Document:

Purchase Agreement

 EXHIBIT 10.20 
  
 Execution Copy 
  
 TIME WARNER TELECOM HOLDINGS INC. 
  
 $200,000,000 of 9.25% SENIOR NOTES DUE 2014 
  
 and 
  
 $240,000,000 of SECOND PRIORITY SENIOR SECURED FLOATING RATE NOTES DUE 2011 
  
 PURCHASE AGREEMENT 
  
 February 10, 2004. 

 February 10, 2004 
  

Lehman Brothers Inc. 
 Morgan Stanley & Co. Incorporated 
 Bear, Stearns & Co. Inc. 
 Wachovia Capital Markets, LLC 
  
 c/o Lehman Brothers Inc. 
       745 Seventh Avenue 
       New York, New York 10019

  
 Dear Sirs and Mesdames: 
  
 Time Warner Telecom Holdings Inc., a Delaware corporation (the
“Company”), proposes to issue and sell to the several purchasers named in Schedule I hereto (the “Initial Purchasers”) (i) $200,000,000 principal amount of its Senior Notes due 2014 (the “Unsecured
Securities”) to be issued pursuant to the provisions of an Indenture dated as of the Closing Date (as defined in Section 4 hereof) (the “Unsecured Indenture”) among the Company, Time Warner Telecom Inc., the parent
of the Company (“TWT Inc.”), certain subsidiaries of the Company and TWT Inc. listed in Schedule II hereto (collectively, the “Subsidiary Guarantors” and together with TWT Inc., the “Guarantors”)
and a trustee to be named by the Company (the “Trustee”), and (ii) $240,000,000 principal amount of its Second Priority Senior Secured Floating Rate Notes due 2011 (the “Secured Securities”, together with the
Unsecured Securities, the “Securities”) to be issued pursuant to an Indenture dated as of the Closing Date (the “Secured Indenture” and together with the Unsecured Indenture, the “Indentures”) among
the Company, the Guarantors and the Trustee. The obligations of the Company under the Unsecured Securities and the Unsecured Indenture will be unconditionally guaranteed on a senior unsecured basis by the Guarantors pursuant to the terms of the
Unsecured Indenture (the “Unsecured Guarantees”). The obligations of the Company under the Secured Securities and the Secured Indenture will be unconditionally guaranteed on a second priority senior secured basis by the Guarantors
pursuant to the terms of the Secured Indenture (the “Secured Guarantees” and together with the Unsecured Guarantees, the “Guarantees”). 
  
 The Securities will be offered without being registered under the Securities Act of 1933, as amended (the
“Securities Act”), to qualified institutional buyers in compliance with the exemption from registration provided by Rule 144A under the Securities Act and in offshore transactions in reliance on Regulation S under the Securities Act
(“Regulation S”). 
  
 The Initial Purchasers and
their direct and indirect transferees will be entitled to the benefits of a Registration Rights Agreement dated the Closing Date among the Company, the Guarantors and the Initial Purchasers (the “Registration Rights Agreement”).

  
 In connection with the sale of the Securities, the Company and
the Guarantors have prepared a preliminary offering memorandum (the “Preliminary Memorandum”) and will prepare a final offering memorandum (the “Final Memorandum” and, with the Preliminary Memorandum, each a
“Memorandum”) including or incorporating by reference descriptions of 
  

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 the terms of the Securities, the terms of the offerings and a description of the Company and the Guarantors. As used
herein, the term “Memorandum” shall include in each case the documents incorporated by reference therein. The terms “supplement”, “amendment” and “amend” as used herein with respect to a
Memorandum shall include all documents deemed to be incorporated by reference in the Preliminary Memorandum or Final Memorandum that are filed subsequent to the date of such Memorandum with the Securities and Exchange Commission (the
“Commission”) pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 
  
 Pursuant to the Security Agreement to be dated as of the Closing Date (the “Security Agreement” and together with any mortgages, deeds of
trust, pledge agreements, collateral assignments, security agreements, fiduciary transfers, debentures or other instruments or agreements evidencing or creating any security interests in favor of the Collateral Agent (as defined below) for the
benefit of the holders of the Secured Securities (the “Second Lien Creditors”) in all or any portion of the Collateral, in each case, as amended, amended and restated, extended, renewed, supplemented or otherwise modified from time
to time, in accordance with the terms thereof, the “Security Documents”) among the Company, the Guarantors, the Trustee (in such capacity, the “Collateral Agent”) and the other parties thereto, the Secured
Securities are to be secured by a valid and enforceable perfected second-priority security interest (subject to certain permitted liens and exceptions) in the property so described in the Security Agreement (the “Collateral”). On
the Closing Date, the Trustee under the Secured Indenture will enter into an Intercreditor Agreement with a collateral agent under the Company’s new credit facility with respect to the collateral securing such new credit facility (the
“Intercreditor Agreement”). 
  
 1.
Representations and Warranties. Each of the Company and the Guarantors, jointly and severally, represents and warrants to, and agrees with, you that: 
  
 (a) (i) Each document, if any, filed or to be filed pursuant to the Exchange Act and incorporated by reference in either Memorandum
complied or will comply when so filed in all material respects with the Exchange Act and the applicable rules and regulations of the Commission thereunder and (ii) the Preliminary Memorandum does not contain and the Final Memorandum, in the form
used by the Initial Purchasers to confirm sales and on the Closing Date, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not apply to statements or omissions in either Memorandum based upon information relating to any Initial Purchaser furnished to the
Company in writing by such Initial Purchaser through you expressly for use therein. 
  
 (b) Each of the Company and TWT Inc. has been duly incorporated, is validly existing as a corporation in good standing under the laws of
the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as described in each Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction in
which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the 
  

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 failure to be so qualified or be in good standing would not have a material adverse effect on TWT Inc.
and its subsidiaries, taken as a whole. For the purpose of this Agreement, the term “subsidiary” refers to all direct and indirect subsidiaries. 
  
 (c) Each subsidiary of TWT Inc. (other than the Company) has been duly incorporated or, in the case of partnerships or limited liability
companies, duly organized, is validly existing as a corporation, a partnership or a limited liability company, as the case may be, in good standing under the laws of the jurisdiction of its incorporation or organization, has the corporate power or
power as a partnership or limited liability company, as applicable and authority to own its property and to conduct its business as described in each Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on TWT Inc. and its
subsidiaries, taken as a whole; all of the issued shares of capital stock of each subsidiary of TWT Inc. that is a corporation have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly
by TWT Inc. and the Company, free and clear of any security, interest, mortgage, pledge, lien, encumbrance or claim (collectively, “Liens”), except for security interests granted pursuant to the Security Documents and the Liens
expressly permitted under the Indentures (“Permitted Liens”), and all of the partnership interests and membership interests in each subsidiary of TWT Inc. that is a partnership or a limited liability company, as the case may be, are
owned directly or indirectly by TWT Inc. and the Company, free and clear of all Liens, except for Permitted Liens. 
  
 (d) This Agreement has been duly authorized, executed and delivered by the Company and the Guarantors. 
  
 (e) The Secured Securities and the Unsecured Securities have
been duly authorized by the Company and, when executed and authenticated in accordance with the provisions of the Secured Indenture and the Unsecured Indenture (as the case may be) and delivered to and paid for by the Initial Purchasers in
accordance with the terms of this Agreement, will be valid and binding obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally
and general principles of equity, and will be entitled to the benefits of the Secured Indenture and the Unsecured Indenture (as the case may be) and the Registration Rights Agreement. 
  
 (f) The Secured Guarantees and the Unsecured Guarantees have been duly authorized by each of the Guarantors
and, when executed and delivered by each Guarantor, will be valid and binding obligations of such Guarantor, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights
generally and general principles of equity, and will be entitled to the benefits of the Secured Indenture and the Unsecured Indenture (as the case may be) and the Registration Rights Agreement. 
  

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 (g) Each of the Secured Indenture and the Unsecured Indenture has been duly authorized
and, when executed and delivered by the Company and each Guarantor, will be a valid and binding agreement of the Company and each Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws
affecting creditors’ rights generally and general principles of equity. 
  
 (h) Each of the Registration Rights Agreement and the Security Documents has been duly authorized and, when executed and delivered by the Company and each Guarantor, will be a valid and binding agreement of the
Company and each Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity and except as rights to indemnification
and contribution under the Registration Rights Agreement may be limited under applicable law. 
  
 (i) (i) The Security Documents, upon their execution and delivery by the Company and each of the Guarantors, will create a valid and
enforceable security interest in the Collateral in favor of the Collateral Agent for the benefit of the Second Lien Creditors and (ii) all material agreements which are part of the Collateral and to which the Company or any Guarantor is a party or
by which it is bound are valid, binding and enforceable against the Company or such Guarantor and, to the Company’s or such Guarantor’s knowledge, are valid and binding and enforceable against the other party or parties thereto, have not
been amended, amended and restated, supplemented or otherwise modified, and are in full force and effect, except, in each case, as the enforceability thereof may be limited by applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and by equitable principles of general applicability. 
  
 (j) The Company and the Guarantors own the Collateral, free and clear of any Liens, other than Permitted Liens. 
  
 (k) Upon their execution and delivery by the Company and
each Guarantor, the Security Documents will create a valid security interest in the Collateral in favor of the Collateral Agent for the benefit of the Second Lien Creditors. Upon the filing of UCC-1 financing statements in the offices of the
Secretary of State of the State of Delaware against the Company and each Guarantor covering the Collateral owned by each, all filings necessary to perfect a security interest in the Collateral (to the extent a security interest in the Collateral is
capable of being perfected by filing) under the Uniform Commercial Code will have been duly made. Security interests in certain of the Collateral can only be perfected by “control” (as such term is defined in the Uniform Commercial Code)
and the Collateral Agent’s security interest in such Collateral will only be perfected if the Collateral Agent has control of such Collateral. Security interests in certain of the Collateral may be perfected either by filing or by control.
While the Collateral Agent’s security interest in such Collateral may be perfected by filing or by control, a superior priority may be afforded to a security interest in such Collateral perfected by control. The Company and the Guarantors have
taken, or with respect to those Subsidiary Guarantors for which regulatory approval is required in connection with their obligations under the transactions contemplated by this Agreement (in each case 
  

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 pursuant to the terms of the Secured Indenture) will as soon as practicable take upon receiving such
regulatory approvals, all necessary action under the Uniform Commercial Code to provide control over all Collateral which must be perfected by control or which enjoys a superior priority if perfected by control as opposed to perfection by filing,
subject in each case to certain control rights of holders of Liens given superior priority to the Liens of the Second Lien Creditors by the terms of the Indenture and the Intercreditor Agreement. The Company and each Guarantor, subject to the
limitations expressed in this paragraph (k), have taken all necessary steps under the Uniform Commercial Code to provide the Collateral Agent with a perfected second priority lien in and to the Collateral (subject to no Liens other than Permitted
Liens). 
  
 (l) (i) The execution and delivery by
the Company and each Guarantor of, and the performance by the Company and each Guarantor of its obligations under, this Agreement, the Secured Indenture, the Unsecured Indenture, the Registration Rights Agreement, the Secured Securities and the
Unsecured Securities (in the case of the Company), the Unsecured Guarantees and the Secured Guarantees (in the case of the Guarantors) and the Security Documents, (ii) the grant by the Company and the Guarantors of the Liens granted by them pursuant
to the Security Documents, (iii) the perfection and maintenance of the Liens created under the Security Documents (including the second priority nature thereof) and (iv) the exercise by the Collateral Agent of the remedies in respect of the
Collateral pursuant to the Security Documents, will not contravene any provision of applicable law or the certificate of incorporation or by-laws of TWT Inc. or any of its subsidiaries or any agreement or other instrument binding upon TWT Inc. or
any of its subsidiaries that is material to TWT Inc. and its subsidiaries, taken as a whole, or any judgment, order or decree of any governmental body, agency or court having jurisdiction over TWT Inc. or any of its subsidiaries, and no consent,
approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company or each Guarantor of its obligations under this Agreement, the Secured Indenture, the Unsecured Indenture, the
Registration Rights Agreement, the Secured Securities and the Unsecured Securities (in the case of the Company), the Secured Guarantees and the Unsecured Guarantees (in the case of the Guarantors) or the Security Documents, except (1) such as may be
required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the Securities, (2) by Federal and state securities laws with respect to the Company’s and each Guarantor’s obligations under the
Registration Rights Agreement, (3) as set forth in the Memorandum, (4) such other consents and approvals as shall have been obtained on or prior to the date of this Agreement and (5) regulatory approvals required in connection with the perfection of
security interests granted by certain Subsidiary Guarantors. 
  
 (m) There has not occurred any material adverse change, or any development involving a prospective material adverse change, in the condition, financial or otherwise, or in the earnings, business or operations of TWT
Inc. and its subsidiaries, taken as a whole, from that set forth in the Memorandum. 
  
 (n) There are no legal or governmental proceedings pending or, to the knowledge of the Company, threatened to which TWT Inc. or any of its
subsidiaries is a party or to which any of the properties of TWT Inc. or any of its subsidiaries is subject 
  

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 other than proceedings accurately described in all material respects in each Memorandum and proceedings
that would not have (i) a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole, or on the power or ability of the Company or the Guarantors to perform their obligations under this Agreement, the Secured Indenture, the Unsecured
Indenture, the Registration Rights Agreement, the Secured Securities and the Unsecured Securities (in the case of the Company), the Secured Guarantees and the Unsecured Guarantees (in the case of the Guarantors) or the Security Documents or to
consummate the transactions contemplated by the Memorandum or (ii) a material adverse effect on the value of the Collateral. 
  
 (o) TWT Inc. and its subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws,
failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, have a material adverse effect on TWT Inc. and its
subsidiaries, taken as a whole. 
  
 (p) There are
no costs or liabilities associated with Environmental Laws (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval,
any related constraints on operating activities and any potential liabilities to third parties) which would, singly or in the aggregate, have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole. 
  
 (q) Neither the Company nor any Guarantor is, and after
giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in the Memorandum neither the Company nor any Guarantor will be required to register as, an “investment company” as such term
is defined in the Investment Company Act of 1940, as amended. 
  
 (r) Neither the Company, any Guarantor nor any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act, an “Affiliate”) of the Company or any Guarantor has 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 will be integrated with the sale of the Securities in a manner that would require the
registration under the Securities Act of the Securities or (ii) engaged in any form of general solicitation or general advertising in connection with the offering of the Securities (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; provided, however, that, in each case, no such representation or warranty is made by the Company or any Guarantor with respect to
any actions taken by the Initial Purchasers. 
  

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 (s) None of the Company, any Guarantor, their Affiliates or any person acting on its or
their behalf has engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with respect to the Securities and the Company, each Guarantor and their Affiliates and any person acting on its or their behalf have
complied and will comply with the offering restrictions requirement of Regulation S, except no representation, warranty or agreement is made by the Company or any Guarantor in this paragraph with respect to the Initial Purchasers. 
  
 (t) Assuming that the representations and warranties of the
Initial Purchasers in Section 7 are true, correct and complete and assuming compliance by the Initial Purchasers with their covenants in Section 7, it is not necessary in connection with the offer, sale and delivery of the Securities to the Initial
Purchasers in the manner contemplated by this Agreement to register the Securities or the Guarantees under the Securities Act or to qualify the Indentures under the Trust Indenture Act of 1939, as amended. 
  
 (u) The Securities and the Guarantees satisfy the
requirements set forth in Rule 144A(d)(3) under the Securities Act. 
  
 (v) The Securities and the Guarantees conform in all material respects to the description thereof contained in the Memorandum under the heading “Description of Notes.” 
  
