Document:

exv10w13

 

EXHIBIT 10.13

 

METROPCS WIRELESS, INC.

THE GUARANTORS NAMED ON SCHEDULE I HERETO

$1,000,000,000

91/4% Senior Notes due 2014

Purchase Agreement

October 26, 2006

BEAR, STEARNS & CO. INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

BANC OF AMERICA SECURITIES LLC

 

 

 

METROPCS WIRELESS, INC.

$1,000,000,000

91/4%
Senior Notes due 2014

 

PURCHASE AGREEMENT

October 26, 2006

New York, New York

BEAR, STEARNS & CO. INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

BANC OF AMERICA SECURITIES LLC

c/o Bear, Stearns & Co. Inc.

383 Madison Avenue

New York, NY 10179

Ladies & Gentlemen:

     MetroPCS Wireless, Inc. a Delaware corporation (the “Company”), proposes to issue and sell to
Bear, Steams & Co. Inc., Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Banc of America
Securities LLC (each an “Initial Purchaser” and together, the “Initial Purchasers”) $1,000,000,000
in aggregate principal amount of 91/4% Senior Notes due 2014 (the “Initial Notes”), subject to the
terms and conditions set forth herein.

     1. The Transactions. Subject to the terms and conditions herein contained, the
Company proposes to issue and sell to the Initial Purchasers $1,000,000,000 in aggregate principal
amount of the Initial Notes. The Initial Notes and the Exchange Notes (as defined below) are
collectively referred to herein as the “Notes.” The Notes will (i) have the terms and provisions
that are described in the Offering Memorandum (as defined below) under the heading “Description of
Notes” and such other terms as are customary for notes of the kind offered and mutually agreed
between the parties and (ii) be issued pursuant to an indenture (the “Indenture”), to be dated as
of the Closing Date (as defined below), among the Company, the Guarantors (as defined below) and
The Bank of New York, as trustee (the “Trustee”).

     The Initial Purchasers and other holders (including the direct and indirect transferees of the
Initial Notes) of the Initial Notes will be entitled to the benefits of the exchange and
registration rights agreement, to be dated as of the Closing Date (the “Registration Rights
Agreement”), among the Company, the Guarantors and the Initial Purchasers, in the form attached
hereto as Exhibit A, for so long as such Initial Notes constitute “Transfer Restricted
Securities” (as defined in the Registration Rights Agreement). Pursuant to the terms and conditions
of the Registration Rights Agreement, the Company and the Guarantors will agree, among other
things, to (i) file (A) a registration statement (the “Registration Statement”) on the appropriate
form with the Securities and Exchange Commission (the “Commission”) under the Securities Act of
1933, as amended (together with the rules and regulations of the Commission

 

 

promulgated
thereunder, the “Securities Act”), 
registering a new series of
91/4% SeniorNotes due
2014 (the “Exchange Notes”) identical in all material respects to the Initial Notes (except that
the Exchange Notes will not contain terms with respect to transfer restrictions) to be offered in
exchange for the Initial Notes (the “Exchange Offer”) and (B) under certain circumstances specified
in the Registration Rights Agreement, a shelf registration statement pursuant to Rule 415 under the
Securities Act (the “Shelf Registration Statement”) and (ii) use their commercially reasonable
efforts to cause the Registration Statement and, if applicable, the Shelf Registration Statement to
be declared effective and to consummate the Exchange Offer as provided in the Registration Rights
Agreement.

     The sale of the Initial Notes and the Guarantees (as defined below) to the Initial Purchasers
(the “Offering”) will be made without registration under the Securities Act, in reliance upon the
exemption therefrom provided by Section 4(2) of the Securities Act.

     In connection with the sale of the Securities (as defined below), the Company prepared a
preliminary offering memorandum, dated October 17, 2006 (the “Preliminary Offering Memorandum”),
and has prepared a final offering memorandum, dated the date hereof (the “Offering Memorandum”),
each setting forth information regarding the Company, MetroPCS Communications, Inc., a Delaware
corporation (“Parent”), the Subsidiaries (as defined below), Royal Street (as defined below), the
Securities (as defined below), the terms of the Offering and the transactions contemplated by the
Offering Transaction Documents (as defined below), and any material developments relating to the
Company and the Guarantors occurring after the date of the most recent financial statements
included therein. Any references herein to the Preliminary Offering Memorandum or the Offering
Memorandum shall be deemed to include, in each case, all amendments and supplements thereto. The
Company hereby confirms that it has authorized the use of the Disclosure Package (as defined
below) and the Offering Memorandum in connection with the offering and resale of the Initial Notes
by the Initial Purchasers.

     The Company understands that the Initial Purchasers propose to make an offering of the
Initial Notes (the “Exempt Resales”) only on the terms and in the manner set forth in the Offering
Memorandum, as amended or supplemented, and Sections 4 and 5 hereof as soon as the Initial
Purchasers deem advisable after this Agreement has been executed and delivered, solely to (i)
persons in the United States whom the Initial Purchasers reasonably believe to be “qualified
institutional buyers” (“QIBs”) as
defined in Rule 144A under the Securities Act, as such rule may
be amended from time to time (“Rule
144A”),in transactions under Rule 144A, and (ii) outside the
United States to certain persons in reliance on Regulation S (“Regulation S”) under the Securities
Act (each, a “Reg S Investor”). The QIBs and the Reg S Investors are collectively referred to
herein as the “Eligible Purchasers.” The Initial Purchasers will offer the Initial Notes to such
Eligible Purchasers initially at a price equal to 100% of the principal amount thereof. Such price
may be changed by the Initial Purchasers at any time without notice.

     The payment of principal of, premium and liquidated damages, if any, and interest on the
Initial Notes and the Exchange Notes will be fully and unconditionally guaranteed on a senior
unsecured basis, jointly and severally, by (i) Parent, (ii) HoldCo (as defined below), (iii) each
of the Company’s Subsidiaries listed in Schedule I hereto, and (iv) any subsidiary of the
Company or Parent formed or acquired after the Closing Date that executes an additional guarantee
in accordance with the terms of the Indenture, and respective successors and assigns of Parent,

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HoldCo and the Subsidiaries of the Company or Parent referred to in (iii) and (iv) above
(collectively, the “Guarantors”), pursuant to their guarantees (the “Guarantees”). The Initial
Notes and the Guarantees attached thereto are herein collectively referred to as the “Securities”;
and the Exchange Notes and the Guarantees attached thereto are herein collectively referred to as
the “Exchange Securities.”

     The Initial Notes are being issued and sold in connection with the refinancing (the
“Refinancing”) of certain of Parent’s and the Subsidiaries’ existing debt, including borrowings
under (i) the Exchangeable Senior Unsecured Credit Agreement, dated as of October 3, 2006, by and
among MetroPCS IV, Inc. (“MetroPCS IV”), the lenders party thereto from time to time, Bear, Stearns
& Co. Inc. (“Bear Stearns”) as lead arranger and a joint book running manager, Bear Stearns
Corporate Lending Inc. (“BSCL”) as syndication agent and as administrative agent, Merrill Lynch
Capital Corporation (“MLCC”) as a joint book
running manager and Banc of America Bridge LLC
(“BofA”) as a joint book running manager, as amended to date (the “SuperHoldCo Bridge Agreement”),
(ii) the Exchangeable Senior Secured Credit and Guaranty Agreement, dated as of July 13, 2006, by
and among MetroPCS II, Inc. (“MetroPCS II”)
as borrower, MetroPCS AWS, LLC (“Metro AWS”), as a
guarantor, the additional guarantors party thereto from time to time, the lenders party thereto
from time to time, Bear Stearns as lead arranger and a joint book running manager, BSCL as
syndication agent and as administrative agent, MLCC as a joint book running manager and BofA as a
joint book running manager, as amended to date (the “HoldCo Bridge Agreement”), (iii) the First
Lien Credit Agreement, dated as of May 31, 2005, by and among HoldCo, the Company as borrower, the
several lenders from time to time party thereto, BSCL as administrative agent and syndication
agent, Bear Stearns as sole lead arranger and sole bookrunner, and Merrill Lynch, Pierce, Fenner &
Smith Incorporated as documentation agent, as amended to date (the “First Lien Credit Agreement”)
and (iv) the Second Lien Credit Agreement, dated as of May 31, 2005, by and among HoldCo, the
Company as borrower, the several lenders from time to time party thereto, MLCC as administrative
agent, BSCL as syndication agent, and Bear Stearns as sole lead arranger and sole bookrunner as
amended to date (together with the SuperHoldCo Bridge Agreement, the HoldCo Bridge Agreement and
the First Lien Credit Agreement, the “Existing Credit Agreements”). In order to finance the
Refinancing and the related premiums, fees and expenses the Company and the Guarantors will, in
addition to issuing the Notes and Guarantees as contemplated hereby, enter into a senior secured
credit facility aggregating up to $1,700,000,000 (such credit
facility, the “New Credit
Agreement”). Any excess proceeds of the Initial Notes and the New Credit Agreement over the
Refinancing and the related premiums, fees and expenses may be used by the Company for general
corporate purposes.

     In connection with the Refinancing and immediately thereafter, Parent intends to consolidate
certain of its Subsidiaries through a corporate restructuring
pursuant to which MetroPCS IV,
MetroPCS III, Inc., MetroPCS II and MetroPCS, Inc., will be merged with and into the Company and
the name of MetroPCS V, Inc. will be changed to MetroPCS, Inc. (“Holdco”) such that following the
restructuring transactions (the “Restructuring Transactions”), HoldCo shall be a direct
wholly-owned subsidiary of Parent and the Company shall be a direct wholly-owned subsidiary of
HoldCo.

     This Agreement, the Securities, the Exchange Securities, the Indenture, the Registration
Rights Agreement, the New Credit Agreement and each of the documents pursuant to which the

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Restructuring Transactions are consummated are hereinafter referred to collectively as the
“Offering Transaction Documents” Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Offering Memorandum, and if not defined
therein, in the Indenture.

     2. Representations and Warranties of the Company and the Guarantors. The Company and
the Guarantors, jointly and severally and as of the date hereof, represent and warrant to, and
agree with, the Initial Purchasers that:

          (a) (i) The Preliminary Offering Memorandum as of its date did not, (ii) the Preliminary
Offering Memorandum, as supplemented by the information and documents listed in Schedule II
hereto (the “Pricing Supplement”) (the Preliminary Offering Memorandum and the Pricing Supplement
taken together, the “Disclosure
Package”), as of the Applicable Time (as defined below) does not,
(iii) the Offering Memorandum as of its date does not, and as of the Closing Date will not and (iv)
any supplement or amendment to any of the documents referenced in clauses (i) through (iii) above
does not as of its respective date and will not as of the Closing Date, contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading,
except that the representations and warranties contained in this paragraph shall not apply to
statements in or omissions from the Preliminary Offering Memorandum, the Disclosure Package or the
Offering Memorandum (or any supplement or amendment thereto, including the Pricing Supplement) made
in reliance upon and in conformity with information relating to the Initial Purchasers furnished to
the Company and the Guarantors in writing by the Initial Purchasers expressly for use therein, it
being understood and agreed that the only such information furnished by the Initial Purchasers
consists of the information described as such in Section 11 hereof. For purposes of this
Agreement, the “Applicable Time” is 2:00 p.m. New York City time on the date of this Agreement.

          (b) The Disclosure Package and the Offering Memorandum have been or will be prepared by the
Company for use by the Initial Purchasers in connection with the Offering.

          (c) (intentionally omitted).

          (d) Subsequent to the respective dates as of which information is given in the Disclosure
Package and the Offering Memorandum, except as disclosed in the Disclosure Package and the Offering
Memorandum and other than in connection with the repayment of the Existing Credit Agreements,
neither Parent, Royal Street Communications LLC and its
subsidiaries(“Royal Street”)nor any
Subsidiary (as defined below) has declared, paid or made any dividends or other distributions of
any kind on or in respect of its capital stock and there has been no material adverse change, in
the capital stock or the long-term debt, or material increase in the short-term debt (other than
under the HoldCo Bridge Agreement, the SuperHoldCo Bridge Agreement and the Second Amended and
Restated Credit Agreement executed on December 15, 2005 as of December 22, 2004, by and between
Company and Royal Street Communications, LLC, as amended (the “Royal Street Credit Agreement”)), of
Parent, Royal Street or any Subsidiary from that set forth in the Disclosure Package and the
Offering Memorandum, whether or not arising from transactions in the ordinary course of business,
in or affecting (i) the business, assets, financial condition, results of operations or properties
of Parent, Royal Street and the

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Subsidiaries, taken as a whole or (ii) the ability of the Company to consummate the Offering or
any of the other transactions contemplated by the Offering Transaction Documents. Since the date
of the latest balance sheet included in the Disclosure Package and the Offering Memorandum,
neither Parent nor any Subsidiary has incurred or undertaken any liabilities or obligations,
whether direct or indirect, liquidated or contingent, matured or unmatured, or entered into any
transactions, including any acquisition or disposition of any business or asset, which is material
to Parent, Royal Street and the Subsidiaries, taken as a whole, except for liabilities,
obligations and transactions which are disclosed in the Disclosure Package and the Offering
Memorandum and purchase transactions in the ordinary course of business.

          (e) Parent and each Subsidiary (i) has been duly organized and is validly existing as a
corporation, partnership or limited liability company in good standing under the laws of its
jurisdiction of organization, (ii) has all requisite power and authority to carry on its business
as it is currently being conducted and as described in the Disclosure Package and the Offering
Memorandum, and to own, lease and operate its respective properties and (iii) is duly qualified and
authorized to do business and is in good standing as a foreign corporation, partnership or limited
liability company in each jurisdiction in which the character or location of its properties (owned,
leased or licensed) or the nature or conduct of its business makes such qualification necessary,
except for those failures to be so qualified or in good standing which (individually or in the
aggregate) would not reasonably be expected to have a material adverse effect on (A) the business,
assets, financial condition, results of operations, or properties of Parent, Royal Street and the
Subsidiaries, taken as a whole, (B) the long-term debt or capital stock of Parent, Royal Street or
any Subsidiary, (C) the issuance or marketability of the Notes or (D) the validity of this
Agreement or any other Offering Transaction Document or the transactions described in the
Disclosure Package and the Offering Memorandum under the caption “Use of Proceeds” (any such effect
being a “Material Adverse Effect”).

          (f) The subsidiaries listed on Exhibit B (collectively, the “Subsidiaries” and
individually, a “Subsidiary”) are the only “subsidiaries” of Parent (within the meaning of Rule 405
under the Securities Act) other than Royal Street. Except for the Subsidiaries or as otherwise
disclosed in the Disclosure Package and the Offering Memorandum, Parent does not hold ownership or
other interest, nominal or beneficial, direct or indirect, in any corporation, partnership, joint
venture or other business entity. All of the issued shares of capital stock of, or other ownership
interests in, each Subsidiary have been duly and validly authorized and issued and are fully paid
and non-assessable and are owned, directly or indirectly, by Parent, free and clear of any lien,
charge, mortgage, pledge, security interest, claim, limitation on voting rights, equity, trust or
other encumbrance, preferential arrangement, defect or restriction of any kind whatsoever (any
“Lien”), except for any such security interests, claims, liens, limitations on voting rights or
encumbrances as would (a) constitute “Permitted Liens” (“Permitted Liens”) as defined in the
section of the Disclosure Package and the Offering Memorandum entitled “Description of Notes” (the
“DoN”), (b) be immaterial to the business, assets, financial condition, results of operations or
properties of the Parent and the Subsidiaries taken as a whole, or (c) any restrictions on transfer
under applicable federal or state securities laws.

          (g) Except as disclosed in the Disclosure Package and the Offering Memorandum, no
Subsidiary has outstanding subscriptions, rights, warrants, calls, commitments of sale or options
to acquire, or any preemptive rights or other rights to subscribe for or to

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purchase, or any contracts or commitments to issue or sell, or instruments convertible into or
exchangeable for, any capital stock or other equity interest in the Subsidiaries (any “Relevant
Security”). All of the issued and outstanding shares of capital stock of Parent are fully paid and
non-assessable and have been duly and validly authorized and issued, in compliance with all
applicable state, federal and foreign securities laws and not in violation of or subject to any
preemptive or similar right that does or will entitle any person, upon the issuance or sale of any
security, to acquire from Parent or any Subsidiary any Relevant Security of Parent or any
Subsidiary, except for such violations which would not reasonably be expected to result in a
Material Adverse Effect.

          (h) When the Initial Notes and the Guarantees thereof are issued and delivered pursuant to
this Agreement, no securities of Parent or any Subsidiary will be (i) of the same class (within the
meaning of Rule 144A) as the Initial Notes and the Guarantees thereof and (ii) listed on a national
securities exchange registered under Section 6 of the Securities Exchange Act of 1934, as amended
(together, with the rules and regulations of the Commission promulgated thereunder, the “Exchange
Act") or quoted in a United States automated interdealer quotation system.

          (i) The Company and each of the Guarantors has the required corporate or limited liability
company power and authority to execute, deliver and perform its obligations under this Agreement
and each of the other Offering Transaction Documents to which it is a party and to consummate the
transactions contemplated hereby and thereby, including, without limitation, the corporate or
limited liability company power and authority to issue, sell and deliver the Notes and to issue
and deliver the related Guarantees as provided herein and therein.

          (j) The Initial Notes have been duly and validly authorized by the Company for issuance and
sale to the Initial Purchasers pursuant to this Agreement and, when executed by the Company and
authenticated by the Trustee in accordance with the provisions of the Indenture and when delivered
to and paid for by the Initial Purchasers in accordance with the terms hereof and thereof, will be
duly and validly executed, issued and delivered and will constitute valid and legally binding
obligations of the Company, entitled to the benefits of the Indenture and enforceable against the
Company in accordance with their terms, except that the enforcement thereof may be limited by (i)
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws
now or hereafter in effect relating to or affecting creditors’ rights generally and (ii) general
principles of equity (regardless of whether such enforcement is considered in a proceeding at law
or in equity) (clauses (i) and (ii) are referred to herein collectively as the “Enforceability
Exceptions”). The Initial Notes will conform in all material respects to the descriptions thereof
in the Disclosure Package and the Offering Memorandum. At the Closing Date, the Initial Notes will
be in the form contemplated by the Indenture.

          (k) The Guarantees of the Initial Notes have been duly and validly authorized by each of the
Guarantors for issuance to the Initial Purchasers pursuant to this Agreement and, when executed by
the respective Guarantors in accordance with the provisions of the Indenture and when delivered to
the Initial Purchasers in accordance with the terms hereof and thereof, and when the Initial Notes
have been issued and authenticated in accordance with the provisions of the Indenture and
delivered to and paid for by the Initial Purchasers in accordance with the terms hereof and
thereof, will constitute valid and legally binding obligations of each of the

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Guarantors, entitled to the benefits of the Indenture and enforceable against each of them in
accordance with their terms, except that the enforcement thereof may be limited by the
Enforceability Exceptions. The Guarantees of the Initial Notes will conform in all material
respects to the descriptions thereof in the Disclosure Package and the Offering Memorandum.

