlement.

          "Major Outage" means the cessation of operation of a System or System
           ------------
Element caused by a Defect or Deficiency attributable solely to Vendor, which
has a material adverse impact on Owner's ability to operate or maintain such
System, render billings to Owner's subscribers, or which causes a material
interruption in Owner's ability to continue to furnish or offer service
functionalities and features to such subscribers.  In addition, the following
capacity and/or coverage impairment conditions shall be considered a "Major
Outage":

               (i)   Any impairment caused by a Defect or Deficiency
          attributable solely to Vendor that has the effect of reducing by
          greater than [*] the number of traffic channel resources available in
          the System for access by Owner's subscribers; and/or

               (ii)  Any impairment caused by a Defect or Deficiency
          attributable solely to Vendor that has the effect of rendering greater
          than [*] of the equipped antenna sectors in the System unable to
          process origination, termination or hand-off requests; or that reduces
          the forward channel power of more than [*] of the equipped sectors in
          the System by greater than [*]; and/or

               (iii) The persistent occurrences of an impairment referenced in
          paragraphs (i) or (ii) above which, although each occurrence falls
          below the [*] threshold, each occurrence exceeds a threshold of
          greater than [*] of the applicable metric set forth above, and the
          total number of such occurrences is greater than [*] events during the
          Initial Period;

provided, however, that the foregoing definition shall only be applicable for
purposes of this Contract for the issuance of a Certificate of Final Acceptance
at the end of the Initial Period.

          "Maintenance and Instruction Manuals" mean the manuals listed in
           -----------------------------------
Exhibit P and prepared by the Vendor and delivered to the Owner pursuant to
Section 9.

          "Manufacturing" means the fabrication of the Equipment.
           -------------

          "Material Adverse Effect" is defined in subsection 24.2(b).
           -----------------------

          "Milestones" mean the performance milestones set forth in Exhibits A-
           ----------
1.

          "Minimum Purchase Commitment" is defined in subsection 1A4.
           ---------------------------

          "MSC" means a mobile switching center.
           ---

          "Net Price" is defined in subsection 5.1(ii)(b).
           ---------

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted
material has been filed separately with the Securities and Exchange
Commission.

                                       8
<PAGE>

          "Network Planning" means Work related to the design and engineering of
           ----------------
a System, including frequency clearance.

          "Operating Affiliates" mean a subsidiary or Affiliate of Owner which
           --------------------
is authorized to operate a PCS System and which places Purchase Orders pursuant
to this Contract.

          "Operating Manuals" mean the operating and configuration manuals
           -----------------
listed in Exhibit P to be prepared by the Vendor and delivered to the Owner
pursuant to Section 9 containing detailed procedures and specifications for the
operation of any System, AXE switch any Expansions and/or any part thereof
including but not limited to BTS manuals and BSC manuals.

          "Operative" is defined in subsection 26.22.
           ---------

          "Operator" shall mean the Owner, a Related Operator, an Operating
           --------
Affiliate or any independent contractor appointed by the Owner, which operates a
System.

          "Optimization Services" mean the RF optimization services described on
           ---------------------
Exhibit G.

          "Optional Software Features" mean Software features and
           --------------------------
functionalities for PCS Products available to Owner and which are not listed on
Exhibit C.

          "Owner's Notice" is defined in subsection 1A.2.
           --------------

          "Owner's Premises" is defined in subsection 8.3.
           ----------------

          "PCS" means personal communication services authorized by the Federal
           ---
Communications Commission.

          "Person" means an individual, partnership, limited partnership,
           ------
corporation, limited liability company, business trust, joint stock company,
trust, unincorporated association, joint venture, Governmental Entity or other
entity of whatever nature.

          "Primary Vendor" means Owner's or its Affiliates then current primary
           --------------
vendor (i.e., in terms of dollar costs of products, equipment, services and
software then on order and which have been ordered within the previous twelve
(12) months) for supplying Systems (other than Vendor).

          "Products" mean the collective reference to the Equipment and the
           --------
Software provided by the Vendor or any Subcontractor.

          "Proprietary Information" is defined in subsection 26.18.
           -----------------------

          "Punch List" means that list prepared in conjunction with any
           ----------
certificate which contains one (1) or more immaterial non-service-affecting
items which have not been fully completed as of the date of the accompanying
certificate; provided that such incomplete portion of
             -------- ----

                                       9
<PAGE>

the Work shall not, during its completion, materially impair the normal daily
operation of a System in accordance with the Specifications.

          "Purchase Order" means a written notice given by the Owner to the
           --------------
Vendor in compliance with the provisions of this Contract specifying the
Products, Services or other items of Work that the Vendor is authorized to
supply or commence in compliance with the terms of this Contract.

          "Purchase Order Date" means the date on which any Purchase Order is
           -------------------
issued by the Owner in accordance with the terms of this Contract.

          "Related Operator" means an entity (other than Owner) which holds a
           ----------------
license issued by the FCC permitting the holder to provide wireless PCS
services, which has entered into a contract with Owner to provide management
responsibilities with respect to the operation of such a service, which may
include agreements pursuant to which Owner resells to or shares with such entity
capacity on the Owner's System as, for example, when the Related Operator's cell
site equipment is interconnected with the Owner's MSC.

          "Request for Removal" is defined in subsection 4.5.

          "RF" means radio frequency.
           --

          "RTM License" is defined in subsection 13.6.
           -----------

          "RTU License" is defined in subsection 13.1.
           -----------

          "Services" mean the collective reference to all of the services to be
           --------
furnished by the Vendor as part of the Work including but not limited to all
design, engineering, network planning, construction, interoperability, supply,
delivery, installation, testing, training, repair, maintenance, technical and
other support services, and any and all other services to be furnished by the
Vendor as part of the Work in accordance with the terms of this Contract.

          "Site" means the physical location of a System Element Facility.
           ----

          "Site Acceptance Certificate" means a document submitted by the Vendor
           ---------------------------
to the Owner and signed by an authorized representative of the Owner and an
authorized officer of the Vendor stating that, in accordance with the
requirements of this Contract, the Vendor has successfully completed all Site
Acceptance Tests with respect to the Sites specified therein.

          "Site Acceptance Tests" mean the collective reference to the
           ---------------------
performance and reliability demonstrations specified in the Exhibits to
determine whether a site meets the Specifications and other requirements of this
Contract.

          "Site Acquisition" means the activities to be performed by the Owner
           ----------------
and/or its subcontractors in connection with identifying and acquiring
sufficient rights to Sites.

                                       10
<PAGE>

          "Site Acquisition Substantial Completion" means, with respect to any
           ---------------------------------------
System, the point at which the Owner shall have:  (i) acquired, by purchase,
lease or otherwise, rights to a sufficient number of Sites in the judgment of
the Owner; and (ii) that, with respect to all Sites within such System, all land
use and/or lease requirements necessary to be satisfied prior to the start of
construction activities in accordance with Applicable Laws have been satisfied.

          "Site Acquisition Substantial Completion Date" means, with respect to
           --------------------------------------------
any System, the date on which the Owner shall have achieved Site Acquisition
Substantial Completion.

          "Site Preparation" means the demolition, construction and renovation
           ----------------
work (for example, roads, grading, fencing and structural improvements,
including but not limited to any buildings, towers and commercial power) and the
preparation of co-location sites necessary for the installation of Equipment or
the operation of the System, Expansions and/or any part thereof.

          "Site Preparation Substantial Completion" means the completion of all
           ---------------------------------------
Site Preparation with respect to a Site except for Punch List items.

          "Site Preparation Substantial Completion Certificate" is defined in
           ---------------------------------------------------
subsection 10.1(b).

          "Software" means:  (i) the computer software licensed to the Owner
           --------
pursuant to the terms of this Contract; (i) any Software Enhancements, Software
Maintenance Releases, Software Combined Releases and Software Upgrades; and
(iii) any Documentation furnished hereunder in respect of clauses (i) and/or
(ii) of this definition.

          "Software Backwards Compatibility Warranty" is defined in subsection
           -----------------------------------------
13.3.

          "Software Combined Release" means a Software Upgrade, which is at any
           -------------------------
time combined with any Software Enhancement.

          "Software Enhancements" means modifications or improvements made to
           ---------------------
the Software relating to Products which improve performance, capabilities or
capacity of the Software revision level with which it is associated or which
provide additional functions to the Software.

          "Software Maintenance Release" means issues of Software which correct
           ----------------------------
defects in preceding versions of Software.

          "Software Upgrades" mean periodic updates to the Software issued by
           -----------------
the Vendor to the Owner under Warranty and Software maintenance obligations
correct defects in the Software, or otherwise to correct shortcomings in the
Software.

          "Software Warranty" is defined in subsection 18.3.
           -----------------

          "Source Code" means any version of Software incorporating high level
           -----------
or assembly language that generally is not directly executable by a processor.

                                       11
<PAGE>

          "Spares" is defined in Exhibit K.
           ------

          "Specifications" means the collective reference to the specifications,
           --------------
milestones and performance standards (including all of the Services and
Products) as set forth in this Contract, including but not limited to Exhibit A-
1, Exhibit I, Exhibit J, Exhibit M; provided that:  (i) the Specifications shall
                                    -------- ----
be deemed to include a requirement that all of the Products and Services shall
be in accordance with ANSI standards except when otherwise stated in a specific
Exhibit or otherwise agreed by the parties; and (ii) with respect to Services
and Products for which specifications and performance standards are not provided
and listed in a specific Exhibit, the term "Specifications" shall refer to
Vendor's published specifications in respect thereof.

          "Subcontractor" means a contractor, vendor, supplier, licensor or
           -------------
other Person, having a direct or indirect contract with the Vendor or with any
other Subcontractor of the Vendor who has been hired to assist the Vendor in the
performance of its obligations under this Contract.

          "Substantial Completion" means the time at which the Owner signs the
           ----------------------
Certificate of Substantial Completion.

          "System" means the Sites identified by the Owner to the Vendor in
           ------
writing as collectively comprising a System.

          "System Element" means the Products required to perform radio,
           --------------
switching and/or system element functions for a System and/or any Expansions.

          "System Element Facility" means the structures, improvements,
           -----------------------
foundations, towers, and other facilities necessary to house or hold any System
Element and any related Products to be located at a particular location.

          "Taxes" is defined in subsection 5.2.
           -----

          "Test Market" is defined in subsection 1A.9.
           -----------

          "Test Period" is defined in subsection 1A.9.
           -----------

          "Test Period Extension" is defined in 10.1(f).
           ---------------------

          "Training" is defined in subsection 9.4.
           --------

          "Vendor Developments" is defined in subsection 14.3.1.
           -------------------

          "Vendor Event of Default" is defined in subsection 24.2.
           -----------------------

          "Vendor Financing" means a loan made or arranged by the Vendor, or its
           ----------------
affiliates, to the Owner according to the terms and conditions of the loan
documentation executed by Owner and Vendor affiliates on October 20, 2000.

                                       12
<PAGE>

          "Vendor's First Notice" is defined in subsection 1A.1.
           ---------------------

          "Vendor's Second Notice" is defined in subsection 1A.3.
           ----------------------

          "Warranty" means any one (1) or more of the Equipment and Services
           --------
Warranty, Expansions Warranty, Software Warranty, Software Backwards
Compatibility Warranty, Equipment Backwards Compatibility Warranty, Compliance
Warranty and the Year 2000 Warranty.

          "Warranty Period" is defined in subsection 18.1.
           ---------------

          "Work" means the furnishing of Products hereunder, and the performance
           ----
of work, engineering services, installation services and all other related
activities and obligations required to be performed by the Vendor pursuant to
this Contract.

          1.2  Other Definitional Provisions.  (a)  When used in this Contract,
               -----------------------------
unless otherwise specified therein, all terms defined in this Contract shall
have the defined meanings set forth herein.  Terms defined in the Exhibits are
deemed to be terms defined herein; provided that in the case of any terms that
                                   -------- ----
are defined both in this Contract and/or an Exhibit, the definitions contained
in this Contract shall supersede such other definitions for all purposes of this
Contract; provided further, that definitions contained in any Exhibit shall
          -------- -------
control as to such Exhibit.

          (b)  The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Contract refer to this Contract as a whole and not to
any particular provision of this Contract and section, subsection, schedule and
exhibit references are to this Contract unless otherwise specified.  Reference
herein to Section shall mean any and all subsections thereof.

          (c)  The meanings given to terms defined in this Contract are
applicable to both the singular and plural forms of such terms.

          SECTION 1A NOTICES.

1A.1 Vendor's First Notice.  On or before September 20, 2000, Vendor shall give
     ---------------------
to Owner a notice (the "Vendor's First Notice") that it will be capable of and
                        ---------------------
intends to deliver to Owner, Products and Services compliant with the minimum
Equipment Specifications set forth in Exhibit M.  If the Vendor's First Notice
is delivered after March 20, 2000, but no later than September 20, 2000, then
the Equipment shall operate in accordance with all applicable 1xRTT standards.
The Vendor's First Notice shall specify a date on which Vendor will be ready to
deliver the compliant Systems to Owner (the "Delivery Date").  The Delivery Date
                                             -------------
specified in the notice may not be sooner than twelve (12) months after the date
of Vendor's First Notice or later than September 20, 2001.  To be effective, the
Vendor's First Notice must include the detailed Product Specifications required
for Milestone 1 as described in Exhibit A-1.  If Vendor has not delivered the
Vendor's First Notice by September 20, 2000, Owner shall give Vendor notice of
its failure to give the Vendor's First Notice and, if Vendor has not given the
Vendor's First Notice within five (5) Business Days after notice that the
Vendor's First Notice is late, this Contract shall terminate without further
liability of either party.

                                       13
<PAGE>

1A.2 Owner's Notice.  No sooner than the date seven (7) months before the
     --------------
Delivery Date, but not later than six (6) months before the Delivery Date, Owner
shall provide notice ("Owner's Notice") to Vendor which notice shall contain:
                       --------------
(i) if the financing terms and conditions, at the time of the Owner's Notice,
offered by its Primary Vendor have materially changed in Owner's favor, Owner
shall notify Vendor that it is requesting comparable financing terms and
conditions; and (ii) if prices have been agreed upon in this Contract and
industry pricing has changed in Owner's favor or if no prices have been agreed
upon in this Contract, then Owner shall notify Vendor that it is requesting that
the prices for Products and Services shall be established pursuant to subsection
1A.8 below.  Additionally, at the time of the Owner's Notice, Owner shall
provide Vendor with a copy of Owner's current business plan and financial
information to enable Vendor to evaluate and make an informed business decision
with regard to whether it wishes to offer the proposed vendor financing.  The
Owner's Notice shall provide reasonable specificity to enable Vendor to evaluate
the Owner's Notice.  Owner further agrees to reasonably cooperate with Vendor by
providing any non-confidential information reasonably requested by Vendor for
purposes of verifying the information contained in Owner's Notice.

1A.3 Vendor's Second Notice.  Through and including the date that is thirty (30)
     ----------------------
calendar days after receipt of the Owner's Notice, Vendor shall have the option
to terminate this Contract if any of the following occur:  (i) Vendor's Board of
Directors does not approve the Vendor Financing and does not execute the
documentation as contemplated by subsection 1A.7; (ii) the Products or Services
prices set forth in the Contract, if any, are changed, or established, as
provided in subsection 1A.8, and Vendor does not approve any such proposed new
prices; (iii) the financing terms change from those set forth in the Contract as
provided in subsection 1A.7, and Vendor disapproves any such proposed new terms;
or (iv) if Owner's business plan or financial information as provided by Owner
does not reasonably meet Vendor's satisfaction.  Vendor shall use commercially
reasonable efforts to have its Board of Directors approve the Vendor Financing.
If any of the items (i) through (iv) above within this subsection 1A.3 occur,
Vendor may terminate this Contract by providing written notice to Owner (the
"Vendor's Second Notice") and this Contract shall terminate without further
-----------------------
liability of either party.  If none of the above items (i) through (iv) occur,
then Vendor's Second Notice shall provide written notice to Owner that the
required approvals have been received, that Vendor' intends to proceed pursuant
to the terms herein and that prices for all Products and Services are consistent
with the requirements of this Contract.  If Vendor fails to give the Vendor's
Second Notice on or before the date that is thirty (30) calendar days after
receipt of the Owner's Notice, Owner shall give Vendor notice of its failure to
give the Vendor's Second Notice and, if Vendor has not given the Vendor's Second
Notice within five (5) Business Days after notice that the Vendor's Second
Notice is late, then Vendor shall have been deemed to have terminated its
obligations hereunder, and this Contract shall terminate without further
liability of either party.

1A.4 Purchase of Products and Services.  Owner agrees to purchase (or license in
     ---------------------------------
the case of Software) from Vendor those specific Products and Services selected
by Owner for mobile and fixed wireless communications Systems based on CDMA
digital wireless communications technology in markets in the United States,
pursuant to the terms and conditions set forth in this Contract.  Subject to
Section 1A.9, the minimum commitment of Owner to purchase and Vendor to sell
shall be $330,000,000 of total value, subject to adjustment pursuant to
subsection 17.1(d)

                                       14
<PAGE>

("Minimum Purchase Commitment").  The selection of the specific Products and
  ---------------------------
Services purchased by Owner to satisfy its obligations under this Contract shall
be determined by Owner from the Products and Services offered by Vendor under
this Contract.  The purchase obligations of Owner are subject to:  (i) the
existence of Available Markets at any time during the Contract Term after the
Delivery Date; (ii) Vendor being prepared to deliver the first Specification
compliant System for commercial operation on or before [*] (iii) Vendor
complying with this Contract, the Specifications and the Milestones; and (iv)
Vendor Financing and pricing in accordance with this Contract, including
subsections 1A.7 and A.8.  If Vendor fails to meet the Specifications, any
Milestones, fails to provide the Vendor Financing and/or pricing requirements or
fails to be prepared to deliver to Owner the first System for commercial
operation on or before [*], Owner shall have the option to terminate this
Contract without any further liability to either party.

1A.5 Technical Specifications.  The Systems to be purchased by Owner and sold by
     ------------------------
Vendor shall comply with the Specifications and the Milestones and those
additional specifications as published by Vendor from time to time thereafter.

1A.6 Development Process and Milestones.  To demonstrate that each System to be
     ----------------------------------
sold by Vendor will meet the Specifications, Vendor shall follow the "Procedures
                                                                      ----------
and Milestones for System Development and Monitoring Program" set forth in
------------------------------------------------------------
Exhibit A-1.

1A.7 Special Provisions Regarding Vendor Financing.  Subject to subsection 1A.3,
     ---------------------------------------------
Vendor shall provide to Owner, Vendor Financing in an amount not less than [*]
of the purchase price of all Products and Services furnished to Owner by Vendor
hereunder or, at Owner's request, Vendor Financing in an amount not less than
[*] of the purchase price of all Products and Services furnished to Owner by
Vendor on the more favorable terms described in subsection 1A.2.

1A.8 Pricing.  The pricing for the Products and Services to be purchased by
     -------
Owner from Vendor shall not be higher than the pricing for comparable Systems
available to Owner from its Primary Vendor as of the date of Owner's Notice.
The parties agree to use commercially reasonable efforts to cause the
determination of Vendor's infrastructure prices versus the infrastructure prices
of the Primary Vendor to be based on an "apples-to-apples" comparison (taking
into consideration not only the pricing of products and services, the cost to
obtain, install, maintain and operate the system, and the terms and conditions
of any other material consideration proposed to be given or received by any
competing bidder, including the financing terms and conditions and each of the
Competitive Factors).

1A.9 Vendor Preference.  Provided that Vendor has:  (i) given a timely Vendor's
     -----------------
First Notice; (ii) not terminated this Contract pursuant to a Vendor's Second
Notice, and has complied with all of the requirements of subsection 1A.3; and
(iii) satisfied the conditions of subsections 1A.4 through 1A.8 above, Owner
shall purchase from Vendor Products and Services for the next Available Market
deployed by Owner or its Affiliates after the Delivery Date (the "Test Market").
                                                                 -----------
The System deployed in the Test Market shall be subject to a "soak" period,
during which it will be operated for [*] after the Substantial Completion date
in order to determine whether it is operating in accordance with this Contract
and the Specifications (the "Test Period").  If a Major Outage occurs at any
                             -----------
time during the last [*] of the Test Period, then the Test Period shall be
extended until the date on which the System has operated for [*] consecutive [*]
after the cause of the latest Major Outage

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted
material has been filed separately with the Securities and Exchange Commission.

                                       15
<PAGE>

has been corrected to the reasonable satisfaction of the Owner and Vendor. For
the Test Market, the Initial Period, defined in subsection 10(f), shall be
extended until the last day of the Test Period, as extended from time to time
pursuant to the terms of this subsection. For the Test Market, Final Acceptance
shall not occur until the successful completion of the Test Period. Provided the
System in the Test Market has successfully completed the Test Period and reached
Final Acceptance prior to September 20, 2002, and Vendor has otherwise complied
with the terms of this Contract, Owner shall purchase during the Contract Term
from Vendor additional Products and Services for deployment in its remaining
Available Markets in accordance with the following: (i) if as of the expiration
of the Test Period the projected cost (as reasonably set forth in Owner's
business plan) to deploy Products and Services in all of the remaining Available
Markets is equal to or greater than $330,000,000 (less the price of the Products
and Services previously deployed in the Test Market), then Owner agrees to
purchase, during the Contract Term, a minimum of $330,000,000 (less the price of
Products and Services previously deployed in the Test Market) of Products and
Services for deployment in such remaining Available Markets; or (ii) if as of
the expiration of the Test Period the projected cost (as reasonably set forth in
Owner's business plan) to deploy Products and Services in all of the remaining
Available Markets is less than $330,000,000 (less the price of the Products and
Services previously deployed in the Test Market), then Owner shall purchase from
Vendor during the Contract Term all of its Products and Services requirements
for the remaining Available Markets until such time as Owner has purchased from
Vendor Products and Services up to an aggregate total cost of $330,000,000 (less
the price of the Products and Services previously deployed in the Test Market).
If the System in the Test Market fails to reach Final Acceptance or fails to
successfully complete the Test Period in accordance with the Specifications and
this Contract prior to September 20, 2002, then Owner shall have the option to
terminate this Contract without any further liability to Owner. Owner agrees
that it will deploy its Products and Services in good faith and in a
commercially reasonable manner and that it will not arrange the deployment
schedule so as to deploy Products and Services in the Contiguous Markets where
the purpose is to delay the deployment of Vendor's Products and Services in the
Test Market.

          SECTION 2.  SCOPE OF WORK AND RESPONSIBILITIES

          2.1  Scope of Work.  During the Contract Term and in accordance with
               -------------
Purchase Orders issued to Vendor from time to time, the Vendor shall engineer,
design, plan, manufacture, construct, install, test and perform all Work.  The
terms of this Contract shall also apply to Purchase Orders issued by Operating
Affiliates, Related Operators and by Owner, for and on behalf of its Related
Operators, provided that in each case, the Purchase Orders are made pursuant to
           -------- ----
and incorporate by reference the terms of this Contract.  The Vendor shall be
responsible for providing in accordance with the terms of this Contract any and
all items and services which are expressly included by the terms of this
Contract or in the Exhibits.  The Vendor shall furnish all labor, materials,
tools, transportation and supplies required to complete its obligations in
accordance with this Contract.

     In instances where Purchase Orders are placed by an Operating Affiliate or
a Related Operator such Operating Affiliate or Related Operator shall receive
all of the rights and benefits of the Owner hereunder with respect to all
Products and Services furnished by Vendor to such Operating Affiliates or
Related Operators, including without limitation the full benefits or all

                                       16
<PAGE>

Warranties, software licensing arrangements, Software Upgrades, Software
Enhancements, Equipment Upgrades and Equipment Enhancements. Owner shall be
considered the purchaser only for purposes of the obligation of payment.

          2.2  Reserved.

          2.3  Site Acquisition.  The Owner shall acquire all Sites.  The
               ----------------
Vendor, at its request, shall be kept informed of the progress made on ongoing
Site Acquisition activity.  As the Site Acquisition progresses, the Vendor
agrees to alter on a regular basis Vendor's engineering plan to determine a new
search ring or rings to take into account any changes or modifications requested
by the Owner due to the Owner's inability to acquire sufficient rights to a
location which could constitute a Site in a timely or economic manner; provided
                                                                       --------
that all such alterations requested by Owner shall be considered by Owner and
----
addressed pursuant to the Change Order provisions described in Section 11 below.
Vendor shall offer to Owner Site Acquisition services as defined on Exhibit E
and according to the pricing set forth on Exhibit B.  When making changes to the
RF engineering plan, the Vendor shall take into account the Site Acquisition
already completed by the Owner.  Upon Site Acquisition Substantial Completion,
Owner shall notify Vendor of the Site Acquisition Substantial Completion Date.

          2.4  Expansions.  During the five (5) year period commencing on the
               ----------
delivery of the first System for commercial operations, the Owner may, from time
to time, order Expansions from the Vendor, subject to the provisions of Section
12.  The price and terms of such Expansions shall be as set forth in Exhibit B

(as may be amended from time to time) (collectively, the "B Exhibits").
-------------------------------------                     ----------

          2.5  Review of Contract.  Each party has examined in detail and
               ------------------
carefully studied and compared the Contract with all other information furnished
by the other party and has promptly reported to the other party any material
errors, inconsistencies or omissions so discovered or discovered by any of its
Subcontractors.

          2.6  Eligibility under Applicable Laws and Applicable Permits.  The
               --------------------------------------------------------
Vendor shall be responsible for ensuring that the Vendor and its Subcontractors
are and remain eligible under all Applicable Laws and Applicable Permits to
perform the Work under this Contract in the various jurisdictions involved
including, to the extent that Vendor will be responsible for construction for
any particular component of the Work, all such construction will be done in
accordance with all applicable FCC requirements.  Each of the Owner and the
Vendor shall be responsible for obtaining and maintaining in full force and
effect the Applicable Permits listed as its responsibility in the applicable
Exhibits.  Owner shall use its best efforts to obtain such approvals, licenses,
permits, tariffs, and/or other authorities from the FCC and state and local
public utilities commissions as may be necessary for construction and operation
of a PCS System.

          2.7  Further Assurances.  The Vendor shall execute and deliver all
               ------------------
reasonable further instruments and documents, and will, in good faith, consider
all reasonable requests for further action, including but not limited to
assisting the Owner in filing notices of completion with the appropriate state
and local Governmental Entity, that may be necessary or that the Owner may
reasonably request in order to enable the Owner or the Vendor to complete
performance of the

                                       17
<PAGE>

Work or to effectuate the purposes or intent of this Contract. All such requests
shall be addressed pursuant to the Change Order procedures described below in
Section 11.

          2.8  Liens and Other Encumbrances.  (a) The Vendor covenants and
               ----------------------------
agrees, subject to Vendor's receipt from Owner of full payment in respect
thereof, to:

               (i)  protect and keep free all Systems, Expansion and/or any and
     all interests and estates therein acquired from the Vendor, and all
     improvements and materials now or hereafter placed thereon under the terms
     of this Contract, from any and all claims, liens, charges or encumbrances
     of the nature of mechanics, labor or materialmen liens or otherwise arising
     out of or in connection with performance by any Subcontractor, including
     services or furnishing of any materials hereunder, and to promptly have any
     such lien released by bond or otherwise; and

               (ii)  give notice of this subsection to each Subcontractor before
     such Subcontractor furnishes any labor or materials for any System.

          (b)  If any laborers', materialmens', mechanics', or other similar
lien or claim thereof is filed by any Subcontractor, the Vendor shall cause such
lien to be satisfied or otherwise discharged, or shall file a bond in form and
substance satisfactory to the Owner in lieu thereof within ten (10) Business
Days of the Vendor's receipt of notice of such filing.  If any such lien is
filed or otherwise imposed, and the Vendor does not cause such lien to be
released and discharged forthwith, or file a bond in lieu thereof, then, without
limiting the Owner's other available remedies, the Owner has the right, but not
the obligation, to pay all sums necessary to obtain such release and discharge
or otherwise cause the lien to be removed or bonded to the Owner's satisfaction
from funds retained from any payment then due or thereafter to become due to the
Vendor.

          (c)  The Owner reserves the right to post or place within any System
notices of non-responsibility or to do any other act required by Applicable Law,
to exempt the Owner from any liability to third parties by reason of any work or
improvements to be performed or furnished hereunder; provided that failure by
                                                     -------- ----
the Owner to do so shall not release or discharge the Vendor from any of its
obligations hereunder.

          2.9  Duty To Inform Itself Fully; Waiver of Defense.  (a)  Each party
               ----------------------------------------------
shall be deemed to have notice of and to have fully examined and approved the
Specifications, the Exhibits and all other documents referred to herein, and all
drawings, specifications, schedules, terms and conditions of this Contract,
regulations and other information in relation to this Contract and/or any
amendments, modifications or supplements thereto at any time on or after the
Effective Date and to have fully examined, understood and satisfied itself as to
all information of which it is aware and which is relevant as to the risks,
contingencies and other circumstances which could affect this Contract and in
particular the installation of any System or any part thereof.

          2.10  Special Provisions Regarding Vendor Financing.  The financing
                ---------------------------------------------
made available to Owner pursuant to separate financing agreements will provide
Owner with an available source of funds ("Funds") for purchases of products and
                                          -----
services other than the Products and Services specified hereunder for the
Systems.  The Funds for such other products and services are

                                       18
<PAGE>

subject to certain limitations as set forth in the separate financing
agreements. In the event Owner desires to utilize the Funds for the purchase of
any additional products or services offered by Vendor to be used in connection
with the Systems, Vendor shall be treated as a preferred vendor and will be
provided the first opportunity to provide such additional products and services
at competitive market prices. In the event that Vendor does not offer such
services or manufacture such products of equivalent Form, Fit and Function or
does not make such products or services available for purchase at a competitive
market prices, Owner shall be permitted to purchase such items from third
parties utilizing the Funds. For purposes of this subsection, competitive market
prices shall mean prices that are no more expensive than similar products and
services available in the market, taking into account all relevant terms and
conditions.

          SECTION 3.  PURCHASE ORDERS AND SCHEDULES

          3.1  Purchase Orders.  The Owner and any Operating Affiliate may
               ---------------
deliver Purchase Orders to the Vendor at any time and from time to time during
the Contract Term.  Such Purchase Orders shall be sent to the Vendor either by
certified mail, electronic transmission or another mutually acceptable manner to
the address specified in Exhibit L of this Contract.  All Purchase Orders shall
be governed by the terms and conditions of this Contract, unless otherwise
agreed by the parties in writing.  Each Purchase Order shall specify, in
reasonable detail, the Products, Services or other items of Work to be provided
by the Vendor.

          3.2  Delivery under the Contract.  The Vendor shall complete the Work
               ---------------------------
specified in each Purchase Order in accordance with the terms and conditions of
this Contract.

          3.3  Order Acceptance.  All Purchase Orders submitted by Owner shall
               ----------------
be deemed to incorporate and be subject to the terms and conditions of this
Contract unless otherwise agreed in writing.  All Purchase Orders, including
electronic orders, shall contain the information necessary for Vendor to fulfill
the order.  All schedules and requested dates are subject to Vendor's
concurrence, provided that if orders are made within the agreed to lead times
             -------- ----
specified in Exhibit L, Vendor shall not withhold its concurrence to the
requested dates.  No provision or data on any Purchase Order or contained in any
documents attached to or referenced in any Purchase Order, or any subordinate
document (such as shipping releases), which is inconsistent with the terms of
this Contract shall be binding, except data necessary for Vendor to fill the
order.  All such other data and provisions are hereby rejected.  Electronic
orders shall be binding on Owner notwithstanding the absence of a signature,
provided that the parties have implemented a mutually acceptable electronic
-------- ----
order process and such orders deemed to be binding have been issued by Owner and
accepted by Vendor in accordance with the process agreed upon by the parties.
Order acceptance provisions, together with delivery schedules and intervals and
forecast requirements are set forth in Exhibit L.

     While it is Vendor's objective to provide Owner with an acknowledgment of
each Purchase Order received, Owner shall advise Vendor to the extent that Owner
becomes aware of any missing or late notifications to ensure that the Purchase
Order has not been lost.

     Changes made by Owner to an accepted Purchase Order shall be treated as a
separate order unless the parties expressly agree otherwise.  If any such change
affects Vendor's ability to meet its

                                       19
<PAGE>

obligations under the original Purchase Order, any price, shipment date, or
completion date quoted by Vendor with respect to such original order is subject
to change and shall be addressed pursuant to the Change Order provisions below
in Section 11.

          3.4  Forecasts.  Owner shall provide to Vendor regular forecasts of
               ---------
Owner's annual Product and Services needs.  If the quantities ordered are more
than [*] greater than forecast quantities, Vendor shall be permitted a
reasonable extension of time to fulfill such orders and achieve the Milestones
required of Vendor hereunder.

          3.5  Inventory Control and Bar-coding.  Vendor shall, at no additional
               --------------------------------
charge, pack and mark shipping containers in accordance with its standard
practices for domestic shipments.  Where in order to meet Owner's requests,
Vendor packs and/or is required to mark shipping cartons in accordance with
Owner's specifications, Vendor shall invoice Owner additional charges for such
packing and/or marking.  Vendor shall:  (i) enclose a packing memorandum with
each shipment and, if the shipment contains more than one package, identify the
package containing the memorandum; and (ii) mark Products as applicable for
identification in accordance with Vendor's marking specifications (for example,
model/serial number and month, year of manufacture).

          SECTION 4.  SUBCONTRACTORS

          4.1  Subcontractors.  The Vendor may subcontract any portion of its
               --------------
obligations under this Contract, but no such subcontract shall relieve Vendor
from primary responsibility and liability for the performance of Vendor's
covenants and obligations under this Contract.  Regardless of whether or not the
Vendor obtains approval from the Owner or a Subcontractor, or whether the Vendor
uses a Subcontractor recommended by the Owner, use by the Vendor of a
Subcontractor shall not, under any circumstances:  (i) give rise to any claim by
the Vendor against the Owner if such Subcontractor breaches its subcontract or
contract with the Vendor; (ii) give rise to any claim by such Subcontractor
against the Owner; (iii) create any contractual obligation by the Owner to the
Subcontractor; (iv) give rise to a waiver by the Owner of its rights to reject
any Defects or Deficiencies or Defective Work; or (v) in any way release the
Vendor from being solely responsible to the Owner for the Work to be performed
under this Contract.

          4.2  Vendor's Liability.  The Vendor is responsible for all of its
               ------------------
obligations under this Contract, including the Work, regardless of whether a
subcontract or supply agreement is made or whether the Vendor relies upon any
Subcontractor to any extent.  The Vendor's use of Subcontractors for any of the
Work shall in no way increase the Vendor's rights or diminish the Vendor's
liabilities to the Owner with respect to this Contract, and in all events,
except as otherwise expressly provided for herein, the Vendor's rights and
liabilities hereunder with respect to the Owner shall be as though the Vendor
had itself performed such Work.  The Vendor shall be liable for any delays
caused by any Subcontractor as if such delays were caused by the Vendor.

          4.3  No Effect of Inconsistent Terms in Subcontracts.  The terms of
               -----------------------------------------------
this Contract shall in all events be binding upon the Vendor regardless of and
without regard to the existence of any inconsistent terms in any agreement
between the Vendor and any Subcontractor whether or not and without regard to
the fact that the Owner may have directly and/or indirectly had notice of any
such inconsistent term.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted
material has been filed separately with the Securities and Exchange Commission.

                                       20
<PAGE>

          4.4  Assignability of Subcontracts to Owner.  Vendor shall use
               --------------------------------------
reasonable efforts to have each agreement between the Vendor and a Subcontractor
contain a provision stating that, in the event that the Vendor is terminated for
cause, convenience, abandonment of this Contract or otherwise then:  (i) each
Subcontractor shall continue its portion of the Work as may be requested by the
Owner; and (ii) such agreement permits assignment thereof without penalty to the
Owner and, in order to create security interests, to third parties designated by
Owner, in either case at the option of the Owner and for the same price and
under the same terms and conditions as originally specified in such
Subcontractor's agreement with the Vendor.

          4.5  Removal of Subcontractor or Subcontractor's Personnel.  The Owner
               -----------------------------------------------------
has the right at any time to request removal of a Subcontractor and/or any of a
Subcontractor's personnel from Work on the System upon reasonable grounds and
reasonable prior notice to Vendor.  Such request (a "Request for Removal") shall
                                                     -------------------
be in writing and shall specify the Owner's reasoning therefor.  The Vendor
promptly shall issue a written response to any such Request for Removal,
specifying the reasoning for its disagreement or agreement, as the case may be,
with the reasoning contained in the Request for Removal.  If the parties fail to
agree, this matter shall be handled in accordance with the dispute resolution
procedures in Section 23.  The exercise of such right by the Owner shall have no
effect on the provisions of subsections 4.1 and 4.2.

          4.6  Subcontractor Insurance.  The Vendor shall require its
               -----------------------
Subcontractors to obtain, maintain and keep in force, during the time they are
engaged in providing Products and Services hereunder, insurance coverage of the
types and levels customary in the industry (provided that the maintenance of any
                                            -------- ----
such Subcontractor insurance shall not relieve the Vendor of its other
obligations pursuant to this Contract).  The Vendor shall, upon the Owner's
request, furnish the Owner with evidence of such insurance in form and substance
reasonably satisfactory to the Owner.

          4.7  Review and Approval not Relief of Vendor Liability.  No
               --------------------------------------------------
inspection, review or approval by the Owner permitted under this Contract of any
portion of the Work shall relieve the Vendor of any duties, liabilities or
obligations under this Contract, but nothing contained in this subsection shall
be deemed a bar of any waiver given by the Owner to the Vendor pursuant to and
in accordance with the terms of this Contract.

          4.8  Vendor Warranties.  Except as otherwise expressly provided in
               -----------------
Section 18, the warranties of the Vendor pursuant to Section 18 shall be deemed
to apply to all Work performed by any Subcontractor as though the Vendor had
itself performed such Work and to all Products supplied by any third-party
vendor or other subcontractor as though the Vendor itself had supplied such
Products.  Except as otherwise specifically provided in Section 18, the parties
agree that such warranties shall not be enforceable merely on a "pass-through"
basis but that Owner may, but shall not be obligated to, enforce such warranties
of any Subcontractor to the extent that the Owner determines that the Vendor is
not paying and/or performing its warranties; provided that any such election by
                                             -------- ----
the Owner shall not relieve the Vendor from any obligations or liability with
respect to any such warranty.

          4.9  Payment of Subcontractors.  The Vendor shall make all payments it
               -------------------------
is contractually required to make to all Subcontractors (except in the case of
legitimate disputes

                                       21
<PAGE>

between the Vendor and any such Subcontractor arising out of the agreement
between the Vendor and such Subcontractor) in accordance with the respective
agreements between the Vendor and its Subcontractors such that no Subcontractor
shall be in a position to enforce any liens and/or other rights against the
Owner, the System, any Products or any part thereof.

          4.10  Copies.  Subject to any confidentiality obligations insisted
                ------
upon by third party providers, including Subcontractors, Vendor will use its
good faith and reasonable efforts to provide Owner with any and all relevant
agreements, understandings, subcontracts and other documents pertaining to the
provision of Products or Services by a Subcontractor which Owner may reasonably
require in order for it to be provided with the information necessary to
exercise any of its rights under this Contract.

          4.11  Benefit of Subcontracts.  In addition to anything else provided
                -----------------------
for in this Contract, the Owner shall be entitled to the following benefits and
rights of the Vendor under its contracts with any applicable third-party vendors
or other Subcontractors:  all rights to conduct in-house tests, to receive
notice of upgrades and enhancements, and to purchase spare parts; provided
                                                                  --------
however, that the Vendor shall maintain sole responsibility for all obligations
-------
and other duties under all such contracts.

          SECTION 5.  PRICES AND PAYMENT

          5.1  Prices.  (i)  The prices for the Products, Services and other
               ------
items of Work for the Contract Term are set forth in the B Exhibits.  The prices
for Expansions are also set forth in the B Exhibits.

                        (ii)  [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted
material has been filed separately with the Securities and Exchange Commission.

                                       22
<PAGE>

     [***]

     [***]

          5.2  Taxes.  The Owner shall reimburse Vendor for all present or
               -----
future taxes, levies, imposts, deductions, charges, withholdings and liabilities
("Taxes") imposed on the Vendor by any Governmental Entity relating to the
  -----
provision of Products and Services by the Vendor to the Owner under this
Contract, provided, however, that the Owner shall not be liable for and shall
not pay or reimburse Vendor for any Taxes on or measured by the income or
receipts of the Vendor.  If the Owner shall pay Taxes for which the Vendor
receives a credit, then the Vendor shall reimburse to the Owner an amount equal
to such credit.

          5.3  Payment.  Payment for the Products and Services to be supplied
               -------
pursuant to this Contract shall occur as follows (in each case following
submission of an invoice by the Vendor which shall properly document, to the
reasonable satisfaction of the Owner, all the items included):

          (a)  Products for Systems:  except as set forth in subsections (b) and
               --------------------
(c) below,

               (i)   [*] of the amount of all Purchase Orders completed by the
     Vendor with respect to a Site shall be invoiced upon shipment of the
     Products in respect of such Purchase Orders;

               (ii)  [*] of the amount of all Purchase Orders completed by the
     Vendor with respect to a Site shall be invoiced upon completion of
     Installation and Integration of the Products with respect to each Site;

               (iii) [*] of the amount of all Purchase Orders completed by the
     Vendor with respect to a Site shall be invoiced upon the date Owner signs a
     Certificate of Substantial Completion with respect to the Products forming
     part of such Purchase

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted
material has been filed separately with the Securities and Exchange Commission.

                                       23
<PAGE>

     Orders; provided that in the event that a Certificate of Substantial
             -------- ----
     Completion is not issued within five (5) Business Days after the Guaranteed
     Substantial Completion Date because of a delay in reaching Substantial
     Completion solely attributable to the failure or lack of performance of
     Owner to satisfy its obligations and commitments in a timely manner, such
     amount shall be invoiced on the fifth (5/th/) Business Day following
     Substantial Completion; and

               (iv) the balance of all amounts due Vendor pursuant to completed
     Purchase Orders with respect to Products for a System shall be invoiced
     upon Final Acceptance of such System.

          (b)  Services.  Services shall be invoiced as performed, or as soon
               --------
thereafter as practical but in no event more frequently than monthly, provided
                                                                      --------
that Installation and Integration Services and Optimization Services will only
----
be invoiced after the Owner signs a Certificate of Substantial Completion in
respect of the System for which such Services are rendered; provided that in the
                                                            -------- ----
event that a Certificate of Substantial Completion is not issued within five (5)
Business Days after the Guaranteed Substantial Completion Date because of a
delay in reaching Substantial Completion solely attributable to the failure or
lack of performance of Owner to satisfy its obligations and commitments in a
timely manner, such amount shall be invoiced on the fifth (5/th/) Business Day
following Substantial Completion.

          (c)  Optional Software Features and Spares.  The purchase price for
               -------------------------------------
the initial Optional Software Features and Spares shall be invoiced after the
Owner signs a Certificate of Substantial Completion in respect of the System for
which such initial Optional Software Features and Spares are furnished; provided
                                                                        --------
that in the event that a Certificate of Substantial Completion is not issued
----
within five (5) Business Days after the Guaranteed Substantial Completion Date
because of a delay in reaching Substantial Completion attributable solely to the
failure or lack of performance of Owner to satisfy its obligations and
commitments in a timely manner, such amount shall be invoiced on the fifth
(5/th/) Business Day following Substantial Completion.

          (d)  Expansions.
               ----------

               (i)   [*] of the amount of all Purchase Orders completed by the
     Vendor with respect to Products for which Vendor provides installation
     Services pursuant to an Expansion shall be invoiced upon delivery of such
     Products; and

               (ii)  [*] of the amount of all Purchase Orders completed by
     Vendor with respect to Products for which Vendor provides installation
     Services pursuant to an Expansion shall be invoiced upon completion of
     installation of such Products; and

               (iii) [*] of the amount of all Purchase Orders completed by the
     Vendor with respect to Products for which Vendor provides no installation
     Services pursuant to an Expansion shall be invoiced upon delivery of such
     Products.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted
material has been filed separately with the Securities and Exchange Commission.

                                       24
<PAGE>

          (e)  Payment of Invoices.  Owner shall pay the invoiced amounts, less
               -------------------
any disputed amounts, within ten (10) days from the date of transmission of
Vendor's invoice.  Delinquent payments are subject to a late payment charge
after thirty (30) days at the rate of [*] per month, or portion thereof, of
the amount due (but not to exceed the maximum lawful rate).  Any disputed items
which are determined to be validly billed are due for payment based upon the
original invoice date.

          5.4  Reserved.

          5.5  No Payment in Event of Material Breach.  Subject to subsection
               --------------------------------------
24.5, the Owner shall have no obligation to make any payment for any Work with
respect to which the Vendor is in material breach of this Contract until and
unless such breach is cured or waived by the Owner in accordance with the terms
of this Contract.

          5.6  In Revenue Payments.  At any time during a period of delay the
               -------------------
Owner may, in its sole discretion, decide to place a System which is subject to
such delay into In Revenue Service.  Such placement into In Revenue Service
shall constitute Substantial Completion only for purposes of the payment
obligations above, but shall not in any way relieve the Vendor of any of its
obligations under this Contract, including without limitation achieving a
Guaranteed Substantial Completion Date nor shall such In Revenue Service trigger
the commencement of the Initial Period.

          5.7  Currency and Place of Payment.  Payments under this Contract
               -----------------------------
shall be made in U.S. Dollars and if such method of payment is acceptable to
Owner, Owner shall pay all amounts due Vendor hereunder using EFT.  EFT payments
by Vendor shall be made to the following account of Vendor or such other account
as is subsequently designated by Vendor in writing and, concurrent with the EFT
payment, Owner shall fax a copy of the remittal to Vendor's manager of cash
operations at:

          Bank Name:      [***]
          Account Name:   Ericsson Wireless Communications Inc.
          Acct. No.:      [***]
          ABA No.:        [***]
          Swift No.:      [***]

          SECTION 6.  AVAILABILITY OF IOS

          6.1  Availability of IOS.  The Vendor's CMS 11 BSC currently provides
               -------------------
the features defined in the CDG standard for IOS V2.1.  Vendor targets support
for IOS V3.1.1 specifications for its AXE 10 MSC and CMS 11 BSC no later than
October, 2000.  [***] In the event Owner deploys a System which necessitates
the IOS interface and either the MSC or the BSC and the BTS are supplied by
vendors other than Vendor, the pricing for Products shall be adjusted according
to Exhibit B.  Owner shall not be responsible for any additional Product costs
resulting from the implementation of the IOS interface.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted
material has been filed separately with the Securities and Exchange Commission.

                                       25
<PAGE>

          SECTION 7.  DATA

          7.1  Vendor is committed to developing products that comply to the
1xHDR standard which is currently being discussed in 3GPP2, or an equivalent
CDMA based technology which has gained market acceptance, is commercially
feasible to develop, is an open published standard (i.e., a standard which is
free of intellectual property rights or is subject to intellectual property
rights which can be licensed at a market acceptable rate), and has the same
effective data rate and network capacity of Qualcomm's HDR specifications.
Vendor shall develop and deliver to Owner this technology, and shall integrate
said technology into Owner's Systems, in a similar time frame and at a
competitive cost as other infrastructure vendors are providing their data
technology for commercial service.

          SECTION 8.  SERVICES

          8.1  Transportation.  The Vendor shall at the Vendor's sole cost and
               --------------
expense provide for the transportation and delivery to the Sites within the
U.S., of all the Products to be delivered pursuant to, and in accordance with,
each Purchase Order and the terms of this Contract.  In the event of any unusual
Site selections or requirements which require transportation arrangements out of
the ordinary course having regard to normal industry standards and practices
(such as non-standard crane requirements, helicopter transportation requirements
to a remote setting, etc.), Vendor shall arrange, subject to Owner's prior
approval, for such exceptional transportation requirements from local staging
facilities or warehouse locations to the unusual Site.  Vendor shall notify
Owner that it believes, in good faith, that exceptional transportation
arrangements are necessary under the circumstances, and Vendor will consult with
Owner on an approved course of action to complete delivery.  Owner shall be
responsible for all costs with respect to such exceptional transportation
requirements in excess of transportation costs applicable to a standard Site.

          8.2  Services.  The Vendor shall provide the Services ordered by Owner
               --------
in accordance with the provisions of the Exhibit hereto in respect of such
Services, including, without limitation, the following Services:  (i) RF Design
Services as stated in Exhibit D; (ii) construction management and site
construction services as stated in Exhibit E; (iii) architectural & engineering
services as stated in Exhibit E; (iv) spectrum clearing and microwave relocation
services as stated in Exhibit E; (v) Optimization Services as set forth in
Exhibit G; (vi) Installation and Integration services as set forth in Exhibit F;
and (vi) wireless support Services as stated in Exhibit H.

          8.3  No Interference.  The Vendor shall install all Equipment and
               ---------------
build each of the Systems so as to cause no unauthorized interference with or
obstruction to lands and thoroughfares or rights of way on or near which the
installation work may be performed.  The Vendor shall exercise every reasonable
safeguard to avoid damage to existing facilities, and if repairs or new
construction are required in order to replace facilities damaged by the Vendor
due to its carelessness, negligence or willful misconduct, such repairs or new
construction shall be at the Vendor's sole cost and expense.  Vendor understands
that many of the Sites may be co-located with other RF transmission facilities
and Vendor shall take all necessary precautions and safety measures

                                       26
<PAGE>

to ensure the safety of all of Vendor's and Subcontractors' personnel at such
Sites. The Owner shall use its reasonable best efforts to ensure that no other
third parties employed or engaged by the Owner hinder or delay the Vendor in the
performance of its installation obligations hereunder.

     Vendor represents and warrants that all Products furnished hereunder shall
comply, to the extent required, with the requirements of Part 24 of the "FCC
                                                                         ---
Rules" pertaining to personal communications services in effect upon delivery of
-----
such Product.  In addition, Vendor represents and warrants that a Product
furnished hereunder shall comply, to the extent required, with the requirements
of Subpart J of Part 15 of the FCC Rules in effect upon delivery of such
Product, including those sections concerning the labeling of such Product and
the suppression of radio frequency and electromagnetic radiation to specified
levels.  Vendor makes no undertaking with respect to harmful interference caused
by (i) unauthorized installation, repair, modification or change or Products not
furnished by Vendor; (ii) Products being subject to misuse, neglect, accident or
abuse by other than Vendor; (iii) Products being used in a manner not in
accordance with operating instructions or in a suitable installation environment
or operations of other equipment in the frequency ranges reserved for Owner
within the applicable licensed area.  Vendor assumes no responsibility under
this clause for items not specified or supplied by Vendor.  The foregoing
warranties are collectively referred to as the "Compliance Warranty".
                                                -------------------

     Vendor shall, when appropriate, have reasonable access to Owner's Premises
during normal business hours and at such other times as may be agreed upon by
the parties in order to enable Vendor to perform its obligations under this
Contract.  Vendor shall coordinate such access with Owner's designated
representative prior to visiting such premises.  Vendor agrees to instruct its
employees to comply with all site rules while on Owner's Premises.  The
employees and agents of Vendor shall, while on the Owner's Premises, comply with
all site rules and guidelines including but not limited to where required by
government regulations, submission of satisfactory clearance from U.S.
Department of Defense and other governmental authorities concerned.  Neither
party shall require waivers or releases of any personal rights from
representatives of the other in connection with visits to its premises, and no
such releases or waivers shall be pleaded by either party in any action or
proceeding.

     For purposes of this Section, all references to "Owner's Premises" and
                                                      ----------------
other similar references shall be deemed to refer to any location where a Site
is to be located, which may include land or buildings owned or leased by Owner.
To the extent that Owner does not own the premises, Vendor's obligations to
adhere to site rules and guidelines shall include, without limitation, those
rules and guidelines required by the owner, landlord or property manager having
care and control of such premises, which Owner has provided to Vendor in advance
of the commencement of the applicable Work hereunder.

          SECTION 9.  MANUALS, ENGINEERING DRAWINGS AND TRAINING

          9.1  Documentation.  The Vendor shall provide the Documentation in the
               -------------
amounts and formats listed in Exhibit P.  The Documentation shall be prepared in
accordance with the relevant Specifications.  Operating Manuals with up-to-date
(but not "as-built") drawings, specifications and design sheets shall be
available for the Training as set forth in subsection 9.4.

                                       27
<PAGE>

          9.2  Standards for Manuals.  All Operating Manuals and Maintenance and
               ---------------------
Instruction Manuals required to be provided by the Vendor pursuant to this
Contract shall be:

          (a)  detailed and comprehensive and prepared in conformance with the
Specifications and generally accepted national standards of professional care,
skill, diligence and competence applicable to telecommunications and operation
practices for facilities similar to the Systems;

          (b)  consistent with good quality industry operating practices for
operating personal communications service systems of similar size, type and
design;

          (c)  sufficient to enable the Owner through reasonably competent
personnel (taking into account the availability of skills in local labor
markets) to operate and maintain each System on a continuous basis; and

          (d)  prepared subject to the foregoing standards with the goal of
achieving operation of each System at the capacity, efficiency, reliability,
safety and maintainability levels contemplated by this Contract and required by
all Applicable Laws and Applicable Permits.

          9.3  Equipment and Data.  The Vendor shall furnish all drawings,
               ------------------
specifications, specific design data, preliminary arrangements and outline
drawings of the Equipment and all other information as required in accordance
with this Contract in sufficient detail to indicate that the Equipment and
fabricated materials to be supplied under this Contract comply with the
Specifications.

          9.4  Training.  As more fully described in Exhibit O, the Vendor shall
               --------
provide to the Owner a training program with respect to each System
(collectively, the "Training").  Promptly upon execution of this Contract, the
                    --------
Vendor shall establish a training coordinator, whose responsibility shall be to
work with the Owner to ensure that the Owner receives the Training.  Such
coordinator (or his or her replacement) shall continue in such assignment until
the receipt by the Owner of all of the Training required to be provided.

          9.5  Manuals and Training.  The Training and the Documentation
               --------------------
provided in connection herewith, including, without limitation, all
Documentation provided in CD-ROM format, and pursuant to subsections 9.2, 9.3
and 9.4 shall be updated in reasonable quantities at no additional cost to Owner
pursuant to and in accordance with all Product upgrades and/or modifications
applicable to any System and/or any part thereof.

          SECTION 10.  ACCEPTANCE PROCEDURES

          10.1  Acceptance Procedures.  Depending upon the specific Products and
                ---------------------
Services to be furnished by Vendor, and those tasks for which Owner shall assume
responsibility, the parties, directly or through third-party vendors or other
Subcontractors, as the case may be, shall carry out the following procedures.
Certain of the tests below will apply to purchases of Products and

                                       28
<PAGE>

Services which comprise a System, while certain other tests will apply to tests
for Product and Service purchases for Expansions.

          (a)  Factory Tests.  Owner may, at Owner's option and cost, be present
               -------------
at any factory testing conducted by Vendor.  Vendor shall give the Owner ten
(10) Business Days advance notice of any such factory testing relating to the
Products or Services furnished by Vendor hereunder.  Vendor shall cooperate with
Owner to facilitate Owner's observation of such tests.  Regardless of whether or
not Owner observes any factory testing, Vendor agrees to, within a reasonable
period of time in view of the nature and urgency of the request, upon written
request by Owner, provide Owner with copies of all documentation relating to
factory testing of the Product specified by Owner, including without limitation
copies of test procedures, test results and FCC compliance certifications.

          (b)  Site Preparation Substantial Completion.  Upon completion of all
               ---------------------------------------
Site Preparation with respect to each Site for which the Owner has issued a
Purchase Order directing the Vendor to proceed with Site Preparation activities,
the Vendor shall issue a Site Preparation Substantial Completion Certificate
("Site Preparation Substantial Completion Certificate") certifying that all Site
-----------------------------------------------------
Preparation specified in the Purchase Order is substantially complete.  Such
certificate shall be accompanied by a Punch List of all incomplete items which
items shall be completed by the Vendor prior to Final Acceptance.  Vendor shall
offer Construction Management, Architectural & Engineering, Site Civil
Construction and Antenna Installation and Testing as provided for in Exhibit E
and at pricing consistent with that set forth in Exhibit B.  In the event the
Owner performs Site Preparation with respect to a Site, the Owner shall issue
the Site Preparation Substantial Completion Certificate.

          (c)  Site Installation and Integration Completion Certificate.  Upon
               --------------------------------------------------------
completion of the installation of the BTS and other Products and the completion
of integration activities in accordance with Exhibit F, the Vendor shall issue a
Site Installation and Integration Substantial Completion Certificate certifying
that all installation and integration activities specified in the Purchase Order
are substantially complete.  Such certificate shall be accompanied by a Punch
List of all incomplete items which items shall be completed by the Vendor prior
to Final Acceptance.

          (d)  Certificate of Substantial Completion.  Upon completion of
               -------------------------------------
Optimization Services and all testing with respect to a System in accordance
with Exhibit G, the Vendor shall issue a Certificate of Substantial Completion,
which shall be in the form of a checklist listing all tests performed and the
results thereof, and shall be accompanied by a Punch List of outstanding items
(the "Certificate of Substantial Completion").  Upon its reasonable satisfaction
      -------------------------------------
that the Certificate of Substantial Completion is correct and complete, the
Owner shall promptly sign the Certificate of Substantial Completion.

          (e)  Beta Testing.  Upon written notice to the Vendor, the Owner shall
               ------------
be entitled, in its sole discretion to conduct Beta Testing, and in connection
therewith the Owner shall be entitled to add appropriate items to the Punch List
prior to Final Acceptance.

          (f)  Certificate of Final Acceptance.  Except as otherwise provided
               -------------------------------
for the Test Market, which is more particularly described in subsection 1A.9 and
Exhibit A-1, during the

                                     29
<PAGE>

[*] period following Substantial Completion (as extended as described below, the
"Initial Period"), the Vendor shall complete all outstanding Punch List items
 --------------
and the Owner and the Vendor shall monitor the System for outages and compliance
with the Specifications. For the Test Market, the Initial Period shall be
extended to [*] and shall run concurrently with the Test Period and the
Extension Period shall be replaced by the "Test Period Extension", each as
                                           ---------------------
more particularly defined in subsection 1A.9. In event that all Punch List items
have been completed during the Initial Period, all testing specified in Exhibit
G has been satisfactorily completed and there have been no Major Outages, then
at the end of the Initial Period the Vendor shall issue a Certificate of Final
Acceptance certifying the same. Upon its reasonable satisfaction that the
Certificate of Final Acceptance is correct and complete, the Owner shall sign
the Certificate of Final Acceptance. In the event that a Major Outage occurs
during the Initial Period, the Initial Period shall be extended (each, an
"Extension Period") as follows: (i) if a Major Outage occurs on or prior to [*]
 ----------------
after the commencement of the Initial Period, the Initial Period shall be
extended for an additional [*] (ii) if a Major Outage occurs after [*] but on or
prior to [*] after the commencement of the Initial Period, the Initial Period
shall be extended for an additional [*] and (iii) if a Major Outage occurs after
[*] but on or prior to [*] after the commencement of the Initial Period, the
Initial Period shall be extended for an additional [*]. In the event a Major
Outage occurs during any Extension Period, the Initial Period shall be further
extended by an additional period of [*]. Owner shall issue a Certificate of
Final Acceptance not later than the end of the Initial Period (as extended)
after receipt of notice of Vendor that it corrected the problem giving rise to
the Major Outage or Major Outages. Documentation not already delivered to the
Owner pursuant to the terms of this Contract shall be delivered to the Owner
within ten (10) Business Days of Final Acceptance. With respect to each System,
the Owner shall not be required to sign the Certificate of Final Acceptance
until all such documentation has been so delivered (and Final Acceptance shall
not be deemed to have occurred earlier than the date that is ten (10) Business
Days prior to the date of delivery of such documentation). In addition to, and
without limiting the requirements set forth in the preceding sentence, the
Operating Manuals and the Maintenance and Instruction Manuals shall be submitted
to the Owner in CD-ROM format (when available) in addition to hard-copy volume
format if so requested by the Owner.

          10.2  Costs and Expenses.  The costs and expenses of complying with
                ------------------
all acceptance procedures set forth above shall be borne by the Vendor, provided
                                                                        --------
that Owner remains responsible for completing those items identified as Owner's
----
responsibility in the Exhibits.

          SECTION 11.  CHANGE ORDERS AND SCHEDULING

          11.1  Change Orders.  The Owner has the right to request expansions,
                -------------
other revisions and/or modifications to any Purchase Order or to the Work

("Changes"), including but not limited to the Specifications, the manner of
 ---------
performance of the Work or the timing of the completion of the Work.  All
Changes shall be subject to the prior written consent of the Vendor.  All
Changes shall be documented in a written order ("Change Order") which shall be
                                                 ------------
executed by the Owner and the Vendor and shall contain any adjustments to
pricing, Milestone or other aspect of the Work as mutually agreed by the
parties.  The Vendor shall promptly notify the Owner of any such requested
Changes which may materially affect the operation and/or maintenance of any
System or any part thereof.  In the event that the parties cannot agree on a
Change Order within fourteen (14) days of

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                      30
<PAGE>

submission of a Change Order by the Owner to the Vendor, the matter shall then
be referred to dispute resolution pursuant to Section 23. Nothing contained in
this subsection is intended to limit the Vendor's right, from time to time, to
make suggestions for modifications to the Work or the Specifications, provided
                                                                      --------
that in any such event the Owner, in its sole and absolute discretion pursuant
----
to the terms of this Contract may refuse to make any such modification or
otherwise agree to issue a Change Order incorporating any such Vendor
suggestion.

          11.2  Cancellation.  Owner may at any time cancel, in whole or in
                ------------
part, any Purchase Order or Change Order upon advance written notice to the
Vendor.  In the event of such cancellation, the Owner shall pay to the Vendor
cancellation charges in accordance with the Exhibits.

          SECTION 12.  DISCONTINUED PRODUCTS AND CONTINUING PRODUCT SUPPORT

          12.1  Notice of Discontinuation.  For a period of [*] for the AXE
                -------------------------
switch and [*] for all other Products furnished hereunder after the Effective
Date, but in no event less than [*] after the date of shipment, the Vendor
agrees to provide the Owner, or its Affiliates as the case may be, not less than
one (1) year notice before the Vendor discontinues a Product ("Discontinued
                                                               ------------
Products") furnished under this Contract.  With respect to Products manufactured
--------
by a third party vendor, the notice period may vary.  Where the Vendor offers a
product for sale that is equivalent in Form, Fit and Function in accordance with
and pursuant to the Specifications, the notification period may vary but in no
event shall be less than sixty (60) days.  In the event of the foregoing, the
Vendor shall continue to furnish Products fully compatible with the relevant
System Elements within the System at such time during the appropriate [*] and
[*] periods referenced above; provided that nothing herein shall bar the Vendor
                              -------- ----
from discontinuing individual items of Products as provided in and pursuant to
this subsection.  In the event that Vendor discontinues a Product, Vendor will
meet with Owner and use reasonable, good faith efforts to develop a mutually
acceptable transition plan that takes into account the Owner's existing
investment in the item scheduled for discontinuance.

     In addition to repairs provided for under any applicable Warranty, Vendor
shall offer repair Services and repair parts in accordance with Vendor's repair
and repair parts practices and terms and conditions then in effect, for Vendor-
manufactured Equipment furnished pursuant to this Contract.  Such repair
Services and repair parts shall be available while Vendor is manufacturing or
stocking such Products or repair parts, but in no event less than [*] for the
AXE switch and [*] for all other Products after such Product's discontinued
availability effective date.  Vendor may use either the same or functionally
equivalent products or parts which are new, remanufactured, reconditioned or
refurbished in the furnishing of repairs or replacements under this Contract.

     If during the agreed-to support period following the issuance of notice of
discontinuance, Vendor fails to provide repair parts and or repair Services and
a functionally equivalent replacement has not been designated, Vendor shall so
advise Owner, to allow Owner to plan appropriately, and if Vendor is unable to
identify another source of supply for such repair parts or services, Vendor
shall, in addition to any other right or remedy available to Owner at law or in

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       31
<PAGE>

equity, provide Owner, at no additional charge to Owner, upon request, with non-
exclusive licenses for Product manufacturing to the extent Vendor can grant such
licenses, so that Owner will have sufficient information, ability and rights to
have such Discontinued Products manufactured, or obtain such repair Service or
repair parts from other sources.  Such license shall include appropriate non-
disclosure and confidentiality covenants.

          12.2  Discontinuation During Warranty Period.  If Vendor discontinues
                --------------------------------------
the availability of a Product during that Product's Warranty Period and Owner is
required to purchase a replacement Product to replace the Discontinued Product
in order to maintain the same functionality of the Discontinued Product in a
System, Vendor agrees to grant Owner an additional [*] discount to be applied
against the net price of all Products required to be purchased by Owner as
replacements for such Discontinued Product, which additional discount shall be
applied after the determination of the lowest price available to Owner pursuant
to this Contract.

