Document:

EXHIBIT 4.1

                               GASCO ENERGY, INC.
                           2003 RESTRICTED STOCK PLAN

                                   I. PURPOSE

         The purpose of the GASCO ENERGY, INC. 2003 RESTRICTED STOCK PLAN (the
"Plan") is to provide a means through which GASCO ENERGY, INC., a Nevada
corporation (the "Company"), and its Affiliates may attract able persons to
serve as Directors or Consultants or to enter the employ of the Company and its
Affiliates and to provide a means whereby those individuals upon whom the
responsibilities of the successful administration and management of the Company
and its Affiliates rest, and whose present and potential contributions to the
Company and its Affiliates are of importance, can acquire and maintain stock
ownership, thereby strengthening their concern for the welfare of the Company
and its Affiliates. A further purpose of the Plan is to provide such individuals
with additional incentive and reward opportunities designed to enhance the
profitable growth of the Company and its Affiliates. Accordingly, the Plan
provides for granting Restricted Stock Awards as provided herein.

                                II. DEFINITIONS

         The following definitions shall be applicable throughout the Plan
unless specifically modified by any paragraph:

(a) "Affiliate" means any corporation, partnership, limited liability company or
partnership, association, trust or other organization which, directly or
indirectly, controls, is controlled by, or is under common control with, the
Company. For purposes of the preceding sentence, "control" (including, with
correlative meanings, the terms "controlled by" and "under common control
with"), as used with respect to any entity or organization, shall mean the
possession, directly or indirectly, of the power (i) to vote more than 50% of
the securities having ordinary voting power for the election of directors of the
controlled entity or organization, or (ii) to direct or cause the direction of
the management and policies of the controlled entity or organization, whether
through the ownership of voting securities or by contract or otherwise.

(b) "Award" means, individually or collectively, any Restricted Stock Award.

(c) "Board" means the Board of Directors of the Company.

(d) "Code" means the Internal Revenue Code of 1986, as amended. Reference in the
Plan to any section of the Code shall be deemed to include any amendments or
successor provisions to such section and any regulations under such section.

(e) "Committee" means a committee of the Board that is selected by the Board as
provided in Paragraph IV(a).

(f) "Common Stock" means the common stock, par value $.001 per share, of the
Company.

(g) "Company" means Gasco Energy, Inc., a Nevada corporation.

                                       1
<PAGE>

(h) "Consultant" means any person who is not an Employee or a Director and who
is providing advisory or consulting services to the Company or any Affiliate.

(i) "Director" means an individual elected to the Board by the stockholders of
the Company or by the Board under applicable corporate law who is serving on the
Board on the date the Plan is adopted by the Board or is elected to the Board
after such date.

(j) "Employee" means any person (including a Director) in an employment
relationship with the Company or any Affiliate.

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

(l) "Participant" means an Employee, Consultant, or Director who has been
granted an Award.

(m) "Plan" means the Gasco Energy,  Inc. 2003 Restricted  Stock Plan, as amended
from time to time.

(n) "Restricted Stock Agreement" means a written agreement between the Company
and a Participant with respect to a Restricted Stock Award.

(o) "Restricted Stock Award" means an Award granted under the Plan.

(p) "Rule 16b-3" means SEC Rule 16b-3 promulgated under the 1934 Act, as such
may be amended from time to time, and any successor rule, regulation or statute
fulfilling the same or a similar function.

                  III. EFFECTIVE DATE AND DURATION OF THE PLAN

         The Plan shall become effective upon the date of its adoption by the
Board, provided the Plan is approved by the stockholders of the Company within
12 months thereafter. Notwithstanding any provision in the Plan or in any
Restricted Stock Agreement, no Restricted Stock Award shall vest prior to such
stockholder approval. No further Awards may be granted under the Plan after 10
years from the date the Plan is adopted by the Board. The Plan shall remain in
effect until all Restricted Stock Awards granted under the Plan have vested or
been forfeited.

                               IV. ADMINISTRATION

(a) Composition of Committee. The Plan shall be administered by a committee of,
and appointed by, the Board that shall be comprised solely of two or more
"Non-Employee Directors" as defined in Rule 16b-3.

(b) Powers. Subject to the express provisions of the Plan, the Committee shall
have authority, in its discretion, to determine which Employees, Consultants, or
Directors shall receive an Award, the time or times when such Award shall be
made and the number of shares to be subject to each Restricted Stock Award. In
making such determinations, the Committee shall take into account the nature of
the services rendered by the respective Employees, Consultants, or Directors,
their present and potential contribution to the Company's success and such other
factors as the Committee in its discretion shall deem relevant.

                                       2
<PAGE>

(c) Additional Powers. The Committee shall have such additional powers as are
delegated to it by the other provisions of the Plan. Subject to the express
provisions of the Plan, this shall include the power to construe the Plan and
the respective agreements executed hereunder, to prescribe rules and regulations
relating to the Plan, and to determine the terms, restrictions and provisions of
the agreement relating to each Award, and to make all other determinations
necessary or advisable for administering the Plan. The Committee may correct any
defect or supply any omission or reconcile any inconsistency in the Plan or in
any agreement relating to an Award in the manner and to the extent it shall deem
expedient to carry it into effect. The determinations of the Committee on the
matters referred to in this Paragraph IV shall be conclusive.

                  V. SHARES SUBJECT TO THE PLAN; AWARD LIMITS;
                                 GRANT OF AWARDS

(a) Shares Subject to the Plan and Award Limits. Subject to adjustment as
provided in Paragraph VIII(b), the aggregate number of shares of Common Stock
that may be issued under the Plan shall not exceed 425,000 shares. Shares
shall be deemed to have been issued under the Plan only to the extent actually
issued and delivered pursuant to an Award. To the extent that an Award lapses or
the rights of its holder terminate, any shares of Common Stock subject to such
Award shall again be available for the grant of an Award under the Plan.

(b) Grant of Awards. The Committee may from time to time grant Awards to one or
more Employees, Consultants, or Directors determined by it to be eligible for
participation in the Plan in accordance with the terms of the Plan.

(c) Stock Offered. Subject to the limitations set forth in Paragraph V(a), the
stock to be offered pursuant to the grant of an Award may be authorized but
unissued Common Stock or Common Stock previously issued and outstanding and
reacquired by the Company. Any of such shares which remain unissued and which
are not subject to outstanding Awards at the termination of the Plan shall cease
to be subject to the Plan but, until termination of the Plan, the Company shall
at all times make available a sufficient number of shares to meet the
requirements of the Plan.

                                VI. ELIGIBILITY

         Awards may be granted only to persons who, at the time of grant, are
Employees, Consultants, or Directors. An Award may be granted on more than one
occasion to the same person.

                          VII. RESTRICTED STOCK AWARDS

(a) Forfeiture Restrictions To Be Established by the Committee. Shares of Common
Stock that are the subject of a Restricted Stock Award shall be subject to
restrictions on disposition by the Participant and an obligation of the
Participant to forfeit and surrender the shares to the Company under certain
circumstances (the "Forfeiture Restrictions"). The Forfeiture Restrictions shall
be determined by the Committee in its sole discretion, and the Committee may
provide that the Forfeiture Restrictions shall lapse upon (i) the attainment of
one or more performance targets established by the Committee, (ii) the
Participant's continued employment with the Company or an Affiliate or continued
service as a Consultant or Director for a specified period of time, (iii) the
occurrence of any event or the satisfaction of any other condition specified by
the Committee in its sole discretion, or (iv) a combination of any of the
foregoing. Each Restricted Stock Award may have different Forfeiture
Restrictions, in the discretion of the Committee.

                                       3
<PAGE>

(b) Other Terms and Conditions. Common Stock awarded pursuant to a Restricted
Stock Award shall be represented by a stock certificate registered in the name
of the Participant. Unless provided otherwise in a Restricted Stock Agreement,
the Participant shall have the right to receive dividends and other
distributions with respect to Common Stock subject to a Restricted Stock Award,
to vote Common Stock subject thereto and to enjoy all other stockholder rights,
except that (i) the Participant shall not be entitled to delivery of the stock
certificate until the Forfeiture Restrictions have expired, (ii) the Company
shall retain custody of the stock until the Forfeiture Restrictions have
expired, (iii) the Participant may not sell, transfer, pledge, exchange,
hypothecate or otherwise dispose of the stock until the Forfeiture Restrictions
have expired, and (iv) a breach of the terms and conditions established by the
Committee pursuant to the Restricted Stock Agreement shall cause a forfeiture of
the Restricted Stock Award. At the time of such Award, the Committee may, in its
sole discretion, prescribe additional terms, conditions or restrictions relating
to Restricted Stock Awards, including, but not limited to, rules pertaining to
the treatment of distributions or dividends on shares of Restricted Stock and to
the termination of employment or service as a Consultant or Director (by
retirement, disability, death or otherwise) of a Participant prior to expiration
of the Forfeitures Restrictions. Such additional terms, conditions or
restrictions shall be set forth in a Restricted Stock Agreement made in
conjunction with the Award.

(c) Payment for Restricted Stock. The Committee shall determine the amount and
form of any payment for Common Stock received pursuant to a Restricted Stock
Award, provided that in the absence of such a determination, a Participant shall
not be required to make any payment for Common Stock received pursuant to a
Restricted Stock Award, except to the extent otherwise required by law.

(d) Committee's Discretion to Accelerate Vesting of Restricted Stock Awards. The
Committee may, in its discretion and as of a date determined by the Committee,
fully vest any or all Common Stock awarded to a Participant pursuant to a
Restricted Stock Award and, upon such vesting, all restrictions applicable to
such Restricted Stock Award shall terminate as of such date. Any action by the
Committee pursuant to this Subparagraph may vary among individual Participants
and may vary among the Restricted Stock Awards held by any individual
Participant.

(e) Restricted Stock Agreements. At the time any Award is made under this
Paragraph VII, the Company and the Participant shall enter into a Restricted
Stock Agreement setting forth each of the matters contemplated hereby and such
other matters as the Committee may determine to be appropriate. The terms and
provisions of the respective Restricted Stock Agreements need not be identical.
Subject to the consent of the Participant, the Committee may, in its sole
discretion, amend an outstanding Restricted Stock Agreement from time to time in
any manner that is not inconsistent with the provisions of the Plan.

                                       4
<PAGE>

                    VIII. RECAPITALIZATION OR REORGANIZATION

(a) No Effect on Right or Power. The existence of the Plan and the Awards
granted hereunder shall not affect in any way the right or power of the Board or
the stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company's or any
Affiliate's capital structure or its business, any merger or consolidation of
the Company or any Affiliate, any issue of debt or equity securities ahead of or
affecting Common Stock or the rights thereof, the dissolution or liquidation of
the Company or any Affiliate or any sale, lease, exchange or other disposition
of all or any part of its assets or business or any other corporate act or
proceeding.

(b) Changes in the Common Stock. In the event of changes in the outstanding
Common Stock by reason of recapitalizations, reorganizations, mergers,
consolidations, combinations, split-ups, split-offs, spin-offs, exchanges or
other relevant changes in capitalization or distributions to the holders of
Common Stock, the aggregate number of shares available for Awards under the Plan
shall be appropriately adjusted to the extent, if any, determined by the
Committee, whose determination shall be conclusive.