          (1) The Exchange Notes have been duly and validly authorized for issuance by the Company and,
when issued and executed by the Company and authenticated by the Trustee in accordance with the
terms of the Exchange Offer and the Indenture, will constitute valid and legally binding
obligations of the Company, entitled to the benefits of the Indenture and enforceable against the
Company in accordance with their terms, except that the enforcement thereof may be limited by the
Enforceability Exceptions. The Exchange Notes will conform in all material respects to the
descriptions thereof in the Disclosure Package and the Offering Memorandum.

          (m) The Guarantees of the Exchange Notes have been duly and validly authorized by each of the
Guarantors and, when executed by the respective Guarantors and when delivered in accordance with
the provisions of the Indenture and when the Exchange Notes have been issued and authenticated in
accordance with the terms of the Exchange Offer and the Indenture, will constitute valid and
legally binding obligations of each of the Guarantors, entitled to the benefits of the Indenture
and enforceable against each of them in accordance with their terms, except that the enforcement
thereof may be limited by the Enforceability Exceptions. The Guarantees of the Exchange Notes will
conform in all material respects to the descriptions thereof in the Disclosure Package and the
Offering Memorandum.

          (n) The Indenture has been duly and validly authorized by the Company and each Guarantor and,
when duly executed and delivered by the Company and each Guarantor (assuming the due authorization,
execution and delivery by the Trustee), will constitute a valid and legally binding agreement of
the Company and each Guarantor, enforceable against each of them in accordance with its terms,
except that the enforcement thereof may be limited by the Enforceability Exceptions. The Indenture
conforms in all material respects to the description thereof in the Disclosure Package and the
Offering Memorandum. On the Closing Date, the Indenture will conform in all material respects to
the requirements of the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), and
the rules and regulations of the Commission applicable to an indenture that is qualified
thereunder.

          (o) The Registration Rights Agreement has been duly and validly authorized by the Company and
each Guarantor and, when duly executed and delivered by the Company and each Guarantor (assuming
the due authorization, execution and delivery by the Initial Purchasers), will constitute a valid
and legally binding obligation of the Company and each Guarantor, enforceable against each of them
in accordance with its terms, except that the enforcement thereof may be limited by the
Enforceability Exceptions. The Registration Rights Agreement conforms in all material respects to
the description thereof in the Disclosure Package and the Offering Memorandum.

          (p) This Agreement has been duly and validly authorized, executed and delivered by the
Company and each Guarantor.

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          (q) Neither Parent nor any Subsidiary (i) is in violation of its certificate or articles of
incorporation, by-laws, certificate of formation, limited liability company agreement, partnership
agreement or other organizational documents, (ii) is in default under, and no event has occurred
which, with notice or lapse of time, or both, would constitute a default under, or result in the
creation or imposition of any Lien upon, any property or assets of Parent or any Subsidiary
pursuant to, any bond, debenture, note, indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which it is a party or by which it is bound or to which any of its
properties or assets is subject or (iii) is in violation of any statute, law, rule, regulation,
ordinance, directive, judgment, decree or order of any judicial, regulatory or other legal or
governmental agency or body, foreign or domestic, except (in the case of clauses (ii) and (iii)
above) for violations or defaults that would not (individually or in the aggregate) reasonably be
expected to have a Material Adverse Effect and except (in the case of clause (ii) alone) for any
Lien disclosed in the Disclosure Package and the Offering Memorandum.

          (r) None of (i) the execution, delivery and performance by the Company and each Guarantor of
this Agreement and consummation of the transactions contemplated by the Offering Transaction
Documents to which each of them, respectively, is a party, (ii) the issuance and sale of the
Initial Notes, the issuance of the Exchange Notes, and the issuance of the Guarantees or (iii) the
consummation by Parent and the Subsidiaries of the transactions described in the Disclosure
Package and the Offering Memorandum under the caption “Use of Proceeds,” violates or will violate,
conflicts with or will conflict with, requires or will require consent under, or results or will
result in a breach of any of the terms and provisions of, or constitutes or will constitute a
default (or an event which with notice or lapse of time, or both, would constitute a default)
under, or results or will result in the creation or imposition of any Lien upon any property or
assets of Parent or any Subsidiary, or an acceleration of any Indebtedness (as defined in the DoN)
of Parent or any Subsidiary pursuant to (A) any provision of the certificate or articles of
incorporation, by-laws, certificate of formation, limited liability company agreement, partnership
agreement or other organizational documents of Parent or any Subsidiary, (B) any bond, debenture,
note, indenture, mortgage, deed of trust, loan agreement or other agreement, instrument,
franchise, license or permit to which Parent or any Subsidiary is a party or by which Parent or
any Subsidiary or their respective properties, operations or assets is or may be bound or (C)
assuming the representations of the Initial Purchasers contained herein are true and correct, any
statute, law, rule, regulation, ordinance, directive, judgment, decree or order of any judicial,
regulatory or other legal or governmental agency or body, domestic or foreign, except (x) in the
case of the Registration Rights Agreement, consents and approvals that will be obtained and made
under the Securities Act, the Trust Indenture Act, and state securities or blue sky laws and
regulations, and (y) (in the case of clauses (B) and (C) above) as would not reasonably be
expected to have a Material Adverse Effect.

          (s) Each of Parent and the Subsidiaries has all necessary consents, approvals,
authorizations, orders, registrations, qualifications, licenses, filings and permits of, with and
from all judicial, regulatory and other legal or governmental agencies and bodies and all third
parties, foreign and domestic (collectively, the “Consents”), to own, lease and operate its
properties and conduct its business as it is now being conducted and as disclosed in the
Disclosure Package and the Offering Memorandum, and each such Consent is valid and in full force
and effect, except (i) in each case as would not reasonably be expected to have a Material Adverse
Effect and (ii) the acquisition of licenses on which subsidiaries of Parent have been declared the
high bidder in

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FCC Auction 66 will require consents, approvals and governmental authorizations from and filings
with the FCC that have not been obtained or made and have not been issued by final order (the
“Auction 66 License Exceptions”). Except as disclosed in the Disclosure Package and the Offering
Memorandum, neither Parent nor any Subsidiary has received notice of any investigation or
proceedings which, if decided adversely to Parent or any Subsidiary, would reasonably be expected
to result in, the revocation of, or imposition of a materially burdensome restriction on, any
Consent. Except as disclosed in the Disclosure Package and the Offering Memorandum, each of Parent
and each Subsidiary is in compliance with all applicable laws, rules, regulations, ordinances,
judgments, decrees and orders, foreign and domestic, except where failure to be in compliance
would not reasonably be expected to have a Material Adverse Effect.

          (t) After giving effect to the transactions contemplated by each of the Offering Memorandum
and the Offering Transaction Documents and the Restructuring Transactions, no Consent is required
for (i) the execution, delivery and performance by each of the Company and the Guarantors of this
Agreement or consummation of the Offering, the Exchange Offer and the other transactions
contemplated by the Offering Transaction Documents to which each of them, respectively, is a party
or (ii) the issuance, sale and delivery of the Initial Notes (and the issuance of the Exchange
Notes in connection with the Exchange Offer), and the issuance of the Guarantees, except such
Consents as have been or will be obtained and made on or prior to the Closing Date (or, in the case
of the Registration Rights Agreement, will be obtained and made under the Securities Act, the Trust
Indenture Act, and state securities or blue sky laws and regulations) and that the Commission must
declare the Registration Statement effective pursuant to the Registration Rights Agreement, except
where the failure to obtain such Consent would not reasonably be expected to have a Material
Adverse Effect.

          (u) Except as disclosed in the Disclosure Package and the Offering Memorandum, there is (i)
no judicial, regulatory, arbitral or other legal or governmental proceeding or other litigation or
arbitration pending, domestic or foreign, to which Parent, any Subsidiary or, to Parent’s
knowledge, Royal Street, is a party or of which the business, property, operations or assets of
Parent or any Subsidiary is subject, (ii) no statute, rule, regulation or order that has been
enacted, adopted or issued by any governmental agency, and (iii) no injunction, restraining order
or order of any nature by a federal or state court or foreign court of competent jurisdiction to
which Parent or any Subsidiary is subject or to which the business, property, operations or assets
of Parent or any Subsidiary is or may be subject which, if determined adversely to Parent or any
Subsidiary, would reasonably be expected to have a Material Adverse Effect; and to Parent’s
knowledge, no such proceeding, litigation or arbitration is threatened or contemplated.

          (v) There exists as of the date hereof (after giving effect to the transactions contemplated
by each of the Offering Transaction Documents) no event or condition that would constitute a
default or an event of default (in each case as defined in each of the Offering Documents) under
any of the Offering Transaction Documents that would result in a Material Adverse Effect or
materially adversely affect the ability of the Company to consummate the Offering and the other
transactions contemplated by the Offering Transaction Documents, including, without limitation,
the Exchange Offer.

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          (w) (i) To Parent’s knowledge, no action has been taken and no statute, rule, regulation or
order has been enacted, adopted or issued by any governmental agency that prevents the issuance of
the Notes or the Guarantees or prevents or suspends the use of the Disclosure Package or the
Offering Memorandum or any amendment or supplement thereto, (ii) no injunction, restraining order
or order of any nature by a federal or state court of competent jurisdiction has been issued that
prevents the issuance of the Notes or the Guarantees or prevents or suspends the sale of the
Initial Notes or the Guarantees in any jurisdiction referred to in Section 6(e) hereof, (iii)
every request of any securities authority or agency of any jurisdiction for additional information
relating to the issuance of the Notes or Guarantees or the sale of the Initial Notes has been
complied with in all material respects and (iv) no order asserting that any of the transactions
contemplated by this Agreement are subject to the registration requirements of the Securities Act
has been issued and no proceeding for that purpose has commenced or is pending or, to the Parent’s
knowledge, is contemplated.

          (x) There is (i) no material unfair labor practice complaint pending against Parent or any
Subsidiary nor, to Parent’s knowledge, threatened against any of them, before the National Labor
Relations Board, any state or local labor relations board or any foreign labor relations board,
and no material grievance or material arbitration proceeding arising out of or under any
collective bargaining agreement is so pending against Parent or any Subsidiary or, to the Parent’s
knowledge, threatened against any of them, (ii) no material strike, labor dispute, slowdown, or
stoppage pending against Parent or any Subsidiary nor, to Parent’s knowledge, threatened against
any of them, (iii) no material labor disturbance by the employees of Parent or any Subsidiary or,
to Parent’s knowledge, no such disturbance is imminent and (iv) no union representation petition
has been submitted to Parent or any Subsidiary. To Parent’s knowledge, no collective bargaining
organizing activities are taking place with respect to Parent or any Subsidiary. Neither Parent
nor any Subsidiary has violated (i) any federal, state or local law or foreign law relating to
discrimination in hiring, promotion or pay of employees or (ii) any applicable wage or hour laws,
except those violations that would not reasonably be expected to have a Material Adverse Effect.

          (y) No “prohibited transaction” (as defined in either Section 406 of the Employee Retirement
Income Security Act of 1974, as amended, including the regulations and published interpretations
thereunder (“ERISA”) or Section 4975 of the Internal Revenue Code of 1986, as amended from time to
time (the “Code”)), “accumulated funding deficiency” (as defined in Section 302 of ERISA) or other
event of the kind described in Section 4043(b) of ERISA (other than events with respect to which
the 30-day notice requirement under Section 4043 of ERISA has been waived) has occurred with
respect to any employee benefit plan for which Parent or any Subsidiary would have any liability
which would (individually or in the aggregate) reasonably be expected to have a Material Adverse
Effect; each employee benefit plan for which Parent or any Subsidiary would have any liability is
in compliance with its terms and applicable law, including (without limitation) ERISA and the Code,
except where such violation would not reasonably be expected to result in a Material Adverse
Effect; neither Parent nor any Subsidiary has incurred liability under Title IV of ERISA with
respect to the termination of, or withdrawal from any “pension plan” or “multi-employer plan” (as
defined in Section 3(37) of ERISA); and each plan for which Parent or any Subsidiary would have any
liability that is intended to be qualified under Section 401 (a) of the Code is so qualified in all
material respects, its related trust is exempt from taxation under Section 501 (a) of the Code, and
nothing has

10

 

occurred, whether by action or by failure to act, which would cause the loss of such
qualification. The execution and delivery of this Agreement, the other Offering Transaction
Documents and the sale of the Securities to be purchased by Eligible Purchasers will not involve
any prohibited transaction within the meaning of Section 406 of ERISA or Section 4975 of the
Internal Revenue Code of 1986. The representation made by the Company and the Guarantors in the
preceding sentence is made in reliance upon and subject to the accuracy of, and compliance with,
the representations and covenants made or deemed made by Eligible Purchasers as set forth in the
Disclosure Package and the Offering Memorandum under the caption “Notice to Investors.”

          (z) None of Parent or any Subsidiary has violated, or is in violation of, any foreign,
federal, state or local law or regulation relating to the protection of human health and safety,
the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(collectively, “Environmental Laws”), which violations could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

          (aa) There is no alleged liability, or to Parent’s knowledge, potential liability (including,
without limitation, alleged or potential liability or investigatory costs, cleanup costs,
governmental response costs, natural resource damages, property damages, personal injuries or
penalties) of Parent or any Subsidiary arising out of, based on or resulting from (i) the presence
or release into the environment of any Hazardous Material (as defined below) at any location,
whether or not owned by Parent or any Subsidiary, as the case may be or (ii) any violation or
alleged violation of any Environmental Laws, other than as disclosed in the Disclosure Package and
the Offering Memorandum and except as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The term “Hazardous Material” means (i) any “hazardous
substance” as defined by the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended, (ii) any “hazardous waste” as defined by the Resource Conservation and
Recovery Act of 1976, as amended, (iii) any petroleum or petroleum product, (iv) any
polychlorinated biphenyl and (v) any pollutant or contaminant or hazardous, dangerous or toxic
chemical, material, waste or substance regulated under or within the meaning of any other law
relating to protection of human health or the environment or imposing liability or standards of
conduct concerning any such chemical material, waste or substance.

          (bb) (intentionally omitted).

          (cc) Parent, Royal Street and the Subsidiaries own or lease all such properties as are
reasonably necessary to the conduct of the business of Parent, Royal Street and the Subsidiaries
as presently operated as described in the Disclosure Package and the Offering Memorandum. Parent,
Royal Street and the Subsidiaries have (i) good and marketable title in fee simple to all real
property and good and marketable title to all personal property owned by them, in each case free
and clear of any and all Liens, except for Permitted Liens, Liens under the Royal Street Credit
Agreement, the Amended and Restated Security Agreement executed on December 15, 2005 as of
December 22, 2004, between Royal Street Communications, LLC and the Company, as amended, the
Amended and Restated Pledge Agreement executed on December 15, 2005 as of December 22, 2004
between Royal Street Communications, LLC and the Company, as amended, and except such as are
described in the Disclosure Package and the Offering Memorandum or such as do not (individually or
in the aggregate) materially affect the

11

 

value of such property or materially interfere with the use made or proposed to be made of such
property by Parent, Royal Street and the Subsidiaries and (ii) peaceful and undisturbed possession
of any material real property and buildings held under lease or sublease by Parent, Royal Street
and the Subsidiaries and such leased or subleased real property and buildings are held by them
under valid, subsisting and enforceable leases and no default exists thereunder, (including, to
Parent’s knowledge, defaults by the landlord) with such exceptions as are not material to, and do
not interfere with, the use made and proposed to be made of such property and buildings by Parent
and the Subsidiaries. Neither Parent nor any Subsidiary, nor to Parent’s knowledge Royal Street,
has received any notice of any claim adverse to its ownership of any real or personal property or
of any claim against the continued possession of any real property, whether owned or held under
lease or sublease by Parent, Royal Street or any Subsidiary, which would reasonably be expected to
have a Material Adverse Effect.

          (dd) Parent and each Subsidiary (i) owns or possesses right to use all patents, patent
applications, trademarks, service marks, domain names, trade names, trademark registrations,
service mark registrations, copyrights, licenses, formulae, customer lists, and know-how and other
intellectual property (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures, the “Intellectual Property”) necessary for the
conduct of their respective businesses as presently being conducted and as described in the
Disclosure Package and the Offering Memorandum, except where the failure to own or possess would
not reasonably be expected to have a Material Adverse Effect and (ii) have no reason to believe
that the conduct of their respective businesses does or will conflict with, and have not received
any notice of any claim of conflict with, any such right of others (except for such right, or
claimed right pursuant to the Existing Credit Agreements or the New Credit Agreement or as
disclosed in the Disclosure Package and the Offering Memorandum). Except as disclosed in the
Disclosure Package and the Offering Memorandum, or as would not reasonably be expected to have a
Material Adverse Effect, to Parent’s knowledge, there is no infringement by third parties of any
Intellectual Property of Parent or any Subsidiary; except as disclosed in the Disclosure Package
and the Offering Memorandum, or as would not reasonably be expected to have a Material Adverse
Effect, there is no pending or, to Parent’s knowledge, threatened action, suit, proceeding or claim
by others challenging the rights in or to any Intellectual Property of Parent or any Subsidiary;
and except as disclosed in the Disclosure Package and the Offering Memorandum, or as would not
reasonably be expected to have a Material Adverse Effect, there is no pending or, to Parent’s
knowledge, threatened action, suit, proceeding or claim by others that Parent or any Subsidiary
infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary
rights of others.

          (ee) Parent and each Subsidiary has, in all material respects, accurately prepared and timely
filed all federal, and all material state, foreign and other tax returns that are required to be
filed by it and has paid or made provision (to the extent required by U.S. GAAP) for the payment
of all taxes, assessments, governmental or other similar charges, including without limitation,
all sales and use taxes and all taxes which Parent or any Subsidiary is obligated to withhold from
amounts owing to employees, creditors and third parties, with respect to the periods covered by
such tax returns (whether or not such amounts are shown as due on any tax return). No material
deficiency assessment with respect to a proposed adjustment of Parent or any Subsidiary’s federal,
state, local or foreign taxes is pending or, to Parent’s knowledge, threatened. The accruals and
reserves on the books and records of Parent and the Subsidiaries in

12

 

respect of tax liabilities for any taxable period not finally determined are adequate in all
material respects (in accordance with U.S. GAAP) to meet any assessments and related liabilities
for any such period and, since December 31, 2005, Parent and the Subsidiaries have not incurred any
material liability for taxes other than in the ordinary course of its business. There is no tax
lien, whether imposed by any federal, state, foreign or other taxing authority, outstanding against
the assets, properties or business of Parent or any Subsidiary,
except such liens as would not
reasonably be expected to have a Material Adverse Effect.

          (ff) Parent, Royal Street and the Subsidiaries maintain a system of internal accounting and
other controls sufficient to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorizations, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with U.S. GAAP and to
maintain accountability for assets, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization and (iv) the recorded accounting for assets is
compared with existing assets at reasonable intervals and appropriate action is taken with respect
to any differences.