          SECTION 13.  SOFTWARE; CONFIDENTIAL INFORMATION

          13.1  RTU License.  Upon delivery of the Software, but subject to
                -----------
payment of the license fees specified in Exhibit B, the Owner is hereby granted
a personal, non-exclusive, fully paid-up, multi-site (capability to move
Software from site to site on prior notice to Vendor) right to use license for
the Software ("RTU License"), to operate the specific Equipment, processor or
               -----------
product line for which the licenses to use the Software are initially granted,
or temporarily on any comparable replacement if any such Equipment, processor or
product line becomes inoperative.  Owner shall use such Software only for its
own internal business operation.  The RTU License grants Owner no right to, and
Owner will not, sublicense such Software or modify, decompile, or disassemble
Software furnished as object code to generate corresponding source code provided
in each of the Systems.  Except as provided below, no license is granted to
Owner to use the Software outside of the United States.

     In the event that Owner wishes to use the Software on associated equipment
outside of the United States or to transfer Software to an affiliate or third
party transferee located outside the United States, Vendor shall not
unreasonably withhold its consent to such use or transfer, provided that Vendor
                                                           -------- ----
or the transferee, as the case may be, enters into an appropriate license
agreement with an affiliate of Vendor carrying on business in the territory in
which the Software is to be located, on terms substantially similar to the RTU
License terms set forth herein, provided, however, that Owner acknowledges and
agrees that support and maintenance obligations set forth herein are only
applicable for Software resident on Equipment located within the United States.
Support and maintenance Services offered by Vendor's affiliates differs in
various different territories, and will be subject to the local practices
maintained in such territory.

          13.2  Owner's Obligations.  The Owner agrees that the Software,
                -------------------
whether or not modified, and all copies thereof made by Owner, shall be treated
as proprietary to the Vendor, its Subcontractors or its suppliers, as
appropriate and the Owner shall:

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       32
<PAGE>

          (a)  Utilize the Software solely in conjunction with a System;

provided that the Vendor acknowledges that the Software shall be integrated
-------- ----
across interfaces with systems, equipment and software provided by other
suppliers and customers;

          (b)  Ensure that all copies of the Software shall, upon any
reproduction by the Owner authorized by the Vendor and whether or not in the
same form or format as such Software, contain the same proprietary,
confidentiality and copyright notices or legends which appear on the Software
provided pursuant hereto; and

          (c)  Hold secret and not disclose the Software to any person, except
to (i) such of its employees, contractors, agents or affiliates that are
involved in the operation or management of a System and need to have access
thereto to fulfill their duties in such capacity, or (ii) other Persons who need
to use such Software to permit integration of a System with systems and software
of other suppliers and customers; provided that such persons agree, or are
                                  -------- ----
otherwise obligated, to hold secret and not disclose the Software to the same
extent as if they were subject to this Contract, and provided further that if
any such Person is a competitor of Vendor involved in the manufacture of
communications equipment, software or related services, Vendor must approve such
use on a case-by-case basis on commercially reasonable terms and such use shall
be subject to an appropriate non-disclosure agreement.

          (d)  When and if the Owner determines that it no longer needs the
Software or if the Owner's license is canceled or terminated pursuant to the
terms of this Contract, return all copies of such Software to the Vendor or
follow reasonable written disposition instructions provided by the Vendor.  If
the Vendor authorizes disposition by erasure or destruction, the Owner shall
remove from the medium on which Software resides all electronic evidence of the
Software, both original and derived, in such manner that prevents subsequent
recovery of such original or derived Software.

          (e)  Owner shall not copy Software embodied in firmware and unless
otherwise specifically provided in this Contract, Owner is not granted any right
to modify Software furnished by Vendor under this Contract.

          13.3  Backwards Compatibility.  The Vendor represents and warrants
                -----------------------
(the "Software Backwards Compatibility Warranty") that each Software Maintenance
      -----------------------------------------
Release, Software Upgrade and Software Enhancement will be Backwards Compatible.
[***]  Notwithstanding the foregoing, the Software Backwards Compatibility
Warranty does not apply to Products developed AXE in accordance with standards
not yet finalized as of the date hereof.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       33
<PAGE>

          13.4  Transfer and Relocation.  (a)  In the event the Owner or any
                -----------------------
successor to the Owner's title in the Products:  (i) elects to transfer a
Product to a third party, and where such Product shall remain in place and used
for substantially the same purpose as used by the Owner and where such third
party resides in the United States and is not a direct competitor of the Vendor
involved in the manufacture of communications equipment, software or related
services; or (ii) elects to transfer Products to an affiliate, the Owner may
transfer its RTU License for the Software furnished under this Contract for use
with such Product, without the payment of any additional Software right-to-use
fees by the transferee provided that Annual Maintenance Fees shall continue to
                       -------- ----
be calculated on the same basis.  For example, if the RTU License for the
Software contains usage or per subscriber limits, or the processor to be used by
transferee requires additional memory or hard disk space additional payments or
purchases may be required.  The following conditions shall apply to transfers
and relocations pursuant to this subsection 13.4:

          (A)  The right to use such Software may be transferred only together
               with the Products with which the Owner has a right to use such
               Software, and such right to use the Software shall continue to be
               limited to use with such Products;

          (B)  Before any such Software is transferred, the Owner shall notify
               the Vendor of such transfer and the transferee shall have agreed
               in writing (a copy of which shall be provided to the Vendor) to
               keep the Software in confidence and to corresponding conditions
               respecting possession and use of Software as those imposed on the
               Owner in this Contract; and

          (C)  The transferee shall have the same right to Software warranty and
               Software maintenance for such Software as the transferor,
               provided the transferee continues to pay the fees, including
               recurring fees, if any, associated with such Software warranty or
               maintenance pursuant to this Contract.

          (b)  Except as otherwise provided in this Contract, the Owner or any
successor to the Owner's title in the Products shall have no right to transfer
Software furnished by the Vendor under this Contract without the consent of the
Vendor, which consent shall not be unreasonably withheld.  If the Owner or such
successor elects to transfer a Product purchased under this Contract for which
it does not under this Contract have the right to transfer related Software, the
Vendor agrees that upon written request of the transferee of such Product, or of
the Owner or such successor, the Vendor shall not without reasonable cause fail
to grant to the transferee a license to use such Software with the Products,
whether to be located within the United States or elsewhere, upon payment of a
relicensing fee to the Vendor on commercially reasonable terms acceptable to
Vendor.

          13.5  Termination and Survival.  The rights and obligations of the
                ------------------------
Owner under the RTU License shall survive the termination of this Contract,
regardless of the cause of termination provided Owner has met its material
obligations hereunder and has rendered all payments in accordance with this
Contract.  In the event that Owner persistently and materially breaches its
confidentiality obligations hereunder with respect to the Software,
notwithstanding the fact that Vendor will have provided Owner with prior written
notice describing the alleged material breaches

                                       34
<PAGE>

and will have given Owner a reasonable time, and in no event less than thirty
(30) days, to cure any such breaches, Vendor may terminate Owner's RTU License.
In the event that Owner fails to pay the Annual Release Maintenance Fees (other
than with respect to any periods for which no payment for Annual Release
Maintenance Fees are due pursuant to this Contract), Vendor may terminate
Owner's right to use the Software to which such fees apply. In no event other
than as set forth in this subsection 13.5 may Vendor terminate Owner's right to
use the Software. Notwithstanding any other provision of this Contract, if there
is a dispute, pending final resolution of such dispute, all of Owner's rights
under this Contract shall continue in full force and effect, and Vendor will not
terminate the RTU License, and so long as Owner continues to pay Vendor
applicable Annual Maintenance Release Fees, Vendor will not terminate, suspend,
interrupt or delay maintenance and support of the Software.

          13.6  Access to Source Codes.  The Vendor represents and warrants that
                ----------------------
as of the date hereof, Vendor has not established a Source Code escrow for any
of its existing customers.  In the event that Vendor establishes a Source Code
escrow in the future which applies to any of the Software furnished to Owner
hereunder, Vendor shall add Owner as a beneficiary of such Source Code escrow,
and Owner shall be entitled to receive a copy of the escrowed Source Code in the
event of the occurrence of any of the events set out below.  In addition to the
foregoing, the Vendor shall immediately deliver and hereby grants the Owner a
right to access the Source Code and to modify the Software (the "RTM License")
                                                                 -----------
for the maintenance, enhancement and support of those Products purchased from
the Vendor and owned or operated by the Owner under the following circumstances,
provided that any such released Source Code shall be subject to the
-------- ----
confidentiality provisions set forth in this Contract:

               (i)  if the Vendor becomes insolvent, makes a general assignment
     for the benefit of creditors, files a voluntary petition in bankruptcy or
     an involuntary petition in bankruptcy is filed against the Vendor which is
     not dismissed within sixty (60) days, or suffers or permits the appointment
     of a receiver for its business, or its assets become subject to any
     proceeding under a bankruptcy or insolvency law, domestic or foreign, or
     has liquidated its business, or the Vendor, or a business unit of the
     Vendor that is responsible for maintenance of the Software, ceases doing
     business without providing for a successor, and the Owner has reasonable
     cause to believe that any such event shall cause the Vendor to be unable to
     meet its Warranty service or support requirements hereunder; or

               (ii) if the Vendor ceases to maintain or support a previously
     supported version of the Software and Owner cannot obtain, with Vendor's
     assistance (for example, by providing a third party with Source Code or by
     any other appropriate method) the same support services the Vendor is
     required to provide under this Contract from another entity (either working
     with or independently from Vendor) at a price that is equal to or less than
     the prices for such support as provided herein, or there is a persistent
     and material failure by Vendor to provide the Warranty service or support
     it is required to provide pursuant to the terms of this Contract.

          13.7  Ownership of Intellectual Property.  The Vendor shall own all
                ----------------------------------
forms of intellectual property rights (including, but not limited to, patent,
trade secret, copyright and mask rights) pertaining to the Software, and shall
have the right to file for or otherwise secure and protect

                                       35
<PAGE>

such rights.  The foregoing notwithstanding, the parties understand and agree
that from time to time the Owner may devise, develop or otherwise create ideas
or other concepts for services or new products which are patentable or otherwise
capable of receiving protection from duplication.  In such event, the Owner
shall have the right to apply for a patent in accordance with applicable law,
provided, however, that notwithstanding this subsection, the Vendor does not
--------  -------
hereby relinquish or release any of its intellectual property rights.

          SECTION 14.  SOFTWARE AND EQUIPMENT CHANGES

          14.1  Software.
                --------

          14.1.1  Software Upgrades, Software Maintenance Releases, Software
                  ----------------------------------------------------------
Enhancements and Combined Releases.  During the Contract Term, upon payment of
----------------------------------
the RTU License fees, and in accordance with Exhibit B, Owner shall receive all
base Software releases and all Software Maintenance Releases, Software Upgrades,
Software Enhancements and Software Combined Releases applicable to Software for
Products for which the Owner has obtained a RTU License at such times as they
become generally available to the Vendor's customers.  Owner shall also be
entitled to receive Optional Software Features according to Exhibit B.  Owner
may elect to purchase such features on a per feature basis, or purchase annual
buy-out rights on a per market basis, permitting Owner to select those features
it wishes to deploy in the relevant market.

          14.1.2  Notice.  The Vendor shall give the Owner, or cause the Owner
                  ------
to be given not less than ninety (90) days prior written notice of the
introduction of any Software Enhancement release or any Software Combined
Release or any optional Software release.  In addition, in each February and
August of each year during the term of this Contract, the Vendor shall provide,
or cause to be provided, to the Owner a forecast of future Software Enhancement
releases, Software Upgrades, or Software Combined Releases or any optional
Software release, as the case may be, then currently being developed by or on
behalf of the Vendor.

          14.1.3  Installation, Testing and Maintenance.  The installation and
                  -------------------------------------
testing of the Software by the Vendor and the acceptance thereof by the Owner
shall be performed in accordance with the criteria set forth in Exhibit G.

          14.1.4  Software Fixes.  In the event that any Software Maintenance
                  --------------
Release, Software Upgrade, Software Enhancement or Software Combined Release
supplied by the Vendor during the term of this Contract has the effect of
preventing any System or any part thereof from satisfying, or performing in
accordance with the Specifications or the Exhibits or otherwise adversely
affects the functionality or features of any System or any part thereof, then
the Vendor shall promptly retrofit or take such other corrective action as may
be necessary to ensure that any System or any such affected part, as modified to
include each such Software Maintenance Release, Software Upgrade, Software
Enhancement or Software Combined Release, shall satisfy, and perform in
accordance with, the Specifications and the Exhibits and restore all pre-
existing functionality and features as well as provide any new features and
functionality provided by any of the foregoing modifications, in each case
without any charge to the Owner (other than payment of the applicable fees
pursuant to the terms of this Contract).  Notwithstanding anything contained

                                       36
<PAGE>

herein in this subsection to the contrary, Owner shall be responsible for the
cost of any additional Equipment required to accommodate additional capacity,
memory or processing requirements necessitated by any new Software feature or
Optional Software Feature which Owner elects to use (provided such use by Owner
is optional without losing the benefit of the Software Maintenance Release or
Software Upgrade) which are contained in any such Software Upgrade, Software
Enhancement or Software Combined Release; provided, however, that Owner shall
                                          --------  -------
not be required to pay for any additional Equipment required to accommodate
additional capacity, memory or processing requirements necessitated by
implementation of a required Software Maintenance Release, whether or not such
Software Maintenance Release is issued as a stand-alone release, or is contained
within a Software Upgrade, Software Enhancement or Software Combined Release.

          14.2  Equipment.
                ---------

               14.2.1 Equipment Upgrades. (a) Equipment Upgrades will be
                      ------------------
provided to the Owner by the Vendor at no charge to the Owner as provided in
subsection 14.2.1(b) below. Equipment Enhancements must be provided to the Owner
by the Vendor, if requested by the Owner, and the Owner is obligated to make
payment therefor in an amount that is specified on the B Exhibits. If the Vendor
at any time issues an Equipment Upgrade which is combined with any Equipment
Enhancement (collectively, the "Equipment Combined Release") to such Equipment,
                                --------------------------
the Equipment Combined Release will be provided at no charge to the Owner unless
and until the Owner uses any of the Equipment Enhancements included within the
Equipment Combined Release, provided such use by Owner of such Equipment is
optional without losing the benefit of the Equipment Upgrade.

          (b)  (i)  After a Product has been shipped to the Owner, if the
     Vendor issues an Equipment Upgrade or Equipment Enhancement, or where a
     modification to correct an error in field documentation is to be
     introduced, the Vendor will promptly notify the Owner of such change
     through the Vendor's design change management system or another Vendor
     notification procedure. Each change notification, whether or not it bears a
     restrictive legend, will be subject to the confidentiality obligations
     provided in subsection 26.18, except that such information may be
     reproduced by the Owner for the Owner's use as required within the System.
     If the Vendor has engineered, furnished, and installed a Product which is
     subject to an Equipment Upgrade, the Vendor will implement such change, at
     its sole cost and expense, if it is announced within [*] for the AXE switch
     and [*] for all other Products from the date of shipment of that Product,
     and subject to the reasonable review and acceptance of the Owner at such
     times as the Owner reasonably determines that it needs to review such
     Vendor decision, by either (A) modifying the Product at the Owner's site;
     (B) modifying the Product which the Owner has returned to the Vendor in
     accordance with the Vendor's reasonable instructions pursuant to and in
     accordance with the terms of this Contract; or (C) replacing the Product
     requiring the change with a replacement Product for which such change has
     already been implemented. If the Vendor has not engineered the original
     Product application and accordingly office records are not available to the
     Vendor, the Vendor will provide the generic change information and
     associated parts for the Owner's use in implementing such change.

                                       37
[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

               (ii)  In any of the instances described in clause (i) above, if
     the Vendor and the Owner agree that a Product or part thereof subject to
     such change is readily returnable, without incurring any significant time
     or expense, the Owner, at its expense, will remove and return such Product
     or part to the Vendor's designated facility within the United States and
     the Vendor, at its sole expense, will implement such change (or replace it
     with a Product or part for which such change has already been implemented)
     at its facility and return such changed (or replacement) Product or part at
     its sole cost and expense to the Owner's designated location within the
     United States.  Any such reinstallation of Products which were readily
     returnable will be performed by the Owner at its sole expense, provided
     such reinstallation can be done by Owner without incurring any significant
     time or expense.  In all other circumstances, Vendor shall provide such
     removal, repair and reinstallation Services at its sole cost and expense.

               (iii)  If the Owner does not make or permit the Vendor to make an
     Equipment Upgrade as stated above within the appropriate [*] or [*] period
     from the date of change notification or such other period as the Vendor may
     agree, subsequent changes, repairs or replacements affected by the failure
     to make such change may, at the Vendor's option, be invoiced to the Owner
     whether or not such subsequent change, repair or replacement is covered
     under the warranty provided in this Contract for such Product.  If
     requested by the Owner, Equipment Upgrades announced more than the
     appropriate [*] or [*] period from the date of shipment will be implemented
     at the Owner's expense.

               (iv)  If the Vendor issues an Equipment Enhancement after a
     Product has been shipped to the Owner, the Vendor will promptly notify the
     Owner of such change if it is being offered to any of the Vendor's
     customers.  Except as otherwise set forth above in subsection 14.2(b), when
     an Equipment Enhancement is requested by the Owner, the pricing set for
     such Equipment Enhancements will be at the Vendor's standard charges
     subject to the applicable discounts set forth in the B Exhibits.

               (v)  All change notifications for Equipment Upgrades and
     Equipment Enhancements provided by the Vendor to the Owner pursuant to the
     terms of this Contract must contain the following information:  (A) a
     detailed description of the change; (B) the reason for the change; (C) the
     effective date of the change; and (D) the implementation schedule for such
     change, if appropriate.

          14.2.2  Notice.  The Vendor shall give, or shall cause to be given to,
                  ------
the Owner not less than ninety (90) days prior written notice of the
introduction of any Equipment Enhancement or any Equipment Combined Release. In
addition, in each February and August of each year during the Term of this
Contract, the Vendor shall provide the Owner with a forecast of future Equipment
Enhancements to the Equipment or Equipment Combined Releases then currently
being developed by or on behalf of the Vendor.

          14.2.3  Installation, Testing and Acceptance.  The Installation and
                  ------------------------------------
testing of the Equipment by the Vendor and the acceptance thereof by the Owner
shall be performed in accordance with the Exhibits and pursuant to the
Milestones contained in the Exhibits.

                                       38
[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

          14.2.4  Equipment Fixes.  In the event that any Equipment Upgrade or
                  ---------------
Equipment Enhancement, directly or indirectly, supplied by the Vendor during the
appropriate [*] or [*] period following the Effective Date or during [*] period
following the date of shipment of such Equipment Upgrade or Equipment
Enhancement, has the effect of preventing any System or any part thereof from
satisfying, or performing in accordance with, the Specifications or otherwise
adversely affects the functionality, interoperability or features of any System,
or any part thereof then the Vendor shall without any charge to the Owner
promptly retrofit or take such other corrective action as may be necessary to
assure that any System or any such affected part, as modified to include each
such Equipment Upgrade and Equipment Enhancement, shall satisfy, and perform in
accordance with, the Specifications and restore all pre-existing functionality
and features as well as provide any features and functionality provided by any
of the foregoing modifications.

          14.2.5  Equipment Backwards Compatibility Warranty.  The Vendor
                  ------------------------------------------
represents and warrants (the "Equipment Backwards Compatibility Warranty") that
                              ------------------------------------------
each New Equipment Release will be Backwards Compatible, provided that it is
                                                         -------- ----
implemented within the specified time provided with each New Equipment Release.
[***] Notwithstanding the foregoing, the Equipment Backwards Compatibility
Warranty does not apply to Products developed beyond AXE standards not yet
finalized as of the date hereof.

          14.3  Notice of Developments.
                ----------------------

               14.3.1 Vendor Developments. The Vendor shall provide the Owner,
or cause to be provided to the Owner, through the Owner's chief executive
officer, with reasonable written notice of any Product developments, innovations
and/or technological advances (collectively "Vendor Developments") relevant to
                                             -------------------
the System simultaneous to giving such notice to any other customer or otherwise
making any such Vendor Development public; provided that the Vendor shall not be
                                           -------- ----
obligated to provide the Owner such notice before any other customer if doing so
would breach any contractual obligation to any other customer, provided further
that any such notice need not include any information originated by another
customer of Vendor which is proprietary to such other customer of Vendor.  For
the purposes of this subsection the term "Vendor" includes the Vendor and its
affiliates and subsidiaries.

               14.3.2 Participation in Testing. The Owner has the right, but not
                      ------------------------
the obligation, to witness and/or participate in any initial testing; provided
                                                                      --------
that any such initial testing of Vendor Developments shall be subject to:  (i)
----
scheduling as reasonably determined by the Vendor; (ii) the qualification that
the Owner's System meets the technical requirements for the testing of such
Vendor Development as reasonably determined by the Vendor (or otherwise that the
Owner is willing to update such System to meet such requirements); (iii) the
Owner's acknowledgment that it shall be able to provide the resources necessary
to implement the initial testing for such Vendor Development; and (iv) the Owner
and the Vendor executing a verification office testing agreement that identifies
the scope, terms, pricing, responsibilities and schedule related to the initial
testing of

                                       39
[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

such Vendor Development.  The Vendor shall provide the Owner at least thirty
(30) days prior written notice of its intent to test any such Vendor Development
and upon the Owner's written request the Vendor shall allow the Owner to
participate in such testing upon terms and in a testing environment reasonably
acceptable to the parties at such time.  Such rights shall not apply to a Vendor
Development originated by another customer of Vendor which includes information
which is proprietary to such other customer.

               14.3.3 Quarterly Notices. Vendor shall make reasonable efforts to
                      -----------------
collect and distribute on a quarterly basis a list of new Software bugs,
problems, fixes, etc., provided that Vendor shall not be required to distribute
                       -------- ----
confidential information of any other customer.

          SECTION 15.  INTELLECTUAL PROPERTY

          15.1  Intellectual Property.  Neither Owner nor Vendor shall publish
                ---------------------
or use any advertising, sales promotion, press releases or publicity matters
relating to this Contract without the prior written approval of the other, in
accordance with subsection 26.13.

          15.2  Infringement.  (a)  The Vendor agrees that it shall defend,
                ------------
indemnify and hold harmless, at its own expense, all suits and claims against
the Owner for infringement or violation of any patent, trademark, copyright,
trade secret or other intellectual property rights of any third party
enforceable in the United States or in any other territory where Vendor has
approved the deployment or use of Products under this Contract (collectively,
"Intellectual Property Rights"), covering, or alleged to cover, the Products or
-----------------------------
any component thereof.  The Vendor agrees that it shall pay all sums, including
without limitation, reasonable attorneys' fees and other costs incurred at
Vendor's written request or authorization, which, in defense of, by final
judgment or decree, or in settlement of any suit or claim to which the Vendor
agrees, may be assessed against, or incurred by, the Owner on account of such
infringement or violation, provided that the Owner shall cooperate in all
                           -------- ----
reasonable respects with the Vendor and its attorneys in the investigation,
trial and defense of such lawsuit or action and any appeal arising therefrom;
provided, however, that the Owner may, at its own cost, participate in the
investigation, trial and defense of such lawsuit or action and any appeal
arising therefrom.  The parties shall cooperate with each other in any
notifications to insurers.  If a claim for Losses (a "Claim") is to be made by a
                                                      -----
party entitled to indemnification hereunder against the Vendor, the party
claiming such indemnification shall give written notice (a "Claim Notice") to
                                                            ------------
the Vendor as soon as practicable after the party entitled to indemnification
becomes aware of any fact, condition or event which may give rise to Losses for
which indemnification may be sought under this Agreement, provided, however, no
delay on the part of the Owner in notifying the Vendor shall relieve the Vendor
from any obligation hereunder unless (and then solely to the extent) the Vendor
is thereby materially prejudiced.  If any lawsuit or enforcement action is filed
against any party entitled to the benefit of indemnity hereunder, written notice
thereof shall be given to the Vendor as promptly as practicable (and in any
event within twenty (20) calendar days after the service of the citation or
summons).  The Vendor shall be entitled, if it so elects to:  (i) defend such
lawsuit or action; (ii) employ and engage attorneys of its own choice to handle
and defend the same, at the Vendor's cost, risk and expense; and (iii)
compromise or settle such Claim, which compromise or settlement shall be made
only with the written consent of the Owner (which may not be unreasonably
withheld),

                                       40
<PAGE>

unless such compromise or settlement includes an unconditional release of any
claims against the Owner in which event such written consent of the Owner shall
not be required. If the Vendor fails to assume the defense of such Claim within
twenty (20) calendar days after receipt of the Claim Notice, the Owner against
which such Claim has been asserted will (upon delivering notice to such effect
to the Vendor) have the right to undertake, at the Vendor's cost and expense,
the defense, compromise or settlement of such Claim on behalf of and for the
account and risk of the Vendor. In the event the Owner assumes the defense of
the Claim, the Owner will keep the Vendor reasonably informed of the progress of
any such defense, compromise or settlement. The Vendor shall be liable for any
settlement of any action effected pursuant to and in accordance with this
Agreement and for any final judgment (subject to any right of appeal), and the
Vendor agrees to indemnify and hold harmless the Owner from and against any
Losses by reason of such settlement or judgment.

          (b)  The Vendor's obligation under this subsection shall not extend to
alleged infringements or violations that arise because the Products provided by
the Vendor are used in combination with other products furnished by third
parties and where any such combination was not installed, recommended or
approved by the Vendor.

          15.3  Vendor's Obligation to Cure.  If in any such suit so defended,
                ---------------------------
all or any part of the Products or any component thereof is held to constitute
an infringement or violation of Intellectual Property Rights of others and its
use is enjoined, or if in respect of any claim of infringement or violation the
Vendor deems it advisable to do so, the Vendor shall at its sole cost, expense
and option take one or more of the following actions:  (i) procure the right to
continue the use of the same without interruption for the Owner; (ii) replace
the same with non-infringing Products that meets the Specifications in
accordance with the terms of this Contract; or (iii) modify said Products, any
System or any component thereof so as to be non-infringing, provided that the
                                                            -------- ----
Products, any System or any component thereof as modified meets all of the
Specifications.  In the event that the Vendor is not able to cure the
infringement pursuant to clause (i), (ii) or (iii) in the immediately preceding
sentence, in addition to the other rights and remedies provided in this Section
15, the Vendor shall refund to the Owner the full purchase price paid by the
Owner for such infringing Product or feature, and the Owner shall be under no
obligation to return to the Vendor such infringing Product or feature regardless
of whether, or by what means, the Owner, on its own or otherwise, subsequently
cures such infringement, unless Owner is directed to do so by court order.

          15.4  Vendor's Obligations.  The Vendor's obligations under this
                --------------------
Section 15 shall not apply to any infringement or violation of Intellectual
Property Rights caused by unauthorized modification of the Products, any System
or any component thereof by the Owner, or arises from adherence to instructions
to apply Owner's trademark, trade name or other company identification to a
Product, or any infringement caused solely by the Owner's use and maintenance of
the Products other than in accordance with the Specifications, except as
authorized or permitted by the Vendor.  The Owner shall indemnify the Vendor
against all liabilities and costs, including reasonable attorneys' fees, for
defense and settlement of any and all claims against the Vendor for
infringements or violations based upon this subsection.

                                       41
<PAGE>

          15.5  Liability of Vendor.  The Liability of Vendor with respect to
                -------------------
any and all claims, actions, proceedings or suits by third parties alleging
infringement of patents, trademarks, or copyrights or violation of trade secrets
or proprietary rights because of, or in connection with, any items furnished
pursuant to this Contract shall be limited to the specific undertakings
contained in this Section 15.

          SECTION 16.  DELAY

          16.1  Liquidated Damages.  The parties agree that damages for delay
                ------------------
are difficult to calculate accurately and not reasonably determinable at the
time of execution of this Contract, and, therefore, agree that liquidated
damages (the "Liquidated Damages") shall be paid for non-performance or late
              ------------------
performance of the Vendor's obligations to achieve a Guaranteed Substantial
Completion Date for reasons not otherwise excused by Force Majeure or Owner's
failure to satisfy its obligations set out in this Contact.  The parties agree
that Liquidated Damages are intended to compensate Owner for the delayed or late
performance by the Vendor and are not a penalty.

          16.2  Delay and Default.  In the event the Vendor fails to achieve
                -----------------
(other than as permitted by this Contract) the Substantial Completion of a
System on or before the Guaranteed Substantial Completion Date for such System
or during a ten day cure period following such date, the Vendor shall pay,
weekly in arrears, for the next [*] commencing on the eleventh day after the
Guaranteed Substantial Completion Date, Liquidated Damages to the Owner in an
amount equal to [*] (pro-rated on a daily basis for periods of time less than
one week) of the total amount of all Purchase Orders relating to the System with
respect to which the Vendor has so failed, based on the number of days elapsed
after a ten day cure period following the Guaranteed Substantial Completion
Date and before the achievement of Substantial Completion; provided that in the
                                                           -------- ----
event that Substantial Completion is not achieved prior to the expiration of
such [*] period, thereafter Vendor shall pay, weekly in arrears, additional
Liquidated Damages to the Owner in an amount equal to [*] (pro-rated on a daily
basis for periods of time less than one week) of the total amount of all
Purchase Orders relating to the System with respect to which the Vendor has so
failed, based on the number of days elapsed after the [*] plus ten (10) day
cure period following the Guaranteed Substantial Completion Date and before the
achievement of Substantial Completion; provided that in no event shall the
                                       -------- ----
amount of Liquidated Damages so paid in respect of a System exceed [*] of the
total amount of all Purchase Orders relating to the System with respect to which
the Vendor has so failed.

          16.3  System Capacity Guarantee.  Vendor guarantees (the "Capacity
                -------------------------                           --------
Guarantee") embedded sector Erlang capacity according to the following table.
---------

                                       42
[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

[***]

          16.4  Limitation.  The foregoing provisions concerning Liquidated
                ----------
Damages shall not be deemed to limit the amount payable by the Vendor to the
Owner for breach of contract, except for amounts payable on account of delay as
aforesaid, provided, however that the payment of Liquidated Damages shall be
Owner's sole remedy for the delay giving rise to the Vendor's obligation to pay
the Liquidated Damages.

          16.5  Early Completion Bonus.  With respect to a System, Vendor shall
                ----------------------
be entitled to an early completion bonus from the Owner in the event that
Substantial Completion with respect to such System occurs on or prior to the
date that is [*] prior to the Guaranteed Substantial Completion Date for such
System.  Such early completion bonus shall be equal to [*] (pro-rated on a daily
basis for periods of time less than one week) of the total amount of all
Purchase Orders relating to such System, based on the number of days that
Substantial Completion occurs prior the date that is [*] prior to the Guaranteed
Substantial Completion Date for such System.

          SECTION 17.  FORCE MAJEURE

          17.1  Excusable Delay.  (a)  If the performance of this Contract, or
                ---------------
of any obligation hereunder except for the obligations set forth in Section 5 is
prevented, restricted or interfered with by reason of fires, breakdown of plant,
labor disputes, embargoes, government ordinances or

                                       43
[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

requirements, civil or military authorities, acts of God or of the public enemy,
acts or omissions of carriers, inability to obtain necessary materials or
services from suppliers, or other causes beyond the reasonable control of the
party whose performance is affected ("Force Majeure"), then the party affected,
                                      ----- -------
upon giving prompt notice to the other party, shall be excused from such
performance on a day-for-day basis to the extent of such prevention,
restriction, or interference (and the other party shall likewise be excused from
performance of its obligations on a day-for-day basis to the extent such party's
obligations relate to the performance so prevented, restricted or interfered
with); provided that the party so affected shall use reasonable efforts to avoid
       -------- ----
or remove such cause of non-performance and both parties shall proceed to
perform their obligations with dispatch whenever such causes are removed or
cease.

          (b)  The party claiming the benefit of excusable delay hereunder
shall:  (i) promptly notify the other party of the circumstances creating the
failure or delay and provide a statement of the impact of such party failure or
delay; and (ii) use reasonable efforts to avoid or remove such causes of
nonperformance, excusable failure or delay.  If an event of Force Majeure
prevents the Vendor from performing its obligations under this Contract for a
period exceeding sixty (60) days, the Owner may, upon prior written notice to
the other party, terminate any affected Purchase Orders.

          (c)  In the event of a Force Majeure which the party claiming relief
for such event has used all best efforts to resolve in accordance with the terms
of this Contract, upon the written request of either party, the other party
shall in good faith negotiate modifications, to the extent reasonable and
necessary, in scheduling and performance criteria in order to reasonably address
the impact of such Force Majeure.

          (d)  In the event that a Purchase Order is terminated due to an event
of Force Majeure, the Minimum Purchase Commitment shall be reduced by an amount
equal to the terminated Purchase Order.

          SECTION 18.  WARRANTIES

          18.1  Equipment and Services Warranty.  Vendor warrants that, with
                -------------------------------
respect to each System, for a period of two (2) years from the date of
Substantial Completion, provided, however that if prior to Final Acceptance a
Major Outage occurs, the two (2) year period shall be extended by the number
of days elapsed between Substantial Completion and the date the Owner signs the
Certificate of Final Acceptance (as so determined, the "Warranty Period"), all
                                                        ---------------
Equipment and Services furnished under this Contract with respect to such System
will be free of Defects and Deficiencies and shall conform to the applicable
portions of the Specifications (the "Equipment and Services Warranty"),
                                     -------------------------------
provided, however, that with respect to those Services for which a warranty is
set forth in an Exhibit, the warranty contained in the Exhibit shall supersede
the general Services warranty contained in this Section 18.1.  With respect to
third-party manufactured Products which are not a part of a Core System, Vendor
shall furnish such Products only on a pass-through warranty basis; provided,
however, that Vendor shall identify such Products to Owner before acceptance of
any Purchase Order which includes any such Products.  The terms of the warranty
applicable to such Products shall be provided in an addendum to the Purchase
Order.  Except as noted in the B

                                       44
<PAGE>

Exhibits, all Products referenced in the B Exhibits qualify as Vendor-warranted
Products. The Vendor's obligations with respect to the Equipment and Services
Warranty shall be to attempt first to repair or replace at no additional cost,
any defective Equipment or correct any deficient Services. If, after using its
best efforts to repair or replace such Product and after consultation with and
with the consent of Owner, which consent shall not be unreasonably withheld,
Vendor determines that it is unable to repair, replace or otherwise correct such
defect, Vendor shall provide a credit or refund based on the original purchase
price, and installation charges if installed by Vendor. If, as a result of the
Defect and Deficiency, the Product fails to operate in accordance with the
Specifications which causes the System to fail to materially operate in
accordance with its Specifications, a refund shall be paid to the Owner on
account of the purchase price for the total System, less a pro-rata discount
calculated with regard to the period of time during the Warranty Period that
Owner operated the System in In Revenue Service. For purposes of calculating
such pro rata discount, the period of time the Owner would have been able to
operate the System within In Revenue Service shall be: (i) ten (10) years from
Substantial Completion for the AXE switch; and (ii) seven (7) years from
Substantial Completion for all other Products. In the event that Vendor pays a
refund hereunder, Owner shall return such Products to Vendor at Vendor's sole
cost and expense. The Warranty Period for all Equipment or Services repaired,
replaced or corrected under the Equipment and Services Warranty shall be the
longer of: (i) one (1) year from the date of delivery of the repaired or
replacement Equipment or from the completion of the corrected Services, as
applicable; or (ii) or the unexpired term of the Warranty Period. The Warranty
Period for Equipment purchased as spares shall be two (2) years from
installation of such Equipment.

     For those Products not readily returnable by Owner, or where Owner cannot
remove and reinstall the Products without incurring significant time and
expense, and where Vendor elects to repair or replace the Product, Vendor shall
repair or replace the Product at Owner's Site.  In the event Vendor does the
repair work at Owner's site, Vendor shall be responsible for replacement of
cable and wire Products, and for reasonable Site restoration.  If Vendor has
elected to repair or replace a defective Product, and the Product is readily
returnable by Owner without incurring significant work or expense, Owner is
responsible for removing and reinstalling the Products.  Products returned for
repair or replacement will be accepted by Vendor only in accordance with its
instructions and procedures for such returns.  The transportation expense
associated with returning such Product to Vendor shall be borne by Owner.
Vendor shall pay the cost of transportation of the repaired or replacing Product
to the return destination designated by Owner.  Defective or nonconforming
Products or parts which are replaced hereunder shall become Vendor's property.
Vendor may use either the same or functionally equivalent new, remanufactured,
reconditioned or refurbished Products or parts in the furnishing of repairs or
replacements under this Contract, provided that such Products satisfy the
                                  -------- ----
Specifications.

          18.2  Expansions Warranty.  Vendor warrants that, with respect to
                -------------------
Products and Services constituting Expansions (including Expansions to a System,
or Expansions or growth not part of a System, and all other purchased Products)
furnished under this Contract will be free of Defects and Deficiencies and shall
conform the applicable portions of the Specifications (the "Expansions
                                                            ----------
Warranty").  The warranty period with respect to such Products and Services
shall be two (2) years from the date of installation completion or completion
of Services, as the case may be (the "Expansions Warranty Period").  With
                                      --------------------------
respect to third-party manufactured Products which are not a part of a Core
System, Vendor shall furnish such Products only on a pass-through warranty

                                       45
<PAGE>

basis; provided, however, that Vendor shall identify such Products to Owner
before acceptance of any Purchase Order which includes any such Products.  The
terms of the warranty applicable to such Products shall be provided in an
addendum to the Purchase Order.  Except as noted in the B Exhibits, all Products
referenced in the B Exhibits qualify as Vendor-warranted Products.  The Vendor's
obligations with respect to the Expansions Warranty shall be to attempt first to
repair or replace at no additional cost, any defective Equipment or correct any
deficient Services.  If, after using its best efforts to repair or replace such
Product and after consultation with and with the consent of Owner, which consent
shall not be unreasonably withheld, Vendor determines that it is unable to
repair, replace or otherwise correct such defect, Vendor shall provide a credit
or refund based on the original purchase price, and installation charges if
installed by Vendor.  The warranty period for all Equipment or Services
repaired, replaced or corrected under the Expansions Warranty shall be the
longer of:  (i) one (1) year from the date of delivery of the repaired or
replacement Equipment or from the completion of the corrected Services, as
applicable; or (ii) the unexpired term of the Expansions Warranty Period.  The
Warranty Period for Equipment purchased as spares shall be two (2) years from
installation of such Equipment.

     For those Products not readily returnable by Owner, or where Owner cannot
remove and reinstall the Products without incurring significant time and
expense, and where Vendor elects to repair or replace the Product, Vendor shall
repair or replace the Product at Owner's Site.  In the event Vendor does the
repair work at Owner's site, Vendor shall be responsible for replacement of
cable and wire Products, and for reasonable Site restoration.  If Vendor has
elected to repair or replace a defective Product, and the Product is readily
returnable by Owner without incurring significant work or expense, Owner is
responsible for removing and reinstalling the Products.  Products returned for
repair or replacement will be accepted by Vendor only in accordance with its
instructions and procedures for such returns.  The transportation expense
associated with returning such Product to Vendor shall be borne by Owner.
Vendor shall pay the cost of transportation of the repaired or replacing Product
to the return destination designated by Owner.  Defective or nonconforming
Products or parts which are replaced hereunder shall become Vendor's property.
Vendor may use either the same or functionally equivalent new, remanufactured,
reconditioned or refurbished Products or parts in the furnishing of repairs or
replacements under this Contract, provided that such Products satisfy the
                                  -------- ----
Specifications.

          18.3  Software Warranty.  Vendor warrants that, with respect to each
                -----------------
System for the Warranty Period, all Software will be free of Defects and
Deficiencies and shall conform to the applicable portions of the Specifications
(the "Software Warranty").  The Vendor's obligations with respect to the
      -----------------
Software Warranty shall be to attempt first to repair or replace at no
additional cost, any defective Software.  If, after using its best efforts to
repair or replace such Software and after consultation with and with the consent
of Owner, which consent shall not be unreasonably withheld, Vendor determines
that it is unable to repair, replace or otherwise correct such defect, Vendor
shall provide a credit or refund based on the original purchase price, and
installation charges if installed by Vendor.  If, as a result of the Defect and
Deficiency, the Software fails to operate in accordance with the Specifications
which causes the System to fail to materially operate in accordance with its
Specifications, a refund shall be paid to Owner on account of the purchase price
for the total System, less a pro rata discount calculated with regard to the
period of time during the Warranty Period that Owner operated the System in In
Revenue Service.  For purposes of calculating such pro rata discount, the period
of time the Owner would have been able to operate the System In Revenue

                                       46
<PAGE>

Service shall be: (i) ten (10) years from Substantial Completion for the AXE
switch; and (ii) seven (7) years from Substantial Completion for all other
Products. In the event that Vendor pays a refund hereunder, Owner shall return
such Products to Vendor. The warranty period for all Software so corrected or
replaced under the Software Warranty shall be the longer of: (i) one (1) year
from the date of delivery of the repaired or replacement Software; or (ii) or
the unexpired term of the Warranty Period. Vendor shall be solely responsible
for all costs and expenses incurred by Owner or Vendor in connection with the
de-installation, removal and transportation of defective Software under the
Software Warranty and for the transportation and installation of repaired,
corrected or replacement Software, including without limitation any additional
or upgraded Equipment or processing capability necessary to run or operate such
repaired, corrected or replacement Software. The Warranty Period with respect to
Software Maintenance Releases, Software Upgrades, Software Enhancements and
Software Combined Releases shall be two (2) years from the successful
installation of such Software Maintenance Releases, Software Upgrades, Software
Combined Releases and Software Enhancements.

          18.4      Reserved.

          18.5      Reserved.

          18.6  Warranty Claim Procedures.  (a)  If the Owner claims a breach of
                -------------------------
any warranty, it shall notify the Vendor of the claimed breach within a
reasonable time after its determination that a breach has occurred.  The Owner
shall allow the Vendor to inspect the Equipment, Software, Services, or the
System, as the case may be, on-site in order to effect the necessary repairs.

          (b)  The Vendor shall respond to such warranty claims for warranty
Services in accordance with the procedures outlined in Exhibit N.

          18.7  Technical Assistance.  The Vendor shall maintain a technical
                --------------------
assistance center and shall have technical support available to the Owner in
accordance with the requirements set forth in Exhibit N.

          18.8  Scope of Warranties.  Unless otherwise stated herein, the
                -------------------
Warranties shall not apply to:

                18.8.1 or nonconformities to the extent resulting from the
following, if not consistent with applicable Specifications: unauthorized Owner
modifications, misuse, neglect, accident, abuse, improper wiring, repairing,
splicing, alteration, installation, storage or maintenance failure of Owner to
apply previously applicable Vendor modifications or corrections; or

                18.8.2 any Equipment, Services or Software damaged by accident
or disaster, including without limitation, fire, flood, wind, water, lightning
or power failure other than to the extent that any such Equipment, Services or
Software should in accordance with the Specifications be able to withstand any
such events; or

                                       47

<PAGE>

                18.8.3 non-integral items normally consumed in operation or
which has a normal life inherently shorter than the Warranty Periods (e.g.,
                                                                      ----
fuses, lamps, magnetic tape); or

                18.8.4  damages or defects resulting directly from third party
equipment, provided that this shall in no event limit the Vendor's obligations
           -------- ----
as to interoperability pursuant to the terms of this Contract; or

                18.8.5  Equipment which have had their serial numbers or months
and year of manufacture removed or obliterated by the Owner; or

                18.8.6  failures or deficiencies in BTS performance or System
optimization resulting solely from changed environmental conditions or
unauthorized changes to the System by Owner, or changes not consented to by
Owner including but not limited to the growth of trees and other foliage, the
erection of buildings, and interference from third party radio transmissions not
otherwise engineered for by the Vendor;

except when any such damage or defects are made, done or caused by the Vendor or
any of its Subcontractors, their respective agents and employees.

          18.9  Third Party Warranties.  If the Vendor purchases or subcontracts
                ----------------------
for the manufacture of any part of a System or the performance of any of the
Services to be provided hereunder from a third party, the warranties given to
the Vendor by such third party shall inure, to the extent assigned to the Owner
pursuant to this Section 18 or permitted by law, to the benefit of the Owner,
and the Owner shall have the right, at its sole discretion, to enforce such
warranties directly and/or through the Vendor.  The warranties of such third
parties shall be in addition to and shall not, unless otherwise expressly stated
herein, be in lieu of any warranties given by the Vendor under this Contract.

          18.10  Additional Sites.  In the event that under the remedy
                 ----------------
provisions of this Section 18 the Vendor is required to provide additional MSC
and/or BTSs requiring additional Sites, the Owner shall be responsible for all
Site Acquisition.

          18.11  EXCLUSIVE REMEDIES.  THE FOREGOING EQUIPMENT, SERVICES,
                 ------------------
SOFTWARE AND EXPANSIONS WARRANTIES AND REMEDIES ARE EXCLUSIVE FOR THE PURPOSES
OF ANY BREACH BY THE VENDOR OF ANY SUCH WARRANTY AND ARE IN LIEU OF ALL OTHER
EXPRESS AND IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

          SECTION 19.  INSURANCE

          19.1  Insurance.  The Vendor shall maintain insurance in accordance
                ---------
with the provisions set forth in Exhibit Q.

                                       48
<PAGE>

          SECTION 20.  INDEMNIFICATION AND LIMITATION OF LIABILITY

          20.1  Indemnity.  Vendor agrees to indemnify, defend and hold harmless
                ---------
Owner and its affiliates and their respective directors, officers, employees,
agents, successors and assigns, from Losses and threatened Losses arising from,
in connection with, or based on allegations of, any of the following:

          (a)  Vendor's failure to observe or perform any duties or obligations
               to Subcontractors or any third parties within the reasonable
               contemplation of this Contract;

          (b)  the death or bodily injury of any agent, employee, customer,
               business invitee or any other person caused by the tortious
               conduct (including without limitation negligence, willful
               misconduct or breach of warranty) or strict liability of Vendor,
               any Subcontractor or its or their respective employees,
               contractors, agents or representatives;

          (c)  the damage, loss or destruction of any real or tangible personal
               property caused by the tortious conduct (including without
               limitation negligence, willful misconduct or breach of warranty)
               or strict liability of Vendor, any Subcontractor or its or their
               respective employees, contractors, agents or representatives; or

          (d)  any claim, demand, charge, action, cause of action or other
               proceeding asserted against Owner but arising out of or resulting
               from an act or omission of Vendor, any Subcontractor or its or
               their respective employees, contractors, agents or
               representatives in its or their respective capacities as an
               employer.

          20.2  Claim for Losses.  If a Claim is to be made by a party entitled
                ----------------
to indemnification hereunder against the Vendor, the party claiming such
indemnification shall give a Claim Notice to the Vendor as soon as practicable
after the party entitled to indemnification becomes aware of any fact, condition
or event which may give rise to Losses for which indemnification may be sought
under this Agreement, provided, however, no delay on the part of the Owner in
notifying the Vendor shall relieve the Vendor from any obligation hereunder
unless (and then solely to the extent) the Vendor is thereby materially
prejudiced.  If any lawsuit or enforcement action is filed against any party
entitled to the benefit of indemnity hereunder, written notice thereof shall be
given to the Vendor as promptly as practicable (and in any event within twenty
(20) calendar days after the service of the citation or summons).  The Vendor
shall be entitled, if it so elects to:  (i) defend such lawsuit or action; (ii)
employ and engage attorneys of its own choice to handle and defend the same, at
the Vendor's cost, risk and expense; and (iii) compromise or settle such Claim,
which compromise or settlement shall be made only with the written consent of
the Owner (which may not be unreasonably withheld), unless such compromise or
settlement includes an unconditional release of any claims against the Owner in
which event such written consent of the Owner shall not be required.  If the
Vendor fails to

                                       49
<PAGE>

assume the defense of such Claim within twenty (20) calendar days after receipt
of the Claim Notice, the Owner against which such Claim has been asserted will
(upon delivering notice to such effect to the Vendor) have the right to
undertake, at the Vendor's cost and expense, the defense, compromise or
settlement of such Claim on behalf of and for the account and risk of the
Vendor.  In the event the Owner assumes the defense of the Claim, the Owner will
keep the Vendor reasonably informed of the progress of any such defense,
compromise or settlement.  The Vendor shall be liable for any settlement of any
action effected pursuant to and in accordance with this Agreement and for any
final judgment (subject to any right of appeal), and the Vendor agrees to
indemnify and hold harmless the Owner from and against any Losses by reason of
such settlement or judgment.

          20.3  Limitation Of Liability.  THE ENTIRE LIABILITY OF VENDOR FOR ANY
                -----------------------
CLAIM, LOSS, DAMAGE OR EXPENSE OF OWNER OR ANY OTHER ENTITY ARISING OUT OF THIS
CONTRACT, OR THE USE OR PERFORMANCE OF ANY PRODUCT OR SERVICE, WHETHER IN AN
ACTION FOR OR ARISING OUT OF BREACH OF CONTRACT OR TORT, INCLUDING NEGLIGENCE,
INDEMNITY OR STRICT LIABILITY, SHALL BE EXPRESSLY SET FORTH HEREIN AND AS
FOLLOWS:

     1.   FOR INFRINGEMENT, THE REMEDIES SET FORTH IN SECTION 15;

     2.   FOR THE NON-PERFORMANCE OF PRODUCTS OR SERVICES DURING THE WARRANTY
          PERIOD, THE REMEDIES SET FORTH IN THE APPLICABLE CLAUSE OF SECTION 18;

     3.   FOR DELAYS ATTRIBUTABLE TO FAILURE TO ACHIEVE A GUARANTEED SUBSTANTIAL
          COMPLETION DATE OR FAILURE TO SATISFY THE CAPACITY GUARANTEE, THE
          AGGREGATE OF THE DAMAGES WITH RESPECT TO THE FOREGOING SHALL NOT
          EXCEED AN AMOUNT EQUAL TO [*] OF THE AGGREGATE AMOUNTS OF ALL PURCHASE
          ORDERS WITH RESPECT TO ALL SYSTEMS, PROVIDED THAT FOR PURPOSES OF
                                              -------- ----
          QUANTIFYING THE DAMAGES FOR A FAILURE TO SATISFY THE CAPACITY
          GUARANTEE, THE ADDITIONAL EQUIPMENT FURNISHED BY THE VENDOR AT NO
          CHARGE TO THE OWNER SHALL BE VALUED AT THE PURCHASE PRICES FOR SUCH
          EQUIPMENT SET FORTH IN THIS CONTRACT AND, AS SO VALUED, SHALL BE
          DEEMED TO BE DAMAGES FOR PURPOSES OF THIS SUBSECTION AND;

      4.  EXCEPT AS PROVIDED IN PARAGRAPH 5 BELOW, FOR EVERYTHING OTHER THAN AS
          SET FORTH ABOVE, VENDOR'S TOTAL LIABILITY TO THE OWNER, WHETHER IN
          CONTRACT OR IN TORT (INCLUDING BREACH OF WARRANTY, NEGLIGENCE AND
          STRICT LIABILITY) SHALL BE LIMITED TO AN AMOUNT EQUAL TO [*] OF THE
          AGGREGATE AMOUNT OF ALL PURCHASE ORDERS ISSUED UNDER THIS CONTRACT.

                                       50
[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

      5.  THE LIMITATION SET FORTH IN PARAGRAPH 4 ABOVE SHALL NOT APPLY WITH
          RESPECT TO:  (i) CLAIMS OF BREACH OF CONFIDENTIALITY; (ii) CLAIMS
          SUBJECT TO INDEMNIFICATION PURSUANT TO SUBSECTION 20.1 ABOVE OR PATENT
          INFRINGEMENT PROVISIONS OF THIS CONTRACT; OR (iii) FAILURE TO COMPLY
          WITH APPLICABLE LAWS.

      6.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CONTRACT, NEITHER PARTY,
          NOR THEIR AFFILIATES, NOR THEIR EMPLOYEES, DIRECTORS, OFFICERS AND
          SUPPLIERS SHALL BE LIABLE FOR THE OTHER PARTY'S INDIRECT, INCIDENTAL
          OR CONSEQUENTIAL DAMAGES OR LOST PROFITS, REVENUES OR SAVINGS ARISING
          OUT OF THIS CONTRACT OR THE USE OR PERFORMANCE OF ANY PRODUCTS OR
          SERVICES OR, EXCEPT AS SET FORTH ABOVE, FOR DAMAGES IN EXCESS OF THE
          AGGREGATE AMOUNT OF ALL PAYMENTS MADE TO THE VENDOR HEREUNDER.  THIS
          CLAUSE SHALL SURVIVE FAILURE OF AN EXCLUSIVE OR LIMITED REMEDY.

          SECTION 21.  REPRESENTATIONS AND WARRANTIES

          21.1  Representations and Warranties of the Parties.  The parties
                ---------------------------------------------
hereby represent and warrant as follows:

                21.1.1  Due Organization. Each party represents and warrants to
                        ----------------
the other party that the representing party is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware
and has all requisite corporate power and authority to own and operate its
business and properties and to carry on its business as such business is now
being conducted and is duly qualified to do business in all jurisdictions in
which the transaction of its business in connection with the performance of its
obligations under this Contract makes such qualification necessary or required.

                21.1.2  Due Authorization; Binding Obligation. Each party
                        -------------------------------------
represents and warrants to the other party that the representing party has full
corporate power and authority to execute and deliver this Contract and to
perform its obligations hereunder, and the execution, delivery and performance
of this Contract by the representing party have been duly authorized by all
necessary corporate action on the part of the party; this Contract has been duly
executed and delivered by such party and is the valid and binding obligation of
the party enforceable in accordance with its terms, except as enforcement
thereof may be limited by or with respect to the following: (i) applicable
insolvency, moratorium, bankruptcy, fraudulent conveyance and other similar laws
of general application relating to or affecting the rights and remedies of
creditors; (ii) application of equitable principles (whether enforcement is
sought in proceedings in equity or at law); and (iii) provided the remedy of
specific enforcement or of injunctive relief is subject to the discretion of the
court before which any proceeding therefore may be brought.

                                       51
<PAGE>

                21.1.3 Non-Contravention. Each party represents and warrants to
                       -----------------
the other party that the execution, delivery and performance of this Contract by
the representing party and the consummation of the transactions contemplated
hereby will not contravene its certificate of incorporation or by-laws and will
not conflict with or result in: (i) a breach of or default under any material
indenture, mortgage, lease, agreement, instrument, judgment, decree, order or
ruling applicable to it or by which it or any of its properties is bound or
affected; or (ii) a breach by the representing party of any Applicable Law.

                21.1.4  Regulatory Approvals. Vendor represents and warrants to
                        --------------------
Owner that all authorizations by, approvals or orders by, consents of, notices
to, filings with or other acts by or in respect of any Governmental Entity or
any other Person required in connection with the execution, delivery and
performance of this Contract by the Vendor have been obtained or shall be
obtained in due course.

                21.1.5 Non-Infringement. Vendor represents and warrants to Owner
                       ----------------
that to the best of Vendor's knowledge after reasonable investigation, as of the
Effective Date there are no actual claims or threatened or actual suits in
connection with patents or other Intellectual Property Rights that could
materially adversely affect it's the Vendor's ability to perform its obligations
under this Contract.

                21.1.6  Requisite Knowledge. Vendor represents and warrants to
                        -------------------
Owner that that Vendor has all requisite knowledge, know-how, skill, expertise
and experience to satisfy its obligations in accordance with the terms of this
Contract.

                21.1.7  Financial Capacity. Vendor represents and warrants to
                        ------------------
Owner that Vendor has the financial, management and manufacturing capacity and
capabilities to satisfy its obligations in a timely manner in accordance with
the terms of this Contract.

          SECTION 22.  TITLE AND RISK OF LOSS

          22.1  Title.  Title to Equipment shall pass to the Owner upon delivery
                -----
of such Equipment to the location specified in the Exhibits.

          22.2  Risk of Loss.  Risk of loss or damage of any Products furnished
                ------------
to the Owner in connection with this Contract shall pass from the Vendor to the
Owner upon the later of:  (i) delivery of such Products to the Sites; or (ii) if
Vendor is responsible for Site Preparation, the date of the Site Preparation
Substantial Completion Certificate; provided that during the period a party has
                                    -------- ----
the risk of loss or damage to an item, nothing in this section shall relieve the
other party of responsibility for loss or damage to the item resulting from the
acts or omissions of the other party, its employees, or agents.

                                       52
<PAGE>

          SECTION 23.  DISPUTE RESOLUTION

          23.1  Dispute Resolution.  In the event any controversy, claim,
                ------------------
dispute, difference or misunderstanding between the Owner and the Vendor arises
out of or relates to this Contract, any term or condition hereof, any of the
Work to be performed hereunder or in connection herewith, each party shall
designate managers to meet and negotiate in good faith in an attempt to amicably
resolve such controversy, claim, dispute, difference or misunderstanding in
writing.  Such managers shall meet for this purpose within ten (10) Business
Days, or such other time period mutually agreed to by the parties, after written
notice from either party.  If the parties are unable to resolve the controversy,
claim, dispute, difference or misunderstanding through good faith negotiations
within ten (10) Business Days after such meeting or meetings, each party shall,
within five (5) Business Days after the expiration of such ten (10) Business Day
period, prepare a written position statement which summarizes the unresolved
issues and such party's proposed resolution.  Such position statement shall be
delivered by the Vendor to the Owner's Chief Executive Officer and by the Owner
to the Vendor's corresponding officer or representative for resolution within
five (5) Business Days, or such other time period mutually agreed to by the
parties.

          23.2  Tolling.  All applicable statutes of limitation shall be tolled
                -------
to the extent permitted by Applicable Law while the dispute resolution
procedures specified in this Section are pending, and nothing herein shall be
deemed to bar any party from taking such action as the party may reasonably deem
to be required to effectuate such tolling.

          SECTION 24.  TERMINATION AND EVENTS OF DEFAULT

          24.1  Termination Without Cause.  Notwithstanding anything in this
                -------------------------
Contract to the contrary, Owner, at anytime, for any reason or for no reason,
may terminate this Contract without notice and without further liability if, at
the time of such termination, the aggregate payments previously made, by or on
behalf of the Owner, to Vendor under this Contract is equal to or greater than
the Minimum Purchase Commitment.  Any Purchase Orders issued prior to any such
termination above shall remain in effect and shall be fulfilled to the extent
that such orders are outstanding as of the date of such termination.

          24.2  Termination for Cause.  The Owner shall have the right to
                ---------------------
terminate this Contract in its entirety (except as otherwise set forth in clause
(g) below) without any penalty or payment obligation, except as provided in
subsection 24.5 below, upon the occurrence of any of the events of default (each
a "Vendor Event of Default") as set forth below:
   -----------------------

          (a)  the Vendor (i) files a voluntary petition in bankruptcy or has an
involuntary petition in bankruptcy filed against it that is not dismissed within
sixty (60) days of such involuntary filing; (ii) admits the material allegations
of any petition in bankruptcy filed against it; (iii) is adjudged bankrupt; (iv)
is unable generally to pay its debts as they mature; (v) makes a general
assignment for the benefit of its creditors, or if a receiver is appointed for
all or a substantial portion of its assets and is not discharged within sixty
(60) days after his appointment; or (vi) the Vendor commences any proceeding for
relief from its creditors in any court under any state insolvency statutes; or

                                       53
<PAGE>

          (b)  the Vendor disregards or violates any Applicable Laws or
Applicable Permits which has a material adverse effect on the business,
financial condition or operations of Owner or on any of its Systems ("Material
                                                                      --------
Adverse Effect"); or
--------------

          (c)  the Vendor allows material Defects and Deficiencies to exist; or

          (d)  the Vendor fails to fulfill its obligations with respect to the
satisfaction, discharge or bonding of liens as set forth herein; or

          (e)  the Vendor abandons or ceases for a period in excess of thirty
(30) days its performance of the Work (except as a result of Force Majeure or a
casualty which is fully covered by insurance or as to which other provisions
reasonably acceptable to the Owner are being diligently pursued); or

          (f)  the Vendor assigns or subcontracts Work other than as provided
for in this Contract which has a Material Adverse Effect; or

          (g)  the Vendor misses the Guaranteed Substantial Completion Date for
any given System by a period in excess of one hundred-fifty (150) days; provided
                                                                        --------
that in such case the Owner shall have the right, but not the obligation, to
----
terminate this Contract with respect to only that System in which such delay
occurred; and provided further that such failure to achieve such date was not
caused by:  (i) a Force Majeure event; and/or (ii) any act or omission of the
Owner; or

          (h)  if an event of Force Majeure prevents the Vendor from performing
its obligations under this Contract for a period exceeding sixty (60) days, the
Owner may, upon prior written notice to the Vendor, terminate this Contract in
accordance with the Force Majeure provisions above; or

          (i)  the Vendor otherwise materially breaches any provision of this
 Contract.

          24.3  Remedies.  (a)  If any of the Vendor Events of Default exists,
                --------
the Owner may, in addition to and without prejudice to any other rights or
remedies of the Owner in this Contract or at law or in equity, terminate this
Contract upon written notice to the Vendor; provided, however, that the Owner
                                            --------  -------
shall have first provided to the Vendor the following periods of notice and
opportunity to cure:

                (i)  in the case of a Vendor Event of Default specified in the
     foregoing clauses (a) or (b), no notice or opportunity to cure shall be
     required from the Owner; and

                (ii)  in the case of any other Vendor Event of Default, the
     Owner shall have provided thirty (30) days prior written notice, and the
     Vendor shall have failed to: (i) commence to cure the default within five
     (5) Business Days of delivery of such notice; and (ii) diligently pursue
     such cure and remedy the breach entirely.

                                       54
<PAGE>

          (b)  If the Owner elects to terminate this Contract, the Owner may, in
addition to and without prejudice to any other rights or remedies of the Owner
in this Contract or of law or in equity, do one or more of the following:

               (i)  require Vendor, at no additional charge to Owner, to
     complete or assist others with the completion of all ordered but unfinished
     Work, including the sharing with Owner and others all relevant engineering
     and design data, procurement data, manufacturing data, construction and
     erection data, start-up and testing data, materials, and Products that
     shall become part of such unfinished System and/or the specified Systems,
     which Vendor would otherwise have been required to deliver to Owner
     pursuant to the terms of this Contract but for the breach, under reasonably
     appropriate non-disclosure agreements; or

               (ii)  direct that the Vendor assign its Subcontractor agreements
     to the Owner without any change of price or conditions therein or penalty
     or payment therefor.

          (c)  In the event of any termination of this Contract by Owner in
connection with a Vendor Event of Default, Owner shall have no liability for any
failure to satisfy the Minimum Purchase Commitment prior to such termination.

          24.4  Discontinuance of Work.  Upon such notification of termination,
                ----------------------
the Vendor shall immediately discontinue all of the Work (unless such notice of
termination directs otherwise), and, as more fully set forth in subsection
24.3(b), deliver to the Owner copies of all data, drawings, specifications,
reports, estimates, summaries, and such other information, and materials as may
have been accumulated by the Vendor in performing the Work, whether completed or
in process, which Vendor would otherwise have been required to deliver to Owner
pursuant to this Contract but for the breach.  Furthermore, the Vendor shall
assign, assemble and deliver to the Owner all purchase orders and Subcontractor
agreements requested by the Owner.

          24.5  Payments.  If the Owner terminates this Contract pursuant to
                --------
subsection 24.2, the Vendor shall not be entitled to receive further payment
other than payments due and payable under this Contract and not subject to
dispute prior to such termination (provided that any such disputed amounts shall
                                   -------- ----
be paid by the Owner when and if such dispute is in fact resolved).
Notwithstanding anything herein to the contrary, the Owner may withhold
payments, if any, to the Vendor for the purposes of offset of amounts owed to
the Owner pursuant to the terms of this Contract until such time as the exact
amount of damages due the Owner from the Vendor is fully determined by a court
of competent jurisdiction.

          24.6  Continuing Obligations.  Termination of this Contract for any
                ----------------------
reason (i) shall not relieve either party of its obligations with respect to the
confidentiality of the Proprietary Information as set forth in subsection 26.18;
(ii) shall not relieve either party of any obligation which applies to it and
which expressly or by implication survives termination; and (iii) except as
otherwise provided in any provision of this Contract expressly limiting the
liability of either party, shall not relieve either party of any obligations or
liabilities for loss or damage to the other party arising out of or caused by
acts or omissions of such party prior to the effectiveness of such

                                      55
<PAGE>

termination or arising out of its obligations as to portions of the Work already
performed or of obligations assumed by the Vendor prior to the date of such
termination.

          24.7  Vendor's Right to Terminate.  The Vendor shall have the option
                ---------------------------
to terminate this Contract without any penalty or payment obligations, other
than undisputed payment obligations outstanding as of the date of any such
termination pursuant to the terms of this Contract if:

          (a)  the Owner (i) files a voluntary petition in bankruptcy or has an
involuntary petition in bankruptcy filed against it that is not dismissed within
sixty (60) days of such involuntary filing:  (ii) admits the material
allegations of any petition in bankruptcy filed against it; (iii) is adjudged
bankrupt; (iv) makes a general assignment for the benefit of its creditors, or
if a receiver is appointed for all or a substantial portion of its assets and is
not discharged within sixty (60) days after his appointment; or (v) commences
any proceeding for relief from its creditors in any court under any state
insolvency statutes, and any such filing, proceeding, adjudication or assignment
as described herein above shall otherwise materially impair the Owner's ability
to perform its obligations under this Contract; or

          (b)  the Owner fails to make payments of undisputed amounts due to the
Vendor pursuant to the terms of this Contract which are more than sixty (60)
days overdue, provided that such failure has continued for at least thirty (30)
              -------- ----
days after the Vendor has notified the Owner of its right and intent to so
terminate on account of such overdue amount; and provided, further, that such
failure to make undisputed payments to Vendor shall not arise out of or relate
to a termination of or credit restrictions under the Vendor Financing, or

          (c)  the Owner materially breaches any provision of this Contract
other than a breach to which subsection 24.7(b) is applicable, and after the
Vendor having provided thirty (30) days' prior written notice, the Owner shall
have failed to:  (i) commence to cure the default within five (5) Business Days
of delivery of such notice; and (ii) diligently pursue such cure and remedy the
breach entirely.