 (w) The Security Documents and the Collateral conform in all
material respects to the applicable description thereof contained in the Memorandum under the heading “Description of Notes— Security and Ranking of 2011 Note Liens— Collateral and Security” 
  
 (x) Subsequent to the respective dates as of which
information is given in the Memorandum, (i) TWT Inc. and its subsidiaries have not incurred any material liability or obligation, direct or contingent, nor entered into any material transaction not in the ordinary course of business; (ii) TWT Inc.
and its subsidiaries have not purchased any of its outstanding capital stock, nor has TWT Inc. or the Company declared, paid or otherwise made any dividend or distribution of any kind on its capital stock other than ordinary and customary dividends;
and (iii) there has not been any material change in the capital stock, short-term debt or long-term debt of TWT Inc. and its subsidiaries, taken as a whole, except in each case as set forth or described in the Memorandum. 
  
 (y) TWT Inc. and its subsidiaries have good and marketable
title in fee simple to all real property and good marketable title to all personal property owned by them, in each case free and clear of all liens, encumbrances and defects except for Permitted Liens or such as are described in the Memorandum or
such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by TWT Inc. and its subsidiaries or such as do not, singly or in the aggregate, have or could not result in a
material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; and any real property and buildings held under lease by TWT Inc. and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as
do not interfere with the use made and proposed to be made of such 
  

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 property and buildings by TWT Inc. and its subsidiaries or such as do not, singly or in the aggregate,
have or could not result in a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole, in each case except as described in the Memorandum. 
  

(z) Except as set forth in the Memorandum, TWT Inc. and its subsidiaries own or possess, or can acquire on reasonable terms, all
patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks and trade names,
currently employed by them in connection with the business now operated by them, except where the failure to own or possess or to have the right to acquire any of the foregoing, singly or in the aggregate, does not have a material adverse effect on
TWT Inc. and its subsidiaries, taken as a whole, and neither TWT Inc. nor any of its subsidiaries has received any notice of infringement of or conflict with asserted rights of others with respect to any of the foregoing which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, would have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole. 
  
 (aa) No labor dispute with the employees of TWT Inc. or any of its subsidiaries exists, except as described
in the Memorandum, or, to the knowledge of the Company, is imminent, except for disputes that do not or would not have a material adverse effect on TWT Inc. and its subsidiaries taken as a whole; and the Company is not aware of any existing,
threatened or imminent labor disturbance by the employees of any of its principal suppliers or contractors that could have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole. 
  
 (bb) TWT Inc. and its subsidiaries are insured by insurers
of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; and neither TWT Inc. nor any of its subsidiaries has any reason to believe that it
will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a material adverse effect on
TWT Inc. and its subsidiaries, taken as a whole, except as described in the Memorandum. 
  
 (cc) TWT Inc. and its subsidiaries possess all permits, licenses, rights of way, approvals, consents and other authorizations issued by
the appropriate federal, state, local or foreign regulatory agencies or bodies (including the Federal Communications Commission (the “FCC”), the public utilities commission, or any equivalent body, of each state in which TWT Inc.
and its subsidiaries do business and any other relevant state or local governmental department, commission, board, bureau, agency, court or other authority thereof (the “Local Authorities”)) required for the conduct of the
telecommunications business now operated by TWT Inc. and its subsidiaries (collectively, the “Governmental Licenses”), except where the failure to possess any such Governmental Licenses would not, singly or in the aggregate, have a
material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; TWT Inc. and its subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, singly or
in the aggregate, 
  

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 have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; all of the
Governmental Licenses are valid and in full force and effect, except where the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, have a
material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; there is no outstanding adverse judgment, decree or order that has been issued by the FCC or any of the Local Authorities against TWT Inc. or any of its subsidiaries and
which, singly or in the aggregate, would have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; and neither TWT Inc. nor any of its subsidiaries has received any notice of or is aware of proceedings relating to the
revocation or modification of any such Governmental Licenses or, except as set forth in the Memorandum, that would otherwise affect the operations of TWT Inc. or its subsidiaries and which, singly or in the aggregate, would have a material adverse
effect on TWT Inc. and its subsidiaries, taken as a whole. 
  
 (dd) TWT Inc. and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance 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 generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences. 
  
 2. Agreements to Sell and Purchase. The
Company hereby agrees to sell to the several Initial Purchasers, and each Initial Purchaser, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly,
to purchase from the Company the respective principal amount of (i) Secured Securities set forth in Schedule I hereto opposite its name at a purchase price of 97.875% of the principal amount thereof (the “Secured Securities Purchase
Price”) and (ii) Unsecured Securities set forth in Schedule I hereto opposite its name at the purchase price of 97.875% of the principal amount thereof (the “Unsecured Securities Purchase Price”, together with the Secured
Securities Purchase Price, the “Purchase Price”). 
  
 The Company and each Guarantor hereby agree that, without the prior written consent of Lehman Brothers Inc. on behalf of the Initial Purchasers, it will not, during the period beginning on the date hereof and continuing to and including the
Closing Date, offer, sell, contract to sell or otherwise dispose of any debt of the Company or any of the Guarantors or warrants to purchase debt of the Company or any of the Guarantors substantially similar to the Securities (other than the sale of
the Securities under this Agreement.) 
  
 3. Terms of Offering.
You have advised the Company and the Guarantors that the Initial Purchasers will make an offering of the Securities purchased by the Initial Purchasers hereunder on the terms to be set forth in this Agreement and the Memorandum, as soon as
practicable after this Agreement is entered into as in your judgment is advisable. 
  

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 4. Payment and Delivery. Payment for the Securities shall be made to the Company in Federal or
other funds immediately available in New York City against delivery of such Securities for the respective accounts of the several Initial Purchasers at 10:00 a.m., New York City time, on February 20, 2004, or at such other date and time, not later
than March 1, 2004, as shall be designated in writing by Lehman Brothers Inc. The time and date of such payment are hereinafter referred to as the “Closing Date.” 
  
 Certificates for the Securities shall be in definitive form or global form, as specified by Lehman Brothers Inc., and
registered in such names and in such denominations as Lehman Brothers Inc. shall request in writing not later than one full business day prior to the Closing Date. The certificates evidencing the Securities shall be delivered to you on the Closing
Date for the respective accounts of the several Initial Purchasers, with any transfer taxes payable in connection with the transfer of the Securities to the Initial Purchasers duly paid, against payment of the Purchase Price therefor. 
  
 5. Conditions to the Initial Purchasers’ Obligations. The several
obligations of the Initial Purchasers to purchase and pay for the Securities on the Closing Date are subject to the following conditions: 
  
 (a) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date: 
  
 (i) there shall not have occurred any downgrading, nor shall
any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any of TWT Inc.’s or the Company’s securities by
any “nationally recognized statistical rating organization,” as such term is defined for purposes of Rule 436(g)(2) under the Securities Act; and 
  
 (ii) there shall not have occurred any change, or any development involving a prospective change, in the condition, financial or
otherwise, or in the earnings, business or operations of TWT Inc. and its subsidiaries, taken as a whole, from that set forth in the Memorandum (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement) that, in
your judgment, is material and adverse and that makes it, in your judgment, impracticable to market the Secured Securities or the Unsecured Securities on the terms and in the manner contemplated in the Memorandum. 
  
 (b) The Initial Purchasers shall have received on the
Closing Date (i) a certificate, dated the Closing Date and signed by an executive officer of the Company, to the effect set forth in Section 5(a)(i) and to the effect that the representations and warranties of the Company contained in this Agreement
are true and correct as of the Closing Date and the Company has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date; and (ii) a certificate, dated
the Closing Date and signed by an executive officer of each Guarantor, to the effect set forth in Section 5(a)(i) and to the effect that the representations and warranties of such Guarantor contained in this Agreement are true and correct as of the
Closing Date and such Guarantor has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date. 
  

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 The officer signing and delivering such certificate may rely upon the best of his or her
knowledge as to proceedings threatened. 
  
 (c)
The Initial Purchasers shall have received on the Closing Date an opinion of Faegre & Benson LLP, outside counsel for the Company and the Guarantors, dated the Closing Date, to the effect that: 
  
 (i) Each of the Company and TWT Inc. has been duly
incorporated, and, based solely on a certificate of good standing from the Secretary of State of the State of Delaware, is a corporation validly existing and in good standing under the laws of the State of Delaware, with full corporate power and
authority to conduct its business as described in the Memorandum; 
  
 (ii) to such counsel’s knowledge, (A) there are not any pending or, to the knowledge of such counsel, threatened governmental proceedings before any court or governmental agency or authority or any arbitrator to
which TWT Inc. or any of its subsidiaries is a party or to which any of the properties of TWT Inc. or any of its subsidiaries is subject of a character required to be disclosed in the Memorandum which is not disclosed as required, and (B) there is
no contract, indenture, mortgage, loan agreement, note, lease or other document of a character required to be described in the Memorandum which is not described as required; 
  
 (iii) the Secured Securities and Unsecured Securities conform in all material respects to the description
thereof contained in the Memorandum; the Secured Securities and Unsecured Securities have been duly authorized by the Company and, when executed and authenticated in accordance with the provisions of the Secured Indenture and the Unsecured Indenture
(as the case may be) and delivered to and paid for by the Initial Purchasers in accordance with the terms of the Purchase Agreement, will constitute legal, valid and binding obligations of the Company, entitled to the benefits of the Secured
Indenture and the Unsecured Indenture (as the case may be) and the Registration Rights Agreement, and enforceable against the Company in accordance with their terms (subject to applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer and other similar laws affecting creditors’ rights generally and general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealings, regardless of whether in a
proceeding in equity or at law); 
  
 (iv) the
Secured Guarantees and Unsecured Guarantees conform in all material respects to the description thereof contained in the Memorandum; the Secured Guarantees and Unsecured Guarantees have been duly authorized by the Guarantors and, when executed and
authenticated in accordance with the provisions of the Secured Indenture and the Unsecured Indenture (as the case may be) and delivered to and paid for by the Initial Purchasers in accordance with the terms of the Purchase Agreement, will constitute
legal, valid and binding 
  

 -12- 

 obligations of each Guarantor, entitled to the benefits of the Secured Indenture and the Unsecured
Indenture (as the case may be) and the Registration Rights Agreement, and enforceable against the Guarantors in accordance with their terms (subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other
similar laws affecting creditors’ rights generally and general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealings, regardless of whether in a proceeding in equity or at
law); 
  
 (v) Each of the Security Documents
conform in all material respects to the description thereof contained in the Memorandum, the description of Collateral contained in the Memorandum conforms in all material respects to the description of the Collateral contained in the Security
Documents, and each Security Document has been duly authorized by the Company and the Guarantors and, when executed, will constitute legal, valid and binding obligations of the Company and each Guarantor and enforceable against the Company and the
Guarantors in accordance with their terms (subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar laws affecting creditors’ rights generally and general principles of equity, including,
without limitation, concepts of materiality, reasonableness, good faith and fair dealings, regardless of whether in a proceeding in equity or at law); 
  
 (vi) each of the Secured Indenture, the Unsecured Indenture, the Registration Rights Agreement and the Security Documents has been duly
authorized, executed and delivered by, and constitutes a legal, valid and binding obligation of, the Company and each Guarantor, enforceable in accordance with its terms (subject to applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer and other similar laws affecting creditors’ rights generally and general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealings, regardless of whether in a
proceeding in equity or at law, and subject to rights to indemnification and contribution under the Registration Rights Agreement as may be limited under applicable law); 
  
 (vii) the Purchase Agreement has been duly authorized, executed and delivered by the Company and each
Guarantor; 
  
 (viii) the execution and delivery
by the Company and each Guarantor of, and the performance by the Company and each Guarantor of their obligations under, this Agreement, the Secured Indenture, the Unsecured Indenture, the Registration Rights Agreement, the Security Documents, the
Secured Securities and the Unsecured Securities (in the case of the Company) and the Secured Guarantees and the Unsecured Guarantees (in the case of the Guarantors) will not contravene any provision of applicable law or the certificate of
incorporation or by-laws of TWT Inc. or its subsidiaries or, to such counsel’s knowledge, any judgment, order or decree of any governmental body, agency or court having jurisdiction over TWT Inc. or its subsidiaries, and no consent, approval,

  

 -13- 

 authorization or order of, or qualification with, any governmental body or agency is required for the
performance by the Company and each Guarantor of their obligations under this Agreement, the Secured Indenture, the Unsecured Indenture, the Registration Rights Agreement, the Security Documents, the Secured Securities and the Unsecured Securities
(in the case of the Company) or the Secured Guarantees and the Unsecured Guarantees (in the case of the Guarantors), except such as may be required by the securities or Blue Sky laws of the various states in connection with the offer and sale of the
Securities and by Federal and state securities laws with respect to the Company’s and the Guarantors’ obligations under the Registration Rights Agreement and except for such as may be required by the FCC or Local Authorities, as to which
such counsel expresses no opinion; 
  
 (ix) the
statements made in the Memorandum under the captions, “Description of Notes,” “Description of Certain Indebtedness,” “Transfer Restrictions” and “Certain Material United States Federal Tax Considerations” in
each case insofar as such statements constitute summaries of the legal matters, documents or proceedings referred to therein, fairly present the information called for with respect to such legal matters, documents and proceedings and fairly
summarize the matters referred to therein; 
  
 (x) neither the Company nor the Guarantors are, and after giving effect to the offering and sale of the Secured Securities and the Unsecured Securities and the application of the proceeds thereof as described in the Memorandum, will be
required to register as, an “investment company” as such term is defined in the Investment Company Act of 1940, as amended; 
  
 (xi) assuming (i) the accuracy of, and compliance with, the representations, warranties and covenants of the Company and each Guarantor in
Sections 1 and 6 of this Agreement and (ii) the accuracy of, and compliance with the representations, warranties and covenants of each Initial Purchaser in Section 7 of this Agreement, it is not necessary in connection with the offer, sale and
delivery of the Secured Securities and the Unsecured Securities in the manner contemplated by this Agreement and the Memorandum to register the Secured Securities and the Unsecured Securities or the Secured Guarantees and Unsecured Guarantees under
the Securities Act or to qualify the Secured Indenture and the Unsecured Indenture under the Trust Indenture Act of 1939, as amended, it being understood that no opinion is expressed as to any subsequent resale of any Securities; and 
  
 (xii) to such counsel’s knowledge, there are no
statutes or regulations (other than federal, state or local telecommunications statutes or regulations as to which such counsel expresses no opinion) that are required to be disclosed in the Memorandum that are not adequately disclosed as required.

  
 (xiii) The Security Agreement creates in
favor of the Collateral Agent for the benefit of the Second Lien Creditors, as security for the payment of the 
  

 -14- 

 obligations of the Company and the Guarantors under the Secured Indenture and the Guarantee contained
therein, a security interest in the Collateral (as defined in the Security Agreement) of the Company and the Guarantors in which a security interest can be created under Article 9 of the Uniform Commercial Code and is sufficient to create a valid
security interest in any such Collateral in which the Company or the Guarantors hereafter acquire rights (to the extent a security interest therein may be created under the Uniform Commercial Code) when those rights are acquired by the Company or
the Guarantors. 
  
 (xiv) The Collateral Agent
for the benefit of the Second Lien Creditors, will have, upon the filing of UCC-1 financing statements in the offices of the Secretary of State of Delaware against the Company and each Guarantor covering the Collateral owned by each, a perfected
security interest in the Collateral (to the extent a security interest in the Collateral can be perfected by filing). Such filings are sufficient to perfect a security interest in any Collateral in which the Company or the Guarantors hereafter
acquire rights (to the extent a security interest in such after acquired Collateral can be perfected by filing), when those rights are acquired by the Company or the Guarantors. 
  
 Such opinion shall be rendered to the Initial Purchasers at the request of the Company and each Guarantor
and shall so state therein. 
  