(c) Stockholder Action. Any adjustment provided for in Subparagraph (b) above
shall be subject to any required stockholder action.

(d) No Adjustments unless Otherwise Provided. Except as hereinbefore expressly
provided, the issuance by the Company of shares of stock of any class or
securities convertible into shares of stock of any class, for cash, property,
labor or services, upon direct sale, upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of the Company
convertible into such shares or other securities, and in any case whether or not
for fair value, shall not affect, and no adjustment by reason thereof shall be
made with respect to, the number of shares of Common Stock subject to Awards
theretofore granted.

                   IX. AMENDMENT AND TERMINATION OF THE PLAN

         The Board in its discretion may terminate the Plan at any time with
respect to any shares of Common Stock for which Awards have not theretofore been
granted. The Board shall have the right to alter or amend the Plan or any part
thereof from time to time; provided that no change in the Plan may be made that
would impair the rights of a Participant with respect to an Award theretofore
granted without the consent of the Participant, and provided, further, that the
Board may not, without approval of the stockholders of the Company, amend the
Plan to increase the maximum aggregate number of shares that may be issued under
the Plan or change the class of individuals eligible to receive Awards under the
Plan.

                                X. MISCELLANEOUS

(a) No Right To An Award. Neither the adoption of the Plan nor any action of the
Board or of the Committee shall be deemed to give an Employee, Consultant, or
Director any right to a Restricted Stock Award, or any other rights hereunder
except as may be evidenced by a Restricted Stock Agreement duly executed on
behalf of the Company, and then only to the extent and on the terms and
conditions expressly set forth therein. The Plan shall be unfunded. The Company
shall not be required to establish any special or separate fund or to make any
other segregation of funds or assets to assure the performance of its
obligations under any Award.

                                       5
<PAGE>

(b) No Employment/Membership Rights Conferred. Nothing contained in the Plan
shall (i) confer upon any Employee or Consultant any right with respect to
continuation of employment or of a consulting or advisory relationship with the
Company or any Affiliate or (ii) interfere in any way with the right of the
Company or any Affiliate to terminate his or her employment or consulting or
advisory relationship at any time. Nothing contained in the Plan shall confer
upon any Director any right with respect to continuation of membership on the
Board.

(c) Other Laws; Withholding. The Company shall not be obligated to issue any
Common Stock pursuant to any Award granted under the Plan at any time when the
shares covered by such Award have not been registered under the Securities Act
of 1933, as amended, and such other state and federal laws, rules and
regulations as the Company or the Committee deems applicable and, in the opinion
of legal counsel for the Company, there is no exemption from the registration
requirements of such laws, rules and regulations available for the issuance and
sale of such shares. No fractional shares of Common Stock shall be delivered,
nor shall any cash in lieu of fractional shares be paid. The Company shall have
the right to deduct in connection with all Awards any taxes required by law to
be withheld and to require any payments required to enable it to satisfy its
withholding obligations.

(d) No Restriction on Corporate Action. Nothing contained in the Plan shall be
construed to prevent the Company or any Affiliate from taking any action which
is deemed by the Company or such Affiliate to be appropriate or in its best
interest, whether or not such action would have an adverse effect on the Plan or
any Award made under the Plan. No Participant, beneficiary or other person shall
have any claim against the Company or any Affiliate as a result of any such
action.

(e) Restrictions on Transfer. An Award shall not be transferable otherwise than
(i) by will or the laws of descent and distribution, (ii) pursuant to a
qualified domestic relations order as defined by the Code or Title I of the
Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder, or (iii) with the consent of the Committee.

(f) Governing Law. The Plan shall be governed by, and construed in accordance
with, the laws of the State of Nevada, without regard to conflicts of law
principles thereof.

                                       6
<PAGE>Exhibit 10.1

$1,750,000,000

 

TERM LOAN AGREEMENT

 

dated as of

 

June 9, 2003

 

among

 

QWEST CORPORATION, 

as Borrower,

and

THE LENDERS LISTED HEREIN

 

and

 

MERRILL LYNCH & CO., 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, 

as Sole Book-Runner, Joint Lead Arranger and Syndication Agent,

and

 

CREDIT SUISSE FIRST BOSTON, acting

through its Cayman Islands Branch,

as Joint Lead Arranger and Administrative Agent,

 

and

DEUTSCHE BANK TRUST COMPANY

AMERICAS,

as Documentation Agent,

 

and

 

DEUTSCHE BANK SECURITIES INC.,

as Arranger

 

 

TABLE OF CONTENTS

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE 1

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  DEFINITIONS

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section 1.01.

  	

   

  	

  The Definitions

  	

   

  	

   

  	

   

  
	

  Section

  1.02.

  	

   

  	

  Accounting

  Terms and Determinations

  	

   

  	

   

  	

   

  
	

  Section 1.03.

  	

   

  	

  Types of Borrowings

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE

  2

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  THE

  CREDITS

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section 2.01.

  	

   

  	

  Commitments to Lend

  	

   

  	

   

  	

   

  
	

  Section 2.02.

  	

   

  	

  Notice of Borrowing

  	

   

  	

   

  	

   

  
	

  Section 2.03.

  	

   

  	

  [Intentionally

  Deleted]

  	

   

  	

   

  	

   

  
	

  Section

  2.04.

  	

   

  	

  Notice

  to Lenders; Funding of Loans

  	

   

  	

   

  	

   

  
	

  Section

  2.05.

  	

   

  	

  Notes

  	

   

  	

   

  	

   

  
	

  Section 2.06.

  	

   

  	

  Maturity of Loans

  	

   

  	

   

  	

   

  
	

  Section 2.07.

  	

   

  	

  Interest Rates

  	

   

  	

   

  	

   

  
	

  Section 2.08.

  	

   

  	

  [Intentionally

  Deleted].

  	

   

  	

   

  	

   

  
	

  Section 2.09.

  	

   

  	

  Termination

  of Commitments

  	

   

  	

   

  	

   

  
	

  Section

  2.10.

  	

   

  	

  Method

  of Electing Interest Rates with Respect to Tranche A Loans

  	

   

  	

   

  	

   

  
	

  Section 2.11.

  	

   

  	

  Prepayments

  	

   

  	

   

  	

   

  
	

  Section

  2.12.

  	

   

  	

  General

  Provisions as to Payments

  	

   

  	

   

  	

   

  
	

  Section 2.13.

  	

   

  	

  Funding Losses

  	

   

  	

   

  	

   

  
	

  Section

  2.14.

  	

   

  	

  Computation

  of Interest and Fees

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE

  3

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  CONDITIONS

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section 3.01.

  	

   

  	

  Closing

  	

   

  	

   

  	

   

  
	

  Section 3.02.

  	

   

  	

  The Borrowing Date

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE 4

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  REPRESENTATIONS

  AND WARRANTIES

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section

  4.01.

  	

   

  	

  Corporate

  Existence and Power

  	

   

  	

   

  	

   

  
	

  Section

  4.02.

  	

   

  	

  Corporate

  and Governmental Authorization; No Contravention

  	

   

  	

   

  	

   

  

 

i

 

 

	

  Section 4.03.

  	

   

  	

  Binding Effect

  	

   

  	

   

  	

   

  
	

  Section 4.04.

  	

   

  	

  Financial

  Information

  	

   

  	

   

  	

   

  
	

  Section 4.05.

  	

   

  	

  Litigation

  	

   

  	

   

  	

   

  
	

  Section 4.06.

  	

   

  	

  Compliance with

  ERISA

  	

   

  	

   

  	

   

  
	

  Section 4.07.

  	

   

  	

  Environmental Matters

  	

   

  	

   

  	

   

  
	

  Section 4.08.

  	

   

  	

  Taxes

  	

   

  	

   

  	

   

  
	

  Section 4.09.

  	

   

  	

  Subsidiaries

  	

   

  	

   

  	

   

  
	

  Section 4.10.

  	

   

  	

  Not an

  Investment Company

  	

   

  	

   

  	

   

  
	

  Section 4.11.

  	

   

  	

  Full Disclosure

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE

  5

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  COVENANTS

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section 5.01.

  	

   

  	

  Information

  	

   

  	

   

  	

   

  
	

  Section

  5.02.

  	

   

  	

  Maintenance

  of Property; Insurance

  	

   

  	

   

  	

   

  
	

  Section 5.03.

  	

   

  	

  Maintenance of

  Existence

  	

   

  	

   

  	

   

  
	

  Section 5.04.

  	

   

  	

  Compliance with

  Laws

  	

   

  	

   

  	

   

  
	

  Section 5.05.

  	

   

  	

  Books and Records

  	

   

  	

   

  	

   

  
	

  Section 5.06.

  	

   

  	

  [Intentionally

  Deleted].

  	

   

  	

   

  	

   

  
	

  Section 5.07.

  	

   

  	

  Negative Pledge

  	

   

  	

   

  	

   

  
	

  Section

  5.08.

  	

   

  	

  Consolidations, Mergers and Sales of

  Assets

  	

   

  	

   

  	

   

  
	

  Section 5.09.

  	

   

  	

  Use of Proceeds

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE 6

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  DEFAULTS

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section 6.01.

  	

   

  	

  Events of Default

  	

   

  	

   

  	

   

  
	

  Section 6.02.

  	

   

  	

  Notice of Default

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE

  7

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  THE

  AGENTS

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section

  7.01.

  	

   

  	

  Appointment

  and Authorization

  	

   

  	

   

  	

   

  
	

  Section 7.02.

  	

   

  	

  Agents and

  Affiliates

  	

   

  	

   

  	

   

  
	

  Section 7.03.

  	

   

  	

  Action by Agents

  	

   

  	

   

  	

   

  
	

  Section 7.04.

  	

   

  	

  Consultation

  with Experts

  	

   

  	

   

  	

   

  
	

  Section 7.05.

  	

   

  	

  Delegation of

  Duties

  	

   

  	

   

  	

   

  
	

  Section 7.06.

  	

   

  	

  Liability of Agents

  	

   

  	

   

  	

   

  
	

  Section 7.07.

  	

   

  	

  Indemnification

  	

   

  	

   

  	

   

  
	

  Section

  7.08.

  	

   

  	

  Credit

  Decision; Disclosure of Information by Agents

  	

   

  	

   

  	

   

  
	

  Section

  7.09.

  	

   

  	

  Successor

  Administrative Agent

  	

   

  	

   

  	

   

  
	

  Section 7.10.

  	

   

  	

  Administrative

  Agent’s Fee

  	

   

  	

   

  	

   

  

 

ii

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE 8

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  CHANGES IN

  CIRCUMSTANCES

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section

  8.01.

  	

   

  	

  Basis

  for Determining Interest Rate Inadequate or Unfair

  	

   

  	

   

  	

   

  
	

  Section 8.02.

  	

   

  	

  Illegality

  	

   

  	

   

  	

   

  
	

  Section

  8.03.