          (gg) Parent is not aware of any material weaknesses in its internal control over financial
reporting. Since the date of the latest audited financial statements included in the Disclosure
Package and the Offering Memorandum, there has been no change in Parent’s internal control over
financial reporting that has materially affected, or is reasonably likely to materially adversely
affect, Parent’s internal control over financial reporting.

          (hh) (intentionally omitted).

          (ii) Parent maintains insurance in such amounts and covering such risks as Parent reasonably
considers adequate for the conduct of Parent and each Subsidiary’s businesses and the value of
Parent and each Subsidiary’s properties and as is customary for privately-held companies engaged
in similar businesses in similar industries, all of which insurance is in full force and effect,
except where the failure to maintain such insurance would not reasonably be expected to have a
Material Adverse Effect. There are no material claims by Parent or any Subsidiary under any such
policy or instrument as to which any insurance company is denying liability or defending under a
reservation of rights clause. Parent reasonably believes that Parent and each Subsidiary will be
able to renew their respective existing insurance as and when such coverage expires or will be
able to obtain replacement insurance adequate for the conduct of the business and the value of its
properties at a cost that would not reasonably be expected to have a Material Adverse Effect.
Neither Parent nor any Subsidiary has received notice from any insurer or agent of such insurer
that substantial capital improvements or other expenditures will have to be made in order to
continue such insurance.

          (jj) Parent has in effect insurance covering its directors and officers as is customary for
privately held companies engaged in similar businesses in similar industries for liabilities or
losses arising in connection with the Offering, except where the failure to have such coverage
would not reasonably be expected to have a Material Adverse Effect.

          (kk) Except as disclosed in the Disclosure Package and the Offering Memorandum, no
relationship, direct or indirect, exists between or among Parent, any Subsidiary

13

 

or any affiliate of the Company, on the one hand, and any director, executive officer or security
holder (or any immediate family member of such director, executive officer or security holder), of
Parent, any Subsidiary or any affiliate of the Company, on the other hand, which is required by the
Securities Act to be described in the Disclosure Package and the Offering Memorandum if the
Disclosure Package and the Offering Memorandum were prospectuses included in registration
statements on Form S-l filed with the Commission (assuming the effectiveness of amendments to Item
404 of Regulation S-K adopted by the SEC in Release No. 33-8732). There are no outstanding loans,
advances (except normal advances for business expenses in the ordinary course of business) or
guarantees of indebtedness by the Company or Parent to or for the benefit of any of the executive
officers or directors of the Company or Parent or any of their respective family members.

          (ll) Parent, each Subsidiary, and to Parent’s knowledge Royal Street, is not now and, after
sale of the Initial Notes as contemplated hereunder and application of the net proceeds of such
sale as described in the Disclosure Package and the Offering Memorandum under the caption “Use of
Proceeds,” will not be, required to register as an “investment company” under the Investment
Company Act of 1940, as amended (the “Investment Company Act”) and is not and will not be an
entity “controlled” by an “investment company” within the meaning of the Investment Company Act.

          (mm) Except as described in the Disclosure Package and the Offering Memorandum, no holder of
any Relevant Security of Parent or any Subsidiary, or to Parent’s knowledge Royal Street, has any
rights to require registration of any Relevant Security by reason of the execution by the Company
or any of the Guarantors of this Agreement or any other Offering Transaction Document to which it
is a party or the consummation by the Company or any of the Guarantors of the transactions
contemplated hereby and thereby, or as part or on account of, or otherwise in connection with the
Offering and any of the other transactions contemplated by the Offering Transaction Documents, and
any such rights so disclosed have been effectively waived by the holders thereof, and any such
waivers remain in full force and effect.

          (nn) None of Parent, any Subsidiary, or any affiliate of the Company (within the meaning of
Rule 144 under the Securities Act) has (i) taken, directly or indirectly, any action which
constitutes or is designed to cause or result in, or which could reasonably be expected to
constitute, cause or result in, the stabilization or manipulation of the price of any security of
Parent or any Subsidiary to facilitate the sale or resale of the Notes or (ii) since the date of
the Preliminary Offering Memorandum (A) sold, bid for, purchased or paid any person any
compensation for soliciting purchases of the Notes or (B) paid or agreed to pay to any person any
compensation for soliciting another to purchase any other securities of Parent or any Subsidiary.

          (oo) None of Parent or any Subsidiary or any of their respective affiliates (as defined in
Rule 501(b) of Regulation D under the Securities Act) or representatives directly, or through any
agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of
any “security” (as defined in the Securities Act) which is or could be integrated with the sale of
the Notes in a manner that would require the registration under the Securities Act of the Notes or
(ii) engaged in any form of general solicitation or general advertising (as those terms are used
in Regulation D under the Securities Act) in connection with the offer and sale of

14

 

the Securities or in connection with Exempt Resales of the Securities, or in any manner involving
a public offering within the meaning of Section 4(2) of the Securities Act. Assuming the accuracy
of the Initial Purchasers’ representations and warranties set forth in Section 3 hereof, neither
(i) the offer and sale of the Initial Notes and the Guarantees to the Initial Purchasers in the
manner contemplated by this Agreement, the Disclosure Package and the Offering Memorandum nor (ii)
the Exempt Resales requires registration under the Securities Act and prior to the effectiveness
of any Registration Statement, the Indenture does not require qualification under the Trust
Indenture Act. No securities of the same class as the Notes have been issued and sold by Parent or
any Subsidiary within the six-month period immediately prior to the date hereof.

          (pp) The financial information and statements, including the notes thereto, and the supporting
schedules included in the Disclosure Package and the Offering Memorandum present fairly the
financial position as of the dates indicated and the cash flows and results of operations for the
periods specified of Parent and its consolidated subsidiaries in all material respects; except as
otherwise stated in the Disclosure Package and the Offering Memorandum, said financial statements
have been prepared in conformity with U.S. GAAP applied on a consistent basis throughout the
periods involved in all material respects; and the supporting schedules included in the Disclosure
Package and the Offering Memorandum present fairly the information required to be stated therein in
all material respects. The other financial and statistical information included in the Disclosure
Package and the Offering Memorandum derived from the historical, pro forma and as adjusted
financial information and statements, present fairly the information included therein in all
material respects and have been prepared on a basis consistent with that of the financial
statements, historical, pro forma and as adjusted financial information and statements, that are
included in the Disclosure Package and the Offering Memorandum and the books and records of the
respective entities presented therein and, to the extent such information is a range, projection or
estimate, is based on the good faith belief and estimates of the management of Parent.

          (qq) Deloitte & Touche LLP, who have certified or will certify the financial statements and
supporting schedules and information of Parent and its subsidiaries included or to be included as
part of the Disclosure Package and the Offering Memorandum for the fiscal years ended December 31,
2004 and 2005, is an independent registered public accounting firm as required by the Securities
Act and the Exchange Act.

          (rr) PricewaterhouseCoopers LLP, who have certified or will certify the financial statements
and supporting schedules and information of Parent and its subsidiaries included or to be included
as part of the Disclosure Package and the Offering Memorandum for the fiscal years ended December
31, 2002 and 2003, was, at the time of such certification, an independent registered public
accounting firm as required by the Securities Act and the Exchange Act.

          (ss) The statistical, industry-related and market-related data included in the Disclosure
Package and the Offering Memorandum are based on or derived from sources which the Company and the
Guarantors reasonably and in good faith believe are reliable and accurate in all material
respects, and such data agree with the sources from which they are derived in all material
respects.

15

 

          (tt) Each of (i) the Preliminary Offering Memorandum as of its date, (ii) the Disclosure
Package as of the Applicable Time, (iii) the Offering Memorandum as of its date and as of the
Closing Date and (iv) each amendment or supplement to any of the documents referenced in (i), (ii)
or (iii), in each case, as of its date, contains the information specified in, and meets the
requirements of, Rule 144A(d)(4) under the Securities Act.

          (uu) Assuming the accuracy of the representations of the Initial Purchasers contained in this
Agreement, the sale of the Initial Notes pursuant to Regulation S is not part of a plan or scheme
to evade the registration provisions of the Securities Act.

          (vv) None of the execution, delivery and performance of this Agreement, the issuance and sale
of the Securities, the application of the proceeds from the issuance and sale of the Securities and
the consummation of the transactions contemplated thereby as set forth in the Disclosure Package
and the Offering Memorandum, will violate Regulations T, U or X promulgated by the Board of
Governors of the Federal Reserve System or analogous foreign laws and regulations, in each case as
in effect, or as the same may hereafter be in effect, on the Closing Date (the “Regulations”) and
neither Parent nor any Subsidiaries nor any agent thereof acting on the behalf of any of them has
taken, and none of them will take, any action that might cause this Agreement or the issuance or
sale of the Notes and the Guarantees to violate the Regulations.

          (ww) Neither the Company nor any Guarantor is, nor will any of them be, after giving effect
to the execution, delivery and performance of the Offering Transaction Documents and the
consummation of the transactions contemplated thereby, (i) left with unreasonably small capital
with which to carry on their respective businesses as proposed to be conducted, (ii) unable to pay
their debts (contingent or otherwise) as they mature or (iii) insolvent. The fair value and
present fair saleable value of the assets of the Company and each Guarantor exceeds the amount
that will be required to be paid on or in respect of its existing debts and other liabilities
(including contingent liabilities) as they become absolute and matured.

          (xx) Except pursuant to this Agreement, there are no contracts, agreements or understandings
between or among Parent and the Subsidiaries, and any other person that would give rise to a valid
claim against Parent or any Subsidiary or the Initial Purchasers for a brokerage commission,
finder’s fee or like payment in connection with the issuance, purchase and sale of the Notes and
the Guarantees.

          (yy) Except as described in the Disclosure Package and the Offering Memorandum, none of
Parent or any of the Subsidiaries is in default under any of the Offering Transaction Documents or
any of the contracts described in the Disclosure Package and the Offering Memorandum, has received
a notice or claim of any such default or has knowledge of any breach of such contracts by the
other party or parties thereto, except such defaults or breaches as would not, individually or in
the aggregate, have a Material Adverse Effect.

          (zz) The New Credit Agreement has been duly and validly authorized by the Company and each
Guarantor and, when duly executed and delivered by the Company and each Guarantor (assuming the
due authorization, execution and delivery by the other parties thereto), will constitute a valid
and legally binding obligation of the Company and each Guarantor,

16

 

enforceable against each of them in accordance with its terms, except that the enforcement thereof
may be limited by the Enforceability Exceptions.

          (aaa) Neither Parent nor any Subsidiary has distributed or, prior to the later to occur of (i)
the Closing Date and (ii) completion of the distribution of the Initial Notes, will distribute any
material in connection with the offering and sale of the Initial Notes other than the Disclosure
Package the Offering Memorandum or other material, if any, not prohibited by the Securities Act and
the Financial Services and Markets Act 2000 of the United Kingdom
(“FSMA”) (or regulations
promulgated under the Securities Act or the FMSA) and approved by the Initial Purchasers, such
approval not to be unreasonably withheld or delayed.

          (bbb) The Company, the Guarantors and their respective affiliates and all persons acting on
their behalf (other than the Initial Purchasers, as to whom the Company and the Guarantors make no
representation) have not engaged and will not engage in any directed selling efforts, within the
meaning of Regulation S, with respect to the Initial Notes, and have complied with and will comply
with the offering restrictions requirements of Regulation S in connection with the offering of the
Initial Notes outside the United States and, in connection therewith, the Disclosure Package and
the Offering Memorandum will contain the disclosure required by Rule 902(g)(2).

          (ccc) The Initial Notes sold in reliance on Regulation S will be represented upon issuance by
a temporary global security that may not be exchanged for definitive securities until the
expiration of the 40-day distribution compliance period referred to in Rule 903(c)(3) of the
Securities Act and only upon certification of beneficial ownership of such Initial Notes by
non-U.S. persons or U.S. persons who purchased such Initial Notes in transactions that were exempt
from the registration requirements of the Securities Act.

          Any certificate signed by or on behalf of the Company or any Guarantor and delivered to the
Initial Purchasers or to counsel for the Initial Purchasers pursuant to this Agreement shall be
deemed to be a representation and warranty by the Company or such Guarantor, as the case may be,
to the Initial Purchasers as to the matters covered thereby.

     Each of the Company and the Guarantors acknowledge that the Initial Purchasers and, for
purposes of the opinions to be delivered to the Initial Purchasers pursuant to Section 10 hereof,
counsel for the Company and the Guarantors and counsel for the Initial Purchasers, will rely upon
the accuracy and truth of the foregoing representations and hereby consent to such reliance.

     3. Representations and Warranties of the Initial Purchasers. Each of the Initial
Purchasers, severally and not jointly, represents, warrants and covenants to the Company and the
Guarantors and agrees that:

          (a) Such Initial Purchaser is a QIB and an “accredited investor” (as defined in Rule
501(a)(l), (2), (3) or (7) under the Securities Act), with such knowledge and experience in
financial and business matters as are necessary in order to evaluate the merits and risks of an
investment in the Initial Notes.

          (b) Such Initial Purchaser (i) is not acquiring the Initial Notes with a view to any
distribution thereof that would violate the Securities Act or the securities laws of any state of

17

 

the United States or any other applicable jurisdiction and (ii) will be reoffering and reselling
the Initial Notes only to QIBs in reliance on the exemption from the registration requirements of
the Securities Act provided by Rule 144A and in offshore transactions in reliance upon Regulation
S under the Securities Act.

          (c) No form of general solicitation or general advertising (within the meaning of Regulation D
under the Securities Act) has been or will be used by such Initial Purchaser or any of its
representatives in connection with the offer and sale of any of the Initial Notes, including, but
not limited to, articles, notices or other communications published in any newspaper, magazine, or
similar medium or broadcast over television or radio, or any seminar or meeting whose attendees
have been invited by any general solicitation or general advertising.

          (d) Such Initial Purchaser agrees that, in connection with the Exempt Resales, it will solicit
offers to buy the Initial Notes only from, and will offer to sell the Initial Notes only to,
Eligible Purchasers. Such Initial Purchaser further (i) agrees that it will offer to sell the
Initial Notes only to, and will solicit offers to buy the Initial Notes only from (A) Eligible
Purchasers that the Initial Purchaser reasonably believes are QIBs, and (B) Reg S Investors,
(ii) acknowledges and agrees that, in the case of such QIBs and such Reg S Investors, that such
Initial Notes will not have been registered under the Securities Act and may be resold, pledged or
otherwise transferred only (A)(1) to a person whom the seller reasonably believes is a QIB
purchasing for its own account or for the account of a QIB for which such person is acting as a
fiduciary or agent, in a transaction meeting the requirements of Rule 144A, (2) in an offshore
transaction (as defined in Rule 902 under the Securities Act) meeting the requirements of Rule 904
under the Securities Act, (3) in a transaction meeting the requirements of Rule 144, or (4) in
accordance with another exemption from the registration requirements of the Securities Act (and
based upon an opinion of counsel, if the Company and the Guarantors so request), (B) to Parent or
any Subsidiary or (C) pursuant to an effective registration statement under the Securities Act and,
in each case, in accordance with any applicable securities laws of any state of the United States
or any other applicable jurisdiction and (iii) acknowledges that it will, and each subsequent
holder is required to, notify any purchaser of the security evidenced thereby of the resale
restrictions set forth in (ii) above.

          (e) Such Initial Purchaser and its affiliates or any person acting on its or their behalf has
not engaged or will not engage in any directed selling efforts within the meaning of Regulation S
with respect to the Initial Notes or the Guarantees thereof.

          (f) The Initial Notes offered and sold by such Initial Purchaser pursuant hereto in reliance
on Regulation S have been and will be offered and sold only in offshore transactions.

          (g) The sale of Initial Notes offered and sold by such Initial Purchaser pursuant hereto in
reliance on Regulation S is not part of a plan or scheme to evade the registration provisions of
the Securities Act.

          (h) Such Initial Purchaser has not distributed nor, prior to the later to occur of (i) the
Closing Date and (ii) completion of the distribution of the Initial Notes, will distribute any
material in connection with the offering and sale of the Initial Notes other than the (w)

18

 

Disclosure Package, (x) the Offering Memorandum, (y) one or more term sheets relating to the
Securities containing customary information and conveyed to purchasers of securities or (z) other
material, if any, not prohibited by the Securities Act and the FSMA (or regulations promulgated
under the Securities Act or the FMSA), which material shall have been reviewed an approved by the
Company.

          (i) Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell
the Initial Notes in the United States or to, or for the benefit or account of, a U.S. Person
(other than a distributor), in each case, as defined in Rule 902 under the Securities Act (i) as
part of its distribution at any time and (ii) otherwise until 40 days after the later of the
commencement of the offering of the Initial Notes pursuant hereto and the Closing Date, other than
in accordance with Regulation S of the Securities Act or another exemption from the registration
requirements of the Securities Act. Such Initial Purchaser agrees that, during such 40-day
distribution compliance period, it will not cause any advertisement with respect to the Initial
Notes (including any “tombstone” advertisement) to be published in any newspaper or periodical or
posted in any public place and will not issue any circular relating to the Initial Notes, except
such advertisements as permitted by and include the statements required by Regulation S.

          (j) Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Initial Notes
by it to any distributor, dealer or person receiving a selling concession, fee or other
remuneration during the 40-day distribution compliance period referred to in Rule 903(c)(3) under
the Securities Act, it will send to such distributor, dealer or person receiving a selling
concession, fee or other remuneration a confirmation or notice to substantially the following
effect:

“The Initial Notes covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities
Act”), and may not be offered
and sold within the United States or to, or for the account or benefit of, U.S.
persons (i) as part of your distribution at any time or (ii) otherwise until 40
days after the later of the commencement of the Offering and the Closing Date,
except in either case in accordance with Regulation S under the Securities Act (or
Rule 144A or to Accredited Institutions in transactions that are exempt from the
registration requirements of the Securities Act), and in connection with any
subsequent sale by you of the Initial Notes covered hereby in reliance on
Regulation S during the period referred to above to any distributor, dealer or
person receiving a selling concession, fee or other remuneration, you must deliver
a notice to substantially the foregoing effect. Terms used above have the meanings
assigned to them in Regulation S.”

          (k) Such Initial Purchaser agrees that the Initial Notes offered and sold in reliance on
Regulation S will be represented upon issuance by a global security that may not be exchanged for
definitive securities until the expiration of the 40-day distribution compliance period referred
to in Rule 903(c)(3) of the Securities Act and only upon certification of beneficial ownership of
such Initial Notes by non-U.S. persons or U.S. persons who purchased such Initial Notes in
transactions that were exempt from the registration requirements of the Securities Act.

19

 

          The Initial Purchasers acknowledge that the Company and the Guarantors and, for
purposes of the opinions to be delivered to the Initial Purchasers pursuant to Section 10 hereof,
counsel for the Company and the Guarantors and counsel for the Initial Purchasers will rely upon
the accuracy and truth of the foregoing representations and hereby consent to such reliance.