 (d) The Initial
Purchasers shall have received on the Closing Date a statement of Faegre & Benson LLP, outside counsel for the Company and each Guarantor, dated the Closing Date, to the effect that: 
  
 Although such counsel has made certain inquiries and investigations in connection with the preparation of
the Memorandum, the limitations inherent in the role of outside counsel are such that such counsel cannot and does not assume any responsibility, implicitly or explicitly, for the accuracy, fairness or completeness of the statements contained or
incorporated by reference in the Memorandum, except insofar as such statements relate to such counsel and except to the extent set forth in paragraph (vii) of such counsel’s opinion to you dated the Closing Date. Subject to the foregoing, such
counsel hereby advises you that such counsel’s work in connection with this matter did not disclose any information that gave such counsel reason to believe that (i) the Final Memorandum, as of its date and as of the date hereof, included or
includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (in each case except for the financial
statements and other information of a statistical, accounting or financial nature included or incorporated by reference therein as to which such counsel does not express any view) or that (ii) each document filed pursuant to the Exchange Act and
incorporated by reference in the Final Memorandum (except for the financial statements and other information of a statistical, accounting or financial nature included therein, as to which such counsel need not express any belief), on the date such
document was filed with the Commission, did not comply as to form in all material respects with the requirements of the Exchange Act and the applicable rules and regulations of the Commission thereunder. 
  

 -15- 

 (e) The Initial Purchasers shall have received on the Closing Date an opinion of Paul B.
Jones, Esq., Senior Vice President and General Counsel to TWT Inc. and its subsidiaries, dated the Closing Date, to the effect that: 
  
 (i) each of the Company and TWT Inc. has been duly incorporated and is validly existing and in good standing under the laws of the State
of Delaware, with full corporate power and authority to own its property and to conduct its business as described in the Memorandum; 
  
 (ii) each of the Company and TWT Inc. is duly qualified to transact business and is in good standing in each jurisdiction in which the
conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on TWT Inc. and its subsidiaries,
taken as a whole; 
  
 (iii) each subsidiary of
TWT Inc. (other than the Company) has been duly incorporated or, in the case of partnerships or limited liability companies, duly organized, is validly existing as a corporation, a partnership or a limited liability company, as the case may be, in
good standing under the laws of the jurisdiction of its incorporation or organization, as the case may be, has the power and authority to own its property and to conduct its business as described in the Memorandum and is duly qualified to transact
business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not
have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; 
  
 (iv) except as otherwise disclosed in the Memorandum, all of the issued shares of capital stock of each subsidiary of TWT Inc. that is a
corporation have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly by TWT Inc. and the Company free and clear of all Liens other than the security interests granted pursuant to Security Documents
and the Liens expressly permitted under the Indentures; and all of the partnership interests and membership interests in each subsidiary of TWT Inc. that is a partnership or limited liability company, are owned directly by TWT Inc. and the Company
free and clear of all Liens other than the security interests granted pursuant to Security Documents and the Liens expressly permitted under the Indentures; 
  
 (v) the statements contained in the Memorandum under the captions “Risk Factors – Several customers account for a significant
portion of our revenue, and some of our customer agreements may not continue due to bankruptcies or other factors,” “Risk Factors – We have experienced reductions in switched access and reciprocal compensation revenue as a result of
regulatory rate reform,” “Risk Factors – We may be adversely affected by changes in the regulation of special access services,” “Risk Factors – We depend on governmental and other authorizations,” “Risk
Factors – We depend on Time 
  

 -16- 

 Warner Cable’s and Advance/Newhouse’s permits, licenses and rights-of-way,” “Risk
Factors – We are controlled by the Class B Stockholders,” “Risk Factors – Time Warner Inc. can sell control of us at any time, and sales by the Class B stockholders could adversely affect us,” “Risk Factors – Each
of the Class B stockholders has veto rights over certain actions,” and “Risk Factors – The Company’s new revolving credit facility and the indentures relating to the notes and the Parent Company’s 10 1/8% senior notes contain restrictive covenants that may limit our flexibility, and breach of those covenants may
cause us to be in default under those agreements; and except as updated in the Memorandum or in any later document incorporated by reference into the Memorandum in TWT Inc.’s Annual Report on Form 10-K for the year ended December 31, 2002 under
the captions “Item 1. Business—Limitation Residential and Content Services,” “Item 1. Business—Competition,” “Item 1. Business—Government Regulation,” “Item 1. Business—Risk Factors—Some of
our customer agreement may not continue, and customers may continue to disconnect services,” “Item 1. Business—Risk Factors—Our senior secured credit facility and the indentures for our 9 3/4% Senior Notes and the 10 1/8% Senior Notes contain restrictive covenants that may limit our flexibility, and breach of those covenants may cause us to be in default under those agreement,”
“Item 1. Business—Risk Factors—We are dependent on Time Warner Cable’s and Advance/Newhouse’s permits, licenses and rights-of-way,” “Item 1. Business—Risk Factors—We are controlled by the Class B
stockholders,” “Item 1. Business—Risk Factors—Each of the Class B Stockholders has veto rights over certain actions,” “Item 1. Business—Risk Factors—The holders of Class B common stock can sell control of the
Company at a time when they do not have a majority economic interest in the Company, and exclude the holders of Class A common stock from participating in the sale,” “Item 1. Business—Risk Factors—We will experience a reduction
in switched access and reciprocal compensation revenue as a result of regulatory rate reform,” “Item 1. Business—Risk Factors—We depend on governmental and other authorizations,” “Item 3. Business—Legal
Proceedings” and “Item 13. Certain Relationships and Related Transactions” and except as updated in the Memorandum or in any later document incorporated by reference in the Memorandum, in TWT Inc.’s definitive proxy statement for
TWT Inc.’s Annual Meeting of Shareholders as filed with the SEC on May 16, 2003 under the caption “Certain Relationships and Related Transactions,” in each case insofar as such statements constitute a summary of the legal or
regulatory matters or legal or regulatory proceedings referred to therein, are correct in all material respects and do not omit a material fact necessary to make the statements contained therein not misleading; 
  
 (vi) to such counsel’s knowledge, the Company and each
Guarantor possesses the governmental licenses required by federal or state telecommunications regulatory bodies necessary for the Company’s and such Guarantor’s existing services (the “Communications Licenses”) and the
Company and each Guarantor is in compliance with the terms and conditions of all such Communications Licenses, except where the failure to so comply would not, singly or in the aggregate, have a material adverse effect on TWT Inc. and its

  

 -17- 

 subsidiaries, taken as a whole, and such Communications Licenses are valid and in full force and effect,
except where the invalidity of such Communications Licenses or the failure of such Communications Licenses to be in full force and effect would not have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; 
  
 (vii) there is no outstanding adverse judgment, decree or
order that has been issued by the FCC or any state telecommunications regulatory body against TWT Inc. and it subsidiaries which, singly or in the aggregate, would have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole,
and, to the best of such counsel’s knowledge, neither TWT Inc. nor any of its subsidiaries is the object of, or threatened by, any proceedings relating to the revocation or modification of any such Communications Licenses or, except as set
forth in the Memorandum, that would otherwise adversely affect the operation of the Company or any Guarantor, which, singly or in the aggregate, would have a material adverse effect on TWT Inc. and it subsidiaries, taken as a whole or which would
materially and adversely affect the Collateral Agent’s or the Second Lien Creditor’s ability to enforce any Security Document or the validity or enforceability of any Security Document; 
  
 (viii) the execution, delivery and performance of the
Purchase Agreement, the Secured Indenture, the Unsecured Indenture, the Registration Rights Agreement, the Security Documents, the Secured Guarantees and the Unsecured Guarantees, the consummation of the transactions contemplated in the Purchase
Agreement, the issuance and sale of the Secured Securities and the Unsecured Securities, and the use of proceeds from the sale of the Secured Securities and the Unsecured Securities to the extent expressly described in the Memorandum under the
caption “Use of Proceeds,” and compliance by the Company and TWT Inc. with their obligations under the Purchase Agreement, the Registration Rights Agreement, the Indentures, the Security Documents, the Securities and the Guarantees do not
and will not, whether with or without the giving of notice or lapse of time or both, result in any violation of any applicable law, statute, rule, regulation, judgment, order, writ or decree, known to such counsel, of any federal or state
telecommunications regulatory body having jurisdiction over the Company or TWT Inc. except for such violations that would not have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole; 
  
 (ix) the execution, delivery and performance of the Secured
Indenture, the Unsecured Indenture, the Security Documents, the Secured Guarantees and the Unsecured Guarantees and compliance by each Subsidiary Guarantor with its obligations under the Indentures, the Security Documents, the Securities and the
Guarantees do not and will not, whether with or without the giving of notice or lapse of time or both, result in any violation of any applicable law, statute, rule, regulation, judgment, order, writ or decree, known to such counsel, of any federal
or state telecommunications regulatory body having jurisdiction over each Subsidiary Guarantor or any of its assets or operations except for such violations 
  

 -18- 

 that would not have a material adverse effect on TWT Inc. and its subsidiaries, taken as a whole;
provided that such counsel may qualify such opinion with respect to the Subsidiary Guarantors in those states set forth in an appendix to his opinion for which regulatory approval is required in connection with the transactions contemplated by this
Agreement; 
  
 (x) to such counsel’s
knowledge, there are no telecommunications statutes or regulations that are required to be described in the Memorandum that are not described as required; and 
  

(xi) the execution and delivery by the Company and each Guarantor of, and the performance by the Company and each Guarantor of their
obligations under, this Agreement, the Registration Rights Agreement, the Secured Indenture, the Unsecured Indenture, the Security Documents, the Secured Securities, the Unsecured Securities, the Secured Guarantees and the Unsecured Guarantees will
not contravene any agreement or other instrument binding upon TWT Inc. or any of its subsidiaries that is material to TWT Inc. and its subsidiaries taken as a whole. 
  
 In rendering opinion (ix) above, the General Counsel may rely, as to matters involving the application of
the laws of Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Minnesota, New Mexico, New Jersey, New York, New Jersey, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Washington and
Wisconsin upon the opinions of special counsel to TWT Inc., the Company or the Subsidiary Guarantors (as the case may be) (which opinions shall be dated, addressed and furnished to the General Counsel on the Closing Date and shall be satisfactory in
form and substance to counsel for the Initial Purchasers, provided that the General Counsel shall state that opinion (vi) above is subject to the qualifications set forth in such opinions of special counsel and provided further that
the General Counsel shall state in his opinion that he believes that he is justified in relying upon such opinions). The General Counsel shall furnish a copy of such special counsel opinions to counsel for the Initial Purchasers (who shall not be
entitled to rely thereon). 
  
 (f) The Initial
Purchasers shall have received on the Closing Date an opinion of Shearman & Sterling LLP, counsel for the Initial Purchasers, dated the Closing Date in form and substance satisfactory to you. 
  
 (g) The Initial Purchasers shall have received on each of
the date hereof and the Closing Date a letter, dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Initial Purchasers, from Ernst & Young, LLP, independent accountants to TWT Inc. and its
subsidiaries containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information contained or incorporated
by reference in the Final Memorandum; provided that the letter delivered on the Closing Date shall use a “cut-off date” not earlier than the date hereof. 
  
 (h) The Secured Securities and the Unsecured Securities shall have been designated PORTAL securities in
accordance with the rules and regulations adopted by National Association of Securities Dealers, Inc. relating to trading in the PORTAL Market. 
  

 -19- 

 (i) At or prior to the Closing Date, (i) the Company, each Guarantor and the Trustee
shall have executed and delivered the Indentures, (ii) the Company and each Guarantor shall have executed and delivered the Registration Rights Agreement to the Initial Purchasers and (iii) the Company, each Guarantor, the Collateral Agent and other
parties thereto shall have executed and delivered each of the Security Documents and the Security Documents shall be in full force and effect. 
  
 (j) At the Closing Date, the Collateral Agent for the benefit of the Second Lien Creditors shall have a valid and perfected security
interest in respect of the Collateral securing the obligations of the Company under the Secured Indenture and such security interest of the Second Lien Creditors will not be subject to or subordinated to any Liens other than Permitted Liens.

  
 (k) The Initial Purchasers shall have
received such other documents and certificates as are reasonably requested by you or your counsel. 
  
 6. Covenants of the Company and the Guarantors. In further consideration of the agreements of the Initial Purchasers contained in this Agreement,
each of the Company and the Guarantors, jointly and severally, covenants with each Initial Purchaser as follows: 
  
 (a) To furnish to you in New York City, without charge, prior to 10:00 a.m. New York City time on the business day next succeeding the
date of this Agreement and during the period mentioned in Section 6(c), as many copies of the Final Memorandum, any documents incorporated by reference therein and any supplements and amendments thereto as you may reasonably request. 
  
 (b) Before amending or supplementing either Memorandum, to
furnish to you a copy of each such proposed amendment or supplement and not to use any such proposed amendment or supplement to which you reasonably object. 
  
 (c) If, during such period after the date hereof and prior to the date on which all of the Securities shall have been sold by the Initial
Purchasers, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Final Memorandum in order to make the statements therein, in the light of the circumstances when the Final Memorandum is delivered
to a purchaser, not misleading, or if, in the opinion of counsel for the Initial Purchasers, it is necessary to amend or supplement the Final Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the
Initial Purchasers, either amendments or supplements to the Final Memorandum so that the statements in the Final Memorandum as so amended or supplemented will not, in the light of the circumstances when the Final Memorandum is delivered to a
purchaser, be misleading or so that the Final Memorandum, as amended or supplemented, will comply with applicable law. 
  
 (d) To endeavor to qualify the Securities and the Guarantees for offer and sale under the securities or Blue Sky laws of such
jurisdictions as you shall reasonably request; provided that, in connection therewith, the Company shall not be required to qualify as a foreign corporation or to file a general consent to service of process in any jurisdiction. 
  

 -20- 

 (e) To make generally available to the Company’s security holders and to you as soon
as practicable an earning statement of the Company and its subsidiaries that satisfies the provisions of Section 11(a) of the Securities Act and the rules and regulations of the Commission thereunder (including, at the option of the Company, Rule
158). 
  
 (f) Whether or not the transactions
contemplated in this Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of its obligations under this Agreement, including: (i) the fees, disbursements and expenses of the
Company’s and the Guarantors’ counsel and the Company’s and the Guarantors’ accountants in connection with the issuance and sale of the Securities and all other fees or expenses in connection with the preparation of each
Memorandum and all amendments and supplements thereto, including all printing costs associated therewith, and the delivering of copies thereof to the Initial Purchasers, in the quantities herein above specified, (ii) all costs and expenses related
to the transfer and delivery of the Securities to the Initial Purchasers, including any transfer or other taxes payable thereon, (iii) the cost of printing or producing any Blue Sky or legal investment memorandum in connection with the offer and
sale of the Securities under state securities laws and all expenses in connection with the qualification of the Securities and the Guarantees for offer and sale under state securities laws as provided in Section 6(d) hereof, including filing fees
and the reasonable fees and disbursements of counsel for the Initial Purchasers in connection with such qualification and in connection with the Blue Sky or legal investment memorandum, (iv) any fees charged by rating agencies for the rating of the
Securities and the Guarantees, (v) the fees and expenses, if any, incurred in connection with the admission of the Securities for trading in PORTAL or any appropriate market system, (vi) the costs and charges of the Trustee and any transfer agent,
registrar or depositary, (vii) the cost of the preparation, issuance and delivery of the Securities, (viii) the costs and expenses of the Company and the Guarantors relating to investor presentations on any “road show” undertaken in
connection with the marketing of the offering of the Securities, including, without limitation, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show
presentations with the prior approval of the Company, travel and lodging expenses of the representatives and officers of the Company, the Guarantors and any such consultants, and the cost of any aircraft chartered in connection with the road show,
(ix) all of the Initial Purchasers’ reasonable costs and expenses, including but not limited to transfer taxes payable on resale of any of the Securities by them, and any advertising expenses connected with the offers they make (provided,
however, that the fees and disbursements of counsel to the Initial Purchasers shall be borne by the Initial Purchasers), and (x) all other costs and expenses incident to the performance of the obligations of the Company and the Guarantors hereunder
for which provision is not otherwise made in this Section. It is understood that the Initial Purchasers shall pay 50% of the aggregate amount of all road show expenses, unless this Agreement is terminated in the manner set forth in the last
paragraph of Section 10, in which case the Company shall pay 100% of the aggregate amount of all road show expenses. 
  

 -21- 

 (g) Neither the Company, the Guarantors nor any Affiliate will sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) which could be integrated with the sale of the Securities in a manner which would require the registration under the Securities Act of the
Securities or the Guarantees. 
  