          24.8  Special Termination Events.  (a)  Anytime prior to eighteen (18)
                --------------------------
months before termination or expiration of the Availability Period, Vendor, at
its option, may unilaterally extend the Availability Period.  Availability
Period is defined in the documentation of the Vendor Financing.

          (b)  [***]

                                      56

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

          (c)  If at any time after the Effective Date any material change shall
have occurred in any Applicable Law or in the interpretation thereof by any
Governmental Entity, or there shall be rendered any decision in any judicial or
administrative case or proceeding, in either case which, in the reasonable
opinion of the Owner would make the Owner's use of any part of any System
illegal or would subject the Owner or any of its Affiliates to any material
penalty, other material liability or onerous condition or to any burdensome
regulation by any Governmental Entity or otherwise render the use of such System
economically nonviable, then, with respect to such System, or affected part
thereof, or with respect to all Systems if so affected, the Owner may terminate
this Contract without charge or penalty of any kind; provided that (i) the Owner
                                                     -------- ----
gives the Vendor prior written notice of any such change or decision and (ii)
that the Owner uses its reasonable efforts for a reasonable time to reverse or
ameliorate such change or decision to the extent possible or practical prior to
declaring such termination.  In the event of a termination pursuant to this
subsection, payment obligations incurred by the Owner for Work actually done or
Products or Services actually delivered by the Vendor prior to such termination
pursuant to this Contract shall be payable by the Owner to the Vendor on the
same terms and subject to the limitations set forth in subsection 24.8(a) above.

          SECTION 25. SUSPENSION

          25.1  Owner's Right to Suspend Work.  The Owner may at any time issue
                -----------------------------
a Change Order to the Vendor to suspend all or any part of the Work for such
period of time as the Owner may reasonably determine to be appropriate.  Any
such Change Order shall be handled in accordance with the provisions of Section
11 hereof.

          SECTION 26.  MISCELLANEOUS

          26.1  Amendments.  The terms and conditions of this Contract may only
                ----------
be amended by mutually agreed contract amendments.  Each amendment shall be in
writing and shall identify the provisions to be changed and the changes to be
made.  Contract amendments shall be signed by duly authorized representatives of
each of the Vendor and the Owner.

          26.2  Owner Liabilities.  Vendor understands and agrees that no third
                -----------------
party shall guarantee or otherwise be in any way liable with respect to any
obligations or liabilities of the Owner or any of its affiliates pursuant to
this Contract.

          26.3  Offset.  The Vendor hereby waives any right of offset of amounts
                ------
owed by the Owner to the Vendor pursuant to the terms of this Contract.

          26.4  Assignment.  The Owner may assign this Contract, or any part
                ----------
hereof, to any Affiliate of Owner without the Vendor's approval or consent.
Subject to the foregoing and except as otherwise permitted herein, neither this
Contract nor any portion hereof may be assigned by either party without the
express prior written consent of the other party.  The Owner may, without

                                      57

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

the consent of the Vendor, collaterally assign its rights hereunder (including
but not limited to all licenses with respect to the Software) to any or all
parties providing financing for any part of a System for the benefit of the
Vendor and one or more other entities providing financing for any part of a
System or similar arrangement for the benefit of the Vendor and one or more
other entities providing for the financing for any part of a System, in either
case, which arrangement, as the case may be, is reasonably acceptable to the
Vendor in accordance with the terms of the financing documents.  If requested by
the Owner, the Vendor shall within seven (7) calendar days of such request
provide a written consent to any such assignment; provided that such consent
                                                  -------- ----
shall permit reassignment if the financing parties exercise their remedies under
the documents for such financing subject to reasonable standards as to:  (i) the
creditworthiness of the assignee; and (ii) the fact that the assignee is not at
such time a direct competitor of the Vendor involved in the manufacture of
communications equipment, software or related services.  The foregoing rights
and obligations are in addition to those set forth elsewhere in this Contract.
Any attempted assignment in violation of the terms of this Contract shall be
null and void.  Subject to the foregoing, this Contract shall bind and inure to
the benefit of the parties to this Contract, their successors and permitted
assigns.  Notwithstanding the foregoing, Vendor shall have the right to assign
this Contract to its affiliate, Ericsson Inc.; provided however, such assignment
shall not relieve Vendor of its obligations hereunder or cause Owner to incur
any additional costs or expenses.

          26.5  Notices.  Except as otherwise expressly stated herein, all
                -------
notices, requests, demands and other communications which are required or may be
given under this Contract shall be in writing and shall be deemed to have been
duly given when received if personally delivered; when transmitted if
transmitted by telecopy, electronic or digital transmission method; the day
after it is sent, if sent for next day delivery to a domestic address by
recognized overnight delivery service; and three (3) days after sending, if sent
by certified or registered mail, postage prepaid, return receipt requested.  All
notices shall be addressed as follows:

          If to the Owner:

               CRICKET COMMUNICATIONS, INC.
               10307 Pacific Center Court
               San Diego, California  92121
               Attention:  Chief Executive Officer

               With a copy to:
               Sr. Vice President, General Counsel
               10307 Pacific Center Court
               San Diego, California 92121

               Telephone:  (858) 882-6000
               Facsimile:  (858) 882-6080

                                      58
<PAGE>

          If to the Vendor:

               Ericsson Wireless Communications Inc.
               6455 Lusk Boulevard
               San Diego, California 92121

               Attention:  President
               Telephone:  (858) 332-5000
               Facsimile:  (858) 332-7188

               With a copy to:
               Vice President, General Counsel
               Telephone:  (858) 332-5000
               Facsimile:  (858) 332-7189

By written notice provided pursuant to this subsection, either party may change
its designated addressee for purposes of giving notices under this Contract.

          26.6  Governing Law.  This Contract is governed by the laws of the
                -------------
State of California, without regard to principles of conflict of laws.  This
Contract shall be deemed to be made and executed in the State of California.

          26.7  Remedies.  Subject only to the limitations on liability
                --------
contained in subsection 20.3, each party shall be entitled to pursue any and all
rights and remedies that are available at law or in equity.

          26.8  Consent to Jurisdiction.  Each party to this Contract, by its
                -----------------------
execution hereof, (i) hereby irrevocably submits to the exclusive jurisdiction
of the United States District Court located in the Southern District of
California or the state courts of the State of California located in San Diego,
California for the purpose of any action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation arising out
of or based upon this Contract or relating to the subject matter hereof; (ii)
hereby waives, to the extent not prohibited by applicable law, and agrees not to
assert, by way of motion, as a defense or otherwise, in any such action, any
claim that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution,
that-any such proceeding brought in one of the above-named courts is improper,
or that this Contract or the subject matter hereof may not be enforced in or by
such court; and (iii) hereby agrees not to commence any action, claim, cause of
action or suit (in contract, tort or otherwise), inquiry, proceeding or
investigation arising out of or based upon this Contract or relating to the
subject matter hereof other than before one of the above-named courts nor to
make any motion or take any other action seeking or intending to cause the
transfer or removal of any such action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation to any court
other than one of the above-named courts whether on the grounds of inconvenient
forum or otherwise.  Each party hereby consents to service of process in any
such proceeding in any manner permitted by California law, and agrees that
service of process by registered or certified mail, return receipt requested, at
its address specified herein.

                                      59
<PAGE>

          26.9  Compliance with Law.  The Owner and the Vendor shall comply with
                -------------------
all Applicable Laws in the performance of this Contract, including, without
limitation, the laws and regulations of the United States Department of
Commerce, State Department and the Federal Communications Commission and any
other applicable agency or department.

          26.10  Headings.  The headings given to the Sections and subsections
                 --------
herein are inserted only for convenience and are in no way to be construed as
part of this Contract or as a limitation of the scope of the particular Section
or subsection to which the title refers.

          26.11  Severability.  Whenever possible, each provision of this
                 ------------
Contract shall be interpreted in such a manner as to be effective and valid
under such applicable law, but, if any provision of this Contract shall be held
to be prohibited or invalid in any jurisdiction, the remaining provisions of
this Contract shall remain in full force and effect and such prohibited or
invalid provision shall remain in effect in any jurisdiction in which it is not
prohibited or invalid.

          26.12  Waiver.  Unless otherwise specifically provided by the terms of
                 ------
this Contract, no delay or failure to exercise a right resulting from any breach
of this Contract shall impair such right or shall be construed to be a waiver
thereof, but such right may be exercised from time to time as may be deemed
expedient.  If any representation, warranty or covenant contained in this
Contract is breached by either party and thereafter waived by the other party,
such waiver shall be limited to the particular breach so waived and not be
deemed to waive any other breach under this Contract.

          26.13  Public Statements and Advertising.  (a)  Neither party shall
                 ---------------------------------
issue any public statement (or any private statement unless required in the
performance of the Work) relating to or in any way disclosing any aspect of the
Work or any System including the scope, the specific terms of this Contract,
extent or value of the Work or any System.  Express written consent of the other
party is required prior to the invitation of or permission to any reporter or
journalist to enter upon the System or any part thereof.  The Vendor agrees not
to use for publicity purposes any photographs, drawings and/or materials
describing any System without obtaining the prior written consent of the Owner,
which consent shall not be unreasonably withheld.  The Owner agrees not to use
for publicity purposes any photographs, drawings and/or materials describing the
Vendor's products and services without obtaining the prior written consent of
the Vendor, which consent shall not be unreasonably withheld.  This subsection
shall not prohibit the provision of necessary information to prospective
Subcontractors and the Vendor's or the Owner's personnel, agents or consultants
or other disclosures which are required by Applicable Law, including without
limitation federal and state securities laws and regulations.  All other such
public disclosures by a party require the written consent of the other party.

          (b)  Each party shall submit to the other proposed copies of all
advertising (other than public statements or press releases) wherein the name,
trademark or service mark of the other party or its affiliates is mentioned; and
neither party shall publish or use such advertising without the other party's
prior written approval.  Such approval shall be granted as promptly as possible
and shall not be unreasonably withheld.  The parties acknowledge that the
obtaining of prior written approval for each such use pursuant to this
subsection may be an administrative burden.  At the request of either party, the
Owner and the Vendor shall establish mutually acceptable guidelines for

                                      60
<PAGE>

the uses specified therein. Such guidelines shall be subject to change from time
to time at the reasonable request of either party.

          26.14  Records and Communications.  Procedures for keeping and
                 --------------------------
distributing orderly and complete records of the Work and its progress are
stated in the Exhibits.  The procedures so established shall be followed
throughout the course of the Work unless the Owner and the Vendor mutually agree
in advance in writing to revise the procedures.  Procedures for communications
among the Owner and the Vendor are stated in the Exhibits.  The procedures so
established shall be followed throughout the course of the Work unless the Owner
and the Vendor mutually agree in advance and in writing to revise such
procedure.

          26.15  Ownership of Specifications.  The Specifications shall
                 ---------------------------
constitute the Proprietary Information of each party to the extent of each
party's contribution to the Specifications.  Neither party shall use those parts
of the Specifications contributed by the other party or any part of the
Proprietary Information of the other party for any purpose other than fulfilling
or exercising their respective rights or obligations under this Agreement.

          26.16  Financing Requirements.  The Vendor acknowledges that the
                 ----------------------
attainment of financing for construction of the System may be subject to
conditions that are customary and appropriate for the providers of such
financing.  Therefore, the Vendor agrees to promptly consider any reasonable
amendment to or modification or assignment of this Contract required by such
providers (including, without limitation, any pertinent industrial development
authority or other similar governmental agency issuing bonds for financing of
the System) which do not materially modify the scope of the Vendor's Work in
order to obtain such financing.  In the event that any such amendment or
modification materially increases the Vendor's risk or costs hereunder, the
Owner and the Vendor shall negotiate in good faith to adjust pricing matters,
and to equitably adjust such other provisions of this Contract, if any, which
may be affected thereby, to the extent necessary to reflect such increased risk
or costs.  In no event shall the Vendor be required to accept any modification
or amendment pursuant to this subsection provide it has a commercially
reasonable basis for such refusal.

          26.17  Owner Review, Comment and Approval.  To the extent that various
                 ----------------------------------
provisions of this Contract provide for the Owner's review, comment, inspection,
evaluation, recommendation or approval, the Owner may at its option do so in
conjunction and/or consultation with the Vendor.  To the extent that this
Contract requires the Owner to submit, furnish, provide or deliver to the Vendor
any report, notice, Change Order, request or other items, the Owner may at its
option and upon written notice to the Vendor designate a representative to
submit, furnish, provide or deliver such items as the Owner's agent therefor.
To the extent that various provisions of this Contract provide that the Owner
may order, direct or make requests with respect to performance of the Work or is
provided access to the System sites or any other site, the Owner may at its
option and upon written notice to the Vendor authorize a representative to act
as the Owner's agent therefor.  Upon receipt of such notice, the Vendor shall be
entitled to rely upon such authorization until a superseding written notice from
the Owner is received by the Vendor.

          26.18  Confidentiality.  (a)  All information which is identified as
                 ---------------
proprietary or confidential by the disclosing party, including without
limitation all oral and written information

                                      61
<PAGE>

(including but not limited to determinations or reports by arbitrators pursuant
to the terms of this Contract), disclosed to the other party is deemed to be
confidential, restricted and proprietary to the disclosing party (hereinafter
referred to as "Proprietary Information"). Each party agrees to use
                ----------- -----------
the Proprietary Information receive from the other party only for the
purpose of this Contract. Except as specified in this Contract, no other rights,
and particularly licenses, to trademarks, inventions, copyrights, patents, or
any other intellectual property rights are implied or granted under this
Contract or by the conveying of Proprietary Information between the parties.
Proprietary Information supplied is not to be reproduced in any form except as
required to accomplish the intent of, and in accordance with the terms of, this
Contract. The receiving party shall provide the same care to avoid disclosure or
unauthorized use of Proprietary Information as it provides to protect its own
similar proprietary information but in no event shall the receiving party fail
to use reasonable care under the circumstances to avoid disclosure or
unauthorized use of Proprietary Information. All Proprietary Information shall
be retained by the receiving party in a secure place with access limited to only
such of the receiving party's employees, subcontractors or agents who need to
know such information for purposes of this Contract and to such third parties as
the disclosing party has consented to by prior written approval. All Proprietary
Information, unless otherwise specified in writing: (i) remains the property of
the disclosing party; (ii) shall be used by the receiving party only for the
purpose for which it was intended; and (iii) such Proprietary Information,
including all copies of such information, shall be returned to the disclosing
party or destroyed after the receiving party's need for it has expired or upon
request of the disclosing party, and, in any event, upon termination of this
Contract. At the request of the disclosing party, the receiving party shall
furnish a certificate of an officer of the receiving party certifying that
Proprietary Information not returned to disclosing party has been destroyed. For
the purposes hereof, Proprietary Information does not include information which:

               (i)  is published or is otherwise in the public domain through no
     fault of the receiving party at the time of any claimed disclosure or
     unauthorized use by the receiving party;

               (ii)  prior to disclosure pursuant to this Contract is properly
     within the legitimate possession of the receiving party as evidenced by
     reasonable documentation to the extent applicable;

               (iii)  subsequent to disclosure pursuant to this Contract is
     lawfully received from a third party having rights in the information
     without restriction of the third party's right to disseminate the
     information and without notice of any restriction against its further
     disclosure;

               (iv)  is independently developed by the receiving party or is
     otherwise received through parties who have not had, either directly or
     indirectly, access to or knowledge of such Proprietary Information;

               (v)  is transmitted to the receiving party after the disclosing
     party has received written notice from the receiving party after
     termination or expiration of this Contract that it does not desire to
     receive further Proprietary Information;

                                      62

<PAGE>

               (vi)  is obligated to be produced under order of a court of
     competent jurisdiction or other similar requirement of a Governmental
     Entity, so long as the party required to disclose the information provides
     the other party with prior notice of such order or requirement and its
     cooperation to the extent reasonable in preserving its confidentiality; or

                (vii)  the disclosing party agrees in writing is free of such
     restrictions.

          (b)  Because damages may be difficult to ascertain, the parties agree,
without limiting any other rights and remedies specified herein, an injunction
may be sought against the party who has breached or threatened to breach this
subsection.  Each party represents and warrants that it has the right to
disclose all Proprietary Information which it has disclosed to the other party
pursuant to this Contract, and each party agrees to indemnify and hold harmless
the other from all claims by a third party related to the wrongful disclosure of
such third party's proprietary information.

          26.19  Entirety of Contract; No Oral Change.  This Contract and the
                 ------------------------------------
Exhibits and Schedules referenced herein constitute the entire contract between
the parties with respect to the subject matter hereof, and supersede all
proposals, oral or written, all previous negotiations, agreements [including
without limitation the Memorandum of Agreement dated September 20, 1999 by and
among Vendor, Cricket (as defined in that agreement) and Leap Wireless
International, Inc.] and all other communications between the parties with
respect to the subject matter hereof.  No modifications, alterations or waivers
of any provisions herein contained shall be binding on the parties hereto unless
evidenced in writing signed by duly authorized representatives of both parties
as set forth in this Contract.

          26.20  Relationship of the Parties.  Nothing in this Contract shall be
                 ---------------------------
deemed to constitute either party a partner, agent or legal representative of
the other party, or to create any fiduciary relationship between the parties.
The Vendor is and shall remain an independent contractor in the performance of
this Contract, maintaining complete control of its personnel, workers,
Subcontractors and operations required for performance of the Work.  This
Contract shall not be construed to create any relationship, contractual or
otherwise, between the Owner and any Subcontractor, except to establish Owner as
a third party beneficiary of the Vendor's contacts with Subcontractors as
provided herein.

          26.21  Discretion.  Notwithstanding anything contained herein to the
                 ----------
contrary, to the extent that various provisions of this Contract call for an
exercise of discretion in making decisions or granting approvals or consents,
the parties shall be required to exercise such discretion, decision or approvals
and in good faith.

          26.22  Non-Recourse.  No past, present or future limited or general
                 ------------
partner in or of the Owner, no parent or other affiliate of any company
comprising the Owner, and no officer, employee, servant, executive, director,
agent or authorized representative of any of them (each, an "Operative") shall
                                                             ---------
be liable by virtue of the direct or indirect ownership interest of such
Operative in the Owner for payments due under this Contract or for the
performance of any obligation, or breach of any representation or warranty made
by the Owner hereunder.  The sole recourse of the Vendor

                                      63
<PAGE>

for satisfaction of the obligations of the Owner under this Contract shall be
against the Owner and the Owner's assets and not against any Operative or any
assets or property of any such Operative. In the event that a default occurs in
connection with such obligations, no action shall be brought against any such
Operative by virtue of its direct or indirect ownership interest in the Owner.

          26.23  Improvements, Inventions and Innovations.  All rights in any
                 ----------------------------------------
improvements, inventions, and innovations made solely by the Owner shall vest in
the Owner, and the Owner and its affiliates shall have the right to exploit such
improvements, inventions, and innovations.  All rights in any improvements,
inventions and innovations made solely by the Vendor shall vest in the Vendor,
and the Vendor and its affiliates shall have the right to exploit such
improvements, inventions and innovations.  All rights in any improvements,
inventions and innovations made by the substantial contribution of both parties
("Joint Information") shall vest jointly in both parties.  Joint Information
  -----------------
does not include any underlying information owned by one of the parties prior to
commencement of such joint activities or developed beyond the scope of such
joint activities, including Products and Product information, technical
information or inventions developed prior to the commencement of any joint
activities, developed outside of the scope of such joint activities or developed
solely by either party.  The rights of joint ownership to such Joint Information
shall be rights of full non-exclusive worldwide ownership, including rights to
license and transfer.  Each party may exploit its rights to the Joint
Information independent of the other and may retain all economic benefits
thereof, neither party shall have any obligation to account to the other for
profits derived from the Joint Information and each party shall have full rights
to enforce the Joint Information intellectual property rights against non-
authorized users.

          26.24  Attachments and Incorporations.  All Schedules and Exhibits
                 ------------------------------
attached hereto, are hereby incorporated by reference herein and made a part of
this Contract with the same force and effect as though set forth in their
entirety herein.

          26.25  Conflicts.  In the event of any conflict or inconsistency among
                 ---------
the provisions of this Contract and the documents attached hereto and
incorporated herein, such conflict or inconsistency shall be resolved by giving
precedence to this Contract and thereafter to the Exhibits, Schedules and
Specifications.

          26.26  References to Certain Sources.  Reference to standard
                 -----------------------------
specifications, manuals or codes of any technical society, organization or
association or to the laws or regulations of any Governmental Entity, whether
such reference is specific or by implication, by this Contract, means the latest
standard specification, manual, code, laws or regulations in effect at the time
of such reference, except as may be otherwise specifically agreed to by the
Owner.  However, no provision of any reference, standard, specification, manual
or code (whether or not specifically incorporated by reference in this Contract)
shall be effective to change the duties and responsibilities of the Owner or the
Vendor from those set forth in this Contract; provided that nothing contained in
                                              -------- ----
this Contract shall require the Owner or the Vendor to violate then existing and
enforceable Applicable Laws.

          26.27  Counterparts.  This Contract may be executed by one or more of
                 ------------
the parties to this Contract on any number of separate counterparts, and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument.

                                      64
<PAGE>

          26.28  Cooperation.  Vendor acknowledges that Owner may have one or
                 -----------
more third party vendors, contractors and other personnel engaged to provide
work, equipment or services to Owner in connection with or related to this
Contract.  Vendor agrees to reasonably communicate and cooperate with such third
parties at all times and, at the request of Owner, coordinate Vendor's and
Vendor's Subcontractors' activities hereunder with the activities of such third
parties.

          26.29  Survival.  Notwithstanding any expiration or termination of
                 --------
this Contract, the provisions of Sections 2.8, 12, 13, 14, 15, 18, 20 and 26.18
shall continue in full force and effect.  Any termination hereunder shall not
relieve Owner of any payment obligation accrued prior to such termination.

                     [THIS SPACE INTENTIONALLY LEFT BLANK]

                                      65
<PAGE>

          THE OWNER AND THE VENDOR HAVE READ THIS CONTRACT INCLUDING ALL
SCHEDULES AND EXHIBITS HERETO AND AGREE TO BE BOUND BY ALL THE TERMS AND
CONDITIONS HEREOF AND THEREOF.

          IN WITNESS WHEREOF, the parties have executed this Contract as of the
date first above written.

                              VENDOR:

                              ERICSSON WIRELESS COMMUNICATIONS INC.,

                              a Delaware corporation

                              By:   _______________________________

                                    Name:
                                    Title:

                              OWNER:

                              CRICKET COMMUNICATIONS, INC.,
                              a Delaware corporation

                              By:   _______________________________

                                    Name:
                                    Title:

                                      66
<PAGE>

                                   Exhibit A

Ericsson to provide IS-2000 CDMA based voice and data infrastructure equipment,
software and services including network design and project management services
and radio, switching, and OA&M systems for PCS network deployment, operations
and maintenance [*] as specified and ordered by Owner.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                  Exhibit A-1

                           PROCEDURES AND MILESTONES

                         FOR SYSTEM DEVELOPMENT [***]

[Four Pages of Technical Information Deleted Pursuant to Confidential Treatment
Request]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                   Exhibit B

                                    PRICING

1.0  INTRODUCTION

The purpose of this Exhibit B is to set forth the pricing associated with this
Contract. This Section 1.0 will set forth the outline as to what is addressed in
this Exhibit.

In Section 2.0 of this Exhibit, the unit pricing of Products currently being
offered under this Contract is provided. This pricing includes: [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

2.0  EQUIPMENT UNIT PRICES

[Thirty-One Pages of Pricing Information Deleted Pursuant to Confidential
Treatment Request]

<PAGE>

                                   Exhibit C

                         Features And Service Options

1    Scope

This document describes the features and service options of the Ericsson [*]
Product as it is to be deployed for Cricket Communications 1900 MHz PCS wireless
systems in various locations in the United States.

2    Features And Service Options

2.1  Available Features
This section provides the [*] features [*] for the [*] Product. In the feature
abstracts below: [IS95A] refers to "TIA/EIA/IS-95A Mobile Station - Base Station
Compatibility Standard for Dual-Mode Wideband Spread Spectrum Cellular System,
1995, EIA/TIA"

[IS95B] refers to "TIA/EIA/IS-95A Mobile Station - Base Station Compatibility
Standard for Dual-Mode Wideband Spread Spectrum Cellular System, Revision B,
October 1998, EIA/TIA"

[TIA/EIA-664] refers to "Cellular Features Description, June 1996, EIA/TIA"
[ANSI 41] refers to "ANSI TIA/EIA-41 Revision D, Cellular
Radiotelecommunications Intersystem Operations, December 1997"

[IOS V2.1] refers to "CDG MSC to BS Inter-Operability Specification (IOS)
Version 2.1.0, December 1998"

[IOS V4] refers to "CDG MSC to BS Inter-Operability Specification (IOS) Version
4 [*]"

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

2.2

[Five Pages of Technical Information Deleted Pursuant to Confidential Treatment
Request]

<PAGE>

2.3

                                     [***]

2.4    Numbering

2.4.1  Numbering Plan Support. The [*] Product supports the numbering schemes as
defined in ITU-T E.164 for ISDN and ITU-T E.212 for IMSI.

2.4.2  NPA Split Support (North America). The [*] Product supports NPA split,
which is unique to world zone 1 markets. This feature allows a type of
permissive dialing when an NPA area is split into two NPAs (one half is assigned
to a new NPA). This feature allows subscribers a

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

grace period to reprogram their MINs to the new NPA. New NPAs and/or NXXs are
being assigned to markets in two ways.

               [***]

2.4.3  Carrier handling (3 and 4 digits carrier-codes, North America). The [*]
Product supports both 3- and 4-digit carrier codes.

2.5    Teleservices

2.5.1  [***]

2.5.2  Emergency call. The [*] Product allows emergency calls to be completed
without validating the identity of the mobile. The emergency call function
provides routing to the appropriate (nearest) public safety answering point
(PSAP) based on the originating cell, and provides delivery of the originating
subscriber's Directory Number (DN) and approximate location.

2.5.3  E-911 Phase 1. The [*] Product supports emergency service E-911 as
specified in J-STD-034. The purpose of this feature is:

 .  to provide the mobile easy access to the Public Safety Answering Point (PSAP)
   by directing emergency calls to the appropriate PSAP

 .  to enable the PSAP that connected the call to call back the mobile by
   supplying the MDN

 .  to re-establish the emergency call in case of lost radio contact

 .  to route emergency calls from mobile stations without an authorized MIN

2.5.4  E911 Phase 2 Position Location. Provides support for E911 Phase 2
position location, providing latitude/longitude and cell site location to the
PSAP per FCC Docket 940192 Report and Order. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

2.5.5  Support of Loop Back calls. The [*] Product supports the BSS loop back
calls which may be used for voice quality testing. Both 8k (service option 2)
and 13k (service option 9) are supported. No subscription check is done on this
type of call.

2.5.6  Markov Call Support. The [*] Product supports the BSS Markov calls. Both
8k (service option 0x801e) and 13k (service option 0x801F) Markov calls are
supported. The Markov service option provides pseudo-random data for testing the
Traffic Channel between the mobile station and the base station.

2.5.7  [***]

2.5.8  SMS Mobile Terminated (Point to Point). Mobile Terminated SMS allows
Short Message Entities (SME) to send information to a handset through the Short
Message Service Center (SMSC). The [*] Product delivers short messages initiated
by an external short message service center (SMS-C) to mobile stations using the
[***].

2.5.9  SMS Mobile Originated (Point to Point). Mobile Originated SMS allows
Mobiles to send short messages through the Short Message Service Center (SMSC).

2.5.10 Asynchronous Digital FAX Service. The [*] Product provides circuit switch
asynchronous digital FAX service per IS-99/IS-707. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

2.5.11  Asynchronous Digital Data Service. The [*] System Product provides
support for circuit switched asynchronous data service per IS-99/IS-707. [***]

2.5.12  Service Negotiation (13K /EVRC). The [*] Product will support 13k to
EVRC service negotiation for calls originated by mobile users. This feature is
especially important for improving the air link capacity for voice calls. When a
mobile capable of 13K and EVRC service options originates a call with the 13K
Service option, the system will negotiate the service option (downward) to EVRC.

2.6     Mobility Management

2.6.1   Paging. The [*] Product broadcasts Page Request messages to all cell
sites belonging to the same Paging Area.

2.6.2   Slotted Mode Paging. The [*] Product supports slotted mode paging.
Slotted mode paging conserves handset power by trading off paging response
times. [***]

2.6.3   Non Slotted Mode Paging. The [*] Product supports mobile stations
operating in non slotted mode.

2.6.4   Periodic/Parameter/Implicit Registration. The [*] System Product
supports periodic (timer based), parameter and implicit registration according
to [*].

2.6.5   Power Up/Down Registration. The [*] Product supports power up/down
registration as defined in [*]. Whenever a mobile subscriber switches on or off
the mobile phone, a location registration is performed.

2.6.6   Automatic Roaming. The [*] Product supports automatic roaming as defined
in [*]. This feature allows a service provider to give subscribers entering the
system wireless services and features identical

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

to their home system. Upon first registering in the system, the subscriber's
profile will be retrieved from the HLR by the MSC/VLR.

2.6.7   Call Delivery. The [*] Product provides call delivery as defined in [*].
This feature allows calls to automatically be delivered to mobile subscribers,
that are roaming in other systems, by using the ANSI-41-D intersystem standard.
If a subscriber does not wish to automatically receive calls while roaming, the
call delivery feature may be turned off by dialing a feature code. When the call
delivery feature is turned off, the mobile will still receive calls while in the
home network.

2.6.8  [***]

2.7    Handoff

2.7.1  Soft handoff supported by BSS

     a)  The [*] Product supports any combination of intra-BSC soft and softer
         handoff on a [***].

     b)  The [*] Product provides the capability to select and control which
         pilots are placed in the active set after each Pilot Strength
         Measurement Message reception.

     c)  The [*] Product provides the capability to select which pilots to
         include the Neighbor List Update Message.

2.7.2  [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

2.7.2a  Soft/Softer Handoff Setup/End time

       [***]

2.7.3  CDMA to CDMA Hard Hand-off. The [*] Product will support CDMA to CDMA
Hard hand-off feature as described here. This feature will support the following
capabilities:

     1. The system will be able to perform hard handoff for mobiles that are on
        [*]. The handoff will be performed assuming the service option is kept
        the same before and after the handoff.

     2. The hard handoffs will be supported between two 1.25Mhz CDMA frequencies
        that are within the same CDMA Cellular or PCS band. [***]

     3. The Voice call hard handoffs could either be between two BTS that are
        each connected to different BSCs which in turn interface to the same
        MSC, or it could also be for those BTSs and BSCs connected to two
        different MSCs. [***]

     4. [***]

     5. The hard handoff triggering will be performed by [***].

2.7.4  [***]

2.7.5  [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

2.8    Supplementary Services

The [*] Product provides support for the vertical user features listed below.
[***]

2.8.1  Call Forwarding. The [*] Product supports call forwarding as defined in
[*]. Call forwarding automatically forwards a call to another number. The types
of call forwarding to be supported are listed below.

2.8.1.1   Unconditional call forwarding (CFU). The [*] Product supports
          unconditional call forwarding. If the mobile subscriber has activated
          the unconditional call forwarding feature, all terminating calls to
          this subscriber will be immediately forwarded by the MSC to the
          subscriber's forward to number.

2.8.1.2   Conditional call forwarding on MS busy (CFB). The [*] Product supports
          conditional call forwarding when the MS is busy. If the mobile
          subscriber has activated the call forwarding busy feature, all
          terminating calls to this subscriber will be forwarded by the MSC to
          the subscriber's "forward to" number, if the subscriber is busy.

2.8.1.2.1 Conditional call forwarding on no answer or not reachable (CFNA). The
          [*] Product supports conditional call forwarding on no answer, or if
          the mobile is otherwise inaccessible, due to:

     .    mobile does not respond to a paging request
     .    mobile's location is not known
     .    mobile is inactive call delivery is not active and the user is roaming
     .    "Do Not Disturb" (DND) is active

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

        .  mobile is not reachable (ANSI-41 timeout)

        If the mobile subscriber has activated the CFNA feature, then all
terminating calls to this subscriber will be forwarded by the MSC to the
subscriber's (CFNA) forward to number, if the subscriber does not answer or no
page response is received.

2.8.1.2.2  Default call forwarding (CFD). The [*] Product supports default call
           forwarding. Default call forwarding is generally used to forward
           calls to voice mail when the subscriber is engaged in a call, does
           not respond to paging, does not answer the call within a specified
           time period, or its otherwise inaccessible, due to:

        .  mobile's location is not known
        .  mobile is inactive
        .  call delivery is not active and the user is roaming
        .  DND is active

2.8.1.3    Call barring. The [*] Product supports call barring. Certain dialing
           restrictions can be imposed on subscribers by the operator, or they
           can be subscriber controlled. The types of call barring features
           supported are listed below

2.8.1.3.1  CB on incoming calls. This feature permits the restriction of certain
           types of calls that can be terminated to a Mobile Station (MS),
           including:

        .  all incoming calls
        .  incoming calls outside home cellular region

2.8.1.3.2  CB on all outgoing calls. This feature permits the restriction of all
           outgoing calls that can be originated from a MS, apart from the
           originating calls that must never be restricted such as emergency
           calls, some features codes and service calls (e.g., *0, *611, etc.).

2.8.1.4    Call hold. The [*] Product supports call hold. This feature is
         automatically invoked in conjunction with such features as 3-way
         calling and call waiting.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

2.8.1.5   Call Waiting (CW). The [*] Product supports call waiting as defined in
        [*]. This feature allows a mobile subscriber to receive a call while
        busy on another call. It also allows the subscriber to alternate
        conversations with either party while putting the other on hold. If the
        cellular subscriber presses the END key while a call is on hold, then
        all parties will be released.

2.8.1.6   Cancel Call Waiting . The [*] Product supports cancel call waiting as
        defined in [*] as part of the call waiting feature. This CW feature
        option allows a mobile subscriber to deactivate the call waiting feature
        on a per call basis.

2.8.1.7   Calling Number Identification Presentation (CNIP). The [*] Product
        supports CNIP as defined in [*]. CNIP is supported for calls from the
        PSTN to a mobile, from a mobile to the PSTN and mobile to mobile. [***]

2.8.1.8   Calling Number Identification Restriction (CNIR) . This feature
        allows the calling subscriber to restrict the transport of the Calling
        Party Number to the called subscriber for display. Subscribers with CNIR
        authorized may de-activate CNIR on a per-call basis by dialing feature
        code (*670) and termination number. Subscribers with CNIR NOT authorized
        may activate CNIR on a per-call basis by dialing feature code (*671) and
        termination number. No common carrier may impose charges with per-call
        blocking (FCC). Exceptions to CNIR apply to 911, law enforcement
        tracing, and 800/888 numbers.

2.8.1.9   Three way calling. The [*] Product supports three way call as defined
        in [*]. This feature allows an authorized subscriber who is engaged in a
        stable two party call to call a third party and establish a conference
        call between the three of them. If the subscriber is not authorized, the
        two party call will be stabilized again without a recorded announcement.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

2.8.1.10  Message Waiting Notification. The [*] Product supports the ability to
         illuminate a message waiting indicator on the mobile when unheard
         messages are available in a voice mail system. Every time a change to
         the message count is reported by the voice mail system, this is
         conveyed to the mobile either when idle or active on a traffic channel.
         When the count is greater than zero, a message waiting icon will be
         illuminated on the subscriber's mobile. This feature typically uses
         ANSI 41 MWN interaction between the MSC and HLR.

2.8.1.11  Voice Mail Notification via SMS. Voice Mail Notification (VMN) is
          supported via SMS per [*]. The Mobile Station is notified whenever a
          new voice mail message is received, and the number of unheard messages
          will be provided for display on the Mobile Station.

2.8.1.12   Do Not Disturb. The Do Not Disturb (DND) feature allows a subscriber
         to bar incoming voice calls, but it still allows the user to originate
         calls and receive mobile terminated SMS, fax and data calls. The barred
         voice calls are routed to voice mail or given other secondary call
         treatment. The user can activate and deactivate DND by using feature
         codes. The MSC typically obtains authorization by sending an IS-41
         message to the HLR and sends the appropriate tone (confirmation or
         deny) to the subscriber and releases the call.

2.8.1.13  [***]

2.8.1.14  Reserved.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[Two Pages of Technical Information Deleted Pursuant to Confidential Treatment
Request]

<PAGE>

[***]

2.9    [***]

2.10   System Services

2.10.1 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

2.10.2   Terrestrial Facility Management. The [*] Product supports Terrestrial
Facility Management. This is the management of terrestrial resources shared
between the MSC and the BSS. [***]

2.11     Security. The [*] Product supports the following security mechanisms.

2.11.1   Authentication. The [*] Product supports authentication. The purpose of
authentication is to prevent fraudulent mobiles that are produced by capturing
valid Mobile Identification Number (MIN) and Electronic Serial Number (ESN)
combinations from the air and programming them in another mobile (i.e. creating
a clone). Authentication is a method of verifying the authenticity of a mobile
station and denying service to invalid mobiles and thereby deterring fraud.

The authentication procedure can be used either as an autonomous procedure or
combined with other procedures such as:

        . Registration

        . Call establishment

        . Network initiated authentication

The following authentication-related procedures are supported:

 .    Global authentication - a process in which the mobile station is required
     to send the result of the authentication algorithm for verification by the
     AC before every registration, call origination, and call termination

 .    Unique challenge authentication - a process in which the AC forces a
     specific MS on the traffic channel to perform authentication. The unique
     challenge authentication happens automatically after an SSD Update, and it
     can be configured to occur every [*] call or turned off completely.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

 . SSD Update - The AC can initiate updating the SSD in the MS. [***]

 . RAND management - The BTS is responsible for the RAND management which
  involves generating and updating the RAND. The BTS regularly updates the RAND
  after a configurable amount of time [*].

 . Call History Count - The MS and AC each have counters that are simultaneously
  incremented for each mobile originated or terminated call. The counters can be
  compared during authentication, and if there is a mismatch, then the MS can be
  suspected to be fraudulent. This is used when it is suspected that all the
  parameters have been cloned.

[***]

2.12  Additional Functionality

[***]

Dual Tone Multi Frequency (DTMF) Signaling over [*].  [***]

The [*] Product supports out of band over-the-air processing of DTMF tones on
the reverse link. The BSC receives the TIA/EIA/IS-95-A DTMF messages, and the
BSC generates the appropriate DTMF tones to be sent over the PSTN.

The [*] Product supports out of band over-the-air processing of DTMF tones on
the forward link. The CMS [*] System Product sends the IS-95-A DTMF burst
messages.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

Over the Air Activation Service Provisioning. Over-the-air Service Provisioning
(OTASP) enables automatic activation and service provisioning of wireless
subscriber units by downloading and uploading system parameters to and from the
wireless handsets. This service makes use of a network element called "OTAF"
(Over the Air Function) which acts as an activation function mainly responsible
for forwarding OTASP messages to and from the mobile handsets. [***]

Lawful Authorized Intercept (CALEA). The [*] BSS supports the requirements
specified in [*]. The interception and monitoring is for both call content and
call-identifying information. [***]

 Pre-Paid Phone Service. The [*] Product supports the requirements specified in
[*].

2.13   Intelligent Network Service Functionality

2.13.1 Originating Trigger (WIN Phase I). The [*] Product supports originating
triggers. The trigger is implemented by the standard ANSI-41-D protocol to
provide enhanced services even when roaming.

2.13.2 Local number portability - [*]. The [*] Product supports the Local Number
Portability (LNP) Service [*]. LNP [*] enables wireless service providers to
operate in areas where wireline companies offer LNP for Wireline customers. LNP
[*] lets wireline subscribers keep the same telephone number when they change
from one wireline service provider to another. To determine if a particular DN
has been ported, industry-wide databases containing both wireless and wireline,
maintain the list of all the ported numbers and their new locations. These
databases are referred to as Number Portability Databases (NPDB). In the MSC,
blocks of portable DN number ranges are defined. If the dialed number is within
one of these number ranges, a query is launched to the NPDB to find out if the
number is ported, and, if so, to what new location is it ported. This applies to
all mobile originated calls and incoming calls.

2.13.3 Voice mail retrieval while roaming. The [*] Product supports voice mail
retrieval while roaming. With this feature, roaming subscribers can retrieve
their voice mail by dialing a short feature code, and the feature code is sent
to the subscriber's HLR for proper translation. The serving

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

MSC can then route the subscriber based on the routing information supplied by
the HLR. This feature is dependent upon the system configuration and the
interconnection agreements.

2.13.4  Wireless Number Portability. The Product will support wireless number
portability [*].

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                  Exhibit D1

             RF ENGINEERING DESIGN SERVICES FOR NEW NETWORK DESIGN

[One Page of Technical Information Deleted Pursuant to Confidential Treatment
                                   Request]

<PAGE>

                                     [***]

3.0  RF ENGINEERING AND DESIGN RESPONSIBILITY MATRIX ("SOW")

         This RF Engineering Design Services statement of work defines the work
         requirements and responsibilities of Owner and Vendor with respect to
         performing RF Engineering Design Services.

         The RF engineering services for the design of a new network involves
         the three step process set forth below for the identification of the
         minimum number of cell sites required to achieve Owner's design
         objectives (the "RF Engineering Design Services"). RF engineers shall
         coordinate with other service disciplines--such as Site Acquisition,
         Spectrum Clearing and Construction Management--during the design
         process to ensure a smooth and successful deployment of the network.

         As used in this subsection, the following definitions and acronyms
         shall have the meanings indicated:

         "MapInfo(R)" shall mean a software computer program licensed by Vendor
         from MapInfo Corporation, One Global View, Troy, New York 12180.

         "Network Specification" shall mean a detailed operating performance
         specification for the Network containing all Equipment provided by
         Vendor.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

         "RF Performance Specification" shall mean a detailed RF specification
         containing mutually agreed performance criteria for the Network.

                                     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

                                     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                     [***]

4.0   TIME, MATERIAL, AND EXPENSES

                                     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

5.0      ACCEPTANCE

                                     [***]

6.0      DOCUMENTATION

                                     [***]

7.0      REPRESENTATIONS AND WARRANTIES

                                     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                     [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                  Exhibit D2

Core Network and Transmission Design Services

Introduction

This section describes the services Vendor can provide to Owner to design and
implement the core network of its CDMA wireless networks. These services
encompass both core network planning and interconnect.

This section includes:

     .    Responsibility Matrix

     .    Statement of Work ("SOW")

     .    Warranty Provisions

     .    Acceptance Criteria

As specified in Exhibit B, Vendor will provide Owner [*].  [***]

Responsibility Matrix

The following Responsibility Matrix itemizes and identifies the responsibilities
of Vendor and Owner relevant to the design of the core wireless network.

Core network requirements are predominantly the responsibility of Owner, as
described in the task delineation matrix, especially as they apply to
technological standards, regulatory conditions, and backhaul. Vendor shall
provide those core network requirements that are specific to its Equipment.

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                        Table 1. Core Network Planning

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                   Core Network Planning                              Owner                    Vendor

----------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>                       <C>
                                                                    Execution                 Execution
----------------------------------------------------------------------------------------------------------------
Owner input
----------------------------------------------------------------------------------------------------------------
</TABLE>

[Five Pages of Technical Information Deleted Pursuant to Confidential Treatment
                                   Request]

<PAGE>

Statement of Work

This section describes the tasks carried out by Vendor and/or Owner as part of
the core network planning process.

Network Requirements

This section defines and explains the process followed to obtain accurate and
reliable requirements for the design and configuration of the communications
network covered in this Contract.

The steps in this section must be completed before the network design can
commence. [***]

Owner Input

During the proposal phase, Vendor collects high-level data from Owner to
determine a preliminary design. [***]

Network Requirements Documentation

Based on the input received from Owner, Vendor will define the exact network
requirements. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

Owner Sign-off

The network requirements document must be signed off by Owner before Vendor can
proceed with the network design. [***]

Core Network Planning

This section describes design activities specifically associated with Vendor
portion of Owner's core network. [***]

This section defines and explains the various network switch engineering tasks
to be performed during the deployment phase. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[Four Pages of Technical Information Deleted Pursuant to Confidential Treatment
                                   Request]

<PAGE>

[***]

Expansion Network Switch (MSC/BSC) Design Services

Vendor may assist Owner in determining its system requirements or monitoring
their existing performance. [***]

Transmission Network Design (BTS/BSC Backhaul)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Transmission Network (BTS/BSC Interconnect)        Owner                     Vendor
----------------------------------------------------------------------------------------------
<S>                                                <C>                       <C>
                                                    Execution                 Execution
----------------------------------------------------------------------------------------------
</TABLE>

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

Statement of Work

This section describes the tasks carried out by Vendor and/or Owner as part of
the core network planning process as part of Transmission Network design
process.

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

Core Network and Transmission Design Provisions

Representations and Warranties

Vendor warrants that it is fully competent, experienced, and trained to provide
all core network planning services herein in a professional and workmanlike
manner, and that Vendor's core network planning services and deliverables
conform to the Specifications set forth herein.

[***]

Specification Change Control Process

Other than as defined below, Vendor may not change any Specifications unless
such change is approved by Owner or required due to a change in the core
network. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

System ATP Customization

Vendor provides Acceptance Test Plans and procedures according to the
definitions above. The scope of these tests covers all relevant aspects for the
corresponding scenario. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

Exhibit E: Deployment Services

------------------------------------------------------------------------------
SECTION 1:  PROJECT MANAGEMENT

1.1      Project Organization

         Vendor will work closely with Owner to organize a project deployment
         team. Specific individuals will be assigned responsibilities for the
         project in order to provide continuity and efficiency in planning,
         implementation, accountability, and reporting. A mutually agreed upon
         project organization will be developed and staffed with a minimum of
         the personnel listed below.

         [***]

1.1.1    Vendor Roles and Responsibilities

1.1.1.1 [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

1.2      Project Controls and Reporting

         The project control process will be established and maintained by the
         Vendor project manager through a dedicated project organization and the
         project plan.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

1.2.1    Project Plan

         The project plan is a comprehensive, detailed plan that describes the
         process that will be implemented in order to meet project objectives.
         It includes schedules, procedures, guidelines, and process flow
         illustrations that form the basic foundation of the project.

         The project plan will be developed by Vendor and Owner and will be
         delivered to Owner [*].

         [***]

1.2.2    Project Schedule

         The project schedule contains a milestone timetable for project
         implementation and illustrates the sequence of events,
         responsibilities, and the duration necessary for the Owner network to
         become ready for commercial launch. [***]

1.2.3    [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

1.2.4    Quality Assurance and Inspection

         The project manager or designee will have responsibility for ensuring
         that site audits are performed and reported in accordance with the
         standard Vendor quality assurance program.

[***]

1.2.5    Documentation Control

         Relevant equipment documentation shall be provided with Vendor's
         equipment. All documentation will be written in the English language
         and will be printed originals (not copies). A list of documentation
         deliverables and quantities is provided in Exhibit P.

         Document Control - Vendor will provide the administrative support and
         control of all Vendor -originated project documentation. [***]

1.3.     Logistics

         Logistics shall include the following:

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

1.4 Change Order and Modifications

         All changes to contractual commitments requested by either Owner or
         Vendor will be tracked and implemented in accordance with the mutually
         agreed upon process as defined in the Contract.

1.4.1    If OWNER  requests a change

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

1.4.2    If Vendor requests a change

[***]

1.5      Project Management

         The purpose of this document is to clarify the division of
         responsibility between Owner and Vendor for the areas of activity
         necessary for successful deployment of the system. [***]

         Responsibility Matrix

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[Two Pages of Technical Information Deleted Pursuant to Confidential Treatment
                                   Request]

<PAGE>

Section 2:  Site Development

         Site development encompasses all tasks necessary to transform a raw
         property into a property ready to receive and support
         telecommunications equipment. Tasks may include site acquisition,
         microwave clearing, A&E design, material procurement, construction, and
         construction management. These tasks are described in depth in the
         following sections.

2.1      Site Acquisition

         The process of site acquisition encompasses all activities and
         resources required for locating and leasing (purchasing) suitable
         property for use as a telecommunications facility. Site types may
         include existing facilities, raw land, existing towers, rooftops, etc.

2.1.1    Vendor Roles and Responsibilities

2.1.1.1  Candidate Site Identification

         Site identification will consist of candidate site selection, zoning
         data examination, site review, and site visit coordination.

         Candidate Site Selection - [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

2.1.1.2  Zoning Analysis and Permitting

         It will be determined if certain zoning approvals (zoning
         classification change, special use permit, conditional use permit,
         variance, etc.), building permits, or other permits or formal approvals
         are required for the candidate sites. If no approvals are required,
         this will be so documented. The permitting phase will consist of the
         following elements: zoning strategy, permit applications, and
         miscellaneous.

         Zoning Strategy - [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

         Zoning Exhibits - [***]

2.1.1.5  Other Requirements/Miscellaneous

     .    Coordinate title curative activities and commitment for title
insurance
     .    Review lease exhibits, zoning drawings and construction drawings for
conformity with the leased premise

2.1.2 Owner Roles and Responsibilities

     .    Pay for all permits and fees associated with zoning and permitting
     .    Provide a property lease template and legal review
     .    Provide anticipated/budgeted leasing cost scales
     .    Provide limits for property lease negotiations for contacting
landowners.

2.2       Frequency Clearing

          The frequency clearing process encompasses activities related to the
          negotiation and subsequent movement of incumbent microwave spectrum
          service providers to other spectrum. This movement allows the open
          spectrum to be used by the wireless telecommunications service
          provider.

          [***]

2.2.1     Vendor Roles and Responsibilities

[***]

2.3  Microwave Network Planning and Design

          [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

         [***]

2.3.1  Transmission and Systems Engineering

         Following the microwave network planning and design phase, the
         transmission and systems engineering tasks are performed. The steps
         involved in the transmission and systems engineering phase are an
         iterative process resulting in a network deployment based on the
         network planning and design phase. The primary tasks involved in this
         interactive process are identified below.

         .    Initial map study and reliability analysis to establish frequency
              bands, hardware configuration, and power parameters

         .    Site assessment to ensure that the site is capable of handling the
              antenna and radio systems

         .    Line-of-sight visual inspection and obstacle determination
              (For low frequency, high-density frequency bands, a path survey
              will be conducted, including reflection point inspection.)

         .    Path parameter optimization, including final antenna height
              determination and final hardware configuration conclusion

         .    Routing and capacity planning examination to establish network
              hardware configuration

         .    Establishment of a bill of materials

         .    Path commissioning oversight and operating parameters optimization

2.4 Field Engineering

         The field engineering tasks are broken into two (2) major areas: those
         tasks that are performed by on-site engineers (located at Owner
         premises) and those performed by dispatched path surveyors to the
         field.

         [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

2.5  Frequency Planning, Interference Analysis, and Coordination

         As necessary, interference problems are measured and isolated. [***]

2.6  A&E Design

         Once a site is acquired, it must be engineered to allow for the
         integration of the telecommunications equipment and associated
         facilities. The required equipment to support this system network
         consists of sophisticated electronic assemblies that require suitable
         environmental conditions. In addition, this equipment can be large and
         bulky. Because of the complexity and the physical characteristics of
         the equipment, A&E design must ensure that the resulting environment is
         structurally sound, secure, aesthetically pleasing, and has good
         functionality for many years.

2.6.1 Vendor Roles and Responsibilities

         It will be ensured that all A&E designs are in compliance with Owner,
         Vendor, and industry standards.

2.6.1.1  Site Preparation Guidelines

         Site Preparation Guidelines refer to performance, functionality, and
         fitness for the intended purpose for which the site is to be employed.
         [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

2.6.1.2  Site Information

         The necessary site-specific data required to perform the site services
         will be accumulated. This will include gathering ownership information,
         existing structure and site plans, and specific landowner and zoning
         requirements from the site acquisition team.

         Site surveys will be provided. Site survey services will consist of the
         mutually agreed upon scope and added as an Appendix if selected as a
         service requirement.

         A geo-technical report will be provided. Geo-technical investigations
         will consist of the mutually agreed upon scope and added as an Appendix
         if selected as a service requirement.

         In addition, sites will be visited and data recorded as necessary to
         understand the site-specific design requirements.

2.6.1.3  Construction Drawings

         A set of drawings will be prepared that represent the design of the
         site in sufficient detail to submit for building permits and to perform
         construction of the sites. [***] Specific methodologies required for
         the different site types are described below.

2.6.1.3.1  [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[Six Pages of Technical Information Deleted Pursuant to Confidential Treatment
Request]

<PAGE>

[***]

2.6.1.4  Bill of Materials

         A site-specific bill of materials will be prepared detailing materials
         required for the site construction. The listing will include Vendor
         catalog numbers and quantities of required items. This material listing
         may be provided in a drawing or letter format or may be provided in a
         spreadsheet format to facilitate the procurement process.

2.6.1.5  As-Built Drawings

         The construction drawings will conform to construction records. These
         drawings will be submitted in the latest version of AutoCad or agreed
         upon electronic media as well as hard copy format.

2.6.2    A&E Deliverables

         Vendor will provide the following deliverables: [***]

2.7 Construction and Construction Management

         Completion of construction will allow for the installation of the
         equipment. Site construction encompasses all activities and resources
         required to develop the existing site infrastructure to an adequate
         stage to accept and support the telecommunications equipment. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

2.7.1    Vendor Roles and Responsibilities

         For each site, the Vendor shall coordinate the work of the Vendor's
         personnel, individual suppliers, and subcontractors to ensure on-time
         site completion, that is within budget and meets quality standards. For
         each site, the following items of work are required and will be managed
         by Vendor.

2.7.1.1  [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[Six Pages of Technical Information Deleted Pursuant to Confidential Treatment
Request]

<PAGE>

                 Exhibit F: Installation & Integration Services

The purpose of this document is to clarify the division of responsibility
between Owner and Vendor for the areas of activities necessary for successful
deployment of the system. [***]

Responsibility Matrix

The following section itemizes and identifies the responsibilities of Vendor and
Owner relevant to design of the wireless network.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

1.       INSTALLATION AND INTEGRATION

[Four Pages of Technical Information Deleted Pursuant to Confidential Treatment
Request]

<PAGE>

                                   Exhibit G

RF Optimization Services

Introduction

RF optimization addresses performance validation of the network and support
typically required for commercial launch. During this stage of system
deployment, equipment and site configuration parameters including PN offset
plans, neighbor lists, antenna orientations, and tilts can be adjusted in the
interest of gaining maximum transmission and call-handling benefits from the
network and its physical infrastructure. During optimization of the network,
performance data including Frame Error Rate (FER), call origination statistics,
and drop call statistics are collected to measure the performance of the
network.

Owner intends to launch markets according to aggressive schedules. Meeting
targeted on-air dates is critical to Owner's success. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                       Table 1. RF Optimization Services
                          Responsibility Matrix (SOW)
       (Owner and Vendor will mutually agree on responsibility matrix.)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                Owner               Vendor
-----------------------------------------------------------------------------------------------------------------
   No.                           RF Optimization                         Activity     Cost     Activity   Cost
-----------------------------------------------------------------------------------------------------------------
                                                                           Resp.      Resp.     Resp.     Resp.
-----------------------------------------------------------------------------------------------------------------
<S>        <C>                                                           <C>          <C>      <C>        <C>
1.0        RF Design Audit and Information Transfer

------------------------------------------------------------------------------------                     --------
</TABLE>

[Eighteen Pages of Technical Information Deleted Pursuant to Confidential
Treatment Request]

<PAGE>

                                   Exhibit H

Network Management

Ericsson's Network Management services are aimed at the maintenance, performance
improvement, and management of customer networks. Ericsson is pleased to offer
the following

 [Thirty-Four Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]

<PAGE>

                                   Exhibit I

Performance Monitoring and Analysis Capabilities

The CMS11 Product family follows the Telecommunications Management Network (TMN)
model.

The following diagram illustrates Ericsson's OMC solution following
International Telecommunications Union (ITU) Telecommunications Management
Network (TMN) standards.

  [Fifty-One Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]

<PAGE>

                                Exhibit J: OA&M

General

This document describes the product Radio Access Network Operation Support,
RANOS. RANOS is a set of software packages specially designed for handling the
day-to-day operation and maintenance tasks of an Ericsson CDMA2000 Radio Access
Network (CDMA2000 RAN). RANOS provides support for the execution of management
tasks on a CDMA2000 RAN and provides interfaces for flexible transfer of
information from Network Elements to the Network Management layer.

The complete Operation and Maintenance system is built on three cornerstones:

          .    Element Management in the traffic nodes (RBS and RNC)

          .    RANOS

          .    Tools for Radio Access Management (TRAM)

RANOS is an optional product within the Ericsson CDMA2000 RAN offer.

 [Twenty-Six Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]

<PAGE>

                                   Exhibit K

Spares Requirement

[***]

Vendor's recommended spare parts packages are based on a mean time between
failure (MTBF) rate. From the MTBF, a steady state failure rate is calculated.
Vendor then takes the lead time necessary to get a component for that Equipment
from the factory and determines spares levels required for that duration of
time. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                   Exhibit L

Order Process

1.  Forecasts

Owner shall provide forecasts to Vendor of Owner's projections for Products and
Service upon Vendor's request, but no more frequently than every 3 months
(regardless of whether any Purchase Order is issued). The written forecasts
("Forecasts") shall specify (i) Owner's estimates of the quantity of each
category of Products and Services that it intends to order during the six (6)
months following the date of such Forecast, and (ii) the configuration of each
category of Products and Services that it is ordering during the six (6) months
following the date of such Forecast. If Owner does not specify a configuration
for the Products, the configuration shall be deemed to be the standard
configuration for such Products. Forecasts are provided for planning purposes
only. These forecasts do not obligate Owner for any purchases.

2.  Purchase Orders

Purchase Orders shall specify the quantity of each type or model of Products,
Services or other items of Work to be purchased and the date or dates on which
such Products, Services or other items of Work are required to be delivered to
Owner, as well as any other information reasonably necessary for Vendor to
fulfill the order. Each Purchase Order shall be submitted to the Vendor at 6455
Lusk Boulevard, San Diego, CA 92121, or other designated location of Vendor in
the continental United States designated to Owner in writing by Vendor.

    [Three Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]

<PAGE>

                                   Exhibit M

                System Description and Equipment Specifications

1  Scope

This document is an introduction to the Ericsson [*] Product as it is to be
deployed for Cricket Communications 1900 MHz PCS wireless systems in various
locations in the United States.

2  Network Architecture

[***] The system product consists of the following nodes:

 .  BSC
 .  RBS
 .  AXE MSC
[***]

Each of these system nodes is described in detail elsewhere within the Exhibits
of this contract. [***]

Also shown are a number of mobile stations, denoted by MS, to show the
architectural relationship between mobile stations and the System product. [***]

Figure 2-1 shows the key communications and signaling interfaces between system
nodes [*] as well as network management logical interfaces (M). The BSC-BSC
interface is provided to support handoff between calls

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

supported by more than a single BSC.

    [Eight Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]

<PAGE>

                                  Exhibit N:

                    Outage Event Definition and Resolution

The Owner shall indicate a fault or a problem related to the system through a
designated support center where a customer service request (CSR) will be opened.
The Vendor will respond with an Answer with appropriate information about the
reported problem. Corrective actions, if appropriate, are delivered as system
updates.

Vendor will provide an 800 hot-line telephone service for direct telephone
support to Owner. This service will be available twenty-four (24) hours a day,
seven (7) days a week.

The Owner and the Vendor will together agree to one of the following four
priority levels, using the descriptions below.

The following table defines the outage events and resolution objectives:

[Two Pages of Technical Information Deleted Pursuant to Confidential Treatment
                                   Request]

<PAGE>

                              Exhibit O: Training

This exhibit provides a general overview of [*]. [***]

CDMA System Training

Vendor currently offers the following training programs, each designed to
provide the student with a usable package of knowledge and skills:

          .  CDMA Technology Program. Teaches students the concepts of CDMA
             technology. Course numbers in this program use an ECT prefix.

          .  CDMA System Program. Trains personnel on Vendor CDMA system
             operation and maintenance. Course numbers in this program use an
             EWP prefix.

Logistics

All technology and product training is held at Vendor's [*] facility. Some
lecture-only classes, such as those prefixed with ECT, can be conducted at Owner
sites and are addressed on a case-by-case basis. Vendor offers customized class
dates to meet Owner requirements. Start dates are addressed on a case-by-case
basis.

All presentations and training documentation are developed in English. [***]

Entry-Level Skills Required for Students

Vendor training courses are designed for individuals knowledgeable in basic
telecommunications and wireless communications system concepts including radio
transmission, digital signal formats, basic telephony, and switching concepts.
To attend CDMA system classes (EWP-series), students should be computer literate
and have familiarity with using a Graphical User Interface (GUI) computer
environment. All personnel attending training must be fluent in English.

Technicians attending training courses should have a technical degree or
technical experience servicing wireless communications equipment. They should
have operational knowledge of standard test equipment, such as:

          .  Oscilloscope

          .  Power Meter

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

          .  Spectrum analyzers

          .  Protocol analyzers

Technicians should also have basic knowledge of the following subjects:

          .  Electronics

          .  Cellular technology

          .  RF transmitting/receiving principles

          .  Digital/analog signal processing

          .  T1/E1 transmission basics

          .  Multiplexer equipment

          .  UNIX commands (structure and usage)

Curriculum

The following sections identify the course curriculum overview and curriculum
requirements for each course offered for customer training. Table lists course
name, course number, duration, and prerequisites.

                           Table 1. Course Listings

     --------------------------------------------------------------------
         Course Name      Course #      Duration       Prerequisites
     --------------------------------------------------------------------

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

Table 2 provides recommended course information based on audience requirements.

Table 2. Recommended Audiences

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

[***]

Course Descriptions

The following subsections provide detailed course descriptions including title,
course number, audience, course description, objectives, and media used in each
course. Course schedules, content, and duration are subject to change.

  [Seventeen Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                   Exhibit P

Documentation

Introduction

This section defines customer documentation to be delivered to Owner by Vendor
under the terms of this Contract. Vendor is committed to providing customers
with a complete and accurate documentation suite at time of commercial software
delivery for each product release, which allows the customer to prepare sites,
install, commission, operate, administer, and maintain its systems. As a
standard, Vendor provides to Owner copies of the following documentations in
quantities as reasonably required on CD-ROM as part of the product deliverable
in English.

BSS documentation for new site installations

O&A document kit ships with [*]

CMS11 BSC product document kit ships with [*]

RB11 XX document kit ships for every [*]

BSS documentation for sites upgrading existing systems

Upgrade document kit and 1 O&A document kit per [*]

CMS11 BSC product document kit ships per [*]

RBS11 XX document kit ships for every [*]

Documentation Distribution

Customer documentation will be provided in Compact Disk-Read Only Memory (CD-
ROM) format. Cell equipment documentation will be supplied on a CD-ROM
containing all documentation for a specific Vendor product release.
Documentation contained in the Vendor compact disk provides access to each
manual in a searchable .pdf, allowing search and retrieval of information within
a document. Documents may be printed directly from the CD-ROM or downloaded.

All Vendor documentation is copyrighted and may not be copied for internal or
external customer use.

Customer Documentation Suite

Documentation that is provided to Owner in CD-ROM format will have the documents
listed below, at the document level. If requested by Owner, paper format
documentation will be provided in documentation kits as: Operation and
Administration Kit, RBS11 XX Product Kit, CMS11 BSC Product Kit, and X.X Upgrade
Kit.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

CMS11 O&A Documentation

--------------------------------------------------------------------------------
Glossary and Acronyms                              Reference guide
--------------------------------------------------------------------------------
Advanced Operating Procedures User Guide           User guide
--------------------------------------------------------------------------------
Log Management Reference Manual                    Reference guide
--------------------------------------------------------------------------------
BSM Administrative Procedures User Guide           User guide
--------------------------------------------------------------------------------
BSM Scripting Language Reference Manual            Reference guide
--------------------------------------------------------------------------------
Command Line Interface Reference Manual            Reference guide
--------------------------------------------------------------------------------
Configuration Management Reference Manual          Reference guide
--------------------------------------------------------------------------------
Fault Management Reference Manual                  Reference guide
--------------------------------------------------------------------------------
Fault Tables Reference Manual                      Reference guide
--------------------------------------------------------------------------------
Getting Started User Guide                         User guide
--------------------------------------------------------------------------------
Network Parameter Settings Guidelines Reference    Reference guide
Manual
--------------------------------------------------------------------------------
Operation and Administration Fundamentals User     User guide
Guide
--------------------------------------------------------------------------------
Performance Management Reference Manual            Reference guide
--------------------------------------------------------------------------------
Routine Operating Procedures User Guide            User guide
--------------------------------------------------------------------------------
System Overview                                    Reference guide
--------------------------------------------------------------------------------

Note: This document list represents the CMS11 O&A Documentation Kit for product
Release [*]. Documentation Kit contents may change between now and delivery of
commercial software as required to accurately document commercial product
shipped to Owner. Documentation delivered at commercial release will reflect
actual Documentation Kit required for CMS11 O&A.