     4. Purchase, Sale and Delivery.

          (a) On the basis of the representations, warranties, covenants and agreements contained in
this Agreement, and subject to its terms and conditions, the Company agrees to issue and sell to
the Initial Purchasers, and each Initial Purchaser agrees, severally and not jointly, to purchase
from the Company, the principal amount of Initial Notes set forth opposite the name of such Initial
Purchaser on Exhibit C. In the event that any Initial Purchaser fails to purchase all of
its portion of the Initial Notes, the remaining Initial Purchasers shall be subject to the
obligations set forth in Section 13(c) hereof. The purchase price for the Initial Notes will be
$980 per $1,000 principal amount of Initial Notes.

          (b) On the Closing Date, the Company shall deliver to the Initial Purchasers, in such
denomination or denominations and registered in such name or names as the Initial Purchasers
requests upon notice to the Company at least 48 hours prior to the Closing Date, one or more
Initial Notes in definitive global form, registered in the name of Cede & Co., as nominee of The
Depository Trust Company (“DTC”), having an aggregate amount corresponding to the aggregate
principal amount of the Initial Notes sold pursuant to Exempt Resales
to QIBs (the “Global Note”)
and (ii) if any Exempt Resales are made in reliance on Regulation S, one or more Senior Notes in
definitive form, registered in the name of Cede & Co., as nominee of DTC, having an aggregate
amount corresponding to the aggregate amount of the Senior Notes, if any, sold pursuant to Exempt
Resales in offshore transactions in reliance on Regulation S (the “Temporary Regulation S Global
Note”), against payment of the purchase price therefor by wire transfer of same-day funds to the
account of the Company, previously designated by it in writing. Such delivery of and payment for
the Initial Notes shall be made at the offices of Latham & Watkins LLP, 885 Third Avenue, Suite
1000, New York, NY 10022 or such other location as may be mutually acceptable. Such delivery and
payment shall be made at 9:00 a.m., New York City time, on November 3, 2006 or at such other time
as shall be agreed upon by the Initial Purchasers and the Company. The time and date of such
delivery and payment are herein called the “Closing Date.” The Global Note and the Temporary
Regulation S Global Note shall be made available to the Initial Purchasers for inspection not later
than 5:00 p.m., New York City time, on the business day immediately preceding the Closing Date.

     5. Offering by Initial Purchasers. The Initial Purchasers propose to make an offering
of the Securities at the price and upon the terms set forth in the Offering Memorandum as soon as
practicable after this Agreement is entered into and as, in the judgment of the Initial Purchasers,
is advisable.

     6. Agreements of the Company and the Guarantors. Each of the Company and the
Guarantors, jointly and severally, covenants and agrees with the Initial Purchasers that:

          (a) The Company and the Guarantors shall advise the Initial Purchasers promptly and, if
requested by the Initial Purchasers, confirm such advice in writing, upon the

20

 

Company or any Guarantor becoming aware (i) of the issuance by any state securities commission or
other regulatory authority of any stop order or order suspending the qualification or exemption
from qualification of any Notes or the related Guarantees for offering or sale in any jurisdiction,
or the initiation of any proceeding for such purpose by any state securities commission or other
regulatory authority and (ii) of the happening of any event that makes any statement of a material
fact made in the Disclosure Package or the Offering Memorandum untrue or that requires the making
of any additions to or changes in the Disclosure Package or the Offering Memorandum in order to
make the Disclosure Package or the Offering Memorandum not misleading in the light of the
circumstances existing at the time it is delivered to an Eligible Purchaser. The Company and the
Guarantors shall use their respective commercially reasonable efforts to prevent the issuance of
any stop order or order suspending the qualification or exemption from qualification of any Notes
or the related Guarantees under any state securities or blue sky laws and, if at any time any state
securities commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of any Notes or the related Guarantees under any
state securities or blue sky laws, the Company and the Guarantors shall use their respective
commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest
possible time.

          (b) The Company and the Guarantors shall, without charge, during the period referred to in
paragraph (c) below, provide to the Initial Purchasers and to counsel to the Initial Purchasers,
and to those persons identified by the Initial Purchasers to the Company as many copies of the
Preliminary Offering Memorandum and the Offering Memorandum and any amendments or supplements
thereto, as the Initial Purchasers may reasonably request. The Company and the Guarantors consent
to the use of the Preliminary Offering Memorandum and the Offering Memorandum, and any amendments
and supplements thereto required pursuant hereto, by the Initial Purchasers in connection with
Exempt Resales. The Initial Purchasers may not use any written materials other than the Preliminary
Offering Memorandum, the Offering Memorandum, the Free Writing Offering Document and one or more
term sheets relating to the Securities containing customary information and conveyed to purchasers
of Securities, unless such material would not violate applicable laws.

          (c) Neither the Company nor any Guarantor will amend or supplement the Preliminary Offering
Memorandum or the Offering Memorandum or any amendment or supplement thereto during such period as,
in the opinion of counsel for the Initial Purchasers, the Preliminary Offering Memorandum or the
Offering Memorandum is required by law to be delivered in connection with Exempt Resales and in
connection with market-making activities of the Initial Purchasers for so long as any Initial Notes
are outstanding unless the Initial Purchasers shall previously have been advised thereof and
furnished a copy for a reasonable period of time prior to the proposed amendment or supplement and
as to which the Initial Purchasers shall not have given its consent. The Company and the Guarantors
shall promptly, upon the request of the Initial Purchasers or counsel to the Initial Purchasers,
make any amendment or supplement to the Preliminary Offering Memorandum or the Offering Memorandum
that may be necessary or advisable in connection with such Exempt Resales or such market making
activities.

          (d) If, during the period referred to in 6(c) above, any event shall occur as a result of
which, it is necessary or advisable, in the opinion of counsel for the Initial Purchasers, to amend
or supplement the Preliminary Offering Memorandum or the Offering Memorandum in

21

 

order to make such Preliminary Offering Memorandum or Offering Memorandum not materially
misleading in the light of the circumstances existing at the time it is delivered to an Eligible
Purchaser, or if for any other reason it shall be necessary or advisable to amend or supplement
the Preliminary Offering Memorandum or the Offering Memorandum to comply with applicable laws,
rules or regulations, the Company and the Guarantors shall (subject to Section 6(c) hereof)
forthwith amend or supplement such Preliminary Offering Memorandum or Offering Memorandum at its
own expense so that, as so amended or supplemented, such Preliminary Offering Memorandum or
Offering Memorandum will not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein not misleading or so that such
Preliminary Offering Memorandum or Offering Memorandum will comply with all applicable laws, rules
or regulations. The Company and the Guarantors shall supply any amendment or supplemented Offering
Memorandum to the Initial Purchasers in such quantities as the Initial Purchasers may reasonably
request.

          (e) The Company and the Guarantors shall reasonably cooperate with the Initial Purchasers and
counsel for the Initial Purchasers in connection with the qualification or registration of the
Initial Notes and the Guarantees thereof for offering and sale under the securities or blue sky
laws of such jurisdictions as the Initial Purchasers may designate and shall continue such
qualifications in effect for as long as may be necessary to complete the Exempt Resales, but in no
event longer than 365 days from the Closing Date; provided, however, that in connection therewith
neither the Company nor any Guarantor shall be required to qualify as a foreign corporation where
it is not now so qualified or to execute a general consent to service of process in any
jurisdiction or to take any other action that would subject it to general service of process or to
taxation in respect of doing business in any jurisdiction in which it is not otherwise subject, in
each case, other than as to matters and transactions relating to the Preliminary Offering
Memorandum, the Offering Memorandum or Exempt Resales.

          (f) The Company shall apply the net proceeds from the sale of the Initial Notes in the manner
set forth under “Use of Proceeds” in the Disclosure Package and the Offering Memorandum.

          (g) (intentionally omitted).

          (h) None of the Company, the Guarantors or any of their respective “affiliates” (as defined
in Rule 144 under the Securities Act) will sell, offer for sale, solicit offers to buy or
otherwise negotiate in respect of any “security” (as defined in the Securities Act) that could be
integrated with the sale of the Initial Notes in a manner that would require the registration
under the Securities Act of the sale to the Initial Purchasers or the Eligible Purchasers of the
Initial Notes or to take any other action that would result in the Exempt Resales not being exempt
from registration under the Securities Act.

          (i) For so long as any of the Notes remain outstanding and are “restricted securities” within
the meaning of Rule 144(a)(3) under the Securities Act and are not able to be sold in their
entirety under Rule 144 under the Securities Act (or any successor provision), for the benefit of
holders from time to time of Initial Notes, the Company will furnish at its expense, upon request,
to any holder or beneficial owner of Initial Notes and prospective purchasers of the Initial
Notes, information (the “Additional Issuer Information”) specified in Rule 144A(d)(4)

22

 

under the Securities Act, unless the Company and the Guarantors are then subject to Section 13 or
15(d) of the Exchange Act.

          (j) The Company and the Guarantors shall use all commercially reasonable efforts to (i)
permit the Notes to be included for quotation on The PORTALSM Market and (ii) permit
the Notes to be eligible for clearance and settlement through DTC.

          (k) During the period that they are not subject to the reporting requirements of the Exchange
Act, but in no event longer than two years from the Closing Date, the Company and the Guarantors
shall deliver without charge to the Initial Purchasers (i) as soon as available, copies of each
report and other communication (financial or otherwise) of the Company mailed to the Trustee of the
holders of the Notes, stockholders or any national securities exchange on which any class of
securities of the Company or any Guarantor may be listed (including without limitation, press
releases) other than materials filed with the Commission or posted to intralinks.com and (ii) from
time to time such other information concerning Parent and the Subsidiaries as the Initial
Purchasers may reasonably request.

          (l) The Company and the Guarantors shall not take, directly or indirectly, any action which
constitutes or is designed to cause or result in, or which could reasonably be expected to
constitute, cause or result in, the stabilization or manipulation of the price of any security of
the Company or any Guarantor to facilitate the sale or resale of the Notes, or take any action
prohibited by Regulation M under the Exchange Act, in connection with the distribution of the
Securities and the Exchange Securities contemplated hereby. Except as permitted by the Securities
Act, neither the Company nor any Guarantor will distribute any (i) preliminary offering
memorandum, including, without limitation, the Preliminary Offering Memorandum, (ii) offering
memorandum, including, without limitation, the Offering Memorandum or (iii) other offering
material in connection with the offering and sale of the Securities.

          (m) For so long as the Notes constitute “restricted” securities within the meaning of Rule
144(a)(3) under the Securities Act, the Company and the Guarantors shall not, and shall not permit
any Subsidiary to, solicit any offer to buy or offer to sell the Notes by means of any form of
general solicitation or general advertising (as those terms are used in Regulation D under the
Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of
the Securities Act.

          (n) During the period from the Closing Date until two years after the Closing Date, without
the prior written consent of the Initial Purchasers, the Company and the Guarantors shall not, and
shall not permit any of their respective “affiliates” (as defined in Rule 144 under the Securities
Act) to, resell any of the Securities or the Exchange Securities that constitute “restricted
securities” under Rule 144 that have been reacquired by any of them.

          (o) Prior to the Closing Date, the Company and the Guarantors shall not, and shall not permit
any of their respective “affiliates” (as defined in Rule 144 under the Securities Act) to issue
any press release or other communications, directly or indirectly, or hold any press conference
with respect to the issuance of the Initial Notes, Parent or any Subsidiary, the properties,
business, results of operations, condition (financial or otherwise), affairs or prospects

23

 

of Parent or any Subsidiary, without the prior consent of the Initial Purchasers, such consent not
to be unreasonably withheld or delayed.

          (p) Without the prior consent of the Initial Purchasers, which consent may not be unreasonably
withheld, the Company and the Guarantors shall not, and shall not permit any of their respective
“affiliates” (as defined in Rule 144 under the Securities Act) to make any offer relating to the
Initial Notes that would constitute a “free writing prospectus” (if the offering of the Notes was
made pursuant to a registered offering under the Securities Act) as defined in Rule 405 under the
Securities Act (a “Free Writing Offering Document”) any such Free Writing Offering Document the use
of which has been consented to by the Initial Purchasers is listed on Schedule III hereto;
if at any time following issuance of a Free Writing Offering Document any event occurred or occurs
as a result of which such Free Writing Offering Document would conflict with the information in the
Preliminary Offering Memorandum or the Offering Memorandum or would include an untrue statement of
a material fact or omit to state any material fact necessary in order to make the statements
therein, in light of the circumstances then prevailing, not misleading, the Company will give
prompt notice thereof to the Initial Purchasers and, if requested by the Initial Purchasers, will
prepare and furnish without charge to the Initial Purchasers a Free Writing Offering Document or
other document which will correct such conflict, statement or omission.

     7. Expenses. Whether or not the transactions contemplated by this Agreement are
consummated or this Agreement becomes effective or is terminated (pursuant to Section 13 hereof or
otherwise), the Company and the Guarantors hereby agree to pay all costs and reasonable expenses
incident to the performance of their obligations hereunder, including the following: (i) the
negotiation, preparation, printing, typing, filing, reproduction, execution and delivery of this
Agreement and of the other Offering Transaction Documents, any amendment or supplement to or
modification of any of the foregoing and any and all other documents furnished pursuant hereto or
thereto or in connection herewith or therewith and with the Exempt Resales; (ii) the preparation,
printing or reproduction of each Preliminary Offering Memorandum, the Offering Memorandum
(including, without limitation, financial statements) and all amendments and supplements to any of
them; (iii) the issuance, transfer and delivery of the Initial Notes and the Guarantees endorsed
thereon to the Initial Purchasers; (iv) the registration or qualification of the Notes and the
related Guarantees for offer and sale under the securities or blue sky laws of the several states
(including, without limitation, filing fees, the cost of printing and mailing a preliminary and
final blue sky memorandum, and the reasonable fees and disbursements of outside counsel to the
Initial Purchasers relating to such registration or qualification); (v) the delivery (including
postage, air freight charges and charges for counting and packaging) of such copies of each
Preliminary Offering Memorandum, the Offering Memorandum and all amendments or supplements to any
of them as may be requested for use in connection with the offering and sale of the Notes and the
Exempt Resales; (vi) the preparation, printing, authentication, issuance and delivery of
certificates for the Notes, including any stamp taxes in connection with the original issuance and
sale of the Notes and Trustee’s fees; (vii) the fees, disbursements and expenses of the Company’s
and the Guarantors’ counsel (including local and special counsel, if any) and accountants; (viii)
the reproduction and delivery of this Agreement and the other Offering Documents, the preliminary
and supplemental blue sky memoranda and all other agreements of documents reproduced and delivered
in connection with the offering of the Notes; (ix) all fees and expenses (including fees and
expenses of counsel) of the Company

24

 

and the Guarantors in connection with the approval of the Notes by DTC for “book-entry” transfer;
(x) any fees charged by investment rating agencies for the rating of the Notes; (xi) the fees and
expenses of the Trustee and its outside counsel; (xii) all expenses incurred in connection with the
performance by the Company and the Guarantors of their other obligations under this Agreement and
the other Offering Transaction Documents; (xiii) the transportation and other “roadshow” expenses
incurred by or on behalf of the Company representatives in connection with presentations to and
related communications with prospective purchasers of the Notes; and (xiv) all expenses and listing
fees incurred by the Company, the Guarantors or the Initial Purchasers in connection with the
application for quotation of the Notes on The PORTALSM Market.

     8. Indemnification.

          (a) The Company and the Guarantors, jointly and severally, agree to indemnify and hold
harmless (i) the Initial Purchasers, (ii) each person, if any, who controls the Initial Purchasers
within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act and
(iii) the respective officers, directors, partners, employees, representatives and agents of the
Initial Purchasers or any controlling person, from and against any and all losses, liabilities,
claims, damages and expenses whatsoever as incurred (including, but not limited to, reasonable
outside attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or
defending against any investigation or litigation, commenced or threatened, or any claim
whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or
several, to which they or any of them may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or actions in
respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue
statement of a material fact contained in (A) the Disclosure Package, any Free Writing Offering
Document or the Offering Memorandum, or in any supplement thereto or amendment thereof or (B) in
any other materials or information provided to investors by, or with the approval of, the Company
in connection with the Offering, including any road show or investor presentations made to
investors by the Company (whether in person or electronically)
(“Marketing Materials”)or (ii) the
omission or alleged omission to state in the Disclosure Package, any Free Writing Offering Document
or the Offering Memorandum, or in any supplement thereto or amendment thereof, or in any Marketing
Materials, a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading; provided, however,
that neither the Company nor any Guarantor will be liable in any such case to the extent, but only
to the extent, that any such loss, liability, claim, damage or expense arises out of or is based
upon any such untrue statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information relating to the Initial
Purchasers furnished to the Company and the Guarantors by or on behalf of the Initial Purchasers
expressly for use therein. The parties acknowledge and agree that such information provided by or
on behalf of the Initial Purchasers consists solely of the material identified in Section 11
hereof. This indemnity agreement will be in addition to any liability that the Company and the
Guarantors may otherwise have, including, but not limited to, under this Agreement.

          (b) Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless
(i) the Company and the Guarantors, (ii) each person, if
any, who controls the

25

 

Company or any of the Guarantors within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act and (iii) the officers, directors, partners, employees, representatives
and agents of the Company and the Guarantors, against any and all losses, liabilities, claims,
damages and expenses whatsoever as incurred (including but not limited to outside attorneys’ fees
and any and all expenses whatsoever incurred in investigating, preparing or defending against any
investigation or litigation, commenced or threatened, or any claim whatsoever and any and all
amounts paid in settlement of any claim or litigation), joint or several, to which they or any of
them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such
losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of a material fact contained in the
Disclosure Package, any Free Writing Offering Document or the Offering Memorandum, or in any
amendment thereof or supplement thereto, in any Marketing Materials, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances in which they
were made, not misleading, in each case to the extent, but only to the extent, that any such loss,
liability, claim, damage or expense arises out of or is based upon any untrue statement or alleged
untrue statement or omission or alleged omission made therein in reliance upon and in conformity
with written information relating to such Initial Purchaser furnished to the Company and the
Guarantors by or on behalf of such Initial Purchaser expressly for use therein. The parties
acknowledge and agree that such information provided by or on behalf of such Initial Purchaser
consists solely of the material identified in Section 11 hereof. This indemnity will be in addition
to any liability that such Initial Purchaser may otherwise have, including under this Agreement.