 (h) Not to
solicit any offer to buy or offer or sell the Securities 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. 
  
 (i) While any of the Securities remain “restricted securities” within the meaning of the Securities Act, to make available, upon request, to any seller of such Securities the information specified in Rule 144A(d)(4) under the
Securities Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act. 
  
 (j) To use its best efforts to permit the Securities to be designated PORTAL securities in accordance with the rules and regulations
adopted by the National Association of Securities Dealers, Inc. relating to trading in the PORTAL Market. 
  
 (k) None of the Company, the Guarantors, their Affiliates or any person acting on its or their behalf (other than the Initial Purchasers)
will engage in any directed selling efforts (as that term is defined in Regulation S) with respect to the Securities, and the Company, the Guarantors and their Affiliates and each person acting on its or their behalf (other than the Initial
Purchasers) will comply with the offering restrictions requirement of Regulation S. 
  
 (1) During the period of two years after the Closing Date, the Company and the Guarantors will not, and will not permit any of its
affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Securities which constitute “restricted securities” under Rule 144 that have been reacquired by any of them. 
  
 7. Offering of Securities; Restrictions on Transfer. (a) Each Initial
Purchaser, severally and not jointly, represents and warrants that such Initial Purchaser is a qualified institutional buyer as defined in Rule 144A under the Securities Act (a “QIB”). Each Initial Purchaser, severally and not
jointly, agrees with the Company and the Guarantors that (i) it will not solicit offers for, or offer or sell, such Securities by 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 and (ii) it will solicit offers for such Securities only from, and will offer such Securities only to, persons that it reasonably believes to
be (A) in the case of offers inside the United States, QIBs and (B) in the case of offers outside the United States, to persons other than U.S. persons (“foreign purchasers,” which term shall include dealers or other professional
fiduciaries in the United States acting on a discretionary basis for foreign beneficial owners (other than an estate or trust)) in reliance upon Regulation S under the Securities Act that, in each case, in purchasing such Securities are deemed to
have represented and agreed as provided in the Final Memorandum under the caption “Transfer Restrictions.” 
  

 -22- 

 (b) Each Initial Purchaser, severally and not jointly, represents, warrants, and agrees with respect to
offers and sales outside the United States that: 
  
 (i) such Initial Purchaser understands that no action has been or will be taken in any jurisdiction by the Company or any of the Guarantors that would permit a public offering of the Securities, or possession or distribution of either
Memorandum or any other offering or publicity material relating to the Securities, in any country or jurisdiction where action for that purpose is required; 
  
 (ii) such Initial Purchaser will comply with all applicable laws and regulations in each jurisdiction in which it acquires, offers, sells
or delivers Securities or has in its possession or distributes either Memorandum or any such other material, in all cases at its own expense; 
  
 (iii) neither the Securities nor the Guarantees have been registered under the Securities Act and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons except in accordance with Rule 144A or Regulation S under the Securities Act or pursuant to another exemption from the registration requirements of the Securities Act; 

 
 (iv) such Initial Purchaser has offered the Securities
and will offer and sell the Securities (A) as part of their distribution at any time and (B) otherwise until 40 days after the later of the commencement of the offering and the Closing Date, only in accordance with Rule 903 of Regulation S or as
otherwise permitted in Section 7(a); accordingly, neither such Initial Purchaser, its Affiliates nor any persons acting on its or their behalf have engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with
respect to the Securities, and any such Initial Purchaser, its Affiliates and any such persons have complied and will comply with the offering restrictions requirement of Regulation S; 
  
 (v) such Initial Purchaser agrees that, at or prior to confirmation of sales of the Securities, it will have
sent to each distributor, dealer or person receiving a selling concession, fee or other remuneration that purchases Securities from it during the restricted period a confirmation or notice to substantially the following effect: 
  
 “The Securities and the Guarantees covered hereby have
not been registered under the United States Securities Act of 1933 (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 their distribution at
any time or (ii) otherwise until 40 days after the later of the commencement of the offering and the final closing date, except in either case in accordance with Regulation S (or Rule 144A if available) under the Securities Act. Terms used above
have the meaning given to them by Regulation S.” 
  
 Terms used in this Section 7(b) have the meanings given to them by Regulation S. 
  

 -23- 

 8. Indemnity and Contribution. (a) Each of the Company and the Guarantors agrees, jointly and
severally, to indemnify and hold harmless each Initial Purchaser and each person, if any, who controls any Initial Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any
Initial Purchaser within the meaning of Rule 405 under the Securities Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with
defending or investigating any such action or claim) caused by any untrue statement or alleged untrue statement of a material fact contained in either Memorandum (as amended or supplemented if the Company or any of the Guarantors shall have
furnished any amendments or supplements thereto), or caused by any omission or alleged omission to state therein a material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading,
except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating to any Initial Purchaser furnished to the Company in writing by
such Initial Purchaser through you expressly for use therein. 
  
 (b) Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, the Guarantors, their directors, their officers and each person, if any, who controls the Company and the Guarantors within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company and the Guarantors to such Initial Purchaser, but only with reference to information relating to such
Initial Purchaser furnished to the Company in writing by such Initial Purchaser through you expressly for use in either Memorandum or any amendments or supplements thereto. 
  
 (c) In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of
which indemnity may be sought pursuant to Section 8(a) or 8(b), such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing
and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and
shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall not, in
respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all
such indemnified parties and that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by Lehman Brothers Inc., in the case of parties indemnified pursuant to Section 8(a), and by the Company,
in the case of parties indemnified pursuant to Section 8(b). The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for
the 
  

 -24- 

 plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the
second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by
such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. 
  

(d) To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to an indemnified party or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (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 Initial Purchasers on the other hand from the offering
of the Securities or (ii) if the allocation provided by clause 8(d)(i) above 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 Initial Purchasers on the other hand in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, 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 in connection with the offering of the Securities shall be deemed to be in the same respective
proportions as the net proceeds from the offering of the Securities (before deducting expenses) received by the Company and the Guarantors and the total discounts and commissions received by the Initial Purchasers in respect thereof, bear to the
aggregate offering price of the Securities. 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 and the Guarantors or by the Initial Purchasers and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission. The Initial Purchasers’ respective obligations to contribute pursuant to this Section 8 are several in proportion to the respective principal amount of Securities
they have purchased hereunder, and not joint. 
  
 (e) The Company,
the Guarantors and the Initial Purchasers agree that it would not be just or equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8(d). The amount paid or payable by an indemnified party as a result of the losses, 
  

 -25- 

 claims, damages and liabilities referred to in Section 8(d) shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8, no Initial Purchaser shall be required
to contribute any amount in excess of the amount by which the total price at which the Securities resold by it in the initial placement of such Securities were offered to investors exceeds the amount of any damages that such Initial Purchaser 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 remedies provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party
at law or in equity. 
  
 (f) The indemnity and contribution
provisions contained in this Section 8 and the representations, warranties and other statements of the Company and the Guarantors contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of
this Agreement, (ii) any investigation made by or on behalf of any Initial Purchaser, any person controlling any Initial Purchaser or any affiliate of any Initial Purchaser or on behalf of the Company or the Guarantors, their officers or directors
or any person controlling the Company or the Guarantors and (iii) acceptance of and payment for any of the Securities. 
  
 9. Termination. This Agreement shall be subject to termination by notice given by you to the Company and the Guarantors, if (a) after the execution
and delivery of this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or materially limited on or by, as the case may be, any of the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii) trading of any securities of the Company or any Guarantor shall have been suspended on any exchange or in any over-the-counter market,
(iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (vi) a general moratorium on commercial banking activities in New York shall have been declared by either Federal or New
York State authorities or (v) there shall have occurred any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis that, in your judgment, is material and adverse and (b) in the case of any of the events
specified in clauses 9(a)(i) through 9(a)(v), such event, singly or together with any other such event, makes it, in your judgment, impracticable to market the Securities on the terms and in the manner contemplated in the Final Memorandum.

  
 10. Effectiveness; Defaulting Initial Purchasers. This
Agreement shall become effective upon the execution and delivery hereof by the parties hereto. 
  
 If, on the Closing Date, any one or more of the Initial Purchasers shall fail or refuse to purchase the Secured Securities or the Unsecured Securities, as the case may be, that it or they have agreed to purchase
hereunder on such date, and the aggregate principal amount of the Secured Securities or the Unsecured Securities, as the case may be, which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase is not more
than one-tenth of the aggregate principal amount of the Secured Securities or the Unsecured Securities, as the case may be, to be purchased on such date, the other Initial Purchasers shall be 
  

 -26- 

 obligated severally in the proportions that the principal amount of the Secured Securities or the Unsecured Securities,
as the case may be, set forth opposite their respective names in Schedule I bears to the aggregate principal amount of the Secured Securities or the Unsecured Securities, as the case may be, set forth opposite the names of all such non-defaulting
Initial Purchasers, or in such other proportions as you may specify, to purchase the Secured Securities or the Unsecured Securities, as the case may be, which such defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to
purchase on such date; provided that in no event shall the principal amount of the Secured Securities or the Unsecured Securities, as the case may be, that any Initial Purchaser has agreed to purchase pursuant to this Agreement be increased
pursuant to this Section 10 by an amount in excess of one-ninth of such principal amount of the Secured Securities or the Unsecured Securities, as the case may be, 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 Secured Securities or the Unsecured Securities, as the case may be, which it or they have agreed to purchase hereunder on such date and the aggregate principal amount of
the Secured Securities or the Unsecured Securities, as the case may be, with respect to which such default occurs is more than one-tenth of the aggregate principal amount of the Secured Securities or the Unsecured Securities, as the case may be, to
be purchased on such date, and arrangements satisfactory to you and the Company for the purchase of such Secured Securities or the Unsecured Securities, as the case may be, are not made within 36 hours after such default, this Agreement shall
terminate without liability on the part of any non-defaulting Initial Purchaser or of the Company or the Guarantors. In any such case either you 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 Final Memorandum or in 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 such Initial Purchaser under this Agreement. 
  
 If this Agreement shall be terminated by the Initial Purchasers, or any of them, because of any failure or refusal on the part of the Company or any Guarantors to comply with the terms or to fulfill any of the conditions of this Agreement,
or if for any reason the Company or any Guarantors shall be unable to perform its obligations under this Agreement, the Company and the Guarantors will reimburse the Initial Purchasers or such Initial Purchasers as have so terminated this Agreement
with respect to themselves, severally, for all out-of-pocket expenses (including the fees and disbursements of their counsel) reasonably incurred by such Initial Purchasers in connection with this Agreement or the offering contemplated hereunder.

  
 11. Notices. All notices and other communications under
this Agreement shall be in writing and mailed, delivered or sent by facsimile transmission to: if sent to the Initial Purchasers, Lehman Brothers Inc., 745 Seventh Avenue, New York, New York 10019, attention: Benjamin Burton, facsimile number
646-758-4007 and if sent to the Company or any of the Guarantors, to Time Warner Telecom Holdings Inc., attention: David Rayner, facsimile number (303) 566-1778. 
  
 12. Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same instrument. 
  

 -27- 

 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of New York. 
  
 14. Headings. The headings of
the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of this Agreement. 
  

 -28- 

			
	Very truly yours,
	
	 TIME WARNER TELECOM HOLDINGS INC.

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	 Paul B. Jones

	 Title:
	 	 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM INC.

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	Paul B. Jones
	 Title:
	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM HOLDINGS II LLC
	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its sole
member

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	Paul B. Jones
	 Title:
	 	 Senior Vice President
 General Counsel &
Regulatory Policy

  

 -29- 

			
	 TIME WARNER TELECOM GENERAL

	 PARTNERSHIP

	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its general partner

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	Paul B. Jones
	 Title :
	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	 TIME WARNER TELECOM OF ILLINOIS LLC

	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	Paul B. Jones
	 Title:
	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	 TIME WARNER TELECOM OF COLORADO
 LLC

	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	Paul B. Jones
	 Title:
	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	 TIME WARNER TELECOM OF MINNESOTA
 LLC

	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	Paul B. Jones
	 Title:
	 	Senior Vice President
	 	 	General Counsel & Regulatory Policy

  

 -30- 

			
	 TIME WARNER TELECOM OF SOUTH
 CAROLINA
LLC

	By:	 	 Time Warner Telecom Holdings Inc.,
 its sole
member

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF CALIFORNIA,
	L.P.
	By:	 	 Time Warner Telecom
 General Partnership, its general
partner

	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title.	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF FLORIDA, L.P.
	By:	 	 Time Warner Telecom General Partnership,
 its general
partner

	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF GEORGIA, L.P.
	By:	 	 Time Warner Telecom General Partnership,
 its general
partner

	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	 By:
	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

  

 -31- 

			
	TIME WARNER TELECOM OF HAWAII, L.P.
	By:	 	 Time Warner Telecom General Partnership,
 its general
partner

	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF INDIANA, L.P.
	By:	 	 Time Warner Telecom General Partnership,
 its general
partner

	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF THE MID- SOUTH, LLC
	By:	 	 Time Warner Telecom Holdings Inc.,
 its sole
member

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

  

 -32- 

			
	 TIME WARNER TELECOM OF NEW JERSEY,

	 L.P.

	 By:
	 	 Time Warner Telecom General Partnership,
 its general partner

	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	 Paul B. Jones

	 Title:
	 	 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM – N.Y., L.P.

		
	 By:
	 	 Time Warner Telecom General Partnership,
 its general partner

	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its general partner

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	 Paul B. Jones

	 Title:
	 	 Senior Vice President
 General Counsel & Regulatory Policy

	
	 TIME WARNER TELECOM OF OHIO LLC

	 By:
	 	 Time Warner Telecom Holdings Inc.,
 its sole member

		
	 By:
	 	 /s/ Paul B. Jones

	 Name:
	 	 Paul B. Jones

	 Title:
	 	 Senior Vice President
 General Counsel & Regulatory Policy

  

 -33- 

			
	TIME WARNER TELECOM OF TEXAS, L.P.
	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF WISCONSIN,
	L.P.
	By:	 	 Time Warner Telecom General Partnership,
 its general
partner

	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title :	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF NORTH
	CAROLINA, L.P.
	By:	 	 Time Warner Telecom General Partnership,
 its general
partner

	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

  

 -34- 

			
	TIME WARNER TELECOM OF ARIZONA LLC
	By:	 	 Time Warner Telecom Holdings Inc.,
 its sole
member

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF IDAHO LLC
	By:	 	 Time Warner Telecom Holdings Inc.,
 its sole
member

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF NEVADA LLC
	By:	 	 Time Warner Telecom Holdings Inc.,
 its sole
member

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF NEW MEXICO LLC
	By:	 	 Time Warner Telecom Holdings Inc.,
 its sole
member

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

  

 -35- 

			
	TIME WARNER TELECOM OF OREGON LLC
	By:	 	Time Warner Telecom Holdings Inc.,
	 	 	its sole member
		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF UTAH LLC
	By:	 	Time Warner Telecom Holdings Inc.,
	 	 	its sole member
		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	 Senior Vice President
 General Counsel &
Regulatory Policy

	
	TIME WARNER TELECOM OF WASHINGTON
	LLC
	By:	 	Time Warner Telecom Holdings Inc.,
	 	 	its sole member
		
	By:	 	 /s/ Paul B. Jones

	Name:	 	Paul B. Jones
	Title:	 	Senior Vice President
	 	 	General Counsel & Regulatory Policy

  

 -36- 

			
	TW TELECOM L.P.
	By:	 	 Time Warner Telecom Holdings Inc.,
 its general
partner

		
	By:	 	 /s/ Paul B. Jones

	Name:	 	 
	Title:	 	 

  

 -37- 

 Accepted as of the date hereof 
  

LEHMAN BROTHERS INC. 
 MORGAN STANLEY & CO. INCORPORATED 
 BEAR, STEARNS & CO. INC. 
 WACHOVIA CAPITAL MARKETS, LLC 
  
 Acting severally on behalf of themselves and 
  
 the several Initial Purchasers named in 
 Schedule I hereto. 
  