  	

   

  	

  Increased

  Cost and Reduced Return

  	

   

  	

   

  	

   

  
	

  Section 8.04.

  	

   

  	

  Taxes

  	

   

  	

   

  	

   

  
	

  Section

  8.05.

  	

   

  	

  Base

  Rate Loans Substituted for Affected Euro-Dollar Loans

  	

   

  	

   

  	

   

  
	

  Section 8.06.

  	

   

  	

  Substitution of

  Lender

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE 9

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  [INTENTIONALLY DELETED]

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ARTICLE

  10

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  MISCELLANEOUS

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Section 10.01.

  	

   

  	

  Notices

  	

   

  	

   

  	

   

  
	

  Section 10.02.

  	

   

  	

  No Waivers

  	

   

  	

   

  	

   

  
	

  Section

  10.03.

  	

   

  	

  Expenses;

  Indemnification

  	

   

  	

   

  	

   

  
	

  Section 10.04.

  	

   

  	

  Sharing of Set-offs

  	

   

  	

   

  	

   

  
	

  Section 10.05.

  	

   

  	

  Amendments and

  Waivers

  	

   

  	

   

  	

   

  
	

  Section 10.06.

  	

   

  	

  Successors and

  Assigns

  	

   

  	

   

  	

   

  
	

  Section

  10.07.

  	

   

  	

  Governing

  Law; Submission to Jurisdiction

  	

   

  	

   

  	

   

  
	

  Section

  10.08.

  	

   

  	

  Counterparts;

  Integration

  	

   

  	

   

  	

   

  
	

  Section 10.09.

  	

   

  	

  WAIVER OF JURY

  TRIAL

  	

   

  	

   

  	

   

  
	

  Section

  10.10.

  	

   

  	

  No Reliance

  on Margin Stock

  	

   

  	

   

  	

   

  
	

  Section

  10.11.

  	

   

  	

  Lead Arrangers, Sole Book-Runner,

  Syndication Agent, Arranger and Documentation Agent

  	

   

  	

   

  	

   

  
	

  Section

  10.12.

  	

   

  	

  Representations

  and Acknowledgements of Lenders

  	

   

  	

   

  	

   

  
	

  Section 10.13.

  	

   

  	

  Confidentiality

  	

   

  	

   

  	

   

  

 

 

iii

 

TERM LOAN AGREEMENT

AGREEMENT dated as of

June 9, 2003, among QWEST CORPORATION, as Borrower, the LENDERS listed on

the signature pages party hereto and MERRILL LYNCH & CO., MERRILL LYNCH,

PIERCE, FENNER & SMITH INCORPORATED, as Joint Lead Arranger, Sole

Book-Runner and Syndication Agent, CREDIT SUISSE FIRST BOSTON, a Swiss bank

acting through its Cayman Islands Branch, as Joint Lead Arranger and

Administrative Agent, and DEUTSCHE BANK TRUST COMPANY AMERICAS, as

Documentation Agent, and DEUTSCHE BANK SECURITIES INC., as Arranger.

WHEREAS, subject to and upon

the terms and conditions set forth herein, the Lenders are willing to make

available to the Borrower the respective term loans provided for herein;

NOW, THEREFORE, the parties

hereto agree as follows:

ARTICLE 1

DEFINITIONS

Section 1.01.             The Definitions.

The following terms, as used

herein, have the following meanings:

“Adjusted London

InterBank Offered Rate” has the meaning set forth in Section 2.07.

“Administrative Agent”

means Credit Suisse First Boston, acting through its Cayman Islands Branch, in

its capacity as Administrative Agent for the Lenders hereunder, together with

its successors in such capacity.

“Administrative

Questionnaire” means, with respect to each Lender, an administrative

questionnaire in the form attached hereto as Exhibit G duly completed by

such Lender.

“Affiliate” means any

other Person directly or indirectly controlling, controlled by, or under common

control with, that Person.  For the

purposes of this definition, “control” (including, with correlative meanings,

the terms “controlling”, “controlled by” and “under common control with”), as

applied to any Person, means the possession, directly or indirectly, of the

power to direct or cause the direction of the management and policies of that

Person, whether through the ownership of voting securities or by contract or

otherwise.

“Agent” means any of

the Administrative Agent, Syndication Agent, Documentation Agent, or Lead

Arrangers and/or Arranger, as applicable, and “Agents” shall mean all of

them collectively.

“Agent-Related Person”

has the meaning set forth in Section 7.08.

 

“Agreement” means

this Term Loan Agreement dated as of June 9, 2003, as the same may from

time to time be further amended, amended and restated, modified or

supplemented.

“ARCA” means the Second

Amended and Restated Credit Agreement dated as of May 4, 2001, amended and

restated as of March 12, 2002, and further amended and restated as of August

30, 2002 among Qwest Services Corporation, Qwest Communications International

Inc., Qwest Dex Holdings, Inc., Qwest Dex Inc., the Banks listed therein, and

Bank of America, N.A., as Administrative Agent, as it may be amended, amended

and restated, modified or otherwise supplemented and in effect from time to

time.

“Arranger” means

Deutsche Bank Securities Inc., as Arranger for the Lenders hereunder.

“Assignee” has the

meaning set forth in Section 10.06(c).

“Assignment and

Assumption Agreement” means an Assignment and Assumption Agreement

substantially in the form of Exhibit F hereto.

“Base Rate” means,

for any day, a rate per annum equal to the higher of (i) the sum of 1/2 of 1%

plus the Federal Funds Rate for such day and (ii) the Prime Rate for such day

minus 1%.

“Base Rate Loan”

means (i) a Tranche A Loan which bears interest at the Base Rate pursuant to

the applicable Notice of Borrowing or Notice of Interest Rate Election, or the

provisions of Article 8 or (ii) an overdue amount which was a Base Rate Loan

immediately before it became overdue.

“Base Rate Margin”

has the meaning set forth in Section 2.07.

“Benefit Arrangement”

means at any time an employee benefit plan within the meaning of Section 3(3)

of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or

otherwise contributed to by any member of the ERISA Group.

“Borrower” means

Qwest Corporation, a Colorado corporation.

“Borrowing” has the

meaning set forth in Section 1.03.

“Borrowing Date”

means the date on which the Loans are to be made.

“Class”, when used in

respect of any Loan, Borrowing or Commitment, refers to whether such Loan, or

the Loans comprising such Borrowing, or the Loans to be made pursuant to such

Commitment, are Tranche A Loans or Tranche B Loans.

“Closing Date” means

the date on which the Administrative Agent shall have received the documents or

evidence specified in or pursuant to Section 3.01.

2

 

“Commitment” means,

with respect to each Lender, the amount set forth opposite the name of such

Lender on the Annex A hereto, or as amended as a result of any Assignment

and Assumption Agreement.

“Company” means Qwest

Communications International Inc., a Delaware corporation, and its successors.

“Comparable Treasury Issue” means the United States Treasury

security selected by a Reference Treasury Dealer selected by the Administrative

Agent as having a maturity comparable to the remaining term to maturity of the

Tranche B Loans to be prepaid that would be utilized, at the time of

selection and in accordance with customary financial practice, in evaluating

yields on new issues of corporate debt of comparable maturity to the remaining

term to maturity of such Tranche B Loans.

“Comparable Treasury

Price” means, with respect to any date of prepayment, (i) the average

of the bid and asked prices for the Comparable Treasury Issue (expressed in

each case as a percentage of its principal amount) on the third Domestic

Business Day preceding such date of prepayment, as set forth in the daily

statistical release (or any successor release) published by the Federal Reserve

Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S.

Government Securities” or (ii) if such release (or any successor release)

is not published or does not contain such prices on such third Domestic

Business Day, (A) the average of the Reference Treasury Dealer Quotations

for such day of prepayment, after excluding the highest and lowest such

Reference Treasury Dealer Quotations, or (B) if the Administrative Agent

obtains fewer than four such Reference Treasury Dealer Quotations, the average

of all such Reference Treasury Dealer Quotations.

“Confidential Information

Memorandum” has the meaning set forth in Section 10.12(c).

“Consolidated Subsidiary”

means at any date any Subsidiary or other entity the accounts of which would be

consolidated with those of the Borrower, in its consolidated financial

statements if such statements were prepared as of such date.

“Debt” of any Person means at any date, without duplication, (i)

all obligations of such Person for borrowed money, (ii) all obligations of such

Person evidenced by bonds, debentures, notes or other similar instruments,

(iii) all obligations of such Person to pay the deferred purchase price of

property or services, except trade accounts payable arising in the ordinary

course of business, (iv) all obligations of such Person as lessee which are

capitalized in accordance with generally accepted accounting principles, (v)

all Debt secured by a Lien on any asset of such Person, whether or not such

Debt is otherwise an obligation of such Person, and (vi) all Debt of others

guaranteed by such Person.

“Default” means any

condition or event that constitutes an Event of Default or which with the

giving of notice or lapse of time or both would, unless cured or waived, become

an Event of Default.

3

 

“Documentation Agent”

means Deutsche Bank Trust Company Americas, in its capacity as Documentation

Agent for the Lenders hereunder, together with its successors in such capacity.

“Domestic Business Day”

means any day except a Saturday, Sunday or other day on which commercial banks

in New York City, New York are authorized by law to close.

 “Eligible Person” shall mean (i) a commercial bank

organized under the laws of the United States, or any state thereof; (ii) a

commercial bank organized under the laws of any other country that is a member

of the Organization for Economic Cooperation and Development (the “OECD”),

or a political subdivision of any such country; provided, however, that such bank is acting through a branch

or agency located in the country in which it is organized or another country

that is also a member of the OECD; (iii) an insurance company, mutual fund or

other entity which is regularly engaged in making, purchasing, holding or

otherwise investing in loans; or any other financial institution organized

under the laws of the United States, any state thereof, any other country that

is a member of the OECD or a political subdivision of any such country with

assets, or assets under management, in a dollar equivalent amount of at least

$100.0 million; (iv) any Lender or Lender Affiliate; (v) any other entity

(other than a natural person or a trust for the benefit of natural persons or

an entity formed by or for the benefit of one or more natural persons to make a

Loan) which is an institutional “accredited investor” (as defined in Regulation

D under the United States Securities Act of 1933, as amended) within the

meaning of Section 501(a)(1), (2) or (3) of said Regulation D which

extends credit or buys loans as one of its businesses or investing activities;

and (vi) any other entity consented to by the Sole Book-Runner (for so long as

syndication has not been successfully completed in its determination), the

Administrative Agent and, so long as no Default has occurred and is continuing,

the Borrower (such consent not to be unreasonably withheld or delayed).  With respect to any Lender that is a fund or

commingled investment vehicle that invests in loans, any other fund or commingled

investment vehicle that invests in loans and is managed or advised by the same

investment advisor of such Lender or by an Affiliate of such investment advisor

shall be treated as a single Eligible Person.