          (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of
notice of any claims or the commencement of any action, such indemnified party shall, if a claim
in respect thereof is to be made against the indemnifying party under such subsection, notify each
party against whom indemnification is to be sought in writing of the claim or the commencement
thereof (but the failure so to notify an indemnifying party shall not relieve the indemnifying
party from any liability that the indemnifying party may have under this Section 8 to the extent
that it is not materially prejudiced as a result thereof or otherwise has notice of any such
action, and in any event shall not relieve it from any liability that such indemnifying party may
otherwise have on account of the indemnity agreement hereunder). In case any such claim or action
is brought against any indemnified party, and it notifies an indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate, at its own expense
in the defense of such action, and to the extent it may elect by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such indemnified party, to
assume the defense thereof with counsel reasonably satisfactory to such indemnified party.
Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its
or their own counsel in any such case, but the fees and expenses of such counsel shall be at the
expense of such indemnified party or parties unless (i) the employment of such counsel shall have
been authorized in writing by the indemnifying party to be charged in connection with the defense
of such action, (ii) the indemnifying parties shall not have employed counsel to take charge of
the defense of such action within a reasonable time after notice of commencement of the action,
(iii) the indemnifying party does not diligently defend the action after assumption of the defense
or (iv) such indemnified party or parties shall have reasonably concluded, based on the advice of
counsel, that there may be defenses available to it or them that are different from or

26

 

additional to those available to one or all of the indemnifying parties (in which case the
indemnifying party or parties shall not have the right to direct the defense of such action on
behalf of the indemnified party or parties), in any of which events such fees and expenses of
counsel shall be borne by the indemnifying parties. No indemnifying party shall, without the prior
written consent of the indemnified parties, effect any settlement or compromise of, or consent to
the entry of judgment with respect to, any pending or threatened claim, investigation, action or
proceeding in respect of which indemnity or contribution may be or could have been sought by an
indemnified party under this Section 8 or Section 9 hereof (whether or not the indemnified party is
an actual or potential party thereto), unless such settlement, compromise or judgment (i) includes
an unconditional release of the indemnified party from all liability arising out of such claim,
investigation, action or proceeding and (ii) does not include a statement as to or an admission of
fault, culpability or any failure to act, by or on behalf of the indemnified party. No indemnifying
party shall be liable for any settlement on its behalf, effectuated without its prior written
consent.

     9. Contribution. In order to provide for contribution in circumstances in which the
indemnification provided for in Section 8 hereof is for any reason held to be unavailable from any
indemnifying party or is insufficient to hold harmless a party indemnified thereunder, the Company
and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, shall
contribute to the aggregate losses, claims, damages, liabilities and expenses of the nature
contemplated by such indemnification provision (including any investigation, legal and other
expenses incurred in connection with, and any amount paid in settlement of, any action, suit or
proceeding or any claims asserted, but after deducting in the case of losses, claims, damages,
liabilities and expenses suffered by the Company or any Guarantor, any contribution received by
the Company and the Guarantors from persons, other than the Initial Purchasers, who may also be
liable for contribution, including persons who control the Company or any of the Guarantors within
the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) as incurred
to which the Company, the Guarantors and the Initial Purchasers may be subject, in such proportion
as is appropriate to reflect the relative benefits received by the Company and the Guarantors, on
the one hand, and the Initial Purchasers, on the other hand, from the Offering or, if such
allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to above but also the relative fault of the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, in connection with the
statements or omissions that resulted in such losses, claims, damages, liabilities or expenses, as
well as any other relevant equitable considerations. The relative benefits received by the Company
and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand, shall be
deemed to be in the same proportion as (x) the total proceeds from the Offering (net of discounts
and commissions but before deducting expenses) received by the Company and the Guarantors bear to
(y) the discounts and commissions received by the Initial Purchasers. The relative fault of the
Company and the Guarantors, on the one hand, and of the Initial Purchasers, on the other hand,
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Company, any Guarantor or the Initial Purchasers and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company, the Guarantors and the Initial Purchasers agree that it would
not be just and equitable if contribution pursuant to this Section 9 were determined by pro rata
allocation (even if the Initial Purchasers were treated as one entity for

27

 

such purpose) or by any other method of allocation that does not take into account the equitable
considerations referred to above in this Section 9. Notwithstanding the provisions of this Section
9, (i) in no case shall the Initial Purchasers be required to contribute any amount in excess of
the amount by which the discounts and commissions applicable to the Initial Notes purchased by the
Initial Purchasers pursuant to this Agreement exceeds the amount of damages that the Initial
Purchasers has otherwise been required to pay by reason of any untrue or alleged untrue statement
or omission or alleged omission and (ii) no person guilty of fraudulent misrepresentation (within
the meaning of Section 1l(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 9,
(A)(l) each person, if any, who controls the Initial Purchasers within the meaning of Section 15 of
the Securities Act or Section 20(a) of the Exchange Act and (2) the respective officers, directors,
partners, employees, representatives and agents of the Initial Purchasers or any controlling person
shall have the same rights to contribution as the Initial Purchasers and (B)(l) each person, if
any, who controls the Company or any Guarantor within the meaning of Section 15 of the Securities
Act or Section 20(a) of the Exchange Act and (2) the respective officers, directors, partners,
employees, representatives and agents of the Company and the Guarantors shall have the same rights
to contribution as the Company and the Guarantors, subject in each case to clauses (i) and (ii) of
this Section 9. Any party entitled to contribution will, promptly after receipt of notice of
commencement of any action, suit or proceeding against such party in respect of which a claim for
contribution may be made against another party or parties under this Section 9, notify such party
or parties from whom contribution may be sought, but the failure to so notify such party or parties
shall not relieve the party or parties from whom contribution may be sought from any obligation it
or they may have under this Section 9 or otherwise. No party shall be liable for contribution with
respect to any action or claim settled without its prior written consent, provided that such
written consent was not unreasonably withheld, conditioned or delayed. The obligations of the
Initial Purchasers to contribute pursuant to this Section 9 are several in proportion to the
respective principal amount of Initial Notes to be purchased by each of the Initial Purchasers
hereunder and not joint.

     10. Conditions of Initial Purchasers’ Obligations. The obligations of the Initial
Purchasers to purchase and pay for the Initial Notes, as provided herein, are subject to the
absence from any certificates, opinions, written statements or letters furnished to the Initial
Purchasers pursuant to this Section 10 of any material misstatement or omissions and to the
satisfaction of the following additional conditions unless waived in writing by the Initial
Purchasers:

          (a) All of the representations and warranties of the Company and the Guarantors contained in
this Agreement on the date hereof and on the Closing Date with the same force and effect as if made
on and as of the date hereof and the Closing Date, respectively. The Company and each Guarantor
shall have performed or complied with all of the agreements and satisfied all conditions on their
respective parts to be performed, complied with or satisfied hereunder at or prior to the Closing
Date.

          (b) The Offering Memorandum shall have been printed and copies distributed to the Initial
Purchasers not later than 10:00 a.m., New York City time, on the day that is two business days
following the date of this Agreement or at such later date and time as to which the Initial
Purchasers may agree.

28

 

          (c) No stop order suspending the qualification or exemption from qualification
of the Initial Notes or the Guarantees thereof in any jurisdiction referred to in Section 6(e)
hereof shall have been issued and no proceeding for that purpose shall have been commenced or shall
be pending or threatened.

          (d) None of the issuance and sale of the Securities pursuant to this Agreement or any of the
transactions contemplated by any of the other Offering Transaction Documents shall be enjoined
(temporarily or permanently) and no restraining order or other injunctive order shall have been
issued; and there shall not have been any legal action, statute, order, rule, regulation, decree or
other administrative proceeding enacted, instituted, adopted, issued or threatened against the
Company, the Guarantors, or against the Initial Purchasers relating to the issuance of the
Securities or the Initial Purchasers’ activities in connection therewith or any other transactions
contemplated by this Agreement or the Offering Memorandum, or the other Offering Transaction
Documents. No stop order shall have been issued preventing the use of the Preliminary Offering
Memorandum, any Free Writing Offering Document, the Offering Memorandum, or any amendment or
supplement thereto.

          (e) The Initial Purchasers shall have received certificates, dated the Closing Date, signed by
the chief executive officer and the chief financial officer of the Company and each Guarantor (in
their respective capacities as such), in form and substance reasonably satisfactory to the Initial
Purchasers, confirming, as of the Closing Date, the matters set forth in paragraphs (a), (b) and
(c) of this Section 10 and that, as of the Closing Date, the obligations of the Company and such
Guarantor, as the case may be, to be performed hereunder on or prior thereto have been duly
performed.

          (f) The Initial Purchasers shall have received on the Closing Date:

     (i) an opinion, dated the Closing Date, in form and substance reasonably
satisfactory to the Initial Purchasers and Latham & Watkins LLP, counsel for the
Initial Purchasers, of Baker Botts, LLP, counsel for the Company and the
Guarantors, to the effect set forth in Exhibit D hereto.

     (ii) an opinion, dated the Closing Date, in form and substance reasonably
satisfactory to the Initial Purchasers and Latham & Watkins LLP, counsel for the
Initial Purchasers, of Paul, Hastings, Janofsky & Walker LLP, counsel for the
Company and the Guarantors, to the effect set forth in Exhibit E hereto.

     (ii) an opinion, dated the Closing Date, in form and substance reasonably
satisfactory to the Initial Purchasers and Latham & Watkins LLP, counsel for the
Initial Purchasers, of Patton Boggs, LLP, counsel for Royal Street, to the effect
set forth in Exhibit F hereto.

     (iv) an opinion, dated the Closing Date, in form and substance reasonably
satisfactory to the Initial Purchasers, of Latham & Watkins LLP, counsel for the
Initial Purchasers, relating to this Agreement and such other related matters as
the Initial Purchasers may require.

29

 

          (g) Each of Deloitte & Touche LLP and PricewaterhouseCoopers LLP, each an independent
registered public accounting firm for the Company and the Guarantors, shall deliver to each Initial
Purchaser three customary “comfort” letters addressed to the Initial Purchasers and in form and
substance reasonably satisfactory to the Initial Purchasers and Latham & Watkins LLP, counsel for
the Initial Purchasers, with respect to the financial statements and certain financial information
of Parent and Parent’s subsidiaries contained in the Preliminary Offering Memorandum and the
Offering Memorandum as follows: (i) with respect to the Preliminary Offering Memorandum on the date
of the Offering Memorandum, (ii) with respect to the Offering Memorandum on the date of the
Offering Memorandum and (iii) with respect to the Offering Memorandum on the Closing Date.

          (h) The Initial Purchasers and Latham & Watkins LLP, counsel to the Initial Purchasers, shall
have been furnished with such information, certificates and documents, in addition to those set
forth above, as they may reasonably require for the purpose of enabling them to review or pass upon
the matters referred to in this Section 10 and in order to evidence the accuracy, completeness or
satisfaction in all material respects of any of the representations, warranties or conditions
herein contained.

          (i) The Company and the Guarantors and the Trustee shall have entered into the Indenture and
the Initial Purchasers shall have received counterparts, conformed as executed, thereof and the
Initial Notes and the Guarantees thereof shall have been duly executed and delivered by the
Company and the Guarantors, and the Initial Notes shall have been duly authenticated by the
Trustee.

          (j) The Company, the Guarantors and the Initial Purchasers shall have entered into the
Registration Rights Agreement and the Initial Purchasers shall have received counterparts,
conformed as executed, thereof, and such agreement shall be in full force and effect.

          (k) On or after the date hereof (i) there shall not have occurred any downgrading, suspension
or withdrawal of, nor shall there have been any announcement of any potential or intended
downgrading, suspension or withdrawal of, or of any review (or of any potential or intended
review) for a possible downgrading, or with negative implications, or direction not determined of,
any rating of the Company or any Guarantor or any securities of the Company or any Guarantor
(including, without limitation, the placing of any of the foregoing ratings on credit watch with
negative or developing implications or under review with an uncertain direction) by any
“nationally recognized statistical rating organization” as such term is defined for purposes of
Rule 436(g)(2) under the Securities Act, (ii) there shall not have occurred any change, nor shall
any notice have been given of any potential or intended change, in the outlook for any rating of
the Company or any Guarantor or any securities of the Company or any Guarantor by any such rating
organization and (iii) no such rating organization shall have given notice that it has assigned
(or is considering assigning) a lower rating to the Notes than that on which the Notes were
marketed.

          (l) The Notes shall have been approved for trading on The PORTALSM Market.

30

 

          (m) Each of the Offering Transaction Documents and each other agreement or instrument
executed in connection with the transactions contemplated thereby shall have been executed and
delivered by all the respective parties thereto and shall be in full force and effect, and there
shall have been no material amendments, alterations, modifications or waivers of any provision
thereof since the date of this Agreement.

          (n) All opinions, certificates, letters, schedules, documents or instruments to be delivered
pursuant to this Section 10 by the Company and the Guarantors but not otherwise identified in
subsections (a) through (m) above will be in compliance with the provisions hereof only if they are
reasonably satisfactory in form and substance to the Initial Purchasers and counsel to the Initial
Purchasers. The Company and the Guarantors shall furnish the Initial Purchasers such conformed
copies of such opinions, certificates, letters, schedules, documents and instruments in such
quantities as the Initial Purchasers shall reasonably request.

          (o) The Company and the Guarantors shall have consummated, or shall consummate concurrently
with or immediately following the issuance of the Notes, the Refinancing and the Restructuring
Transactions.

     11. Initial Purchasers’ Information. The Company and the Guarantors acknowledge that
the statements with respect to the offering of the Initial Notes set forth in fourth paragraph and
the fifth sentence of the seventh paragraph under the heading “Plan of Distribution” in the
Preliminary Offering Memorandum and the Offering Memorandum constitute the only written information
relating to the Initial Purchasers furnished to the Company and the Guarantors by or on behalf of
the Initial Purchasers expressly for use in the Preliminary Offering Memorandum, the Disclosure
Package and the Offering Memorandum, for purposes of Sections 2(a), 8(a) and 8(b) hereof.

     12. Survival of Representations and Agreements. The respective representations,
warranties, covenants, agreements, indemnities and other statements of the Company and the
Guarantors, their respective officers and the Initial Purchasers set forth in this Agreement or
made by or on behalf of them, respectively pursuant to this Agreement shall remain operative and in
full force and effect regardless of (i) any investigation made by or on behalf of the Company, the
Guarantors, any of their respective officers of directors, the Initial Purchasers or any
controlling person referred to in Sections 8 and 9 hereof and (ii) delivery of and payment for the
Initial Notes to and by the Initial Purchasers, and shall be binding upon and shall inure to the
benefit of, any successors, assigns, heirs, personal representatives of the Company, the
Guarantors, the Initial Purchasers and the indemnified parties referred to in Section 8 hereof. The
respective representations, agreements, covenants, indemnities and other statements set forth in
Sections 7, 8, 9, 12 and 13(d) shall survive the termination of this Agreement, regardless of any
termination or cancellation of this Agreement.

     13. Effective
Date of Agreement; Termination.

          (a) This Agreement shall become effective upon execution and delivery of a counterpart hereof
by each of the parties hereto.

31

 

          (b) This Agreement may be terminated in the sole discretion of the Initial Purchasers by
notice to the Company from the Initial Purchasers, without liability (other than with respect to
Sections 8 and 9 hereof) on the Initial Purchasers’ part to the Company or any Guarantor in the
event that the Company or any Guarantors have failed, refused or been unable to perform or satisfy
all conditions on their respective parts to be performed or satisfied hereunder on or prior to the
Closing Date, any other condition to the obligations of the Initial Purchasers hereunder as
provided in Section 10 hereof is not fulfilled when and as required or has not been waived, or if:

     (i) in the reasonable judgment of the Initial Purchasers, any material adverse
change shall have occurred since the respective dates as of which information is
given in the Disclosure Package in the financial condition, business, properties,
assets, results of operations or properties of Parent and its subsidiaries, taken
as a whole, other than as set forth in the Disclosure Package and the Offering
Memorandum;

     (ii) any domestic or international event or act or occurrence has materially
disrupted, or in the opinion of the Initial Purchasers will in the immediate future
materially disrupt, the market for the Company’s or any Guarantor’s securities or
for securities in general;

     (iii) trading in securities generally on the New York Stock Exchange shall
have been suspended or made subject to material limitations, or minimum or maximum
prices for trading shall have been fixed, or maximum ranges for prices for
securities shall have been required, on the New York Stock Exchange, or by order of
the Commission or other regulatory body or governmental authority having
jurisdiction;

     (iv) a banking moratorium has been declared by any state or federal authority
or any material disruption in commercial banking or securities settlement or
clearance services shall have occurred;

     (v) (A) there shall have occurred any material outbreak or escalation of
hostilities or acts of terrorism involving the United States or there is a
declaration of a national emergency or war by the United States, or (B) there shall
have been any other calamity or crisis or any change in political, financial or
economic conditions if the effect of any such event in (A) or (B), in the Initial
Purchasers’ judgment, makes it inadvisable or impracticable to proceed with the
offering, sale and delivery of the Securities, on the terms and in the manner
contemplated hereby and in the Disclosure Package and the Offering Memorandum; or

     (vi) any debt securities of the Company or any Guarantor shall have been
downgraded or placed on any “watch list” for possible downgrading by any “nationally
recognized statistical rating organization” as defined for purposes of Rule 436(g)
under the Securities Act.

32

 

          (c) Any notice of termination pursuant to this Section 13 shall be by telephone or facsimile
and, in either case, confirmed in writing by letter.

          (d) If this Agreement shall be terminated pursuant to any of the provisions hereof (other than
pursuant to clauses (ii) through (v) of Section 13(b)), or if the sale of the Initial Notes
provided for herein is not consummated because any condition to the obligations of the Initial
Purchasers set forth herein is not satisfied or because of any refusal, inability or failure on the
part of the Company or any Guarantor to perform any agreement herein or comply with any provision
hereof, the Company and the Guarantors will, subject to demand by the Initial Purchasers, reimburse
the Initial Purchasers for all reasonable and actual out-of-pocket expenses (including the
reasonable fees and expenses of the Initial Purchasers’ outside counsel), incurred by the Initial
Purchasers in connection herewith.

          (e) If on the Closing Date any one or more of the Initial Purchasers shall fail or refuse to
purchase the Initial Notes that it or they have agreed to purchase hereunder on such date and the
aggregate principal amount of the Initial Notes that such defaulting Initial Purchaser or Initial
Purchasers, as the case may be, agreed but failed or refused to purchase is not more than one-tenth
of the aggregate principal amount of the Initial Notes to be purchased on such date by all Initial
Purchasers, each non-defaulting Initial Purchaser shall be obligated severally, in the proportion
that the principal amount of the Initial Notes set forth opposite its name in Exhibit C
bears to the aggregate principal amount of the Initial Notes that all the non-defaulting Initial
Purchasers, as the case may be, have agreed to purchase, or in such other proportion as Bear Steams
may specify, to purchase the Initial Notes which such defaulting Initial Purchaser or Initial
Purchasers, as the case may be, agreed but failed or refused to purchase on such date; provided
that in no event shall the aggregate principal amount of the Initial Notes that any Initial
Purchaser has agreed to purchase pursuant to Section 4 hereof be increased pursuant to this Section
13 by an amount in excess of one-tenth of such principal amount of the Initial Notes without the
written consent of such Initial Purchaser. If on the Closing Date any Initial Purchaser or
Initial Purchasers shall fail or refuse to purchase the Initial Notes and the aggregate principal
amount of the Initial Notes with respect to which such default occurs is more than one-tenth of the
aggregate principal amount of the Initial Notes to be purchased by all Initial Purchasers and
arrangements satisfactory to the Initial Purchasers and the Company for purchase of such Initial
Notes are not made within 48 hours after such default, this Agreement will terminate without
liability on the part of any non-defaulting Initial Purchaser and the Company, except that the
provisions of Sections 8 and 9 hereof shall at all times be effective and shall survive such
termination. In any such case that does not result in termination of this Agreement, either Bear
Stearns or the Company shall have the right to postpone the Closing Date, but in no event for longer
than seven days, in order that the required changes, if any, in the Offering Memorandum or any
other documents or arrangements may be effected. Any action taken under this paragraph shall not
relieve any defaulting Initial Purchaser from liability in respect of any default of any such
Initial Purchaser under this Agreement.