CMS11 Upgrade Documentation

--------------------------------------------------------------------------------
System Upgrade Procedures                          Procedure
--------------------------------------------------------------------------------
System Upgrade Checklist                           Checklist
--------------------------------------------------------------------------------

Note: This document list represents the CMS 11 BSC Upgrade Kit for product
Release [*]. Documentation Kit contents may change between now and delivery of
commercial software as required to accurately document commercial product
shipped to Owner. Documentation delivered at commercial release will reflect
actual Documentation Kit required for CMS11 BSC Upgrade Kit.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

CMS 11 BSC Product Documentation

--------------------------------------------------------------------------------
Site Preparation Guidelines                 Procedure
--------------------------------------------------------------------------------
Site Preparation Guidelines Checklist       Checklist
--------------------------------------------------------------------------------
Site Survey                                 Procedure
--------------------------------------------------------------------------------
Site Acceptance History                     Checklist
--------------------------------------------------------------------------------
Site Log Book                               Reference
--------------------------------------------------------------------------------
Installation Manual                         Procedure
--------------------------------------------------------------------------------
Installation Checklist                      Checklist
--------------------------------------------------------------------------------
Commissioning Manual                        Procedure
--------------------------------------------------------------------------------
Commissioning Checklist                     Checklist
--------------------------------------------------------------------------------
Maintenance Manual                          Procedure
--------------------------------------------------------------------------------

Note: This document list represents the CMS11 BSC Product Kit for product
Release [*]. Documentation Kit contents may change between now and delivery of
commercial software as required to accurately document commercial product
shipped to Owner. Documentation delivered at commercial release will reflect
actual Documentation Kit required for CMS11 BSC Product Kit.

RBS 11XX Product Documentation

--------------------------------------------------------------------------------
Field Guide                                 Procedure/Reference
--------------------------------------------------------------------------------
Pocket Guide                                Reference
--------------------------------------------------------------------------------
Advanced User Guide                         User Guide
--------------------------------------------------------------------------------

Note: This document list represents the RBS 11XX Product Kit for product Release
[*]. Documentation Kit contents may change between now and delivery of
commercial software as required to accurately document commercial product
shipped to Owner. Documentation delivered at commercial release will reflect
actual Documentation Kit required for RBS Product Kit.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

Documentation Details

Vendor's documentation architecture is organized into three families of
documents:

1.   Operation and Administration documentation. Contains information required
     to operate and administer the system once it is operational. Contains
     reference manuals that provide general overviews of the system and how it
     works, as well as procedural user manuals that detail how different aspects
     of the system should be performed.

2.   Upgrade documentation. Provides procedural information on upgrading a
     system from one product release to the next.

3.   Product documentation. Contains information required to select a product
     site, prepare the site to accept the product, install the product at the
     site, commission the equipment to prepare for service in the system, and
     maintain the product once operational.

Operation and Administration Details

Below is a description of the operation and administration documents typically
provided by Vendor in support of its CMS11 BSC, RBS11 XX, and CMS11 system.
These descriptions provide the purpose and content corresponding to the [*]
Product Release. Document content may change between now and delivery of the
commercial software. Documentation delivered at commercial release will reflect
actual documentation content required for the CMS11 System.

BSC Glossary and Acronyms

Description: Provides a glossary and list of acronyms used in the Operational
and Administration documentation set, and serves as a reference for users that
have questions about terms found in the documentation.

Advanced Operating Procedures Users Guide

Description: Provides information on the step-by-step procedures used by BSM
staff to perform advanced tasks. Tasks covered in this guide include responding
to alarms, assessing system status, maintaining the BSM, reconfiguration, and
optimizing call processing.

Log Management Reference Manual

Description: Provides information on creating custom log templates, reading log
formats, and starting logs within the BSM environment.

BSM Administrative Procedures User Guide

Description: Provides information on the detailed procedures of the staff member
responsible for overall management of the BSM. The tasks covered include setting
up the operator center, managing system security, system backup and restore,
coordinating upgrades and additions, and maintaining procedures.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

BSM Scripting Language Reference Manual

Description: Provides information on advanced system tools capabilities
available to administrators and network engineers through use of the Base
Station Manager's scripting language capability.

Command Line Interface Reference Manual

Description: Provides information on advanced system tools capabilities
available to administrators and network engineers through use of the Base
Station Manager command line interface capability.

Configuration Management Reference Manual

Description: Provides information on how to set initial attributes or modify
existing attributes of the CMS11 BSC and RBS 1106 equipment using [*] through
the BSM.

Fault Management Reference Manual

Description: Provides information on the concepts behind fault management, and
advanced topics such as remapping alarms and alarm paging through the BSM.

Fault Tables Reference Manual

Description: Provides a list of CMS11 system faults.

Getting Started Users Guide

Description: Provides a basic overview of the BSM environment and common
procedures used at the BSM to perform more complex tasks described elsewhere in
the O&A documentation. Includes basic procedures for using each operator
interface: the [*].

Network Parameter Setting Guidelines Reference Manual

Description: Provides information on the configurable parameters used in the
system. The emphasis is on parameters that affect system performance.
Information includes definition, type, subsystem, range, recommended settings,
and setting tradeoffs for parameters.

Operation and Administration Fundamentals User Guide

Description: Provides information regarding tools used by BSM staff to operate
the system. The focus of this guide is how to operate each tool available in the
operator interfaces.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

Performance Management Reference Manual

Description: Provides information outlining resources and guidelines for using
the BSM to manage system performance. Includes conceptual and detailed
descriptions of data collection, logging, analysis, and management tasks related
to system performance.

Routine Operating Procedures User Guide

Description: Provides information on step-by-step procedures used by BSM staff
to perform routine tasks. Tasks covered by this guide include responding to
alarms, assessing system status, maintaining the BSM, reconfiguration, and
optimizing call processing.

System Overview

Description: Provides an introduction to the BSM's role in the CDMA cellular
land network. Includes descriptions of physical components and functional
structure of the BSM, concept of operations, and structure of the O&A
documentation set.

Upgrade Documentation Details

Below is a description of the upgrade documents provided by Vendor in support of
the CMS11 BSC, RBS [*], and CMS11 System. These descriptions cover the
anticipated purpose and content corresponding to the [*] Product Release.
Document content may change between now and delivery of commercial software.
Documentation delivered at commercial release will reflect actual documentation
content required for the CMS11 System.

System Upgrade Procedures

Description: Contains detailed procedural descriptions of the steps necessary to
upgrade a system running a previous product software release to the latest
version of software. Includes information on planning, performing, and testing
at various steps to assure that a stable operational environment is achieved
after the upgrade.

System Upgrade Checklist

Description: Provides upgrade staff with a detailed checklist to assure that
critical processes have been performed, record key system parameters, and
provide a final sign-off mechanism for a system upgrade.

CMS 11 BSC Product Documentation Details

Below is a description of the documents provided by Vendor in support of the
CMS11 BSC. These descriptions cover the anticipated purpose and content
corresponding to the [*] Product Release. Document content may change between
now and delivery of commercial software. Documentation delivered at commercial
release will reflect actual documentation content required for the CMS11 BSC.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
<PAGE>

Site Preparation Guidelines

Description: Provides information on construction and modification of facilities
to prepare them to accept the installation of CMS11 BSC equipment. Describes
facilities requirements that must be in place prior to the installation stage of
equipment deployment.

Site Preparation Guidelines Checklist

Description: Provides a detailed checklist to assure that critical processes
have been performed, record key site information, and provide a final sign-off
mechanism for site preparation.

Site Survey

Description: Tool to aid Vendor engineers and customer representatives in
documenting site characteristics for the prospective installation of CMS11 BSC
equipment. Includes site access and survey details, internal site requirements,
GPS antenna details, equipment rack installation details, and network management
center installation details.

Site Acceptance History

Description: Three-ring binder provided to Vendor field engineers and Owner
representatives as a location to collect and store information gathered during
preparation and installation of CMS11 BSC equipment at a site.

Site Log Book

Description: Resides at the CMS11 BSC site and is used to record information
about CMS11 BSC configuration, CCA details, maintenance performed, and other
information that is needed for historical understanding of the CMS11 BSC
installed at a site.

Installation Manual

Description: Provides a sufficient level of technical reference data to allow a
knowledgeable technician to install CMS11 BSC equipment. Details include GPS
antenna installation; rack installation; power, grounding and cabling; and
hardware installation. Provides instruction for preparing the equipment for
loading of standard software for system commissioning.

Installation Checklist

Description: Provides a detailed checklist to assure that critical processes
have been performed, record key information, and provide a final sign-off
mechanism for CMS11 BSC installation.

Commissioning Manual

Description: Provides sufficient level of technical reference data to allow a
knowledgeable field engineer to commission CMS11 BSC equipment. Details include
CDSU configuration, backhaul troubleshooting and testing, jumpstart and ethernet
procedures, BSM procedures, and software
<PAGE>

download procedures. Provides instruction for preparing the equipment for
loading of commercial software.

Commissioning Checklist

Description: Provides a detailed checklist to assure that critical processes
have been performed, record key information, and provide a final sign-off
mechanism for a CMS 11 BSC commissioning.

Maintenance Manual

Description: Provides a technical reference for maintenance, repair,
troubleshooting, configuration, and operational testing of the CMS11 BSC after
the system is operational. Provides a sufficient level of technical reference
data to allow a knowledgeable technician to isolate and repair the majority of
equipment faults of an unanticipated nature. In addition, the manual provides
information on periodic maintenance procedures and field replacement of faulty
components.

RBS 1106 BSC Product Documentation Details

Below is a description of the documents provided by Vendor in support of the RBS
[*]. These descriptions cover the anticipated purpose and content corresponding
to the [*] Product Release. Document content may change between now and delivery
of the commercial software. Documentation delivered at commercial release will
reflect actual documentation content required for the RBS [*].

Field Guide

Description: Provides all information necessary to identify and prepare a site,
install, commission, and maintain Vendor's RBS [*] product. This compact
document provides the information a field engineer or cell technician will
require for basic field needs on this product.

Pocket Guide

Description: Pocket guide containing summary information from the field guide to
aid field personnel familiar with the RBS [*] product as a reference source.

Advanced Users Guide

Description: Provides advanced users with a reference document to conduct
advanced troubleshooting and configuration of the RBS [*] product in the field.

MSC Documentation

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.<PAGE>

                                                                   EXHIBIT 10.34
================================================================================

                               CREDIT AGREEMENT

                                  dated as of

                               October 20, 2000

                                     among

                     CRICKET COMMUNICATIONS HOLDINGS INC.,

                         CRICKET COMMUNICATIONS INC.,

                           The Lenders Party Hereto,

                                      and

                              ERICSSON CREDIT AB,

                            as Administrative Agent

================================================================================

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                       Page
                                                                                       ----
<S>                                                                                    <C>
ARTICLE I  Definitions.................................................................   1
     Section 1.01    Defined Terms.....................................................   1
     Section 1.02    Classification of Loans and Borrowings............................  25
     Section 1.03    Terms Generally...................................................  25
     Section 1.04    Accounting Terms; GAAP; Consolidation of License Subsidiaries.....  25

ARTICLE II  The Loans..................................................................  26
     Section 2.01    Commitments.......................................................  26
     Section 2.02    Loans and Borrowings..............................................  26
     Section 2.03    Requests for Borrowings...........................................  27
     Section 2.04    Funding of Borrowings.............................................  27
     Section 2.05    Interest Elections................................................  28
     Section 2.06    Termination and Reduction of Commitments..........................  29
     Section 2.07    Repayment of Loans; Evidence of Debt..............................  30
     Section 2.08    Amortization of Loans.............................................  31
     Section 2.09    Prepayment of Loans...............................................  31
     Section 2.10    Fees..............................................................  34
     Section 2.11    Interest..........................................................  34
     Section 2.12    Alternate Rate of Interest........................................  35
     Section 2.13    Increased Costs...................................................  35
     Section 2.14    Break Funding Payments............................................  36
     Section 2.15    Taxes.............................................................  37
     Section 2.16    Payments Generally; Pro Rata Treatment; Sharing of SetOffs........  38
     Section 2.17    Mitigation Obligations; Replacement of Lenders....................  39

ARTICLE III  Representations and Warranties............................................  40
     Section 3.01    Organization; Powers..............................................  40
     Section 3.02    Authorization; Enforceability.....................................  40
     Section 3.03    Governmental Approvals; No Conflicts..............................  40
     Section 3.04    Financial Condition; No Material Adverse Change...................  41
     Section 3.05    Properties and Licenses...........................................  41
     Section 3.06    Litigation and Environmental Matters..............................  42
     Section 3.07    Compliance with Laws and Agreements...............................  42
     Section 3.08    Investment and Holding Company Status.............................  42
     Section 3.09    Taxes.............................................................  43
     Section 3.10    ERISA.............................................................  43
     Section 3.11    Disclosure........................................................  43
     Section 3.12    Subsidiaries......................................................  43
     Section 3.13    Insurance.........................................................  43
     Section 3.14    Labor Matters.....................................................  43
     Section 3.15    Purchase Agreement................................................  44
     Section 3.16    Year 2000.........................................................  44
     Section 3.17    Certain Matters Relating to ChaseTel..............................  44
</TABLE>
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)
<TABLE>
<CAPTION>
                                                                                       Page
                                                                                       ----
<S>                                                                                    <C>
     Section 3.18    Other Credit Agreements...........................................  44
     Section 3.19    Eligible Secured Debt.............................................  45

ARTICLE IV  Conditions.................................................................  45
     Section 4.01    Effective Date....................................................  45
     Section 4.02    Initial Availability Date.........................................  45
     Section 4.03    Each Borrowing....................................................  47

ARTICLE V  Affirmative Covenants.......................................................  48
     Section 5.01    Financial Statements and Other Information........................  48
     Section 5.02    Notices of Material Events........................................  50
     Section 5.03    Information Regarding Collateral..................................  51
     Section 5.04    Existence; Conduct of Business....................................  51
     Section 5.05    Payment of Obligations............................................  51
     Section 5.06    Maintenance of Properties.........................................  52
     Section 5.07    Insurance.........................................................  52
     Section 5.08    Books and Records; Inspection Rights..............................  52
     Section 5.09    Compliance with Laws and Agreements...............................  53
     Section 5.10    Use of Proceeds...................................................  53
     Section 5.11    Additional Subsidiaries...........................................  53
     Section 5.12    Further Assurances................................................  53
     Section 5.13    Casualty and Condemnation.........................................  54
     Section 5.14    Interest Rate Protection..........................................  54
     Section 5.15    Intercompany Agreements...........................................  55
     Section 5.16    Agreement Regarding FCC Licenses..................................  55
     Section 5.17    Subordination of ChaseTel Earnout.................................  55

ARTICLE VI  Negative Covenants.........................................................  55
     Section 6.01    Indebtedness; Preferred Stock.....................................  55
     Section 6.02    Liens.............................................................  57
     Section 6.03    Fundamental Changes; Corporate Structure..........................  58
     Section 6.04    Investments, Loans, Advances, Guarantees and Acquisitions;
                       Asset Sales.....................................................  59
     Section 6.05    Hedging Agreements................................................  60
     Section 6.06    Restricted Payments...............................................  60
     Section 6.07    Transactions with Affiliates......................................  61
     Section 6.08    Restrictive Agreements............................................  62
     Section 6.09    Repayment of Indebtedness.........................................  62
     Section 6.10    Intercompany Agreements...........................................  62
     Section 6.11    Limitation on SaleLeaseback Transactions..........................  62
     Section 6.12    Equipment Site Interests and Real Estate Subsidiaries.............  63
     Section 6.13    FCC Licenses and License Subsidiaries.............................  63
     Section 6.14    Amendment of Material Documents...................................  63
     Section 6.15    Capital Expenditures..............................................  63
</TABLE>

                                      ii
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                             Page
                                                                                             ----
<S>                                                                                          <C>
     Section 6.16    Covered POPS..........................................................    64
     Section 6.17    Subscribers                                                               64
     Section 6.18    Total Indebtedness to Total Capitalization............................    65
     Section 6.19    Total Indebtedness to Annualized EBITDA...............................    65
     Section 6.20    Consolidated EBITDA to Cash Interest Expense..........................    66
     Section 6.21    Minimum Gross Revenue.................................................    66
     Section 6.22    Activities of Holdings................................................    67
     Section 6.23    Fiscal year and Fiscal Quarters.......................................    67
     Section 6.24    Additional Requirements Regarding Permitted Indebtedness and Liens....    67

ARTICLE VII  Events of Default.............................................................    68

ARTICLE VIII  The Agents...................................................................    70

ARTICLE IX  Miscellaneous..................................................................    72
     Section 9.01    Notices...............................................................    72
     Section 9.02    Waivers; Amendments...................................................    73
     Section 9.03    Expenses; Indemnity; Damage Waiver....................................    74
     Section 9.04    Successors and Assigns................................................    75
     Section 9.05    Survival..............................................................    78
     Section 9.06    Counterparts; Integration; Effectiveness..............................    78
     Section 9.08    Right of Setoff.......................................................    79
     Section 9.09    Governing Law; Jurisdiction; Consent to Service of Process............    79
     Section 9.10    WAIVER OF JURY TRIAL..................................................    79
     Section 9.11    Headings..............................................................    80
     Section 9.12    Confidentiality.......................................................    80
     Section 9.13    Interest Rate Limitation..............................................    80
     Section 9.14    Amendments to Other Credit Agreements.................................    81
</TABLE>

                                      iii
<PAGE>

     Schedules

     Schedule 2.01       Commitments
     Schedule 3.05A      Real Property
     Schedule 3.05B      Licenses
     Schedule 3.06       Disclosed Matters
     Schedule 3.12       Subsidiaries
     Schedule 3.13       Insurance
     Schedule 6.01       Existing Indebtedness
     Schedule 6.02       Existing Liens
     Schedule 6.08       Existing Restrictions

     Exhibits

     Exhibit A      Form of Collateral Agency Agreement
     Exhibit B      Form of Amendment to Indemnity, Subrogation and Contribution
                    Agreement
     Exhibit C      Form of Parent Agreement
     Exhibit D      Form of Parent Guarantee
     Exhibit E      Form of Amendment to Subordination Agreement
     Exhibit F      Form of Perfection Certificate
<PAGE>

     CREDIT AGREEMENT dated as of October 20, 2000 among CRICKET COMMUNICATIONS
HOLDINGS, INC., a Delaware corporation, CRICKET COMMUNICATIONS INC., a Delaware
corporation, the LENDERS party hereto, and ERICSSON CREDIT AB, as Administrative
Agent.

     The parties hereto agree as follows:

                                   ARTICLE I
                                   ---------

                                  Definitions
                                  -----------

     Section 1.01  Defined Terms. As used in this Agreement, the following terms
                   -------------
have the meanings specified below:

     "ABR", when used in reference to any Loan or Borrowing, refers to the fact
      ---
that such Loan, or the Loans comprising such Borrowing, are bearing interest at
a rate determined by reference to the Alternate Base Rate.

     "Adjusted LIBO Rate" means, with respect to any LIBOR Borrowing for any
      ------------------
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate.

     "Administrative Agent" means Ericsson, in its capacity as administrative
      --------------------
agent for the Lenders hereunder.

     "Administrative Questionnaire" means an administrative questionnaire in a
      ----------------------------
form supplied by the Administrative Agent.

     "Affiliate" means, with respect to a specified Person, another Person that
      ---------
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.

     "Agents" means the Administrative Agent and the Collateral Agent.
      ------

     "Alternate Base Rate" means, for any day, a rate per annum equal to the
      -------------------
greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus  1/2 of 1%.  Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

     "Annualized EBITDA" means, as of any date, (a) Consolidated EBITDA for the
      -----------------
period of two consecutive fiscal quarters ended on such date (or, if such date
is not the last day of a fiscal quarter, then for the period of two consecutive
fiscal quarters most recently ended prior to such date), multiplied by (b) two.

     "Applicable Margin" means, for any day, the applicable rate per annum set
      -----------------
forth below under the caption "ABR Margin" or "Eurodollar Margin", as the case
may be, based on the Leverage Ratio as of the most recent determination date:
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                           Leverage Ratio              ABR Margin            Eurodollar Margin
                                           --------------              ----------            -----------------
------------------------------------------------------------------------------------------------------------------
<S>                                        <C>                         <C>                   <C>
Category 1           less than or equal to  4.0 to 1.0                   2.50%                     3.50%
------------------------------------------------------------------------------------------------------------------
Category 2                                * 4.0 to 1.0 but               2.75%                     3.75%

                     less than or equal to  6.0 to 1.0
------------------------------------------------------------------------------------------------------------------
Category 3                                * 6.0 to 1.0 but               3.00%                     4.00%

                     less than or equal to 10.0 to 1.0
------------------------------------------------------------------------------------------------------------------
Category 4                               * 10.0 to 1.0                   3.25%                     4.25%
------------------------------------------------------------------------------------------------------------------
</TABLE>

* Greater than

For purposes of the foregoing, (a) the Leverage Ratio shall be determined as of
the end of each fiscal quarter of the Borrower's fiscal year based upon the
Borrower's consolidated financial statements delivered pursuant to Section
5.01(a) or (b) and (b) each change in the Applicable Margin resulting from a
change in the Leverage Ratio shall be effective during the period commencing on
and including the date of delivery to the Administrative Agent of such
consolidated financial statements indicating such change and ending on the date
immediately preceding the effective date of the next such change; provided that
                                                                  --------
the Leverage Ratio shall be deemed to be in Category 4 (i) at any time that an
Event of Default has occurred and is continuing or (ii) if the Borrower fails to
deliver the consolidated financial statements required to be delivered by it
pursuant to Section 5.01(a) or (b) within the period specified therein for
delivery thereof, during the period from the expiration of the period specified
therein for delivery thereof until such consolidated financial statements are
delivered.

     "Assignment and Acceptance" means an assignment and acceptance entered into
      -------------------------
by a Lender and an assignee (with the consent of any party whose consent is
required by Section 9.04), and accepted by the Administrative Agent, in a form
approved by the Administrative Agent.

     "Availability Period" means the period from and including the Initial
      -------------------
Availability Date to but excluding the earlier of the Availability Termination
Date and the date of termination of the Commitments.

     "Availability Termination Date" means the date that is 36 months after the
      -----------------------------
Effective Date.

     "Board" means the Board of Governors of the Federal Reserve System of the
      -----
United States of America.

     "Borrower" means Cricket Communications, Inc., a Delaware corporation.
      --------

     "Borrower Pledge Agreement" means the Borrower Pledge Agreement dated as of
      -------------------------
November 24, 1999, among Holdings, the Borrower, the Subsidiary Loan Parties and
the

                                       2
<PAGE>

Collateral Agent, as supplemented on or before the date hereof, true and correct
photocopies of which agreement and supplements have been delivered to the
Administrative Agent.

     "Borrowing" means a Loan or group of Loans of the same Type, made,
      ---------
converted or continued on the same date and, in the case of LIBOR Loans, as to
which a single Interest Period is in effect.

     "Borrowing Request" means a request by the Borrower for a Borrowing in
      -----------------
accordance with Section 2.03.

     "BTA" means a Basic Trading Area, as defined in Rand McNally Commercial
      ---
Atlas and Marketing Guide and used by the Federal Communications Commission in
connection with the award of wireless telecommunications licenses.

     "Business Day" means any day that is not a Saturday, Sunday or other day on
      ------------
which commercial banks in New York City are authorized or required by law to
remain closed; provided that, when used in connection with a LIBOR Loan, the
               --------
term "Business Day" shall also exclude any day on which banks are not open for
      ------------
dealings in dollar deposits in the London interbank market.

     "Business Plan" means, for any fiscal year, the business plan of the
      -------------
Borrower and the Subsidiaries for such fiscal year.

     "Capital Expenditures" means, for any period, (a) the additions to
      --------------------
property, plant and equipment and other capital expenditures of the Borrower and
its Subsidiaries that are (or would be) set forth in a consolidated statement of
cash flows of the Borrower for such period prepared in accordance with GAAP and
(b) Capital Lease Obligations incurred by the Borrower and its Subsidiaries
during such period.

     "Capital Lease Obligations" of any Person means the obligations of such
      -------------------------
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

     "Cash Interest Expense" means, for any period, the sum of (a) interest
      ---------------------
expense of the Borrower and the Subsidiary Loan Parties for such period,
determined on a consolidated basis in accordance with GAAP, excluding (to the
extent otherwise included therein) (i) amortization of debt discounts and loan
fees, (ii) interest expense in respect of any Indebtedness that constitutes a
Primary Subordinated Obligation and (iii) any other interest that is not
required to be paid during such period or within one year after the end of such
period, plus (b) the aggregate amount of Restricted Payments made during such
period pursuant to clause (d) or (e) of Section 6.06.

     "Change in Control" means (a) the acquisition of ownership, directly or
      -----------------
indirectly, beneficially or of record, by any Person other than Holdings of any
Equity Interest in the Borrower, (b) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person other than the Parent of
any Equity Interest in any License Subsidiary, (c) the sale,

                                       3
<PAGE>

transfer or other disposition by the Parent of any Equity Interest in Holdings,
(d) the failure by the Parent to own, beneficially and of record, Voting Stock
of Holdings representing at least 51% of the combined voting power of all Voting
Stock of Holdings, (e) the failure by the Parent to have the ability (without
the consent or approval of any other Person) to control the election of at least
a majority of the board of directors of Holdings, (f) the acquisition of
beneficial ownership (within the meaning of Rule 13d3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934), directly or
indirectly, by any Person (or two or more Persons acting in concert), other than
the Parent, of Voting Stock of Holdings (or other securities convertible into
such Voting Stock) representing 15% or more of the combined voting power of all
Voting Stock of Holdings, (g) the acquisition of beneficial ownership (within
the meaning of such Rule 13d3), directly or indirectly, by any Person (or two or
more Persons acting in concert) of Voting Stock of the Parent (or other
securities convertible into such Voting Stock) representing 20% or more of the
combined voting power of all Voting Stock of the Parent, (h) the failure on any
day of at least a majority of the board of directors of the Parent to be
comprised of (i) individuals who were directors of the Parent as of the later of
the date 18 months prior to such day or September 1, 1999, and (ii) individuals
whose nomination as directors was approved by individuals who were directors of
the Parent as of the later of the date 18 months prior to such day or September
1, 1999, or (i) the acquisition, by contract or otherwise, of the power to
exercise, directly or indirectly, Control of the Parent by any Person (or two or
more Persons acting in concert), or the entering into of any contract or
arrangement that, upon consummation, will result in such acquisition of power.
For purposes of the foregoing, "Voting Stock" means Equity Interests issued by a
Person the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by
the happening of such contingency. The grant by the Parent of a Lien on any
Equity Interest in Holdings shall not constitute a Change in Control unless and
until any action is taken to exercise remedies in respect of such Lien.

     "Change in Law" means (a) the adoption of any law, rule or regulation after
      -------------
the date of this Agreement, (b) any change in any law, rule or regulation or in
the interpretation or application thereof by any Governmental Authority after
the date of this Agreement or (c) compliance by any Lender (or, for purposes of
Section 2.13(b), by any lending office of such Lender or by such Lender's
holding company, if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after
the date of this Agreement.

     "ChaseTel" means Chase Telecommunications, Inc., a Delaware corporation.
      --------

     "ChaseTel Acquisition" means the purchase of ChaseTel, ChaseTel Licensee
      --------------------
and certain related assets pursuant to the ChaseTel Purchase Agreement.

     "ChaseTel Credit Agreement" means the Credit Agreement dated as of June 26,
      -------------------------
1998, as amended, between ChaseTel and QUALCOMM Incorporated.

     "ChaseTel Earnout" means (a) the obligation to pay the "Earnout Amount" (as
      ----------------
defined in the ChaseTel Purchase Agreement) or (b) any payment made in respect
of such obligation.

                                       4
<PAGE>

     "ChaseTel Indebtedness" means any Indebtedness of ChaseTel existing at the
      ---------------------
time of consummation of the ChaseTel Acquisition, including any Indebtedness
outstanding under the ChaseTel Credit Agreement.

     "ChaseTel Licensee" means ChaseTel Licensee Corp., a Delaware corporation.
      -----------------

     "ChaseTel Purchase Agreement" means the Asset Purchase Agreement dated as
      ---------------------------
of December 24, 1998 among the Parent, Chase Telecommunications Holdings, Inc.,
ChaseTel, Anthony Chase and Richard McDugald, as amended by the letter agreement
dated January 22, 1999, the letter agreement dated February 12, 1999, the letter
agreement dated February 19, 1999, the Third Amendment to Asset Purchase
Agreement dated November 15, 1999 and the letter agreement dated March 17, 2000
among the Parent, the Borrower and Chase Telecommunications Holdings, Inc.

     "Code" means the Internal Revenue Code of 1986, as amended from time to
      ----
time.

     "Collateral" means any and all "Collateral", as defined in any applicable
      ----------
Security Document.

     "Collateral Agency Agreement" means the Collateral Agency and Intercreditor
      ---------------------------
Agreement dated as of November 24, 1999 among the Borrower, the representatives
and unrepresented holders referred to therein and State Street Bank and Trust
Company, as collateral agent, as amended and restated as provided in Section
4.02(k) and as further amended, supplemented or otherwise modified from time to
time.

     "Collateral Agent" means State Street Bank and Trust Company in its
      ----------------
capacity as collateral agent for the Secured Parties (as defined in the
Collateral Agency Agreement) under the Security Documents.

     "Collateral and Guarantee Requirement" means the requirement that:
      ------------------------------------

          (a)  the Collateral Agent shall have received from the parties thereto
a fully executed Collateral Agency Agreement, from the Parent the Parent
Guarantee and from Holdings and each Subsidiary Loan Party either (i) a
counterpart of the Guarantee Agreement duly executed and delivered on behalf of
such Subsidiary Loan Party or (ii) in the case of any Person that becomes a
Subsidiary Loan Party after the Effective Date, a supplement to the Guarantee
Agreement, in the form specified therein, duly executed and delivered on behalf
of such Subsidiary Loan Party;

          (b)  the Collateral Agent shall have received (i) from the Parent a
counterpart of the Parent Pledge Agreement duly executed and delivered on behalf
of the Parent, (ii) from Holdings, the Borrower and each of its Subsidiaries
either (A) a counterpart of the Borrower Pledge Agreement duly executed and
delivered on behalf of Holdings, the Borrower or such Subsidiary, as applicable,
or (B) in the case of any Person that becomes a Subsidiary after the Effective
Date, a supplement to the Borrower Pledge Agreement, in the form specified
therein, duly executed and delivered on behalf of such Subsidiary, and (iii)
from the Borrower and each Subsidiary Loan Party either (a) counterparts of each
of the Security Agreement and the Indemnity, Subrogation and Contribution
Agreement duly executed and delivered on behalf of

                                       5
<PAGE>

the Borrower or such Subsidiary Loan Party, as applicable, or (B) in the case of
any Person that becomes a Subsidiary Loan Party after the Effective Date, a
supplement to each such agreement, in the form specified therein, duly executed
and delivered on behalf of such Subsidiary Loan Party;

          (c)  all outstanding Equity Interests of the Borrower and each
Subsidiary Loan Party owned by or on behalf of any Loan Party shall have been
pledged pursuant to the applicable Pledge Agreement and the Collateral Agent
shall have received certificates or other instruments representing all such
Equity Interests, together with stock powers or other instruments of transfer
with respect thereto endorsed in blank;

          (d)  all Indebtedness of Holdings, the Borrower and each Subsidiary
Loan Party that is owing to any Loan Party (except for Indebtedness of Holdings
that is owing to the Parent) shall be evidenced by a promissory note and shall
have been pledged pursuant to the applicable Pledge Agreement and the Collateral
Agent shall have received all such promissory notes, together with instruments
of transfer with respect thereto endorsed in blank;

          (e)  all documents and instruments, including Uniform Commercial Code
financing statements, required by law or reasonably requested by either Agent to
be filed, registered or recorded to create the Liens intended to be created by
the Security Agreement and perfect such Liens to the extent required by, and
with the priority required by, the Security Agreement, shall have been filed,
registered or recorded or delivered to the Collateral Agent for filing,
registration or recording;

          (f)  the Collateral Agent shall have received (i) counterparts of a
Mortgage with respect to each Mortgaged Property duly executed and delivered by
the record owner of such Mortgaged Property, (ii) a policy or policies of title
insurance issued by a nationally recognized title insurance company insuring the
Lien of each such Mortgage as a valid first Lien on the Mortgaged Property
described therein, free of any other Liens except as expressly permitted by
Section 6.02, together with such endorsements, coinsurance and reinsurance as
either Agent or the Required Lenders may reasonably request, and (iii) such
surveys, abstracts, appraisals, legal opinions and other documents as either
Agent or the Required Lenders may reasonably request with respect to any such
Mortgage or Mortgaged Property; and

          (g)  each Loan Party shall have obtained all consents and approvals
required to be obtained by it in connection with the execution and delivery of
the Guarantee Agreement and all Security Documents to which it is a party, the
performance of its obligations thereunder and the granting by it of the Liens
under such Security Documents.

     "Commitment" means, with respect to each Lender, the commitment, if any, of
      ----------
such Lender to make Loans hereunder during the Availability Period, expressed as
an amount representing the maximum principal amount of the Loans to be made by
such Lender hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.06 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 9.04.  The initial
amount of each Lender's Commitment is set forth on Schedule 2.01, or in the
Assignment and Acceptance pursuant to which such Lender shall have assumed its
Commitment, as applicable.

                                       6
<PAGE>

     "Commitment Fee Rate" means a rate per annum equal to (a) 1.25% until the
      -------------------
aggregate principal amount of Loans made hereunder (whether or not repaid)
equals $165,000,000, (b) 1.00% thereafter, until the aggregate principal amount
of the Loans made hereunder (whether or not repaid) equals $330,000,000 and (c)
0.75% thereafter.

     "Consolidated EBITDA" means, for any period, Consolidated Net Income for
      -------------------
such period (adjusted to exclude all extraordinary items), plus, without
duplication and to the extent deducted from revenues in determining such
Consolidated Net Income, the sum of (a) consolidated interest expense for such
period, (b) consolidated income tax expense for such period, and (c) all amounts
attributable to depreciation and amortization for such period, all as determined
on a consolidated basis in accordance with GAAP.

     "Consolidated Net Income" means, for any period, the net income or loss of
      -----------------------
the Borrower and the Subsidiary Loan Parties for such period determined on a
consolidated basis in accordance with GAAP; provided that there shall be
                                            --------
excluded (a) the income of any Person (other than the Borrower or a Subsidiary
Loan Party) in which any other Person (other than the Borrower or any Subsidiary
or any director holding qualifying shares in compliance with applicable law)
owns an Equity Interest, except to the extent of the amount of dividends or
other distributions actually paid to the Borrower or any of the Subsidiaries
during such period, and (b) the income or loss of any Person accrued prior to
the date it becomes a Subsidiary Loan Party or is merged into or consolidated
with the Borrower or any Subsidiary Loan Party or the date that such Person's
assets are acquired by the Borrower or any Subsidiary Loan Party.

     "Control" means the possession, directly or indirectly, of the power to
      -------
direct or cause the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.
 -----------       ----------

     "Covered POPS" means, at any time, the aggregate number of POPS within the
      ------------
service areas of the facilities that are then owned by the Borrower and its
Subsidiaries and that have been placed in commercial operation.

     "Credit Facility Obligations" means  (a) the principal of and premium, if
      ---------------------------
any, and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise and (b) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) of the Borrower under this
Agreement or any other Loan Document.

     "Default" means any event or condition which constitutes an Event of
      -------
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

     "Disclosed Matters" means the actions, suits and proceedings and the
      -----------------
environmental matters disclosed in Schedule 3.06.

                                       7
<PAGE>

     "Disqualified Stock" means any capital stock of Holdings, the Borrower or
      ------------------
any Subsidiary which by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable or exercisable) or upon the
happening of any event (a) matures or is mandatorily redeemable pursuant to a
sinking fund obligation or otherwise, (b) is convertible or exchangeable for
Indebtedness or Disqualified Stock, (c) requires the payment of dividends other
than dividends payable solely in additional shares of capital stock of Holdings
(other than Disqualified Stock) or (d) is redeemable or subject to required
repurchase at the option of the holder thereof, in whole or in part.

     "dollars" or "$" refers to lawful money of the United States of America.
      -------      -

     "Effective Date" means the date, on or after the date of this Agreement, on
      --------------
which the conditions specified in Section 4.01 are satisfied (or waived in
accordance with Section 9.02).

     "Eligible Assignee" means (a) Telefonaktiebolaget LM Ericsson, Ericsson and
      -----------------
Ericsson Project Finance AB (but, in the case of Ericsson Project Finance AB
only so long as at least 45% of its voting stock is owned by Telefonaktiebolaget
LM Ericsson and/or its subsidiaries), (b) any commercial bank or other financial
institution (including any credit corporation) that, in each case, either (i)
has total assets in excess of $10,000,000,000 (ii) has a combined capital and
surplus and undivided profits in excess of $700,000,000 (iii) has long-term
indebtedness rated BBB or better by S&P or Baa3 or better by Moody's, or
commercial paper having one of the two highest credit ratings obtainable from
S&P or Moody's, or (iv) has an Affiliate that satisfies any of the criteria
described in the foregoing clauses (i), (ii) and (iii), or (c) any fund that is
regularly engaged in making, purchasing or investing in loans or securities that
is controlled by an institution described in clause (b) above or by any other
nationally recognized investment fund manager.

     "Eligible Parent Debt" means Indebtedness of the Parent in respect of debt
      --------------------
securities issued in an underwritten public offering or private placement
pursuant to Rule 144A; provided that (a) such Indebtedness shall not mature, nor
                       --------
shall any scheduled repayment of any principal thereof be due, nor shall such
Indebtedness be subject to any mandatory redemption or required repurchase,
conversion or exchange (whether upon the occurrence of any contingency or
otherwise, but excluding contingent redemption offer provisions in the event of
a "change of control" or "asset sale" that are customary for similar debt
securities), in each case prior to the date that is one year after the Maturity
Date, (b) any covenants, events of default and similar provisions relating
thereto shall be reasonably satisfactory to the Required Lenders, (c) the
obligations of the Parent in respect thereof shall not be Guaranteed by any Loan
Party (except for Holdings) or secured by any Lien (except for a Lien on the
collateral account established to fund interest payments as provided in clause
(d) below) and (d) by its terms, no interest shall be payable in respect of such
Indebtedness (other than (i) by the issuance of additional Eligible Parent Debt
or (ii) out of a cash reserve funded by the Parent from the net proceeds of the
issuance of such Indebtedness in an amount sufficient to pay such cash interest)
prior to October 1, 2003 and (e) the net proceeds of such Indebtedness (other
than the portion, if any, of such net proceeds (i) applied to fund any
collateral account established to fund interest payments as provided above or
(ii) not exceeding [*] to be used to purchase FCC Licenses (either directly as
an asset purchase or as a portion of the consideration for the acquisition of an
entity that owns an

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       8
<PAGE>

FCC License, such portion not to exceed the value of such FCC License) which are
contributed to a License Subsidiary prior to September 30, 2000; provided that
                                                                 --------
all proceeds described in this clause (ii) shall be held in an interest-bearing
account until so used and, to the extent such proceeds and the accrued interest
thereon are not used to purchase FCC Licenses prior to September 30, 2000, such
unused proceeds and accrued interest shall be contributed to the Borrower as
common equity on September 30, 2000) are contributed by the Parent to Holdings
as common equity or are used to repay, in an amount not to exceed $51,000,000, a
promissory note issued by the Parent to Holdings as consideration for the
purchase price of equity in Holdings and then, in each case, contributed by
Holdings to the Borrower as common equity.

     "Eligible Secured Debt" means, without duplication, (a) Indebtedness of the
      ---------------------
Borrower in respect of the Loans, (b) any other Indebtedness for borrowed money
of the Borrower incurred to finance the purchase price of (i) equipment
purchased by the Borrower and its Subsidiaries (other than pursuant to the
Purchase Agreement) for use in their wireless telecommunications and data
networking business and/or (ii) services purchased by the Borrower and its
Subsidiaries (other than pursuant to the Purchase Agreement) related to the
design, construction or installation of their wireless telecommunications and
data networks that incorporate equipment referred to in clause (i) above
(including site acquisition services), (c) any other Indebtedness for borrowed
money of the Borrower incurred to finance payments in respect of fees related to
or interest in respect of Eligible Secured Debt (other than the Loans) or the
purchase price of any FCC License that is acquired by a License Subsidiary and
is to be used in the business of the Borrower and its Subsidiaries after the
purchase thereof (provided that such FCC License is acquired by a License
                  --------
Subsidiary free of any Liens and is not purchased subject to any FCC Debt,
Permitted License Acquisition Debt or other Indebtedness), and (d) any
Indebtedness for borrowed money of the Borrower incurred to refinance
Indebtedness referred to in clause (a), (b) or (c) above in compliance with the
proviso to clause (f) of Section 6.01 (other than clause (v) of such proviso);
provided that:
--------

          (i)   in the case of any Indebtedness described in clause (b) above,
     (A) such Indebtedness is incurred, for equipment, within six months after
     the later of the acquisition, the completion of construction and final
     acceptance or the commencement of full operation of the relevant equipment,
     and, for services, within six months of the completion thereof, (B) the
     principal amount thereof does not exceed 100% of the purchase price of the
     equipment or services (as applicable) financed thereby and (C) such
     equipment becomes Collateral under the Security Agreement upon the purchase
     thereof (free of any Liens other than the Lien of the Security Agreement);

          (ii)  in the case of any Indebtedness described in clause (c) above,
     at the time of and after giving effect to the incurrence of any such
     Indebtedness the aggregate principal amount of all Indebtedness described
     in clause (c) above that has been incurred (on a cumulative basis, whether
     or not such Indebtedness remains outstanding) shall not exceed the sum of
     (A) 50% of the aggregate principal amount of all Indebtedness described in
     clause (b) above that has been incurred (on a cumulative basis, whether or
     not such Indebtedness remains outstanding) at or prior to such time plus
     (B) $100,000,000; provided that Indebtedness incurred in reliance upon
                       --------
     clause (B) shall not be incurred to finance fees related to Eligible
     Secured Debt;

                                       9
<PAGE>

          (iii) in the case of any Indebtedness described in clause (b) or (c)
     above, at the time of and after giving effect to the incurrence of any such
     Indebtedness the aggregate principal amount of all such Indebtedness that
     has been incurred and all Loans that have been incurred (in each case, on a
     cumulative basis, whether or not such Indebtedness or Loans remain
     outstanding) shall not exceed $1,845,000,000;

          (iv)  in the case of any Indebtedness described in clause (b), (c) or
     (d) above, the holder or holders of such Indebtedness (or a duly authorized
     representative thereof on behalf of such holders) shall have become a party
     to the Collateral Agency Agreement as provided therein;

          (v)   in the case of any Indebtedness described in clause (b), (c) or
     (d) above, such Indebtedness is not Guaranteed by any Person (other than
     (A) pursuant to the Guarantee Agreement or (B) Guarantees that also
     Guarantee the Credit Facility Obligations (as defined in the Collateral
     Agency Agreement) equally and ratably) or secured by any Lien (other than
     Liens granted to the Collateral Agent to secure all Eligible Secured Debt
     pursuant to the Security Documents); and

          (vi)  in the case of any Indebtedness described in clause (b), (c) or
     (d) above, (A) the terms and conditions of such Indebtedness shall not be
     less favorable to the Borrower in any material respect than the terms and
     conditions of the Loans and shall not be inconsistent with the terms and
     conditions of the Loans, and (B) at the time of and after giving effect to
     the incurrence of any such Indebtedness, no Default shall have occurred and
     be continuing and the Borrower shall be in compliance with Sections 6.19
     and 6.20 determined on a pro forma basis as of the last day of the most
     recently ended calendar quarter of the Borrower for which financial
     statements are available as though such Indebtedness had been incurred on
     such day.

     "Environmental Laws" means all laws, rules, regulations, codes, ordinances,
      ------------------
orders, decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way
to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or to health
and safety matters.

     "Environmental Liability" means any liability, contingent or otherwise
      -----------------------
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of any Loan Party directly or indirectly resulting
from or based upon (a) violation of any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

     "Equipment Site Interest" means any ownership interest in, or right, title
      -----------------------
or interest under any lease, agreement or other arrangement providing for the
right to use, any site upon or at which any infrastructure equipment owned by
the Borrower or any Subsidiary is or is to be located.

                                       10
<PAGE>

     "Equity Interests" means shares of capital stock, partnership interests,
      ----------------
membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person.

     "Ericsson" means Ericsson Credit AB.
      --------

     "Ericsson Lenders" means, at any time, any Person identified in clause (a)
      ----------------
of the definition of Eligible Assignee and any other Affiliates of
Telefonaktiebolaget Ericsson that are Lenders at such time.

     "Ericsson Wireless" means Ericsson Wireless Communications Inc., a Delaware
      -----------------
corporation

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
      -----
amended from time to time.

     "ERISA Affiliate" means any trade or business (whether or not incorporated)
      ---------------
that, together with the Borrower, is treated as a single employer under Section
414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under Section 414 of
the Code.

     "ERISA Event" means (a) any "reportable event", as defined in Section 4043
      -----------
of ERISA or the regulations issued thereunder with respect to a Plan (other than
an event for which the 30 day notice period is waived); (b) the existence with
respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

     "Event of Default" has the meaning assigned to such term in Article VII.
      ----------------

     "Excess Cash Flow" means, for any fiscal year of the Borrower, the sum
      ----------------
(without duplication) of:

          (a)  the Consolidated Net Income of the Borrower and the Subsidiary
Loan Parties for such fiscal year, adjusted to exclude any gains or losses
attributable to Prepayment Events; plus
                                   ----

                                       11
<PAGE>

          (b)  depreciation, amortization and other non-cash charges or losses
deducted in determining such Consolidated Net Income for such fiscal year; plus
                                                                           ----

          (c)  the sum of (i) the amount, if any, by which Net Working Capital
decreased during such fiscal year plus (ii) the net amount, if any, by which the
consolidated deferred revenues of the Borrower and the Subsidiary Loan Parties
increased during such fiscal year; minus
                                   -----

          (d)  the sum of (i) any non-cash gains included in determining such
consolidated net income (or loss) for such fiscal year plus (ii) the amount, if
any, by which Net Working Capital increased during such fiscal year plus (iii)
the net amount, if any, by which the consolidated deferred revenues of the
Borrower and the Subsidiary Loan Parties decreased during such fiscal year;
minus
-----

          (e)  Capital Expenditures for such fiscal year (except to the extent
attributable to the incurrence of Capital Lease Obligations or otherwise
financed by incurring Long-Term Indebtedness); minus
                                               -----

          (f)  the aggregate principal amount of Long-Term Indebtedness repaid
or prepaid by the Borrower and the Subsidiary Loan Parties during such fiscal
year, excluding (i) Eligible Secured Debt prepaid pursuant to Section 2.09(c) or
(d), and (ii) repayments or prepayments of Long-Term Indebtedness financed by
incurring other Long-Term Indebtedness; minus
                                        -----

          (g)  the aggregate amount of Restricted Payments made during such
fiscal year pursuant to clauses (d) or (e) of Section 6.06.

     "Excluded Taxes" means, with respect to either Agent, any Lender or any
      --------------
other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) income or franchise taxes imposed on (or measured
by) its net income by the United States of America, or by the jurisdiction under
the laws of which such recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits taxes imposed by the United States of America
or any similar tax imposed by any other jurisdiction described in clause (a)
above and (c) in the case of a Foreign Lender (other than an assignee pursuant
to a request by the Borrower under Section 2.17(b)), any withholding tax that
(i) is in effect and would apply to amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party to this Agreement (or designates a
new lending office), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the Borrower with
respect to any withholding tax pursuant to Section 2.15(a) or (ii) is
attributable to such Foreign Lender's failure to comply with Section 2.15(a).

     "FCC" means the Federal Communications Commission.
      ---

     "FCC Debt" means Indebtedness owing to the FCC in respect of the deferred
      --------
purchase price of any FCC License.

                                       12
<PAGE>

     "FCC License" means any license granted by the FCC to the Borrower or any
      -----------
Subsidiary Loan Party or that is used by the Borrower or any Subsidiary in the
conduct of its business.

     "Federal Funds Effective Rate" means, for any day, the weighted average
      ----------------------------
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

     "Financial Officer" means the chief financial officer, principal accounting
      -----------------
officer, treasurer or controller of the Borrower.

     "Fixed Charges" means, as of any date, the sum of (a) Cash Interest
      -------------
Expense, (b) Capital Expenditures and (c) scheduled principal payments of
Indebtedness to be made by the Borrower or any Subsidiary Loan Party to any
Person other than the Borrower or any Subsidiary Loan Party, in each case
projected (to the extent necessary) for the period of four consecutive fiscal
quarters of the Borrower beginning on such date or, if such date is not the
first day of a fiscal quarter of the Borrower, beginning on the last day of the
fiscal quarter of the Borrower most recently ended on such date.

     "Foreign Lender" means any Lender that is organized under the laws of a
      --------------
jurisdiction other than the United States of America, any State thereof or the
District of Columbia.

     "GAAP" means generally accepted accounting principles in the United States
      ----
of America.

     "Governmental Authority" means the government of the United States of
      ----------------------
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

     "Guarantee" of or by any Person (the "guarantor") means any obligation,
      ---------                            ---------
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person
(the "primary obligor") in any manner, whether directly or indirectly, and
      ---------------
including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty

                                       13
<PAGE>

issued to support such Indebtedness or obligation; provided, that the term
                                                   --------
Guarantee shall not include endorsements for collection or deposit in the
ordinary course of business.

     "Guarantee Agreement" means the Guarantee Agreement dated as of November
      -------------------
24, 1999, among Holdings, the Subsidiary Loan Parties and the Collateral Agent,
as supplemented on or before the date hereof, true and correct photocopies of
which agreement and supplements have been delivered to the Administrative Agent.

     "Hazardous Materials" means all explosive or radioactive substances or
      -------------------
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

     "Hedging Agreement" means any interest rate protection agreement, foreign
      -----------------
currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement.

     "Holdings" means Cricket Communications Holdings Inc., a Delaware
      --------
corporation.

     "Indebtedness" of any Person means, without duplication, (a) all
      ------------
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding current
accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty (j) all obligations,
contingent or otherwise, of such Person in respect of bankers' acceptances and
(k) all Disqualified Stock of such Person.  The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in which
such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person's ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor.

     "Indemnified Taxes" means Taxes other than Excluded Taxes.
      -----------------

     "Indemnity, Subrogation and Contribution Agreement" means the Indemnity,
      -------------------------------------------------
Subrogation and Contribution Agreement dated as of November 24, 1999, among the
Borrower, the Subsidiary Loan Parties and the Collateral Agent, as supplemented
on or before the date hereof, true and correct photocopies of which agreement
and supplements have been delivered to the Administrative Agent.

                                       14
<PAGE>

     "Initial Availability Date" means the first date after the Effective Date
      -------------------------
on which the conditions set forth in Section 4.02 are satisfied (or waived in
accordance with Section 9.02).

     "Intercompany Agreements" has the meaning set forth in Section 5.15.
      -----------------------

     "Interest Borrowing" means any Borrowing of Loans hereunder for the sole
      ------------------
purpose of paying, and the proceeds of which are applied solely to pay, accrued
interest on any Loans or accrued commitment fees payable under this Agreement.

     "Interest Election Request" means a request by the Borrower to convert or
      -------------------------
continue a Borrowing in accordance with Section 2.05.

     "Interest Payment Date" means (a) with respect to any ABR Loan, the last
      ---------------------
day of each March, June, September and December and (b) with respect to any
LIBOR Loan, the last day of the Interest Period applicable to the Borrowing of
which such Loan is a part and, in the case of a LIBOR Borrowing with an Interest
Period of more than three months' duration, each day prior to the last day of
such Interest Period that occurs at intervals of three months' duration after
the first day of such Interest Period.

     "Interest Period" means, with respect to any LIBOR Borrowing, the period
      ---------------
commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
thereafter, as the Borrower may elect; provided, that (a) if any Interest Period
                                       --------
would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (b) any Interest Period
that commences on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the last calendar month of
such Interest Period) shall end on the last Business Day of the last calendar
month of such Interest Period.  For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall
be the effective date of the most recent conversion or continuation of such
Borrowing.

     "Lenders" means the Persons listed on Schedule 2.01 and any other Person
      -------
that shall have become a party hereto pursuant to an Assignment and Acceptance,
other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Acceptance.

     "Leverage Ratio" means, on any date, the ratio of (a) Total Indebtedness as
      --------------
of such date to (b) Consolidated EBITDA for the period of four consecutive
fiscal quarters of the Borrower ended on such date or, if such date is not the
last day of a fiscal quarter, ended on the last day of the fiscal quarter of the
Borrower most recently ended prior to such date.

     "LIBOR", when used in reference to any Loan or Borrowing, refers to the
      -----
fact that such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

     "LIBO Rate" means, with respect to any LIBOR Borrowing for any Interest
      ---------
Period, the rate appearing on Page 3750 of the Telerate Service (or on any
successor or substitute page of such Service, or any successor to or substitute
for such Service, providing rate quotations

                                       15
<PAGE>

comparable to those currently provided on such page of such Service, as
determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the "LIBO Rate"
                                                                  ---------
with respect to such LIBOR Borrowing for such Interest Period shall be the rate
at which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative
Agent (or, if the Administrative Agent at the time is not a commercial bank, any
commercial bank based in New York City selected by the Administrative Agent for
the purpose of quoting such rate, provided that such commercial bank has a
                                  --------
combined capital and surplus and undivided profits of not less than
$500,000,000) in immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

     "License Subsidiary" has the meaning assigned to such term in Section 6.13.
      ------------------

     "Lien" means, with respect to any asset, (a) any mortgage, deed of trust,
      ----
lien, pledge, hypothecation, encumbrance, charge or security interest in, on or
of such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities.

     "Loan Documents" means this Agreement, any promissory note issued in
      --------------
connection with the Loans, the Collateral Agency Agreement, the Guarantee
Agreement, the Parent Agreement, the Parent Guarantee, the Subordination
Agreement, the Security Documents and the Indemnity, Subrogation and
Contribution Agreement and all other agreements, documents, instruments or
certificates executed and/or delivered by any Loan Party in connection herewith
or therewith (other than purchase agreements and supply agreements and
agreements, documents, instruments and certificates executed and/or delivered
pursuant thereto).

     "Loan Parties" means the Parent, Holdings, the Borrower and the Subsidiary
      ------------
Loan Parties.

     "Loans" means loans made to the Borrower pursuant to this Agreement.
      -----

     "Long-Term Indebtedness" means any Indebtedness that, in accordance with
      ----------------------
GAAP, constitutes (or, when incurred, constituted) a long-term liability.

     "Lucent" means Lucent Technologies Inc.
      ------

     "Lucent Credit Agreement" means the Credit Agreement dated as of September
      -----------------------
20, 1999 among the Borrower, Holdings, the Lenders party thereto and Lucent, as
Administrative Agent, as amended and restated as provided in Section 4.02(l) and
as further amended, supplemented or otherwise modified from time to time.

                                       16
<PAGE>

     "Lucent Loan Indebtedness" means the Indebtedness of the Borrower under the
      ------------------------
Lucent Credit Agreement.

     "Material Adverse Effect" means a material adverse effect on (a) the
      -----------------------
business, assets, operations, prospects or condition (financial or otherwise) of
the Borrower and the Subsidiary Loan Parties taken as a whole, (b) the ability
of any Loan Party to perform any of its obligations under any Loan Document or
(c) the rights of or benefits available to the Lenders under any Loan Document.

     "Material Indebtedness" means (a) Indebtedness (other than the Loans), or
      ---------------------
obligations in respect of one or more Hedging Agreements, of any one or more of
the Loan Parties in an aggregate principal amount exceeding $5,000,000, (b) any
FCC Debt or (c) any Permitted License Acquisition Debt.  For purposes of
determining Material Indebtedness, the "principal amount" of the obligations of
a Loan Party in respect of any Hedging Agreement at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that such
Loan Party would be required to pay if such Hedging Agreement were terminated at
such time.

     "Maturity Date" means September 30, 2008.
      -------------

     "Moody's" means Moody's Investors Service, Inc.
      -------

     "Mortgage" means a mortgage, deed of trust, assignment of leases and rents,
      --------
leasehold mortgage or other security document granting a Lien on any Mortgaged
Property  to secure the Obligations.  Each Mortgage shall be satisfactory in
form and substance to the Agents.

     "Mortgaged Property" means each parcel of real property and improvements
      ------------------
thereto with respect to which a Mortgage is granted pursuant to Section 5.12.

     "Multiemployer Plan" means a multiemployer plan as defined in Section
      ------------------
4001(a)(3) of ERISA.

     "Net Proceeds" means, with respect to any event (a) the cash proceeds
      ------------
received in respect of such event including (i) any cash received in respect of
any non-cash proceeds, but only as and when received, (ii) in the case of a
casualty, insurance proceeds, and (iii) in the case of a condemnation or similar
event, condemnation awards and similar payments, net of (b) the sum of (i) all
fees and out-of-pocket expenses paid by the Borrower and the Subsidiary Loan
Parties to third parties (other than Affiliates of the Borrower) in connection
with such event, (ii) in the case of a sale or other disposition of an asset
(including pursuant to a sale and leaseback transaction or a casualty or
condemnation), the amount of all payments required to be made by the Borrower
and the Subsidiary Loan Parties as a result of such event to repay Indebtedness
(other than Eligible Secured Debt) secured by such asset or otherwise subject to
mandatory prepayment as a result of such event, and (iii) the amount of all
taxes paid (or reasonably estimated to be payable) by the Borrower and the
Subsidiary Loan Parties, and the amount of any reserves established by the
Borrower and the Subsidiary Loan Parties to fund contingent liabilities
reasonably estimated to be payable, in each case during the year that such event
occurred or the next succeeding year and that are directly attributable to such
event (as determined reasonably and in good faith by the chief financial officer
of the Borrower).

                                       17
<PAGE>

     "Net Working Capital" means, at any date, (a) the sum of the consolidated
      -------------------
current assets and non-current deferred income tax assets of the Borrower and
the Subsidiary Loan Parties as of such date (excluding cash and Permitted
Investments) minus (b) the sum of the consolidated current liabilities and non-
current deferred income tax liabilities of the Borrower and the Subsidiary Loan
Parties as of such date (excluding current liabilities in respect of
Indebtedness), determined on a consolidated basis in accordance with GAAP.  Net
Working Capital at any date may be a positive or negative number.  Net Working
Capital increases when it becomes more positive or less negative and decreases
when it becomes less positive or more negative.

     "Nortel" means Nortel Networks Inc.
      ------

     "Nortel Credit Agreement" means the Credit Agreement dated as of August 28,
      -----------------------
2000 among the Borrower, Holdings, the Lenders party thereto and Nortel, as
Administrative Agent, as amended, supplemented or otherwise modified from time
to time.

     "Obligations" has the meaning assigned to such term in the Collateral
      -----------
Agency Agreement.

     "Other Loan Documents" has the meaning assigned to such term in Section
      --------------------
3.18.

     "Other Taxes" means any and all present or future stamp or documentary
      -----------
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made under any Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, any Loan Document.

     "PBGC" means the Pension Benefit Guaranty Corporation referred to and
      ----
defined in ERISA and any successor entity performing similar functions.

     "Parent" means Leap Wireless International, Inc., a Delaware corporation.
      ------

     "Parent Agreement" means the Parent Agreement between Parent and the
      ----------------
Administrative Agent in the form of Exhibit C.

     "Parent Guarantee" means the Guarantee Agreement executed by the Parent in
      ----------------
favor of the Collateral Agent in the form of Exhibit D.

     "Parent Indenture" means the Indenture dated as of February 23, 2000, among
      ----------------
the Parent, as issuer, Holdings, as guarantor, and State Street Bank and Trust
Company, as trustee.

     "Parent Pledge Agreement" means the Parent Pledge Agreement dated as of
      -----------------------
November 24, 1999, between the Parent and the Collateral Agent, a true and
correct copy of which has been delivered to the Administrative Agent.

     "Payment Date" means each March 31, June 30, September 30 and December 31,
      ------------
commencing on and including the first such date that is on or after the
Availability Termination Date, and ending on and including the Maturity Date.

                                       18
<PAGE>

     "Perfection Certificate" means a certificate in the form of Exhibit F or
      ----------------------
any other form approved by the Agents.

     "Permitted Encumbrances" means:
      ----------------------

          (a)  Liens imposed by law for taxes that are not yet due or are being
contested in compliance with Section 5.05;

          (b)  carriers', warehousemen's, mechanics', landlords', materialmen's,
repairmen's and other like Liens imposed by law, arising in the ordinary course
of business and securing obligations that are not overdue by more than 30 days
or are being contested in compliance with Section 5.05;

          (c)  pledges and deposits made in the ordinary course of business in
compliance with workers' compensation, unemployment insurance and other social
security laws or regulations;

          (d)  deposits to secure the performance of bids, trade contracts,
leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature, in each case in the ordinary course of
business;

          (e)  judgment liens in respect of judgments that do not constitute an
Event of Default under clause (k) of Article VII; and

          (f)  easements, zoning restrictions, rights-of-way and similar
encumbrances on real property imposed by law or arising in the ordinary course
of business that do not secure any monetary obligations and do not materially
detract from the value of the affected property or interfere with the ordinary
conduct of business of the Borrower or any Subsidiary;

provided that the term "Permitted Encumbrances" shall not include any Lien
--------
securing Indebtedness.

     "Permitted Holdings Debt" means Indebtedness of Holdings in respect of debt
      -----------------------
securities issued in an underwritten public offering or private placement
pursuant to Rule 144A; provided that (a) such Indebtedness shall not mature, nor
                       --------
shall any scheduled repayment of any principal thereof be due, nor shall such
Indebtedness be subject to any mandatory redemption or required repurchase,
conversion or exchange (whether upon the occurrence of any contingency or
otherwise, but excluding contingent redemption offer provisions in the event of
a "change of control" or "asset sale" that are customary for similar debt
securities), in each case prior to the date that is one year after the Maturity
Date, (b) any covenants, events of default and similar provisions relating
thereto shall be reasonably satisfactory to the Required Lenders, (c) the
obligations of Holdings in respect thereof shall not be Guaranteed by any other
Loan Party or secured by any Lien, (d) by its terms, no interest shall be
payable in respect of such Indebtedness (other than (i) by the issuance of
additional Permitted Holdings Debt or (ii) out of a cash reserve funded by
Holdings from the net proceeds of the issuance of such Indebtedness in an amount
sufficient to pay such cash interest) prior to the later of (A) the date that is
five years after the date of issuance of such Indebtedness and (B) June 30,
2005, and (e) the net proceeds of such Indebtedness (other than the portion, if
any, of such net proceeds applied to fund any cash

                                       19
<PAGE>

reserve established to fund interest payments as provided above) are contributed
by Holdings to the Borrower as common equity.

     "Permitted Investments" means:
      ---------------------

          (a)  direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America), in each case
maturing within one year from the date of acquisition thereof;

          (b)  investments in commercial paper maturing within 270 days from the
date of acquisition thereof and having, at such date of acquisition, the highest
credit rating obtainable from S&P or from Moody's;

          (c)  investments in certificates of deposit, banker's acceptances and
time deposits maturing within 180 days from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts issued
or offered by, any domestic office of any commercial bank organized under the
laws of the United States of America or any State thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000; and

          (d)  fully collateralized repurchase agreements with a term of not
more than 30 days for securities described in clause (a) above and entered into
with a financial institution satisfying the criteria described in clause (c)
above.

     "Permitted License Acquisition Debt" means Indebtedness (other than FCC
      ----------------------------------
Debt) of any License Subsidiary in respect of the deferred purchase price of any
FCC License purchased by such License Subsidiary; provided that (a) such
                                                  --------
Indebtedness shall not be secured by any Lien, other than a Lien on the Equity
Interests of the License Subsidiary that holds such FCC License, (b)
arrangements satisfactory to the Agents shall have been made for the Lien
granted under the Parent Pledge Agreement on the Equity Interests of such
License Subsidiary to be perfected, subject to the prior Lien referred to in
clause (a) above, (c) such Indebtedness shall mature within three years after
the date such Indebtedness is incurred, and (d) the holder of such Indebtedness
shall have entered into an agreement with the Administrative Agent, in form and
substance reasonably satisfactory to the Administrative Agent, pursuant to which
such holder shall have agreed to sell such Indebtedness upon demand to any
holders of Eligible Secured Debt who elect to participate in such sale if an
Event of Default has occurred and is continuing, for a purchase price equal to
the outstanding principal amount thereof and accrued and unpaid interest
thereon.