			
	By: LEHMAN BROTHERS INC.
		
	By:	 	 /s/ G. Robert Berzins

	Name:	 	G. Robert Berzins
	Title:	 	Managing Director

  

 -38- 

 SCHEDULE I 
  

				
	 Initial Purchaser

	  	 Principal Amount of
 Securities to Be Purchased

	 Secured Securities
	  	 	 
	 Lehman Brothers Inc.
	  	$	108,000,000
	 Morgan Stanley & Co. Incorporated
	  	 	69,600,000
	 Bear, Stearns & Co. Inc.
	  	 	31,200,000
	 Wachovia Capital Markets, LLC
	  	 	31,200,000
	 	  	
	

	 TOTAL
	  	$	240,000,000
	 	  	
	

	 Unsecured Securities
	  	 	 
	 Lehman Brothers Inc.
	  	$	90,000,000
	 Morgan Stanley & Co. Incorporated
	  	 	58,000,000
	 Bear, Stearns & Co. Inc.
	  	 	26,000,000
	 Wachovia Capital Markets, LLC
	  	 	26,000,000
	 	  	
	

	 TOTAL
	  	$	200,000,000
	 	  	
	

 SCHEDULE II 
  

SUBSIDIARY GUARANTORS 
  
 TIME WARNER TELECOM HOLDINGS II LLC 
 TIME WARNER TELECOM GENERAL PARTNERSHIP

 TIME WARNER TELECOM OF ILLINOIS LLC 
 TIME WARNER TELECOM OF
COLORADO LLC 
 TIME WARNER TELECOM OF MINNESOTA LLC 
 TIME WARNER
TELECOM OF SOUTH CAROLINA LLC 
 TIME WARNER TELECOM OF CALIFORNIA, L.P. 
 TIME WARNER TELECOM OF FLORIDA, L.P. 
 TIME WARNER TELECOM OF GEORGIA, L.P. 
 TIME WARNER TELECOM OF HAWAII, L.P. 
 TIME WARNER TELECOM OF INDIANA, L.P. 
 TIME WARNER TELECOM OF THE MID-SOUTH, LLC 
 TIME WARNER TELECOM OF NEW JERSEY,
L.P. 
 TIME WARNER TELECOM – N.Y., L.P. 
 TIME WARNER
TELECOM OF OHIO, LLC 
 TIME WARNER TELECOM OF TEXAS, L.P. 
 TIME
WARNER TELECOM OF WISCONSIN, L.P. 
 TIME WARNER TELECOM OF NORTH CAROLINA, L.P. 
 TIME WARNER TELECOM OF ARIZONA LLC 
 TIME WARNER TELECOM OF IDAHO LLC 
 TIME WARNER TELECOM OF NEVADA LLC 
 TIME WARNER TELECOM OF NEW MEXICO LLC

 TIME WARNER TELECOM OF OREGON LLC 
 TIME WARNER TELECOM OF UTAH
LLC 
 TIME WARNER TELECOM OF WASHINGTON LLCDelivery and License Agreement

 EXHIBIT 10.1 
  
 Delivery and Licence Agreement 
  
 This Agreement is entered into this              day of
            , 1998 between OM Technology AB, Brunkebergstorg 2, 103 26 Stockholm, Sweden, incorporated in Sweden under the registration number 556314-8138 (“OMT”),
Sweden and International Securities Exchange LLC, formed under the laws of the State of New York (“Customer”), USA, to govern the delivery and licence of computer software and services. 
  
 OMT and Customer each respectively a “Party” and collectively the
“Parties”. 
  

			
	WHEREAS,	  	OMT is in the business of developing software systems to be used in the conducting of derivatives exchange markets and providing services to implement and maintain such software
systems;
		
	WHEREAS,	  	Customer is in the process of completing an application which it intends to file with the United States Securities and Exchange Commission (“SEC”) for the purpose of registration as
a National Securities Exchange and will when recognised by the SEC apply for membership at the Options Clearing Corporation (“OCC”);
		
	WHEREAS,	  	OMT shall deliver and license to Customer, subject to the terms and conditions of this Agreement, certain software and services;
		
	WHEREAS,	  	Customer and OMT shall concurrently with the entering into of this Agreement enter into a support agreement to govern the provisions of services by OMT following Acceptance of the delivery
(“Support Agreement”).

  
 Now in consideration of the mutual
promises and covenants given herein the Parties agree as follows: 
  

	1	LIST OF CONTENTS 

  

			
	 1       List of contents
	  	1
		
	 2       Definitions and Schedules
	  	2
		
	 3       Scope and aim of the Agreement
	  	3
		
	 4       OMT’s delivery obligations
	  	4
		
	 5       Licence to Software Product and Documentation
	  	11
		
	 6       Customer’s obligations
	  	14
		
	 7       Delivery
	  	18
		
	 8       Warranty
	  	22
		
	 9       Patents and copyrights
	  	23
		
	 10     Consideration
	  	23
		
	 11     Limitation of Right to Claim
	  	24
		
	 12     Claims and Limitation of Liability
	  	25
		
	 13     Hardship
	  	26

  

 1 

			
	 14     Confidentiality Undertaking
	  	26
		
	 15     Independent business
	  	28
		
	 16     Whole Agreement
	  	28
		
	 17     Amendments
	  	28
		
	 18     Waiver
	  	28
		
	 19     Severability
	  	28
		
	 20     Term and termination of the Agreement and sanctions
	  	29
		
	 21     Assignment
	  	30
		
	 22     Governing law and arbitration
	  	30

  

	2	DEFINITIONS AND SCHEDULES 

  
 For the purpose of this Agreement the terms below are defined as follows. 
  
 General definitions 
  

			
	“Acceptance”	  	shall mean acceptance as set out in article 7.9-7.11 of this Agreement.
		
	“Acceptance Test”	  	shall mean the test of the Software Product performed in accordance with the Acceptance Test Specification, Acceptance Test Procedure and Acceptance Test Plan and as further described in
article 7.8 of this Agreement and in the Regulations for Acceptance Test Schedule 11.
		
	“Acceptance Test Specification” or “ATS”	  	shall mean the listing of all functions and system requirements included in the Functional Specification and technical requirements specified in Schedules 2 and 3, and in the
specification of Delivered Financial Products specified in Schedule 1, which shall be subject to Acceptance Test.
		
	“Acceptance Test Procedure” or “ATP”	  	shall mean the specification of all tests to be performed on the Software Product and the criteria for approval of such tests to verify that the Software Product operates on the Hardware
Configuration, in conformance with the Functional Specification and technical requirements specified in Schedule 2 and 3, and that the Software Product supports trading in the Delivered Financial Products, specified in Schedule 1. The
tests specified in the Acceptance Test Procedure are limited to the functions and system requirements specified in the Acceptance Test Specification.

  

 2 

			
	“Confidential Information”	  	shall mean (i) any and all information related to the Software Product and Documentation, with the exception of Documentation identified as non-confidential in Schedule 6, (ii) any
other documentation which is proprietary to either Party and which has been identified by an endorsement prominently displayed on the face thereof prior to that material being made available to the other Party and (iii) market information,
information concerning operation, personnel and business dealings of either Party as well as information regarding members and other third parties dealing with either Party, which by their very nature may neither be documented nor endorsed with a
confidentiality notice.
		
	“Delivered Financial Products”	  	shall mean the financial products, specified in Schedule 1, which are covered by the license to the Software Product and for which the Software Product is delivered, meaning that the
Software Product supports trading in those instruments, see also Licensed Financial Products. Trading functionality of Delivered Financial Products is specified in the Functional Specification.
		
	“Documentation”	  	shall mean any and all manuals, specifications, literature and other documents, supplied by OMT to Customer, including but not limited to what is specified in Schedule
6.
		
	“Effective Date”	  	shall mean the date which has been agreed as such in section 20 hereof.
		
	“External Systems”	  	shall mean systems which shall be connected to and interoperate with the Hardware Configuration on which the Software Product is executed. The External Systems and the interfaces to the
External Systems are as specified in the Functional Specification Schedule 2.
		
	“Functional Specification”	  	shall mean the exclusive and complete specification of the functions of the Software Product set forth in Schedule 2. Functions of the Software Product not specified in the Functional
Specification are delivered as is and shall not be covered by the Acceptance Test.
		
	“Hardware Configurations”	  	shall mean hardware, Third Party Standard Software, and network, meeting minimum requirements specified in Schedule 5.

  

 3 

			
	“Licensed Financial Products”	  	shall mean the financial products, specified in Schedule 1, which are covered by the license to the Software Product, see also Delivered Financial Products.
		
	“Master Time Schedule”	  	shall mean the time schedule specified in Schedule 8 for the fulfilment of the obligations of this agreement.
		
	“National Securities Exchange”	  	shall mean a national securities exchange as defined under the United States Securities Exchange Act of 1934.
		
	“OM CLICK Exchange System”	  	shall mean OM’s system for trading in financial instruments providing an electronic market place, described in Schedule 2, The OM CLICK Exchange Software Product
Description.
		
	“OM CLICK Trade application”	  	shall mean OM’s trading tool described in Schedule 2, The OM CLICK Exchange Software Product Description.
		
	“OM Licensed Third Party Standard Software”	  	shall mean Third Party Standard Software and accompanying documentation, licensed and delivered by OMT, specified in Schedule 12.
		
	“OMnet software”	  	shall mean OM’s system transaction network, including the OMnet API software, described in Schedule 2, The OM CLICK Exchange Software Product Description.
		
	“OM Rules and Regulations”	  	shall mean the rules and regulations which i.a. govern OM Stockholm AB’s exchange- and clearing activities and the legal relationship between OM Stockholm AB and exchange members,
clearing members and customers.
		
	“Project”	  	shall mean the provision of the computer software and services by OMT to Customer as set out in section 4 below and in accordance with the terms of this Agreement. The Project starts at the
Effective Date and ends with Acceptance.
		
	“Project Organisations”	  	shall mean the staff organisation of the respective Party specified in Schedule 9.
		
	“SEK”	  	shall mean the lawful currency of the Kingdom of Sweden applicable at any given time.

  

 4 

			
	“Software Product”	  	shall mean OM’s standard software specified in the Functional Specification Schedule 2, (the OM CLICK Exchange System, the OM CLICK Trade application and the OMnet API software)
as well as adaptations to OM’s standard software specified in the same Schedule, to be provided by OMT to Customer in accordance with the terms of this Agreement, with the exception of any Third Party Standard Software referred to in
Schedule 2, which is not included.
		
	“SPD”	  	shall mean the description of the Uncustomised Software Product, being part of the Functional Specification, (“The OM CLICK Exchange Software Product Description”).
		
	“Stock Index Options”	  	shall mean options issued by The Options Clearing Corporation (“OCC”) and have underlying them: (i) Broad based indexes approved by the SEC for options listing, or (ii) Narrow based
indexes approved by the SEC for options listing.
		
	“Stock Options”	  	shall mean options issued by The Options Clearing Corporation (“OCC”) and have underlying them: (i) Listed common stocks (NYSE, AMEX), (ii) Over-the-counter common stocks (NASDAQ),
(iii) ADRs and ADSs, (iv) Closed-end mutual funds, or (v) Foreign Ordinaries (if and when the options are issued by OCC).
		
	“Territory”	  	shall mean the United States of America.
		
	“Third Party Standard Software” or “SSW”	  	shall mean third party standard software, including but not limited to operating system software.
		
	“Uncustomised Software Product”	  	shall mean OM’s standard software specified in the Functional Specification, Schedule 2, (the OM CLICK Exchange System, the OM CLICK Trade application and the OMnet API software),
excluding any adaptations specified in the same Schedule.
		
	“USD”	  	shall mean the lawful currency of the United States of America applicable at any given time.
		
	“Warranty period”	  	shall mean a period of [***] following Acceptance.

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 5 

 Schedules to this Agreement 
  

			
	Schedule 1	  	Financial Product Specification, including licensed and              delivered
	Schedule 2	  	Preliminary Functional Specification, including Uncustomised Software Product, customised adaptations and interfaces to External Systems,
	Schedule 3	  	Preliminary Technical Requirements
	Schedule 4	  	Change Procedure
	Schedule 5	  	Preliminary Hardware Configuration - minimum requirements (configuration specification of production, test and trainingsystems)
	Schedule 6	  	Documentation
	Schedule 7	  	Training Specification
	Schedule 8	  	Master Time Schedule
	Schedule 9	  	Project Organisations
	Schedule 10	  	Price List
	Schedule 11	  	Regulations for Acceptance Test
	Schedule 12	  	OM Licensed Third Party Standard Software
	Schedule 13	  	Customer Business Plan

  
 The Schedules to this
Agreement are essential and form an integral parts of this Agreement and in the event of any inconsistency between this document and the Schedules this document shall take precedence over the Schedules. The headings are for convenience only and do
not affect the construction or interpretation of any provision to which they refer. 
  
 Unless the context otherwise requires the singular includes the plural and vice-versa. 
  

	3	SCOPE AND AIM OF THE AGREEMENT 

  

	3.1	The scope and aim of the Project is to deliver to Customer the Software Product and services related thereto in the manner and time frame set forth in this Agreement.

  

	3.2	This Agreement including its Schedules govern in detail the licensing and provision of software and the provision of services by OMT to Customer during the Project.

  
 The Parties recognises that Schedules 2, 3, 5,
8 and 12 are preliminary and that Schedule 13 is still not prepared. The finalisation of these Schedules shall be completed and approved in writing by the Parties in accordance with the Master Time Schedule and incorporated into the Agreement by the
same dates. 
  
 The scope of each functionality is defined in the
preliminary Functional Specification. However, the final version of the Functional Specification shall provide a further detail of the listed functionality. The scope of the volumetrics is defined in the preliminary Technical Requirement. The final
version of Schedule 2 and 3 may require changes to the Hardware 

  

 6 

 
Configuration included in Schedule 5. Customer shall provide to OMT the Customer Business Plan. OMT reserves the right to request a reasonable level
of detail as per milestones included in the Customer Business Plan. 
  
 Further the Parties shall by April 3, 1998 agree on a way for Customer to ensure payment to OMT under this Agreement. 
  
 In the event the Parties cannot agree to the final version of the Schedules by April 3, 1998, with the exception of the specifications of External Systems
to be included in Schedule 2, or to a way for Customer to ensure payment to OMT, either Party may as the sole remedy, terminate this Agreement by immediate effect. In the event of such termination the Parties shall promptly return all
Confidential Information received from each other and Customer shall promptly return all copies of the Software Product and the Uncustomised Software Product and non-confidential Documentation, in whole or in parts, to OMT. Neither Party shall be
entitled to any damages or other financial compensation due to such termination. 
  
 The specifications of External Systems are not known to the Parties when entering into this Agreement and shall be provided by Customer in accordance with the Master Time Schedule. However, the Parties have made some
assumptions regarding these interfaces which are specified in Schedule 2. If these assumptions are not met the Parties shall renegotiate the Master Time Schedule, contract price and any other contractual term effected.

  

	3.3	The provision of services following Acceptance is governed by a Support Agreement as set out in article 4.18 below, to be entered into between Customer and OMT concurrently with the
Agreement herein. 

  

	4	OMT’S DELIVERY OBLIGATIONS 

  
 General 
  

	4.1	OMT undertakes to supply to Customer the Software Product, related Documentation and services and OM Licensed Third Party Standard Software all as specified in this section and in
accordance with the provisions set out in this Agreement. 

  

	4.2	OMT shall fulfill its obligations according to the Master Time Schedule, Schedule 8 and according to planning which may be agreed between the Parties during the course of the
Project. In the event of delays during the course of the project due to non-performance or delayed performance by Customer of its obligations, including but not limited to its obligations set forth in the Master Time Schedule, Schedule 8 and
in the Customer Business Plan Schedule 13, the OMT’s time for performance shall be equitably adjusted and OMT shall be entitled to extra payment on a time and material basis for additional work, according to the Price List, Schedule
6, and other costs and expenses if any, relating to and depending on the delay. 