“Environmental Laws”

means any and all federal, state, local and foreign statutes, laws, judicial

decisions, regulations, ordinances, rules, judgments, orders, decrees, plans,

injunctions, permits, concessions, grants, franchises, licenses, agreements and

other governmental restrictions relating to the environment, the effect of the

environment on human health or to emissions, discharges or releases of

pollutants, contaminants, Hazardous Substances or wastes into the environment

including, without limitation, ambient air, surface water, ground water, or

land, or otherwise relating to the manufacture, processing, distribution, use,

treatment, storage, disposal, transport or handling of pollutants,

contaminants, Hazardous Substances or wastes or the clean-up or other

remediation thereof.

“Environmental Permits”

has the meaning set forth in Section 4.07.

“Equity Interests”

means (i) shares of capital stock, partnership interests, membership interests

in a limited liability company, beneficial interests in a trust or other equity

ownership interests in a Person or (ii) any warrants, options or other rights

to acquire such shares or interests.

4

 

“ERISA” means the

Employee Retirement Income Security Act of 1974, as amended, or any successor

statute.

“ERISA Group” means

the Borrower, any Subsidiary and all members of a controlled group of

corporations and all trades or businesses (whether or not incorporated) under

common control that together with the Borrower or any Subsidiary, are treated

as a single employer under Section 414 of the Internal Revenue Code.

“Euro-Dollar Business Day”

means any Domestic Business Day on which commercial lenders are open for

international business (including dealings in dollar deposits) in London.

“Euro-Dollar Lending

Office” means, as to each Lender, its office, branch or affiliate located

at its address set forth in its Administrative Questionnaire (or identified in

its Administrative Questionnaire as its Euro-Dollar Lending Office) or such

other office, branch or affiliate of such Lender as it may hereafter designate

as its Euro-Dollar Lending Office by notice to the Borrower and the

Administrative Agent.

“Euro-Dollar Loan”

means (i)  Tranche A Loans when bearing interest at a Euro-Dollar Rate

pursuant to the applicable Notice of Borrowing or Notice of Interest Rate Election

or (ii) an overdue amount that was a Euro-Dollar Loan before it became

overdue.

“Euro-Dollar Margin”

has the meaning set forth in Section 2.07.

“Euro-Dollar Rate”

means a rate of interest determined pursuant to Section 2.07 on the basis

of an Adjusted London InterBank Offered Rate.

“Euro-Dollar Reserve

Percentage” has the meaning set forth in Section 2.07.

“Event of Default”

has the meaning set forth in Section 6.01.

“Federal Funds Rate”

means, for any day, the rate per annum equal to the weighted average of the

rates on overnight Federal funds transactions with members of the Federal

Reserve System arranged by Federal funds brokers on such day, as published by

the Federal Reserve Bank of New York on the Domestic Business Day next

succeeding such day, provided

that (i) if such day is not a Domestic Business Day, the Federal Funds

Rate for such day shall be such rate on such transactions on the next preceding

Domestic Business Day as so published on the next succeeding Domestic Business

Day, and (ii) if no such rate is so published on such next succeeding

Domestic Business Day, the Federal Funds Rate for such day shall be the average

rate quoted to the Administrative Agent, on such day on such transactions as

determined by the Administrative Agent. 

If for any reason the Administrative Agent shall have determined (which

determination shall be conclusive absent manifest error) that it is unable to

ascertain the Federal Funds Rate, for any reason, including the inability or

failure of the Administrative Agent to obtain sufficient quotation in

accordance with the terms hereof, the Base Rate shall be determined without

regard to the Federal Funds Rate until the circumstances giving rise to such

inability no longer exist.

“Fixed Rate” has the

meaning set forth in Section 2.07(d).

5

 

“Fund” means any

Person (other than a natural person) that is (or will be) engaged in making,

purchasing, holding or otherwise investing in commercial loans and similar

extensions of credit in the ordinary course of its business.

“Governmental Authority”

means any government or political subdivision of the United States or any other

country or any agency, authority, board, bureau, central bank, commission,

department or instrumentality thereof or therein, including without limitation,

any court, tribunal, grand jury or arbitrator, in each case whether foreign or

domestic, or any entity exercising executive, legislative, judicial, regulatory

or administrative functions of or pertaining to such government or political

subdivision.

“Granting Lender” has

the meaning set forth ion Section 10.06(d).

“Hazardous Substances”

means any toxic, radioactive, caustic or otherwise hazardous substance,

including petroleum, its derivatives, by-products and other hydrocarbons, or

any substance having any constituent elements displaying any of the foregoing

characteristics.

“Indemnitee” has the

meaning set forth in Section 10.03(b).

“Initial Lenders” has

the meaning set forth in Section 10.05.

“Interest Period”

means, with respect to each Euro-Dollar Loan, a period commencing on the date

of borrowing specified in the applicable Notice of Borrowing or the date

specified in the applicable Notice of Interest Rate Election and ending one,

two, three or six months thereafter, as the Borrower may elect in the

applicable notice; provided that

(a)           any Interest Period which would

otherwise end on a day which is not a Euro-Dollar Business Day shall be

extended to the next succeeding Euro-Dollar Business Day unless such

Euro-Dollar Business Day falls in another calendar month, in which case such

Interest Period shall end on the next preceding Euro-Dollar Business Day;

(b)           any Interest Period which begins on

the last Euro-Dollar Business Day of a calendar month (or on a day for which

there is no numerically corresponding day in the calendar month at the end of

such Interest Period) shall, subject to clause (c) below, end on the last

Euro-Dollar Business Day of a calendar month; and

(c)           no Interest Period with respect to a

Loan may end after the Maturity Date applicable to such Loan.

“Internal Revenue Code”

means the Internal Revenue Code of 1986, as amended, or any successor statute.

“Lead Arrangers”

means Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith

Incorporated and Credit Suisse First Boston, acting through its Cayman Islands

Branch, as Joint Lead Arrangers hereunder.

“Lender” means each

lender listed on the signature pages hereof, each Assignee which becomes a

Lender pursuant to Section 10.06(c), and their respective successors.

6

 

“Lender Affiliate”

means, (a) with respect to any Lender, (i) an Affiliate of such Lender or (ii)

an entity (whether a corporation, partnership, trust or otherwise) that is

engaged in making, purchasing, holding or otherwise investing in bank loans and

similar extensions of credit in the ordinary course of its business and is

administered or managed by a Lender or an Affiliate of such Lender and (b) with

respect to any Lender that is a fund which invests in bank loans and similar

extensions of credit, any other fund that invests in bank loans and similar

extensions of credit and is managed by the same investment advisor as such

Lender or by an affiliate of such investment advisor.

“Lending Office”

means, as to each Lender, its office located at its address set forth in its

Administrative Questionnaire (or identified in its Administrative Questionnaire

as its Lending Office) or such other office as such Lender may hereafter

designate as its Lending Office by notice to the Administrative Agent.

“Lien” means, with

respect to any asset, any mortgage, lien, pledge, charge, security interest or

encumbrance of any kind, or any other type of preferential arrangement that has

the practical effect of creating a security interest, in respect of such asset.

For the purposes of this Agreement, the Borrower or any Subsidiary shall be

deemed to own subject to a Lien any asset that it has acquired or holds subject

to the interest of a vendor or lessor under any conditional sale agreement,

capital lease or other title retention agreement relating to such asset.

“Loans” means Tranche

A Loans or Tranche B Loans, or any combination thereof (as the context

requires).

“Loan Documents”

means this Agreement and the Notes, all as amended, amended and restated,

modified or supplemented from time to time.

“London InterBank Offered

Rate” has the meaning set forth in Section 2.07.

“Margin Stock” means

“margin stock” as such term is defined in Regulation U of the Board of

Governors of the Federal Reserve System, as in effect from time to time.

“Material Adverse Change”

means a material adverse change, or any condition or event that has resulted or

could reasonably be expected to result in a material adverse change, in the

business, operations, financial condition or results of operation of the

Borrower and its Subsidiaries, taken as a whole (it being understood that

(i) the restatement of the financial statements of the Company, the

Borrower or any of its Subsidiaries with respect to any fiscal period, or as of

any date, ended on or prior to March 31, 2003 and (ii) the facts or

events disclosed to the Lenders prior to the Closing Date as the facts or

events necessitating such restatement shall not, in and of themselves, constitute

a Material Adverse Change in the business, operations, financial condition or

results of operation of the Borrower and its Subsidiaries, taken as a whole).

“Material Contract”

means as to any Person any material mortgage, security agreement, pledge

agreement, indenture, credit agreement, securities purchase agreement, debt

instrument, contract, agreement or instrument to which such Person is a party

or by which it or any of its material property is bound or affected.

“Material Permits”

has the meaning set forth in Section 4.02.

7

 

“Maturity Date” means

the Tranche A Maturity Date or the Tranche B Maturity Date, as applicable.

“Multiemployer Plan”

means at any time an employee pension benefit plan within the meaning of

Section 4001(a) (3) of ERISA to which any member of the ERISA Group is then

making or accruing an obligation to make contributions or has within the

preceding five plan years made contributions, including for these purposes any

Person which ceased to be a member of the ERISA Group during such five year

period.

“Notes” means

promissory notes of the Borrower, substantially in the form of Exhibit B

hereto, evidencing the obligation of the Borrower to repay the Loans made to

it, and “Note” means any one of such promissory notes issued hereunder.

“Notice of Borrowing”

has the meaning set forth in Section 2.02.

“Notice of Interest Rate

Election” has the meaning set forth in Section 2.10.

“Other Taxes” has the

meaning set forth in Section 8.04(b).

“Parent” means, with

respect to any Lender, any Person controlling such Lender.

“Participant” has the

meaning set forth in Section 10.06(b).

“PBGC” means the

Pension Benefit Guaranty Corporation or any entity succeeding to any or all of

its functions under ERISA.

“Permitted Liens” has

the meaning set forth in Section 5.07.

“Person” means an

individual, a corporation, a partnership, an association, a trust or any other

entity or organization, including a government or political subdivision or an

agency or instrumentality thereof.

“Plan” means at any

time an employee pension benefit plan (other than a Multiemployer Plan) which

is covered by Title IV of ERISA or subject to the minimum funding standards

under Section 412 of the Internal Revenue Code and either (i) is

maintained, or contributed to, by any member of the ERISA Group for employees

of any member of the ERISA Group or (ii) has at any time within the preceding

five years been maintained, or contributed to, by any Person which was at such

time a member of the ERISA Group for employees of any Person which was at such

time a member of the ERISA Group.

“Primary Treasury Dealer”

means a primary U.S. Government Obligations dealer in The City of New York.

“Prime Rate” means

the rate of interest announced and generally applied by the Administrative

Agent from time to time as its prime rate.

“Qwest Entity” has

the meaning set forth in Section 7.02.

8

 

“Reference Treasury

Dealer” means each of Merrill Lynch, Pierce, Fenner & Smith

Incorporated, Credit Suisse First Boston and Deutsche Bank Securities Inc. and

their respective successors or any of their affiliates; provided, however,

that if any of the foregoing shall cease to be a Primary Treasury Dealer, the

Administrative Agent shall substitute therefor another Primary Treasury Dealer.