     "Permitted Preferred Stock" means Disqualified Stock issued by Holdings;
      -------------------------
provided that (a) by its terms, no dividends shall be payable in respect of such
--------
stock (other than by the issuance of additional shares of Permitted Preferred
Stock) prior to the date that is one year after the Maturity Date, (b) such
stock shall not mature or be subject to mandatory redemption or required
repurchase, conversion or exchange (whether upon the occurrence of any
contingency or otherwise) prior to the date that is one year after the Maturity
Date, (c) any obligations of Holdings in respect of such stock shall not be
Guaranteed by any other Loan Party or secured by

                                       20
<PAGE>

any Lien, and (d) the net proceeds of such stock are contributed by Holdings to
the Borrower as common equity.

     "Permitted Third Party Payments" means (a) payments in respect of the
      ------------------------------
purchase price of equipment and services purchased by the Borrower and its
Subsidiaries other than pursuant to the Purchase Agreement, provided that any
                                                            --------
such equipment becomes Collateral under the Security Agreement upon the purchase
thereof (free of any Liens other than the Lien of the Security Agreement) and
(b) payments in respect of the purchase price of any FCC License that is
acquired by a License Subsidiary and is to be used in the business of the
Borrower and its Subsidiaries after the purchase thereof, provided that such FCC
                                                          --------
License is acquired by a License Subsidiary free of any Liens and is not
purchased subject to any FCC Debt, Permitted License Acquisition Debt or other
Indebtedness; provided that, unless otherwise agreed by Ericsson, payments for
              --------
equipment referred to in clause (a) above shall be "Permitted Third Party
Payments" only if and to the extent that such payments are permitted to be
financed with the proceeds of Loans hereunder in accordance with the applicable
provisions of the Purchase Agreement.

     "Person" means any natural person, corporation, limited liability company,
      ------
trust, joint venture, association, company, partnership, Governmental Authority
or other entity.

     "Plan" means any employee pension benefit plan (other than a Multiemployer
      ----
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA, and in respect of which the Borrower or any ERISA
Affiliate is (or, if such plan were terminated, would under Section 4069 of
ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

     "Pledge Agreements" means the Borrowebr Pledge Agreement and the Parent
      -----------------
Pledge Agreement.

     "POPS" means, with respect to any geographical area, the most recent
      ----
projection of the population of such geographic area as published in a
demographic data source based upon the most recent U.S. Census Bureau data, such
data source to be reasonably agreed upon by the Administrative Agent and the
Borrower.

     "Prepayment Event" means:
      ----------------

          (a)  any sale, transfer or other disposition (including pursuant to a
sale and leaseback transaction) of any property or asset of the Borrower or any
Subsidiary Loan Party, other than pursuant to clause (i), (ii) or (iii) of
Section 6.04(b); or

          (b)  any casualty or other insured damage to, or any taking under
power of eminent domain or by condemnation or similar proceeding of, any
property or asset of the Borrower or any Subsidiary Loan Party, but only to the
extent that the Net Proceeds therefrom have not been applied to repair, restore
or replace such property or asset within 180 days after such event.

     "Primary Subordinated Obligations" has the meaning assigned to such term in
      --------------------------------
the Subordination Agreement.

                                       21
<PAGE>

     "Prime Rate" means the rate of interest per annum published from time to
      ----------
time in the "Money Rates" column (or any successor column) of The Wall Street
Journal as the prime rate or, if such rate shall cease to be so published or is
not available for any reason, the rate of interest publicly announced from time
to time by any commercial bank based in New York City selected by the
Administrative Agent for the purpose of quoting such rate; provided that if at
                                                           --------
any time the Person serving as Administrative Agent is a commercial bank based
in New York City then the "Prime Rate" shall be the rate of interest per annum
publicly announced from time to time by such bank as its prime rate in effect at
its principal office in New York City.  Each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.

     "Purchase Agreement" means the System Equipment Purchase Agreement dated as
      ------------------
of September 20, 1999 between the Borrower and Ericsson Wireless.

     "Purchase Price" means amounts paid or payable to Ericsson Wireless
      --------------
pursuant to invoices delivered by Ericsson Wireless pursuant to the Purchase
Agreement, excluding any such amounts attributable to sales taxes.

     "Real Estate Subsidiary" has the meaning assigned to such term in Section
      ----------------------
6.12.
     "Register" has the meaning set forth in Section 9.04.
      --------

     "Related Parties" means, with respect to any specified Person, such
      ---------------
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

     "Repayment" means, in respect of any Indebtedness, the direct or indirect
      ---------
repayment, prepayment, redemption, purchase, acquisition, defeasance, retirement
or other satisfaction of the principal of such Indebtedness, in whole or in
part, whether optional or mandatory.  "Repay" has a meaning correlative thereto.
                                       -----

     "Required Lenders" means, at any time, Lenders having outstanding Loans and
      ----------------
Commitments representing more than 50% of the sum of the total outstanding Loans
and Commitments at such time; provided that at any time that Ericsson Lenders
                              --------
have outstanding Loans and Commitments representing more than 50% of the sum of
all outstanding Loans and Commitments at such time, "Required Lenders" means
each of (i) the Ericsson Lenders at such time and (ii) other Lenders holding
more than 50% of the outstanding Loans and Commitments (excluding those held by
Ericsson Lenders) at such time.

     "Restricted Payment" means (a) any dividend or other distribution (whether
      ------------------
in cash, securities or other property) with respect to any Equity Interests in
Holdings, the Borrower or any Subsidiary Loan Party, or any payment (whether in
cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any Equity Interest in Holdings, the Borrower or
any Subsidiary Loan Party or any option, warrant or other right to acquire any
such Equity Interest in Holdings, the Borrower or any Subsidiary Loan Party or
(b) any Repayment in respect of any Primary Subordinated Obligation or any
payment of interest thereon.

                                       22
<PAGE>

     "S&P" means Standard & Poor's.
      ---

     "Secondary Subordinated Obligation" has the meaning assigned to such term
      ---------------------------------
in the Subordination Agreement.

     "Security Agreement" means the Security Agreement dated as of November 24,
      ------------------
1999, among the Borrower, the Subsidiary Loan Parties and the Collateral Agent,
as supplemented on or before the date hereof, true and correct photocopies of
which agreement and supplements have been delivered to the Administrative Agent.

     "Security Documents" means the Collateral Agency Agreement, the Pledge
      ------------------
Agreements, the Security Agreement, the Mortgages and each other security
agreement or other instrument or document executed and delivered pursuant to
Section 5.11 or 5.12 to secure any of the Obligations.

     "Statutory Reserve Rate" means a fraction (expressed as a decimal), the
      ----------------------
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which any commercial banks subject to regulation by
the Board are subject with respect to the Adjusted LIBO Rate, for eurocurrency
funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of
the Board).  Such reserve percentages shall include those imposed pursuant to
such Regulation D.  LIBOR Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D or any comparable regulation.  The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     "Subordination Agreement" means the Subordination Agreement dated as of
      -----------------------
November 24, 1999, among the Loan Parties and the Collateral Agent, as
supplemented on or before the date hereof, true and correct photocopies of which
agreement and supplements have been delivered to the Administrative Agent.

     "Subscribers" means customers that are purchasing wireless
      -----------
telecommunications service from the Borrower or any of its operating
Subsidiaries.

     "subsidiary" means, with respect to any Person (the "parent") at any date,
      ----------                                          ------
any corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent's consolidated financial statements if such financial statements were
prepared in accordance with GAAP as of such date, as well as any other
corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50%
of the equity or more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such
date, owned, controlled or held, or (b) that is, as of such date, otherwise
Controlled, by the parent or one or more subsidiaries of the parent or by the
parent and one or more subsidiaries of the parent.

     "Subsidiary" means any subsidiary of the Borrower.
      ----------

                                       23
<PAGE>

     "Subsidiary Loan Parties" means the Subsidiaries and the License
      -----------------------
Subsidiaries.

     "Taxes" means any and all present or future taxes, levies, imposts, duties,
      -----
deductions, charges or withholdings imposed by any Governmental Authority.

     "Total Capitalization" means, as of any date, the sum (without duplication)
      --------------------
of (a) Total Indebtedness as of such date, plus (b) Total Contributed Capital as
of such date, plus (c) if positive, consolidated retained earnings of the
Borrower and the Subsidiary Loan Parties as of such date.

     "Total Contributed Capital" means, as of any date, the sum (without
      -------------------------
duplication) of (a) the amount of consolidated paid-in equity capital of the
Borrower and the Subsidiary Loan Parties as of such date, plus (b) the
outstanding principal amount of Indebtedness consisting of Primary Subordinated
Obligations as of such date; provided that "Total Contributed Capital" shall not
                             --------
include any of the foregoing to the extent that the consideration received by
the Borrower and the Subsidiary Loan Parties therefore did not consist of either
(i) cash or (ii) assets useful in the business of the Borrower and the
Subsidiary Loan Parties that the Borrower and the Subsidiary Loan Parties would
have been permitted to acquire hereunder if cash had been received by the
Borrower as consideration therefor.  Any assets referred to in clause (ii) of
the preceding sentence shall be valued at the lesser of the cost or fair market
value of such assets at the time received by the Borrower and the Subsidiary
Loan Parties, it being understood that costs incurred and assets contributed to
capital of the Borrower prior to the Effective Date and treated as paid-in
equity capital in accordance with GAAP shall be valued at the amount reflected
on the Borrower's balance sheet as paid-in equity capital in accordance with
GAAP.

     "Total Indebtedness" means, as of any date, the sum of (a) the aggregate
      ------------------
principal amount of Indebtedness of the Borrower and the Subsidiary Loan Parties
outstanding as of such date (excluding Indebtedness that constitutes a Primary
Subordinated Obligation), in the amount that would be reflected on a balance
sheet prepared as of such date on a consolidated basis in accordance with GAAP,
plus (b) the aggregate principal amount of Indebtedness of the Borrower and the
Subsidiary Loan Parties outstanding as of such date (excluding Indebtedness that
constitutes a Primary Subordinated Obligation) that is not required to be
reflected on a balance sheet in accordance with GAAP, determined on a
consolidated basis; provided that, for purposes of clause (b) above, the term
                    --------
"Indebtedness" shall not include contingent obligations of the Borrower or any
Subsidiary as an account party in respect of any letter of credit or letter of
guaranty unless such letter of credit or letter of guaranty supports an
obligation that constitutes Indebtedness.

     "Transactions" means the execution, delivery and performance by the Loan
      ------------
Parties of the Loan Documents, the borrowing of Loans and the use of the
proceeds thereof.

     "Type", when used in reference to any Loan or Borrowing, refers to whether
      ----
the rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

                                       24
<PAGE>

     "Withdrawal Liability" means liability to a Multiemployer Plan as a result
      --------------------
of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.

     Section 1.02  Classification of Loans and Borrowings.  For purposes of this
                   --------------------------------------
Agreement, Loans may be classified and referred to by Type (e.g., a "LIBOR
                                                            ----
Loan"). Borrowings also may be classified and referred to by Type (e.g., a
                                                                   ----
"LIBOR Borrowing").

     Section 1.03  Terms Generally.  The definitions of terms herein shall apply
                   ---------------
equally to the singular and plural forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words "include", "includes" and "including"
shall be deemed to be followed by the phrase "without limitation".  The word
"will" shall be construed to have the same meaning and effect as the word
"shall".  Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein
or in any other Loan Document), (b) any reference herein to any Person shall be
construed to include such Person's successors and assigns, (c) the words
"herein", "hereof" and "hereunder", and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (e) the words "asset" and "property" shall
be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts, contract rights, licenses and intellectual property.

     Section 1.04  Accounting Terms; GAAP; Consolidation of License
                   ------------------------------------------------
Subsidiaries.
------------

          (a)  Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrower notifies the
                          --------
Administrative Agent that the Borrower requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in
accordance herewith.

          (b)  Any determination required to be made under any Loan Document
with respect to the Borrower and the Subsidiary Loan Parties on a consolidated
basis shall be made as though the License Subsidiaries were consolidated
subsidiaries of the Borrower.

                                       25
<PAGE>

                                  ARTICLE II
                                  ----------

                                   The Loans
                                   ---------

     Section 2.01  Commitments.  Subject to the terms and conditions set forth
                   -----------
herein, each Lender agrees to make Loans to the Borrower at any time and from
time to time during the Availability Period therefor in an aggregate principal
amount not exceeding its remaining Commitment at the time.  Amounts repaid in
respect of Loans may not be reborrowed.

     Section 2.02  Loans and Borrowings.
                   --------------------

          (a)  Each Loan shall be made as part of a Borrowing consisting of
Loans of the same Type made by the Lenders ratably in accordance with their
respective Commitments; provided that if a Commitment is assigned by Ericsson
                        --------
(in its capacity as a Lender) after a receipt of a Borrowing Request in order to
permit the assignee to fund all or a portion of the Loan that otherwise would
have been funded by Ericsson in connection with such Borrowing Request (any such
assigned Commitment, a "Fronting Commitment"), Ericsson's ratable share of such
Borrowing shall equal (w) Ericsson's ratable share of such Borrowing calculated
without giving effect to such assignment minus (x) the amount of such Fronting
Commitment, and the assignee's ratable portion of such Borrowing shall equal the
sum of (y) such assignee's ratable share of such Borrowing calculated without
giving effect to any assignment under which such assignee was assigned a
Fronting Commitment plus (z) the amount of such Fronting Commitment. The failure
of any Lender to make any Loan required to be made by it shall not relieve any
other Lender of its obligations hereunder; provided that the Commitments of the
                                           --------
Lenders are several and no Lender shall be responsible for any other Lender's
failure to make Loans as required.

          (b)  Subject to Section 2.12, each Borrowing shall be comprised
entirely of LIBOR Loans or ABR Loans as the Borrower may request in accordance
herewith. Each Lender at its option may make any LIBOR Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of the
--------
Borrower to repay such Loan in accordance with the terms of this Agreement.

          (c)  At the commencement of each Interest Period for any LIBOR
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $1,000,000 and not less than $3,000,000. At the time that each ABR
Borrowing (other than an Interest Borrowing) is made, such Borrowing shall be in
an aggregate amount that is not less than $3,000,000; provided that an ABR
                                                      --------
Borrowing may be in an aggregate amount that is equal to the entire remaining
Commitments.  Borrowings of more than one Type may be outstanding at the same
time; provided that there shall not at any time be more than a total of 12 LIBOR
      --------
Borrowings outstanding.

          (d)  Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing as a LIBOR Borrowing if the Interest Period requested with respect
thereto would end after the Maturity Date.

                                       26
<PAGE>

     Section 2.03  Requests for Borrowings. To request a Borrowing, the Borrower
                   -----------------------
shall notify the Administrative Agent of such request by telephone not later
than 11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing; provided that, except for Interest Borrowings, the Borrower
                    --------
may make only one request for a Borrowing in any single calendar month (it being
understood that all Borrowings made by the Borrower on the same date shall be
treated as a single request for a Borrowing for purposes of this limitation).
Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Borrowing Request in a form approved by the Administrative Agent and
signed by the Borrower.  Each such telephonic and written Borrowing Request
shall specify the following information in compliance with Section 2.02:

               (i)   the aggregate amount of such Borrowing and the use of
     proceeds therefrom (and each written Borrowing Request shall attach copies
     of the invoices to be paid with such proceeds, except to the extent such
     Borrowing is to be applied to pay fees and interest payable hereunder);

               (ii)  the date of such Borrowing, which shall be a Business Day;

               (iii) whether such Borrowing is to be a LIBOR Borrowing or an ABR
     Borrowing;

               (iv)  in the case of a LIBOR Borrowing, the initial Interest
     Period to be applicable thereto, which shall be a period contemplated by
     the definition of the term "Interest Period"; and
                                 ---------------

               (v)   if any proceeds of such Borrowing are to be applied to pay
     the purchase price of Permitted Third Party Payments, the location and
     number of the Borrower's account to which funds are to be disbursed, which
     shall comply with Section 2.04.

     If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with
respect to any requested LIBOR Borrowing, then the Borrower shall be deemed to
have selected an Interest Period of one month's duration.  Promptly following
receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.

     Section 2.04  Funding of Borrowings.
                   ---------------------

          (a)  Each Lender shall make each Loan to be made by it hereunder on
the proposed date thereof by wire transfer of immediately available funds by
12:00 noon, New York City time, to the account of the Administrative Agent most
recently designated by it for such purpose by notice to the Lenders. The
Administrative Agent will make such Loans available to the Borrower (i) in the
case of amounts payable to Ericsson Wireless by promptly crediting the amounts
so received, in like funds, to an account of Ericsson Wireless maintained with
the Administrative Agent and designated by Ericsson Wireless for such purpose,
(ii) in the case of amounts payable to either Agent or any Lender, by promptly
transmitting the amounts so

                                       27
<PAGE>

received to such Agent or Lender by wire transfer (or by crediting the account
of such Agent or Lender maintained with the Administrative Agent, if
applicable), in immediately available funds, or (iii) in the case of any other
amounts, by promptly transmitting the amounts so received to the Borrower by
wire transfer to an account of the Borrower in immediately available funds, as
designated by the Borrower in the applicable Borrowing Request. Notwithstanding
the foregoing, (i) any Lender may make its Loan by crediting the amount thereof
against any amount payable to such Lender from the proceeds of such Borrowing
and shall be deemed to have made a Loan in the amount of such credit and (ii)
the Administrative Agent will make the Loans of the other Lenders available as
provided in the preceding sentence. So long as Ericsson is the Administrative
Agent, any amounts to be made available or paid as provided above to an account
maintained with the Administrative Agent may be made available or paid to an
account maintained with a commercial bank designated by Ericsson for the
purpose.

          (b)  Unless the Administrative Agent shall have received notice from a
Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation or (ii) in the case of the Borrower,
the interest rate applicable to ABR Loans.  If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender's Loan
included in such Borrowing.

     Section 2.05  Interest Elections.
                   ------------------

          (a)  Each Borrowing initially shall be of the Type specified in the
applicable Borrowing Request and, in the case of a LIBOR Borrowing, shall have
an initial Interest Period as specified in such Borrowing Request.  Thereafter,
the Borrower may elect to convert such Borrowing to a different Type or to
continue such Borrowing and, in the case of a LIBOR Borrowing, may elect
Interest Periods therefor, all as provided in this Section.  The Borrower may
elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing.

          (b)  To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Borrowing of the Type resulting from such election to be made on
the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by

                                       28
<PAGE>

hand delivery or telecopy to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by
the Borrower.

          (c)  Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02:

                    (i)   the Borrowing to which such Interest Election Request
     applies and, if different options are being elected with respect to
     different portions thereof, the portions thereof to be allocated to each
     resulting Borrowing (in which case the information to be specified pursuant
     to clauses (iii) and (iv) below shall be specified for each resulting
     Borrowing);

                    (ii)  the effective date of the election made pursuant to
     such Interest Election Request, which shall be a Business Day;

                    (iii) whether the resulting Borrowing is to be a LIBOR
     Borrowing or an ABR Borrowing; and

                    (iv)  if the resulting Borrowing is a LIBOR Borrowing, the
     Interest Period to be applicable thereto after giving effect to such
     election, which shall be a period contemplated by the definition of the
     term "Interest Period".

If any such Interest Election Request requests a LIBOR Borrowing but does not
specify an Interest Period, then the Borrower shall be deemed to have selected
an Interest Period of one month's duration.

          (d)  Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.

          (e)  If the Borrower fails to deliver a timely Interest Election
Request with respect to a LIBOR Borrowing prior to the end of the Interest
Period applicable thereto, then, unless such Borrowing is repaid as provided
herein, at the end of such Interest Period such Borrowing shall be converted to
an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies the Borrower, then, so long as an
Event of Default is continuing (i) no outstanding Borrowing may be converted to
or continued as a LIBOR Borrowing and (ii) unless repaid, each LIBOR Borrowing
shall be converted to an ABR Borrowing at the end of the Interest Period
applicable thereto.

     Section 2.06  Termination and Reduction of Commitments.
                   ----------------------------------------

          (a)  Unless previously terminated, the Commitments shall terminate on
the earlier of (i) the Availability Termination Date and (ii) the date of
termination of the Purchase Agreement.

          (b)  On the date of each Loan made by any Lender such Lender's
Commitment shall be reduced by an amount equal to such Loan.

                                       29
<PAGE>

          (c)  In the event that a prepayment of Loans would be required
pursuant to paragraph (b), (c) or (d) of Section 2.09, all Commitments then in
effect shall be reduced ratably by an aggregate amount equal to the excess, if
any, of the amount of the required prepayment (without regard to the aggregate
principal amount of the Loans then outstanding) over the aggregate principal
amount of Loans outstanding immediately prior to giving effect to such
prepayment.

          (d)  The Borrower may at any time terminate, or from time to time
reduce, the Commitments; provided that each reduction of the Commitments
                         --------
pursuant to this paragraph (d) shall be in an amount that is an integral
multiple of $1,000,000 and not less than $5,000,000.

          (e)  The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Commitments under paragraph (d) of this
Section at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any such notice, the Administrative Agent
shall advise the Lenders of the contents thereof. Each notice delivered by the
Borrower pursuant to this Section shall be irrevocable. Any termination or
reduction of the Commitments shall be permanent. Each reduction of the
Commitments pursuant to paragraph (d) of this Section shall be made ratably
among the Lenders in accordance with their respective Commitments.

     Section 2.07  Repayment of Loans; Evidence of Debt.
                   -------------------------------------

          (a)  The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Loan of such Lender as provided in Section 2.08.

          (b)  Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

          (c)  The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Type thereof and
the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender's share thereof.

          (d)  The entries made in the accounts maintained pursuant to paragraph
(b) or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
                                             --------
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Loans in accordance with the terms of this Agreement.

          (e)  Any Lender may request that Loans made by it be evidenced by a
promissory note.  In such event, the Borrower shall prepare, execute and deliver
to such Lender a promissory note payable to the order of such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) and in a
form approved by the Administrative Agent.  Thereafter, the Loans

                                       30
<PAGE>

evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by one or
more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

     Section 2.08  Amortization of Loans.
                   ----------------------

          (a)  Subject to adjustment pursuant to paragraph (c) of this Section,
the Borrower shall repay Borrowings on each Payment Date set forth below in an
aggregate amount equal to the percentage set forth opposite such Payment Date
multiplied by an amount equal to the sum of all Loans made during the
Availability Period (whether or not previously repaid):

<TABLE>
<CAPTION>
-------------------------------------------------------------------------
Payment Date                                    Percentage
------------                                    ----------
-------------------------------------------------------------------------
<S>                                             <C>
Each of first, second, third and fourth         2.50%
-------------------------------------------------------------------------
Each of fifth, sixth, seventh and eighth        3.75%
-------------------------------------------------------------------------
Each of ninth, tenth, eleventh and twelfth      5.00%
-------------------------------------------------------------------------
Each of thirteenth, fourteenth, fifteenth and   6.25%
sixteenth
-------------------------------------------------------------------------
Each of seventeenth, eighteenth, nineteenth     7.50%
and twentieth
-------------------------------------------------------------------------
</TABLE>

          (b)  To the extent not previously paid, all Loans shall be due and
payable on the Maturity Date.

          (c)  Any prepayment of a Borrowing shall be applied to reduce the
subsequent scheduled repayments of the Borrowings to be made pursuant to this
Section in the inverse order of maturity thereof.

          (d)  Prior to any repayment of any Borrowings hereunder, the Borrower
shall select the Borrowing or Borrowings to be repaid and shall notify the
Administrative Agent by telephone (confirmed by telecopy) of such selection not
later than 2:00 p.m., New York City time, three Business Days before the
scheduled date of such repayment; provided that the Borrower shall select
                                  --------
Borrowings to be repaid such that each Lender shall receive its pro rata share
of such repayment as provided in Section 2.16.  Each repayment of a Borrowing
shall be applied ratably to the Loans included in the repaid Borrowing.
Repayments of Borrowings shall be accompanied by the payment of accrued interest
on the amount thereof.

     Section 2.09  Prepayment of Loans.
                   --------------------

          (a)  The Borrower shall have the right at any time and from time to
time to prepay any Borrowing in whole or in part, subject to the requirements of
this Section.

                                       31
<PAGE>

          (b)  In the event and on each occasion that any Net Proceeds are
received by or on behalf of the Borrower or any Subsidiary Loan Party in respect
of any Prepayment Event, the Borrower shall, within three Business Days after
such Net Proceeds are received, prepay Eligible Secured Debt (including
Borrowings), ratably in accordance with the outstanding principal amount
thereof, in an aggregate principal amount equal to such Net Proceeds; provided
                                                                      --------
that, in the case of any event described in clause (a) of the definition of the
term Prepayment Event, if the Borrower shall deliver to the Administrative Agent
a certificate of a Financial Officer to the effect that the Borrower and the
Subsidiaries intend to apply the Net Proceeds from such event (or a portion
thereof specified in such certificate), within 180 days after receipt of such
Net Proceeds, to acquire real property, equipment or other tangible assets to be
used in the business of the Borrower and the Subsidiaries, and certifying that
no Default has occurred and is continuing, then no prepayment shall be required
pursuant to this paragraph in respect of the Net Proceeds in respect of such
event (or the portion of such Net Proceeds specified in such certificate, if
applicable) except to the extent of any such Net Proceeds therefrom that have
not been so applied by the end of such 180 day period, at which time a
prepayment shall be required in an amount equal to such Net Proceeds that have
not been so applied.

          (c)  Following the end of each fiscal year of the Borrower, commencing
with the fiscal year during which the Availability Termination Date occurs, the
Borrower shall prepay Eligible Secured Debt (including Borrowings), ratably in
accordance with the outstanding principal amount thereof, in an aggregate
principal amount equal to 50% of Excess Cash Flow for such fiscal year. Each
prepayment pursuant to this paragraph shall be made on or before the date on
which financial statements are delivered pursuant to Section 5.01 with respect
to the fiscal year for which Excess Cash Flow is being calculated (and in any
event within 90 days after the end of such fiscal year).

          (d)  In the event and on each occasion that the Borrower or any
Subsidiary Loan Party Repays any Indebtedness (other than Eligible Secured Debt)
of the Borrower or any Subsidiary Loan Party, the Borrower shall, within three
Business Days after the date of such Repayment, prepay Eligible Secured Debt
(including Borrowings), ratably in accordance with the outstanding principal
amount thereof, in an aggregate amount equal to the product of (x) the sum of
the aggregate principal amount of the Eligible Secured Debt outstanding at the
time, multiplied by (y) a fraction, the numerator of which is the aggregate
principal amount of such Repayment, and the denominator of which is the amount
of Total Indebtedness immediately prior to such Repayment (excluding Eligible
Secured Debt and Indebtedness outstanding under revolving credit facilities);
provided that prepayments of Eligible Secured Debt shall not be required
pursuant to this paragraph in respect of (i) any Repayment of Indebtedness to
the extent such Repayment is refinanced by incurring other Indebtedness that (A)
has a scheduled maturity date that is on or after the scheduled maturity date of
the Indebtedness being refinanced, (B) has a weighted average life to maturity
that is equal to or longer than the remaining weighted average life to maturity
of the Indebtedness being refinanced, determined immediately prior to giving
effect to such Repayment, (C) does not include any provisions that may require
mandatory Repayment thereof prior to scheduled maturity, other than scheduled
repayments taken into consideration in determining compliance with clause (B)
above and other provisions that are not materially more burdensome than any such
provisions included in the Indebtedness being refinanced, (D) is issued or
incurred by the same Person that issued or incurred the Indebtedness being
refinanced and is not Guaranteed or secured by any Lien unless the Indebtedness
being

                                       32
<PAGE>

refinanced was Guaranteed or secured (in which case such Indebtedness shall not
be Guaranteed by any Person that did not Guarantee the Indebtedness being
refinanced and shall not be secured by a Lien on any asset that did not secure
the Indebtedness being refinanced), and (E) is subordinated to the Obligations
on terms no less favorable than the terms on which the Indebtedness being
refinanced was so subordinated, if such refinanced Indebtedness was so
subordinated (any such refinancing which satisfies such conditions being
referred to hereof as a "Qualified Refinancing"), (ii) any Repayment of
                         ---------------------
Indebtedness outstanding under a revolving credit facility to the extent that
(A) the commitments of the lenders to make loans thereunder remain in effect
after giving effect to such Repayment or are replaced by commitments under a
replacement revolving credit facility and (B) such commitments are not reduced
within six months thereafter, (iii) any Repayment of secured Indebtedness in
connection with the sale of the assets securing such Indebtedness or (iv) any
Repayment of Indebtedness at the scheduled final maturity thereof or in
accordance with regularly scheduled amortization requirements prior to maturity.

          (e)  In the event and on each occasion that the Borrower or any
Subsidiary Loan Party Repays any Eligible Secured Debt (other than Loans
hereunder), then the Borrower shall, within three Business Days after the date
of such Repayment, prepay Borrowings in an aggregate principal amount equal to
the product of (x) the sum of the aggregate principal amount of Loans
outstanding at the time, multiplied by (y) a fraction, the numerator of which is
the aggregate principal amount of such Repayment, and the denominator of which
is the aggregate outstanding principal amount of the Eligible Secured Debt that
was the subject of such Repayment (immediately prior to such Repayment);
provided that prepayments of Borrowings shall not be required pursuant to this
paragraph in respect of (i) any Repayment of Eligible Secured Debt at the
scheduled final maturity thereof or in accordance with regularly scheduled
amortization requirements prior to maturity, (ii) any Repayment of other
Eligible Secured Debt that constitutes a mandatory prepayment thereof in
accordance with paragraphs (b), (c) or (d) of this Section, (iii) a Qualified
Refinancing, or (iv) a mandatory prorata prepayment of any Eligible Secured Debt
(other than the Loans hereunder) as a result of corresponding provisions thereof
requiring a prorata payment thereof in the event of a prepayment of the Loans
hereunder.

          (f)  Prior to any optional or mandatory prepayment of Borrowings
hereunder, the Borrower shall select the Borrowing or Borrowings to be prepaid
and shall specify such selection in the notice of such prepayment pursuant to
paragraph (h) of this Section; provided that the Borrower shall select
                               --------
Borrowings to be prepaid such that each Lender shall receive its pro rata share
of such prepayment as provided in Section 2.16.

          (g)  The Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment hereunder not later than 11:00 a.m.,
New York City time, three Business Days before the date of prepayment.  Each
such notice shall be irrevocable and shall specify the prepayment date, the
principal amount of each Borrowing or portion thereof to be prepaid and, in the
case of a mandatory prepayment, a reasonably detailed calculation of the amount
of such prepayment.  Promptly following receipt of any such notice, the
Administrative Agent shall advise the Lenders of the contents thereof.  Each
partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of an advance of a Borrowing of the same Type as provided
in Section 2.02, except as necessary to apply fully the required amount of a
mandatory prepayment.  Each prepayment of a Borrowing shall be applied

                                       33
<PAGE>

ratably to the Loans included in the prepaid Borrowing.  Prepayments of
Borrowings shall be accompanied by the payment of accrued interest on the amount
prepaid.

          (h)  On the [*] anniversary of the date of this Agreement, the
Borrower will prepay Loans in an aggregate principal amount that is equal to the
amount by which (i) the aggregate principal amount of all Loans outstanding on
such date exceeds (ii) [*] of the aggregate Purchase Price theretofore paid to
Ericsson Wireless.

     Section 2.10  Fees.
                   ----

          (a)  The Borrower agrees to pay to the Administrative Agent for the
account of each Lender a commitment fee, which shall accrue at the Commitment
Fee Rate on the daily amount of the Commitment of such Lender during the period
from and including the Effective Date to but excluding the date on which the
Commitments terminate. Accrued commitment fees shall be payable in arrears on
the last day of March, June, September and December of each year and on the date
on which the Commitments terminate, commencing on the first such date to occur
after the Effective Date. All commitment fees shall be computed on the basis of
a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

          (b)  The Borrower agrees to pay to Ericsson for its own account, fees
in the amounts and at the times separately agreed.

          (c)  The Borrower agrees to pay to the Administrative Agent and the
Collateral Agent (if other than Ericsson) for its own account, fees in the
amounts and at the times separately agreed.

          (d)  All fees payable hereunder shall be paid on the dates due, in
immediately available funds, (i) to the applicable Agent, (ii) to Ericsson in
the case of fees payable to it, or (iii) to the Administrative Agent, in the
case of commitment fees, for distribution to the Lenders entitled thereto.  Fees
paid shall not be refundable under any circumstances.

     Section 2.11  Interest.
                   --------

          (a)  The Loans comprising each ABR Borrowing shall bear interest at
the Alternate Base Rate plus the Applicable Margin.

          (b)  The Loans comprising each LIBOR Borrowing shall bear interest at
the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus
the Applicable Margin.

          (c)  Notwithstanding the foregoing, if any principal of or interest on
any Loan or any fee or other amount payable by the Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to 2% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       34
<PAGE>

          (d)  All accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan; provided that (i) interest accrued
                                          --------
pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in
the event of any repayment or prepayment of any Loan, accrued interest on the
principal amount of such Loan repaid or prepaid shall be payable on the date of
such repayment or prepayment and (iii) in the event of any conversion of any
Loan prior to the end of the current Interest Period therefor, accrued interest
on such Loan shall be payable on the effective date of such conversion.

          (e)  All interest hereunder shall be computed on the basis of a year
of 360 days, except that interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

     Section 2.12  Alternate Rate of Interest. If prior to the commencement of
                   --------------------------
any Interest Period for a LIBOR Borrowing:

          (a)  the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not
exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or

          (b)  the Administrative Agent is advised by a majority in interest of
the Lenders participating in such Borrowing that the Adjusted LIBO Rate for such
Interest Period will not adequately and fairly reflect the cost to such Lenders
of making or maintaining their Loans included in such Borrowing for such
Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a LIBOR Borrowing shall be ineffective and
(ii) if any Borrowing Request requests a LIBOR Borrowing, such Borrowing shall
be made as an ABR Borrowing.

     Section 2.13  Increased Costs.
                   ---------------

          (a)  If any Change in Law shall:

                    (i)   impose, modify or deem applicable any reserve, special
     deposit or similar requirement against assets of, deposits with or for the
     account of, or credit extended by, any Lender (except any such reserve
     requirement reflected in the Adjusted LIBO Rate); or

                    (ii)  impose on any Lender or the London interbank market
     any other condition affecting this Agreement or LIBOR Loans made by such
     Lender;

                                       35
<PAGE>

                    and the result of any of the foregoing shall be to increase
     the cost to such Lender of making or maintaining any LIBOR Loan (or of
     maintaining its obligation to make any such Loan) or to reduce the amount
     of any sum received or receivable by such Lender hereunder (whether of
     principal, interest or otherwise), then the Borrower will pay to such
     Lender such additional amount or amounts as will compensate such Lender for
     such additional costs incurred or reduction suffered.

          (b)  If any Lender determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such
Lender's capital or on the capital of such Lender's holding company, if any, as
a consequence of this Agreement or the Loans made by such Lender to a level
below that which such Lender or such Lender's holding company could have
achieved but for such Change in Law (taking into consideration such Lender's
policies and the policies of such Lender's holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender or such
Lender's holding company for any such reduction suffered.

          (c)  A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

          (d)  Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender's right to
demand such compensation; provided that the Borrower shall not be required to
                          --------
compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than 180 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender's intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs
--------
or reductions is retroactive, then the 180 day period referred to above shall be
extended to include the period of retroactive effect thereof.

     Section 2.14  Break Funding Payments. In the event of (a) the payment of
                   ----------------------
any principal of any LIBOR Loan other than on the last day of an Interest Period
applicable thereto (including as a result of an Event of Default), (b) the
conversion of any LIBOR Loan other than on the last day of the Interest Period
applicable thereto, (c) the failure to borrow, convert, continue or prepay any
Loan on the date specified in any notice delivered pursuant hereto, or (d) the
assignment of any LIBOR Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Borrower pursuant to Section
2.17, then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event. In the case of a LIBOR Loan,
such loss, cost or expense to any Lender shall be deemed to include an amount
determined by such Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted LIBO Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such

                                       36
<PAGE>

principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar market.  A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error.  The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

     Section 2.15  Taxes.
                   -----

          (a)  Any and all payments by or on account of any obligation of the
Borrower hereunder or under any other Loan Document shall be made free and clear
of and without deduction for any Indemnified Taxes or Other Taxes; provided that
                                                                   --------
if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes
from such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent or Lender
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

          (b)  In addition, the Borrower shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

          (c)  The Borrower shall indemnify the Administrative Agent and each
Lender, within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent or such Lender
on or with respect to any payment by or on account of any obligation of the
Borrower hereunder or under any other Loan Document (including Indemnified Taxes
or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender, or by the Administrative Agent
on its own behalf or on behalf of a Lender, shall be conclusive absent manifest
error.

          (d)  As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower to a Governmental Authority, the Borrower shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e)  Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the United States of America, or
any treaty to which the United States of America is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate; provided that such Foreign Lender has
                                          --------
received written notice

                                       37
<PAGE>

from the Borrower advising it of the availability of such exemption or reduction
and supplying all applicable documentation.

     Section 2.16  Payments Generally; Pro Rata Treatment; Sharing of Set-Offs.
                   -----------------------------------------------------------

          (a)  The Borrower shall make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest or
fees, or of amounts payable under Section 2.13, 2.14 or 2.15, or otherwise)
prior to 12:00 (noon), New York time, on the date when due, in immediately
available funds, without setoff or counterclaim.  Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes of
calculating interest thereon.  All such payments shall be made to the
Administrative Agent at such account in New York, New York as the Administrative
Agent shall from time to time specify by notice, except that payments pursuant
to Sections 2.10(b), 2.10(c), 2.13, 2.14, 2.15 and 9.03 shall be made directly
to the Persons entitled thereto and payments pursuant to other Loan Documents
shall be made to the Persons specified therein.  The Administrative Agent shall
distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof.  If any payment
under any Loan Document shall be due on a day that is not a Business Day, the
date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for
the period of such extension.  All payments under each Loan Document shall be
made in dollars.

          (b)  Each repayment or prepayment of principal of the Loans hereunder,
or selection of Borrowings for repayment or prepayment, shall be made such that
the benefit of such repayment or prepayment is shared by the Lenders ratably in
accordance with the aggregate principal amount of their respective Loans then
outstanding.

          (c)  If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, interest and
fees then due hereunder, such funds shall be applied (i) first, towards payment
of interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, towards payment of principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal then due to such parties.

          (d)  If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Loans resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Loans of other Lenders to the extent necessary so that the
benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans; provided that (i) if any such participations are
                        --------
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any

                                       38
<PAGE>

payment made by the Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its Loans to any assignee
or participant, other than to the Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

          (e)  Unless the Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders hereunder that the Borrower will not make
such payment, the Administrative Agent may assume that the Borrower has made
such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation.

          (f)  Without limiting the generality of paragraph (a) above, the
Borrower's obligations to make each payment required to be made by it hereunder
or under any other Loan Document (whether of principal, interest, fees or
otherwise) shall be absolute and unconditional and shall not be subject to any
delay, reduction, set-off, counterclaim, defense or recoupment for any reason,
including any dispute with, breach of representation or warranty by or claim
against any supplier, manufacturer, installer, vendor or distributor, including
Ericsson Wireless.

     Section 2.17  Mitigation Obligations; Replacement of Lenders.
                   ----------------------------------------------

          (a)  If any Lender requests compensation under Section 2.13, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.15,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.13 or 2.15, as the case may be,
in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

          (b)  If any Lender requests compensation under Section 2.13, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.15,
then the Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained
in

                                       39
<PAGE>

Section 9.04), all its interests, rights and obligations under this Agreement
to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower
                                              --------
shall have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts) and (iii)
such assignment will result in a material reduction in such compensation or
payments.  A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

                                  ARTICLE III

                        Representations and Warranties
                        ------------------------------

     Each of Holdings and the Borrower represents and warrants to the
Administrative Agent and the Lenders that, as of the Effective Date and on and
as of the date of each Borrowing:

     Section 3.01  Organization; Powers.  Each of the Loan Parties is duly
                   --------------------
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry
on its business as now conducted and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

     Section 3.02  Authorization; Enforceability. The Transactions entered into
                   -----------------------------
or to be entered into by each Loan Party are within such Loan Party's powers and
have been duly authorized by all necessary corporate and, if required,
stockholder action. This Agreement has been duly executed and delivered by
Holdings and the Borrower and constitutes, and each other Loan Document to which
any Loan Party is or is to be a party constitutes (or, when executed and
delivered by it, will constitute) a legal, valid and binding obligation of
Holdings and the Borrower or such Loan Party (as the case may be), enforceable
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors' rights generally
and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law.

     Section 3.03  Governmental Approvals; No Conflicts. The Transactions (a) do
                   ------------------------------------
not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority, except such as have been obtained
or made and are in full force and effect and except filings necessary to perfect
Liens created under the Security Documents, (b) will not violate any applicable
law or regulation or the charter, by-laws or other organizational documents of
any Loan Party or any order of any Governmental Authority, (c) will not violate
or result in a default under any indenture, agreement or other instrument
binding upon any Loan Party or its assets (including, without limitation, any
documents or agreements governing the Lucent Loan Indebtedness), or give rise to
a right thereunder to require

                                       40
<PAGE>

any payment to be made by any Loan Party, and (d) will not result in the
creation or imposition of any Lien on any asset of any Loan Party, except Liens
created under the Security Documents.

     Section 3.04  Financial Condition; No Material Adverse Change.
                   -----------------------------------------------

          (a)  The Parent has heretofore furnished to the Lenders its
consolidated balance sheet and statements of income, stockholders equity and
cash flows (i) as of and for the fiscal year ended August 31, 1999, reported on
by PricewaterhouseCoopers LLP, independent public accountants, and (ii) as of
and for the fiscal quarter and the portion of the fiscal year ended May 31,
2000, certified by its chief financial officer. Such financial statements
present fairly, in all material respects, the financial position and results of
operations and cash flows of the Parent and its consolidated subsidiaries as of
such dates and for such periods in accordance with GAAP, subject to year-end
audit adjustments and the absence of footnotes in the case of the statements
referred to in clause (ii) above.

          (b)  The Borrower has heretofore furnished to the Lenders its
consolidated balance sheet and statement of operations, stockholder's equity and
cash flows as of and for the fiscal year ended August 31, 1999, and as of and
for the six-month period ended June 30, 2000, certified by its chief financial
officer. Such financial statements present fairly, in all material respects, the
financial position and results of operations and cash flows of the Borrower and
its consolidated subsidiaries as of such dates and for such periods in
accordance with GAAP.

          (c)  Since June 30, 2000, there has been no material adverse change in
the business, assets, operations, prospects or condition (financial or
otherwise) of the Borrower and the Subsidiary Loan Parties, taken as a whole.

     Section 3.05  Properties and Licenses.
                   -----------------------

          (a)  Each of the Borrower and the Subsidiary Loan Parties has good
title to, or valid leasehold interests in, all the real and personal property
material to its business (other than licenses, which are addressed in paragraph
(d) of this Section), except for minor defects in title that do not interfere
with its ability to conduct its business as currently conducted or proposed to
be conducted.

          (b)  Each of the Borrower and the Subsidiary Loan Parties owns, or is
licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by the
Borrower and the Subsidiary Loan Parties does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

          (c)  Schedule 3.05A sets forth the address of each real property that
is owned or leased by the Borrower or any of its Subsidiaries as of the date of
this Agreement after giving effect to the Transactions; provided, however, that
                                                        --------  -------
such Schedule is required to disclose only leased properties which constitute
MSC switch locations and leased properties whereat personal property or fixtures
having an aggregate value of $1,000,000 or more are located.  As of the
Effective Date, neither Holdings, the Borrower nor any of its Subsidiaries has
received notice of, or has knowledge of, any pending or contemplated
condemnation proceeding affecting any Mortgaged Property or any sale or
disposition thereof in lieu of condemnation.  Neither any

                                       41
<PAGE>

Mortgaged Property nor any interest therein is subject to any right of first
refusal, option or other contractual right to purchase such Mortgaged Property
or interest therein.

          (d)  Schedule 3.05B sets forth all FCC Licenses existing as of the
date of this Agreement (and the respective holders of such FCC Licenses) and all
other licenses and permits in effect as of the date of this Agreement that are
material to the business of the Borrower and the Subsidiary Loan Parties. Each
of the FCC Licenses, and each other license or permit that is material to the
business of the Borrower and the Subsidiary Loan Parties, is valid and in full
force and effect, and the Borrower and the Subsidiary Loan Parties are in
compliance with the terms and conditions thereof except where the failure to so
comply could not, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Effect. The Borrower has the right to utilize all
FCC Licenses held by the License Subsidiaries.

     Section 3.06  Litigation and Environmental Matters.
                   ------------------------------------

          (a)  There are no actions, suits or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of
Holdings or the Borrower, threatened against or affecting any Loan Party (i) as
to which there is a reasonable possibility of an adverse determination and that,
if adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that involve any of the Loan Documents or the Transactions.

          (b)  Except for the Disclosed Matters and except with respect to any
other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, none of the Loan Parties (i)
has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law,
(ii) has become subject to any Environmental Liability, (iii) has received
notice of any claim with respect to any Environmental Liability or (iv) knows of
any basis for any Environmental Liability.

          (c)  Since the date of this Agreement, there has been no change in the
status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

     Section 3.07  Compliance with Laws and Agreements. Each of the Loan Parties
                   -----------------------------------
is in compliance with all laws, regulations and orders of any Governmental
Authority applicable to it or its property and all indentures, agreements and
other instruments binding upon it or its property (including, without
limitation, all agreements, instruments or documents governing the Lucent Loan
Indebtedness or any other Eligible Secured Debt), except where the failure to do
so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.  No Default has occurred and is continuing.

     Section 3.08  Investment and Holding Company Status. None of the Loan
                   -------------------------------------
Parties is (a) an "investment company" as defined in, or subject to regulation
under, the Investment Company Act of 1940 or (b) a "holding company" or a
"subsidiary company" of a "holding company" or an "affiliate" of a "holding
company" or a "public utility" as defined in, or subject to regulation under,
the Public Utility Holding Company Act of 1935, as amended.

                                       42
<PAGE>

     Section 3.09  Taxes. Each of the Loan Parties has timely filed or caused to
                   -----
be filed all Tax returns and reports required to have been filed and has paid or
caused to be paid all Taxes required to have been paid by it, except (a) Taxes
that are being contested in good faith by appropriate proceedings and for which
the applicable Loan Party has set aside on its books adequate reserves or (b)
the filing of state or local Tax returns and reports, or the payment of state or
local Taxes, to the extent that the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

     Section 3.10  ERISA. No ERISA Event has occurred or is reasonably expected
                   -----
to occur that, when taken together with all other such ERISA Events for which
liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements reflecting such amounts, exceed by more
than $1,000,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $5,000,000 the fair
market value of the assets of all such underfunded Plans.

     Section 3.11  Disclosure.  Holdings and the Borrower have disclosed to the
                   ----------
Lenders all agreements, instruments and corporate or other restrictions to which
any of the Loan Parties is subject, and all other matters known to any of them,
that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect.  None of the reports, financial statements,
certificates or other information furnished by or on behalf of any Loan Party to
the Administrative Agent or any Lender in connection with the negotiation of
this Agreement or any other Loan Document or delivered hereunder or thereunder
(as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that, with respect to projected financial
                           --------
information, Holdings and the Borrower represent only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the
time.

     Section 3.12  Subsidiaries.  Holdings does not have any subsidiaries other
                   ------------
than the Borrower and the Borrower's Subsidiaries.  Schedule 3.12 sets forth as
of the Effective Date (a) the name of, and the ownership interest of the
Borrower in, each Subsidiary of the Borrower and (b) the name of, and the
ownership interest of the Parent in, each License Subsidiary.

     Section 3.13  Insurance.  Schedule 3.13 sets forth a description of all
                   ---------
insurance maintained by or on behalf of the Borrower and the Subsidiary Loan
Parties as of the Effective Date.  As of the Effective Date, all premiums then
due and payable in respect of such insurance have been paid.

     Section 3.14  Labor Matters. As of the Effective Date, there are no
                   -------------
strikes, lockouts or slowdowns against any Loan Party pending or, to the
knowledge of Holdings or the Borrower, threatened. The hours worked by and
payments made to employees of the Loan Parties have not been in violation of the
Fair Labor Standards Act or any other applicable Federal, state, local or

                                       43
<PAGE>

foreign law dealing with such matters. All payments due from any Loan Party, or
for which any claim may be made against any Loan Party, on account of wages and
employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of the applicable Loan Party. The
consummation of the Transactions will not give rise to any right of termination
or right of renegotiation on the part of any union under any collective
bargaining agreement to which any Loan Party is bound.

     Section 3.15  Purchase Agreement. The Purchase Agreement is in full force
                   ------------------
and effect. The Borrower is in compliance in all material respects with the
terms and conditions of the Purchase Agreement.

     Section 3.16  Year 2000.  Any reprogramming required to permit the proper
                   ---------
functioning, in and following the year 2000, of (a) the computer systems of the
Borrower and its Subsidiaries (including any computer systems of the Parent that
are used in connection with the business of the Borrower and its Subsidiaries)
and (b) equipment containing embedded microchips (including systems and
equipment supplied by others or with which the Borrower's systems interface) and
the testing of all such systems and equipment, as so reprogrammed, have been
completed.  The cost to the Borrower and its Subsidiaries of such reprogramming
and testing and of the reasonably foreseeable consequences of year 2000 to the
Borrower and its Subsidiaries (including reprogramming errors and the failure of
others' systems or equipment) will not result in a Default or a Material Adverse
Effect.

     Section 3.17  Certain Matters Relating to ChaseTel.
                   ------------------------------------

     (a)  The ChaseTel Acquisition has been consummated in compliance with
Section 6.04 of the Lucent Credit Agreement and in all material respects in
accordance with the ChaseTel Purchase Agreement, and, as a result, no "Loans"
(as such term is defined in the Lucent Credit Agreement) constitute "ChaseTel
Loans" (as such term is defined in the Lucent Credit Agreement).

     (b)  The ChaseTel Credit Agreement has been terminated and all ChaseTel
Indebtedness existing on March 17, 2000 (including all ChaseTel Indebtedness
arising under the ChaseTel Credit Agreement) has been paid or forgiven in full;
provided, however, that the ChaseTel Earnout remains unpaid and is payable in
--------
accordance with the ChaseTel Purchase Agreement. The maximum amount of the
ChaseTel Earnout is the sum of $41,000,000 plus the aggregate amount of the
legal fees, accounting fees and severance payments to employees as provided in
                                                                   --------
the ChaseTel Purchase Agreement.

     (c)  All Indebtedness of ChaseTel constituting the "Permitted ChaseTel
Financing," as such term is defined in the Lucent Credit Agreement, has been
paid or forgiven in full.

     (d) All Liens securing any of the Indebtedness of ChaseTel referred to in
this Section 3.17 have been fully released.

     Section 3.18  Other Credit Agreements. A true, correct and complete
                   -----------------------
photocopy of the Lucent Credit Agreement, the Nortel Credit Agreement, each
other loan, credit or similar agreement relating to any other Eligible Secured
Debt and all other agreements, instruments or documents of a material nature
relating to any of the foregoing (other than purchase agreements

                                       44
<PAGE>

and supply agreements and agreements, documents, instruments and certificates
executed and/or delivered pursuant thereto) (collectively, the "Other Loan
                                                                ----------
Documents") has been previously delivered to the Administrative Agent.
---------

     Section 3.19  Eligible Secured Debt.  The Loans made and contemplated to be
                   ---------------------
made in accordance with this Agreement constitute a part of the "Obligations",
as such term is defined in the Collateral Agency Agreement, and are permitted to
be secured by all Collateral in accordance with the Collateral Agency Agreement.

                                  ARTICLE IV

                                  Conditions
                                  ----------

     Section 4.01  Effective Date. This Agreement (including, without
                   --------------
limitation, the obligations of the Lenders to make Loans hereunder) shall not
become effective until the date on which each of the following conditions is
satisfied (or waived in accordance with Section 9.02):

          (a)  The Administrative Agent (or its counsel) shall have received
from each party hereto either (i) a counterpart of this Agreement signed on
behalf of such party or (ii) written evidence satisfactory to the Administrative
Agent (which may include telecopy transmission of a signed signature page of
this Agreement) that such party has signed a counterpart of this Agreement.

          (b)  The Lenders shall be satisfied with the corporate and legal
structure and capitalization of Holdings, the Borrower and the Subsidiary Loan
Parties, including the charter and bylaws of Holdings, the Borrower and each
Subsidiary Loan Party and each agreement or instrument evidencing Indebtedness.

          (c)  All Equipment Site Interests (if any) shall be owned by Real
Estate Subsidiaries in accordance with Section 6.12. Each FCC License shall be
owned by a License Subsidiary in accordance with Section 6.13. No event shall
have occurred that would subject any FCC License to revocation by the FCC.

          (d)  The Purchase Agreement and the first amendment thereto shall have
been executed and delivered by the Borrower and Ericsson Wireless and shall be
in full force and effect.

          (e)  The Administrative Agent shall have received a favorable written
opinion or opinions (addressed to the Agents and the Lenders and dated the
Effective Date) of one or more counsel for the Loan Parties reasonably
satisfactory to the Administrative Agent, and the Borrower hereby request its
counsel to deliver such opinions.

     The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding.

     Section 4.02  Initial Availability Date. The obligations of the Lenders to
                   -------------------------
make Loans hereunder on the occasion of the first Borrowing hereunder shall be
subject to the occurrence of

                                       45
<PAGE>

the Effective Date and the satisfaction (or waiver in accordance with Section
9.02) of the following conditions in addition to those set forth in Section
4.01:

          (a)  The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request
relating to the organization, existence and good standing of the Loan Parties,
the authorization of the Transactions and any other legal matters relating to
the Loan Parties, the Loan Documents or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.

          (b)  The Administrative Agent shall have received a certificate, dated
the Effective Date and signed by the President, a Vice President or a Financial
Officer of the Borrower, confirming compliance with the conditions set forth in
paragraphs (a) and (b) of Section 4.03.

          (c)  The Agents and Ericsson shall have received all fees and other
amounts due and payable to them hereunder on or prior to the Initial
Availability Date, including, to the extent invoiced, reimbursement or payment
of all expenses required to be reimbursed or paid by the Borrower hereunder or
under any other Loan Document.

          (d)  The Collateral and Guarantee Requirement shall have been
satisfied and the Agents shall have received a completed Perfection Certificate
dated the Effective Date and signed by a Financial Officer of the Borrower,
together with all attachments contemplated thereby, including (i) the results of
a search of the Uniform Commercial Code (or equivalent) filings made with
respect to the Borrower and the Subsidiary Loan Parties in the jurisdictions
contemplated by the Perfection Certificate and (ii) copies of the financing
statements (or similar documents) disclosed by such search and evidence
reasonably satisfactory to the Agents that the Liens indicated by such financing
statements (or similar documents) are permitted by Section 6.02 or have been
released.

          (e)  The Administrative Agent shall have received evidence
satisfactory to it that (i) the insurance required by Section 5.07 is in effect,
(ii) the Collateral Agent has been named as an additional insured and loss payee
under all insurance policies to be maintained with respect to the properties of
the Borrower and the Subsidiary Loan Parties constituting the Collateral and
(iii) the Administrative Agent has been named as loss payee under all such
liability insurance policies required to be so maintained.

          (f)  The Collateral Agent shall have received a counterpart of the
Subordination Agreement duly executed and delivered on behalf of each Loan
Party.

          (g)  The Lenders shall have received a permit issued by the California
Department of Corporations pursuant to Section 25113 of the California
Corporation Code exempting the Loans from California usury laws without
condition or qualification except as may be reasonably acceptable to the
Lenders, or, if such permit is not issued, the Lenders shall be reasonably
satisfied that California usury laws shall not be applicable to the Loans.

          (h)  The Parent shall have obtained all consents, waivers and
amendments required under all agreements and documents governing the Lucent Loan
Indebtedness and in connection with the Transactions, in each case on terms
reasonably satisfactory to the Lenders.

                                       46
<PAGE>

          (i)  The Lucent Credit Agreement shall have been amended such that (i)
clause (i) of the proviso of the definition of the term "Eligible Secured Debt"
therein shall be identical to clause (i) of the proviso of the definition of the
                              ----------
term "Eligible Secured Debt" contained herein, (ii) the final proviso contained
in the definition of the term "Permitted Third Party Payments" therein shall be
substantively identical to the proviso contained in the definition of the term
"Permitted Third Party Payments" contained herein, (iii) the definition of the
term "Subscribers" therein shall be identical to the definition of the term
"Subscribers" contained herein, (iv) Section 6.15 thereof shall be identical to
Section 6.15 hereof, and (v) the second sentence of Section 6.22 thereof shall
------------
be substantively identical to the second sentence of Section 6.22 hereof, and
                                                     ------------
Section 8(b) of the Parent Agreement dated as of November 24, 1999 between the
Parent and Lucent shall have been amended to be substantively identical to
Section 1(b) of the Parent Agreement.

          (j)  The Collateral Agent shall have received control agreements in
form and substance reasonably satisfactory to the Administrative Agent pursuant
to which the Collateral Agent's Lien in and to the securities accounts of the
Borrower having an aggregate value of approximately $380,000,000 (as of August
24, 2000) shall have been perfected.

          (k)  Each of (i) the Collateral Agency Agreement in the form of
Exhibit A hereto, (ii) the amendment to the Indemnity, Subrogation and
Contribution Agreement included as part of Exhibit B hereto, (iii) the Parent
Agreement in the form of Exhibit C hereto, (iv) the Parent Guarantee in the form
of Exhibit D hereto, and (v) the amendment to the Subordination Agreement
included as a part of Exhibit E hereto, shall have been executed and delivered
by all parties thereto.

          (l)  The Nortel Credit Agreement and the Lucent Credit Agreement shall
have been duly executed by the parties thereto and shall be in substantially the
form of the version thereof delivered to Ericsson on September 25, 2000, in the
case of the Nortel Credit Agreement, and October 20, 2000, in the case of the
Lucent Credit Agreement, and the lenders under such agreements shall have
confirmed in a manner reasonably satisfactory to the Administrative Agent that
the terms and conditions of the Loans are not less favorable to the Borrower in
any material respect than, and are not inconsistent with, the terms and
conditions of the Indebtedness outstanding under their respective agreements.

     Notwithstanding the foregoing, the Lenders shall not be required to make
Loans hereunder unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 9.02) at or prior to 3:00 p.m., New York time, on December
31, 2000 (and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).

     Section 4.03  Each Borrowing. The obligation of each Lender to make a Loan
                   --------------
on the occasion of any Borrowing is subject to the satisfaction of the following
conditions:

          (a)  At the time of and immediately after giving effect to such
Borrowing, the representations and warranties of the Loan Parties set forth in
the Loan Documents shall be true and correct on and as of the date of such
Borrowing.

          (b)  At the time of and immediately after giving effect to such
Borrowing, no Default shall have occurred and be continuing.

                                       47
<PAGE>

          (c)  At the time of and immediately after giving effect to such
Borrowing, (i) either (A) the aggregate principal amount of all Loans made
hereunder (whether or not repaid) shall not exceed (I) if such time is prior to
the second anniversary of the date of this Agreement, [*] of the sum of the
aggregate Purchase Price payments made to Ericsson Wireless at or prior to such
time, plus [*], and (II) otherwise [*] of the sum of the aggregate
      ----
Purchase Price payments made to Ericsson Wireless at or prior to such time or
(B) the proceeds of such Borrowing are being used solely to pay all or any
portion of the Purchase Price theretofore unpaid, (ii) the ratio of Total
Indebtedness to Total Contributed Capital shall not exceed 2.0 to 1.0 and (iii)
the aggregate principal amount of all Eligible Secured Debt described in clauses
(a), (b) and (c) of the definition of "Eligible Secured Debt" that has been
incurred (on a cumulative basis, whether or not such Eligible Secured Debt
remains outstanding) shall not exceed $1,845,000,000.

          (d)  In the case of a Borrowing to finance the Purchase Price of any
assets, a License Subsidiary shall have a valid FCC License for the geographic
market in which such assets are to be installed or operated.

     Each Borrowing shall be deemed to constitute a representation and warranty
by the Borrower on the date thereof as to the matters specified in paragraphs
(a), (b), (c) and (d) of this Section.

                                   ARTICLE V

                             Affirmative Covenants
                             ---------------------

     Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid in
full, each of Holdings and the Borrower covenants and agrees with the Lenders
that:

     Section 5.01  Financial Statements and Other Information. The Borrower will
                   ------------------------------------------
furnish to the Administrative Agent and each Lender:

          (a)  within 90 days after the end of each fiscal year of the Borrower
(A) the audited consolidated balance sheets of each of the Parent and its
subsidiaries and of the Borrower and its Subsidiaries, respectively, and their
respective 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
PricewaterhouseCoopers LLP or other independent public accountants of recognized
national standing (without a "going concern" or like qualification or exception
and 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 each of
the Parent and its subsidiaries and of the Borrower and its Subsidiaries,
respectively, in each case on a consolidated basis in accordance with GAAP
consistently applied and (B) a combined consolidated balance sheet of the
Borrower and the Subsidiary Loan Parties and related statements of operations,
stockholders' equity and cash flows, for the same period as (and prepared based
on) the financial statements referred to in clause (A) above, consolidated as
though all the License Subsidiaries were

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       48
<PAGE>

subsidiaries of the Borrower, and prepared by the same firm of independent
public accountants as reported on such financial statements;

          (b)  within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of the Borrower, the consolidated balance sheets of
each of the Parent and its subsidiaries and of the Borrower and its
Subsidiaries, respectively, and their respective 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
each of the Parent and its subsidiaries and of the Borrower and its
Subsidiaries, respectively, in each case on a consolidated basis in accordance
with GAAP consistently applied, subject to normal year-end audit adjustments and
the absence of footnotes and (B) a combined consolidated balance sheet of the
Borrower and the Subsidiary Loan Parties and related statements of operations,
stockholders' equity and cash flows, for the same period as (and prepared based
on) the financial statements referred to in clause (A) above, consolidated as
though all the License Subsidiaries were subsidiaries of the Borrower, and
prepared and certified by one of the Borrower's Financial Officers;

          (c)  within 30 days after the end of each fiscal month of the Borrower
(other than after the end of each fiscal quarter), the consolidated balance
sheet of the Borrower and its Subsidiaries and related statements of operations,
stockholders' equity and cash flows as of the end of and for such fiscal month
and the then elapsed portion of the fiscal year, all certified by one of its
Financial Officers as presenting in all material respects the financial
condition and results of operations of the Borrower 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;

          (d)  concurrently with any delivery of the Borrower's financial
statements under clause (a) or (b) above, a certificate of a Financial Officer
of the Borrower (i) certifying as to whether a Default has occurred and, if a
Default has occurred, specifying the details thereof and any action taken or
proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Sections 6.15, 6.18, 6.19,
6.20 and 6.21, and (iii) stating whether any change in GAAP or in the
application thereof has occurred since the date of the Borrower's audited
financial statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements
accompanying such certificate;

          (e)  concurrently with any delivery of financial statements under
clause (a) above, a certificate of the accounting firm that reported on such
financial statements stating whether they obtained knowledge during the course
of their examination of such financial statements of any Default (which
certificate may be limited to the extent required by accounting rules or
guidelines);

                                       49
<PAGE>

          (f)  promptly after the same become available but in any event within
30 days after the end of each fiscal year of the Borrower, the Business Plan for
the current fiscal year and updated financial projections through the Maturity
Date;

          (g)  promptly after the end of (i) each fiscal year of the Borrower
and (ii) each fiscal quarter a certificate signed on behalf of the Borrower by
the President, a Vice President or a Financial Officer of the Borrower, setting
forth the number of Covered POPS and the number of Subscribers as of the end of
such fiscal year;

          (h)  promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by any
Loan Party with the Securities and Exchange Commission, or any Governmental
Authority succeeding to any or all of the functions of said Commission, or with
any national securities exchange, or distributed by the Parent to its
shareholders generally or by Holdings to its securityholders generally, as the
case may be;

          (i)  promptly after execution thereof, copies of any agreement,
instrument or other document evidencing or governing any other Eligible Secured
Debt and of any amendment or modification thereto or waiver thereunder; and

          (j)  promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of Holdings,
the Borrower or any Subsidiary, or compliance with the terms of any Loan
Document, as either Agent or any Lender may reasonably request.

     Section 5.02  Notices of Material Events.  The Borrower will furnish to the
                   --------------------------
Administrative Agent and each Lender prompt written notice of the following:

          (a)  the occurrence of any Default;

          (b)  the filing or commencement of any action, suit or proceeding by
or before any arbitrator or Governmental Authority against or affecting the
Borrower or any Affiliate thereof that, if adversely determined, could
reasonably be expected to result in a Material Adverse Effect;

          (c)  the occurrence of any ERISA Event that, alone or together with
any other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower and the Subsidiary Loan Parties in an
aggregate amount exceeding $1,000,000; and

          (d)  any other development that results in, or could reasonably be
expected to result in, a Material Adverse Effect.

     Each notice delivered under this Section shall be accompanied by a
statement of a Financial Officer or other executive officer of the Borrower
setting forth the details of the event or development requiring such notice and
any action taken or proposed to be taken with respect thereto.