  

 7 

	4.3	OMT shall establish and throughout the Project maintain a duly sized and qualified Project Organisation, in accordance with Schedule 9. 

  
 Adaptation and Delivery of the Software Product  
  

	4.4	OMT shall make adaptations to and deliver the Software Product as specified by the Functional Specification Schedule 2, with the exceptions expressly stated therein. The
Software Product shall be delivered in object code in an executable form and the user interface shall be in English. 

  

	4.5	The Software Product shall support trading in the Delivered Financial Products, specified in Schedule 1. 

  
 System Integration 
  

	4.6	OMT warrants and represents that the Software Product will operate on the Hardware Configurations meeting requirements specified in Schedule 5, and thereby conform to
functional specification of Schedule 2. The Software Product operating on the Hardware Configuration used for production shall also conform to the technical requirements of Schedule 3. 

  
 Interoperability with External Systems 
  

	4.7	The Software Product shall be capable of interoperating with the interfaces to External Systems as specified in Schedule 2. The External Systems will be connected to the
Hardware Configuration on which the Software Product is executed, via network components as specified in Schedule 5. 

  
 Documentation 
  

	4.8	OMT shall deliver one copy of each document listed in Schedule 6, Documentation, or such other documents replacing documents listed in Schedule 6. The documents listed
in Schedule 6 are OMT’s standard documentation including documentation of adaptations made to the Software Product. All documents shall be delivered in paper format and in electronic format if available, and shall be written in the
English language. The documents listed in Schedule 6 shall be provided to Customer in the most recent version at the time of delivery, and will be maintained as set out in the Support Agreement. Further OMT will deliver one set of
documentation only for the respective OM Licensed Third Party Standard Software. 

  

	4.9	OMT shall deliver an example of an emergency recovery manual, as set out in Schedule 6. 

  

	4.10	OMT shall deliver the present version of OM Rules and Regulations as set out in Schedule 6. 

  
 Training 
  

	4.11	 OMT shall provide training to Customer personnel according to the Training Specification, Schedule 7. Training will take place in the Territory and in

  

 8 

	 	 
Stockholm and will be conducted in the English language. Customer is responsible for the costs of its attendance, including but not limited to housing and
travel expenses. 

  
 Delivery and
installation of the Uncustomised Software Product 
  

	4.12	OMT shall deliver the Uncustomised Software Product to the installations site at the premises of Customer, at the Central Installation Site 1, see Article 4.13 below, and shall
install the same on a hardware configuration provided by Customer. Further, Customer is responsible for any necessary system management support for the Customer environment. The Uncustomised Software Product shall be used for training purposes and
shall be deinstalled and returned to OMT upon installation of the Software Product. 

  
 Any support requested by Customer regarding the Uncustomised Software Product shall be performed by OMT on a time and material basis and all such requests
for support shall be addressed to a contact person specified by OMT. 
  
 Delivery, Installation, Integration and Start up of the Software Product, Documentation and OM Licensed Third Party Standard Software 
  

	4.13	OMT shall deliver the Software Product, Documentation and OM Licensed Third Party Standard Software, including documentation, specified in Schedule 12 to the installation
sites at the premises of Customer at two different addresses in the New York Metropolitan area, one for the production system (“Central Installation Site 1”) and one for the back-up system (“Central Installation Site 2”).

  

	4.14	OMT shall install the Software Product on the Hardware Configurations at the Central Installation Sites 1 and 2. OMT shall also configure, tune and start up the Software Product and
related Third Party Standard Software on the Hardware Configuration. Network Management software components, as specified in Schedule 5, are dependent on existing Customer network infrastructure and thus it is the responsibility of Customer
to install and configure these components. In this respect OMT will only provide configuration advice related to the Software Product, unless otherwise agreed in writing. 

  

	4.15	Integration 

  
 OMT shall conduct integration tests with the assistance of Customer, to validate interoperability between the Software Product and the Hardware
Configuration and the interfaces of External Systems according to the specification Schedule 2, prior to the Acceptance Test. 
  
 Acceptance Test Documents 
  

	4.16	 OMT shall compile the Acceptance Test Specification and the Acceptance Test Procedures in accordance with the Regulations for Acceptance Test Schedule 11,
such documents shall be reviewed and approved by Customer in 

  

 9 

	 	 
writing. Further OMT shall review and approve the Acceptance Test Plan compiled by Customer. 

  
 Acceptance Test Assistance 
  

	4.17	OMT has the right to be present and shall provide on-site assistance to Customer during the Acceptance Test. 

  
 Support after Acceptance 
  

	4.18	OMT shall provide operational and non-operational support to Customer according to a separate Support Agreement. Support in accordance with the Support agreement, relating to the
Software Product, shall be provided free of charge during the Warranty Period as set out in article 8, see also Articles 4.19-21 below. 

  
 On site support  
  

	4.19	Subject to the terms and conditions set forth in Article 4.20-4.21 OMT shall provide support and assistance during Customers trading days between 8.30 a.m. - 5.30 p.m. local time
(Monday to Friday ), on-site at the Central Installation Site 1 or 2. Customer may upon a reasonable prior notice request that a trading day is replaced by a Saturday or Sunday or change the working hours during a trading day and OMT shall, to the
extent reasonably possible, accommodate such requests. 

  

	4.20	The support and assistance shall be provided by a duly qualified OMT personnel (Consultant) working on a full time basis during the period of [***] following the Acceptance. It is
the intention of OMT to assign the Consultant on a long term basis. In the event the Consultant is absent as scheduled in consultation with OMT or is ill for a longer period of time or otherwise unable to perform his/her obligations, OMT undertakes
to send another duly qualified Consultant to take his place during the absence. The Consultants are employed by OMT or otherwise engaged by OMT and report to OMT on a continuing basis. 

  

	4.21	The primary obligation of the Consultant is to provide operational Software Product support as set out in the Support Agreement. In addition to this the Consultant will as long as
the primary obligation of the Consultant is not interfered with, at Customer’s option, and in accordance with Customer’s instructions, assist in, inter alia, the simulation, the production start, operation of the Software Product,
installation and test of releases and training of new Customer personnel. 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 10 

	5	LICENCE TO SOFTWARE PRODUCT AND DOCUMENTATION AND OM LICENSED THIRD PARTY STANDARD SOFTWARE 

  
 Licence 
  

	5.1	OMT hereby grants to Customer and Customer hereby accepts a licence to use the Software Product and associated Documentation on terms set out herein. The subject of the licence is
the delivered version of the Software Product, as specified in Schedule 2, and associated Documentation. The right to use new versions of the Software Product requires additional licences, which will be granted under the Support Agreement.
For licence to OM Licensed Third Party Standard Software, see Article 5.21 below. 

  
 Licensed Operating System 
  

	5.2	The OM CLICK Exchange System is licensed for execution on the operating system xx, however some user applications and network components are licensed for execution on the operating
system Windows NT. 

  
 Customer undertakes to
select operating system (Open/VMS or IBM AIX) and to inform OMT about its selection in writing in accordance with the Master Time Schedule. 
  
 The OM CLICK Trade application is licensed for execution on the operating system Windows NT. 
  
 The OMnet API software is licensed for execution on the operating system
Windows NT, SunOS/Solaris, HP/UX and Open VMS. If OMT in the future, decides to make the OMnet API available also on IBM AIX then the OMnet API for execution on the IBM AIX will be included for Customer at no extra charge. 
  
 Intellectual Property Rights 
  

	5.3	Copyright and all other intellectual property rights to the Software Product and the Documentation and to any alterations or modifications carried out by OMT, are vested in OM
Gruppen AB of which OMT is a wholly owned subsidiary. The reproduction of or use of any such material for purposes other than those necessarily connected with purposes of the licence is prohibited. The Software Product and Documentation is and
incorporates proprietary information and trade secrets of OMT. Customer understands and acknowledges that the confidentiality provisions set forth in Article 14 apply and that the compliance with the terms of the confidentiality undertaking is
considered by OMT to be a condition of any licence granted hereunder. 

  

	5.4	 OM, OM CLICK Exchange System, OM CLICK Trade application, OMnet are trademarks of OM Gruppen AB. Such trade marks or service marks applied to copies of the Software
Product, screen layouts or the like, by OMT may not be removed by Customer. Customer shall be entitled to insert or affix, or can cause OMT to insert or affix, in the Software Product and any accompanying packaging and documentation, such trademark
notices as 

  

 11 

	 	 
Customer reasonably considers necessary to show that Customer is entitled to use such products and to sub-license their use under trademarks and logos
belonging to Customer, only after OMT’s prior written approval, which approval shall not be unreasonably withheld. Notwithstanding the foregoing, Customer shall be permitted to use and instruct OMT to insert or affix the word “ISE”
and its design in any such products. Work to insert or affix such trademark notices shall be provided by OMT on a time and material basis. 

  

	5.5	OMT expressly acknowledges and represents that it has the power, right and authority to grant the Licence set forth herein and has obtained from OM Gruppen AB any and all rights
necessary to proceed with this Licences. 

  
 Licence Terms 
  

	5.6	The licence granted shall be, and is accepted by Customer as a non-assignable and non-transferable licence to use the Software Product and the Documentation solely for the purpose
of Customer providing an infrastructure for a market to be operated by Customer, exclusively in the Territory and for the Licensed Financial Products set out in Schedule 1 only (“Customer Operations”), subject to the terms and
conditions set forth below. The licence is non-exclusive with the exception set forth below in Articles 5.22-5.23. The term for the licences are 99 years, unless terminated according to the licence termination provisions set forth below. Customer
may, subject to the terms and conditions set forth below, use the OM CLICK Trade application and OMnet API software and related user Documentation for Customer Operations world-wide and to sub-licence the CLICK Trade application and the OMnet API
software to its members and participants world-wide solely for their activities related to Customer Operations as set forth in Articles 5.16-5.17. 

  

	5.7	OMT transfers no title to or ownership of the Software Product or the Documentation to Customer. Customer does not obtain by means of this Agreement any right, such as a right of
ownership, title, right to use or the like, other than the right expressly given hereunder. 

  

	5.8	OMT expressly reserves the right to grant licences to the Software Product and/or Documentation to third parties, unless otherwise is explicitly stated herein.

  

	5.9	Customer warrants and represents that it shall not sub-license or otherwise transfer or assign the licences or disclose or otherwise make available the Software Product to any third
party unless otherwise explicitly stated or to use or to permit the use of the Software Product or the Documentation outside the scope of these licences. 

  

	5.10	Customer warrants and represents that it shall use the Software Product and Documentation for the Customer Operations and for no other purpose. 

  

	5.11	Customer shall execute the Software Product on the Licensed Operating System only. 

  

 12 

	5.12	Customer shall be entitled to make back-up copies of the Software Product as back-ups for own use only. All copies of the Software Product or parts thereof shall be marked to
identify OM Gruppen AB as proprietor of intellectual property rights and shall be handled in such way that the provisions hereunder are not violated. 

  

	5.13	The Software Product may not be decompiled, reverse assembled or reverse engineered for any reason other than as set out in European Council Directive 91/250 EEC as implemented
under Swedish law. 

  

	5.14	Customer is entitled to make a limited number of copies of the Documentation, listed in Schedule 6 and identified as being confidential. Customer shall at no occasion be in
possession of more than seven (7) copies of such Documentation. Such copies may only be used by Customer for internal use and for no other purpose. Additional copies can be acquired from OMT at cost. Customer shall, however, be entitled to copy,
translate and distribute user documentation related to the OM CLICK Trade Application and the OMnet API manuals, listed in Schedule 6 and identified as being non-confidential. All copies of the Documentation or parts thereof shall be marked
to identify OM Gruppen AB as proprietor of intellectual property rights. 

  

	5.15	Any part of the Software Product or the Documentation included in an alteration or modification, shall continue to be subject to the terms and conditions of the provisions set forth
herein. 

  
 Sub-licensing 
  

	5.16	As sole exception from Article 5.9, Customer shall after Acceptance, be entitled to sub-licence the OM CLICK Trade Application to the members of Customer and the OMnet API software
to the members of Customer, third party developers for development and testing of trading applications or other third party applications and to other third parties who may acquire such an application to permit such applications to be connected by
use of the OMnet API software to a computer system upon which the OM CLICK Exchange System is operating pursuant to Article 5.6 above, and for no other purpose. Such sub-licensing shall be made on terms corresponding to the licence terms set out
herein, save that the sub-licensee may not further sub-licence any rights to the OM CLICK Trade Application or the OMnet API software. Upon executing any sub-licence agreement Customer shall apply the suitable security measures and a degree of care
in relation to the software as to provide adequate protection of such software from unauthorised disclosure, copying or use and Customer hereby warrants and represents the fulfilment by each such sub-licencee of the sub-licence terms. Customer
undertakes to make OMT a third party beneficiary under any such sub-licence agreement concluded. 

  

	5.17	Customer shall maintain a complete record of sub-licensees, including subject of licence and location of installation. Customer shall provide OMT with copies of latest such records
within thirty (30) days from receipt of such request from OMT. 

  

 13 

 Breach of Licence Terms 
  

	5.18	In the event OMT has reason to believe that Customer is in breach of any of the provisions set forth herein, Customer shall provide OMT with a written explanation within thirty (30)
days of receipt of such request from OMT. 

  

	5.19	In the event Customer fails or neglects to perform or observe any of its material obligations to OMT under the provisions set forth herein, Article 5, and fails to remedy the same
within thirty (30) days following receipt of a written notice of the occurrence of failure and demand to cure, Customer shall pay a fine to OMT, of an amount of [***] as liquidated damages. In the event that the actual damage is in excess of such
fine, then OMT shall be entitled to damages corresponding to the actual damage. 

  

	5.20	In the event any material breach of any of the provisions set forth herein, Article 5, is caused wilfully or grossly negligent by Customer, OMT may terminate the licences granted
hereunder immediately. In the event of licence termination as aforesaid Customer shall free of charge and without undue delay transfer to OMT the Software Product and all Documentation transferred to Customer by OMT under this Agreement, without
keeping any copy or transcript thereof. 

  
 OM
Licensed Third Party Standard Software 
  

	5.21	Licence to OM Licensed Third Party Standard Software will require the conclusion of separate licence agreements. For licence terms and conditions see such separate licence
agreements. OM Licensed Third Party Standard Software may solely be used for the purpose of running the Software Product and accordingly executed only on nodes on which the Software Product is installed. 

  
 [***] 
  

	5.22	[***] 

  

	5.23	[***] 

  

	6	CUSTOMER’S OBLIGATIONS 

  
 General 
  

	6.1	Customer shall participate in the Project by performing its obligations to enable OMT’s fulfilment of its obligations under this Agreement. The obligations of Customer are
described in this Article 6 or otherwise in this Agreement. 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 14 

 The process of obtaining the final determination from the United States Securities and Exchange
Commission (“SEC”) on Customer’s application for registration as a National Securities Exchange is the responsibility of Customer. 
  

	6.2	Customer shall fulfill its obligations at its own cost and according to the Master Time Schedule, Schedule 8 and according to planning which may be agreed between the Parties
during the course of the Project. In the event of delays during the course of the Project due to non-performance by OMT of its obligations according to this Agreement, Customer’s time for performance shall be equitably adjusted.

  

	6.3	Customer is responsible for the planning of its activities, if required in co-operation with OMT, and for management of its personnel engaged in the activities.

  

	6.4	Customer shall establish and throughout the project maintain a duly sized and qualified project organisation, including but not limited to a full-time employee for project
management, project management shall be such employee’s main responsibility. 

  
 Customer warrants and represents that it will employ Gary Katz and David Krell or people with similar experience and skills for the duration of the
Project. 
  
 Participation in OMT’s fulfilment of its
obligations 
  

	6.5	Customer shall, 

  

	 	(i)	supply to OMT information, in writing, which OMT need acquire to be able to prepare specifications, plans and Documentation. This work shall be done in co-operation with OMT and
according to agreed planning, 

  

	 	(ii)	on OMT’s request, within reasonable time and without delay, provide OMT with correct and complete information and assistance which OMT requires to be able to otherwise fulfill
its obligations, 

  

	 	(iii)	compile the Acceptance Test Plan in accordance with the Regulations for Acceptance Test Schedule 11, such documents shall be reviewed and approved by OMT in writing and
review and approve the Acceptance Test Specification and the Acceptance Test Procedures compiled by OMT.  