     14. Notices. All communications hereunder shall be in writing and, if sent to the
Initial Purchasers, shall be hand-delivered, mailed by first-class mail, couriered by next-day air
courier or faxed and confirmed in writing to The Initial Purchasers c/o Bear, Stearns & Co. Inc.,
383 Madison Avenue, New York, New York 10179, Attention: High Yield Debt Capital Markets, and with
a copy to Latham & Watkins LLP, 885 Third Avenue, Suite 1000, New York,

33

 

NY 10022, Attention: Marc D. Jaffe, Esq. If sent to the Company and the Guarantors, all
communications hereunder shall be mailed, delivered, couriered or faxed and confirmed in writing
to MetroPCS Wireless, Inc., 8144 Walnut Hill Lane, Suite 800, Dallas, Texas 75231, Attention:
Senior Vice President, General Counsel and Secretary, and with a copy to Baker Botts, LLP, 2001
Ross Avenue, Dallas, Texas 75201, Attention: Andrew M. Baker

     15. Successors. This Agreement shall inure to the benefit of, and shall be binding
upon, the Initial Purchasers, the Company, the Guarantors and their respective successors, legal
representatives and assigns, and nothing expressed or mentioned in this Agreement is intended or
shall be construed to give any other person any legal or equitable right, remedy or claim under or
in respect of, or by virtue of, this Agreement or any provision herein contained; this Agreement
and all conditions and provisions hereof being intended to be and being for the sole and exclusive
benefit of such persons and for the benefit of no other person except that (i) the indemnities of
the Company and the Guarantors contained in Section 8 hereof shall also be for the benefit of the
controlling persons and agents referred to in Sections 8 and 9 hereof and (ii) the indemnities of
the Initial Purchasers contained in Section 8 hereof shall also be for the benefit of the directors
of the Company and the Guarantors, and their respective officers, employees and agents and any
controlling person or persons referred to in Sections 8 and 9 hereof. No purchaser of Initial
Notes from the Initial Purchasers will be deemed a successor, legal representative or assign
because of such purchase.

     16. No
Waiver; Modifications in Writing. No failure or delay on the part of the
Company, any Guarantor or the Initial Purchases in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise of any other right,
power or remedy. The remedies provided for herein are cumulative and are not exclusive of any
remedies that may be available to the Company, any Guarantor or the Initial Purchasers at law or in
equity or otherwise. No waiver of or consent to any departure by the Company, any Guarantor or the
Initial Purchasers from any provision of this Agreement shall be effective unless signed in writing
by the party entitled to the benefit thereof; provided that notice of any such waiver shall
be given to each party hereto as set forth above. Except as otherwise provided herein, no
amendment, modification or termination of any provision of this Agreement shall be effective unless
signed in writing by or on behalf of the Company, each Guarantor and the Initial Purchasers. Any
amendment, supplement or modification of or to any provision of this Agreement, any waiver of any
provision of this Agreement, and any consent to any departure by the Company, the Guarantors or the
Initial Purchasers from the terms of any provision of this Agreement shall be effective only in the
specific instance and for the specific purpose for which made or given. Except where notice is
specifically required by this Agreement, no notice to or demand on the Company or any Guarantor in
any case shall entitle the Company or any Guarantor to any other or further notice or demand in
similar or other circumstances.

     17. Entire Agreement. This Agreement constitutes the entire agreement among the
parties hereto and supersedes all prior and contemporaneous agreements, understandings and
arrangements, oral or written, among the parties hereto with respect to the subject matter hereof.

     18. Applicable Law. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND
THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE

34

 

GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. TIME IS OF THE
ESSENCE IN THIS AGREEMENT.

     19. Contractual Relationship. The Company and the Guarantors hereby acknowledge and
agree that (a) the purchase and sale of the Initial Notes pursuant to this Agreement is an
arm’s-length commercial transaction between the Company and the Guarantors, on the one hand, and
the Initial Purchasers, on the other, (b) each Initial Purchaser is acting solely as a principal
and not as the agent or fiduciary of the Company or the Guarantors with respect to the sale of the
Initial Notes contemplated hereby, (c) each Initial Purchaser has not assumed an advisory or
fiduciary responsibility in favor of the Company or the Guarantors with respect to the sale of the
Initial Notes contemplated hereby (irrespective of whether the Initial Purchasers have advised or
are currently advising the Company or the Guarantors on other matters) and (d) the Company and the
Guarantors have consulted their own legal and financial advisors to the extent they deem
appropriate. The Company and the Guarantors agree that they will not claim that the Initial
Purchasers have rendered advisory services of any nature or respect, or owes a fiduciary or similar
duty, to the Company or the Guarantors in connection with the sale of the Initial Notes
contemplated hereby or the process leading thereto. The Company and the Guarantors and the Initial
Purchasers agree that they are each responsible for making their own independent judgments with
respect to the transactions contemplated by this Agreement or any matters leading up to such
transactions, and that any opinions or views expressed by the Initial Purchasers to the Company or
the Guarantors regarding such transactions, including but not limited to any opinions or views with
respect to the price or market for the Company’s securities, do not constitute advice or
recommendations to the Company or the Guarantors.

     20. Partial
Unenforceability. The invalidity or unenforceability of any Section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other Section, paragraph or provision hereof.

     21. Headings. The headings herein are inserted for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

     22. DTPA Waiver. In consideration of the Initial Purchasers’ agreement to perform the
services described in this Agreement, each of the Company and the Guarantors hereby WAIVES AND
RELEASES all of their respective rights and remedies under the Texas Deceptive Trade
Practices—Consumer Protection Act (hereinafter referred to as the “DTPA”) Subchapter E of Chapter
17 of the Texas Business and Commerce Code, if any, including without limitation, all rights and
remedies resulting from, arising out of or associated with any and all acts or practices of the
Initial Purchasers in connection with the Offering and the use of proceeds therefrom and/or the
other transactions contemplated hereby (collectively, the “Transactions”), whether such acts or
practices occur before or after the date hereof or consummation of any of the Transactions. Each of
the Company and the Guarantors understands that its rights and remedies with respect to the
Transactions and with respect to all acts or transactions shall be governed by legal principles
other than the DTPA; provided, however, that neither the Company nor any Guarantor waives
subchapter 17.555 of the DTPA. In connection with this waiver, each of the Company and the
Guarantors acknowledges, represents and warrants that it has assets of $5.0 million or more
(calculated in accordance with U.S. GAAP), that it has knowledge and experience in financial and
business matters that enable it to evaluate

35

 

the merits and risks of transactions such as the Transactions, and that it is not in a
significantly disparate bargaining position with the Initial Purchasers. Neither termination of
this Agreement, nor consummation of the Offering or any of the transactions contemplated hereby
shall affect the provisions of this Section 22, which shall remain operative and in full force and
effect.

     23. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all such counterparts shall together constitute
one and the same instrument. Delivery of a signed counterpart of this Agreement by facsimile
transmission shall constitute valid and sufficient delivery thereof.

[Signature page follows]

36

 

     If the foregoing correctly sets forth the understanding among the Initial Purchasers, the Company
and the Guarantors please so indicate in the space provided below for that purpose, whereupon this
letter shall constitute a binding agreement among us.

	 	 	 	 	 
	 	Very truly yours,

MetroPCS
Wireless,
Inc.

 	 
	 	By:  	/s/        Roger D. Linquist
 	 
	 	 	Name:  	Roger D. Linquist 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	MetroPCS AWS, LLC

MetroPCS V, Inc. 

MetroPCS California, LLC 

MetroPCS Florida, LLC

MetroPCS Georgia, LLC 

MetroPCS Michigan, Inc.

MetroPCS Texas, LLC 

GWIPCS1, Inc.

MetroPCS Communications, Inc.

 	 
	 	By:  	/s/        Roger D. Linquist
 	 
	 	 	Name:  	Roger D. Linquist 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

Signature Page to Purchase Agreement

 

 

	 	 	 	 	 
	Accepted and agreed to as of 

the date first above written:	 	 
	 
	 	 	 	 
	Bear, Stearns & Co. Inc. 	 	 
	 
	 	 	 	 
	By:

	 	/s/ Richard Bram Smith
	 	 
	 

	 	 	 	 
	 

	 	Name: Richard Bram Smith	 	 
	 

	 	Title: Senior Managing Director	 	 
	 
	 	 	 	 
	Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 
	 	 	 	 
	By:

	 	/s/ Henrik Dahlback	 	 
	 

	 	 	 	 
	 

	 	Name: Henrik Dahlback	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	Banc
Of America Securities LLC 	 	 
	 
	 	 	 	 
	By:

	 	/s/ Daniel J. Kelly	 	 
	 

	 	 	 	 
	 

	 	Name: Daniel J. Kelly	 	 
	 

	 	Title: Managing Director	 	 

Signature Page to Purchase Agreement

 

 

Schedule I

Guarantors

	 	 	 
	 	 	Jurisdiction of
	Entity	 	Organization
	MetroPCS AWS, LLC

	 	Delaware
	MetroPCS V, Inc. (1)

	 	Delaware
	MetroPCS California, LLC

	 	Delaware
	MetroPCS Florida, LLC

	 	Delaware
	MetroPCS Georgia, LLC

	 	Delaware
	MetroPCS Michigan, Inc.

	 	Delaware
	MetroPCS Texas, LLC

	 	Delaware
	GWIPCSl,Inc.

	 	Delaware
	MetroPCS Communications, Inc.

	 	Delaware

 

			
	(1)	 	To be renamed MetroPCS, Inc. in connection with the Restructuring Transactions.exv10w14

 

EXHIBIT 10.14

 

REGISTRATION RIGHTS AGREEMENT

by and among

METROPCS WIRELESS, INC.

THE GUARANTORS PARTY HERETO

and

BEAR, STEARNS & CO. INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED BANC OF AMERICA SECURITIES LLC

November 3,
2006

 

 

 

     This
Registration Rights Agreement (this “Agreement”) is made and entered into as of November
3, 2006 by and among MetroPCS Wireless, Inc., a Delaware corporation
(the “Company”),and each of
the guarantors listed on Schedule I hereto (the “Guarantors”) and Bear, Stearns & Co. Inc., Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Banc of America Securities LLC (the “Initial
Purchasers”). The Initial Purchasers have, jointly and not severally, agreed to purchase the
Company’s 9 1/4% Senior Notes due November 1, 2014 (the
“Notes”) pursuant to the Purchase Agreement
(as defined below).

     This Agreement is made pursuant to the Purchase Agreement, dated October 26, 2006, (the
“Purchase Agreement”), by and among the Company, the Guarantors, and the Initial Purchasers. In
order to induce the Initial Purchasers to purchase the Notes, the Company and the Guarantors have
agreed to provide the registration rights set forth in this Agreement. The execution and delivery
of this Agreement is a condition to the obligations of the Initial Purchasers set forth in Section
10(j) of the Purchase Agreement. Capitalized terms used herein and not otherwise defined shall have
the meaning assigned to them in the Indenture (the “Indenture”), dated November 3, 2006, among the
Company, the Guarantors and The Bank of New York, as Trustee, relating to the Notes and the
Exchange Notes (as defined below).

     The parties hereby agree as follows:

SECTION 1. DEFINITIONS

     As used in this Agreement, the following capitalized terms shall have the following meanings:

     Affiliate: As defined in Rule 144 of the Securities Act.

     Broker-Dealer: Any broker or dealer registered under the Exchange Act.

     Capital Stock: As defined in the Purchase Agreement.

     Certificated Securities: Definitive Notes, as defined in the Indenture.

     Closing Date: The date hereof.

     Commission: The United States Securities and Exchange Commission.

     Consummate: An Exchange Offer shall be deemed “Consummated” for purposes of this
Agreement upon the occurrence of (a) the filing and effectiveness under the Securities Act of the
Exchange Offer Registration Statement relating to the Exchange Notes to be issued in the Exchange
Offer, (b) the maintenance of such Exchange Offer Registration Statement continuously effective
and the keeping of the Exchange Offer open for a period not less than the period required pursuant
to Section 3(b) hereof and (c) the delivery by the Company to the Registrar under the Indenture of
Exchange Notes in the same aggregate principal amount as the aggregate principal amount of Notes
tendered by Holders thereof pursuant to the Exchange Offer.

     Consummation Deadline: As defined in Section 3(b) hereof.

 

 

     Effectiveness Deadline: As defined in Sections 3(a) and 4(a) hereof.

     Exchange Act: The United States Securities Exchange Act of 1934, as amended.

     Exchange Notes: The Company’s 9 1/4% Senior Notes due 2014 and the related guarantees
to be issued pursuant to the Indenture: (i) in the Exchange Offer or (ii) as contemplated by
Section 4 hereof.

     Exchange Offer: The exchange and issuance by the Company of a principal amount of
Exchange Notes (which shall be registered pursuant to the Exchange Offer Registration Statement)
equal to the outstanding principal amount of Notes that are tendered by such Holders in connection
with such exchange and issuance, and evidencing the same continuing Indebtedness.

     Exchange Offer Registration Statement: The Registration Statement relating to the
Exchange Offer, including the related Prospectus.

     Exempt Resales: The transactions in which the Initial Purchasers propose to sell the
Notes to certain “qualified institutional buyers,” as such term is defined in Rule 144A under the
Securities Act and pursuant to Regulation S under the Securities Act.

     Filing Deadline: As defined in Sections 3(a) and 4(a)
hereof.

     Holders: As defined in Section 2 hereof.

     Prospectus: The prospectus included in a Registration Statement at the time such
Registration Statement is declared effective, as amended or supplemented by any prospectus
supplement and by all other amendments thereto, including post-effective amendments, and all
material incorporated by reference into such Prospectus.

     Recommencement Date: As defined in Section 6(d)
hereof.

     Registration Default: As defined in Section 5
hereof.

     Registration Statement: Any registration statement of the Company and the Guarantors
relating to (a) an offering of Exchange Notes pursuant to an Exchange Offer or (b) the
registration for resale of Transfer Restricted Securities pursuant to the Shelf Registration
Statement, in each case, (i) that is filed pursuant to the provisions of this Agreement and (ii)
including the Prospectus included therein, all amendments and supplements thereto (including
post-effective amendments) and all exhibits and material incorporated by reference therein.

     Regulation S: Regulation S promulgated under the Securities Act.

     Rule 144: Rule 144 promulgated under the Securities Act.

     Securities Act: The United States Securities Act of 1933, as
amended.

     Shelf Registration Statement: As defined in Section 4
hereof.

3

 

     Suspension Notice: As defined in Section 6(d) hereof.

     TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in effect on
the date of the Indenture.

     Transfer Restricted Securities: Each (A) Note, until the earliest to occur of (i) the
date on which such Note is exchanged in the Exchange Offer for an Exchange Note which is entitled
to be resold to the public by the Holder thereof without complying with the prospectus delivery
requirements of the Securities Act, (ii) the date on which such Note has been disposed of in
accordance with a Shelf Registration Statement (and the purchasers thereof have been issued
Exchange Notes), or (iii) the date on which such Note is distributed to the public pursuant to Rule
144 under the Securities Act and each (B) Exchange Note held by a Broker Dealer until the date on
which such Exchange Note is disposed of by a Broker-Dealer pursuant to the “Plan of Distribution”
contemplated by the Exchange Offer Registration Statement (including the delivery of the Prospectus
contained therein).

SECTION 2. HOLDERS

     A Person is deemed to be a holder of Transfer Restricted Securities (each, a “Holder”)
whenever such Person owns Transfer Restricted Securities.

SECTION 3. REGISTERED EXCHANGE OFFER

     (a) Unless the Exchange Offer shall not be permitted by applicable law (after the
procedures set forth in Section 6(a)(i) below have been complied with) or Commission policy, the
Company and the Guarantors shall (i) cause the Exchange Offer Registration Statement to be filed
with the Commission on or prior to the earlier of (a) 365 days after the Closing Date and (b) 30
days following the date that MetroPCS Communications, Inc., a Delaware corporation, or any of its
Subsidiaries (other than Royal Street Communications, LLC or any of its subsidiaries) consummates
a public offering of its Capital Stock (such earlier date being the “Filing Deadline”), (ii) use
all commercially reasonable efforts to cause such Exchange Offer Registration Statement to be
declared effective by the Commission on or prior to 180 days after the filing of the Exchange
Offer Registration Statement (such day being the
“Effectiveness Deadline”), (iii) in
connection with the foregoing, (A) file all pre-effective amendments to such Exchange Offer
Registration Statement as may be necessary in order to cause the Exchange Offer Registration
Statement to be declared effective, (B) file, if applicable, a post-effective amendment to such
Exchange Offer Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause
all necessary filings, if any, in connection with the registration and qualification of the
Exchange Notes to be made under the Blue Sky laws of such jurisdictions as are necessary to permit
Consummation of the Exchange Offer, and (iv) as soon as practicable following the effectiveness of
such Exchange Offer Registration Statement, commence and Consummate the Exchange Offer. The
Exchange Offer shall be on the appropriate form permitting (i) registration of the Exchange Notes
to be offered in exchange for the Notes that are Transfer Restricted Securities and (ii) resales
of Exchange Notes by Broker-Dealers that tendered into the Exchange Offer Notes that such
Broker-Dealer acquired for its own account as a result of market making activities or other
trading activities (other than Notes acquired directly from the Company or any of its Affiliates)
as contemplated by Section 3(c) below.

4

 

     (b) The Company and the Guarantors shall use their respective
commercially reasonable efforts to cause the Exchange Offer Registration
Statement to be effective continuously, and shall keep the Exchange Offer open for a
period of not less than the minimum period required under applicable federal and state
securities laws to Consummate the Exchange Offer; provided, however, that in no event
shall such period be less than 20 business days. The Company and the Guarantors shall
cause the Exchange Offer to comply with all applicable federal and state securities
laws. No securities other than the Exchange Notes shall be included in the Exchange
Offer Registration Statement. The Company and the Guarantors shall use
all commercially reasonable efforts to cause the Exchange Offer to be Consummated on
the earliest practicable date after the Exchange Offer Registration Statement has
become effective, but in no event later than 30 business days thereafter, or longer,
if required by the federal securities laws (the last day of such period being the
“Consummation Deadline”).

     (c) The Company shall include a “Plan of Distribution” section in the
Prospectus contained in the Exchange Offer Registration Statement and indicate therein
that any Broker-Dealer who holds Transfer Restricted Securities that were acquired
for the account of such Broker-Dealer as a result of market-making activities or other
trading activities (other than Notes acquired directly from the Company or any
Affiliate of the Company), may exchange such Transfer Restricted Securities pursuant
to the Exchange Offer. Such “Plan of Distribution” section shall also contain all
other information with respect to such sales by such Broker-Dealers that the
Commission may require in order to permit such sales pursuant thereto, but such
“Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of
Transfer Restricted Securities held by any such Broker-Dealer, except to the extent
required by the Commission as a result of a change in policy, rules or regulations
after the date of this Agreement. See the Shearman & Sterling no-action letter
(available July 2, 1993).