“Reference Treasury

Dealer Quotations” means, with respect to each Reference Treasury Dealer

and any date of prepayment, the average, as determined by the Administrative

Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed

in each case as a percentage of its principal amount) quoted in writing to the

Administrative Agent by such Reference Treasury Dealer at 5:00 p.m. on the

third Domestic Business Day preceding such date of prepayment.

“Register” has the

meaning set forth in Section 2.05.

“Required Class Lenders”

means at any time both (i) Lenders having more than 50% of Tranche A

Commitments or, if the Tranche A Commitments shall have been terminated,

holding more than 50% of the aggregate unpaid principal amount of the

Tranche A Loans, plus (ii) Lenders

having more than 50% of the Tranche B Commitments or, if the

Tranche B Commitments shall have been terminated, holding more than 50% of

the aggregate unpaid principal amount of the Tranche B Loans.

“Required Lenders”

means at any time Lenders having more than 50% of the aggregate amount of the

Commitments or, if the Commitments shall have been terminated, holding more

than 50% of the aggregate unpaid principal amount of the Loans.

“Requirement of Law”

means as to any Person, the Certificate of Incorporation and By-laws or other

organizational or governing documents of such Person, and any law, treaty, rule

or regulation or determination of an arbitrator or a court or other

Governmental Authority, in each case binding and enforceable upon such Person

in any material respect or any of its material property or to which such Person

in any material respect or any of its material property is subject.

“Restatement Date”

means the first date after the Closing Date on which the Borrower, files a

restatement of a Form 10-Q or Form 10-K with the Securities and Exchange

Commission.

“Significant Subsidiary”

means any Subsidiary of the Borrower that would meet the definition of

“significant subsidiary” contained as of the date hereof in Regulation S-X of

the Securities and Exchange Commission; provided

that Wireless shall not constitute a Significant Subsidiary.

“Sole Book-Runner”

means Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith

Incorporated as Book-Runner hereunder.

“SPC” has the meaning

set forth in Section 10.06(d).

9

 

“Subsidiary” means

any corporation or other entity of which securities or other ownership interests

having ordinary voting power to elect a majority of the board of directors or

other persons performing similar functions are at the time directly or

indirectly owned by the Borrower.

“Supplemental Information”

means the information set forth on Schedule 4.04(a) hereto.

“Syndication Agent”

means Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith

Incorporated, as Syndication Agent hereunder, together with its successors in

such capacity.

“Taxes” has the

meaning set forth in Section 8.04(a).

“Tranche A Commitment”

means, with respect to each Lender, the commitment, if any, of such Lender to

make a Tranche A Loan in the amount set forth opposite the name of such Lender

on Annex A hereto or in the applicable Assignment and Assumption

Agreement, as such commitment may be reduced or increased from time to time

pursuant to assignments by or to such Lender pursuant to Section 10.06.  The total of the Tranche A Commitments of

all Tranche A Lenders shall equal to $1,250,000,000.

“Tranche A Lender”

means a Lender with a Tranche A Commitment or an outstanding Tranche A Loan.

“Tranche A Loan”

means a Loan made pursuant to Section 2.01(i).

“Tranche A Maturity Date”

means June 30, 2007.

“Tranche B Commitment”

means, with respect to each Lender, the commitment, if any, of such Lender to

make a Tranche B Loan in the amount set forth opposite the name of such Lender

on Annex A hereto or in the applicable Assignment and Assumption

Agreement, as such commitment may be reduced or increased from time to time

pursuant to assignments by or to such Lender pursuant to Section 10.06.  The total of the Tranche B Commitments of

all Tranche B Lenders shall equal $500,000,000.

“Tranche B Lender”

means a Lender with a Tranche B Commitment or an outstanding Tranche B Loan.

“Tranche B Loan”

means a Loan made pursuant to Section 2.01(ii).

“Tranche B Maturity Date”

means June 30, 2010.

“Treasury Rate”

means, with respect to any date of prepayment, the rate per annum equal to the

quarterly equivalent yield to maturity of the Comparable Treasury Issue,

assuming a price for the Comparable Treasury Issue expressed as a percentage of

its principal amount) equal to the Comparable Treasury Price for such date or

prepayment.

10

 

“Type” when used in

respect of a Tranche A Loan or any Borrowing comprised of Tranche A Loans,

refers to whether such Loans are Base Rate Loans or Euro-Dollar Loans.

“United States” means

the United States of America, including the States and the District of

Columbia, but excluding its territories and possessions.

“Wireless” means

Qwest Wireless LLC, a Delaware limited liability company and its successors.

Section 1.02.             Accounting Terms and

Determinations.  Unless

otherwise specified herein, all accounting terms used herein shall be

interpreted, all accounting determinations hereunder shall be made, and all

financial statements required to be delivered hereunder shall be prepared in

accordance with generally accepted accounting principles as in effect from time

to time in the United States, applied on a basis consistent (except for changes

concurred in by the Borrower’s independent public accountants) with the most

recent audited consolidated financial statements of the Borrower and its

Consolidated Subsidiaries, delivered to the Lenders.

Section 1.03.             Types of Borrowings.  The term “Borrowing” denotes the aggregation

of Loans of one or more Lenders to be made to the Borrower pursuant to Article

2 on a single date, all of which Loans are of the same Class and Type (subject

to Article 8).  For purposes of this

Agreement, Loans may be classified and referred to by Class (e.g., a “Tranche A

Loan” or a “Tranche B Loan”) or by Type (e.g., “Euro-Dollar Loan” or “Base Rate

Loan”).  Borrowings also may be

classified and referred to by Class (e.g., “Tranche A Borrowing” or a “Tranche

B Borrowing”) or by Type (e.g., a “Euro-Dollar Borrowing” or a “Base Rate

Borrowing”).

ARTICLE 2

THE CREDITS

Section 2.01.             Commitments to Lend.  (i) Each Tranche A Lender severally agrees

to make on the Borrowing Date a Tranche A Loan to the Borrower in a principal

amount not exceeding the amount of its Tranche A Commitment, and (ii) each

Tranche B Lender severally agrees to make on the Borrowing Date a Tranche B

Loan to the Borrower in a principal amount not exceeding the amount of its

Tranche B Commitment.  The Loans are

available in a single draw on the Borrowing Date.  Any portion of the Commitments not utilized on the Borrowing Date

shall terminate.  None of the

Commitments is revolving in nature, and principal amounts of the Loans of

either Class repaid or prepaid may not be reborrowed.

Section 2.02.             Notice of Borrowing.  The Borrower shall give the Administrative

Agent notice, substantially in the form of Exhibit A (a “Notice

of Borrowing”), not later than 10:30 A.M. (New York City time) on (x) the

Borrowing Date in the event of a Base Rate Borrowing, and (y) the third

Euro-Dollar Business Day before the Borrowing Date, if any Euro-Dollar Loans

are to be made on the Borrowing Date, specifying

(i)      the date of such Borrowing, which shall be

a Domestic Business Day in the case of a Base Rate Borrowing or a Euro-Dollar

Business Day in the case of a Euro-Dollar Borrowing,

 

11

 

(ii)     the aggregate amount of the Borrowing of

each Class to be made on the Borrowing Date; provided

that the Borrower may not request a Borrowing of less than the total

Commitments hereunder without the Borrower, the Administrative Agent and the

Sole Book-Runner having agreed in writing as to how to allocate the Borrowing

among Classes,

(iii)    whether the Loans included in the Tranche A

Borrowing bear interest initially at the Base Rate or at a Euro-Dollar Rate,

(iv)    in the case of a Euro-Dollar Borrowing, the

duration of the initial Interest Period applicable thereto, subject to the

provisions of the definition of Interest Period, and

(v)     remittance instructions.

Section 2.03.             [Intentionally Deleted].

Section 2.04.             Notice to Lenders; Funding of

Loans.  (a)  Upon receipt of a Notice of Borrowing, the

Administrative Agent shall promptly notify each Lender of the contents thereof

and of such Lender’s share of such Borrowing and such Notice of Borrowing shall

not thereafter be revocable by the Borrower.

(b)           Not later than 1:00 P.M. (New

York City time) on the Borrowing Date, each Lender shall (except as provided in

subsection (c) of this Section) make available its share of such Borrowing, in

immediately available funds, to the Administrative Agent at its address

referred to in Section 10.01. Unless any applicable condition specified in

Article 3 has not been satisfied, as determined by the Initial Lenders in

accordance with Article 3, the Administrative Agent will make the funds so

received from the Lenders immediately available to the Borrower as specified in

the Notice of Borrowing.

(c)           Unless the Administrative Agent shall

have received notice from a Lender prior to the Borrowing Date that such Lender

will not make available to the Administrative Agent such Lender’s share of the

Borrowing of the relevant Class, the Administrative Agent may assume that such

Lender has made such share available to the Administrative Agent on the

Borrowing Date in accordance with subsection (b) of this Section 2.04 and the

Administrative Agent may, in reliance upon such assumption, make available to

the Borrower on such date a corresponding amount.  If and to the extent that such Lender shall not have so made such

share available to the Administrative Agent, such Lender and the Borrower

severally agree to repay to the Administrative Agent forthwith on demand such

corresponding amount together with interest thereon, for each day from the date

such amount is made available to the Borrower until the date such amount is

repaid to the Administrative Agent, at (i) in the case of the Borrower, a rate

per annum equal to the higher of the Federal Funds Rate and the interest rate

applicable thereto pursuant to Section 2.07 and (ii) in the case of such

Lender, the Federal Funds Rate for the first three Domestic Business Days and,

thereafter, at the Prime Rate.  If such

Lender shall repay to the Administrative Agent such corresponding amount, such

amount so repaid shall constitute such Lender’s Loan included in such Borrowing

for purposes of this Agreement.  If the

Borrower shall have repaid such corresponding amount of such Lender, such

Lender shall reimburse the 

12

 

Borrower for any loss on

account thereof incurred by the Borrower. 

Nothing contained in the foregoing shall be construed as relieving a

Lender of its obligation to fund a Loan when required under the terms of this

Agreement.

Section 2.05.             Notes.  (a) 

The Loans of each Lender may, at the request of such Lender to the

Borrower, be evidenced by a single Note payable to the order of such Lender for

the account of its Lending Office, unless such Lender indicates otherwise, in

an amount equal to the aggregate unpaid principal amount of such Lender’s

Loans.

(b)           Any Lender may, by notice to the

Borrower and the Administrative Agent, request that its Loans of a particular

Class or Type be evidenced by a separate Note in an amount equal to the

aggregate unpaid principal amount of such Loans. Each such Note shall be in

substantially the form of Exhibit B hereto with appropriate modifications

to reflect the fact that it evidences solely Loans of the relevant Class or

Type. Each reference in this Agreement to a “Note” or the “Notes”

of such Lender shall be deemed to refer to and include any or all of such

Notes, as the context may require.