  

	 	(iv)	plan, arrange and perform the Acceptance Test and at the time of installation, prepare and supply test data, including data for a test data base on a machine readable medium on the
Hardware Configuration. 

  

 15 

	 	(v)	review and approve, in writing, OMT’s proposals, plans and specifications and other documentation supplied by OMT within reasonable time and without delay,

  

	 	(vi)	procure, from original supplier or any reseller authorised by such original supplier, and install the Hardware Configurations meeting requirements specified in Schedules 3 and
5, on which the Software Product shall be installed and executed, and necessary hardware and SSW for the installation and execution of the Uncustomised Software Product, 

  

	 	(vii)	translate user Documentation and other Documentation as required by Customer, from English to other language, 

  

	 	(viii)	train members/participants of Customer and provide necessary information to such parties during the course of the Project, 

  

	 	(ix)	provide correct and complete test data on a machine readable medium, both for the interfaces transactions, including programs and data to generate the transaction flow via the
interfaces to External Systems (hereinafter referred to as “External Systems Simulators”) and for a Customer specific marketplace data base (hereinafter referred to as “Customer Market Database”) in the Software Product, prior to
OMT’s internal system tests to be performed by OMT during the development phase, see Master Time Schedule, Schedule 8. 

  

	 	(x)	provide specifications of interfaces to External Systems and ensure that the External Systems meet such interface specifications, and provide test data and adequate operation of
External Systems or of test systems simulating External Systems, or both, during the integration test which OMT shall conduct with the assistance of Customer, to validate interoperability according to the specifications prior to the Acceptance Test
and during the Acceptance Test. 

  

	 	(xi)	grant OMT’s personnel access to Customer’s premises and provide OMT personnel with office and working space (lockable), to be used exclusively by OMT personnel for the
duration of any visit, secretarial service and working tools, such as telephones and facsimile, with international access, copier, etc. , to the extent which is necessary to allow OMT to fulfill its obligations, 

  

	 	(xii)	grant OMT exclusive access to the Hardware Configurations and configuration ownership from installation until Acceptance, with the exception of Customer’s access to the
Hardware Configurations necessary to perform the Acceptance Test or other access explicitly agreed between the Parties, 

  

	 	(xiii)	participate in training according to this Agreement, 

  

	 	(xiv)	participate in the set up of the Hardware Configurations, 

  

 16 

	 	(xv)	prepare an Emergency Recovery Manual, with assistance from OMT, and define and compile user routines, 

  

	 	(xvi)	participate in project meetings and work group meetings, 

  

	 	(xvii)	define and document user routines, policies and procedures etc. 

  

	 	(xviii)	provide remote network access between OMT and Customer to systems on which the Software Product is installed at Customer sites, as specified in the Support Agreement Schedule
2. 

  

	 	(xix)	bear all telecommunication costs between OMT and Customer, including but not limited to arrangements for audio-visual meetings and remote network access as well as transport related
costs including costs for courier. 

  

	6.6	It is also the responsibility of Customer; 

  

	 	(i)	that the specification of the Software Product, Schedule 2, and technical requirements, Schedule 3, are complete and satisfies all Customer’s requirements on the
Software Product, functional, technical and other, 

  

	 	(ii)	to ensure that the delivery, licence and use of the Software Product and Documentation is not in conflict with the laws and regulations of the Territory, however, OMT warrants that
the Software Product does not infringe any intellectual property rights of third parties as set out in article 9, 

  

	 	(iii)	to obtain all necessary authorisations and permits required under the laws of the Territory, in order for the Parties to be able to fulfill its obligations under this Agreement
including but not limited to work permits for OMT’s personnel and for Customer to operate the market. 

  
 Third Party testing prior to Acceptance 
  

	6.7	Customer may use the OMnet API for testing by third party developers prior to Acceptance, in accordance with the Master Time Schedule. However, Customer acknowledges that there
might be instability in the API at this point of time and that the API may be subject to changes before Acceptance. Any support requested by third parties performing tests against the OMnet API is the sole responsibility of Customer.

  
 Production Start 
  

	6.8	All activities relating to the production start, including but not limited to definitions and installation of the production data base, any transition or migration of existing data,
execution of simulation and the commencement of commercial production of the Software Product is the responsibility of Customer. 

  

 17 

	6.9	Customer is responsible for the installation of the OM CLICK Trade application, OMnet API software and OM Licensed Third Party Standard Software, as applicable, on workstations or
other system components located outside the Central Installation Sites 1 and 2. 

  
 Changes and Modifications to the Software Product  
  

	6.10	During the Project Customer undertakes not to alter or modify the Software Product or the Hardware Configuration environment (such as command files, Third Party Standard Software
parameters and other modifiable characteristics of Third Party Standard Software) unless directed to do so or agreed to by OMT. Further Customer acknowledges that any such modification or alteration thereafter, without prior written consent from
OMT, will affect OMT’s obligations according to the Support Agreement. 

  
 Subcontractor 
  

	6.11	Obligations of Customer under this agreement may be performed by a subcontractor working on Customer’s behalf only after the prior written approval of OMT, such approval shall
not be unreasonably withheld. Customer agrees to be responsible for any such work performed on its behalf in connection with this Agreement. 

  

	7	DELIVERY 

  
 General 
  

	7.1	Each Party shall perform its obligations within time frames set out in Schedule 8, Master Time Schedule. Detailed planning shall be made by each Party within the framework of
Schedule 8. Detailed planning shall be made in co-operation with the other Party. 

  

	7.2	Each Party shall, without delay, inform its counterparty in writing on matters or circumstances which may influence the other Party’s ability to fulfill its obligations. In
particular, anticipated or real delays of the performance of a Party’s obligations hereunder or of the final determination from the United States Securities and Exchange Commission (“SEC”) on Customer’s application for
registration as a National Securities Exchange. 

  
 Project Organisations 
  

	7.3	The project organisations of the Parties are charted and described in Schedule 9. 

  
 The project manager of each Party has the authority to make committing decisions on behalf of the Party which he represents
within the framework of this Agreement. 
  
 The project manager
of OMT is: Lars-Åke Andell 
  

 18 

 The project manager of Customer is: Gary Katz 
  
 Having informed the counterparty, each Party has the right to replace his
project manager. Such replacement shall be confirmed in writing. 
  
 The joint steering group of the Parties shall monitor and supervise the Project and shall decide on changes to this Agreement. Any deviation to the Master Time Schedule or other problems which can not be solved by the project managers
during the course of the Project, shall be handled by the joint steering group. Necessary adjustments to the Master Time Schedule, financial compensation to any Party for additional work, costs and expenses due to any deviations and the like, shall
be discussed by the joint steering group in good faith.  
  
 Meetings and Reporting 
  

	7.4	Meetings between the Parties shall be arranged as required during the course of the Project. 

  
 Joint steering group meetings shall take place regularly. An appropriate interval between meetings is normally three months.
Extra meetings shall be arranged as required. The location of the meetings shall be Stockholm and New York City, the number of meetings divided evenly between the two locations. Joint steering group meetings may also take place by telephone or
audio-visual means as further set forth in Schedule 9. The arranging Party shall issue an agenda well in advance and no later than three working days prior to the meeting. The project manager of the respective Party shall participate and
submit a report. The arranging Party shall also issue minutes from the meeting no later than five working days after the meeting. The minutes shall be considered approved by the other Party unless the arranging Party is notified of any objection to
the minutes within ten working days of receipt of the minutes by the other Party. 
  
 Project management meetings shall take place regularly, normally once a month. Extra meetings shall be arranged as required. The location of the meetings shall be Stockholm and New York City as appropriate. Project
management meetings may also take place by telephone or audio-visual means as further set forth in Schedule 9. The arranging Party shall issue an agenda well in advance and no later than three working days prior to the meeting. The arranging
Party shall also issue minutes from the meeting no later than five working days after the meeting. The minutes shall be considered approved by the other Party unless the arranging Party is notified of any objection to the minutes within five working
days of receipt of the minutes by the other Party. 
  

	7.5	The Project managers of both Parties shall, on a monthly basis, issue progress reports to the other Party, outlining the performance of own obligations and activities in the
Project. 

  

 19 

 Change procedure 
  

	7.6	Both Parties are aware of the fact that changes to the Functional Specification, Schedule 2 or otherwise to this Agreement during the course of the Project may disrupt the
progress of the Project and possibly endanger timely fulfilment of the delivery. Therefore the Parties shall endeavour to minimise the number and scope of changes requested. 

  

	7.7	If, according to the judgement of one of the Parties, it is necessary to introduce a change, the change shall be requested and processed according to the change procedure specified
in Schedule 4. Any request for change of the Software Product, regardless if it is an addition, alteration or deletion, shall be processed and decided according the change procedure. 

  
 Changes within the framework of the Agreement, i.e. changes not affecting
the contract price, the Master Time Schedule or other contractual term, shall be decided by the project manager of the respective Party. Changes affecting any contractual term shall be decided by authorised representatives of the Parties.

  
 Agreement of any change by the Parties and any agreed upon
adjustments to this Agreement shall be documented in an amendment to this Agreement signed by both Parties. 
  
 Any agreed upon change shall be invoiced by OMT upon delivery of such change and payable within 30 days of invoice. However, change requests during the
Project together with customer specific adaptations requested within one (1) year from start of Customer Operations or 18 months from Acceptance, whichever comes first, in accordance with Article 7 of the Support Agreement, each with a price
exceeding [***], shall accumulate up to a maximum total amount of [***]. The accumulated amount together with an interest, calculated as set forth below, shall be paid as a turnover based fee of [***] pursuant to Article 10.1 until the entire amount
is settled by Customer. However, in the event part of the amount remains outstanding two (2) years after the start of Customer Operations, Customer undertakes to pay the remaining part as a lump sum within 30 days from invoice. 
  
 The interest shall accrue monthly at an annual interest rate of 7 %, for as
long as any amount remains outstanding. 
  
 An investigation of a
proposed change will entail additional work for both Parties. OMT shall be compensated for such work upon request on a time and material basis. 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 20 

 Acceptance Test 
  

	7.8	Customer shall validate the Software Product by conducting an Acceptance Test. The Acceptance Test shall be performed in accordance with the Acceptance Test Specification,
Acceptance Test Procedure and the Acceptance Test Plan as set out in the Regulations for Acceptance Test, Schedule 11. 

  
 Acceptance 
  

	7.9	Acceptance occurs when the Acceptance Test has been executed successfully and approved, according to the Regulations for Acceptance Test, Schedule 11.

  
 Immediately after successful execution of the
Acceptance Test, Customer shall confirm to OMT in writing Customer’s Acceptance of the Software Product which shall include a listing of any function conditionally accepted. Acceptance shall date back to the date of the successful execution of
the Acceptance Test. If Customer fails to issue such confirmation within five (5) business days, provided the Acceptance Test has been successfully executed (no tests are classified as rejected pursuant to the Regulations for Acceptance Test), the
Software Product shall be deemed Accepted by Customer at the date of the successful execution of the Acceptance Test. OMT shall correct any conditionally accepted function within the Warranty Period. 
  

	7.10	If any External System or program simulating such system, or part thereof, is not available for testing or does not conform to agreed specifications during the Acceptance Test or
preceding tests to be performed by OMT, Customer shall not be entitled to delay the Acceptance due to non-availability or malfunction of any External System. 

  

	7.11	Acceptance shall also be deemed to have occurred if (i) Customer fails to commence testing within ten (10) working days after OMT has issued a written notice to Customer, stating
that the Software Product is ready for Acceptance Test or re-test, or (ii) if Customer commences to use the Software Product for other purposes than performing the Acceptance Test or as otherwise agreed, or (iii) if Customer commences commercial
operation of the Software Product or parts thereof. 

  
 Delay of Acceptance 
  

	7.12	 If Acceptance does not occur by the end of a period of [***] from the date specified in the Master Time Schedule for Acceptance due to OMT’s inability to
correct the Software Product to successfully pass the Acceptance Test (or to other problems within OMT’s control), Customer shall have the 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 21 

	 	 
right to terminate this Agreement, within four (4) weeks, by giving OMT written notice of such termination. OMT may at any time during this six month period
acknowledge its inability to correct the Software Product (or resolve other problems within its control) to successfully pass the Acceptance Test and thereafter terminate this Agreement. [***] 

  

	7.13	If Acceptance is delayed past the date specified in the Master Time Schedule due to problems within Customer’s control, OMT’s time for performance shall be extended and
OMT is entitled to extra payment all as set forth in Article 4.2 above. 

  
 If Acceptance does not occur by the end of a period of [***] from the date specified in the Master Time Schedule for Acceptance due to problems within Customer’s control, OMT shall have the right to terminate
this Agreement, within [***], by giving Customer written notice of such termination. In the event of such termination Customer undertakes to pay OMT for all work performed under this Agreement on a time and material basis and to reimburse OMT for
all costs and expenses incurred hereunder. 
  

	7.14	Each Party shall endeavour to limit its costs which it incurs due to any delay during the Project. 

  

	7.15	If this Agreement is terminated by either Party as set out in Articles 7.12-13, the Parties shall return all Confidential Information received from each other and Customer shall
promptly return all copies of the Software Product and non-confidential Documentation, in whole or in parts to OMT. 

  

	7.16	In the event this Agreement is not terminated as set out in Articles 7.12-13 and the Parties thus decide to continue the Project, it is hereby agreed that such continuation shall
take place under the terms set forth in this Agreement, save the Parties shall renegotiate the Master Time Schedule and compensation for costs due to further delay. 

  

	8	WARRANTY 

  

	8.1	OMT shall, during the Warranty Period, provide support to Customer, including but not limited to operational system support. OMT’s obligations to provide support during the
Warranty Period is exclusively governed by the terms and conditions of the Support Agreement. The support during the Warranty Period is free of charge. Further OMT shall, during the Warranty Period unless otherwise is explicitly agreed, correct
malfunctions of the Software Product identified as “Conditionally Accepted” during the Acceptance Test, see Regulations for Acceptance Test Schedule 11. 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 22 

	9	PATENTS AND COPYRIGHTS 

  

	9.1	OMT warrants that the Software Product does not infringe any intellectual property right of third parties. 

  

	9.2	[***] 

  

	9.3	OMT shall not have any liability for a claim alleging that the Software Product or the Documentation infringe a patent, copyright, trade secret or any other protected intellectual
property right if the alleged infringement was developed based on information furnished by Customer or if the alleged infringement is the result of a modification made by Customer. 

  

	9.4	Customer undertakes to promptly notify OMT in the event that it becomes aware of any infringement or suspected infringement of OMT’s copyright, trade secret, trademarks or any
other of its intellectual property rights in or in relation to the Software Product, the Documentation or any unauthorised use or disclosure of OMT’s Confidential Information. 

  

	10	CONSIDERATION 

  

	10.1	Customer shall pay to OMT a turnover based fee as set forth below for a minimum period of [***] of continued turnover based fees. 

  
 Turnover based fee:  
  

					
	 Year of Customer
 Operations

	  	 Turnover (contracts) per day

	  	 Fee per side*

	 [***]
	  	[***]	  	[***]
	 	  	[***]	  	[***]
	 	  	[***]	  	[***]
	 	  	[***]	  	[***]
	 [***]
	  	[***]	  	[***]
	 	  	[***]	  	[***]

  

	*	Fee per side means that a fee shall be paid regarding buyer as well as seller. 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 23 

	10.2	Customer shall within seven (7) calendar days after the expiry of each calendar month forward to OMT a written statement calculating the amount due according to Article 10.1 above.

  
 Upon receipt from Customer of such statements
OMT shall invoice Customer for the payments due which shall be payable within 30 days of invoice. 
  