     Because such Broker-Dealer may be deemed to be an “underwriter” within the meaning of the
Securities Act and must, therefore, deliver a prospectus meeting the requirements of the
Securities Act in connection with its initial sale of any Exchange Notes received by such
Broker-Dealer in the Exchange Offer, the Company and the Guarantors shall permit the use of the
Prospectus contained in the Exchange Offer Registration Statement by such Broker-Dealer to satisfy
such prospectus delivery requirement. To the extent necessary to ensure that the prospectus
contained in the Exchange Offer Registration Statement is available for sales of Exchange Notes by
Broker-Dealers, the Company and the Guarantors agree to use their respective commercially
reasonable efforts to keep the Exchange Offer Registration Statement continuously effective,
supplemented, amended and current as required by and subject to the provisions of Section 6(a) and
(c) hereof and in conformity with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from time to time, for a period of
180 days from the Consummation Deadline or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Registration Statement have been sold pursuant thereto. The
Company and the Guarantors shall provide sufficient copies of the latest version of such
Prospectus to such Broker-Dealers, promptly upon request, and in no event later than two business
days after such request, at any time during such period.

5

 

SECTION 4. SHELF REGISTRATION

     (a) Shelf Registration. If (i) the Company and the Guarantors are not (A)
required to file the Exchange Offer Registration Statement or (B) permitted to Consummate the
Exchange Offer because the Exchange Offer is not permitted by applicable law (after the Company and
the Guarantors have complied with the procedures set forth in Section 6(a)(i) below) or Commission
policy or (ii) if any Holder of Transfer Restricted Securities shall notify the Company within 20
business days following the consummation of the Exchange Offer that (A) such Holder was prohibited
by law or Commission policy from participating in the Exchange Offer; (B) such Holder may not
resell the Exchange Notes acquired by it in the Exchange Offer to the public without delivering a
prospectus and the Prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder; or (C) such Holder is a Broker-Dealer and
holds Notes acquired directly from the Company or any of its Affiliates, then the Company and the
Guarantors shall use all commercially reasonable efforts to file with the Commission a Shelf
Registration Statement (as defined below) to cover resales of the Notes by Holders of the Notes who
satisfy certain conditions relating to the provision of information in connection with the Shelf
Registration Statement. If obligated to file a Shelf Registration Statement, the Company and the
Guarantors shall use all commercially reasonable efforts to:

     (x) file, on or prior to 30 days after the earlier of (i) the date on which the Company
determines that the Exchange Offer Registration Statement cannot be filed as a result of clause
(a)(i) above and (ii) the date on which the Company receives the notice specified in clause
(a)(ii) above, (such earlier date, the “Filing Deadline”), a shelf registration statement pursuant
to Rule 415 under the Securities Act (which may be an amendment to the Exchange Offer Registration
Statement (the “Shelf Registration Statement”)), relating to all Transfer Restricted Securities,
and

     (y) cause such Shelf Registration Statement to be declared effective by the Commission on or
prior to 180 days after the Filing Deadline for the Shelf Registration Statement (such 180th day
the “Effectiveness Deadline”).

               If, after the Company and the Guarantors have filed an Exchange Offer Registration Statement
that satisfies the requirements of Section 3(a) above, the Company and the Guarantors are required
to file and make effective a Shelf Registration Statement solely because the Exchange Offer is not
permitted under applicable federal law (i.e., clause (a)(i) above), then the filing of the
Exchange Offer Registration Statement shall be deemed to satisfy the requirements of clause (x)
above; provided that, in such event, the Company and the Guarantors shall remain obligated to meet
the Effectiveness Deadline set forth in clause (y).

               To the extent necessary to ensure that the Shelf Registration Statement is available for sales
of Transfer Restricted Securities by the Holders thereof entitled to the benefit of this Section
4(a) and the other securities required to be registered therein pursuant to Section 6(b)(ii)
hereof, the Company and the Guarantors shall use their respective commercially reasonable efforts
to keep any Shelf Registration Statement required by this Section 4(a) continuously effective,
supplemented, amended and current as required by and subject to the provisions of Sections 6(b) and
(c) hereof and in conformity with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from time

6

 

to time, for a period of at least two years (as extended pursuant to Section 6(c)(i) hereof)
following the Closing Date, or such shorter period as will terminate at such time there are no
longer any Transfer Restricted Securities that are covered by the Shelf Registration Statement
outstanding.

     (b) Provision by Holders of Certain Information in Connection with the Shelf Registration
Statement. No Holder of Transfer Restricted Securities may include any of its Transfer
Restricted Securities in any Shelf Registration Statement pursuant to this Agreement unless and
until such Holder furnishes to the Company in writing, within 20 days after receipt of a request
therefor, the information specified in Item 507 or Item 508 of Regulation S-K, as applicable, of
the Securities Act for use in connection with any Shelf Registration Statement or Prospectus or
preliminary Prospectus included therein. No Holder of Transfer Restricted Securities shall be
entitled to liquidated damages pursuant to Section 5 hereof unless such Holder shall have provided
all such information in the required times. Each selling Holder agrees to promptly furnish
additional information required to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially misleading.

SECTION 5. LIQUIDATED DAMAGES

     If (i) any Registration Statement required by this Agreement is not filed with the Commission
by the applicable Filing Deadline, (ii) any such Registration Statement has not been declared
effective by the Commission by the applicable Effectiveness Deadline, (iii) the Exchange Offer has
not been Consummated by the Consummation Deadline or (iv) any Registration Statement required by
this Agreement is filed and declared effective but shall thereafter cease to be effective or fail
to be usable for its intended purpose without being succeeded immediately by a post-effective
amendment to such Registration Statement that cures such failure and that is itself declared
effective within 5 days of filing such post-effective amendment to such Registration Statement
(each such event referred to in clauses (i) through (iv), a
“Registration Default”), then the
Company and the Guarantors hereby jointly and severally agree to pay to each Holder of Transfer
Restricted Securities affected thereby liquidated damages in an amount equal to $0.05 per week per
$1,000 in principal amount of Transfer Restricted Securities held by such Holder for each week or
portion thereof that the Registration Default continues for the first 90-day period immediately
following the occurrence of such Registration Default. The amount of the liquidated damages shall
increase by an additional $0.05 per week per $1,000 in principal amount of Transfer Restricted
Securities with respect to each subsequent 90-day period until all Registration Defaults have been
cured, up to a maximum amount of liquidated damages of $0.20 per week per $1,000 in principal
amount of Transfer Restricted Securities; provided that the Company and the Guarantors shall in no
event be required to pay liquidated damages for more than one Registration Default at any given
time. Notwithstanding anything to the contrary set forth herein, (1) upon filing of the Exchange
Offer Registration Statement (and/or, if applicable, the Shelf Registration Statement), in the
case of (i) above, (2) upon the effectiveness of the Exchange Offer Registration Statement
(and/or, if applicable, the Shelf Registration Statement), in the case of (ii) above, (3) upon
Consummation of the Exchange Offer, in the case of (iii) above, or (4) upon the filing of a
post-effective amendment to the Registration Statement or an additional Registration Statement
that causes the Exchange Offer Registration Statement (and/or, if applicable, the Shelf
Registration Statement) to again be declared effective or made usable in the case of (iv) above,
the liquidated damages

7

 

payable with respect to the Transfer Restricted Securities as a result of such clause (i), (ii),
(iii) or (iv), as applicable, shall cease.

     All accrued liquidated damages shall be paid to the Holders entitled thereto, in the manner
provided for the payment of interest in the Indenture, on each Interest Payment Date, as more
fully set forth in the Indenture and the Notes. Notwithstanding the fact that any securities for
which liquidated damages are due cease to be Transfer Restricted Securities, all obligations of
the Company and the Guarantors to pay liquidated damages with respect to securities shall survive
until such time as such obligations with respect to such securities shall have been satisfied in
full. Notwithstanding anything contained herein or in the Indenture to the contrary, the payment
of liquidated damages shall be the only remedy available to holders of Notes for any Registration
Default.

SECTION 6. REGISTRATION PROCEDURES

     (a) Exchange Offer Registration Statement. In connection with the Exchange Offer, the
Company and the Guarantors shall (x) comply with all applicable provisions of Section 6(c) below,
(y) use their respective commercially reasonable efforts to effect such exchange and to permit the
resale of Exchange Notes by Broker-Dealers that tendered in the Exchange Offer Notes that such
Broker-Dealer acquired for its own account as a result of its market making activities or other
trading activities (other than Notes acquired directly from the Company or any of its Affiliates)
being sold in accordance with the intended method or methods of distribution thereof, and (z)
comply with all of the following provisions:

     (i) If, following the date hereof there has been announced a change in Commission policy
with respect to exchange offers such as the Exchange Offer, that in the reasonable opinion
of counsel to the Company raises a substantial question as to whether the Exchange Offer is
permitted by applicable federal law, the Company and the Guarantors hereby agree to use
commercially reasonable efforts to seek a no-action letter or other favorable decision from
the Commission allowing the Company and the Guarantors to Consummate an Exchange Offer for
such Transfer Restricted Securities. The Company and the Guarantors hereby agree to pursue the
issuance of such a decision to the Commission staff level. In connection with the foregoing,
the Company and the Guarantors hereby agree to take all such other commercially reasonable
actions as may be requested by the Commission or otherwise required in connection with the
issuance of such decision, including without limitation (A) participating in telephonic
conferences with the Commission, (B) delivering to the Commission staff an analysis prepared
by counsel to the Company setting forth the legal bases, if any, upon which such counsel has
concluded that such an Exchange Offer should be permitted and (C) diligently pursuing a
resolution (which need not be favorable) by the Commission staff.

     (ii) As a condition to its participation in the Exchange Offer, each Holder of Transfer
Restricted Securities (including, without limitation, any Holder who is a Broker Dealer)
shall furnish, upon the request of the Company, prior to the Consummation of the Exchange
Offer, a written representation to the Company and the Guarantors (which may be contained in
the letter of transmittal contemplated by the Exchange Offer Registration Statement) to the
effect that (A) it is not an Affiliate of the Company, (B) it is not

8

 

engaged in, and does not intend to engage in, and has no arrangement or understanding with
any person to participate in, a distribution of the Exchange Notes to be issued in the
Exchange Offer and (C) it is acquiring the Exchange Notes in its ordinary course of
business. As a condition to its participation in the Exchange Offer each Holder using the
Exchange Offer to participate in a distribution of the Exchange Notes shall acknowledge and
agree that, if the resales are of Exchange Notes obtained by such Holder in exchange for
Notes acquired directly from the Company or an Affiliate thereof, it (1) could not, under
Commission policy as in effect on the date of this Agreement, rely on the position of the
Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and
Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the
Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar
no-action letters (including, if applicable, any no-action letter obtained pursuant to
clause (i) above), and (2) must comply with the registration and prospectus delivery
requirements of the Securities Act in connection with a secondary resale transaction and
that such a secondary resale transaction must be covered by an effective registration
statement containing the selling security holder information required by Item 507 or 508,
as applicable, of Regulation S-K.

     (iii) Prior to effectiveness of the Exchange Offer Registration Statement, the Company
and the Guarantors shall provide a supplemental letter to the Commission (A) stating that
the Company and the Guarantors are registering the Exchange Offer in reliance on the
position of the Commission enunciated in Exxon Capital Holdings Corporation
(available May 13, 1988), Morgan Stanley and Co., Inc. (available June 5, 1991) as
interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993,
and, if applicable, any no-action letter obtained pursuant to clause (i) above, (B)
including a representation that neither the Company nor any of the Guarantors has entered
into any arrangement or understanding with any Person to distribute the Exchange Notes to
be received in the Exchange Offer and that, to the Company’s and the Guarantors’ knowledge
and belief, each Holder participating in the Exchange Offer is acquiring the Exchange Notes
in its ordinary course of business and has no arrangement or understanding with any Person
to participate in the distribution of the Exchange Notes received in the Exchange Offer and
(C) any other commercially reasonable undertaking or representation required by the
Commission as set forth in any no-action letter obtained pursuant to clause (i) above, if
applicable.

     (b) Shelf Registration Statement. In connection with the Shelf Registration
Statement, the Company and the Guarantors shall (i) comply with all the provisions of Section 6(c)
below and use their respective commercially reasonable efforts to effect such registration to
permit the sale of the Transfer Restricted Securities being sold in accordance with the intended
method or methods of distribution thereof (as indicated in the information furnished to the
Company pursuant to Section 4(b) hereof), and pursuant thereto the Company and the Guarantors will
prepare and file with the Commission a Registration Statement relating to the registration on any
appropriate form under the Securities Act, which form shall be available for the sale of the
Transfer Restricted Securities in accordance with the intended method or methods of distribution
thereof within the time periods and otherwise in accordance with the provisions hereof, and

9

 

     (ii) issue, upon the request of any Holder or purchaser of Notes covered by any Shelf
Registration Statement contemplated by this Agreement, Exchange Notes having an aggregate
principal amount equal to the aggregate principal amount of Notes sold pursuant to the
Shelf Registration Statement and surrendered to the Company for cancellation; the Company
shall register Exchange Notes on the Shelf Registration Statement for this purpose and
issue the Exchange Notes to the purchaser(s) of securities subject to the Shelf
Registration Statement in the names as such purchaser(s) shall designate.

     (c) General Provisions. In connection with any Registration Statement and any
related Prospectus required by this Agreement, the Company and the Guarantors shall:

     (i) use their respective commercially reasonable efforts to keep such Registration
Statement continuously effective and provide all requisite financial statements for the
period specified in Section 3 or 4 of this Agreement, as applicable. Upon the occurrence of
any event that would cause any such Registration Statement or the Prospectus contained
therein (A) to contain an untrue statement of material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading or (B) not to be effective and
usable for resale of Transfer Restricted Securities during the period required by this
Agreement, the Company and the Guarantors shall file promptly an appropriate amendment to
such Registration Statement curing such defect, and, if Commission review is required, use
their respective commercially reasonable efforts to cause such amendment to be declared
effective as soon as practicable.

     (ii) prepare and file with the Commission such amendments and post-effective
amendments to the applicable Registration Statement as may be necessary to keep such
Registration Statement effective for the applicable period set forth in Section 3 or 4
hereof, as the case may be; cause the Prospectus to be supplemented by any required
Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the
Securities Act, and to comply fully with Rules 424, 430A and 462, as applicable, under the
Securities Act in a timely manner; and comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such Registration Statement
during the applicable period in accordance with the intended method or methods of
distribution by the sellers thereof set forth in such Registration Statement or supplement
to the Prospectus;

     (iii) advise each Holder promptly and, if requested by such Holder, confirm such
advice in writing, (A) when the Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and, with respect to any applicable Registration Statement or any
post-effective amendment thereto, when the same has become effective, (B) of any request by
the Commission for amendments to the Registration Statement or amendments or supplements to
the Prospectus or for additional information relating thereto, (C) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration Statement
under the Securities Act or of the suspension by any state securities commission of the
qualification of the Transfer Restricted

10

 

Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of
the preceding purposes, (D) of the existence of any fact or the happening of any event that makes
any statement of a material fact made in the Registration Statement, the Prospectus, any amendment
or supplement thereto or any document incorporated by reference therein untrue, or that requires
the making of any additions to or changes in the Registration Statement in order to make the
statements therein not misleading, or that requires the making of any additions to or changes in
the Prospectus in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. If at any time the Commission shall issue any stop order
suspending the effectiveness of the Registration Statement, or any state securities commission or
other regulatory authority shall issue an order suspending the qualification or exemption from
qualification of the Transfer Restricted Securities under state securities or Blue Sky laws, the
Company and the Guarantors shall use their respective commercially reasonable efforts to obtain the
withdrawal or lifting of such order at the earliest possible time;

     (iv) subject to Section 6(c)(i), if any fact or event contemplated by Section 6(c)(iii)(D)
above shall exist or have occurred, prepare a supplement or post-effective amendment to the
Registration Statement or related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

     (v) if requested by an Initial Purchaser or a Holder, furnish to each Holder in connection
with such exchange or sale, if any, before filing with the Commission, copies of any Registration
Statement or any Prospectus included therein or any amendments or supplements to any such
Registration Statement or Prospectus (including all documents incorporated by reference after the
initial filing of such Registration Statement), which documents will be subject to the review and
comment of such Holders in connection with such sale, if any, for a period of at least five days,
and the Company will not file any such Registration Statement or Prospectus or any amendment or
supplement to any such Registration Statement or Prospectus (including all such documents
incorporated by reference) to which such Holders shall reasonably object within five days after
the receipt thereof. A Holder shall be deemed to have reasonably objected to such filing if such
Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be
filed, contains an untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading or fails to comply with the applicable requirements of
the Securities Act;

     (vi) promptly prior to the filing of any document that is to be incorporated by reference
into a Shelf Registration Statement or Prospectus, provide a copy of such document to each Holder
that made a request in writing described in (v) above in connection with such exchange or sale, if
any, make the Company’s and the Guarantors’ representatives available for discussion of such
document and other customary due

11

 

diligence matters, and include such information in such document prior to the filing thereof as
such Holders may reasonably request;

     (vii) make available, at reasonable times, for inspection by each Holder and any attorney or
accountant retained by such Holders, all financial and other records, pertinent corporate documents
of the Company and the Guarantors and cause the Company’s and the Guarantors’ officers, directors
and employees to supply all information reasonably requested by any such Holder, attorney or
accountant in connection with such Shelf Registration Statement or any post-effective amendment
thereto subsequent to the filing thereof and prior to its effectiveness; provided, however, that
any information that is designated in writing by the Company or the Guarantors as confidential at
the time of delivery of such information shall be kept confidential by the Holders or any such
attorney or accountant, unless such disclosure is made in connection with a court proceeding or
required by law;

     (viii) if requested by any Holders in connection with such exchange or sale, promptly include
in any Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective
amendment if necessary, such information as such Holders may reasonably request to have included
therein, including, without limitation, information relating to the “Plan of Distribution” of the
Transfer Restricted Securities; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as practicable after the Company is notified of the matters to be
included in such Prospectus supplement or post-effective amendment;

     (ix) furnish to each Holder in connection with such exchange or sale, without charge, at
least one copy of the Shelf Registration Statement, as first filed with the Commission, and of
each amendment thereto, including all documents incorporated by reference therein and all exhibits
(including exhibits incorporated therein by reference);

     (x) deliver to each Holder without charge, as many copies of the Prospectus (including each
preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may
request; the Company and the Guarantors hereby consent to the use (in accordance with law) of the
Prospectus and any amendment or supplement thereto by each selling Holder in connection with the
offering and the sale of the Transfer Restricted Securities covered by the Prospectus or any
amendment or supplement thereto;