                                       50
<PAGE>

     Section 5.03  Information Regarding Collateral.
                   --------------------------------

          (a)  The Borrower will furnish to the Agents prompt written notice of
any change (i) in the Borrower's or any Subsidiary Loan Party's corporate name
or in any trade name used to identify it in the conduct of its business or in
the ownership of its properties, (ii) in the location of the Borrower's or any
Subsidiary Loan Party's chief executive office, its principal place of business,
any office in which it maintains books or records relating to the Collateral or
any premises where any asset constituting Collateral is installed or situated
(including the installation of any asset constituting Collateral at a location
where Collateral has not previously been located), (iii) in the Borrower's or
any Subsidiary Loan Party's identity or corporate structure or (iv) in the
Borrower's or any Subsidiary Loan Party's Federal Taxpayer Identification
Number. The Borrower agrees not to effect or permit any change referred to in
the preceding sentence unless all filings have been made under the Uniform
Commercial Code or otherwise that are required in order for the Collateral Agent
to continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral. The Borrower also agrees
promptly to notify the Agents if any material portion of the Collateral is
damaged or destroyed.

          (b)  Each year, at the time of delivery of annual financial statements
for the Borrower with respect to the preceding fiscal year pursuant to clause
(a) of Section 5.01, the Borrower shall deliver to the Agents a certificate of a
Financial Officer of the Borrower (i) setting forth the information required
pursuant to Section 2 of the Perfection Certificate or confirming that there has
been no change in such information since the date of the Perfection Certificate
delivered on the Effective Date or the date of the most recent certificate
delivered pursuant to this Section and (ii) certifying that all Uniform
Commercial Code financing statements (including fixture filings, as applicable)
or other appropriate filings, recordings or registrations, including all
refilings, rerecordings and reregistrations, containing a description of the
Collateral have been filed of record in each governmental, municipal or other
appropriate office in each jurisdiction identified pursuant to clause (i) above
to the extent necessary to protect and perfect the security interests under the
Security Agreement for a period of not less than 18 months after the date of
such certificate (except as noted therein with respect to any continuation
statements to be filed within such period).

     Section 5.04  Existence; Conduct of Business.  Each of Holdings and the
                   ------------------------------
Borrower will, and will cause each of the Subsidiary Loan Parties to, do or
cause to be done all things necessary to preserve, renew and keep in full force
and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of the business of the Borrower and the
Subsidiary Loan Parties, taken as a whole; provided that the foregoing shall not
                                           --------
prohibit any merger, consolidation, liquidation or dissolution permitted under
Section 6.03.

     Section 5.05  Payment of Obligations. Each of Holdings and the Borrower
                   ----------------------
will, and will cause each of the Subsidiary Loan Parties to, pay its
Indebtedness and other obligations, including Tax liabilities, before the same
shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary Loan Party has set aside on its books adequate
reserves with respect thereto in accordance with GAAP, (c) such contest
effectively suspends collection of the contested obligation and the enforcement
of any Lien securing such obligation and (d) failure to

                                       51
<PAGE>

make payment pending the resolution of such contest could not reasonably be
expected to result in a Material Adverse Effect.

     Section 5.06  Maintenance of Properties.  The Borrower will, and will cause
                   -------------------------
each of the Subsidiary Loan Parties to, keep and maintain all property material
to the conduct of its business in good working order and condition, ordinary
wear and tear excepted.

     Section 5.07  Insurance.
                   ---------

          (a)  The Borrower will, and will cause each of the Subsidiary Loan
Parties to, maintain, with financially sound and reputable insurance companies,
insurance in such amounts and against such risks (including fire and other risks
insured by extended coverage) as are customarily maintained by companies engaged
in the same or similar businesses operating in the same or similar locations,
including public liability insurance against claims for personal injury, death
or property damage occurring upon, about or in connection with the use of any
properties owned, occupied or controlled by it as well as such other insurance
as may be required by law.

          (b)  All policies of casualty insurance maintained by or for the
benefit of the Borrower or any Subsidiary Loan Party with respect to any of the
Collateral shall be endorsed or otherwise amended to include a "standard" or
"New York" lender's loss payable endorsement, in favor of and satisfactory to
the Collateral Agent, which endorsement shall provide that the insurance carrier
shall pay all proceeds otherwise payable to any Loan Party under such policies
directly to the Collateral Agent. All such policies also shall provide that none
of the Loan Parties, the Administrative Agent, the Collateral Agent nor any
other party shall be a co-insurer thereunder and shall contain a "Replacement
Cost Endorsement", without any deduction for depreciation, "mortgagee's
interest" and/or "breach of warranty coverage" and such other provisions as the
Administrative Agent or the Collateral Agent may reasonably require from time to
time to protect the interests of the Lenders. Each such policy also shall
provide that it shall not be canceled, modified or not renewed (i) by reason of
nonpayment of premium except upon not less than 10 days' prior written notice
thereof by the insurer to the Administrative Agent and the Collateral Agent
(giving the Administrative Agent and the Collateral Agent the right to cure
defaults in the payment of premiums) or (ii) for any other reason except upon
not less than 30 days' prior written notice thereof by the insurer to the
Administrative Agent and the Collateral Agent. The Borrower shall deliver to the
Administrative Agent and the Collateral Agent, prior to the cancellation,
modification or nonrenewal of any such policy of insurance, a copy of a renewal
or replacement policy (or other evidence of renewal of a policy previously
delivered to the Administrative Agent and the Collateral Agent) together with
evidence satisfactory to the Administrative Agent and the Collateral Agent of
payment of the premium therefor.

          (c)  The Borrower shall notify the Administrative Agent and the
Collateral Agent immediately whenever any separate insurance concurrent in form
or contributing in the event of loss with that required to be maintained under
this Section is taken out by any Loan Party, and shall promptly deliver to the
Administrative Agent and the Collateral Agent a duplicate original copy of such
policy or policies.

     Section 5.08  Books and Records; Inspection Rights. Each of Holdings and
                   ------------------------------------
the Borrower will, and will cause each of the Subsidiary Loan Parties to, keep
proper books of

                                       52
<PAGE>

record and account in which full, true and correct entries are made of all
dealings and transactions in relation to its business and activities. Each of
Holdings and the Borrower will, and will cause each of the Subsidiary Loan
Parties to, permit any representatives designated by either Agent or any Lender,
upon reasonable prior notice, to visit and inspect its properties, to examine
and make extracts from its books and records, and to discuss its affairs,
finances and condition with its officers and independent accountants, all during
normal business hours but as often as reasonably requested.

     Section 5.09  Compliance with Laws and Agreements. Each of Holdings and the
                   -----------------------------------
Borrower will, and will cause each of the Subsidiary Loan Parties to, comply
with all laws, rules, regulations and orders of any Governmental Authority
(including ERISA and all Environmental Laws) applicable to it or its property
and all indentures, agreements and other instruments binding upon it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect.

     Section 5.10  Use of Proceeds. The proceeds of the Loans will be used (a)
                   ---------------
to make payments in respect of the Purchase Price and Permitted Third Party
Payments and (b) to pay fees payable under Sections 2.10(a), 2.10(b) and
                                           ----------------  -------
2.10(c), interest payable to Ericsson, the Agent or the Lenders under this
-------
Agreement and out-of-pocket expenses incurred in connection with the
negotiation, execution and delivery of the Loan Documents; provided, however,
                                                           --------  -------
that (i) the equipment, goods and/or services financed with or constituting
Permitted Third Party Payments shall be used solely in the markets which are
generally utilizing equipment provided by Ericsson Wireless (as opposed to
markets which are generally utilizing equipment provided by Lucent, Nortel or
other competitors of Ericsson Wireless) and (ii) proceeds of Loans shall not be
used to purchase an FCC License as referred to in clause (b) of the definition
of "Permitted Third Party Payments" unless such FCC License is for a market that
is to generally utilize equipment provided by Ericsson Wireless (as opposed to a
market that is to generally utilize equipment provided by competitors of
Ericsson Wireless).

     Section 5.11  Additional Subsidiaries.  If any additional Subsidiary Loan
                   -----------------------
Party is formed or acquired after the Effective Date, the Borrower will, within
three Business Days after such Subsidiary Loan Party is formed or acquired, (a)
notify the Agents and the Lenders thereof, (b) cause the Collateral and
Guarantee Requirement to be satisfied with respect to such Subsidiary Loan Party
and with respect to any Equity Interest in or Indebtedness of such Subsidiary
Loan Party owned by or on behalf of any Loan Party and (c) cause such Subsidiary
Loan Party to become a party to the Subordination Agreement.

     Section 5.12  Further Assurances.
                   ------------------

          (a)  Each of Holdings and the Borrower will, and will cause each
Subsidiary Loan Party to, execute any and all further documents, financing
statements, agreements and instruments, and take all such further actions
(including the filing and recording of financing statements, fixture filings,
mortgages, deeds of trust and other documents), which may be required under any
applicable law, or which either Agent or the Required Lenders may reasonably
request, to cause the Collateral and Guarantee Requirement to be and remain
satisfied, all at the expense of the Loan Parties. The Borrower also agrees to
provide to the

                                       53
<PAGE>

Agents, from time to time upon request, evidence reasonably satisfactory to the
Agents as to the perfection and priority of the Liens created or intended to be
created by the Security Documents.

          (b)  If any material assets (including any real property or
improvements thereto or any interest therein, but excluding Equipment Site
Interests acquired by Real Estate Subsidiaries) are acquired by the Borrower or
any Subsidiary Loan Party after the Effective Date (other than assets
constituting Collateral under the Security Agreement that become subject to the
Lien of the Security Agreement upon acquisition thereof), the Borrower will
notify the Agents and the Lenders thereof, and, if requested by the
Administrative Agent or the Required Lenders, the Borrower will cause such
assets to be subjected to a Lien securing the Obligations and will take, and
cause the Subsidiary Loan Parties to take, such actions as shall be necessary or
reasonably requested by the Administrative Agent to grant and perfect such
Liens, including actions described in paragraph (a) of this Section, all at the
expense of the Loan Parties.

          (c)  Each of Holdings and the Borrower will, and will cause each
Subsidiary Loan Party to, ensure that the Loans made from time to time pursuant
to this Agreement, and all "Permitted Refinancings" (as such term is defined in
the Collateral Agency Agreement) of such Loans, shall at all times constitute
Eligible Secured Debt and are permitted to be incurred and secured by all
Collateral in accordance with the Collateral Agency Agreement.

     Section 5.13  Casualty and Condemnation.
                   -------------------------

          (a)  The Borrower will furnish to the Agents and the Lenders prompt
written notice of any casualty or other damage to any portion of any Collateral
or the commencement of any action or proceeding for the taking of any Collateral
or any part thereof or interest therein under power of eminent domain or by
condemnation or similar proceeding.

          (b)  If any event described in paragraph (a) of this Section results
in Net Proceeds (whether in the form of insurance proceeds, condemnation award
or otherwise), the Collateral Agent is authorized to collect such Net Proceeds
and, if received by the Borrower or any Subsidiary Loan Party, such Net Proceeds
shall be paid over to the Collateral Agent. All such Net Proceeds retained by or
paid over to the Collateral Agent shall be held by the Collateral Agent and
released from time to time to pay the costs of repairing, restoring or replacing
the affected property or purchasing additional property constituting Collateral
in accordance with the terms of this Agreement and the applicable provisions of
the Security Documents, subject to the provisions of the Security Documents
regarding application of such Net Proceeds during a Default.

          (c)  If any Net Proceeds retained by or paid over to the Collateral
Agent as provided above continue to be held by the Collateral Agent on the date
that any prepayment is due pursuant to Section 2.09(b) in respect of the event
resulting in such Net Proceeds, then such Net Proceeds shall be applied to
prepay Borrowings as provided in Section 2.09(b).

     Section 5.14  Interest Rate Protection.  After the consolidated Long-Term
                   ------------------------
Indebtedness (excluding Primary Subordinated Obligations) of the Borrower and
the Subsidiary Loan Parties exceeds $225,000,000, the Borrower will from time to
time enter into and maintain in effect one or more Hedging Agreements
satisfactory to the Required Lenders, the effect of which shall be

                                       54
<PAGE>

to fix or limit the interest cost to the Borrower and the Subsidiary Loan
Parties with respect to such portion of their Long-Term Indebtedness as shall be
necessary in order that, at all times, at least 50% of consolidated Long-Term
Indebtedness (excluding Primary Subordinated Obligations) of the Borrower and
the Subsidiary Loan Parties shall be comprised of a combination of (a)
Indebtedness bearing interest at a fixed rate and (b) Indebtedness covered by
such Hedging Agreements.

  Section 5.15  Intercompany Agreements.  Each of Holdings and the Borrower
                -----------------------
agrees that,  prior to the date of this Agreement, true and correct copies of
all intercompany agreements and arrangements between Holdings, the Borrower or
any Subsidiary Loan Party, on the one hand, and the Parent or any other
Affiliate of Holdings, the Borrower or any Subsidiary Loan Party (other than
Holdings, the Borrower or any Subsidiary Loan Party), on the other hand,
including, without limitation, agreements with respect to tax sharing,
management fees or sharing of facilities, services or employees and purchases
pursuant to the Purchase Agreement (collectively, the "Intercompany Agreements")
                                                       -----------------------
shall have been delivered to the Lenders.

  Section 5.16  Agreement Regarding FCC Licenses.  Within 60 days after the
                --------------------------------
written request of the Required Lenders that the Borrower and any License
Subsidiary do so, the Borrower shall, and shall cause such License Subsidiary
to, execute and deliver a written agreement pursuant to which the Borrower or a
Subsidiary, as applicable, is granted the right to use all FCC Licenses held by
such License Subsidiary.

  Section 5.17  Subordination of ChaseTel Earnout.  Each of Holdings and the
                ---------------------------------
Borrower will, and will cause each Subsidiary Loan Party to, comply in all
material respects with the terms and provisions of the Subordination Agreement
dated as of March 16, 2000, among the Borrower, Holdings, Chase
Telecommunications Holdings, Inc. and Lucent (which subordination agreement
relates to the ChaseTel Earnout), without giving effect to any amendment to or
waiver of any term or provision of such subordination agreement.

                                  ARTICLE VI

                              Negative Covenants
                              ------------------

  Until the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full,
each of Holdings and the Borrower covenants and agrees with the Lenders that:

  Section 6.01  Indebtedness; Preferred Stock.  The Borrower will not, nor will
                -----------------------------
it permit any Subsidiary Loan Party to, create, incur, assume or permit to exist
any Indebtedness or issue any preferred stock, except:

     (a) Indebtedness created under the Loan Documents and other Eligible
Secured Debt;

     (b) subject to Section 6.04, Indebtedness of the Borrower to any Subsidiary
and of any Subsidiary to the Borrower or any other Subsidiary;

                                       55
<PAGE>

     (c) subject to Section 6.04, Guarantees by the Borrower of Indebtedness of
any Subsidiary;

     (d) Indebtedness of the Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets by the
Borrower or such Subsidiary (other than assets that are an integral part of any
of the telecommunications or data network systems of the Borrower and its
Subsidiaries or other assets that become accessions to such assets or the
removal or loss of which would adversely affect the value of any such assets),
including Capital Lease Obligations and any Indebtedness assumed in connection
with the acquisition of any such assets or secured by a Lien on any such assets
prior to the acquisition thereof; provided that (A) such Indebtedness is
                                  --------
incurred prior to or within 90 days after such acquisition or the completion of
such construction or improvement and (B) any such Indebtedness incurred in
connection with any particular acquisition, construction or improvement shall
not exceed 90% of the cost of such acquisition, construction or improvement;
provided further that the aggregate principal amount of such Indebtedness (and
--------
Indebtedness incurred to refinance such Indebtedness permitted by clause (f)
below) shall not exceed $10,000,000 at any time outstanding;

     (e) Indebtedness outstanding on the Effective Date and set forth on
Schedule 6.01;

     (f) Indebtedness of the Borrower incurred to refinance any Indebtedness
referred to in clause (d) or (e) above and Indebtedness of any Subsidiary
incurred to refinance any Indebtedness of such Subsidiary referred to in clause
(d) or (e) above; provided that (i) the principal amount of any such
                  --------
Indebtedness does not exceed the principal amount of, plus accrued interest and
any prepayment premiums applicable to, the Indebtedness refinanced thereby, (ii)
any such Indebtedness has a scheduled maturity date that is on or after the
scheduled maturity date of the Indebtedness refinanced thereby, (iii) any such
Indebtedness has a weighted average life to maturity that is equal to or longer
than the remaining weighted average life to maturity of the Indebtedness
refinanced thereby (determined immediately prior to giving effect to such
refinancing), (iv) any such Indebtedness does not include any provisions that
may require mandatory Repayment thereof prior to scheduled maturity, other than
scheduled repayments taken into account in determining compliance with clause
(iii) above and other provisions that are not materially more burdensome than
any such provisions included in the Indebtedness refinanced thereby, (v) any
such Indebtedness shall not be secured by any Lien other than Liens on assets
securing the Indebtedness being refinanced thereby, and shall not be Guaranteed
by any Subsidiary other than any Subsidiary that Guaranteed the Indebtedness
being refinanced thereby, and (vi) if the Indebtedness being refinanced is
subordinated to the Obligations, then such refinancing Indebtedness shall be
subordinated to the Obligations on terms no less favorable to the Lenders than
the Indebtedness being refinanced;

     (g) Indebtedness of the Borrower that constitutes a Primary Subordinated
Obligation;

     (h) other unsecured Indebtedness of the Borrower in an aggregate principal
amount not exceeding $5,000,000 at any time outstanding; and

                                       56
<PAGE>

     (i) FCC Debt and Permitted License Acquisition Debt of any License
Subsidiary incurred to finance the purchase of any FCC License owned by such
License Subsidiary; provided that (i) the aggregate principal amount of FCC Debt
                    --------
and Permitted License Acquisition Debt of any License Subsidiary shall not
exceed 75% of the sum of such principal amount plus the additional cash
consideration paid to acquire the FCC License or Licenses acquired by such
License Subsidiary, and (ii) the aggregate principal amount of Permitted License
Acquisition Debt incurred on a cumulative basis during the term of this
Agreement shall not exceed [*].

  Section 6.02  Liens.
                -----

     (a) The Borrower will not, nor will it permit any Subsidiary Loan Party to,
create, incur, assume or permit to exist any Lien on any property or asset now
owned or hereafter acquired by it, or assign or sell any income or revenues
(including accounts receivable) or rights in respect of any thereof, except:

           (i)    Liens created under the Security Documents;

           (ii)   Permitted Encumbrances;

           (iii)  any Lien on any property or asset of the Borrower or any
     Subsidiary existing on the date hereof and set forth in Schedule 6.02;
     provided that (A) such Lien shall not apply to any other property or asset
     --------
     of the Borrower or any Subsidiary Loan Party and (B) such Lien shall secure
     only those obligations which it secures on the date hereof and refinancings
     thereof that satisfy the criteria set forth in clause (f) of Section 6.01;

           (iv)   any Lien existing on any property or asset prior to the date
     that such property or asset was first acquired by the Borrower or any
     Subsidiary or any Affiliate thereof or existing on any property or asset of
     any Person that becomes a Subsidiary after the date hereof prior to the
     time such Person becomes a Subsidiary; provided that (a) such Lien is not
                                            --------
     created in contemplation of or in connection with such acquisition or such
     Person becoming a Subsidiary, (B) such Lien shall not apply to any other
     property or assets of the Borrower or any Subsidiary Loan Party and (C)
     such Lien shall secure only those obligations which it secures on the date
     of such acquisition or the date such Person becomes a Subsidiary, as the
     case may be, and refinancings thereof that satisfy the criteria set forth
     in clause (f) of Section 6.01;

           (v)    Liens on fixed or capital assets (other than assets that are
     an integral part of any of the telecommunications or data network systems
     of the Borrower and its Subsidiaries or other assets that become accessions
     to such assets or the removal or loss of which would adversely affect the
     value of any such assets) acquired, constructed or improved by the Borrower
     or a Subsidiary; provided that (a) such Liens secure only Indebtedness
                      --------
     permitted by clause (d) of Section 6.01 or a refinancing thereof permitted
     by clause (f) of Section 6.01, (B) such Liens and the Indebtedness secured
     thereby are incurred prior to or within 90 days after such acquisition or
     the completion of such construction or improvement, (C) the Indebtedness
     secured thereby does not exceed

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       57
<PAGE>

     90% of the cost of acquiring, constructing or improving such fixed or
     capital assets and (D) such Liens shall not apply to any other property or
     assets of the Borrower or any Subsidiary Loan Party; and

           (vi)  any Lien on any FCC License owned by any License Subsidiary
     securing FCC Debt of such Subsidiary incurred to finance the purchase of
     such FCC License.

           (vii) Notwithstanding the foregoing, the Borrower will not, nor
     will it permit any Subsidiary Loan Party to, create any Lien (other than
     any Permitted Encumbrance, Liens created under the Security Documents and
     Liens permitted by clause (vi) of Section 6.01(a) above) on any FCC
     License.

     Section 6.03  Fundamental Changes; Corporate Structure.
                   ----------------------------------------

          (a) Neither Holdings nor the Borrower will, nor will it permit any
Subsidiary Loan Party to, merge into or consolidate with any other Person, or
permit any other Person to merge into or consolidate with it, or sell, transfer,
lease or otherwise dispose of (in one transaction or in a series of
transactions) all or substantially all of its assets, or all or substantially
all of the Equity Interests of any of any Subsidiary Loan Party (in each case,
whether now owned or hereafter acquired), or liquidate or dissolve, except that,
if at the time thereof and immediately after giving effect thereto no Default
shall have occurred and be continuing (i) any Subsidiary may merge into any
other Subsidiary, (ii) any Subsidiary may sell, transfer, lease or otherwise
dispose of its assets to another Subsidiary, (iii) any Subsidiary may liquidate
or dissolve if the Borrower determines in good faith that such liquidation or
dissolution is in its best interests and is not materially disadvantageous to
the Lenders, or (iv) ChaseTel may merge with and into the Borrower if the
Borrower is the surviving entity in such merger.

          (b) The Borrower will not, nor will it permit any of its Subsidiaries
to, engage to any material extent in any business other than the wireless
telecommunications and data networking business and businesses reasonably
related thereto, in each case in the United States.

          (c) The Borrower will conduct its business as an operating company or
through one or more operating Subsidiaries, which, together with the Borrower,
shall own all equipment and other assets (other than FCC Licenses and Equipment
Site Interests) used to conduct such business.

          (d) Each Subsidiary will be wholly owned by the Borrower and will be
either (i) an operating Subsidiary formed for the purpose of conducting business
in one or more geographical markets as contemplated by paragraph (c) above or
(ii) a Real Estate Subsidiary.

          (e) The Borrower will not issue any Equity Interests (or warrants,
options or other rights in respect thereof) other than shares of common stock
issued to Holdings that are pledged pursuant to the Borrower Pledge Agreement.
The Borrower will not permit any Subsidiary Loan Party to issue any Equity
Interests (or warrants, options or other rights in respect thereof) other than
(i) Equity Interests issued by Subsidiaries to the Borrower that are pledged
pursuant to the Borrower Pledge Agreement and (ii) Equity Interests issued by
License Subsidiaries to the Parent that are pledged pursuant to the Parent
Pledge Agreement.

                                       58
<PAGE>

          (f) The Borrower will not (i) have any Subsidiaries organized in a
jurisdiction outside the United States of America or (ii) permit any Collateral
or other assets owned by the Borrower or any Subsidiary to be located in a
jurisdiction outside of the United States.

          (g) Holdings will not issue any Equity Interests (or warrants, options
or other rights in respect thereof) other than (i) Equity Interests issued to
the Parent, (ii) shares of common stock of Holdings issued to Persons other than
the Parent or any Affiliate of the Parent and that do not result in a Change of
Control and (iii) Permitted Preferred Stock of Holdings issued in compliance
with the applicable provisions of this Agreement.  The Net Proceeds of any such
Equity Interests issued by Holdings shall be contributed by Holdings to the
Borrower as common equity (except any such Net Proceeds retained by Holdings to
pay interest on Permitted Holdings Debt or to pay the ChaseTel Earnout).

     Section 6.04  Investments, Loans, Advances, Guarantees and Acquisitions;
                   ----------------------------------------------------------
                   Asset Sales.
                   -----------

          (a)  The Borrower will not, nor will it permit any Subsidiary Loan
Party to, purchase, hold or acquire (including pursuant to any merger with any
Person that was not a wholly owned Subsidiary prior to such merger) any Equity
Interests in, evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or
permit to exist any loans or advances to, Guarantee any obligations of, or make
or permit to exist any investment or any other interest in, any other Person, or
purchase or otherwise acquire (in one transaction or a series of transactions)
any assets of any other Person constituting a business unit, except:

               (i)     Permitted Investments;

               (ii)    investments by the Borrower in Equity Interests in the
     Subsidiaries;

               (iii)   loans or advances made by the Borrower to any Subsidiary
     and made by any Subsidiary to the Borrower; provided that all such loans
                                                 --------
     and advances shall be evidenced by promissory notes pledged pursuant to the
     Borrower Pledge Agreement and shall be subordinated to the Obligations as
     provided in the Subordination Agreement;

               (iv)    Guarantees by the Borrower of obligations of the
     Subsidiaries; and

               (v)     investments by the Borrower and the Subsidiaries received
     in connection with the bankruptcy or reorganization of, or settlement of
     delinquent accounts and disputes with, customers and suppliers, in each
     case in the ordinary course of business.

          (b)  The Borrower will not, nor will it permit any Subsidiary Loan
Party to, sell, transfer, lease or otherwise dispose of any asset, including any
Equity Interest in any other Person owned by it, except:

               (i)     sales of inventory, obsolete, uneconomic or surplus
     equipment and Permitted Investments, in each case in the ordinary course of
     business;

                                       59
<PAGE>

               (ii)   transfers constituting investments permitted by paragraph
     (a) of this Section or Restricted Payments permitted by Section 6.06;

               (iii)  sales, transfers and dispositions by the Borrower or a
     Subsidiary to the Borrower or a Subsidiary; and

               (iv)   other sales and dispositions by the Borrower and the
     Subsidiaries of assets (other than Equity Interests in any Subsidiary) with
     a fair market value not exceeding, in the aggregate, $1,000,000 during any
     fiscal year of the Borrower;

     provided that all sales, transfers, leases and other dispositions permitted
     --------
     hereby (other than pursuant to clause (iii) above) shall be made for fair
     value and solely for cash consideration.

Any of the foregoing provisions of this Section 6.04(b) notwithstanding, the
Borrower and any Subsidiary Loan Party may sell or otherwise transfer obsolete,
uneconomic or surplus equipment to Ericsson Wireless Communications Inc., Nortel
Networks Inc. or Lucent Technologies Inc. (or any of their respective
Affiliates) in connection with the purchase or other acquisition by Borrower or
any Subsidiary Loan Party from such transferee or its Affiliates of upgraded
equipment replacing the equipment so sold or transferred provided that (i) the
replacement equipment purchased or otherwise acquired performs the same general
function as the equipment so sold or transferred, (ii) title to the equipment
sold or otherwise transferred is not transferred to the transferee until
Borrower or a Subsidiary Loan Party acquires title to the upgraded equipment
related thereto and such upgraded equipment has become Collateral under the
Security Agreement, (iii) Borrower and the Subsidiary Loan Parties may not sell
or otherwise transfer to Nortel Networks Inc. or Lucent Technologies Inc. or any
of their respective Affiliates pursuant to this sentence any equipment financed
by Lenders under this Agreement, and (iv) such sale or other transfer is made
for fair value.

     Section 6.05  Hedging Agreements.  The Borrower will not, nor will it
                   ------------------
permit any of the Subsidiary Loan Parties to, enter into any Hedging Agreement,
other than Hedging Agreements required by Section 5.14 and other Hedging
Agreements entered into by the Borrower in the ordinary course of business to
hedge or mitigate risks to which the Borrower or any Subsidiary is exposed in
the conduct of its business or the management of its liabilities.

     Section 6.06  Restricted Payments.  Neither Holdings nor the Borrower will,
                   -------------------
nor will it permit any Subsidiary Loan Party to, declare or make, or agree to
pay or make, directly or indirectly, any Restricted Payment, except:

          (a)  the Borrower may declare and pay dividends with respect to its
capital stock payable solely in additional shares of its common stock;

          (b)  Subsidiaries may declare and pay dividends and distributions to
the Borrower;

          (c)  after the Parent pays the ChaseTel Earnout (but in any event not
prior to January 1, 2006), the Borrower may make Restricted Payments in an
aggregate amount not exceeding the lesser of $41,000,000 or the amount of such
ChaseTel Earnout paid by the Parent (and Holdings may make Restricted Payments
with the proceeds of any such Restricted

                                       60
<PAGE>

Payments received by Holdings), provided that at the time of and after giving
                                --------
effect to any such Restricted Payment (i) no Default shall have occurred and be
continuing, (ii) the Borrower shall be in compliance with Sections 6.18 and 6.19
determined on a pro forma basis as of the last day of the most recently ended
fiscal quarter of the Borrower for which financial statements are available as
though such payment had been made on the first day of each relevant period for
testing compliance with such covenant, and (iii) the ratio of Annualized EBITDA
to Fixed Charges shall be greater than or equal to 1.0 to 1.0;

     (d) on or after the earlier of April 1, 2004 or the date after the end of
the Availability Period on which the Borrower shall have repaid at least 7.50%
of the aggregate principal amount of the Loans that were outstanding at the end
of the Availability Period, the Borrower may make Restricted Payments at the
time that any scheduled interest payment is due in respect of any Permitted
Holdings Debt or Eligible Parent Debt (and, in the case of Restricted Payments
made in respect of such interest payments on Eligible Parent Debt, Holdings may
make Restricted Payments with the proceeds of any such Restricted Payments
received by Holdings), in an aggregate amount not exceeding the aggregate amount
of such interest payment; provided that (i) at the time of and after giving
                          --------
effect to any such Restricted Payment, (A) no Default shall have occurred and be
continuing and (B) the ratio of Annualized EBITDA to Fixed Charges shall be
greater than or equal to 1.0 to 1.0, (ii) such Restricted Payments shall be
applied to make such interest payment and (iii) the aggregate amount of
Restricted Payments made in reliance upon this clause (d) shall not exceed
$35,000,000 during any 12-month period;

     (e) on or after the earlier of June 30, 2005 or the date after the end of
the Availability Period on which the Borrower shall have repaid at least 25% of
the aggregate principal amount of the Loans that were outstanding at the end of
the Availability Period, the Borrower may make Restricted Payments at the time
that any scheduled interest payment is due in respect of any Permitted Holdings
Debt or Eligible Parent Debt (and, in the case of Restricted Payments made in
respect of such interest payments on Eligible Parent Debt, Holdings may make
Restricted Payments with the proceeds of any such Restricted Payments received
by Holdings), in an aggregate amount not exceeding the aggregate amount of such
interest payment; provided that (i) at the time of and after giving effect to
                  --------
any such Restricted Payment, (A) no Default shall have occurred and be
continuing and (B) the ratio of Annualized EBITDA to Fixed Charges shall be
greater than or equal to 1.2 to 1.0, (ii) such Restricted Payments shall be
applied to make such interest payment and (iii) the aggregate amount of
Restricted Payments made in reliance upon this clause (e) together with the
aggregate amount of Restricted Payments made in reliance upon clause (d) above
shall not exceed $100,000,000 during any 12-month period; and

     (f) the Borrower and Holdings may make Restricted Payments the proceeds of
which are contemporaneously used to purchase FCC Licenses (either directly as an
asset purchase or as a portion of the consideration for the acquisition of an
entity that owns an FCC License, such portion not to exceed the value of such
FCC License) which are contributed to a License Subsidiary within one Business
Day of the date that such Restricted Payments are made.

     Section 6.07  Transactions with Affiliates.
                   ----------------------------

            (a) Neither Holdings nor the Borrower will, nor will it permit any
Subsidiary Loan Party to, sell, lease or otherwise transfer any property or
assets to, or purchase, lease or

                                       61
<PAGE>

otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (i) transactions that do not
involve Holdings and are at prices and on terms and conditions not less
favorable to the Borrower or such Subsidiary Loan Party than could be obtained
on an arm's-length basis from unrelated third parties, (ii) transactions between
or among the Borrower and the Subsidiary Loan Parties not involving any other
Affiliate, (iii) any Restricted Payment permitted by Section 6.06, and (iv)
transactions expressly contemplated by the Intercompany Agreements that are
conducted in accordance with the terms of the Intercompany Agreements.

     (b) Neither Holdings nor the Borrower will, nor will they permit any
Subsidiary Loan Party to, create, incur, assume or permit to exist any
Indebtedness (or any other obligation or liability of the type defined as a
"Subordinated Obligation" in the Subordination Agreement) owing to or for the
benefit of the Parent or any other Affiliate of Holdings, the Borrower or any
Subsidiary Loan Party, unless (i) such Affiliate shall have become a party to
the Subordination Agreement and agreed to subordinate such Indebtedness (or such
other obligation or liability) as provided therein and (ii) in the case of any
such Indebtedness, such Indebtedness is evidenced by one or more promissory
notes or similar instruments that are pledged pursuant to the Pledge Agreement.

     Section 6.08  Restrictive Agreements.  Neither Holdings nor the Borrower
                   ----------------------
will, nor will it permit any Subsidiary Loan Party to, directly or indirectly,
enter into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon the ability of any Subsidiary
Loan Party to pay dividends or other distributions with respect to any of its
Equity Interests or to make or repay loans or advances to the Borrower or to
Guarantee Indebtedness of the Borrower; provided that (a) the foregoing shall
                                        --------
not apply to restrictions and conditions imposed by law or by any Loan Document
(or imposed by any agreement governing any other Eligible Secured Debt) and (b)
the foregoing shall not apply to restrictions and conditions existing on the
date hereof identified on Schedule 6.08 (but shall apply to any extension or
renewal of, or any amendment or modification expanding the scope of, any such
restriction or condition).

     Section 6.09  Repayment of Indebtedness.  The Borrower will not, nor will
                   -------------------------
it permit any Subsidiary Loan Party to, make any Repayment in respect of, or
make any payment in violation of any subordination terms of, any Indebtedness of
the Borrower or any Subsidiary Loan Party except (a) any Repayment of
Indebtedness resulting in a prepayment of Loans pursuant to Section 2.09(d) or
(e) and (b) Repayments described in any of the clauses of the proviso to Section
2.09(d) or (e).

     Section 6.10  Intercompany Agreements.  Neither Holdings nor the Borrower
                   -----------------------
will, nor will they permit any Subsidiary Loan Party to, enter into any
agreement or arrangement after the date hereof that would constitute an
Intercompany Agreement without the prior written approval of the Required
Lenders.

     Section 6.11  Limitation on Sale-Leaseback Transactions. The Borrower will
                   -----------------------------------------
not, nor will it permit any Subsidiary Loan Party to, enter into any
arrangement, directly or indirectly, whereby it shall sell or transfer any
property, real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other

                                       62
<PAGE>

property that it intends to use for substantially the same purpose or purposes
as the property sold or transferred.

     Section 6.12  Equipment Site Interests and Real Estate Subsidiaries.  The
                   -----------------------------------------------------
Borrower will not permit any Equipment Site Interests to be owned or acquired by
any Person other than a Subsidiary that (a) is wholly owned directly by the
Borrower, (b) does not engage in any business or activity other than the
ownership of Equipment Site Interests and activities incidental thereto, (c)
does not own or acquire any assets other than Equipment Site Interests, cash and
Permitted Investments and (d) does not have or incur any Indebtedness or other
liabilities other than liabilities under the Loan Documents, liabilities imposed
by law, including tax liabilities, and other liabilities incidental to its
existence and permitted business and activities (any such Subsidiary satisfying
the foregoing requirements, a "Real Estate Subsidiary").  The Equipment Site
Interests relating to all sites in any particular state shall be owned by a
separate Real Estate Subsidiary; provided that if the Equipment Site Interests
                                 --------
relating to sites in any particular BTA are in more than one state, then such
Equipment Site Interests may be owned by the Real Estate Subsidiary that is
formed to own Equipment Site Interests in the state in which a majority of the
sites located in such BTA are situated.

     Section 6.13  FCC Licenses and License Subsidiaries.  The Borrower will not
                   -------------------------------------
permit any FCC License to be owned or acquired by any Person other than a
corporation that (a) is wholly owned directly by the Parent, (b) does not engage
in any business or activity other than the ownership of one or more FCC Licenses
and activities incidental thereto, (c) does not own or acquire any assets other
than one or more FCC Licenses, cash and Permitted Investments and (d) does not
have or incur any Indebtedness or other liabilities other than liabilities under
the Loan Documents, liabilities imposed by law, including tax liabilities, other
liabilities incidental to its existence and permitted business and activities
and FCC Debt or Permitted License Acquisition Debt incurred to finance the
purchase by it of its FCC Licenses (any corporation satisfying the foregoing
requirements, a "License Subsidiary").  Each FCC License that is acquired
without being financed with FCC Debt or Permitted License Acquisition Debt shall
be owned by a License Subsidiary that does not have any liability in respect of
any FCC Debt or Permitted License Acquisition Debt.  Each FCC License that is
financed with FCC Debt or Permitted License Acquisition Debt shall be owned by a
separate License Subsidiary (which shall be the only Loan Party liable for such
FCC Debt or Permitted License Acquisition Debt), except that any combination of
two or more such FCC Licenses that are acquired contemporaneously pursuant to
the same acquisition may be owned by the same License Subsidiary if required by
the terms of such FCC Debt or Permitted License Acquisition Debt.

     Section 6.14  Amendment of Material Documents.  Neither Holdings nor the
                   -------------------------------
Borrower will, nor will it permit any Subsidiary Loan Party to, amend, modify or
waive any of its rights or obligations under (a) any Intercompany Agreement, (b)
its certificate or articles of incorporation, by-laws or other organizational
documents, (c) the ChaseTel Purchase Agreement, or (d) any agreement or
instrument governing or evidencing any Permitted Holdings Debt, FCC Debt or
Eligible Parent Debt.

     Section 6.15  Capital Expenditures.  The Borrower will not permit the
                   --------------------
aggregate amount of Capital Expenditures made by the Borrower and its
Subsidiaries in any fiscal year to exceed the amount set forth below with
respect to such fiscal year:

                                       63
<PAGE>

           Year                                                    Amount
           ----                                                    ------
           2000                                              $550,000,000
           2001                                              $850,000,000
           2002                                              $110,000,000
           2003                                              $180,000,000
           2004 and thereafter                               $100,000,000

     Section 6.16  Covered POPS.  The Borrower will not permit the total number
                   ------------
of Covered POPS at any time during any period set forth below to be less than
the number set forth below with respect to such period:

   Period                                                               Number
   ------                                                               ------
   April 1, 2000 to and including June 30, 2000                          275,000
   July 1, 2000 to and including September 30, 2000                    1,150,000
   October 1, 2000 to and including December 31, 2000                  1,150,000
   January 1, 2001 to and including March 31, 2001                     5,000,000
   April 1, 2001 to and including June 30, 2001                        6,000,000
   July 1, 2001 to and including September 30, 2001                    8,000,000
   October 1, 2001 to and including December 31, 2001                 15,000,000
   January 1, 2002 to and including December 31, 2002                 17,500,000
   January 1, 2003 to and including December 31, 2003                 19,800,000
   January 1, 2004 to and including December 31, 2004                 20,500,000
   January 1, 2005 and thereafter                                     21,000,000

           Section 6.17  Subscribers. The Borrower will not permit the total
                         -----------
number of Subscribers at any time during any period set forth below to be less
than the number set forth below with respect to such period:

           Period                                                Number
           ------                                                ------
           April 1, 2000 to and including June 30, 2000           16,500
           July 1, 2000 to and including September 30, 2000       44,000
           October 1, 2000 to and including December 31, 2000     56,000
           January 1, 2001 to and including March 31, 2001       150,000

                                       64
<PAGE>

     April 1, 2001 to and including June 30, 2001                 225,000
     July 1, 2001 to and including September 30, 2001             355,000
     October 1, 2001 to and including December 31, 2001           600,000
     January 1, 2002 to and including March 31, 2002            1,050,000
     April 1, 2002 to and including June 30, 2002               1,200,000
     July 1, 2002 to and including September 30, 2002           1,350,000
     October 1, 2002 to and including December 31, 2002         1,550,000
     January 1, 2003 to and including March 31, 2003            1,800,000
     April 1, 2003 to and including June 30, 2003               1,900,000
     July 1, 2003 to and including September 30, 2003           2,000,000
     October 1, 2003 to and including December 31, 2003         2,100,000
     January 1, 2004 to and including December 31, 2004         2,250,000
     January 1, 2005 to and including December 31, 2005         2,550,000
     January 1, 2006 and thereafter                             2,700,000

     Section 6.18  Total Indebtedness to Total Capitalization.  The Borrower
                   ------------------------------------------
will not permit the ratio of Total Indebtedness to Total Capitalization at any
time during any period set forth below to exceed the ratio set forth with
respect to such period:

   Period                                                          Ratio
   ------                                                          -----
   Initial Availability Date to and including December 31, 2002    0.67 to 1.0
   January 1, 2003 to and including December 31, 2003              0.60 to 1.0
   January 1, 2004 and thereafter                                  0.50 to 1.0

     Section 6.19  Total Indebtedness to Annualized EBITDA.  The Borrower will
                   ---------------------------------------
not permit the ratio of Total Indebtedness to Annualized EBITDA as of any date
during any period set forth below to exceed the ratio set forth below with
respect to such period:

   Period                                                            Ratio
   ------                                                            -----

   January 1, 2003 to and including March 31, 2003                 10.0 to 1.0
   April 1, 2003 to and including June 30, 2003                     7.0 to 1.0
   July 1, 2003 to and including September 30, 2003                 7.0 to 1.0
   October 1, 2003 to and including December 31, 2003               5.5 to 1.0
   January 1, 2004 and thereafter                                   5.0 to 1.0

                                       65
<PAGE>

     Section 6.20  Consolidated EBITDA to Cash Interest Expense.  The Borrower
                   --------------------------------------------
will not permit the ratio of Consolidated EBITDA to Cash Interest Expense for
any period of four consecutive fiscal quarters ending during any period set
forth below to be less than the ratio set forth with respect to such period:

  Period                                                        Ratio
  ------                                                        -----
  October 1, 2002 to and including December 31, 2002          1.0 to 1.0
  January 1, 2003 to and including March 31, 2003             1.3 to 1.0
  April 1, 2003 to and including June 30, 2003                1.4 to 1.0
  July 1, 2003 to and including September 30, 2003            1.5 to 1.0
  October 1, 2003 to and including December 31, 2003          1.9 to 1.0
  January 1, 2004 and thereafter                              3.0 to 1.0

     Section 6.21  Minimum Gross Revenue.  (a)  The Borrower will not permit the
                   ---------------------
consolidated revenue of the Borrower and the Subsidiary Loan Parties during any
fiscal quarter ending on a date set forth below to be less than the amount set
forth below with respect to such date:

   Fiscal Quarter Ending                                    Amount
   ---------------------                                    ------
   December 31, 1999                                           $  1,330,000
   March 31, 2000                                              $  2,300,000
   June 30, 2000                                               $  4,900,000
   September 30, 2000                                          $  6,300,000
   December 31, 2000                                           $ 17,100,000
   March 31, 2001                                              $ 25,000,000
   June 30, 2001                                               $ 40,000,000
   September 30, 2001                                          $ 70,000,000
   December 31, 2001                                           $120,000,000
   March 31, 2002                                              $130,000,000
   June 30, 2002                                               $150,000,000
   September 30, 2002                                          $170,000,000
   December 31, 2002                                           $190,000,000
   March 31, 2003                                              $205,000,000

                                       66
<PAGE>

   June 30, 2003                                               $220,000,000
   September 30, 2003                                          $230,000,000
   December 31, 2003                                           $250,000,000

          (b)  The Borrower will not permit the consolidated revenue of the
Borrower and the Subsidiary Loan Parties during any fiscal year ending on a date
set forth below to be less than the amount set forth below with respect to such
date:

   Fiscal Year Ending                                                Amount
   ------------------                                                ------
   December 31, 2004                                             $1,100,000,000
   December 31, 2005                                             $1,200,000,000
   December 31, 2006 and thereafter                              $1,300,000,000

     Section 6.22  Activities of Holdings.  Holdings will not engage in any
                   ----------------------
business or activity other than the ownership of all the outstanding Equity
Interests of the Borrower and activities incidental thereto. Holdings will not
own or acquire any assets (other than shares of common stock of the Borrower,
cash, Permitted Investments and, prior to the issuance of Eligible Parent Debt,
a promissory note issued by the Parent to Holdings as consideration for the
purchase price of equity in Holdings) or incur any liabilities (other than
liabilities under the Loan Documents, liabilities under the Lucent Credit
Agreement, the Nortel Credit Agreement and any other credit agreement entered
into in the future governing Eligible Secured Debt, liabilities imposed by law,
including tax liabilities, other liabilities incidental to its existence and
liabilities in respect of Permitted Holdings Debt, the ChaseTel Earnout or
guarantees of Eligible Parent Debt). Holdings will not create, incur, assume or
permit to exist any Lien on any asset now owned or hereafter acquired by it,
except Liens created under the Loan Documents and Permitted Encumbrances.

     Section 6.23  Fiscal Year and Fiscal Quarters.  The Borrower will cause all
                   -------------------------------
of its fiscal years and fiscal quarters to be the same as the calendar years and
calendar quarters.

     Section 6.24  Additional Requirements Regarding Permitted Indebtedness and
                   ------------------------------------------------------------
Liens. Notwithstanding anything to the contrary contained in Section 6.01,
-----                                                        ------------
Section 6.02 or elsewhere in this Agreement, the Borrower will not, nor will it
------------
permit any Loan Party to, (a) create, incur, assume or permit to exist any
Indebtedness which is secured by any Lien created, evidenced or governed by any
of the Security Documents other than Eligible Secured Debt and (b) grant, create
or permit to exist any Lien which is created, evidenced or governed by any of
the Security Documents other than Liens securing Eligible Secured Debt.

                                       67
<PAGE>

                                  ARTICLE VII

                               Events of Default
                               -----------------

     If any of the following events ("Events of Default") shall occur:
                                      -----------------

          (a) the Borrower shall fail to pay any principal of any Loan when and
as the same shall become due and payable, whether at the due date thereof or at
a date fixed for prepayment thereof or otherwise;

          (b) the Borrower shall fail to pay any interest on any Loan or any fee
or any other amount (other than an amount referred to in clause (a) of this
Article) payable under this Agreement or any other Loan Document, when and as
the same shall become due and payable, and such failure shall continue
unremedied for a period of three Business Days;

          (c) any representation or warranty made or deemed made by or on behalf
of any Loan Party in or in connection with any Loan Document or any amendment or
modification thereof or waiver thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection
with any Loan Document or any amendment or modification thereof or waiver
thereunder, shall prove to have been incorrect in any respect when made or
deemed made;

          (d) Holdings or the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in Section 5.02, 5.04 (with respect
to the existence of the Borrower) or 5.10 or in Article VI;

          (e) any Loan Party shall fail to observe or perform any covenant,
condition or agreement contained in any Loan Document (other than those
specified in clause (a), (b) or (d) of this Article), and such failure shall
continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Borrower (which notice will be given at the request
of any Lender);

          (f) any Loan Party shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable;

          (g) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or
permits (with or without the giving of notice, the lapse of time or both) the
holder or holders of any Material Indebtedness or any trustee or agent on its or
their behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled
maturity; provided that this clause (g) shall not apply to secured Indebtedness
          --------
that becomes due as a result of the voluntary sale or transfer of the property
or assets securing such Indebtedness;

          (h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief
in respect of any Loan Party or its debts, or of a substantial part of its
assets, under any Federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect or (ii) the appointment of a

                                       68
<PAGE>

receiver, trustee, custodian, sequestrator, conservator or similar official for
any Loan Party or for a substantial part of its assets, and, in any such case,
such proceeding or petition shall continue undismissed for 60 days or an order
or decree approving or ordering any of the foregoing shall be entered;

          (i) any Loan Party shall (i) voluntarily commence any proceeding or
file any petition seeking liquidation, reorganization or other relief under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law
now or hereafter in effect, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition described
in clause (h) of this Article, (iii) apply for or consent to the appointment of
a receiver, trustee, custodian, sequestrator, conservator or similar official
for any Loan Party or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or (vi)
take any action for the purpose of effecting any of the foregoing;

          (j) any Loan Party shall become unable, admit in writing its inability
or fail generally to pay its debts as they become due;

          (k) one or more judgments for the payment of money in an aggregate
amount in excess of $1,000,000 shall be rendered against any Loan Party or any
combination thereof and the same shall remain undischarged for a period of 30
consecutive days during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to attach or levy upon any
assets of any Loan Party to enforce any such judgment;

          (l) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other ERISA Events that have
occurred, could reasonably be expected to result in liability of the Borrower
and its Subsidiaries in an aggregate amount exceeding (i) $1,000,000 in any year
or (ii) $5,000,000 for all periods;

          (m) any Lien purported to be created under any Security Document shall
cease to be, or shall be asserted by any Loan Party not to be, a valid and
perfected Lien on any Collateral, with the priority required by the applicable
Security Document, except (i) as a result of the sale or other disposition of
the applicable Collateral in a transaction permitted under the Loan Documents or
(ii) as a result of the Collateral Agent's failure to maintain possession of any
stock certificates, promissory notes or other instruments delivered to it under
the Pledge Agreements;

          (n) a Change in Control shall occur;

          (o) the loss, revocation, suspension or material impairment of any
material FCC License shall occur; or

          (p) Ericsson Wireless shall terminate the Purchase Agreement as a
result of any default or breach by the Borrower thereunder, or the Borrower
shall terminate the Purchase Agreement other than by reason of a default or
breach by Ericsson Wireless thereunder;

then, and in every such event (other than an event with respect to the Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the

                                       69
<PAGE>

Borrower, take either or both of the following actions, at the same or different
times: (i) terminate the Commitments, and thereupon the Commitments shall
terminate immediately, and (ii) declare the Loans then outstanding to be due and
payable in whole (or in part, in which case any principal not so declared to be
due and payable may thereafter be declared to be due and payable), and thereupon
the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrower
accrued hereunder, shall become due and payable immediately, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower; and in case of any event with respect to the
Borrower described in clause (h) or (i) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of the
Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

                                 ARTICLE VIII

                           The Administrative Agent
                           ------------------------

     Each of the Lenders hereby irrevocably appoints the Administrative Agent as
its agent and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms of the Loan Documents, together with such actions and powers as are
reasonably incidental thereto.

     Any Person serving as Administrative Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such
Person and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Borrower or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder.

     The Administrative Agent shall not have any duties or obligations except
those expressly set forth in the Loan Documents.  Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 9.02), and (c) except as
expressly set forth in the Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to any of the Loan Parties that is communicated to or
obtained by the Person serving as Administrative Agent or any of its Affiliates
in any capacity.  The Administrative Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 9.02) or in the absence of its
own gross negligence or willful misconduct.  The Administrative Agent shall be
deemed not to have knowledge of any Default unless and until written notice
thereof is given to it by the Borrower or a Lender, and the Administrative Agent
shall not be responsible for or have any duty to ascertain

                                       70
<PAGE>

or inquire into (i) any statement, warranty or representation made in or in
connection with any Loan Document, (ii) the contents of any certificate, report
or other document delivered thereunder or in connection therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth in any Loan Document, (iv) the validity, enforceability,
effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere in any Loan Document, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent.

     The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person.  The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon.  The Administrative Agent may consult with legal counsel (who
may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

     The Administrative Agent may perform any and all its duties and exercise
its rights and powers by or through any one or more sub-agents appointed by the
Administrative Agent.  The Administrative Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their
respective Related Parties.  The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.

     Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders and the Borrower.  Upon any such resignation, the
Required Lenders shall have the right to appoint a successor.  If no successor
shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may, on behalf
of the Lenders, appoint a successor Administrative Agent which shall be a bank
with an office in New York, or an Affiliate of any such bank.  Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor,
such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder.  The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor.  After the Administrative Agent's
resignation hereunder, the provisions of this Article and Section 9.03 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.

                                       71
<PAGE>

     Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement.  Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Loan Document or
related agreement or any document furnished hereunder or thereunder.

     Each Lender acknowledges and agrees to the terms of the Collateral Agency
Agreement and to the appointment of the Collateral Agent to act as collateral
agent under the Collateral Agency Agreement and the other Security Documents.

                                  ARTICLE IX

                                 Miscellaneous
                                 -------------

     Section 9.01 Notices. Except in the case of notices and other
                  -------
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

          (a) if to Holdings or the Borrower, to it at 10307 Pacific Center
Court, San Diego, California 92121, Attention of President (Telecopy No. (619)
882-6010);

          (b) if to the Collateral Agent, to it as provided in the Collateral
Agency Agreement;

          (c) if to the Administrative Agent, to it at Telefonvagen 30,
Stockholm 126 25, Sweden, Attention: President (Telecopy No. +468-719-0500),
with a copy to Ericsson Inc. at 740 East Campbell Road, Richardson, Texas 75081
Attention: Director of Customer Finance (Telecopy No. 972-583-1858);

          (d) if to Ericsson, to it at Telefonvagen 30, Stockholm 126 25,
Sweden, Attention: President (Telecopy No. +468-719-0500), with a copy to
Ericsson Inc. at 740 East Campbell Road, Richardson, Texas 75081 Attention:
Director of Customer Finance (Telecopy No. 972-583-1858); and

          (e) if to any other Lender, to it at its address (or telecopy number)
set forth in its Administrative Questionnaire.

     Any party hereto may change its address or telecopy number for notices and
other communications hereunder by notice to the other parties hereto. All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

                                       72
<PAGE>

     Section 9.02  Waivers; Amendments.
                   -------------------

          (a)   No failure or delay by either Agent or any Lender in exercising
any right or power hereunder or under any other Loan Document shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any
other right or power. The rights and remedies of the Agents and the Lenders
hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of any Loan Document or consent to any departure by any Loan Party
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan shall not
be construed as a waiver of any Default, regardless of whether an Agent or any
Lender may have had notice or knowledge of such Default at the time.

          (b)   Neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except, in the
case of this Agreement, pursuant to an agreement or agreements in writing
entered into by Holdings, the Borrower and the Required Lenders or, in the case
of any other Loan Document, pursuant to an agreement or agreements in writing
entered into by the applicable Agent and the Loan Party or Loan Parties that are
parties thereto, in each case with the consent of the Required Lenders; provided
                                                                        --------
that no such agreement shall:

          (i)   increase the Commitment of any Lender without the written
     consent of such Lender;

          (ii)  reduce the principal amount of any Loan or reduce the rate of
     interest on such Loan, or reduce any fees payable hereunder, without the
     written consent of each Lender affected thereby;

          (iii) postpone the scheduled date of payment of the principal amount
     of any Loan or any interest thereon, or any fees payable hereunder, or
     reduce the amount of, waive or excuse any such payment, or postpone the
     scheduled date of expiration of any Commitment, without the written consent
     of each Lender affected thereby;

          (iv)  change Section 2.16(b), (c) or (d) in a manner that would alter
                       ---------------  ---    ---
     the pro rata sharing of payments required thereby, without the written
     consent of each Lender;

          (v)   change any of the provisions of this Section or the definition
     of "Required Lenders" or any other provision of any Loan Document
     specifying the number or percentage of Lenders required to waive, amend or
     modify any rights thereunder or make any determination or grant any consent
     thereunder, without the written consent of each Lender;

          (vi)  release all or any substantial part of the Collateral from the
     Lien of any Security Document (except as expressly provided in such
     Security Document), without the written consent of each Lender;

                                       73
<PAGE>

          (vii)  release Holdings or any Subsidiary Loan Party from its
     Guarantee under the Guarantee Agreement (except as expressly provided in
     the Guarantee Agreement), or limit its liability in respect of such
     Guarantee;

          (viii) change any provisions of any Security Document in a manner
     that adversely affects the pro rata security of the Loans in relation to
     any other Eligible Secured Debt, without the written consent of each
     Lender; or

          (ix)   waive, amend or modify Section 5.10 or any term or provision
                                        ------------
     thereof without the prior written consent of Ericsson;

provided further that no such agreement shall amend, modify or otherwise affect
--------
the rights or duties of either Agent without the prior written consent of such
Agent.

     Section 9.03  Expenses; Indemnity; Damage Waiver
                   ----------------------------------

          (a)  The Borrower shall pay (i) all reasonable out-of-pocket expenses
incurred by Ericsson and each Agent, including the reasonable fees, charges and
disbursements of counsel for Ericsson or the Agents, in connection with the
preparation and administration of the Loan Documents or any amendments,
modifications or waivers thereof (whether or not the transactions contemplated
hereby are consummated) and (ii) all reasonable out-of-pocket expenses incurred
by either Agent or any Lender, including the reasonable fees, charges and
disbursements of any counsel for either Agent or any Lender, in connection with
the enforcement or protection of its rights in connection with the Loan
Documents, including its rights under this Section, or in connection with the
Loans made hereunder, including all such costs and expenses incurred during any
workout, restructuring or negotiations in respect of such Loans.

          (b)  The Borrower shall indemnify each Agent and each Lender, and each
Related Party of any of the foregoing Persons (each such Person being called an
"Indemnitee") against, and hold each Indemnitee harmless from, any and all
 ----------
losses, claims, damages, liabilities and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or
asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of any Loan Document or any other
agreement or instrument contemplated hereby, the performance by the parties to
the Loan Documents of their respective obligations thereunder or the
consummation of the Transactions or any other transactions contemplated hereby,
(ii) any Loan or the use of the proceeds therefrom, (iii) any actual or alleged
presence or release of Hazardous Materials on or from any Mortgaged Property or
any other property at any time owned or operated by the Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to the Borrower
or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be
               --------
available to the extent that such losses, claims, damages, liabilities or
related expenses have resulted from the gross negligence or willful misconduct
of such Indemnitee.

          (c)  To the extent that the Borrower fails to pay any amount required
to be paid by it to the Administrative Agent under paragraph (a) or (b) of this
Section, each Lender severally

                                       74
<PAGE>

agrees to pay to the Administrative Agent such Lender's pro rata share
(determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided that the unreimbursed expense
                                          --------
or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent in its
capacity as such. For purposes hereof, a Lender's "pro rata share" shall be
determined based upon its share of the sum of the total outstanding Loans and
Commitments at the time.

          (d) To the extent permitted by applicable law, neither Holdings nor
the Borrower shall assert, and each of them hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or
instrument contemplated hereby, the Transactions, any Loan or the use of the
proceeds thereof.

          (e) All amounts due under this Section shall be payable not later than
30 days after written demand therefor.

     Section 9.04  Successors and Assigns
                   ----------------------

          (a) The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby and, to the
extent expressly contemplated hereby, the Related Parties of each of the Agents
and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

          (b) Any Lender may assign to one or more assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of
its Commitment and the Loans at the time owing to it); provided that:
                                                       --------

          (i)   except in the case of an assignment to a Person that would
     qualify as an Ericsson Lender, a Lender or an Affiliate of a Lender, the
     Administrative Agent must give its prior written consent to such assignment
     (which consent shall not be unreasonably withheld or delayed),

          (ii)  in the case of an assignment to a competitor of the Borrower or
     any of its Subsidiaries (or any Affiliate of any such competitor) or in the
     case of an assignment of a Commitment (other than to an Eligible Assignee),
     the Borrower must give its prior written consent to such assignment (which
     consent, except in the case of an assignment to any such competitor or
     Affiliate of a competitor, shall not be unreasonably withheld or delayed),

          (iii) except in the case of an assignment to a Person that would
     qualify as an Ericsson Lender, a Lender or an Affiliate of a Lender or an
     assignment of the entire

                                       75
<PAGE>

     remaining amount of the assigning Lender's Commitment and Loans, the amount
     of the Commitment and Loans of the assigning Lender subject to each such
     assignment (determined as of the date the Assignment and Acceptance with
     respect to such assignment is delivered to the Administrative Agent) shall
     not be less than $5,000,000 unless the Borrower otherwise consents (except
     that this clause shall not prohibit the assignment of a Fronting Commitment
     as contemplated by Section 2.02 in an amount greater than or equal to
     $1,000,000),

          (iv) each partial assignment shall be made as an assignment of a
     proportionate part of all the assigning Lender's rights and obligations
     under this Agreement, except that this clause (iv) shall not be construed
     to prohibit the assignment of a proportionate part of all of the assigning
     Lender's rights and obligations in respect of (A) Loans separately from (or
     without assigning) Commitments or (B) Commitments separately from (or
     without assigning) Loans,

          (v)  the parties to each assignment shall execute and deliver to the
     Administrative Agent and the Collateral Agent an Assignment and Acceptance,
     together with, in the case of the Administrative Agent, a processing and
     recordation fee of $3,500, and

          (vi) the assignee, if it shall not be a Lender, shall deliver to the
     Administrative Agent an Administrative Questionnaire;

provided further that (A) in the event that the Borrower has given its consent
-------- -------
to the identity of a particular assignee of an assignment of loans or
commitments in connection with any assignment relating to the Lucent Credit
Agreement, the Nortel Credit Agreement or any credit, loan or other similar
agreement relating to any other Eligible Secured Debt, then the Borrower shall
not unreasonably withhold consent to such assignee under clause (ii) of this
paragraph, (B) any consent of the Borrower otherwise required under clause (iii)
of this paragraph shall not be unreasonably withheld if and when the Borrower
consents to an assignment of less than $5,000,000 relating to the Lucent Credit
Agreement or any credit, loan or other similar agreement relating to any other
Eligible Secured Debt and (C) any consent of the Borrower otherwise required
under this paragraph shall not be required if an Event of Default under clause
(h) or (i) of Article VII has occurred and is continuing.  Subject to acceptance
and recording thereof pursuant to paragraph (d) of this Section, from and after
the effective date specified in each Assignment and Acceptance the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.13, 2.14, 2.15 and 9.03).  Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (e) of this Section.

                                       76
<PAGE>

          (c) The Administrative Agent, acting for this purpose as an agent of
the Borrower, shall maintain at one of its offices a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
"Register"). The Administrative Agent shall notify the Borrower whenever any
Lender becomes or ceases to be an Ericsson Lender and whenever any Lender holds
or ceases to hold any Loans and shall reflect each Ericsson Lender's and each
other Lender's status as such in the Register. The entries in the Register shall
be conclusive, and the Borrower, the Agents and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Borrower and
any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

          (d) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register and,
promptly thereafter, shall notify the Borrower of such Assignment and
Acceptance. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this paragraph.

          (e) Any Lender may, without the consent of the Borrower or the
Administrative Agent, sell participations to one or more banks or other entities
(a "Participant") in all or a portion of such Lender's rights and obligations
    -----------
under this Agreement (including all or a portion of its Commitments and the
Loans owing to it); provided that (i) such Lender's obligations under this
                    --------
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Agents and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce the Loan Documents and to approve any amendment,
modification or waiver of any provision of the Loan Documents; provided that
                                                               --------
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such Participant.
Subject to paragraph (f) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.13, 2.14 and 2.15 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section 9.08
as though it were a Lender; provided such Participant agrees to be subject to
                            --------
Section 2.16(d) as though it were a Lender.

          (f) A Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of Section 2.15 unless the Borrower is
notified of the participation sold to

                                       77
<PAGE>

such Participant and such Participant agrees, for the benefit of the Borrower,
to comply with Section 2.15(e) as though it were a Lender.

          (g) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of
                                   --------
a security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

     Section 9.05  Survival.  All covenants, agreements, representations and
                   --------
warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans, regardless of any
investigation made by any such other party or on its behalf and notwithstanding
that either Agent or any Lender may have had notice or knowledge of any Default
or incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid and so long as the Commitments
have not expired or terminated.  The provisions of Sections 2.13, 2.14, 2.15 and
9.03 and Article VIII shall survive and remain in full force and effect
regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Commitments or the
termination of this Agreement or any provision hereof.

     Section 9.06  Counterparts; Integration; Effectiveness. This Agreement may
                   ------------
be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement, the other
Loan Documents and any separate letter agreements with respect to the Borrower's
agreement to cooperate with respect to marketing, selling or syndicating Loans
and Commitments or with respect to fees payable to Ericsson or either Agent
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. Except as provided in Section
4.01, this Agreement shall become effective when it shall have been executed by
the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement.

     Section 9.07  Severability. Any provision of this Agreement held to be
                   ------------
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

                                       78
<PAGE>

     Section 9.08 Right of Setoff. If an Event of Default shall have occurred
                  ---------------
and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing
by such Lender or Affiliate to or for the credit or the account of the Borrower
against any of and all the obligations of the Borrower now or hereafter existing
under this Agreement held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.

     Section 9.09 Governing Law; Jurisdiction; Consent to Service of Process.
                  ----------------------------------------------------------

          (a) This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

          (b) Each of Holdings and the Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to any Loan Document, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement or any other Loan Document shall
affect any right that either Agent or any Lender may otherwise have to bring any
action or proceeding relating to this Agreement or any other Loan Document
against Holdings or the Borrower or its properties in the courts of any
jurisdiction.