	10.3	OMT shall have the right to request that the above statements are certified by a mutually agreed accountant as to their correctness. The cost for the inspection shall be borne by
OMT. However, in the event the inspection results in a deviation of the calculation of the payments due under Article 10.1, which is not insignificant, in favour of OMT, Customer shall bear the costs of the inspection. 

  

	10.4	For Licence fees and payment terms for OM Licensed Third Party Standard Software see separate licence agreements entered into between the Parties. 

  

	10.5	Work on time and material basis under this Agreement shall be in accordance with the OMT Price List, Schedule 10. Such work shall be invoiced by OMT on a monthly basis in
arrears and shall be payable within 30 days of invoice. 

  

	10.6	All payments made by Customer to OMT hereunder will be made without set off or counterclaim, free and clear and without deduction of or withholding for any present or future taxes,
levies, imposts, duties, fees, assessments or other charges of whatever nature now or hereinafter imposed by any jurisdiction or by any department, agency, state or other political subdivision or taxing authority thereof or therein, and all
interest, penalties or similar liabilities with respect thereto (collectively “Taxes”). If any Taxes are so levied or imposed in respect of this Agreement, Customer shall pay the full amount of such Taxes, and such additional amounts as
may be necessary so that every net payment of all amounts due hereunder, after withholding or deduction for or on account of any Taxes, will not be less than the amount provided for in this Agreement. 

  
 Any and all payments to OMT hereunder do not include, and Customer shall be
responsible for, all applicable sales and use taxes. 
  
 An
interest charge of 30 days USD LIBOR plus 4 % per annum, or the highest lawful interest rate, whichever is lower, will be applied to all amounts that are payable to OMT or Customer which are not paid by Customer or OMT when due. Such charge shall
apply from the due date. 
  

	11	LIMITATION OF RIGHT TO CLAIM 

  

	11.1	 Each Party having an intention to assert a claim as a result of a breach or non performance under this Agreement shall give the other Party written notice of this
intention within three (3) months from the moment such Party became aware of the basis of its claim. Any arbitration proceedings shall be instituted 

  

 24 

	 	 
within one (1) year after notice has been given, thereafter the claiming Party will be barred from commencing arbitration or court proceedings of any kind.

  

	12	CLAIMS AND LIMITATION OF LIABILITY 

  

	12.1	Any Party alleging a breach of the terms of this Agreement shall have the right to bring such claim to arbitration under the provisions of section 22 below and shall be entitled to
whatever remedy, including damages, may be awarded in such arbitration. However, the Parties hereby expressly agree that with the exception [***], the total liability of either Party to pay damages, including but not limited any amounts paid
according to articles 7.12-7-13, shall be limited to [***]- provided that neither gross negligence nor intentional breach has been established. 

  

	12.2	Neither Party shall be liable for any delay in performing or failing to perform any of its obligations under this Agreement if the delay or failure results from events or
circumstances that it could not reasonably foreseen at the time of the conclusion of this Agreement or reasonably avoided. Such events or circumstances shall include but not be limited to legislative enactment, action of governmental authorities,
war, power failure, fire, water damage, labour dispute or other similar circumstances. (“Force Majeure”). Such delay or failure shall not constitute a breach of this Agreement and the time for performance shall be extended by an
equitable period in relation to the period during which performance is so prevented up to a maximum period of six (6) months. Thereafter either Party is free to terminate this Agreement without any further liability to the other Party. However, in
the event of such termination the Parties shall return all Confidential Information received from each other and Customer shall promptly return all copies of the Software Product in whole or in parts to OMT. 

  

	12.3	Neither Party shall in any event be entitled to compensation for loss of data or use, loss of profit, business, contracts, revenues, or anticipated savings, or for any indirect or
consequential damage of any nature whatsoever, or for any losses which the other Party at the time of this Agreement could not reasonably anticipate. 

  

	12.4	No other right of termination or remedy, including damages, shall exist with respect to a breach of the terms of this Agreement other than those rights expressly set forth in this
Agreement. 

  

	12.5	In the event Customer selects the operating system IBM AIX in accordance with Article 5.2 above, the following shall apply. 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 25 

 Customer acknowledges that Customer has no cause of action against IBM, for any OMT breach of OMT’s
representations, warranties or guarantees under this Agreement or the Support Agreement. 
  
 IBM shall not be liable for any costs or damages, including direct, indirect, special, incidental, or consequential damages, fees or other liability arising from this Agreement or the Support Agreement with Customer
unless otherwise explicitly agreed in writing, by OMT and IBM, or by the Customer and IBM. 
  
 IBM shall be a third party beneficiary of this Agreement with respect to the provisions included in this Article 12.5. 
  
 Liquidated damages 
  

	12.8	The provisions in this Agreement which provide for the payment of an agreed amount or a maximum amount by one Party to the another represents a genuine and reasonable attempt by the
Parties to pre-estimate the loss which is likely to flow from the breach of the provision in question. 

  

	13	HARDSHIP 

  

	13.1	The provisions on compensation and liability for costs in this Agreement are intended to be fair in all circumstances. If due to mandatory rules in any applicable law or due to a
decision or other act by any competent authority, or other circumstances one or more of the provisions on compensation cannot be enforced or an amendment of one or more of the provisions is required in order to achieve the fair result intended, the
Parties agree that they shall endeavour to find an alternate solution approaching as near as possible to the contractual situation existing prior thereto. 

  

	14	CONFIDENTIALITY UNDERTAKING 

  

	14.1	Customer understands and acknowledges that the Software Product and Documentation are important and valuable assets to OMT and that they contain Confidential Information. OMT
understands and acknowledges that Customer has provided to it, pursuant to a Non-disclosure Agreement dated January 21, 1997 confidential and proprietary technical and business information, trade secrets and know-how and will continue to provide
such additional Confidential Information (referred to as “Proprietary Information” in the January 21, 1997 Agreement), which are important and valuable assets to Customer. Both Parties understand and acknowledge that Confidential
Information shall be protected in accordance with the provisions herein. 

  

	14.2	 The Parties shall keep all Confidential Information confidential and undertakes to use the same only in connection with the purpose set forth in this Agreement and
not to make any other commercial use thereof or use the same for the benefit of itself or any third party and not make any Confidential Information, or part thereof, available to any third party outside the scope of this Agreement, unless obliged by
law, statute or court order. In the event 

  

 26 

	 	 
Confidential Information is required to be divulged by law, statute or court order by one of the Parties it shall inform the recipient of the Confidential
Information that the information released is confidential and use its best endeavours to ensure that confidentiality in the information is maintained, and shall promptly notify the other Party of its release of the Confidential Information
specifying the information disclosed, the recipient of the information, and the circumstances giving rise to the duty to disclose it. 

  

	14.3	The Parties undertake to take all reasonable steps to minimise the risk of disclosure of any Confidential Information by advisers and employees, and shall take all reasonable steps
to restrict them from divulging or communicating any Confidential Information. Each Party shall be responsible for the performance of the above on the part of its advisers or employees. If requested by the disclosing Party the receiving Party shall
procure the execution of a separate confidentiality agreement by each of its advisers or employees as are designated by it as having access to Confidential Information. 

  

	14.4	Each Party shall apply suitable security measures and a degree of care in relation to the Confidential Information as to provide adequate protection of Confidential Information from
unauthorised disclosure, copying or use. 

  

	14.5	The limitations on disclosure or use of information according to these confidentiality provisions shall not apply to information which; 

  
 (i) the receiving Party can demonstrate was known to it prior to the
disclosure thereof by the disclosing Party; or 
  
 (ii) if
disclosure is required by law, statute or court order, see Article 14.2 above; or 
  
 (iii) is public knowledge or becomes public knowledge other than by breach of this agreement or agreement previously signed by the Parties. 
  

	14.6	Compliance by one of the Parties with its obligations under this Agreement may be waived by the other Party in writing. Agreement to such waiver shall not be unreasonably withheld
following a request by one of the Parties. 

  

	14.7	Notwithstanding the termination or expiry of this Agreement for whatever reason the obligations and restrictions in this Article 14 shall be valid also after the termination of this
Agreement. 

  

	14.8	[***] 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 27 

	14.9	The Parties agree to keep confidential the terms of this Agreement, and neither Party shall make any announcement or otherwise publicise its contents. However, the Parties shall be
free to publicise the existence of this Agreement and the co-operation between the Parties after formal publication in the Federal Register of the United States of notice by SEC of Customer’s application for registration of a National
Securities Exchange. 

  

	15	INDEPENDENT BUSINESS 

  

	15.1	Neither Party has the right or power, express or implied, to make any commitments of any kind on behalf of the other Party without prior written consent of the other Party.

  

	16	WHOLE AGREEMENT 

  

	16.1	The recitals and all of the schedules to this Agreement constitute an integral part of this Agreement. 

  

	16.2	This Agreement supersedes and invalidates all other commitments, representations and warranties relating to the subject matter hereof which may have been made by the Parties either
orally or in writing prior to the Effective Date of this Agreement, and which shall become null and void from the Effective Date hereof. 

  

	17	AMENDMENTS 

  

	17.1	No modification, alteration, addition or change of the terms hereof shall be binding on the Parties unless agreed by both Parties in writing. 

  

	18	WAIVER 

  

	18.1	The waiver or forbearance or failure of a Party in insisting in any one or more instances upon the performance of any provisions of this Agreement shall not be construed as a waiver
or relinquishment of that Party’s rights to future performance of such provision and the other Party’s obligation in respect of such future performance shall continue in full force and effect. 

  

	19	SEVERABILITY 

  

	19.1	In the event that any of the terms of this Agreement are determined invalid, unlawful or unenforceable to any extent, such term shall be severed from the remaining terms which shall
continue to be valid to the fullest extent permitted by law, unless such invalidity, unlawfulness or unenforceability substantially alters the terms under which the Agreement itself was entered into. If such is the case, the Agreement as a whole
shall terminate. 

  

 28 

	20	TERM AND TERMINATION OF THE AGREEMENT 

  

	20.1	The Effective Date shall be the date of signing of this Agreement. 

  

	20.2	The Parties’ right to terminate this Agreement due to delay of Acceptance is exclusively governed by Article 7. This Agreement can not be terminated by Customer after
Acceptance or by OMT after final payment, provided however OMT is entitled to terminate the licence to the Software Product pursuant to Articles 5.20 during the term of the licence. 

  

	20.3	In the event the final determination from the United States Securities and Exchange Commission (“SEC”) on Customer’s application for registration as a National
Securities Exchange is negative or has not been obtained 12 months after Acceptance, either Party may terminate this Agreement by immediate effect. In the event of such termination the Parties shall promptly return all Confidential Information
received from each other and Customer shall promptly return all copies of the Software Product and non-confidential Documentation, in whole or in parts, to OMT. 

  

	20.4	If Customer fails to perform any of its material obligations under this Agreement, including but not limited to default of payment, and such failure continues for a period of thirty
(30) days in the event of default of payment, otherwise ninety (90) days, following receipt of written notice of such failure with demand to cure, or if Customer decides not start the Customer Operations even though Customer has obtained final
approval from the United States Securities and Exchange Commission (“SEC”) on Customer’s application for registration as a National Securities Exchange or has not started the Customer Operations within 12 months from such final
approval or within 12 months from Acceptance, whichever comes last, OMT shall have the right to terminate this Agreement with immediate effect by giving Customer written notice of such termination. In the event of such termination the Parties shall
promptly return all Confidential Information received from each other and Customer shall promptly return all copies of the Software Product and non-confidential Documentation, in whole or in parts, to OMT. Further, Customer undertakes to pay OMT for
all work performed under this Agreement on a time and material basis, as per Article 10.5 and to reimburse OMT for all related costs and expenses incurred hereunder and to pay to OMT [***]- as liquidated damages. OMT shall not be entitled to any
other amounts due to the termination. 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  
 29 

	20.5	If OMT fails to perform any of its material obligations under this Agreement prior to Acceptance, and such failure continues for a period of ninety (90) days following receipt of
written notice of such failure with demand to cure, Customer shall have the right to terminate this Agreement with immediate effect by giving OMT written notice of such termination. In the event of such termination the Parties shall promptly return
all Confidential Information received from each other and Customer shall promptly return all copies of the Software Product and non-confidential Documentation, in whole or in parts, to OMT. Customer is entitled to be reimbursed for all sums paid to
OMT under Article 10 and shall not be entitled to any other amounts. 

  

	20.6	This Agreement may also be terminated as set out in Article 12.2. 

  

	21	ASSIGNMENT 

  

	21.1	The Parties may after written consent from the other Party assign or transfer this Agreement, in whole or in part, to subsidiaries or companies owned or controlled by it or by its
parent company or to a third party purchaser for value of all or substantially all of the assets of the business of the Party concerning the subject matter of this Agreement - to be discussed. Such consent shall not be unreasonably withheld or
delayed. 

  
 OMT shall have the right to assign or
transfer its obligations hereunder which shall be performed in the Territory, to its subsidiary OM Support Inc. incorporated under the laws of the state of Delaware or another US subsidiary. 
  

	21.2	In addition to this neither Party may assign or transfer any of its rights, duties or obligations according to this Agreement without the written consent of the other Party.

  

	22	GOVERNING LAW AND ARBITRATION 

  

	22.1	This Agreement shall in all respects regarding substantive law be governed by and construed in accordance with Swedish law exclusively, as such law be in effect from time to time,
and such law shall also be applied to this Agreement and any and all disputes, claims etc. which may arise hereunder, in case of arbitration, court proceedings or otherwise. 

  

 30 

	22.2	The Parties agree that the United Nations Convention on contracts for the International Sale of Goods shall not apply to governance and construction of this Agreement.

  

	22.3	Any dispute, controversy or claim between Customer and OMT arising out of or relating to this Agreement, the breach termination or validity thereof which the Parties have failed to
solve in the joint steering group or otherwise through negotiations or through an expert resolution as agreed upon between the Parties, shall be resolved by arbitration convened and conducted in accordance with the United Nations Commission on
International Trade Law (“UNCITRAL”) arbitration rules then in force, (the “Rules”) being supplemented by Swedish procedural law. 

  

	22.4	There shall be three arbitrators who shall be appointed in accordance with the Rules. If any arbitrator has not been appointed within the time limits specified in the Rules, on the
request of either Party, such appointment shall be made by the International Court of Arbitration of the International Chamber of Commerce (“ICC”) upon the written request of either the claimant or the respondent, within 30 days of
such request. The arbitration shall be held in London, England and shall be conducted in the English language. 

  

	22.5	To the extent that it is reasonably possible, the performance of this Agreement shall continue during the referral of any dispute to arbitration. 

  

	22.6	The Parties hereby waive any rights of application or appeal to any court or tribunal of competent jurisdiction (including without limitation the courts of the Territory, England
and of Sweden) to the fullest extent permitted by law in connection with any question of law arising in the course of the arbitration or with respect to any award made except for actions relating to enforcement of the arbitration agreement or an
arbitral award. 

  
 The award shall be final and
binding upon the Parties, and shall be the sole and exclusive remedy between the Parties regarding any claims, counter-claims, issues, or accounting presented to the arbitral tribunal. Judgement upon any award may be entered in any court having
jurisdiction thereof. 
  

	22.7	In disputes involving breach of Customer’s obligations regarding intellectual and other property rights in the Software Product or the Documentation or breach of a Party’s
obligations regarding Confidential Information, this Article 25 will not preclude a Party from obtaining interim or injunctive relief on an immediate basis from a court of competent jurisdiction pending the outcome of arbitration.

  

  
 This Agreement shall be executed in two identical copies of which the Parties shall receive one each. 
  

					
			
	 Stockholm, 18. March, 1998
	 	 	 	  
	 Place and date
	 	 	 	 Place and Date

			
	 OM TECHNOLOGY AB
	 	 	 	 International Securities Exchange LLC

			
	 /s/ Magnus Karlsson     /s/ Hans Berggren
	 	 	 	 /s/ David Krell

	 Magnus Karlsson           Hans Berggren
	 	 	 	             David Krell

	 Exec. Vice Pres.              General Counsel
	 	 	 	 President and CEO

			
	  	 	 	 	  
	 Printed name and title
	 	 	 	 Printed name and title

  

 31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]