     (xi) upon the request of any Holder, enter into such agreements (including underwriting
agreements) and make such representations and warranties customary for offerings of such type as
may be reasonably requested and take all such other actions in connection therewith in order to
expedite or facilitate the disposition of the Transfer Restricted Securities pursuant to any
applicable Shelf Registration Statement contemplated by this Agreement as may be reasonably
requested by any Holder in connection with any sale or resale pursuant to any applicable Shelf
Registration Statement. In such connection, the Company and the Guarantors shall:

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     (A) upon request of any Holder furnish (or in the case of paragraphs (2)
and (3), use its commercially reasonable efforts to cause to be
furnished), upon the effectiveness of the Shelf Registration Statement:

     (1) an opinion, dated the date of effectiveness of the
Shelf Registration Statement of counsel for the Company and the
Guarantors covering matters as are customarily covered in opinions
requested in underwritten offerings and such other matters as such
Holder may reasonably request; and

     (2) a customary comfort letter, dated the date of
effectiveness of the Shelf Registration Statement from the Company’s
independent accountants, in the customary form and covering matters of
the type customarily covered in comfort letters to underwriters in
connection with underwritten offerings; and

     (B) deliver such other documents and certificates as may be
reasonably requested by the selling Holders to evidence compliance with the
matters covered in clause (A) above and with any customary conditions
contained in the any agreement entered into by the Company and the Guarantors
pursuant to this clause (xi);

     (xii) prior to any public offering of Transfer Restricted Securities, cooperate with the
selling Holders and their counsel in connection with the registration and qualification of the
Transfer Restricted Securities under the securities or Blue Sky laws of such jurisdictions as the
selling Holders may request and do any and all other acts or things necessary or advisable to
enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the
applicable Registration Statement, but in no event for longer than 365 days from the effective
date of the Registration Statement; provided, however, that neither the Company nor any Guarantor
shall be required to register or qualify as a foreign corporation where it is not now so qualified
or to take any action that would subject it to the service of process in suits or to taxation,
other than as to matters and transactions relating to the Registration Statement, in any
jurisdiction where it is not now so subject;

     (xiii) in connection with any sale of Transfer Restricted Securities that will result in such
securities no longer being Transfer Restricted Securities, reasonably cooperate with the Holders
to facilitate the timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and to register such Transfer
Restricted Securities in such denominations and such names as the selling Holders may request at
least two Business Days prior to such sale of Transfer Restricted Securities;

     (xiv) use their respective commercially reasonable efforts to cause the disposition of the
Transfer Restricted Securities covered by the Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary to enable the
seller or sellers thereof to consummate the disposition of such

13

 

Transfer Restricted Securities, but in no event for longer than 365 days from the
effective date of the Registration Statement, subject to the proviso contained in clause
(xii) above;

     (xv) provide a CUSIP number for all Transfer Restricted Securities not later than the
effective date of a Registration Statement covering such Transfer Restricted Securities and
provide the Trustee under the Indenture with printed certificates for the Transfer
Restricted Securities which are in a form eligible for deposit with the Depository Trust
Company;

     (xvi) otherwise use their respective commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission, and with regard to any Shelf
Registration Statement for which an underwriter has been engaged, use their commercially
reasonable efforts to make generally available to its security holders, as soon as
practicable, a consolidated earnings statement meeting the requirements of Rule 158 under
the Securities Act (which need not be audited) covering a twelve-month period beginning
after the effective date of the Registration Statement (as such term is defined in paragraph
(c) of Rule 158 under the Securities Act);

     (xvii) cause the Indenture to be qualified under the TIA not later than the effective
date of the first Registration Statement required by this Agreement and, in connection
therewith, cooperate with the Trustee and the Holders to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in accordance with the
terms of the TIA; and execute and use its commercially reasonable efforts to cause the
Trustee to execute, all documents that may be required to effect such changes and all other
forms and documents required to be filed with the Commission to enable such Indenture to be
so qualified in a timely manner; and

     (xviii) unless otherwise available through the Commission’s EDGAR System provide
promptly to each Holder, upon request, each document filed with the Commission pursuant to
the requirements of Section 13 or Section 15(d) of the Exchange
Act.

     (d) Restrictions on Holders. Each Holder agrees by acquisition of a Transfer
Restricted Security that, upon receipt of the notice referred to in Section 6(c)(iii)(C) or any
notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D)
hereof (in each case, a “Suspension Notice”), such Holder will forthwith discontinue disposition
of Transfer Restricted Securities pursuant to the applicable Registration Statement until (i) such
Holder has received copies of the supplemented or amended Prospectus contemplated by Section
6(c)(iv) hereof, or (ii) such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and has received copies of any additional or supplemental filings that
are incorporated by reference in the Prospectus (in each case, the
“Recommencement Date”).
Each Holder receiving a Suspension Notice hereby agrees that it will either (i) destroy any
Prospectuses, other than permanent file copies, then in such Holder’s possession which have been
replaced by the Company with more recently dated Prospectuses or (ii) deliver to the Company (at
the Company’s expense) all copies, other than permanent file copies, then in such Holder’s
possession of the Prospectus covering such Transfer Restricted Securities that was current at the
time of receipt of the Suspension Notice. The time period regarding the

14

 

effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable,
shall be extended by a number of days equal to the number of days in the period from and including
the date of delivery of the Suspension Notice to the Recommencement Date.

SECTION 7. REGISTRATION EXPENSES

     (a) All expenses incident to the Company’s and the Guarantors’ performance of or
compliance with this Agreement will be borne by the Company, regardless of whether a Registration
Statement becomes effective, including without limitation: (i) all registration and filing fees and
expenses; (ii) all fees and expenses of compliance with federal securities and state Blue Sky or
securities laws; (iii) all expenses of printing (including printing certificates for the Exchange
Notes to be issued in the Exchange Offer and printing of Prospectuses, messenger and delivery
services and telephone; (iv) all fees and disbursements of outside counsel for the Company and the
Guarantors and (v) fees and disbursements of independent certified public accountants of the
Company and the Guarantors (including the expenses of any special audit and comfort letters
required by or incident to such performance).

     The Company will, in any event, bear its and the Guarantors’ internal expenses (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses of any Person,
including special experts, retained by the Company or the Guarantors.

     (b) In connection with any Registration Statement required by this Agreement (including,
without limitation, the Exchange Offer Registration Statement and the Shelf Registration
Statement), the Company and the Guarantors will reimburse the Initial Purchasers and the Holders of
Transfer Restricted Securities who are tendering Notes into in the Exchange Offer and/or selling or
reselling Notes or Exchange Notes pursuant to the “Plan of Distribution” contained in the Exchange
Offer Registration Statement or the Shelf Registration Statement, as applicable, for the reasonable
and actual fees and disbursements of not more than one counsel, who shall be Latham & Watkins LLP,
unless another firm shall be chosen by the Holders of a majority in principal amount of the
Transfer Restricted Securities for whose benefit such Registration Statement is being prepared.

SECTION 8. INDEMNIFICATION

     (a) The Company and the Guarantors agree, jointly and severally, to indemnify and hold
harmless each Holder, its directors, officers and each Person, if any, who controls such Holder
(within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), from
and against any and all losses, claims, damages, liabilities, judgments, (including without
limitation, any legal or other expenses incurred in connection with investigating or defending any
matter, including any action that could give rise to any such losses, claims, damages, liabilities
or judgments) caused by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement, preliminary prospectus or Prospectus (or any amendment or
supplement thereto) provided by the Company to any Holder or any prospective purchaser of Exchange
Notes or registered Notes, or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not

15

 

misleading, except insofar as such losses, claims, damages, liabilities or judgments are caused by
an untrue statement or omission or alleged untrue statement or omission that is based upon
information relating to any of the Holders furnished in writing to the Company by any of the
Holders.

     (b) Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to
indemnify and hold harmless the Company and the Guarantors, and their respective directors and
officers, and each person, if any, who controls (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) the Company, or the Guarantors to the same extent as the
foregoing indemnity from the Company and the Guarantors set forth in section (a) above, but only
with reference to information relating to such Holder furnished in writing to the Company by such
Holder expressly for use in any Registration Statement, preliminary prospectus or Prospectus (or
any amendment or supplement thereto). In no event shall any Holder, its directors, officers or
any Person who controls such Holder be liable or responsible for any amount in excess of the amount
by which the total amount received by such Holder with respect to its sale of Transfer Restricted
Securities pursuant to a Registration Statement exceeds (i) the amount paid by such Holder for such
Transfer Restricted Securities and (ii) the amount of any damages that such Holder, its directors,
officers or any Person who controls such Holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission.

     (c) In case any action shall be commenced involving any person in respect of which indemnity
may be sought pursuant to Section 8(a) or 8(b)
(the“indemnified party”), the indemnified
party shall promptly notify the person against whom such indemnity may be sought (the“indemnifying
person”) in writing and the indemnifying party shall assume and control the defense of such action,
including the employment of counsel reasonably satisfactory to the indemnified party and the
payment of all fees and expenses of such counsel, as incurred (except that in the case of any
action in respect of which indemnity may be sought pursuant to both Sections 8(a) and 8(b), a
Holder shall not be required to assume the defense of such action pursuant to this Section 8(c),
but may employ separate counsel and participate in the defense thereof, but the fees and expenses
of such counsel, except as provided below, shall be at the expense of the Holder). Any indemnified
party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of the
indemnified party unless (i) the employment of such counsel shall have been specifically authorized
in writing by the indemnifying party, (ii) the indemnifying party shall have failed to assume the
defense of such action or employ counsel reasonably satisfactory to the indemnified party or (iii)
the named parties to any such action (including any impleaded parties) include both the indemnified
party and the indemnifying party, and the indemnified party shall have been advised by such counsel
that there may be one or more legal defenses available to it which are different from or additional
to those available to the indemnifying party (in which case the indemnifying party shall not have
the right to assume the defense of such action on behalf of the indemnified party). In any such
case, the indemnifying party shall not, in connection with any one action or separate but
substantially similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than one separate firm of
attorneys (in addition to any local counsel) for all indemnified parties and all such fees and
expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by a
majority of the Holders, in the

16

 

case of the parties indemnified pursuant to Section 8(a), and by the Company and Guarantors, in the
case of parties indemnified pursuant to Section 8(b). No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement or compromise of, or consent
to the entry of judgment with respect to, any pending or threatened action in respect of which the
indemnified party is or could have been a party and indemnity or contribution may be or could have
been sought hereunder by the indemnified party, unless such settlement, compromise or judgment (i)
includes an unconditional release of the indemnified party from all liability on claims that are
the subject matter of such action and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act, by or on behalf of the indemnified party. No indemnifying
party shall be liable for any settlement on its behalf, effectuated without its consent.

     (d) To the extent that the indemnification provided for in this Section 8 is unavailable to
an indemnified party in respect of any losses, claims, damages, liabilities or judgments referred
to therein, then each indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or judgments (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Guarantors, on the one hand, and the Holders, on
the other hand, from their sale of Transfer Restricted Securities or (ii) if the allocation
provided by clause 8(d)(i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above but also
the relative fault of the Company and the Guarantors, on the one hand, and of the Holder, on the
other hand, in connection with the statements or omissions which resulted in such losses, claims,
damages, liabilities or judgments, as well as any other relevant equitable considerations. The
relative fault of the Company and the Guarantors, on the one hand, and of the Holder, on the other
hand, shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or such Guarantors, on the one hand, or by the
Holder, on the other hand, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid or payable by a
party as a result of the losses, claims, damages, liabilities and judgments referred to above
shall be deemed to include, subject to the limitations set forth in the second paragraph of
Section 8(a), any outside legal counsel or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim.

     The Company, the Guarantors and each Holder agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities or judgments referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any outside legal counsel or other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any matter, including any action that could have given rise to such losses, claims,
damages, liabilities or judgments. Notwithstanding the provisions of this Section 8, no Holder,
its directors, its officers or any Person, if any, who controls such Holder shall be required to
contribute, in the aggregate, any amount in excess of

17

 

the amount by which the total received by such Holder with respect to the sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the amount paid by such
Holder for such Transfer Restricted Securities and (ii) the amount of any damages which such Holder
has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of
Section 1l(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to
this Section 8(c) are several in proportion to the respective principal amount of Transfer
Restricted Securities held by each Holder hereunder and not joint.

SECTION 9. RULE 144A AND RULE 144

     The Company and the Guarantors agree with each Holder, for so long as any Transfer Restricted
Securities remain outstanding and during any period in which the Company or the Guarantors (i) are
not subject to Section 13 or 15(d) of the Exchange Act, to make available, upon request of any
Holder, to such Holder or beneficial owner of Transfer Restricted Securities in connection with
any sale thereof and any prospective purchaser of such Transfer Restricted Securities designated
by such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the
Securities Act in order to permit resales of such Transfer Restricted Securities pursuant to Rule
144A, and (ii) are subject to Section 13 or 15 (d) of the Exchange Act, to make all filings
required thereby in a timely manner in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144.

SECTION 10. MISCELLANEOUS

     (a) (intentionally
omitted)

     (b) No Inconsistent Agreements. Neither the Company nor any Guarantor will, on or
after the date of this Agreement, enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. Neither the Company nor any Guarantor has previously entered into any
agreement granting any registration rights with respect to its securities to any Person that would
require such securities to be included in any Registration Statement filed hereunder. The rights
granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the
rights granted to the holders of the Company’s and the Guarantors’ securities under any agreement
in effect on the date hereof.

     (c) Amendments and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to or departures from the provisions hereof may
not be given unless (i) in the case of Section 5 hereof and this Section 10(c)(i), the Company has
obtained the written consent of Holders of all outstanding Transfer Restricted Securities and (ii)
in the case of all other provisions hereof, the Company has obtained the written consent of Holders
of a majority of the outstanding principal amount of Transfer Restricted Securities (excluding
Transfer Restricted Securities held by the Company or its Affiliates). Notwithstanding the
foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to
the rights of Holders whose Transfer Restricted Securities are being tendered pursuant to the
Exchange Offer, and that does not affect directly or indirectly the

18

 

rights of other Holders whose Transfer Restricted Securities are not being tendered pursuant to
such Exchange Offer, may be given by the Holders of a majority of the outstanding principal amount
of Transfer Restricted Securities subject to such Exchange Offer.

     (d) Third Party Beneficiary. The Holders shall be third party beneficiaries to the
agreements made hereunder between the Company and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the
extent they may deem such enforcement necessary or advisable to protect its rights or the rights of
Holders hereunder.

     (e) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified,
return receipt requested), telex, telecopier, or air courier guaranteeing overnight delivery:

     (i) if to a Holder, at the address set forth on the records of the Registrar
under the Indenture, with a copy to the Registrar under the Indenture; and

     (ii) if to the Company or the Guarantors:

MetroPCS Wireless, Inc.

8144 Walnut Hill Lane

Suite 800

Dallas, Texas 75231

Attention: Senior Vice President, General Counsel and Secretary

With a copy to:

Baker Botts, LLP

2001 Ross Avenue

Dallas, Texas 75201

Attention: Andrew Baker

     (iii) if to the Initial Purchasers:

Bear, Stearns & Co. Inc.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Banc of America Securities LLC

     c/o Bear Stearns & Co. Inc.

     383 Madison Avenue

     New York, NY 10179 

Attention.: Corporate Finance Department

with a copy to:

19

 

Latham & Watkins LLP

885 Third Avenue, Suite 1000

New York, NY 10022

Attention.: Marc D. Jaffe

     All such notices and communications shall be deemed to have been duly given at the time
delivered by hand, if personally delivered; five business days after being deposited in the mail,
postage prepaid, if mailed; when receipt acknowledged, if telecopied; and on the next business
day, if timely delivered to an air courier guaranteeing overnight delivery.

     Copies of all such notices, demands or other communications shall be concurrently delivered
by the Person giving the same to the Trustee at the address specified in the Indenture.

     (f) Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of each of the parties, including without limitation and
without the need for an express assignment, subsequent Holders; provided, that nothing herein shall
be deemed to permit any assignment, transfer or other disposition of Transfer Restricted Securities
in violation of the terms hereof or of the Purchase Agreement or the Indenture. If any transferee
of any Holder shall acquire Transfer Restricted Securities in any manner, whether by operation of
law or otherwise, such Transfer Restricted Securities shall be held subject to all of the terms of
this Agreement, and by taking and holding such Transfer Restricted Securities such Person shall be
conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such Person shall be entitled to receive the benefits
hereof.

     (g) Counterparts. This Agreement may be executed in any number of counterparts and
by the parties hereto in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

     (h) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF.

     (j) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     (k) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to

20

 

herein with respect to the registration rights granted with respect to the Transfer Restricted
Securities. This Agreement supersedes all prior agreements and understandings between the parties
with respect to such subject matter.

[Signature Pages Follow]

21

 

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

	 	 	 	 	 
	 	METROPCS WIRELESS, INC.

 	 
	 	By:  	Roger D. Linquist
 	 
	 	Name:  	Roger D. Linquist 	 
	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	METROPCS AWS, LLC 

METROPCS V, INC.1

METROPCS CALIFORNIA, LLC 

METROPCS FLORIDA, LLC 

METROPCS GEORGIA, LLC 

METROPCS MICHIGAN, INC. 

METROPCS TEXAS, LLC 

GWI PCS1, INC. 

METROPCS COMMUNICATIONS, INC.

 	 
	 	By:  	Roger D. Linquist
 	 
	 	Name:  	Roger D. Linquist 	 
	 	Title:  	President and Chief Executive Officer 	 
	 

 

			
	1	 	To be renamed MetroPCS, Inc. in connection with the Company’s planned
Restructuring Transactions (as defined in the Purchase Agreement).

Signature Page to Registration Rights Agreement

 

 

Accepted and agreed to as of the date first above written:

	 	 	 	 	 
	BEAR, STEARNS & CO. INC.	 	 
	 
	 	 	 	 
	By: 

Name:

	 	Lawrence B. Alletto
 

Lawrence B. Alletto
	 	 
	Title:

	 	Senior Managing Director	 	 
	 
	 	 	 	 
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED	 	 
	 
	 	 	 	 
	By: 

Name:

	 	Henrik Dahlback
 

Henrik Dahlback
	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	BANC OF AMERICA SECURITIES LLC	 	 
	 
	 	 	 	 
	By: 

Name:

	 	Daniel J. Kelly
 

Daniel J. Kelly
	 	 
	Title:

	 	Managing Director	 	 

Signature Page to Registration Rights Agreement

 

 

Schedule
I

Guarantors

	 	 	 	 	 
	 	 	Jurisdiction of	 
	
Entity
	 	Organization	 
	MetroPCS AWS, LLC
	 	Delaware
	MetroPCS V, Inc.2
	 	Delaware
	MetroPCS California, LLC
	 	Delaware
	MetroPCS Florida, LLC
	 	Delaware
	MetroPCS Georgia, LLC
	 	Delaware
	MetroPCS Michigan, Inc.
	 	Delaware
	MetroPCS Texas, LLC
	 	Delaware
	GWI PCSl, Inc.
	 	Delaware
	MetroPCS Communications, Inc.
	 	Delaware

 

			
	2	 	To be renamed MetroPCS, Inc. in connection with the Company’s planned Restructuring
Transactions (as defined in the Purchase Agreement).

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