          (c) Each of Holdings and the Borrower hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any other Loan Document in any court referred to in paragraph (b) of this
Section. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

     Section 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
                  --------------------
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR

                                      79
<PAGE>

INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

     Section 9.11  Headings.  Article and Section headings and the Table of
                   --------
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

     Section 9.12  Confidentiality. Each of the Agents and the Lenders agrees
                   ---------------
to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its and its Affiliates' directors,
officers, employees and agents, including accountants, legal counsel and other
advisors (it being understood that the Persons to whom such disclosure is made
will 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) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this Section,
to any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement, (g) with
the consent of the Borrower or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii)
becomes available to either Agent or any Lender on a nonconfidential basis from
a source other than Holdings or the Borrower. For the purposes of this Section,
"Information" means all information received from Holdings or the Borrower
relating to Holdings or the Borrower or its business, other than any such
information that is publicly available or available to either Agent or any
Lender on a nonconfidential basis prior to disclosure by Holdings or the
Borrower. 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 9.13  Interest Rate Limitation.
                   ------------------------

          (a) Notwithstanding anything herein to the contrary, (i) no interest
rate specified in this Agreement or any other Loan Document shall at any time
exceed the Maximum Rate (as hereinafter defined) and (ii) if at any time the
interest rate applicable to any Loan, together with all fees, charges and other
amounts which are treated as interest on such Loan under applicable law
(collectively the "Charges"), shall exceed the maximum lawful rate (the "Maximum
Rate") which may be contracted for, charged, taken, received or reserved by the
Lender holding such
                                       80
<PAGE>

Loan in accordance with applicable law, the rate of interest payable in respect
of such Loan hereunder, together with all Charges payable in respect thereof,
shall be limited to the Maximum Rate and, to the extent lawful, the interest and
Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or periods
shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.

          (b) Notwithstanding anything to the contrary contained in this
Agreement or the other Loan Documents, none of the terms and provisions of this
Agreement or the other Loan Documents shall ever be construed to create a
contract or obligation to pay interest at a rate in excess of the Maximum Rate;
and neither the Administrative Agent nor any Lender shall ever charge, receive,
take, collect, reserve or apply, as interest on the Credit Facility Obligations,
any amount in excess of the Maximum Rate. The parties hereto agree that any
interest, charge, fee, expense or other obligation provided for in this
Agreement or in the other Loan Documents which constitutes interest under
applicable law shall be, ipso facto and under any and all circumstances, limited
or reduced to an amount equal to the lesser of (i) the amount of such interest,
charge, fee, expense or other obligation that would be payable in the absence of
this Section 9.13 or (ii) an amount, which when added to all other interest
payable under this Agreement and the other Loan Documents, equals the Maximum
Rate. If, notwithstanding the foregoing, the Administrative Agent or any Lender
ever contracts for, charges, receives, takes, collects, reserves or applies as
interest any amount in excess of the Maximum Rate, such amount which would be
deemed excessive interest shall be deemed a partial payment or prepayment of
principal of the Credit Facility Obligations and treated hereunder as such; and
if the Credit Facility Obligations, or applicable portions thereof, are paid in
full, any remaining excess shall promptly be paid to the Borrower. In
determining whether the interest paid or payable, under any specific
contingency, exceeds the Maximum Rate, the Borrower, the Administrative Agent
and the Lenders shall, to the maximum extent permitted by applicable law, (A)
characterize any non-principal payment as an expense, fee or premium rather than
as interest, (B) exclude voluntary prepayments and the effects thereof, and (C)
amortize, prorate, allocate and spread in equal or unequal parts the total
amount of interest throughout the entire contemplated term of the Credit
Facility Obligations, or applicable portions thereof, so that the interest rate
does not exceed the Maximum Rate at any time during the term of the Credit
Facility Obligations; provided that, if the unpaid principal balance is paid and
                      --------
performed in full prior to the end of the full contemplated term thereof, and if
the interest received for the actual period of existence thereof exceeds the
Maximum Rate, the Administrative Agent and/or the Lenders, as appropriate, shall
refund to the Borrower the amount of such excess and, in such event, the
Administrative Agent and the Lenders shall not be subject to any penalties
provided by any laws for contracting for, charging, receiving, taking,
collecting, reserving or applying interest in excess of the Maximum Rate.

  Section 9.14 Amendments to Other Loan Documents.  If the Borrower or any other
               ----------------------------------
Loan Party in any way (a) amends, modifies or supplements any Other Loan
Document in any manner that is materially more restrictive to any Loan Party or
that is materially more beneficial to any lender or any agent of any lender or
(b) enters into any Other Loan Document that is materially more restrictive to
any Loan Party or that is materially more beneficial to any lender

                                       81
<PAGE>

or any agent of any lender, in each case as compared to this Agreement and/or
the other Loan Documents (as applicable), then Holdings and the Borrower agree
to promptly notify the Administrative Agent in writing of the nature and terms
of such amendment, modification or supplement or such Other Loan Document (as
applicable) and to promptly deliver to the Administrative Agent a true, correct
and complete copy of such amendment, modification or supplement or such Other
Loan Document (as applicable). Furthermore, if any such amendment, modification
or supplement or such Other Loan Document (as applicable) is reasonably likely
to materially disadvantage any Lender with respect to its efforts to assign any
of its Loans or Commitment, each of Holdings and the Borrower agrees that,
promptly upon the request of the Administrative Agent or the Required Lenders,
it (i) will amend, modify or supplement (as applicable) the appropriate terms
and provisions of this Agreement and the other Loan Documents in the same manner
as such amendment, modification or supplement to such Other Loan Document or
(ii) in the case of an Other Loan Document newly executed, amend, modify,
supplement or amend and restate (as applicable) the appropriate terms and
provisions of this Agreement and the other Loan Documents or (in the case of an
amendment and restatement) this Agreement and the other Loan Documents (as
applicable) such that this Agreement and the other Loan Documents are consistent
with such Other Loan Document (as applicable); provided, however, that if such
                                               --------
amendment, modification or other supplement to such Other Loan Document or if
such newly-executed Other Loan Document (as applicable) was made in connection
with any consideration given by any lender or by any agent of any lender to any
Loan Party, then the obligations of Holdings and the Borrower to amend, modify,
supplement or amend and restate this Agreement and the other Loan Documents
pursuant to this sentence shall be conditioned upon the Lender(s) providing the
same or equivalent consideration to such Loan Party.

                                       82
<PAGE>

     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.

                                                  CRICKET COMMUNICATIONS
                                                  HOLDINGS INC.

                                                  By: __________________________
                                                      Name:
                                                      Title:

                                                  CRICKET COMMUNICATIONS INC.

                                                  By: __________________________
                                                      Name:
                                                      Title:

                                                  ERICSSON CREDIT AB,
                                                  individually and as
                                                  Administrative Agent

                                                  By: __________________________
                                                      Name:
                                                      Title:

                                       83
<PAGE>

                                 SCHEDULE 2.01
                                 -------------

                                  COMMITMENTS

          Lender                                                 Commitment
          ------                                                 ----------
          Ericsson Credit AB                                     $495,000,000

<PAGE>

                                                                       EXHIBIT A
================================================================================

                             AMENDED AND RESTATED

                 COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

                                  dated as of

                               October 20, 2000

                                     among

                         CRICKET COMMUNICATIONS, INC.,

                 The Representatives and Unrepresented Holders
                              referred to herein,

                                      and

                     STATE STREET BANK AND TRUST COMPANY,
                              as Collateral Agent

================================================================================
<PAGE>

                                                               TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                    Page
                                                                                    ----
<S>                                                                                 <C>
ARTICLE I      Definitions........................................................    2
               -----------

     SECTION 1.01.  Defined Terms.................................................    2
     ----------------------------
     SECTION 1.02.  Terms Generally...............................................   15
     ------------------------------
     SECTION 1.03.  Accounting Terms; GAAP........................................   16
     -------------------------------------

ARTICLE II     Permitted Additional Obligations;  Additional Security Documents...   16
               ----------------------------------------------------------------

     SECTION 2.01.  Permitted Additional Obligations..............................   17
     -----------------------------------------------
     SECTION 2.02.  Additional Security Documents.................................   18
     --------------------------------------------
ARTICLE III    Acts of Secured Parties;  Amounts of Obligations...................   18
               ------------------------------------------------

     SECTION 3.01.  Acts of Secured Parties.......................................   19
     --------------------------------------
     SECTION 3.02.  Determination of Amounts of Obligations.......................   19
     ------------------------------------------------------
     SECTION 3.03.  Restrictions on Actions.......................................   20
     --------------------------------------

ARTICLE IV     Duties of Collateral Agent.........................................   21
               --------------------------

     SECTION 4.01.  Notice to Secured Parties.....................................   21
     ----------------------------------------
     SECTION 4.02.  Actions Under Support Documents...............................   21
     ----------------------------------------------
     SECTION 4.03.  Conflicting Instructions; No Instructions.....................   24
     --------------------------------------------------------
     SECTION 4.04.  Records.......................................................   25
     ----------------------

ARTICLE V      Collateral Accounts; Distributions.................................   26
               ----------------------------------

     SECTION 5.01.  The Collateral Accounts.......................................   26
     --------------------------------------
     SECTION 5.02.  Application of Proceeds.......................................   28
     --------------------------------------
     SECTION 5.03.  Time of Payments..............................................   28
     -------------------------------
     SECTION 5.04.  Application of Amounts Not Distributable......................   28
     -------------------------------------------------------
     SECTION 5.05.  Treatment of Contingent Obligations...........................   29
     --------------------------------------------------
     SECTION 5.06.  Collateral Agent's Calculations...............................   29
     ----------------------------------------------

ARTICLE VI     Agreements.........................................................   30
               ----------
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                 <C>
     SECTION 6.01.  Delivery of Agreements........................................   30
     -------------------------------------
     SECTION 6.02.  Information...................................................   30
     --------------------------

ARTICLE VII    The Collateral Agent...............................................   30
               --------------------

     SECTION 7.01.  Appointment; Rights and Duties................................   30
     ---------------------------------------------
     SECTION 7.02.  Expenses; Indemnity; Damage Waiver............................   33
     -------------------------------------------------

ARTICLE VIII   Representations and Warranties.....................................   35
               ------------------------------

     SECTION 8.01.  Organization; Powers..........................................   35
     -----------------------------------
     SECTION 8.02.  Authorization; Enforceability.................................   35
     --------------------------------------------
     SECTION 8.03.  Governmental Approvals; No Conflicts..........................   36
     ---------------------------------------------------
ARTICLE IX     Intercreditor Arrangements.........................................   36
               --------------------------

     SECTION 9.01.  Security Interests............................................   36
     ---------------------------------
     SECTION 9.02.  Turnover of Collateral and Certain Payments...................   36
     -----------------------------------------------------------
     SECTION 9.03.  Release of Collateral and Guarantees..........................   37
     ---------------------------------------------------
     SECTION 9.04.  Additional Collateral.........................................   38
     ------------------------------------
     SECTION 9.05.  Purchase of Collateral........................................   38
     -------------------------------------
     SECTION 9.06.  Further Assurances, etc.......................................   38
     --------------------------------------
     SECTION 9.07.  Restrictions on Prepayments and Purchases of Indebtedness.....   39
     ------------------------------------------------------------------------
     SECTION 9.08.  Payment of Amounts Owing under Secured Instruments............   39
     -----------------------------------------------------------------
     SECTION 9.09.  Certain Amendments to Credit Agreement........................   40
     -----------------------------------------------------

ARTICLE X      Benefit of Agreement...............................................   41
               --------------------

ARTICLE XI     Miscellaneous......................................................   41
               -------------
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                                 <C>
     SECTION 11.01.  Notices......................................................   41
     -----------------------
     SECTION 11.02.  Waivers; Amendments..........................................   42
     -----------------------------------
     SECTION 11.03.  Counterparts.................................................   44
     ----------------------------
     SECTION 11.04.  Severability.................................................   44
     ----------------------------
     SECTION 11.05.  Governing Law; Jurisdiction; Consent to Service of Process...   44
     --------------------------------------------------------------------------
     SECTION 11.06.  WAIVER OF JURY TRIAL.........................................   45
     ------------------------------------
     SECTION 11.07.  Headings.....................................................   45
     ------------------------
     SECTION 11.08.  Successors and Assigns.......................................   45
     --------------------------------------
     SECTION 11.09.  Termination..................................................   46
     ---------------------------
     SECTION 11.10.  Complete Agreement...........................................   46
     ----------------------------------
</TABLE>

EXHIBIT:

     Exhibit A -- Form of Permitted Additional Obligations
                     Designation

                                      iii
<PAGE>

                    AMENDED AND RESTATED COLLATERAL AGENCY AND INTERCREDITOR
                AGREEMENT dated as of October 20, 2000 among CRICKET
                COMMUNICATIONS, INC. a Delaware corporation, STATE STREET BANK
                AND TRUST COMPANY, as Collateral Agent, and the Representatives
                and Unrepresented Holders referred to herein.

          WHEREAS the Borrower (such term, and other capitalized terms used in
this preliminary statement, having the meanings set forth in this Agreement
below) has entered into the Credit Agreement pursuant to which the Lenders have
made and will continue to make Loans to the Borrower;

          WHEREAS the Loan Parties have entered into certain Security Documents
in order to secure the Credit Facility Obligations and the Subsidiary Loan
Parties have entered into the Guarantee Agreement in order to guarantee the
Credit Facility Obligations;

          WHEREAS the Borrower may from time to time incur Permitted Additional
Obligations that may be secured under the Security Documents and guaranteed
pursuant to the Guarantee Agreement and the Parent Guarantee Agreement;

          WHEREAS the Borrower, the Collateral Agent and the Administrative
Agent have entered into the Amended and Restated Collateral Agency and
Intercreditor Agreement dated as of August 14, 2000, amending and restating the
Collateral Agency and Intercreditor Agreement dated as of November 24, 1999 (as
so amended and restated, the "Existing Agreement") in order to set forth certain
                              ------------------
agreements with respect to the Obligations to be so secured and guaranteed,
including mechanisms for securing Permitted Additional Obligations and certain
intercreditor arrangements with respect to the enforcement of rights under the
Support Documents and the allocation of proceeds in respect of the Obligations;
and

          WHEREAS, the Borrower (a) has entered into the Nortel Credit
Agreement, (b) has entered into (or, concurrently with the execution and
delivery hereof, is entering into) the Ericsson Credit Agreement, (c) has
designated (or, concurrently with the execution and
<PAGE>

delivery hereof, is designating) the Nortel Facility Obligations and the
Ericsson Facility Obligations as Permitted Additional Obligations in accordance
with Section 2.01 of the Existing Agreement and (d) has requested that the
Existing Agreement be amended and restated in the form hereof in order to
confirm that the Nortel Facility Obligations and the Ericsson Facility
Obligations are entitled to the benefits of the Support Documents and to effect
certain other changes to the Existing Agreement;

          NOW THEREFOR, the parties hereto agree as follows:

                                   ARTICLE I

                                  Definitions
                                  -----------

          SECTION 1.01.  Defined Terms.  As used in this Agreement, the
                         --------------
following terms have the meanings specified below:

          "Act" has the meaning set forth in Section 3.01.
           ---

          "Additional Security Document" means any agreement or instrument
           ----------------------------
(other than the Initial Security Documents) creating or evidencing a security
interest of the Collateral Agent in, or a Lien in favor of the Collateral Agent
on, or an assignment to the Collateral Agent of, any Collateral.

          "Affiliate" means, with respect to a specified Person, another Person
           ---------
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.

          "Administrative Agent" means Lucent Technologies Inc., in its capacity
           --------------------
as administrative agent for the Lenders under the Credit Agreement.

          "Borrower" means Cricket Communications, Inc. (formerly known as
           --------
Cricket Wireless Communications, Inc.), a Delaware corporation.

          "Borrower Pledge Agreement" means the Borrower Pledge Agreement dated
           -------------------------
as of November 24, 1999, among Holdings, the Borrower, the Subsidiary Loan
Parties and the Collateral Agent.
<PAGE>

          "Business Day" has the meaning assigned to such term in the Credit
           ------------
Agreement or, if the Credit Agreement is not in effect, the Nortel Credit
Agreement or, if the Credit Agreement and the Nortel Credit Agreement are not in
effect, the Ericsson Credit Agreement, in each case as such Agreement is in
effect at the date hereof.

          "Capital Lease Obligations" of any Person means the obligations of
           -------------------------
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

          "ChaseTel Subordination Agreement"  means the Subordination Agreement
           --------------------------------
dated as of March 16, 2000, among Holdings, the Borrower, the Administrative
Agent and Chase Telecommunications Holdings, Inc., a Delaware corporation.

          "Collateral" means (a) any and all "Collateral" as defined in any
           ----------
applicable Security Document and (b) any and all other assets of whatever
nature, tangible or intangible, now owned or existing or hereafter acquired or
arising in which the Collateral Agent has been granted a Lien or security
interest, or that have been assigned to the Collateral Agent, pursuant to any of
the Security Documents.

          "Collateral Accounts" has the meaning set forth in Section 5.01(a).
           -------------------

          "Collateral Agent" means State Street Bank and Trust Company, in its
           ----------------
capacity as collateral agent for the Secured Parties under the Support
Documents.

          "Contingent Obligations" means any Obligations that are contingent
           ----------------------
obligations or not yet liquidated, including any obligation for the
reimbursement of any letter of credit that is outstanding but not yet drawn
upon.

          "Contingent Obligations Collateral Account" has the meaning set forth
           -----------------------------------------
in Section 5.05.
<PAGE>

          "Control" means the possession, directly or indirectly, of the power
           -------
to direct or cause the direction of the management or policies of a Person,
whether through the  ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.
 -----------       ----------

          "Credit Agreement" means the Credit Agreement dated as of September
           ----------------
20, 1999, among Holdings, the Borrower, the Lenders and the Administrative
Agent; provided that, for purposes of the Support Documents (other than this
       --------
Agreement), any reference to "the Credit Agreement" therein shall be deemed to
mean "each Secured Instrument" (as defined herein).

          "Credit Facility" means a credit facility, or group of credit
           ---------------
facilities, extended pursuant to a single Secured Instrument.  For purposes of
this definition, all credit facilities that are governed by the same credit
agreement, loan agreement or similar document, or in respect of which the
Secured Parties thereunder vote together for purposes of declaring or waiving
defaults, shall be deemed to be extended pursuant to the same Secured
Instrument.

          "Credit Facility Obligations" means (a) the principal of and premium,
           ---------------------------
if any, and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise and (b) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) of the Borrower under the
Credit Agreement.

          "Effective Date" has the meaning assigned to such term in the Credit
           --------------
Agreement.  The parties hereto acknowledge that the Effective Date occurred on
September 20, 1999.

          "Enforcement Collateral Account" has the meaning set forth in Section
           ------------------------------
5.01(a).
<PAGE>

          "Environmental Laws" means all laws, rules, regulations, codes,
           ------------------
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

          "Environmental Liability" means any liability, contingent or otherwise
           -----------------------
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

          "Equity Interests" means shares of capital stock, partnership
           ----------------
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person.

          "Ericsson Agent" means Ericsson Credit AB, in its capacity as
           --------------
administrative agent for the Ericsson Lenders under the Ericsson Credit
Agreement.

          "Ericsson Credit Agreement" means the Credit Agreement dated as of
           -------------------------
October 20, 2000, among Holdings, the Borrower, the Ericsson Lenders and the
Ericsson Agent.

          "Ericsson Facility Obligations" means (a) the principal of and
           -----------------------------
premium, if any, and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Ericsson
Loans, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise and (b) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary
<PAGE>

obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) of the Borrower under the Ericsson Credit
Agreement.

          "Ericsson Lenders" means the lenders from time to time party to the
           ----------------
Ericsson Credit Agreement.

          "Ericsson Loans" has the meaning assigned to the term "Loans" in the
           --------------
Ericsson Credit Agreement.

          "Financial Officer" means the chief financial officer, principal
           -----------------
accounting officer, treasurer or controller of the Borrower.

          "GAAP" means, subject to Section 1.03, generally accepted accounting
           ----
principles in the United States of America.

          "General Collateral Account" has the meaning set forth in Section
           --------------------------
5.01(a).

          "General Funds" means funds required to be deposited in the General
           -------------
Collateral Account as provided in Section 5.01(b).

          "General Funds Release Request" means a written request delivered by
           -----------------------------
the Borrower to the Collateral Agent requesting the Collateral Agent to release
funds from the General Collateral Account.  Each General Funds Release Request
(a) shall specify (i) the amount of funds to be released, (ii) the date of the
requested release, (iii) the purpose for which the Borrower expects to use such
funds, (iv) the applicable provisions of the applicable Secured Instrument or
Secured Instruments pursuant to which such funds are being released and (v) the
wire instructions for the transfer of such funds to or for the account of the
Borrower and (b) shall be accompanied by a certificate of a Financial Officer to
the effect that such requested release of funds is not in contravention of any
Secured Instrument.

          "Governmental Authority" means the government of the United States of
           ----------------------
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive,
<PAGE>

legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

          "Guarantee" of or by any Person (the "guarantor") means any
           ---------                            ---------
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
                   ---------------
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
                            --------
endorsements for collection or deposit in the ordinary course of business.

          "Guarantee Agreement" means the Guarantee Agreement dated as of
           -------------------
November 24, 1999, among Holdings, the Subsidiary Loan Parties and the
Collateral Agent.

          "Hazardous Materials" means all explosive or radioactive substances or
           -------------------
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

          "Holder" means any direct holder of, or creditor party to a Secured
           ------
Instrument in respect of, any Obligations.

          "Holdings" means Cricket Communications Holdings, Inc. (formerly known
           --------
as Cricket Communications, Inc.), a Delaware corporation.

          "Indebtedness" of any Person means, without duplication, (a) all
           ------------
obligations of such Person for
<PAGE>

borrowed money or with respect to advances of any kind, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, (c)
all obligations of such Person upon which interest charges are customarily paid,
(d) all obligations of such Person under conditional sale or other title
retention agreements relating to property acquired by such Person, (e) all
obligations of such Person in respect of the deferred purchase price of property
or services (excluding current accounts payable incurred in the ordinary course
of business), (f) all Indebtedness of others secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on property owned or acquired by such Person, whether or
not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such
Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty and (j)
all obligations, contingent or otherwise, of such Person in respect of bankers'
acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in or other relationship with such entity, except to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

          "Indemnitee" has the meaning assigned to such term in Section 7.02.
           ----------

          "Indemnity, Subrogation and Contribution Agreement" means the
           -------------------------------------------------
Indemnity, Subrogation and Contribution Agreement dated as of November 24, 1999,
among the Borrower, the Subsidiary Loan Parties and the Collateral Agent.

          "Initial Security Documents" means this Agreement, the Security
           --------------------------
Agreement, the Borrower Pledge Agreement and the Parent Pledge Agreement.

          "Lenders" means the lenders from time to time party to the Credit
           -------
Agreement; provided that, for purposes of the Support Documents (other than this
           --------
Agreement), any reference to "Lender" or "Lenders" therein shall be deemed
<PAGE>

to mean "Secured Party" or "Secured Parties" (as defined herein), respectively.

          "License Subsidiary" has the meaning assigned to such term in the
           ------------------
Credit Agreement or, if the Credit Agreement is not in effect, the Nortel Credit
Agreement or, if the Credit Agreement and the Nortel Credit Agreement are not in
effect, the Ericsson Credit Agreement, in each case as such Agreement is in
effect at the date hereof.

          "Lien" means, with respect to any asset, (a) any mortgage, deed of
           ----
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.

          "Loan Documents" means the "Loan Documents", as defined in each of the
           --------------
Credit Agreement, the Nortel Credit Agreement and the Ericsson Credit Agreement
and includes all other agreements, documents and instruments evidencing or
governing any of the Obligations (including all Secured Instruments and Support
Documents), in each case as in effect from time to time.

          "Loan Parties" means the Parent, Holdings, the Borrower and the
           ------------
Subsidiary Loan Parties.

          "Loans" has the meaning assigned to such term in the Credit Agreement;
           -----
provided that, for purposes of the Support Documents (other than this
--------
Agreement), any reference to "Loans" therein shall be deemed to mean
"Obligations" (as defined herein).

          "Moody's means Moody's Investors Service, Inc.
           -------

          "Non-Vendor Secured Party" means any Secured Party that (a) is not a
           ------------------------
Vendor or an Affiliate of a Vendor, (b) is not a Holder of any Obligations
Guaranteed by or otherwise subject to credit support provided by a Vendor or an
Affiliate of a Vendor and (c) is not subject to any agreement or arrangement
pursuant to which any Vendor or an Affiliate of any Vendor has the right to
direct, or to consent or approve of the exercise of, any voting rights of
<PAGE>

such Secured Party in respect of the Obligations held by it.

          "Nortel Agent" means Nortel Networks Inc., in its capacity as
           ------------
administrative agent for the Nortel Lenders under the Nortel Credit Agreement.

          "Nortel Credit Agreement" means the Credit Agreement dated as of
           -----------------------
August 28, 2000, among Holdings, the Borrower, the Nortel Lenders and the Nortel
Agent.

          "Nortel Facility Obligations" means (a) the principal of and premium,
           ---------------------------
if any, and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Nortel Loans, when and
as due, whether at maturity, by acceleration, upon one or more dates set for
prepayment or otherwise and (b) all other monetary obligations, including fees,
costs, expenses and indemnities, whether primary, secondary, direct, contingent,
fixed or otherwise (including monetary obligations incurred during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) of the Borrower
under the Nortel Credit Agreement.

          "Nortel Lenders" means the lenders from time to time party to the
           --------------
Nortel Credit Agreement.

          "Nortel Loans" has the meaning assigned to the term "Loans" in the
           ------------
Nortel Credit Agreement.

          "Notice of Cancelation of Enforcement" means, with respect to any
           ------------------------------------
Notice of Enforcement, a notice or notices delivered to the Collateral Agent by
Representatives and/or Unrepresented Holders canceling such Notice of
Enforcement in accordance with Section 4.02.

          "Notice of Enforcement" means a notice or notices delivered to the
           ---------------------
Collateral Agent by Representatives and/or Unrepresented Holders in accordance
with Section 4.02 stating that (a) all or part of the Obligations are due and
payable and remain unpaid and any applicable grace period for payment thereof
has lapsed or (b) all or part of the Obligations are then permitted by the
Secured Instrument or Secured Instruments under which such Obligations are
<PAGE>

outstanding (because of the occurrence of an event of default or similar event
under such Secured Instrument or Secured Instruments) to be declared due and
payable prior to the stated maturity thereof pursuant to the terms of such
Secured Instrument or Secured Instruments.  A Notice of Enforcement shall be
deemed to have been given when the notice referred to in the preceding sentence
has actually been received by the Collateral Agent and to have been rescinded
when the Collateral Agent has actually received a Notice of Cancelation of
Enforcement.  A Notice of Enforcement shall be deemed to be in effect at all
times after such Notice of Enforcement has been given until such time, if any,
as such Notice of Enforcement has been rescinded.  The Representatives and
Unrepresented Holders that delivered a Notice of Enforcement shall rescind such
Notice of Enforcement once such Representatives and Unrepresented Holders are
satisfied that the event or events giving rise to such Notice of Enforcement
have been cured or waived in accordance with the applicable Secured Instrument
and no other event has occurred and is continuing that would permit a Notice of
Enforcement to be given.

          "Obligations" means, collectively, the Credit Facility Obligations,
           -----------
the Nortel Facility Obligations, the Ericsson Facility Obligations and all
Permitted Additional Obligations.

          "Parent" means Leap Wireless International, Inc., a Delaware
           ------
corporation.

          "Parent Guarantee Agreement" means the Guarantee Agreement dated as of
           --------------------------
August 28, 2000, between the Parent and the Collateral Agent.

          "Parent Pledge Agreement" means the Parent Pledge Agreement dated
           -----------------------
November 24, 1999, among the Parent and the Collateral Agent.

          "Permitted Additional Obligations" means (a) the principal of and
           --------------------------------
premium, if any, and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on any
Indebtedness for borrowed money of the Borrower, but only to the extent that
such Indebtedness is designated as "Permitted Additional Obligations" in
accordance with Section 2.01, and (b) all other monetary
<PAGE>

obligations (other than monetary obligations in respect of Indebtedness that
does not constitute Permitted Additional Obligations), including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) of the Borrower under the
Secured Instrument governing or evidencing such Indebtedness referred to in
clause (a) above; provided that any Indebtedness or obligations owing to
                  --------
Holdings, any Subsidiary Loan Party or Affiliate of the Borrower shall not
constitute Permitted Additional Obligations.

          "Permitted Additional Obligations Designation" means each Permitted
           --------------------------------------------
Additional Obligations Designation duly completed and executed by the Collateral
Agent, the Borrower and the holder or holders of the Permitted Additional
Obligations referenced therein (or a Representative of such holders) and
delivered pursuant to Section 2.01, substantially in form of Exhibit A.

          "Permitted Investments" means:
           ---------------------

          (a)  direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America), in each case
maturing within one year from the date of acquisition thereof;

          (b)  investments in commercial paper maturing within 270 days from the
date of acquisition thereof and having, at such date of acquisition, the highest
credit rating obtainable from S&P or from Moody's;

          (c)  investments in certificates of deposit, banker's acceptances and
time deposits maturing within 180 days from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts issued
or offered by, any domestic office of any commercial bank organized under the
laws of the United States of America or any State thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000; and
<PAGE>

          (d)  fully collateralized repurchase agreements with a term of not
more than 30 days for securities described in clause (a) above and entered into
with a financial institution satisfying the criteria described in clause (c)
above.

          "Person" means any natural person, corporation, limited liability
           ------
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

          "Principal Obligations" means the principal amount of the outstanding
           ---------------------
Obligations.

          "Related Parties" means, with respect to any specified Person, such
           ---------------
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

          "Representative" means, as to any Secured Party or Secured Parties,
           --------------
any Person designated in the Secured Instrument evidencing or governing the
Obligations held by such Secured Party or Secured Parties as the trustee, agent
or representative of such Secured Party or Secured Parties (including, in the
case of the Credit Facility Obligations, the Administrative Agent, in the case
of the Nortel Facility Obligations, the Nortel Agent, and, in the case of the
Ericsson Facility Obligations, the Ericsson Agent).

          "Required Committed Credit Facility Parties" means, at any time, with
           ------------------------------------------
respect to any Credit Facility, Secured Parties having outstanding Principal
Obligations and Secured Instrument Commitments under such Credit Facility
representing more than 50% of the aggregate principal amount of the total
outstanding Principal Obligations and Secured Instrument Commitments under such
Credit Facility at such time.

          "Required Committed Secured Parties" means, at any time, Secured
           ----------------------------------
Parties having outstanding Principal Obligations and Secured Instrument
Commitments representing more than 50% of the sum of the total outstanding
Principal Obligations and Secured Instrument Commitments at such time.

          "Required Credit Facility Parties" means, at any time, with respect to
           --------------------------------
any Credit Facility, Secured Parties having outstanding Principal Obligations
under such Credit
<PAGE>

Facility representing more than 50% of the aggregate principal amount of the
total outstanding Principal Obligations under such Credit Facility at such time.

          "Required Non-Vendor Secured Parties" means, at any time, Non-Vendor
           -----------------------------------
Secured Parties having outstanding Principal Obligations representing more than
50% of the aggregate principal amount of the total outstanding Principal
Obligations held by all Non-Vendor Secured Parties at such time.

          "Required Secured Parties" means, at any time, Secured Parties having
           ------------------------
outstanding Principal Obligations representing more than 50% of the aggregate
principal amount of the total outstanding Principal Obligations at such time.

          "S&P" means Standard & Poor's.
           ---

          "Secured Instrument" means any instrument or agreement (other than the
           ------------------
Support Documents) that evidences or governs the terms of any of the Obligations
(including, in the case of the Credit Facility Obligations, the Credit
Agreement, in the case of the Nortel Facility Obligations, the Nortel Credit
Agreement, and, in the case of the Ericsson Facility Obligations, the Ericsson
Credit Agreement).

          "Secured Instrument Commitments" means, at any time, commitments in
           ------------------------------
effect at such time to extend credit to the Borrower under any Secured
Instrument that, if extended at such time, would constitute Principal
Obligations.

          "Secured Parties" means the Collateral Agent and the Holders of the
           ---------------
Obligations (including, in the case of the Credit Facility Obligations, the
Lenders and the Administrative Agent, in the case of the Nortel Facility
Obligations, the Nortel Lenders and the Nortel Agent, and, in the case of the
Ericsson Facility Obligations, the Ericsson Lenders and the Ericsson Agent).

          "Security Agreement" means the Security Agreement dated as of November
           ------------------
24, 1999, among the Borrower, the Subsidiary Loan Parties and the Collateral
Agent.

          "Security Documents" means the Initial Security Documents and the
           ------------------
Additional Security Documents.
<PAGE>

          "Subordination Agreement" means the Subordination Agreement dated as
           -----------------------
of November 24, 1999, among the Loan Parties and the Collateral Agent.

          "Subordination Collateral Account" has the meaning set forth in
           --------------------------------
Section 5.01(a).

          "subsidiary" means, with respect to any Person (the "parent") at any
           ----------                                          ------
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

          "Subsidiary" means any subsidiary of the Borrower.
           ----------

          "Subsidiary Loan Parties" means the Subsidiaries and the License
           -----------------------
Subsidiaries.

          "Support Documents" means the Security Documents, the Indemnity,
           -----------------
Subrogation and Contribution Agreement, the Subordination Agreement, the
Guarantee Agreement and the Parent Guarantee Agreement.

          "Unrepresented Holder" means any Holder for which there is no
           --------------------
Representative.

          "Vendor" means a Person that sells equipment to, or provides non-
           ------
financial services to, any of the Loan Parties.

          SECTION 1.02.  Terms Generally.  The definitions of terms herein shall
                         ----------------
apply equally to the singular and plural forms of the terms defined.  Whenever
the context may require, any pronoun shall include the corresponding
<PAGE>

masculine, feminine and neuter forms.  The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
The word "will" shall be construed to have the same meaning and effect as the
word "shall". Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified, (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles, Sections
and Exhibits shall be construed to refer to Articles and Sections of, and
Exhibits to, this Agreement and (e) the words "asset" and "property" shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts, contract rights, licenses and intellectual property.

          SECTION 1.03.  Accounting Terms; GAAP.  Except as otherwise expressly
                         -----------------------
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
                                                                   --------
that, if the Borrower notifies the Collateral Agent that the Borrower requests
an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Collateral Agent notifies the Borrower
that the Required Committed Secured Parties request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then
such provision shall be interpreted on the basis of GAAP as in effect and
applied immediately before such change shall have become effective until such
notice shall have been withdrawn or such provision amended in accordance
herewith.

                                  ARTICLE II

                       Permitted Additional Obligations;
                       ---------------------------------
                         Additional Security Documents
                         -----------------------------
<PAGE>

          SECTION 2.01.  Permitted Additional Obligations.  (a)  The Borrower
                         ---------------------------------
may from time to time designate any Indebtedness (including Indebtedness to be
advanced pursuant to Secured Instrument Commitments under any Credit Facility)
for borrowed money of the Borrower as Permitted Additional Obligations hereunder
by (i) delivering to the Collateral Agent a Permitted Additional Obligations
Designation in respect of such Indebtedness describing such Indebtedness and
attaching thereto a true and complete copy of all instruments and agreements
(together with all schedules, exhibits, annexes, appendices and other
attachments thereto), including the applicable Secured Instruments, relating to
such Indebtedness to which the Borrower or any Subsidiary Loan Party is a party,
and (ii) delivering to the Collateral Agent a certificate of a Financial Officer
to the effect that such designation of such Indebtedness is not in contravention
of any Secured Instrument.  Upon completion of the actions described in clauses
(i) and (ii) of the preceding sentence, but subject to the following paragraph,
the Indebtedness designated by such Permitted Additional Obligations Designation
shall constitute Permitted Additional Obligations and the Holders thereof shall
constitute Secured Parties hereunder and shall be bound by the provisions
hereof.

          (b)  Notwithstanding anything herein to the contrary, (i) the Borrower
agrees that it will not incur any Indebtedness that would result in the total
outstanding Principal Obligations at any time exceeding $1,845,000,000 and (ii)
any purported designation of any Indebtedness as Permitted Additional
Obligations that would result in the total outstanding Principal Obligations
exceeding the limitation set forth in the foregoing clause (i) at the time of
such purported designation shall be null and void and of no force or effect.

          (c)  It is the intent of the parties that, after the date hereof, any
increase in the total amount of Principal Obligations and Secured Instrument
Commitments over the total amount thereof previously designated hereunder shall
require the execution and delivery of an additional Permitted Additional
Obligations Designation, notwithstanding that such additional Principal
Obligations or Secured Instrument Commitments are under the Credit Agreement,
the Nortel Credit Agreement, the Ericsson Credit Agreement or any other Credit
Facility that was the subject of a previous Permitted Additional Obligations
Designation, but that any Indebtedness resulting from loans advanced
<PAGE>

pursuant to a Secured Instrument Commitment that was properly designated as
Permitted Additional Obligations in accordance with this Agreement (and in
compliance with paragraph (b) above) at the time of execution and delivery of
the Permitted Additional Obligations Designation relating thereto shall
constitute Permitted Additional Obligations notwithstanding any subsequent
failure by the Borrower to comply with paragraph (b) above.

          SECTION 2.02.  Additional Security Documents.  If the Borrower or any
                         ------------------------------
Subsidiary Loan Party is required by any Secured Instrument, Security Document
or other agreement to grant a security interest in or Lien on, or assignment of,
any assets (other than assets constituting Collateral under the Initial Security
Documents) of the Borrower or any Subsidiary Loan Party to secure any
Obligations, the Borrower shall, or shall cause the applicable Subsidiary Loan
Party or Subsidiary Loan Parties to, grant such security interest in or Lien on,
or assignment of, such assets to the Collateral Agent to secure all the
Obligations pursuant to an Additional Security Document.

                                  ARTICLE III

                           Acts of Secured Parties;
                           ------------------------
                            Amounts of Obligations
                            ----------------------
<PAGE>

          SECTION 3.01.  Acts of Secured Parties.  Any  request, demand,
                         ------------------------
authorization, direction, notice, consent, waiver or other action permitted or
required by this Agreement to be given or taken by any Secured Party, the
Required Secured Parties, the Required Non-Vendor Secured Parties, the Required
Committed Credit Facility Parties or the Required Credit Facility Parties with
respect to any Credit Facility or the Required Committed Secured Parties may be
and, at the request of the Collateral Agent, shall be embodied in and evidenced
by one or more instruments reasonably satisfactory in form to the Collateral
Agent and signed by such Secured Party or its Representative or the Required
Secured Parties, the Required Non-Vendor Secured Parties, the Required Committed
Credit Facility Parties or the Required Credit Facility Parties with respect to
any Credit Facility or the Required Committed Secured Parties or their
Representatives (as applicable) and, except as otherwise expressly provided in
any such instrument, any such action shall become effective when such instrument
or instruments shall have been delivered to the Collateral Agent.  The
instrument or instruments evidencing any action (and the action embodied therein
and evidenced thereby) are sometimes referred to herein as an "Act" of the
                                                               ---
Persons signing such instrument or instruments.  The Collateral Agent shall be
entitled to rely absolutely upon (a) an Act of any Representative if such Act
purports to be taken by or on behalf of the Secured Parties represented by such
Representative and (b) an Act of any Holder if such Act purports to be taken by
or on behalf of such Holder, and nothing in this Section 3.01 or elsewhere in
this Agreement shall be construed to require any Representative or Holder to
demonstrate that it has been authorized to take any action which it purports to
be taking, the Collateral Agent being entitled to rely conclusively, and being
fully protected in so relying, on any Act of such Representative or Holder.

          SECTION 3.02.  Determination of Amounts of Obligations.  Whenever the
                         ----------------------------------------
Collateral Agent is required to determine the existence or amount of any of the
Obligations or Secured Instrument Commitments or any portion thereof for any
purposes of this Agreement, it shall be entitled to make such determination on
the basis of one or more certificates of any applicable Representative or
Holder; provided that if, notwithstanding the request of the Collateral Agent,
        --------
any applicable Representative or Holder shall fail or refuse promptly to certify
as to the existence or amount of any Obligations or Secured
<PAGE>

Instrument Commitments or any portion thereof, the Collateral Agent shall be
entitled to determine such existence or amount by such method as the Collateral
Agent may, in its sole discretion exercised in good faith, determine, including
by reliance upon a certificate of the Borrower; provided further that, promptly
                                                ----------------
following determination of any such amount, the Collateral Agent shall notify
such Representative or Holder of such determination and thereafter shall correct
any error that such Representative or Holder brings to the attention of the
Collateral Agent. The Collateral Agent may rely conclusively, and shall be fully
protected in so relying, on any determination made by it in accordance with the
provisions of the preceding sentence (or as otherwise directed by a court of
competent jurisdiction) and shall have no liability to the Borrower or any
Secured Party or any other Person as a result of any action taken by the
Collateral Agent based upon such determination prior to receipt of notice of any
error in such determination.

          SECTION 3.03.  Restrictions on Actions.  Each Secured Party agrees
                         ------------------------
that, unless and until this Agreement is terminated as provided herein, the
provisions of this Agreement shall provide the exclusive method by which any
Secured Party may exercise, or direct the exercise of, rights and remedies under
the Support Documents.  Therefore, each Secured Party shall, for the mutual
benefit of all Secured Parties, except as permitted under this Agreement:

          (a)  refrain from taking or filing any action, judicial or otherwise,
to enforce any rights or pursue any remedies under the Support Documents, except
for delivering notices hereunder; and

          (b)  refrain from exercising any rights or remedies under the Support
Documents which may be exercisable as a result of an event that could result in
a Notice of Enforcement.

Except as specifically otherwise provided herein or in the Secured Instrument to
which a Secured Party is a party, however, any Secured Party or the Collateral
Agent, as applicable, may exercise any right or remedy available to it under any
Secured Instrument, any related agreement (other than the Support Documents) or
otherwise at law or in equity, including (i) imposing a default rate of interest
in accordance with the applicable Secured
<PAGE>

Instrument, (ii) exercising any right or remedy or taking any other action that
it is permitted or authorized to exercise or take or (iii) exercising its rights
and remedies as a general creditor in accordance with the applicable Secured
Instrument and applicable law, including the right to cease advancing loans or
otherwise extending credit to the Borrower, to commence legal proceedings to
collect any Obligation due and payable to such Secured Party and remaining
unpaid, to accelerate the maturity of any Obligations or to terminate any
Secured Instrument Commitment in accordance with the applicable Secured
Instrument, to commence legal proceedings (including involuntary bankruptcy
proceedings) to enforce any Secured Instrument and obtain a judgment and to
enforce such judgment, in each case to the same extent as if such Secured Party
were an unsecured creditor.

                                  ARTICLE IV

                          Duties of Collateral Agent
                          --------------------------

          SECTION 4.01.  Notice to Secured Parties.  The Collateral Agent shall
                         --------------------------
promptly notify each Representative and Unrepresented Holder in the event it
shall receive any Notice of Enforcement or any Notice of Cancelation of
Enforcement or any request by any party hereto or by any Loan Party for any
consent, waiver or amendment with respect hereto or any other Support Document.
Upon being notified by the Collateral Agent of any such Notice of Enforcement or
Notice of Cancelation of Enforcement, each Representative shall notify each
Secured Party that it represents of such Notice of Enforcement or Notice of
Cancelation of Enforcement.

          SECTION 4.02.  Actions Under Support Documents; Notices of
                         -------------------------------- ----------
Enforcement; Etc.  (a) The Collateral Agent shall not be obligated to take any
-----------------
action under this Agreement or any of the Support Documents except for the
performance of such duties as are specifically set forth herein or therein.

          (b)  A Notice of Enforcement may be delivered only by:

          (i)  the Required Secured Parties;
<PAGE>

          (ii)   the Required Non-Vendor Secured Parties; provided that, at the
                                                         --------
     time such Notice of Enforcement is delivered, the aggregate amount of
     outstanding Principal Obligations held by all Non-Vendor Secured Parties is
     greater than or equal to the lesser of (A) 15% of the aggregate amount of
     outstanding Principal Obligations and (B) $50,000,000; or

           (iii) the Required Credit Facility Parties under any Credit
     Facility; provided that, at the time such Notice of Enforcement is
               --------
     delivered, (A) the aggregate amount of outstanding Principal Obligations
     under such Credit Facility is greater than or equal to 15% of the aggregate
     amount of outstanding Principal Obligations, (B) the aggregate amount of
     outstanding Principal Obligations held by all Non-Vendor Secured Parties is
     less than the lesser of (1) 15% of the aggregate amount of outstanding
     Principal Obligations and (2) $50,000,000, and (C) an event of default has
     occurred and is continuing under such Credit Facility that permits the
     Obligations thereunder to be declared due and payable prior to the stated
     maturity thereof pursuant to the terms of such Credit Facility (or such
     Obligations have become due and payable and have not been paid) and a
     period of 90 days has lapsed during which such event of default has been
     continuing and has not been cured or waived (or such Obligations have not
     been paid, as the case may be).

          (c)  A Notice of Cancelation of Enforcement may be delivered only by:

          (i)  the Required Secured Parties; provided that such Notice of
                                             --------
     Cancelation of Enforcement pertains to a Notice of Enforcement delivered by
     the Required Secured Parties;

          (ii)  the Required Non-Vendor Secured Parties; provided that, at the
                                                         --------
     time such Notice of Cancelation of Enforcement is delivered, the aggregate
     amount of outstanding Principal Obligations held by all Non-Vendor Secured
     Parties is greater than or equal to the lesser of (A) 15% of the aggregate
     amount of outstanding Principal Obligations and (B) $50,000,000; or

          (iii)  the Required Credit Facility Parties under any Credit Facility;
     provided that such Notice of
     --------
<PAGE>

     Cancelation of Enforcement pertains to a Notice of Enforcement delivered by
     the Required Credit Facility Parties under the same Credit Facility.

          (d)  Subject to the provisions of Article VII, the Collateral Agent
shall take any action under or with respect to the Support Documents which is
not inconsistent with or contrary to the provisions of this Agreement or any
other Support Document and which is in accordance with written instructions that
the Collateral Agent has received from:

          (i)  at any time when a Notice of Enforcement is in effect:

          (A)  the Required Secured Parties; provided that such instructions are
                                             --------
     not inconsistent with any written instructions given by the Required Non-
     Vendor Secured Parties if, at such time, the aggregate amount of
     outstanding Principal Obligations held by all Non-Vendor Secured Parties is
     greater than or equal to the lesser of (A) 15% of the aggregate amount of
     outstanding Principal Obligations and (B) $50,000,000;

          (B)  the Required Non-Vendor Secured Parties; provided that, at such
                                                        --------
     time, the aggregate amount of outstanding Principal Obligations held by all
     Non-Vendor Secured Parties is greater than or equal to the lesser of (A)
     15% of the aggregate amount of outstanding Principal Obligations and (B)
     $50,000,000; or

          (C)  subject to conflicting instructions that the Collateral Agent is
     required to follow pursuant to Section 4.03, the Required Credit Facility
     Parties under any Credit Facility; provided that such Notice of Enforcement
                                        --------
     was delivered by the Required Credit Facility Parties under the same Credit
     Facility; and

          (ii)  at any other time, the Required Committed Secured Parties.

          (e)  The Collateral Agent may not exercise any remedy under Section 9-
505(2) of the Uniform Commercial Code, as in effect in any applicable
jurisdiction, except with the consent of each Secured Party affected thereby.
<PAGE>

          SECTION 4.03.  Conflicting Instructions; No Instructions.  (a)  At any
                         ------------------------------------------
time when a Notice of Enforcement shall be in effect, the Collateral Agent
shall, subject in all cases to the provisions of Article VII, exercise or
refrain from exercising all such rights, powers and remedies as shall be
available to it under the Support Documents or any of them in accordance with
any written instructions received in accordance with Section 4.02(d)(i), subject
to paragraph (b) below, in the case of conflicting instructions received in
accordance with Section 4.02(d)(i).  Absent any such written instructions at a
time when a Notice of Enforcement shall be in effect, the Collateral Agent may
take, but shall have no obligation to take, any and all such actions under the
Support Documents or any of them or otherwise as it shall deem to be in the best
interests of the Secured Parties in order to maintain the Collateral and protect
and preserve the Collateral and the rights of the Secured Parties.

          (b)  At any time when a Notice of Enforcement shall be in effect, if
the Collateral Agent shall receive conflicting instructions given in accordance
with Section 4.02(d)(i) with respect to the exercise of remedies under or with
respect to the Support Documents:

          (i)  if such conflict shall occur with respect to whether or not to
     exercise such remedies, the Collateral Agent shall follow those
     instructions directing the Collateral Agent to exercise remedies; provided
                                                                       --------
     that the Collateral Agent shall follow instructions directing it not to
     exercise remedies received from the Required Non-Vendor Secured Parties if,
     at such time, the aggregate amount of outstanding Principal Obligations
     held by all Non-Vendor Secured Parties is greater than or equal to the
     lesser of (A) 15% of the aggregate amount of outstanding Principal
     Obligations and (B) $50,000,000; and

          (ii)  if such conflict shall occur with respect to the manner of
     exercising such remedies, the Collateral Agent shall follow the
     instructions of (A) the Required Non-Vendor Secured Parties if, at such
     time, the aggregate amount of outstanding Principal Obligations held by all
     Non-Vendor Secured Parties is greater than or equal to the lesser of (1)
     15% of the aggregate amount of outstanding Principal Obligations and (2)
     $50,000,000 or (B), if clause (A) does not apply (or if clause (A) does
     apply but the Required
<PAGE>

     Non-Vendor Secured Parties shall fail to give instructions), the Required
     Secured Parties or (C) if the applicable Notice of Enforcement was given by
     the Required Credit Facility Secured Parties under a Credit Facility and
     clauses (A) and (B) above do not apply (or clause (A) or (B) above does
     apply but no instructions are given thereunder), then the Required Credit
     Facility Secured Parties under such Credit Facility, or (D) if clauses (A),
     (B) and (C) above do not apply (or any such clause does apply but no
     instructions are given thereunder), then the Representative or
     Unrepresented Holders representing the greatest amount of Principal
     Obligations then outstanding that shall have delivered instructions to the
     Collateral Agent.

Representatives and Unrepresented Holders giving instructions to the Collateral
Agent under this Section 4.03 shall do so in good faith and shall give such
instructions as shall have the effect of realizing on the Collateral and take
other available remedies under the Support Documents in a reasonably appropriate
and expeditious manner under the circumstances then applicable.

          SECTION 4.04.  Records.  (a)  The Collateral Agent shall maintain
                         --------
records regarding determinations of the amounts of the outstanding Obligations
and Secured Instrument Commitments for any purpose, any distributions from the
Collateral Accounts and any information received by the Collateral Agent
pursuant to Section 6.02.  The information contained in such records shall be
made available to any Secured Party upon request.

          (b)  The Collateral Agent shall maintain a record of the total
outstanding Principal Obligations and Secured Instrument Commitments at any time
in effect.  The Borrower shall promptly notify the Collateral Agent of any
change in the outstanding Principal Obligations or Secured Instrument
Commitments at any time, whether as a result of any termination or reduction of
such Secured Instrument Commitments, or any payment in respect of such Principal
Obligations or otherwise.  The information contained in such records shall be
made available to any Secured Party upon request.  Any Secured Party shall be
entitled to rely upon such information.

                                   ARTICLE V
<PAGE>

                      Collateral Accounts; Distributions
                      ----------------------------------

          SECTION 5.01.  The Collateral Accounts.  (a)  The Collateral Agent
                         ------------------------
shall establish and maintain at its office located at Two Avenue DeLefayette,
6th Floor, Boston, MA 02111-1724, three collateral accounts designated the
"Enforcement Collateral Account", the "Subordination Collateral Account" and the
-------------------------------        --------------------------------
"General Collateral Account", respectively (such collateral accounts,
 --------------------------
collectively, the "Collateral Accounts").
                   -------------------

          (b)  All amounts which are received by the Collateral Agent (in its
capacity as Collateral Agent) in respect of the Collateral, whether in
connection with the exercise of any right or remedy provided in this Agreement
or any other Support Document or otherwise (including all amounts received on
account of any sale of or other realization upon any of the Collateral pursuant
to any Security Document), or pursuant to enforcement of the Guarantee Agreement
or the Parent Guarantee Agreement, in each case while a Notice of Enforcement is
in effect shall be deposited in the Enforcement Collateral Account.  While a
Notice of Enforcement is in effect, all amounts on deposit in or required to be
deposited in the Subordination Collateral Account or the General Collateral
Account shall be transferred to the Enforcement Collateral Account.  Upon the
rescission of each effective Notice of Enforcement in accordance with the terms
hereof, the Collateral Agent shall (subject to the payment of any Obligations
then due in accordance with Section 5.02) release any funds then remaining on
deposit in the Enforcement Collateral Account to any Loan Party to the extent
required by any of the Security Documents; provided that such funds in an amount
                                           --------
equal to the sum of (x) the amount of General Funds transferred to the
Enforcement Collateral Account from the General Collateral Account pursuant to
paragraph (d) of this Section and (y) the amount of funds that would have been
deposited in the General Collateral Account pursuant to paragraph (d) of this
Section if a Notice of Enforcement had not been in effect, together with all
interest and income on such amounts, shall be deposited in the General
Collateral Account for application in accordance with the terms of paragraph (d)
of this Section.

          (c)  All amounts which are received by the Collateral Agent (in its
capacity as Collateral Agent) pursuant to terms of the Subordination Agreement
shall be
<PAGE>

deposited in the Subordination Collateral Account.  While a Notice of
Enforcement is in effect, all amounts on deposit in or required to be deposited
in the Subordination Collateral Account shall be transferred to the Enforcement
Collateral Account.

          (d)  All amounts which are received by the Collateral Agent (in its
capacity as Collateral Agent) which by the terms of any Support Document or any
Secured Instrument are required to be held by the Collateral Agent (other than
amounts required to be deposited in the Enforcement Collateral Account or the
Subordination Collateral Account) shall be deposited in the General Collateral
Account.  While a Notice of Enforcement is in effect, all amounts on deposit in
or required to be deposited in the General Collateral Account shall be
transferred to the Enforcement Collateral Account.  The Borrower may, by
delivery to the Collateral Agent of a General Funds Release Request, request a
release of General Funds from the General Collateral Account in accordance with
the applicable provisions of the Support Document or Secured Instrument or
Secured Instruments which required such funds to be deposited with the
Collateral Agent (but only to the extent any funds in the General Collateral
Account were deposited in the General Collateral Account pursuant to such
agreements).  If no Notice of Enforcement is in effect on the date on which such
General Funds are requested to be released pursuant to the applicable General
Funds Release Request, the Collateral Agent shall release such General Funds in
accordance with such General Funds Release Request.  Pending the receipt by the
Collateral Agent of a General Funds Release Request with respect to any General
Funds or a transfer of such General Funds to the Enforcement Collateral Account
as provided above, the Collateral Agent shall invest such funds in Permitted
Investments (and the proceeds thereof and interest thereon shall constitute part
of such General Funds).

          (e)  All amounts deposited in the Collateral Accounts shall be held by
the Collateral Agent subject to the terms hereof and of the Support Documents
and shall constitute Collateral under the Security Agreement.  No Loan Party
shall have any rights with respect to, and the Collateral Agent shall have
exclusive dominion and control over, the Collateral Accounts.
<PAGE>

          SECTION 5.02.  Application of Proceeds.  Subject to Section 5.05, all
                         ------------------------
amounts deposited in the Enforcement Collateral Account shall be applied in the
following order of priority:

          FIRST, to the payment of all costs and expenses incurred by the
Collateral Agent (in its capacity as such hereunder or any other Support
Document) in connection with any Support Document or any of the Obligations,
including all court costs and the fees and expenses of its agents and legal
counsel, the repayment of all advances made by the Collateral Agent under any
Support Document on behalf of any Loan Party and any other costs and expenses
incurred in connection with the exercise of any right or remedy hereunder or
under any other Support Document;

          SECOND, to the Secured Parties pro rata in accordance with the
aggregate amounts of the Obligations outstanding on the date of any such
distribution (whether or not due and payable); and

          THIRD, the balance, if any, to the Borrower or its successors and
assigns, or such other Person or Persons as shall be entitled thereto, or as a
court of competent jurisdiction may otherwise direct.

          SECTION 5.03.  Time of Payments.  All distributions under Section 5.02
                         -----------------
shall be made by the Collateral Agent reasonably promptly after its receipts of
the applicable funds, subject to Section 5.04.

          SECTION 5.04.  Application of Amounts Not Distributable.  If any
                         -----------------------------------------
Representative or Unrepresented Holder shall inform the Collateral Agent in
writing that no provision is made under the relevant Secured Instrument for the
application of amounts which are to be distributed in respect of Obligations
under such Secured Instrument pursuant to Section 5.02 (whether by virtue of the
applicable Obligations thereunder not being then due and payable or otherwise)
or for the holding of such amounts by or on behalf of such parties pending
application thereof, then the Collateral Agent shall invest such amounts in
Permitted Investments and shall hold such amounts and all proceeds thereof in
the Enforcement Collateral Account, solely for the Secured Parties represented
by such Representative or such Unrepresented Holder, as the case may be, until
such Representative or Unrepresented Holder shall notify the Collateral Agent
that such Obligations
<PAGE>

have been paid (in which case such amounts and all proceeds thereof shall be
applied in accordance with the provisions of Section 5.02) or shall request the
delivery thereof by the Collateral Agent for application pursuant to such
Secured Instrument.

          SECTION 5.05.  Treatment of Contingent Obligations.  Notwithstanding
                         ------------------------------------
the foregoing, distributions under clause SECOND of Section 5.02 shall be made
disregarding any Contingent Obligations.  If any Contingent Obligations exist at
any time that any amounts are to be distributed to the Borrower under clause
THIRD of Section 5.02, the Collateral Agent shall deposit such amounts up to an
amount equal to such Contingent Obligations in a collateral account established
and maintained at its office located at Two Avenue DeLefayette, 6th Floor,
Boston, MA 02111-1724 (designated the "Contingent Obligations Collateral
                                       ---------------------------------
Account") for the benefit of the Secured Parties that have a claim with respect
-------
to such Contingent Obligations.  The Collateral Agent shall invest such amounts
in Permitted Investments until the Representative of such Secured Parties or the
applicable Unrepresented Holder, as the case may be, shall notify the Collateral
Agent that any or all of the Contingent Obligations with respect to the Secured
Parties represented by such Representative or such Unrepresented Holder, as the
case may be, have become fixed or liquidated (in which case such amounts up to
the amount in the Contingent Obligations Collateral Account shall be delivered
to such Representative or Unrepresented Holder, as the case may be, to be
applied pursuant to the applicable Secured Instrument) or that such Contingent
Obligations have expired or cease to exist (in which case an amount in the
Contingent Obligations Collateral Account in excess of the Contingent
Obligations outstanding at such time shall be applied in accordance with the
provisions of Section 5.02).

          SECTION 5.06.  Collateral Agent's Calculations.  In making the
                         --------------------------------
determinations and allocations required by Section 5.02, the Collateral Agent
may rely upon  certificates as provided in Section 3.02, as to the amounts
payable with respect to Obligations.  If any Secured Party receives any amount
pursuant to Section 5.02 in excess of the amount it was entitled to receive
pursuant to Section 5.02 as a result of a demonstrable error in the
determination of the amount of the Obligations, then such Secured Party (by
becoming a Holder of Obligations and accepting the benefits of this Agreement)
agrees to pay
<PAGE>

such excess to the Collateral Agent for application in accordance with Section
5.02 as soon as practicable after the existence of such error shall have been
determined. All distributions made by the Collateral Agent pursuant to Section
5.02 shall be (subject to the preceding sentence and to any decree of any court
of competent jurisdiction and to the preceding sentence) final, and the
Collateral Agent shall have no duty to inquire as to the application by any
Representative or Unrepresented Holder of any amounts distributed to them.

                                  ARTICLE VI

                                  Agreements
                                  ----------

          SECTION 6.01.  Delivery of Agreements.  The Borrower shall deliver to
                         -----------------------
the Collateral Agent, promptly upon the execution thereof, true and complete
copies of (a) all amendments, supplements or other modifications to any Secured
Instrument and (b) each Additional Security Document.

          SECTION 6.02.  Information.  On a quarterly basis promptly following
                         ------------
the end of each calendar quarter, and from time to time upon the request of the
Collateral Agent (which request may be made by the Collateral Agent at the
reasonable direction of any Secured Party), the Borrower shall promptly deliver
to the Collateral Agent a list, setting forth as of a specified date not more
than 10 days prior to the date of delivery, of the aggregate outstanding
Obligations and Secured Instrument Commitments and the name and address of each
Secured Party (and the name and address of such Secured Party's Representative,
if any) and the respective amounts of Obligations and Secured Instrument
Commitments attributable to each.  The Collateral Agent shall provide a copy of
the most recent list delivered to it under this Section to any Secured Party
upon request.

                                  ARTICLE VII

                             The Collateral Agent
                             --------------------

          SECTION 7.01.  Appointment; Rights and Duties.
                         -------------------------------
<PAGE>

          (a)  Each of the Secured Parties hereby irrevocably appoints the
Collateral Agent as its agent and authorizes the Collateral Agent to take such
actions on its behalf and to exercise such powers as are delegated to the
Collateral Agent by the terms of the Support Documents, together with such
actions and powers as are reasonably incidental thereto.

          (b)  Any Person serving as the Collateral Agent hereunder shall have
the same rights and powers in its capacity as a Secured Party as any other
Secured Party and may exercise the same as though it were not the Collateral
Agent, and such Person and its Affiliates may accept deposits from, lend money
to and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if it were not the Collateral Agent
hereunder.

          (c)  The Collateral Agent shall not have any duties or obligations
except those expressly set forth in the Support Documents.  Without limiting the
generality of the foregoing, (i) the Collateral Agent shall not be subject to
any fiduciary or other implied duties, regardless of whether a Notice of
Enforcement is in effect, (ii) the Collateral Agent shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Support Documents
that the Collateral Agent is required to exercise in writing by the Required
Secured Parties, and (iii) except as expressly set forth in the Support
Documents, the Collateral Agent shall not have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to the
Parent, Holdings, the Borrower or the Subsidiary Loan Parties that is
communicated to or obtained by the Person serving as the Collateral Agent or any
of its Affiliates in any capacity.  The Collateral Agent shall not be liable for
any action taken or not taken by it with the consent or at the request of the
Secured Parties (or the requisite portion thereof as required by any applicable
provision of this Agreement) or in the absence of its own gross negligence or
wilful misconduct.  The Collateral Agent shall be deemed not to have knowledge
of any event that could result in a Notice of Enforcement unless and until a
Notice of Enforcement is given to the Collateral Agent, and the Collateral Agent
shall not be responsible for or have any duty to ascertain or inquire into (A)
any statement, warranty or representation made in or in connection with
<PAGE>

any Support Document or Secured Instrument, (B) the contents of any certificate,
report or other document delivered thereunder or in connection therewith, (C)
the performance or observance of any of the covenants, agreements or other terms
or conditions set forth in any Support Document or Secured Instrument, (D) the
validity, enforceability, effectiveness or genuineness of any Support Document
or Secured Instrument or any other agreement, instrument or document, or (E) the
satisfaction of any condition set forth in any Support Document or Secured
Instrument, other than to confirm receipt of items expressly required to be
delivered to the Collateral Agent.

          (d)  The Collateral Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing believed by it to be
genuine and to have been signed or sent by the proper Person.  The Collateral
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any
liability for relying thereon.  The Collateral Agent may consult with legal
counsel (who may be counsel for the Parent or the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

          (e)  The Collateral Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Collateral Agent.  The Collateral Agent and any such sub-agent
may perform any and all its duties and exercise its rights and powers through
their respective Related Parties.  The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Collateral Agent and any such sub-agent, and shall apply to their respective
activities in connection with the activities as Collateral Agent.

          (f)  Subject to the appointment and acceptance of a successor
Collateral Agent as provided in this paragraph, the Collateral Agent may resign
at any time by notifying each Secured Party and the Borrower.  Upon any such
resignation, the Required Committed Secured Parties (or, at any time when a
Notice of Enforcement is in effect, the Required Secured Parties) shall have the
right to appoint a successor.  If no successor shall have been so appointed by
<PAGE>

the Required Committed Secured Parties (or, if applicable, the Required Secured
Parties) and shall have accepted such appointment within 30 days after the
retiring Collateral Agent gives notice of its resignation, then the retiring
Collateral Agent may, on behalf of the Secured Parties, appoint a successor
Collateral Agent which shall be a bank with an office in New York, New York or
an Affiliate of any such bank.  Upon the acceptance of its appointment as
Collateral Agent hereunder by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring
Collateral Agent, and the retiring Collateral Agent shall be discharged from its
duties and obligations hereunder.  The fees payable by the Borrower to a
successor Collateral Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor.  After the
Collateral Agent's resignation hereunder, the provisions of this Article shall
continue in effect for the benefit of such retiring Collateral Agent, its sub-
agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while it was acting as Collateral Agent.

          (g)  Each Secured Party acknowledges that it has, independently and
without reliance upon the Collateral Agent or any other Secured Party and based
on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to extend credit to the Borrower pursuant to the
applicable Secured Instrument and enter into this Agreement.  Each Secured Party
also acknowledges that it will, independently and without reliance upon the
Collateral Agent or any other Secured Party and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Support Document or related agreement or any document furnished
hereunder or thereunder.