(c)           Upon receipt of each Lender’s Notes

pursuant to Section 3.01, the Administrative Agent shall forward, on behalf of

the Borrower, such Notes to such Lender. Each Lender shall record the date,

amount, Class and Type of each Loan made by it and the date and amount of each

payment of principal made with respect thereto, and may, if such Lender so

elects in connection with any transfer or enforcement of its Note, endorse on

the schedule forming a part thereof appropriate notations to evidence the foregoing

information with respect to each such Loan then outstanding; provided that the failure of any Lender to

make any such recordation or endorsement, or any error in any such recordation

or endorsement, shall not affect the obligations of the Borrower hereunder or

under the Notes or any other Loan Document. Each Lender is hereby irrevocably

authorized by the Borrower so to endorse its Notes and to attach to and make a

part of any Note a continuation of any such schedule as and when required.

(d)           Loans made by each Lender and not

evidenced by a Note shall be evidenced by one or more accounts or records

maintained by such Lender and by the Administrative Agent in the ordinary

course of business. The accounts or records maintained by the Administrative

Agent and each Lender shall be conclusive absent manifest error of the amount

of the Loans made by the Lenders to the Borrower and the interest and payments

thereon. Any failure to so record or any error in doing so shall not, however,

limit or otherwise affect the obligation of the Borrower hereunder to pay any

amount owing with respect to the Loans.

(e)           The Borrower authorizes the

Administrative Agent, and the Administrative Agent agrees, to maintain, or

cause to be maintained at its offices, a copy of each Assignment and Assumption

Agreement delivered to and accepted by it and a register (the “Register”)

for the recordation of the names and addresses of the Lenders and the

Commitments of, and principal amount of the Loans owing to each Lender from

time to time.  The entries in the

Register shall be conclusive and binding for all purposes, absent manifest

error, and the Borrower, the Administrative Agent and the Lenders shall treat

each Person whose name is recorded in the Register as a Lender hereunder for

all purposes of this Agreement.  The

Register shall be available for inspection by the Borrower and the Lead

Arrangers at any reasonable time and from time to time upon reasonable prior

notice.  In any event, the

Administrative Agent shall provide a

13

 

copy of the Register to the

Lead Arrangers on a weekly basis.  Each

Lender shall maintain a register of its participants comparable to the

Register.  Failure to make any such recordation,

or any error in such recordation, shall not affect the obligations of the

Borrower under the Loan Documents.

(f)            With respect to any Loans hereunder,

whether or not evidenced by a Note, in the event of any conflict between the

accounts and records maintained by the Administrative Agent and the accounts

and records of any Lender in respect of such matters, the accounts and records

of the Administrative Agent shall control in the absence of manifest error.

Section 2.06.             Maturity of Loans.  Each Loan shall mature, and the principal

amount thereof shall be due and payable, together with accrued interest

thereon, on the Maturity Date applicable to such Loan.

Section 2.07.             Interest Rates.  (a) 

Each Base Rate Loan shall bear interest on the outstanding principal

amount thereof, for each day from the date such Loan is made until it becomes

due, at a rate per annum equal to the sum of the Base Rate Margin plus the Base

Rate for such day; provided that

in no event shall the interest rate on a Base Rate Loan be less than 6.50% per

annum.  Subject to Section 2.11(a),

such interest shall be payable quarterly in arrears on the last Domestic

Business Day of each calendar quarter and, with respect to the principal amount

of any Base Rate Loan converted to a Euro-Dollar Loan, on each date a Base Rate

Loan is so converted. Any overdue principal of or interest on any Base Rate

Loan shall bear interest, payable on demand, for each day until paid at a rate

per annum equal to the sum of 2% plus the rate otherwise applicable to Base

Rate Loans for such day.

“Base Rate Margin”

means a rate per annum equal to 3.75 %.

(b)           Each Euro-Dollar Loan shall bear

interest on the outstanding principal amount thereof, for the Interest Period

applicable thereto, at a rate per annum equal to the sum of the Euro-Dollar

Margin plus the applicable Adjusted London InterBank Offered Rate; provided that in no event shall the

interest rate on a Euro-Dollar Loan be less than 6.50% per annum. Such interest

shall be payable for each Interest Period on the last day thereof and, if such

Interest Period is longer than three months, at intervals of three months after

the first day thereof.

The “Adjusted London

InterBank Offered Rate” applicable to any Interest Period means a rate per

annum equal to the quotient obtained by dividing (i) the applicable London

InterBank Offered Rate by (ii) 1.00 minus the Euro-Dollar Reserve

Percentage.

“Euro-Dollar Margin”

means a rate per annum equal to 4.75 %.

The

“London InterBank Offered Rate” applicable to any Interest Period means

(i)      the rate per annum equal to the rate

determined by the Administrative Agent by reference to the British Bankers

Association Interest Settlement Rate for deposits in dollars as of

approximately 11:00 A.M. (London time) two Euro-Dollar Business Days prior to

the first day of such Interest Period by reference to the British Bankers

Association Interest Settlement Rate for deposits in dollars (as set forth by

the Bloomberg Information Service or any successor thereto or any other service

selected by the Administrative 

14

 

Agent which has been

nominated by the British Bankers Association as an authorized information

vendor for the purpose of displaying such rates) for a period equivalent to

such Interest Period, or

(ii)     if the rate referenced in the preceding

clause (i) is not available, the rate per annum determined by the

Administrative Agent as the average of the rates of interest at which deposits

in dollars for delivery on the first day of such Interest Period in same day

funds in the approximate amount of the Euro-Dollar Loan being made, continued

or converted by the Administrative Agent, and with a term equivalent to such

Interest Period, would be offered by the Administrative Agent’s London Branch

to major banks in the London InterBank euro-dollar market at their request at

approximately 11:00 A.M. (London time) two Euro-Dollar Business Days prior to

the first day of such Interest Period.

“Euro-Dollar Reserve

Percentage” means for any day that percentage (expressed as a decimal) which

is in effect on such day, as prescribed by the Board of Governors of the

Federal Reserve System (or any successor) for determining the maximum reserve

requirement for a member bank of the Federal Reserve System in New York City

with deposits exceeding one billion dollars in respect of “Eurocurrency

liabilities” (or in respect of any other category of liabilities which includes

deposits by reference to which the interest rate on Euro-Dollar Loans is

determined or any category of extensions of credit or other assets which

includes loans by a non-United States office of any Lender (including any

branch, Affiliate or other fronting office making or holding a Loan) to United

States residents). The Adjusted London InterBank Offered Rate shall be adjusted

automatically on and as of the effective date of any change in the Euro-Dollar

Reserve Percentage.

(c)           Any overdue principal of or interest

on any Euro-Dollar Loan shall bear interest, payable on demand, for each day

from and including the date payment thereof was due to but excluding the date

of actual payment, at a rate per annum equal to the sum of 2% plus the higher

of (i) the Euro-Dollar Margin plus the quotient obtained by dividing (x) the

rate per annum at which one day (or, if such amount due remains unpaid more

than three Euro-Dollar Business Days, then for such other period of time not

longer than six months as the Administrative Agent may select) deposits in

dollars in an amount approximately equal to such overdue payment due to the

Administrative Agent are offered to the Administrative Agent, in the London

InterBank market for the applicable period determined as provided above by (y)

1.00 minus the Euro-Dollar Reserve Percentage (or, if the circumstances

described in clause (a) or (b) of Section 8.01 shall exist, at a rate per annum

equal to the sum of 2% plus the rate applicable to Base Rate Loans for such

day) and (ii) the sum of the Euro-Dollar Margin plus the Adjusted London

InterBank Offered Rate applicable to such Loan at the date such payment was

due.

(d)           Each Tranche B Loan shall bear

interest on the outstanding principal amount thereof, for each day from the

date such Loan is made until it becomes due, at a rate per annum equal to the

Fixed Rate.  Such interest shall be

payable quarterly in arrears on the last Domestic Business Day of each calendar

quarter.  Any overdue principal of or

interest on any Tranche B Loan shall bear interest payable on demand, for each

day until paid at a rate per annum equal to the sum of 2% plus the Fixed Rate.

15

 

“Fixed Rate” means a

rate per annum equal to 6.95 %.

(e)           The Administrative Agent shall

determine each interest rate applicable to the Tranche A Loans hereunder.  The Administrative Agent shall give prompt notice

to the Borrower and the Tranche A Lenders of each rate of interest so

determined, and its denomination thereof shall be conclusive in the absence of

manifest error.

Section 2.08.             [Intentionally Deleted].

Section 2.09.             Termination of Commitments.  The Commitments shall automatically

terminate on the earlier of (i) close of business (New York City time) on June

30, 2003 or (ii) the Borrowing Date, immediately after the Loans are made.

Section 2.10.             Method of Electing Interest

Rates with Respect to Tranche A Loans.  (a)  The Loans included in

the Tranche A Borrowing shall bear interest initially at the Type of rate

specified by the Borrower in the Notice of Borrowing.  Thereafter, the Borrower may from time to time elect to change or

continue the Type of interest rate borne by the Tranche A Loans as a whole

(subject in each case to the provisions of Article 8), as follows:

(i)      if the Tranche A Loans are Base Rate

Loans, the Borrower may elect to convert the Tranche A Loans to Euro-Dollar

Loans as of any Euro-Dollar Business Day; and

(ii)     if the Tranche A Loans are Euro-Dollar

Loans, the Borrower may elect to convert the Tranche A Loans to Base Rate Loans

or elect to continue the Tranche A Loans as Euro-Dollar Loans for an additional

Interest Period, in each case effective on the last day of the then current

Interest Period applicable to the Tranche A Loans.

Each such election shall be

made by delivering a notice, substantially in the form of Exhibit C

hereto (a “Notice of Interest Rate Election”) to the Administrative

Agent at least three Euro-Dollar Business Days before the conversion or

continuation selected in such notice is to be effective. A Notice of Interest

Rate Election shall apply to the entirety of the Tranche A Loans as a Class.

(b)           Each Notice of Interest Rate Election

shall specify

(i)      the date on which the conversion or

continuation selected in such notice is to be effective, which shall comply

with the applicable clause of subsection (a) above;

(ii)     if the Loans are to be converted, the new

Type of Loans and, if such new Loans are Euro-Dollar Loans, the duration of the

initial Interest Period applicable thereto; and

(iii)    if such Loans are to be continued as

Euro-Dollar Loans for an additional Interest Period, the duration of such

additional Interest Period.

Each Interest Period

specified in a Notice of Interest Rate Election shall comply with the

provisions of the definition of Interest Period.

16

 

(c)           Upon receipt of a Notice of Interest

Rate Election from the Borrower pursuant to subsection (a) above, the

Administrative Agent shall promptly notify each Tranche A Lender of the

contents thereof and such notice shall not thereafter be revocable by the

Borrower. If the Borrower fails to deliver a timely Notice of Interest Rate

Election to the Administrative Agent for any Euro-Dollar Loans, such Loans

shall be converted into Base Rate Loans on the last day of the then current

Interest Period applicable thereto.