          SECTION 7.02.  Expenses; Indemnity; Damage Waiver.      (a)  The
                         -----------------------------------
Borrower shall pay (i) all costs and expenses incurred by the Collateral Agent,
including the fees, charges and disbursements of counsel for the Collateral
Agent, in connection with the negotiation, preparation, execution and delivery
of the Support Documents, and (ii) all costs and expenses incurred by the
Collateral Agent, including the fees, charges and disbursements of any counsel,
consultants or appraisers for
<PAGE>

the Collateral Agent, in connection with (A) the enforcement or protection of
its rights in connection with the Support Documents, including its rights under
this Section and (B) the administration of, and any amendments, modifications,
waivers or supplements of or to the provisions of, any of the Support Documents.

          (b)  The Borrower shall indemnify the Collateral Agent and each of its
Related Parties (each such Person being called an "Indemnitee") against, and
                                                   ----------
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of any Support Document or Secured Instrument or any other
agreement or instrument contemplated hereby, or the performance by the parties
to the Support Documents or Secured Instruments of their respective obligations
thereunder, (ii) any extension of credit under any Secured Instrument or the use
of the proceeds therefrom, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by the Borrower or
any of the Subsidiary Loan Parties or at which any Collateral is located, or any
Environmental Liability related in any way to the Borrower or any of the
Subsidiary Loan Parties, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be
               --------
available to the extent that such losses, claims, damages, liabilities or
related expenses have resulted from the gross negligence or wilful misconduct of
such Indemnitee.

          (c)  To the extent that the Borrower fails to pay any amount required
to be paid by it to the Collateral Agent under paragraph (a) or (b) of this
Section, each Secured Party severally agrees to pay to the Collateral Agent such
Secured Party's pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
--------
liability or related expense, as the case may be, was incurred by or asserted
against the Collateral Agent in its capacity as such.  For purposes hereof, a
Secured Party's pro rata share shall be determined based
<PAGE>

upon its share of the aggregate amount of outstanding Principal Obligations and
Secured Instrument Commitments at the time.

          (d)  To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any agreement or instrument contemplated hereby.

          (e)  All amounts due under this Section shall be payable not later
than 30 days after written demand therefor.

                                 ARTICLE VIII

                        Representations and Warranties
                        ------------------------------

          The Borrower represents and warrants to the Secured Parties that:

          SECTION 8.01.  Organization; Powers.  Each Loan Party is duly
                         ---------------------
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry
on its business as now conducted and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a material adverse effect of the Borrower and the Subsidiary Loan Parties taken
as a whole, is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required.

          SECTION 8.02.  Authorization; Enforceability.  The execution delivery
                         ------------------------------
and performance by each Loan Party of the Support Documents to which it is a
party are within such Loan Party's corporate powers and have been duly
authorized by all necessary company or corporate, as the case may be, and, if
required, stockholder action.  This Agreement and each other Support Document
has been duly executed and delivered by each Loan Party that is a party thereto
and constitutes a legal, valid and binding obligation of such Loan Party (as the
case may be), enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors' rights
<PAGE>

generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.

          SECTION 8.03.  Governmental Approvals; No Conflicts.  The execution,
                         -------------------------------------
delivery and performance by each Loan Party of the Support Documents to which it
is a party (a) do not require any consent or approval of, registration or filing
with, or any other action by, any Governmental Authority, except such as have
been obtained or made and are in full force and effect and except filings
necessary to perfect Liens created under the Security Documents, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of any Loan Party or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon any Loan Party or its assets, or give
rise to a right thereunder to require any payment to be made by any Loan Party,
and (d) will not result in the creation or imposition of any Lien on any asset
of any Loan Party, except Liens created under the Security Documents.

                                  ARTICLE IX

                          Intercreditor Arrangements
                          --------------------------

          SECTION 9.01.  Security Interests.  The Collateral Agent and each of
                         -------------------
the Secured Parties hereby agree that the Liens and security interests granted
to the Collateral Agent under the Security Documents, and the Guarantees
provided under the Guarantee Agreement and the Parent Guarantee Agreement, and
the other rights, remedies, powers and privileges under the Support Documents
shall be treated, as among the Secured Parties, as having equal priority and
shall at all times be shared by the Secured Parties as provided herein.

          SECTION 9.02.  Turnover of Collateral and Certain Payments.  If any
                         --------------------------------------------
Secured Party (i) acquires custody, control or possession of any Collateral or
proceeds therefrom or (ii) receives any payment pursuant to enforcement of the
Guarantee Agreement or the Parent Guarantee Agreement, in each case other than
pursuant to the terms of this Agreement, then such Secured Party shall promptly
cause such Collateral, proceeds or payments to be delivered to or put in the
custody, possession or control of the Collateral Agent for disposition or
distribution in accordance with the provisions of Article V.  Until such time as
the provisions of the immediately preceding sentence have been complied with,
such Secured Party shall be deemed to hold such Collateral, proceeds or payments
in trust for the parties entitled thereto hereunder.  Notwithstanding the
foregoing, but subject to the requirements of Sections 9.07 and 9.08, no Secured
Party shall be required to deliver to or put in the custody, possession or
control
<PAGE>

of the Collateral Agent or to hold in trust as specified in the preceding
sentence any amount of any Obligation paid or prepaid by the Borrower to it (and
not obtained by it through any sale of or other realization upon any Collateral
or by enforcement of its rights under the Guarantee Agreement or the Parent
Guarantee Agreement as provided herein and in the Support Documents) in
accordance with the terms of the applicable Secured Instrument.

          SECTION 9.03.  Release of Collateral and Guarantees.  (a)  In
                         -------------------------------------
connection with any sale, transfer or disposition of any Collateral to any
Person other than the Borrower or any Subsidiary Loan Party that does not
violate any Secured Instrument, the Secured Parties agree that any Liens on such
Collateral created pursuant to the Security Documents will be released upon the
delivery of evidence satisfactory to the Collateral Agent that such sale,
transfer or disposition (and the release of such Liens and, if applicable, any
guarantee of the Obligations) is in compliance with the requirements of each
Secured Instrument (including a certificate from a Financial Officer to such
effect).  In the event any such sale, transfer or disposition to a Person other
than the Parent or any subsidiary thereof (including the Borrower or any
Subsidiary Loan Party) shall be of 100% of the Equity Interests of a Subsidiary
Loan Party, the Secured Parties hereby authorize the Collateral Agent upon the
delivery of such evidence to release such Subsidiary and its assets from its
obligations under and the Liens created by the Support Documents and to execute
amendments, releases and other documents in form and substance satisfactory to
the Collateral Agent confirming such release.

          (b)  Collateral may be released in connection with the exercise of any
rights, powers or remedies by the Collateral Agent pursuant to and in accordance
with Section 4.02 and such release shall not require any approval under this
Section.
<PAGE>

          (c)  The Secured Parties hereby authorize the Collateral Agent to
execute releases and other documents in form and substance satisfactory to the
Collateral Agent in respect of any release of Collateral permitted under this
Section.

          SECTION 9.04.  Additional Collateral.  Each of the Secured Parties
                         ----------------------
hereby covenants and agrees that it (a) will not accept any Guarantee of any of
the Obligations by any Loan Party or an Affiliate thereof or any Person
providing such Guarantee on behalf of a Loan Party or an Affiliate thereof
unless such Person's Guarantee is provided pursuant to the Guarantee Agreement
or the Parent Guarantee Agreement or otherwise Guarantees the payment of all the
Obligations on a pari passu basis and (b) will not take any security interest in
                 ---- -----
or Lien on or assignment of any assets to secure any of the Obligations unless
such security interest or Lien or assignment is granted to the Collateral Agent
to secure the payment of all the Obligations on a pari passu basis pursuant to
                                                  ---- -----
an Additional Security Document; provided that the foregoing shall not apply to
                                 --------
any insurance or other credit support acquired by a Secured Party at its own
expense from a Person (other than any Loan Party or an Affiliate thereof or a
Person acting on behalf of a Loan Party or an Affiliate thereof) with respect to
the Obligations.

          SECTION 9.05.  Purchase of Collateral.  Any Secured Party may purchase
                         -----------------------
Collateral at any public sale of such Collateral pursuant to any of the Security
Documents and to the extent, but only to the extent, approved by the Required
Secured Parties (determined for this purpose without giving effect to the
Obligations owed to the Secured Party that is making such purchase, unless it is
the only Holder at the time) may make payment on account thereof by using any
Obligation then due and payable to such Secured Party from the Person which
granted a security interest in such Collateral as a credit against the purchase
price.

          SECTION 9.06.  Further Assurances, etc.  Each party hereto shall
                         ------------------------
execute and deliver such other documents and instruments, in form and substance
reasonably satisfactory to the other parties hereto, and shall take such other
action, in each case as any other party hereto may reasonably have requested (at
the cost and expense of the Borrower which agrees to pay such costs and
expenses),
<PAGE>

to effectuate and carry out the provisions of this Agreement and the other
Support Documents, including by recording or filing in such places as the
requesting party may deem desirable, this Agreement or such other documents or
instruments.

          SECTION 9.07.  Restrictions on Prepayments and Purchases of
                         --------------------------------------------
Indebtedness.  If on any date the Borrower:
-------------

          (a)  shall prepay or purchase any Indebtedness outstanding under any
Secured Instrument; and

          (b)  shall not within three Business Days thereafter prepay or
purchase the Indebtedness outstanding under all Secured Instruments ratably in
accordance with the respective aggregate principal amount then outstanding
thereunder;

any Secured Party that shall have had its Indebtedness so prepaid or purchased
in an amount in excess of that which it would have received if the Borrower had
made prepayments or purchases ratably in respect of all Secured Parties will, on
behalf of the Borrower, pay any excess amount received by it ratably to the
other Secured Parties entitled thereto in order to prepay or purchase on behalf
of the Borrower the Indebtedness of such other Secured Parties (and any such
excess so paid by any Secured Party shall be deemed not to have been paid by the
Borrower to such Secured Party); provided that the foregoing shall not apply to
                                 --------
any refinancing of Indebtedness under any Secured Instrument that does not
require ratable prepayment of Loans, Nortel Loans or Ericsson Loans under
Section 2.09 of the Credit Agreement, the Nortel Credit Agreement or the
Ericsson Credit Agreement, respectively (as each such agreement is in effect on
the date hereof).  The Borrower irrevocably authorizes and directs each Secured
Party to take the actions on its behalf specified in this Section 9.07.

          SECTION 9.08.  Payment of Amounts Owing under Secured Instruments.  If
                         ---------------------------------------------------
on any date:

          (a)  any amount shall be due and owing under more than one Secured
Instrument;

          (b)  the Borrower shall not pay all such amounts as are then due and
owing; and
<PAGE>

          (c)  the Borrower shall not pay such amounts ratably, in accordance
with the respective amounts then due and owing thereunder;

any Secured Party that shall have been paid an amount in excess of the payment
that it would have received if the Borrower had paid amounts owing by it ratably
will, on behalf of the Borrower, pay such excess ratably to the other Secured
Parties entitled thereto (and any such excess so paid by any Secured Party shall
be deemed not to have been paid by the Borrower to such Secured Party); provided
                                                                        --------
that, if a Notice of Enforcement is in effect as of such date, then, for all
purposes of this Section 9.08, all outstanding Obligations shall be deemed due
and owing whether or not they are actually due and owing (e.g., whether or not
                                                          ----
the maturity of such Obligations has been accelerated or otherwise matured).
The Borrower irrevocably authorizes and directs each Secured Party to take the
actions on its behalf specified in this Section 9.08.

          SECTION 9.09.  Certain Amendments to Credit Agreement.
                         --------------------------------------
Notwithstanding any provision to the contrary in the Credit Agreement, no
amendment or waiver of any encumbrance or restriction in the Credit Agreement on
the ability of the Borrower, Holdings or any Subsidiary Loan Party to:

          (i)    pay dividends or make any other distributions permitted by
     applicable law on any Equity Interest of the Borrower, Holdings or any
     Subsidiary Loan Party;

          (ii)   pay any Indebtedness owed to the Parent or any subsidiary of
     the Parent;

          (iii)  make loans or advances to the Parent or any subsidiary of the
     Parent; or

          (iv)   transfer any of its property or assets to the Parent or any
     subsidiary of the Parent,

shall be effective unless the Required Committed Credit Facility Parties under
each Credit Facility shall have consented to such amendment or waiver.

          SECTION 9.10.  Payments under ChaseTel Subordination Agreement.  If
                         ------------------------------------------------
any Lender or the Administrative Agent receives any payments under the ChaseTel
Subordination Agreement, then such Lender or the
<PAGE>

Administrative Agent shall share the benefits of such payments ratably with the
other Secured Parties by either (a) payment to the Collateral Agent for
distribution under Section 5.02, if permitted, or (b) applying such payment to
pay Credit Facility Obligations and then purchasing participations in the
Principal Obligations then outstanding of the other Secured Parties to the
extent necessary so that the benefit of all such payments shall be shared by all
Secured Parties ratably in accordance with the aggregate amount of Principal
Obligations then outstanding.

                                   ARTICLE X

                             Benefit of Agreement
                             --------------------

          This Agreement is being executed and delivered by the Persons whose
names appear on the signature pages below and by such other Persons as become
parties hereto by the execution and delivery of a Permitted Additional
Obligations Designation pursuant to Section 2.01 and by accepting and assuming
the rights, benefits, duties and obligations of a Secured Party hereunder as
provided in such Section and such Permitted Additional Obligations Designation,
but shall benefit, in addition to such Persons, each other Secured Party
represented by a Representative (including the Lenders, the Nortel Lenders and
the Ericsson Lenders).

                                  ARTICLE XI

                                 Miscellaneous
                                 -------------

          SECTION 11.01.  Notices.  Except in the case of notices and other
                          --------
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

          (a)  if to the Borrower, to it at 10307 Pacific Center Court, San
Diego, California 92121, Attention of President (Telecopy No. (619) 882-6010);
<PAGE>

          (b)  if to the Collateral Agent, to it at Two Avenue DeLefayette, 6th
Floor, Boston, MA 02111-1724, Attention of Patrick Thibedeau (Telecopy No. 617-
662-1460);

          (c)  if to the Administrative Agent, to it at 600 Mountain Avenue,
Murray Hill, New Jersey 07974, Attention of Assistant Treasurer-Project Finance
(Telecopy No. (908) 582-3101);

          (d)  if to the Nortel Agent, to it at Nortel Networks Inc., Mail Stop
991 15 A40, 2221 Lakeside Blvd., Richardson, Texas 75082-4399, Attention of
Robert D. Beiter, Director, Customer Finance North America (Telecopy No. (972)
684-3679);

          (e)  if to the Ericsson Agent, to it at Telefonvagen 30, Stockholm 126
25, Sweden, Attention:  President (Telecopy No. +468-719-0500), with a copy to
Ericsson Inc. at 740 East Campbell Road, Richardson, Texas 75081 Attention:
Director of Customer Finance (Telecopy No. 972-583-1858); and

          (f)  if to any other Secured Party, to it at its address (or telecopy
number) set forth in the applicable Permitted Additional Obligation Designation.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

          SECTION 11.02.  Waivers; Amendments.  (a)  No failure or delay by the
                          --------------------
Collateral Agent in exercising any right or power hereunder or under any other
Support Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The
rights and remedies of the Collateral Agent hereunder and under the other
Support Documents are cumulative and are not exclusive of any rights or remedies
that it would otherwise have.  No waiver of any provision of any Support
Document or consent to any departure by any Loan Party therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) of this
Section, and
<PAGE>

then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given.

          (b)  Neither this Agreement nor any other Support Document nor any
provision hereof or thereof may be waived, amended or modified except, in the
case of this Agreement, pursuant to an agreement or agreements in writing
entered into by the Borrower and the Representatives and/or Unrepresented
Holders representing the Required Committed Secured Parties (or, at any time
when a Notice of Enforcement is in effect, the Required Secured Parties) and the
Required Committed Credit Facility Parties in respect of each Credit Facility
or, in the case of any other Support Document, pursuant to an agreement or
agreements in writing entered into by the Collateral Agent and the Loan Party or
Loan Parties that are parties thereto with the consent of the Required Committed
Secured Parties (or, at any time when a Notice of Enforcement is in effect, the
Required Secured Parties) and the Required Committed Credit Facility Parties in
respect of each Credit Facility; provided that no such agreement shall (i)
                                 --------
adversely affect any of the Collateral Agent's rights, immunities or rights to
indemnification hereunder or under any Support Document or expand its duties
hereunder or under any Support Document, without the prior written consent of
the Collateral Agent, (ii) modify any provision hereof which is intended to
provide for the equal and ratable security of all Obligations without the prior
written consent of all Secured Parties, (iii) release all or any substantial
part of the Collateral from the Liens of the Security Documents (except as
expressly provided in Section 9.03), without the prior written consent of each
Secured Party, (iv) release Holdings, any Subsidiary Loan Party or the Parent
from its Guarantee under the Guarantee Agreement or the Parent Guarantee
Agreement (except as expressly provided in Section 9.03) or limit or condition
its obligations thereunder, without the prior written consent of each Secured
Party, or (v) change the definitions of "Credit Facility Obligations", "Ericsson
Facility Obligations", "Nortel Facility Obligations", "Obligations", "Permitted
Additional Obligations", "Required Committed Secured Parties", "Required Credit
Facility Parties", "Required Non-Vendor Secured Parties", "Required Secured
Parties" or this Section, Section 4.02, Section 4.03 or Section 9.03 without the
prior written consent of each Secured Party.  Notwithstanding the foregoing, the
Collateral Agent and the Borrower and, in the case of the Guarantee Agreement or
the Parent Guarantee Agreement, any guarantor party to the
<PAGE>

Guarantee Agreement or the Parent Guarantee Agreement, may enter into one or
more agreements supplemental to the applicable Support Documents, in form and
substance satisfactory to the Collateral Agent, to add any guarantor of the
Obligations or any grantor to any Security Document.

          SECTION 11.03.  Counterparts.  This Agreement may be executed in
                          -------------
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

          SECTION 11.04.  Severability.  Any provision of this Agreement held to
                          -------------
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 11.05.  Governing Law; Jurisdiction; Consent to Service of
                          --------------------------------------------------
Process.  (a)  This Agreement shall be construed in accordance with and governed
--------
by the law of the State of New York.

          (b)  The Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to any
Support Document, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court.  Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.  Nothing in this
Agreement or any other Support Document shall affect any right that the
<PAGE>

Collateral Agent or any Secured Party may otherwise have to bring any action or
proceeding relating to this Agreement or any other Support Document against the
Borrower or their properties in the courts of any jurisdiction.

          (c)  The Borrower hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any other Support
Document in any court referred to in paragraph (b) of this Section.  Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

          (d)  Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 11.01.  Nothing in this
Agreement or any other Support Document will affect the right of any party to
this Agreement to serve process in any other manner permitted by law.

          SECTION 11.06.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY
                          ---------------------
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER SUPPORT DOCUMENT (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 11.07.  Headings.  Article and Section headings used herein
                          ---------
are for convenience of reference only, are not part of this Agreement and shall
not affect the construction of, or be taken into consideration in interpreting,
this Agreement.

          SECTION 11.08.  Successors and Assigns.  (a)  Whenever in this
                          -----------------------
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the
<PAGE>

successors and assigns of such party (including, in the case of any Secured
Party, each transferee or assignee of Obligations held by it). Without limiting
the generality of the foregoing, this Agreement shall be binding upon each
transferee or assignee of any Secured Party.

          (b)  The Borrower shall not assign or delegate any of its rights or
duties hereunder or any of its interest herein without the prior written consent
of each Secured Party, and any purported assignment or delegation in
contravention of this paragraph shall be void.

          SECTION 11.09.  Termination.  This Agreement shall automatically
                          ------------
terminate when (i) the Liens and security interests granted under the Security
Documents have terminated and (ii) the Collateral has been released and the
Obligations have been indefeasibly paid and performed in full and all Secured
Instrument Commitments shall have terminated; provided that the provisions of
                                              --------
Section 7.02 shall not be affected by any such termination.

          SECTION 11.10.  Complete Agreement.  (a)  This Agreement constitutes
                          -------------------
the entire agreement between the parties hereto with respect to the subject
matter hereof and supersedes all prior representations, negotiations, writings,
memoranda and agreements.

          (b)  Upon the execution and delivery of counterparts of this Agreement
by the Borrower, the Collateral Agent and Representatives and Unrepresented
Holders representing each Secured Party as of the date hereof, the Existing
Agreement shall be superseded and amended and restated in the form of this
Agreement.

          (c)  Lucent Technologies Inc., Societe Generale, Nortel Networks Inc.
and Ericsson Credit AB are the only Lenders, Nortel Lenders and Ericsson Lenders
as of the date hereof and are executing this Agreement in their individual
capacities in order to acknowledge their consent to the amendment and
restatement of the Existing Agreement as provided herein.
<PAGE>

          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.

                                       CRICKET COMMUNICATIONS, INC.
                                       (formerly known as Cricket
                                       Wireless Communications, Inc.),

                                         by
                                            ____________________________________
                                            Name:
                                            Title:

                                       STATE STREET BANK AND TRUST
                                       COMPANY, as Collateral Agent,

                                         by
                                            ____________________________________
                                            Name:
                                            Title:

                                       LUCENT TECHNOLOGIES INC.,
                                       individually and as
                                       Administrative Agent under the
                                       Credit Agreement,

                                         by
                                            ____________________________________
                                            Name:
                                            Title:

                                       NORTEL NETWORKS INC.,
                                       individually and as
                                       Administrative Agent under the
                                       Nortel Credit Agreement,

                                         by
<PAGE>

                                            ____________________________________
                                            Name:
                                            Title:

                                       SOCIETE GENERALE,

                                         by
                                            ____________________________________
                                            Name:
                                            Title:

                                       ERICSSON CREDIT AB,
                                       individually and as
                                       Administrative Agent under the
                                       Ericsson Credit Agreement,

                                         by
                                            ____________________________________
                                            Name:
                                            Title:

                                         by
                                            ____________________________________
                                            Name:
                                            Title:
<PAGE>

          The undersigned are parties to the other Support Documents and
acknowledge and agree to the changes thereto set forth herein and agree to be
bound by this Agreement.

                                       LEAP WIRELESS INTERNATIONAL,

                                         by
                                            ____________________________________
                                            Name:
                                            Title:

                                       EACH SUBSIDIARY OF THE BORROWER
                                       PARTY TO THE OTHER SUPPORT DOCUMENTS,

                                         by
                                            ____________________________________
                                            Name:
                                            Title:

                                       EACH LICENSE SUBSIDIARY PARTY
                                       TO THE OTHER SUPPORT DOCUMENTS,

                                         by
                                            ____________________________________
                                            Name:
                                            Title:
<PAGE>

                                                                       EXHIBIT A

                                    FORM OF
                 PERMITTED ADDITIONAL OBLIGATIONS DESIGNATION

                                                            [Date]
To:  [        ], as Collateral Agent

Re:  Amended and Restated Collateral Agency and Intercreditor Agreement, dated
     as of October 20, 2000, among CRICKET COMMUNICATIONS, INC. (formerly known
     as Cricket Wireless Communications, Inc.), STATE STREET BANK AND TRUST
     COMPANY, as Collateral Agent, and the Representatives and Unrepresented
     Holders referred to therein (the "Collateral Agency and Intercreditor
     Agreement").

          Reference is hereby made to the Collateral Agency and Intercreditor
Agreement.  Capitalized terms which are defined in the Collateral Agency and
Intercreditor Agreement are used herein as therein defined.

          In accordance with Section 2.01 of the Collateral Agency and
Intercreditor Agreement, the following Indebtedness for borrowed money of the
Borrower are hereby added as Permitted Additional Obligations thereunder.

          [DESCRIBE INDEBTEDNESS]

Attached hereto is a true and complete copy of each agreement (together with all
schedules, exhibits, annexes, appendices and other attachments thereto),
constituting the applicable Secured Instruments relating to such Permitted
Additional Obligations.

          The undersigned is [the Secured Party] [the Representative of the
Secured Parties] in respect of such Permitted Additional Obligations and hereby
acknowledges receipt of a copy of the Collateral Agency and Intercreditor
Agreement.  [The undersigned agrees that, upon execution and delivery hereof, it
shall be a party to the Collateral Agency and Intercreditor Agent and shall have
all the rights and obligations of a Secured Party
<PAGE>

under the Collateral Agency and Intercreditor Agreement in accordance with the
terms thereof.] [The undersigned represents that it has been appointed as the
Representative under the Secured Instruments referred to above on behalf of the
Holders thereunder, with the power to become a party to the Collateral Agency
and Intercreditor Agreement on behalf of such Holders, and by the undersigned's
execution and delivery hereof, each such Holder shall become a party to the
Collateral Agency and Intercreditor Agreement and shall have all the rights and
obligations of a Secured Party under the Collateral Agency and Intercreditor
Agreement in accordance with the terms thereof].

          All communications and notices under the Collateral Agency and
Intercreditor Agreement to the [Secured Party] [Representative and the Holders
under the Secured Instruments referred to above] shall be given to such Person
at the address set forth on Schedule I hereto.

[         ]

by
Name:
Title:

[Secured Party] [Representative]

by
Name:
Title:

CRICKET COMMUNICATIONS, INC.
(formerly known as Cricket Wireless
Communications, Inc.),

by
Name:
Title:
<PAGE>

                                                                      SCHEDULE I

                                ADDRESS[ES] OF
                        [SECURED PARTY] [REPRESENTATIVE
                             AND SECURED PARTIES]
<PAGE>

                                                                       EXHIBIT B

               FIRST AMENDMENT dated as of August 28, 2000, to the Indemnity,
          Subrogation and Contribution Agreement dated as of November 24, 1999
          (as supplemented and otherwise amended, the "Indemnity Agreement"),
          among CRICKET COMMUNICATIONS, INC. (the "Borrower"), the Subsidiaries
          and License Subsidiaries party thereto (each Subsidiary and each
          License Subsidiary individually, a "Guarantor" and, collectively, the
          "Guarantors"), and STATE STREET BANK AND TRUST COMPANY, as Collateral
          Agent.  Capitalized terms used herein and not defined herein shall
          have the meanings assigned to such terms in the Indemnity Agreement.

     WHEREAS the Borrower and the Guarantors have requested that certain
provisions of the Indemnity Agreement be amended in certain respects, and the
Collateral Agent is willing to amend such provisions on the terms and subject to
the conditions set forth herein.

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

     SECTION 1.  Amendment.  The first sentence of Section 3 of the Indemnity
                 ----------
Agreement is hereby amended and restated to read in its entirety as follows:

          "Notwithstanding any provision of this Agreement to the contrary, all
     rights of the Guarantors under Sections 1 and 2 and all other rights of
     indemnity, contribution or subrogation under applicable law or otherwise
     shall be fully subordinated to the indefeasible payment in full in cash of
     all Obligations which are then due and payable whether at maturity, by
     acceleration or otherwise, and none of such rights shall be exercised, and
     no payments with respect to such rights shall be permitted or shall be paid
     by any Contributing Guarantor, at any time when any Obligations which are
     then due and payable, whether at maturity, by acceleration or otherwise,
     remain unpaid."

     SECTION 2.  Representations and Warranties.  The Borrower and each of the
                 -------------------------------
Guarantors hereby jointly and severally represent and warrant to the Collateral
Agent that this Amendment has been duly authorized, executed and delivered by
the Borrower and each of the Guarantors and each of this Amendment and the
Indemnity Agreement as amended hereby constitutes a legal, valid and binding
obligation of the Borrower and each of the Guarantors, enforceable in accordance
with its terms.

     SECTION 3.  Applicable Law.  THIS AMENDMENT SHALL BE CONSTRUED IN
                 ---------------
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
<PAGE>

     SECTION 4.  Indemnity Agreement.  Except as expressly amended hereby, the
                 --------------------
Indemnity Agreement shall continue in full force and effect in accordance with
the provisions thereof.  Any reference in the Indemnity Agreement, or in any
documents or instruments required thereunder or annexes or schedules thereto,
referring to the Indemnity Agreement shall be deemed to refer to the Indemnity
Agreement as amended by this Amendment.

     SECTION 5.  Expenses.  The Borrower agrees to reimburse the Collateral
                 ---------
Agent for its out-of-pocket expenses in connection with this Amendment.

     SECTION 6.  Counterparts.  This Amendment may be executed in two or more
                 -------------
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute but one contract.  Delivery of an executed
counterpart of a signature page by facsimile transmission shall be effective as
delivery of a manually executed counterpart of this Amendment.
<PAGE>

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

                                  BORROWER:
                                  --------
                                  CRICKET COMMUNICATIONS, INC.

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                  GUARANTORS:
                                  ----------
                                  CHASE TELECOMMUNICATIONS, INC.
                                  CHASETEL LICENSEE CORP.
                                  CHASETEL REAL ESTATE HOLDING COMPANY, INC.
                                  CRICKET ARIZONA PROPERTY COMPANY
                                  CRICKET ARKANSAS PROPERTY COMPANY
                                  CRICKET COLORADO PROPERTY COMPANY
                                  CRICKET GEORGIA PROPERTY COMPANY
                                  CRICKET HOLDINGS DAYTON, INC.
                                  CRICKET KANSAS PROPERTY COMPANY
                                  CRICKET LICENSEE (NORTH CAROLINA), INC.,
                                       formerly known as Cricket Holdings, Inc.
                                  CRICKET LICENSEE (REAUCTION), INC.
                                  CRICKET NEW MEXICO PROPERTY COMPANY
                                  CRICKET NORTH CAROLINA PROPERTY COMPANY
                                  CRICKET OKLAHOMA PROPERTY COMPANY
                                  CRICKET PENNSYLVANIA PROPERTY COMPANY
                                  CRICKET UTAH PROPERTY COMPANY
                                  CRICKET WASHINGTON PROPERTY COMPANY
                                  CRICKET LICENSEE (DENVER), INC.
                                  CRICKET LICENSEE (PITTSBURGH), INC.
                                  CRICKET LICENSEE (LAKELAND) INC.

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________
<PAGE>

                                  COLLATERAL AGENT:
                                  ----------------
                                  STATE STREET BANK AND TRUST COMPANY, as
                                  Collateral Agent

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________
<PAGE>

                                                                       EXHIBIT C

                               PARENT AGREEMENT
                               ----------------

     PARENT AGREEMENT dated as of October __, 2000 between LEAP WIRELESS
INTERNATIONAL, INC., a Delaware corporation (the "Parent"), and ERICSSON CREDIT
                                                  ------
AB, as administrative agent (in such capacity, the "Administrative Agent") for
                                                    --------------------
the Lenders (as defined in the Credit Agreement referred to below).

          Reference is made to the Credit Agreement dated as of October 20, 2000
(as amended, supplemented or otherwise modified from time to time, the "Credit
                                                                        ------
Agreement") among Cricket Communications, Inc. (the "Borrower"), Cricket
---------                                            --------
Communications Holdings, Inc., the lenders from time to time party thereto (the
"Lenders") and the Administrative Agent.  Capitalized terms used herein and not
 -------
defined herein shall have meanings assigned to such terms in the Credit
Agreement.

          The Lenders have agreed to make Loans to the Borrower pursuant to, and
upon the terms and subject to the conditions specified in, the Credit Agreement.
The Borrower is a subsidiary of the Parent.  The obligations of the Lenders to
make Loans are conditioned upon, among other things, the execution and delivery
by the Parent of an agreement in the form hereof to set forth certain covenants,
agreements and obligations of the Parent.

          Accordingly, the Parent and the Administrative Agent, on behalf of
itself and each Lender (and each of their respective successors or assigns),
hereby agree as follows:
<PAGE>

     SECTION 1.  Covenants.  Until the Commitments have expired or terminated
                 ---------
and the principal of and interest on each Loan and all fees payable under the
Credit Agreement shall have been paid in full, the Parent hereby covenants and
agrees with the Administrative Agent that:

          (a)  The Parent will not, nor will it permit any of its direct or
indirect subsidiaries (other than the Borrower and the Subsidiary Loan Parties)
to, engage to any material extent in the wireless telecommunications and data
networking business or any business that competes with the business conducted by
the Borrower and the Subsidiary Loan Parties, in each case, in the United
States.

          (b)  The Parent and its subsidiaries (other than the Borrower and the
Subsidiary Loan Parties) will cause all assets owned by the Parent and its
subsidiaries (i) that are used predominantly in the business of the Borrower and
the Subsidiary Loan Parties or (ii) for which the Parent or its subsidiaries
have (A) ordered equipment for deployment, or (B) commenced site acquisition, in
each case, for the market in which such assets are to be located, to be owned by
the Borrower and the Subsidiary Loan Parties.

     SECTION 2.  Waivers; Amendment.
                 ------------------

          (a)  No failure or delay of the Administrative Agent in exercising any
power or right hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Administrative Agent hereunder and of the other Secured
Parties under the other Loan Documents are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any
provisions of this Agreement or consent to any departure by the Parent therefrom
shall in any event be effective unless the same shall be permitted by paragraph
(b) below, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice or demand on
the Parent in any case shall entitle the Parent to any other or further notice
or demand in similar or other circumstances.

          (b)  Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to a written agreement entered into between
the Administrative Agent and the Parent, subject to any consent required in
accordance with Section 9.02 of the Credit Agreement.

     SECTION 3.  Notices.  All communications and notices hereunder shall be in
                 -------
writing and given as provided in Section 9.01 of the Credit Agreement; provided
                                                                       --------
that any communication or notice hereunder to the Parent shall be given to it at
10307 Pacific Center Court, San Diego, California 92121, attention of James
Hoffmann, Secretary (Telecopy No. 858-882-6010).

     SECTION 4.  Further Assurances.  The Parent agrees to do such further acts
                 ------------------
and things, and to execute and deliver such additional conveyances, assignments,
agreements and instruments, as the Administrative Agent may at any time
reasonably request in connection with the administration and enforcement of this
Agreement or in order better to assure and confirm unto the Administrative Agent
its rights and remedies hereunder.
<PAGE>

     SECTION 5.  Binding Effect; Several Agreement; Assignments.  Whenever in
                 ----------------------------------------------
this Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the successors and assigns of such party; and all covenants,
promises and agreements by or on behalf of the Parent that are contained in this
Agreement shall bind and inure to the benefit of its successors and assigns.
This Agreement shall become effective as to the Parent when a counterpart hereof
executed on behalf of the Parent shall have been delivered to the Administrative
Agent and a counterpart hereof shall have been executed on behalf of the
Administrative Agent, and thereafter shall be binding upon the Parent and the
Administrative Agent and their respective successors and assigns, and shall
inure to the benefit of the Parent, the Administrative Agent and the other
Secured Parties, and their respective successors and assigns.

     SECTION 6.  Survival of Agreement; Severability.
                 -----------------------------------

          (a)  All covenants, agreements, representations and warranties made by
the Parent herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be considered to have been relied upon by the Administrative
Agent and the other Secured Parties and shall survive the making by the Lenders
of the Loans, regardless of any investigation made by the Secured Parties or on
their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any other fee or amount
payable under this Agreement or any other Loan Document is outstanding and
unpaid.

          (b)  In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby (it being understood
that the invalidity of a particular provision in a particular jurisdiction shall
not in and of itself affect the validity of such provision in any other
jurisdiction). The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

     SECTION 7.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
                 -------------
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 8.  Counterparts.  This Agreement may be executed in two or more
                 ------------
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute a single contract, and shall become effective
as provided in Section 5.  Delivery of an executed counterpart of a signature
page to this Agreement by facsimile transmission shall be as effective as
delivery of a manually executed counterpart of this Agreement.

     SECTION 9.  Rules of Interpretation.  The rules of interpretation
                 -----------------------
specified in Section 1.03 of the Credit Agreement shall be applicable to this
Agreement. Section headings used herein are for convenience of reference only,
are not part of this Agreement and are not to affect the construction of, or to
be taken into consideration in interpreting this Agreement.
<PAGE>

     SECTION 10.  Jurisdiction; Consent to Service of Process.
                  -------------------------------------------

          (a)  The Parent hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to any
Loan Document, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the
Administrative Agent or any other Secured Party (as defined in the Collateral
Agency Agreement) may otherwise have to bring any action or proceeding relating
to this Agreement or any other Loan Document against the Parent or its
properties in the courts of any jurisdiction.

          (b)  The Parent hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or the other Loan Documents in any
New York State or Federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

          (c)  Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 3. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

     SECTION 11.    WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO
                    --------------------
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       LEAP WIRELESS  INTERNATIONAL, INC.
<PAGE>

                                       By: _____________________________________
                                       Name:____________________________________
                                       Title:___________________________________

                                       ERICSSON CREDIT AB, as
                                       Administrative Agent

                                       By: _____________________________________
                                       Name:____________________________________
                                       Title:___________________________________
<PAGE>

                                                                       EXHIBIT D

               GUARANTEE AGREEMENT (this "Agreement") dated as of August 28,
                                          ---------
     2000, from LEAP WIRELESS INTERNATIONAL, INC., a Delaware corporation (the
     "Guarantor") in favor of STATE STREET BANK AND TRUST COMPANY, as collateral
     agent (in such capacity, and including its successors and assigns in such
     capacity, the "Collateral Agent"), for the Secured Parties.

          Reference is made to the Amended and Restated Collateral Agency and
Intercreditor Agreement dated as of October 20, 2000 (as amended, supplemented,
restated or otherwise modified from time to time, the "Collateral Agency and
Intercreditor Agreement") among Cricket Communications, Inc., a Delaware
corporation (the "Borrower"), the Representatives and Unrepresented Holders
referred to therein and the Collateral Agent.  Capitalized terms used herein and
not defined herein shall have the meanings assigned to such terms in the
Collateral Agency and Intercreditor Agreement.  The Guarantor acknowledges
receipt of a true and correct copy of the Collateral Agency and Intercreditor
Agreement.

          The lenders (the "Nortel Lenders") under the Credit Agreement dated as
of August 28, 2000, among the Borrower, Holdings, the Nortel Lenders and Nortel
Networks Inc., as administrative agent (the "Nortel Credit Agreement") have
agreed to make loans to the Borrower pursuant to, and upon the terms and subject
to the conditions specified in, the Nortel Credit Agreement.  The Guarantor is
the indirect owner of 100% of the capital stock of the Borrower and acknowledges
that it will derive substantial benefit from the making of loans to the Borrower
under the Nortel Credit Agreement.  The obligations of the Nortel Lenders to
make loans to the Borrower are conditioned on, among other things, the execution
and delivery by the Guarantor of a Guarantee Agreement in the form hereof.  In
addition, Section 9.04 of the Collateral Agency and Intercreditor Agreement
provides, in part, that no Secured Party (including the Nortel Lenders) may
accept any Guarantee of any of the Obligations unless such Guarantee guarantees
the payment of all of the Obligations on a pari passu basis.  In order to induce
the Nortel Lenders to make loans under the Nortel Credit Agreement, the
Guarantor is willing to execute this Agreement.

          Accordingly, the Guarantor and the Collateral Agent, on behalf of
itself and each Secured Party (and each of their respective successors or
assigns), hereby agree as follows:
<PAGE>

     SECTION 1.  Guarantee.  (a) As used herein, a "Guaranty Event" shall occur
                 ---------
at any time that the following three conditions shall have occurred or shall
have been satisfied:

               (i) The Borrower, Holdings or any Subsidiary Loan Party shall:

                    (A)  pay dividends or make any other distributions on or
               with respect to any Equity Interests of the Borrower, Holdings or
               such Subsidiary Loan Party owned by the Guarantor or any of the
               Guarantor's subsidiaries;

                    (B)  pay any Indebtedness owed to the Guarantor or any of
               the Guarantor's subsidiaries;

                    (C)  make loans or advances to the Guarantor or any of the
               Guarantor's subsidiaries; or

                    (D)  transfer any of its property or assets to the Guarantor
               or any of the Guarantor's subsidiaries,

AND

               (ii)   the action described in clause (i) above is prohibited by
          the terms of the Lucent Credit Agreement as it exists on the date of
          this Agreement without giving effect to any amendment, waiver or other
          change thereto occurring after the date hereof to which the Required
          Committed Credit Facility Parties under each Credit Facility have not
          consented;

     AND

               (iii)  the action described in (i) above is not prohibited by
          Article VI of the Nortel Credit Agreement giving effect to the
          provisions of Section 9.15 of the Nortel Credit Agreement.

As used herein, the "Lucent Credit Agreement" means the Amended and Restated
Credit Agreement dated as of October 20, 2000, among Holdings, the Borrower, the
lenders parties thereto and Lucent Technologies Inc., as administrative agent
for such lenders.

     (b)  Effective upon the occurrence of a Guaranty Event, the Guarantor
unconditionally guarantees, jointly with any other guarantors and severally, as
a primary obligor and not merely as a surety, the due and punctual payment of
the Obligations, when and as due, whether at maturity, by acceleration, upon one
or more dates set for prepayment or otherwise; provided, however, that if the
Guaranty Event is of the type described in subclauses (B) through (D) of clause
(i) above (a "Non-Distribution Guaranty Event"), the amount guaranteed by the
Guarantor pursuant to this Agreement shall be limited to the amount of the
Indebtedness paid, loans or advances made, or property or assets transferred, as
the case may be, that constitute such Guaranty Event; provided further, however,
if, and only if, the Guarantor does not cure such Non-
<PAGE>

Distribution Guaranty Event, or cause such Non-Distribution Guaranty Event to be
cured, within 30 days after the earlier of:

               (i)  the date on which the Borrower gives notice under the Lucent
Credit Agreement that a Default has occurred as a result of the occurrence of a
Non-Distribution Guaranty Event; and

          (ii)   the date on which the Collateral Agent or any Holder notifies
     the Guarantor that a Non-Distribution Guaranty Event has occurred;

then the amount Guaranteed by the Guarantor pursuant to this Agreement shall not
be limited in amount as provided in the immediately preceding proviso but shall
be the full amount of the Obligations.

          (c)  A Non-Distribution Guaranty Event may be cured by:

               (i)    the return of the payment of Indebtedness, the repayment
     of the loan or advance, or the return of the transferred property or
     assets, as applicable;

               (ii)   the payment to the paying, advancing or transferring Loan
     Party of an amount equal to the Indebtedness paid, loans or advances made,
     or value of the property or assets transferred; or

               (iii)  the pledge of cash or cash equivalents in the amount
     described in clause (ii) above to the Collateral Agent as Collateral to
     secure the Obligations pursuant to an Additional Security Document
     reasonably satisfactory in form and substance to the Required Committed
     Credit Facility Parties under each Credit Facility.

     (d)  The Guarantor agrees that the Obligations may be extended or renewed,
in whole or in part, without notice to or further assent from it, and that it
will remain bound upon its guarantee notwithstanding any extension or renewal of
any Obligation.
<PAGE>

     SECTION 2.  Obligations Not Waived.  To the fullest extent permitted by
                 ----------------------
applicable law, the Guarantor waives presentment to, demand of payment from and
protest to the Borrower of any of the Obligations, and also waives notice of
acceptance of its guarantee and notice of protest for nonpayment.  To the
fullest extent permitted by applicable law, the obligations of the Guarantor
hereunder shall not be affected by (a) the failure of the Collateral Agent or
any other Secured Party to assert any claim or demand or to enforce or exercise
any right or remedy against the Borrower or any other guarantor under the
provisions of any Support Document or Secured Instrument or otherwise, (b) any
rescission, waiver, amendment or modification of, or any release from any of the
terms or provisions of, this Agreement, any other Support Document, any Secured
Instrument, any Guarantee or any other agreement, including with respect to any
other guarantor or (c) the failure to perfect any security interest in, or the
release of, any of the security held by or on behalf of the Collateral Agent or
any other Secured Party.

     SECTION 3.  Security. The Guarantor authorizes the Collateral Agent and
                 --------
each of the other Secured Parties, to (a) take and hold security for the payment
of the Obligations and exchange, enforce, waive and release any such security,
(b) apply such security and direct the order or manner of sale thereof as they
in their sole discretion may determine and (c) release or substitute any one or
more endorsers or other guarantors or other obligors.

     SECTION 4.  Guarantee of Payment.  The Guarantor further agrees that its
                 --------------------
guarantee hereunder constitutes a guarantee of payment when due and not of
collection, and waives any right to require that any resort be had by the
Collateral Agent or any other Secured Party to any of the security held for
payment of the Obligations or to any balance of any deposit account or credit on
the books of the Collateral Agent or any other Secured Party in favor of the
Borrower or any other Person.

     SECTION 5.  No Discharge or Diminishment of Guarantee.  The obligations of
                 -----------------------------------------
the Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than the indefeasible payment in
full of all the Obligations), including any claim of waiver, release, surrender,
alteration or compromise of any of the Obligations, and shall not be subject to
any defense or setoff, counterclaim, recoupment or termination whatsoever by
reason of the invalidity, illegality or unenforceability of the Obligations or
otherwise.  Without limiting the generality of the foregoing, the obligations of
the Guarantor hereunder shall not be discharged or impaired or otherwise
affected by the failure of the Collateral Agent or any other Secured Party to
assert any claim or demand or to enforce any right or remedy under any Support
Document, any Secured Instrument or any other agreement, by any waiver or
modification of any provision of any thereof, by any default, failure or delay,
wilful or otherwise, in the performance of the Obligations, or the failure to
perfect any security interest in, or the release of, any of the security held by
or on behalf of the Collateral Agent or any other Secured Party, or by any other
act or omission that may or might in any manner or to any extent vary the risk
of the Guarantor or that would otherwise operate as a discharge of the Guarantor
as a matter of law or equity (other than the indefeasible payment in full of all
the Obligations).
<PAGE>

     SECTION 6.  Defenses of Borrower Waived.  To the fullest extent permitted
                 ---------------------------
by applicable law, the Guarantor waives any defense based on or arising out of
any defense of the Borrower or the unenforceability of the Obligations or any
part thereof from any cause, or the cessation from any cause of the liability of
the Borrower, other than the final and indefeasible payment in full of all the
Obligations.  Subject to the terms of the Collateral Agency and Intercreditor
Agreement, the Collateral Agent and the other Secured Parties may, at their
election, foreclose on any security held by one or more of them by one or more
judicial or nonjudicial sales, accept an assignment of any such security in lieu
of foreclosure, compromise or adjust any part of the Obligations, make any other
accommodation with the Borrower or any other guarantor or exercise any other
right or remedy available to them against the Borrower or any other guarantor,
without affecting or impairing in any way the liability of the Guarantor
hereunder except to the extent the Obligations have been fully, finally and
indefeasibly paid. To the fullest extent permitted by applicable law, the
Guarantor waives any defense arising out of any such election even though such
election operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of the Guarantor
against the Borrower or any other guarantor, as the case may be, or any
security.

     SECTION 7.  Agreement to Pay; Subordination.  In furtherance of the
                 -------------------------------
foregoing and not in limitation of any other right or remedy that the Collateral
Agent or any other Secured Party has at law or in equity against the Guarantor
by virtue hereof, upon the failure of the Borrower or any other Loan Party to
pay any Obligation when and as the same shall become due after the occurrence of
a Guaranty Event (and subject to the proviso to Section 1 hereof limiting the
Guarantors obligation in certain circumstances), whether at maturity, by
acceleration, after notice of prepayment or otherwise, the Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Collateral Agent
the amount of such unpaid Obligations to be applied by the Collateral Agent in
the manner required by Article V of the Collateral Agency and Intercreditor
Agreement.  Upon payment by the Guarantor of any sums to the Collateral Agent,
all rights of the Guarantor against the Borrower arising as a result thereof by
way of right of subrogation, contribution, reimbursement, indemnity or otherwise
shall in all respects be subordinate and junior in right of payment to the prior
indefeasible payment in full of all the Obligations as provided in the
Subordination Agreement.

     SECTION 8.  Information. The Guarantor assumes all responsibility for being
                 -----------
and keeping itself informed of the Borrower's and each other Loan Party's
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Obligations and the nature, scope and extent of the
risks that such Guarantor assumes and incurs hereunder, and agrees that none of
the Collateral Agent or the other Secured Parties will have any duty to advise
the Guarantor of information known to it or any of them regarding such
circumstances or risks.

     SECTION 9.  Representations and Warranties.  The Guarantor represents and
                 ------------------------------
warrants as to itself that all representations and warranties relating to it
contained in the Lucent Credit Agreement and the Nortel Credit Agreement are
true and correct.
<PAGE>

     SECTION 10.  Termination.  The Guarantee made hereunder (a) shall terminate
                  -----------
when all the Obligations have been indefeasibly paid in full and all Secured
Instrument Commitments shall have been terminated and (b) shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Obligation is rescinded or must otherwise be restored by
any Secured Party or any guarantor upon the insolvency, bankruptcy or
reorganization of the Borrower, any guarantor or otherwise.  Subject to
reinstatement if and to the extent necessary to provide for payment pursuant to
the terms hereof of an amount previously paid that has been rescinded or
otherwise restored as provided in clause (b) of the preceding sentence, the
Guarantee made hereunder shall also terminate if and when all of the
restrictions contained in Section 4.16 of the Indenture dated as of February 23,
2000, among the Guarantor, as issuer, Holdings, as guarantor, and State Street
Bank and Trust Company, as trustee, shall have been eliminated or terminated,
provided that at such time no Guaranty Event shall then exist.

     SECTION 11.  Binding Effect; Assignments.  Whenever in this Agreement any
                  ---------------------------
of the parties hereto is referred to, such reference shall be deemed to include
the successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of the Guarantor that are contained in this Agreement
shall bind and inure to the benefit of each party hereto and their respective
successors and assigns.  This Agreement shall become effective as to the
Guarantor when a counterpart hereof executed on behalf of the Guarantor shall
have been delivered to the Collateral Agent, and a counterpart hereof shall have
been executed on behalf of the Collateral Agent, and thereafter shall be binding
upon the Guarantor and the Collateral Agent and their respective successors and
assigns, and shall inure to the benefit of the Guarantor, the Collateral Agent
and the other Secured Parties, and their respective successors and assigns,
except that the Guarantor shall not have the right to assign its rights or
obligations hereunder or any interest herein (and any such attempted assignment
shall be void).

     SECTION 12.  Waivers; Amendment.  (a) No failure or delay of the Collateral
                  ------------------
Agent in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power.  The rights and remedies of the Collateral Agent hereunder and
of the Collateral Agent and the other Secured Parties under the other Support
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of any provision of this Agreement or
consent to any departure by the Guarantor therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) below, and then
such waiver or consent shall be effective only in the specific instance and for
the purpose for which given.  No notice or demand on the Guarantor in any case
shall entitle the Guarantor to any other or further notice or demand in similar
or other circumstances.

     (b)  Neither this Agreement nor any provision hereof may be waived, amended
or modified except pursuant to a written agreement entered into between the
Guarantor and the Collateral Agent, subject to any consents required in
accordance with Section 11.02 of the Collateral Agency and Intercreditor
Agreement.
<PAGE>

     SECTION 13.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
                  -------------
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 14.  Notices.  All communications and notices hereunder shall be in
                  -------
writing and given as provided in Section 11.01 of the Collateral Agency and
Intercreditor Agreement; provided, however, that all such communications and
notices to the Guarantor shall be delivered to:

     Leap Wireless International, Inc.
     10307 Pacific Center Court
     San Diego, California  92121

     Attention:  President
     Telecopy No. (619) 882-6010

With a copy to:

     Attention:  General Counsel
     Telecopy No. (619) 882-6010

     SECTION 15.  Survival of Agreement; Severability.  (a) All covenants,
                  -----------------------------------
agreements, representations and warranties made by the Guarantor herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or any other Support Document shall be considered
to have been relied upon by the Collateral Agent and the other Secured Parties
and shall survive the extension of credit by any Secured Party pursuant to a
Secured Instrument regardless of any investigation made by any Secured Party or
on its behalf, and shall continue in full force and effect until this Agreement
shall terminate.

     (b)  In the event any one or more of the provisions contained in this
Agreement or in any other Support Document should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction).  The parties
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.
<PAGE>

     SECTION 16.  Counterparts.  This Agreement may be executed in counterparts,
                  ------------
each of which shall constitute an original, but all of which when taken together
shall constitute a single contract, and shall become effective as provided in
Section 11.  Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually executed
counterpart of this Agreement.

     SECTION 17.  Rules of Interpretation.  The rules of interpretation
                  -----------------------
specified in Section 1.02 of the Collateral Agency and Intercreditor Agreement
shall be applicable to this Agreement.

     SECTION 18.  Jurisdiction; Consent to Service of Process.  (a) The
                  -------------------------------------------
Guarantor hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of
New York sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Agreement or any
other Support Document, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such
Federal court.  Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or any other Support Document shall affect any right
that the Collateral Agent or any other Secured Party may otherwise have to bring
any action or proceeding relating to this Agreement or any other Support
Document against the Guarantor or its properties in the courts of any
jurisdiction.

     (b)  The Guarantor hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or any other Support Document in
any New York State or Federal court.  Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

     (c)  Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 14. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.
<PAGE>

     SECTION 19.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
                  --------------------
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR THE OTHER SUPPORT DOCUMENTS.  EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER SUPPORT DOCUMENTS, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 19.

     SECTION 20. Right of Setoff.  While a Notice of Enforcement is in effect,
                 ---------------
each Secured Party is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other Indebtedness at any time owing by such Secured Party to or for the credit
or the account of the Guarantor against any or all the obligations of the
Guarantor then due under this Agreement, irrespective of whether or not such
Secured Party shall have made any demand under this Agreement or any other
Support Document.  After any exercise of such right of setoff, the Secured Party
shall give notice of such exercise to the Collateral Agent and the Guarantor;
provided, however, that failure to give such notice shall not in any way affect
the rights of any Secured Party.  The rights of each Secured Party under this
Section 20 are in addition to other rights and remedies (including other rights
of setoff) which such Secured Party may have.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the day and year first above written.

                                       LEAP WIRELESS INTERNATIONAL, INC.

                                       By ______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

                                       STATE STREET BANK AND TRUST COMPANY,
                                       as Collateral Agent

                                       By_______________________________________
                                       Name:____________________________________
                                       Title:___________________________________
<PAGE>

                                                                       EXHIBIT E

               FIRST AMENDMENT dated as of August 28, 2000, to the Subordination
          Agreement dated as of November 24, 1999 (as supplemented and otherwise
          amended, the "Subordination Agreement"), among CRICKET COMMUNICATIONS
          HOLDINGS, INC. ("Holdings"), CRICKET COMMUNICATIONS, INC. (the
          "Borrower"), LEAP WIRELESS INTERNATIONAL, INC. (the "Parent"), the
          Subsidiaries and License Subsidiaries party thereto (each Subsidiary,
          each License Subsidiary, Holdings and the Parent individually, a
          "Subordinated Creditor" and, collectively, the "Subordinated
          Creditors"), and STATE STREET BANK AND TRUST COMPANY, as Collateral
          Agent.  Capitalized terms used herein and not defined herein shall
          have the meanings assigned to such terms in the Subordination
          Agreement.

     WHEREAS the Borrower and the Subordinated Creditors have requested that
certain provisions of the Subordination Agreement be amended in certain
respects, and the Collateral Agent is willing to amend such provisions on the
terms and subject to the conditions set forth herein.

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

     SECTION 1.  Amendments.  (a) Clause (b) of Section 2.4 of the Subordination
                 -----------
Agreement is hereby amended and restated to read in its entirety as follows:

     "(b) an event has occurred or would occur that with notice, lapse of time
     or both would entitle the Required Secured Parties to deliver a Notice of
     Enforcement."

     (b)  The last sentence of Section 5.2 of the Subordination Agreement is
hereby amended and restated to read in its entirety as follows:

     "Each Subordinated Creditor agrees that it shall not assign or delegate any
     of its obligations under this Agreement without the prior written consent
     of the Collateral Agent and the Required Committed Secured Parties, and any
     attempted assignment or delegation without such consent shall be void and
     of no effect."

     (c)  The phrase "Upon execution and delivery by the Agent and an Affiliate
of Holdings or the Borrower or a Subsidiary Loan Party of an instrument in the
form of Annex 1 attached thereto" in the first sentence of Section 5.9 is hereby
amended to read in its entirety "Upon execution and delivery by the Collateral
Agent and an Affiliate of Holdings or the Borrower or a Subsidiary Loan Party of
an instrument in the form of Annex 1 attached thereto".
<PAGE>

     SECTION 2.  Representations and Warranties.  The Borrower and each of the
                 -------------------------------
Subordinated Creditors hereby jointly and severally represent and warrant to the
Collateral Agent that this Amendment has been duly authorized, executed and
delivered by the Borrower and each of the Subordinated Creditors and each of
this Amendment and the Subordination Agreement as amended hereby constitutes a
legal, valid and binding obligation of the Borrower and each of the Subordinated
Creditors, enforceable in accordance with its terms.

     SECTION 3.  Applicable Law.  THIS AMENDMENT SHALL BE CONSTRUED IN
                 ---------------
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     SECTION 4.  Subordination Agreement.  Except as expressly amended hereby,
                 ------------------------
the Subordination Agreement shall continue in full force and effect in
accordance with the provisions thereof.  Any reference in the Subordination
Agreement, or in any documents or instruments required thereunder or annexes or
schedules thereto, referring to the Subordination Agreement shall be deemed to
refer to the Subordination Agreement as amended by this Amendment.

     SECTION 5.  Expenses.  The Borrower agrees to reimburse the Collateral
                 ---------
Agent for its out-of-pocket expenses in connection with this Amendment.

     SECTION 6.  Counterparts.  This Amendment may be executed in two or more
                 -------------
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute but one contract.  Delivery of an executed
counterpart of a signature page by facsimile transmission shall be effective as
delivery of a manually executed counterpart of this Amendment.
<PAGE>

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

                                  BORROWER:
                                  --------
                                  CRICKET COMMUNICATIONS, INC.

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                  SUBORDINATED CREDITORS:
                                  ----------------------
                                  CRICKET COMMUNICATIONS HOLDINGS, INC.

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                  GUARANTORS:
                                  ----------
                                  CHASE TELECOMMUNICATIONS, INC.
                                  CHASETEL LICENSEE CORP.
                                  CHASETEL REAL ESTATE HOLDING COMPANY, INC.
                                  CRICKET ARIZONA PROPERTY COMPANY
                                  CRICKET ARKANSAS PROPERTY COMPANY
                                  CRICKET COLORADO PROPERTY COMPANY
                                  CRICKET GEORGIA PROPERTY COMPANY
                                  CRICKET HOLDINGS DAYTON, INC.
                                  CRICKET KANSAS PROPERTY COMPANY
                                  CRICKET LICENSEE (NORTH CAROLINA), INC.,
                                    formerly known as Cricket Holdings, Inc.
                                  CRICKET LICENSEE (REAUCTION), INC.
                                  CRICKET NEW MEXICO PROPERTY COMPANY
                                  CRICKET NORTH CAROLINA PROPERTY COMPANY
                                  CRICKET OKLAHOMA PROPERTY COMPANY
                                  CRICKET PENNSYLVANIA PROPERTY COMPANY
                                  CRICKET UTAH PROPERTY COMPANY
                                  CRICKET WASHINGTON PROPERTY COMPANY
                                  CRICKET LICENSEE (DENVER), INC.
<PAGE>

                                       CRICKET LICENSEE (PITTSBURGH), INC.
                                       CRICKET LICENSEE (LAKELAND) INC.

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

                                       LEAP WIRELESS INTERNATIONAL, INC.

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

                                       COLLATERAL AGENT:
                                       ----------------
                                       STATE STREET BANK AND TRUST COMPANY,
                                       as Collateral Agent

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________
<PAGE>

                                                                       EXHIBIT F

                                   [Form of]

                            PERFECTION CERTIFICATE

     Reference is made to (a) the Amended and Restated Collateral Agency and
Intercreditor Agreement dated as of _________, 2000 (as amended, supplemented or
otherwise modified from time to time, the "Collateral Agency and Intercreditor
Agreement),  among Cricket  Communications, Inc. (the "Borrower"), Lucent
Technologies Inc., Ericsson Credit AB, Societe General, the other
Representatives and Unrepresented Holders referred to therein and State Street
Bank and Trust Company, as collateral agent (in such capacity, the "Collateral
Agent") and (b) the Security Agreement dated as of __________, 2000 (as amended,
supplemented or otherwise modified from time to time, the "Security Agreement"),
among the Grantors (as defined therein) and the Collateral Agent.  Capitalized
terms used herein and not defined herein shall have meanings assigned to such
terms in the Collateral Agency and Intercreditor Agreement and the Security
Agreement.

     The undersigned, a Financial Officer and the chief legal officer,
respectively, of the Borrower, hereby certify to the Collateral Agent and each
other Secured Party as follows:

     1.   Names.  (a) The exact corporate name of each Grantor, as such name
appears in its respective certificate of incorporation, is as follows:

     (b)  Set forth below is each other corporate name each Grantor has had in
the past five years, together with the date of the relevant change:

     (c)  Except as set forth in Schedule 1 hereto, no Grantor has changed its
identity or corporate structure in any way within the past five years.  Changes
in identity or corporate structure would include mergers, consolidations and
acquisitions, as well as any change in the form, nature or jurisdiction of
corporate organization.  If any such change has occurred, include in Schedule 1
the information required by Sections 1 and 2 of this certificate as to each
acquiree or constituent party to a merger or consolidation.

     (d)  The following is a list of all other names (including trade names or
similar appellations) used by each Grantor or any of its divisions or other
business units in connection with the conduct of its business or the ownership
of its properties at any time during the past five years:
<PAGE>

     (e)  Set forth below is the Federal Taxpayer Identification Number of each
Grantor:

     2.  Current Locations.  (a) The chief executive office of each Grantor is
located at the address set forth opposite its name below:

Grantor            Mailing Address          County              State
-------            ---------------          ------              -----

     (b) Set forth below opposite the name of each Grantor are all locations
     where such Grantor maintains any books or records relating to any Accounts
     Receivable (with each location at which chattel paper, if any, is kept
     being indicated by an "*"):

Grantor            Mailing Address          County              State
-------            ---------------          ------              -----

     (c) Set forth below opposite the name of each Grantor are all the places of
business of such Grantor not identified in paragraph (a) or (b) above:

Grantor            Mailing Address          County              State
-------            ---------------          ------              -----
<PAGE>

     (d) Set forth below opposite the name of each Grantor are all the locations
where such Grantor maintains any Collateral not identified above:

Grantor            Mailing Address          County              State
-------            ---------------          ------              -----

     (e) Set forth below opposite the name of each Grantor are the names and
addresses of all Persons other than such Grantor that have possession of any of
the Collateral of such Grantor:

Grantor            Mailing Address          County              State
-------            ---------------          ------              -----

     3.   Unusual Transactions.  All Accounts Receivable have been originated by
the Grantors and all Inventory has been acquired by the Grantors in the ordinary
course of business.

     4.   File Search Reports.  Attached hereto as Schedule 4(A) are true copies
of file search reports from the Uniform Commercial Code filing offices where
filings described in  Schedule 6 are to be made.  Attached hereto as Schedule
4(B) is a true copy of each financing statement or other filing identified in
such file search reports.

     5.   UCC Filings.  Duly signed financing statements on Form UCC-1 in
substantially the form of Schedule 5 hereto have been prepared for filing in the
Uniform Commercial Code filing office in each jurisdiction where a Grantor has
Collateral as identified in Section 2 hereof.

     6.   Schedule of Filings.  Attached hereto as Schedule 6 is a schedule
setting forth, with respect to the filings described in Section 5 above, each
filing and the filing office in which such filing is to be made.

     7.   Stock Ownership.  Attached hereto as Schedule 7 is a true and correct
list of all the duly authorized, issued and outstanding Equity Interests of the
Borrower and each Subsidiary Loan Party and the record and beneficial owners of
such stock.  Also set forth on Schedule 7 is each equity investment of the
Borrower and each Subsidiary Loan Party that represents 50% or less of the
equity of the entity in which such investment was made.

     8.   Notes.  Attached hereto as Schedule 8 is a true and correct list of
all notes held by the Borrower and each Subsidiary Loan Party and all
intercompany notes between the Borrower and each Subsidiary Loan Party and
between each Subsidiary Loan Party and each other Subsidiary Loan Party.
<PAGE>

     9.   Advances.  Attached hereto as Schedule 9 is (a) a true and correct
list of all advances made by the Borrower to any Subsidiary Loan Party or made
by any Subsidiary Loan Party to the Borrower or any other Subsidiary Loan Party,
which advances will be on and after the date hereof evidenced by one or more
intercompany notes pledged to the Collateral Agent under the Pledge Agreement,
and (b) a true and correct list of all unpaid intercompany transfers of goods
sold and delivered by or to the Borrower or any Subsidiary Loan Party.

     10.  Mortgage Filings.  Attached hereto as Schedule 10 is a schedule
setting forth, with respect to each Mortgaged Property (i) the exact corporate
name of the entity that owns such property as such name appears in its
certificate of formation, (ii) if different from the name identified pursuant to
clause (i), the exact name of the current record owner of such property
reflected in the records of the filing office for such property identified
pursuant to the following clause and (iii) the filing office in which a Mortgage
with respect to such property must be filed or recorded in order for the
Collateral Agent to obtain a perfected security interest therein.

     IN WITNESS WHEREOF, the undersigned have duly executed this certificate on
this [  ] day of [          ].

                                       CRICKET  COMMUNICATIONS, INC.

                                       By_______________________________________
                                         Name:
                                         Title:  [Financial Officer]

                                       By_______________________________________
                                         Name:
                                         Title: [Legal Officer]

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