Section 2.11.             Prepayments.  (a) 

Subject in the case of any Euro-Dollar Loans to Section 2.13 and to

Section 2.11(b), the Borrower may at any time after the second anniversary

of the Closing Date and (i) upon at least one Domestic Business Day’s

notice to the Administrative Agent, prepay any Base Rate Loans or

(ii) upon three Euro-Dollar Business Days’ notice to the Administrative

Agent, prepay any Euro-Dollar Loans, in each case in whole at any time, or from

time to time in part in amounts aggregating $25,000,000 or any larger multiple

of $5,000,000 by paying the principal amount to be prepaid together with

accrued interest thereon to the date of prepayment.  Subject to Section 2.11(c), the Borrower may, at any time

upon at least three Domestic Business Days’ notice to the Administrative Agent,

prepay Tranche B Loans.  All

prepayments within a Class of Loans shall be made on a pro rata basis.

(b)           If the Borrower elects prepayment of

Tranche A Loans pursuant to this Section 2.11, then the Borrower shall pay to

the Tranche A Lenders that hold Tranche A Loans, a prepayment premium equal to

(i) if such prepayment occurs on or prior to December 31, 2005, 3% of the

principal amount of such Tranche A Loans being so prepaid or repaid or (ii) if

such prepayment occurs on or after January 1, 2006 and on or prior to June 30,

2006, 2% of the principal amount of such Tranche A Loans being so prepaid or

repaid or (iii) if such prepayment occurs on or after July 1, 2006 and on

or prior to December 31, 2006, 1.5% of the principal amount of such Tranche A

Loans being so prepaid or repaid.

(c)           If the Borrower elects prepayment of

any Tranche B Loan pursuant to this Section 2.11, the Borrower shall pay

to the Tranche B Lenders that hold Tranche B Loans, a prepayment

premium equal to the present value, as determined by the Administrative Agent,

of all required interest payments due on such Tranche B Loans through

June 30, 2010 (excluding accrued interest), discounted to the date of

prepayment on a quarterly basis (assuming a 360-day year and actual days elapsed)

at the Treasury Rate.

(d)           Upon receipt of a notice of

prepayment pursuant to this Section, the Administrative Agent shall promptly

notify each Lender of the contents thereof and of such Lender’s ratable share

of such prepayment and such notice shall not thereafter be revocable by the

Borrower.

Section 2.12.             General Provisions as to

Payments.  (a)  The Borrower shall make each payment of

principal of, and interest on, the Loans and of fees and other amounts payable

hereunder, not later than 12:00 Noon (New York City time) on the date when due,

in immediately available funds in New York City, without off set or

counterclaim, to the Administrative Agent at its address referred to in

Section 10.01.  The Administrative

Agent will promptly distribute to each Lender its ratable share of each such

payment received by the Administrative Agent for the account of the Lenders.

Whenever any payment of principal of, or interest on, the Base Rate Loans,

Tranche B Loans, or of fees or other amounts payable hereunder shall be due

17

 

on a day which is not a

Domestic Business Day, the date for payment thereof shall be extended to the

next succeeding Domestic Business Day. 

Whenever any payment of principal of, or interest on, the Euro-Dollar

Loans shall be due on a day which is not a Euro-Dollar Business Day, the date

for payment thereof shall be extended to the next succeeding Euro-Dollar

Business Day unless such Euro-Dollar Business Day falls in another calendar

month, in which case the date for payment thereof shall be the next preceding

Euro-Dollar Business Day.

(b)           Unless the Administrative Agent shall

have received notice from the Borrower prior to the date on which any payment

is due from the Borrower to the Lenders hereunder that the Borrower will not

make such payment in full, the Administrative Agent may assume that the

Borrower has made such payment in full to the Administrative Agent on such date

and the Administrative Agent may, in reliance upon such assumption, cause to be

distributed to each Lender on such due date an amount equal to the amount then

due such Lender.  If and to the extent

that the Borrower shall not have so made such payment, each Lender shall repay

to the Administrative Agent forthwith on demand such amount distributed to such

Lender together with interest thereon, for each day from the date such amount

is distributed to such Lender until the date such Lender repays such amount to

the Administrative Agent, at the Federal Funds Rate.

Section 2.13.             Funding Losses.  If the Borrower makes any payment of

principal with respect to any Euro-Dollar Loan or any Euro-Dollar Loan is

converted to a Base Rate Loan (pursuant to Article 2, 6 or 8 or otherwise)

on any day other than the last day of an Interest Period applicable thereto, or

the last day of an applicable period fixed pursuant to Section 2.07(b), or

if the Borrower fails to borrow, convert, continue or prepay any Euro-Dollar

Loans after notice has been given to any Lender in accordance with

Sections 3 or 2.11(a) the Borrower shall reimburse each Lender within 15

days after written demand for any resulting loss or expense incurred by it (or

by an existing or prospective Participant in the related Loan), including

(without limitation) any loss incurred in obtaining, liquidating or employing

deposits from third parties, but excluding loss of margin for the period after

any such payment or conversion or failure to borrow or prepay, provided that such Lender shall have

delivered to the Borrower a certificate as to the amount of such loss or

expense, which certificate shall be conclusive in the absence of manifest

error. Any Lender requesting compensation pursuant to this Section 2.13 shall

notify the Borrower of such request on or before the date that is three

Euro-Dollar Business Days after the event giving rise to such request.

Section 2.14.             Computation of Interest and Fees.  Interest on the Tranche A Loans based on the

Base Rate hereunder shall be computed on the basis of a year of 365 days (or

366 days in a leap year) and paid for the actual number of days elapsed

(including the first day but excluding the last day).  Interest on the Tranche A Loans which are Euro-Dollar Loans and

interest on the Tranche B Loans shall be computed on the basis of a year of 360

days and paid for the actual number of days elapsed (including the first day

but excluding the last day).

18

 

ARTICLE 3

CONDITIONS

Section 3.01.             Closing.  The closing hereunder shall occur upon

receipt by the Administrative Agent (or its counsel) of the following (in the

case of any document, dated the Closing Date unless otherwise indicated):

(a)           duly executed counterparts hereof

signed by each of the Borrower, the Lenders and the Agents (or, in the case of

any party as to which an executed counterpart shall not have been received,

written evidence satisfactory to the Administrative Agent (which may include

telecopy transmission of a signed signature page) that such party has signed a

counterpart hereof);

(b)           a duly executed Note for the account

of each Lender requesting a Note dated on or before the Closing Date complying

with the provisions of Section 2.05;

(c)           opinions of O’Melveny & Myers

LLP, special counsel to the Borrower, Richard Baer, general counsel of the Borrower,

and Hogan & Hartson LLP, regulatory counsel to the Borrower, covering the

matters set forth in Exhibit D-1, D-2 and D-3 hereto,

respectively;

(d)           certified copies of the charter and

by-laws (or equivalent documents) of the Borrower, a long-form certificate of

good standing for the Borrower from the office of the Secretary of State of the

State of Colorado and certified copies of all corporate authority for the

Borrower (including, without limitation, board of director resolutions and

evidence of the incumbency, including specimen signatures, of officers) with

respect to the execution, delivery and performance of this Agreement and the

Notes (and the Administrative Agent and each Lender may conclusively rely on

such certificate until it receives notice in writing from the Borrower to the

contrary); and

(e)           evidence satisfactory to the

Administrative Agent of the payment of all fees and other amounts payable to

the Administrative Agent by the Borrower for the account of the Lenders or the

Administrative Agent on or prior to the Closing Date.

Section 3.02.             The Borrowing Date.  The obligation of any Lender to make a Loan

on the Borrowing Date is subject to the satisfaction of the following

conditions:

(a)           the fact that the Closing Date shall

have occurred on or prior to June 30, 2003;

(b)           the fact that the Borrowing Date

shall occur on or prior to June 30, 2003 and on or after the Closing Date;

(c)           receipt by the Administrative Agent

of a Notice of Borrowing as required by Section 2.02;

19

 

(d)           the fact that, immediately before and

after such Borrowing, no Default or Event of Default shall have occurred and be

continuing;

(e)           the fact that the representations and

warranties of the Borrower contained in the Loan Documents shall be true (or,

with respect to any representation and warranty which is not qualified by

materiality or Material Adverse Change, shall be true in all material respects)

on and as of the Borrowing Date, except to the extent such representations and

warranties specifically relate to an earlier date, in which case such

representations and warranties shall have been true (or, with respect to any

such representation and warranty which is not qualified by materiality or

Material Adverse Change, shall be true in all material respects) on and as of

such earlier date;

(f)            the fact there shall not have been a

Material Adverse Change since March 31, 2002, except as set forth in the

Supplemental Information; and

(g)           receipt by the Administrative Agent

of an officer’s certificate certifying as to clauses (d) through (f) of this

Section.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

The

Borrower represents and warrants that:

Section 4.01.             Corporate Existence and Power.  The Borrower is a corporation duly incorporated,

validly existing and in good standing under the laws of the state of its

incorporation, and has all corporate powers and all material governmental

licenses, authorizations, qualifications, consents and approvals required to

carry on its business as now conducted, except as would not result in a

Material Adverse Change.

Section 4.02.             Corporate and Governmental

Authorization; No Contravention.  (a)  The execution,

delivery and performance by the Borrower of each Loan Document to which it is a

party are within the Borrower’s corporate powers, have been duly authorized by

all necessary corporate action, require no action by or in respect of, or

filing with, any governmental body, agency or official,  and do not contravene, or constitute a

default under, any provision of applicable law or regulation or of the

certificate of incorporation or by-laws of such Person or of any Material

Contract, judgment, injunction, order, decree or other instrument binding upon

the Borrower or any of its Subsidiaries or such Person or any Significant

Subsidiary or result in the creation or imposition of any Lien on any material

asset of the Borrower or any of its Subsidiaries or such Person or any

Significant Subsidiary.

(b)           Neither the Borrower nor any

Significant Subsidiary is (i) in violation of its certificate of

incorporation or bylaws (or similar organizational documents), (ii) except

as set forth in the Supplemental Information, in violation of any Requirement

of Law, except, in each case, for such violations which would not, individually

or in the aggregate, result in a Material Adverse Change, or (iii) in

default in the performance or observance of any Material Contract or material

licenses, permits, franchises or other governmental authorizations or consents

and approvals necessary for the conduct of the business of the Borrower and its

Subsidiaries, taken as a

20

 

whole (“Material Permits”),

except in each case for such defaults which would not, individually or in the

aggregate, result in a Material Adverse Change.  All of the Material Permits are valid and in full force and

effect, except where failure to be in full force and effect would not,

individually or in the aggregate, result in a Material Adverse Change.  Except as set forth in the Supplemental

Information, none of the Borrower or any of its Subsidiaries has received any

notice of any material proceeding relating to the revocation or modification of

any such Material Permit, except where such revocation or modification would

not, individually or in the aggregate, result in a Material Adverse Change.

(c)           Any necessary governmental and third

party approvals or consents to the transactions contemplated hereby have been

obtained and are in effect (without the imposition of any materially burdensome

condition or qualification in the reasonable judgment of the Lead Arrangers and

Administrative Agent) and there is no governmental or judicial action, actual

or threatened, that has or could have a reasonable likelihood of restraining,

preventing or imposing materially burdensome or materially adverse conditions

on any of the transactions contemplated hereby.

Section 4.03.             Binding Effect.  Each Loan Document (other than the Notes)

constitutes a valid and binding agreement of the Borrower, and the Notes, when

executed and delivered in accordance with this Agreement, will constitute valid

and binding obligations of the Borrower, in each case enforceable in accordance

with its terms except as the same may be limited by bankruptcy, insolvency or

similar laws affecting creditors’ rights generally and by general principles of

equity.

Section 4.04.             Financial Information.  (a) 

There has been no Material Adverse Change with respect to the Borrower

and the Consolidated Subsidiaries, considered as a whole, since March 31, 2002,

except as set forth in the Supplemental Information.

(b)           The debt capitalization of the

Borrower and the Consolidated Subsidiaries described in the Supplemental

Information is true and correct in all material respects as of its date.

(c)           Except, in each case, (i) as set

forth in the Supplemental Information, (ii) such adjustments made in

connection with the restatements and re-audits described in the Supplemental

Information, and (iii) for changes resulting from audit and year-end

adjustments and the lack of footnotes that ordinarily accompany such

information, the consolidated statement of information for the quarters ended

March 31, 2002 and March 31, 2003, as set forth in the Supplemental

Information, fairly present, in all material respects, the results of

operations and cash flows of the Borrower and its Consolidated Subsidiaries for

such periods.

Section 4.05.             Litigation.  Except as disclosed in the Supplemental

Information and as specifically identified in Schedule 4.05, there

is no action, suit or proceeding pending, or to the knowledge of the Borrower

threatened, against the Borrower or any of its Subsidiaries before any court or

arbitrator or any governmental body, agency or official which would result in a

Material Adverse Change.

21

 

Section 4.06.             Compliance with ERISA.  Each member of the ERISA Group has fulfilled

its obligations under the minimum funding standards of ERISA and the Internal

Revenue Code with respect to each Plan and is in compliance in all respects

with the presently applicable provisions of ERISA and the Internal Revenue Code

with respect to each Plan, except where failure to comply would not have a

material adverse effect on the consolidated financial position or consolidated

results of operations of the Borrower and its Consolidated Subsidiaries,

considered as a whole.  No member of the

ERISA Group has (i) sought a waiver of the minimum funding standard under

Section 412 of the Internal Revenue Code in respect of any Plan,

(ii) failed to make any contribution or payment to any Plan or

Multiemployer Plan or in respect of any Benefit Arrangement, or made any

amendment to any Plan or Benefit Arrangement, in either case which has resulted

or could reasonably be expected to result in the imposition of a Lien or the

posting of a bond or other security under ERISA or the Internal Revenue Code or

(iii) incurred any liability under Title IV of ERISA other than a

liability to the PBGC for premiums under Section 4007 of ERISA.

Section 4.07.             Environmental Matters.  (a) 

The operations of the Borrower and each of its Subsidiaries comply in

all respects with all Environmental Laws, except such non-compliance which

would not result in a Material Adverse Change.

(b)           Except as specifically identified in Schedule

4.07, the Borrower and each of its Subsidiaries have obtained all material

licenses, permits, authorizations and registrations required under any

Environmental Laws (“Environmental Permits”) necessary for their

respective operations, and all such Environmental Permits are in good standing,

and the Borrower and each of its Subsidiaries is in compliance with all

material terms and conditions of such Environmental Permits.

(c)           Except as specifically identified in Schedule

4.07, there are neither any conditions or circumstances known to the

Borrower which may give rise to any claims or liabilities respecting any

Environmental Laws or Hazardous Substances arising from the operations of the

Borrower or its Subsidiaries (including, without limitation, off-site

liabilities), nor any additional costs of compliance with Environmental Laws,

which collectively have an aggregate potential liability in excess of

$50,000,000.

Section 4.08.             Taxes.  United States Federal income tax returns of

the Borrower and its Subsidiaries have been examined and closed through the

fiscal year ended December 31, 1992. The Borrower and its Subsidiaries have

filed all United States Federal income tax returns and all other material tax

returns which are required to be filed by them and have paid all taxes due

pursuant to such returns or pursuant to any assessment received by the Borrower

or any Subsidiary, except for taxes the amount, applicability or validity of

which is being contested in good faith by appropriate proceedings.  The charges, accruals and reserves on the

books of the Borrower and its Subsidiaries in respect of taxes or other

governmental charges are, in the opinion of the Borrower, adequate.

Section 4.09.             Subsidiaries.  Each of the Borrowers’ Significant

Subsidiaries is a corporation duly incorporated, validly existing and in good

standing under the laws of its jurisdiction of incorporation, and has all

corporate powers and all material governmental licenses,

 

22

 

authorizations,

qualifications, consents and approvals required to carry on its business as now

conducted.

Section 4.10.             Not an Investment Company.  The Borrower is not an “investment company”

within the meaning of the Investment Company Act of 1940, as amended.

Section 4.11.             Full Disclosure.  All written information, including the

Supplemental Information, heretofore furnished by the Borrower to the Agents

(or any of their affiliates) for distribution to Lenders regarding Borrower and

its Subsidiaries for purposes of or in connection with the Loan Documents or

any transaction contemplated hereby is, and all such information hereafter

furnished by the Borrower to the Agents for distribution to Lenders regarding

the Borrower and its Subsidiaries taken as a whole will be, true and accurate

in all material respects on the date as of which such information is stated or

certified, in each case in light of the circumstances in which the same were

made and, in the case of any financial information, is subject to changes

resulting from audit and year-end adjustments and the absence of footnotes and

includes information from periods that are under review for restatement and

re-audit, all as described in the Supplemental Information.

ARTICLE 5

COVENANTS

The Borrower agrees that, so

long as any Lender has any Commitment hereunder or any Loan or any other amount

payable under any Loan Document remains unpaid:

Section 5.01.             Information.  The Borrower will deliver to the

Administrative Agent for distribution to each of the Lenders

(a)           as soon as available and in any event

within 90 days after the end of each fiscal year of the Borrower, commencing

with the fiscal year ending December 31, 2003, an audited consolidated

balance sheet of the Borrower and its Consolidated Subsidiaries as of the end

of such fiscal year and the related audited consolidated statements of income

and cash flows for such fiscal year, setting forth in each case in comparative

form the figures for the previous fiscal year, all reported on in a manner

acceptable to the Securities and Exchange Commission by KPMG or other

independent public accountants of nationally recognized standing; provided that (1) with respect to any

set of financial statements required of the Borrower to be delivered pursuant

to this subsection (a) prior to the Restatement Date, the Borrower shall

only be required to deliver copies of the financial information concerning the

Borrower and its Consolidated Subsidiaries when and if delivered to the lenders

under the ARCA, provided that no

Lender shall be entitled to receive material non-public information unless it

has notified the Administrative Agent in writing of its willingness to do so

and (2) following the Restatement Date, the distribution of such information

shall not be required if available on the EDGAR system of the Securities and

Exchange Commission;

(b)           as soon as available and in any event

within 50 days after the end of each of the first three quarters of each fiscal

year of the Borrower (beginning with the fiscal

23

 

quarter

ended June 30, 2003 if the Restatement Date has occurred by such date), a

consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as

of the end of such quarter and the related consolidated statements of income

and cash flows for such quarter and for the portion of the Borrower’s fiscal

year ended at the end of such quarter, setting forth in the case of such

statements of income and cash flows in comparative form the figures for the

corresponding quarter and the corresponding portion of the Borrower’s previous

fiscal year, all certified (subject to year-end adjustments) as to fairness of

presentation, generally accepted accounting principles and consistency by the

chief financial officer or the chief accounting officer of the Borrower; provided that (1) with respect to any

set of financial statements required of the Borrower to be delivered pursuant

to this subsection (b) prior to the Restatement Date (provided that the Borrower shall only be

required to deliver the following information on or after September 30,

2003 if the Restatement Date has not occurred by such date), the Borrower shall

be required to deliver copies of the financial information concerning the

Borrower and its Consolidated Subsidiaries when and if delivered to the lenders

under the ARCA, provided that no

Lender shall be entitled to receive material non-public information unless it

has notified the Administrative Agent in writing of its willingness to do so

and (2) following the Restatement Date, the distribution of such

information shall not be required if available on the EDGAR system of the

Securities and Exchange Commission;

(c)           no later than 90 days after the end

of each fiscal year of the Borrower, a certificate of the chief financial

officer (or such officer’s designee, designated in writing by such officer) or

the chief accounting officer of the Borrower stating whether any Default exists

on the date of such certificate and, if any Default then exists, setting forth

the details thereof and the action which the Borrower is taking or proposes to

take with respect thereto;

(d)           within five Domestic Business Days

after any treasurer or assistant treasurer of the Borrower obtains knowledge of

any Default, if such Default is then continuing, a certificate of the chief

financial officer or the chief accounting officer of the Borrower setting forth

the details thereof and the action which the Borrower is taking or proposes to

take with respect thereto;

(e)           to the extent not available on the

EDGAR system of the Securities and Exchange Commission, promptly upon the

mailing thereof to the security holders of the Company generally, copies of all

financial statements, reports and proxy statements so mailed;

(f)            to the extent not available on the

EDGAR system of the Securities and Exchange Commission, promptly upon the

filing thereof, copies of all reports on Forms 10–K, 10–Q and

8–K (or their equivalents) (other than any amendment on Form 8–K

the sole purpose of which is to report matters subject in their entirety to a

press release) which the Borrower shall have filed with the Securities and

Exchange Commission;

(g)           if and when any member of the ERISA

Group (i) gives or is required to give notice to the PBGC of any

“reportable event” (as defined in Section 4043 of ERISA)

24

 

with

respect to any Plan which might constitute grounds for a termination of such

Plan under Title IV of ERISA, or knows that the plan administrator of any

Plan has given or is required to give notice of any such reportable event, a

copy of the notice of such reportable event given or required to be given to

the PBGC; (ii) receives notice of complete or partial withdrawal liability

under Title IV of ERISA or notice that any Multiemployer Plan is in

reorganization, is insolvent or has been terminated, a copy of such notice;

(iii) receives notice from the PBGC under Title IV of ERISA of an intent

to terminate, impose liability (other than for premiums under Section 4007 of

ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of

such notice; (iv) applies for a waiver of the minimum funding standard under

Section 412 of the Internal Revenue Code, a copy of such application; (v)

gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a

copy of such notice and other information filed with the PBGC; (vi) gives

notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a

copy of such notice; or (vii) fails to make any payment or contribution to

any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or

makes any amendment to any Plan or Benefit Arrangement, in either case which

has resulted or could reasonably be expected to result in the imposition of a

Lien or the posting of a bond or other security, a certificate of the chief

financial officer or the chief accounting officer of the Borrower setting forth

details as to such occurrence and action, if any, which the Borrower or applicable

member of the ERISA Group is required or proposes to take; and

(h)           as soon as available, the restated

consolidated financial statements of the Borrower, for any date, or any period,

ended prior to the Closing Date, such statements to be audited by KPMG (but

only if they relate to a period with respect to which audited financial

statements have been previously issued) and to be reported on by KPMG in a

manner acceptable to the Securities and Exchange Commission.

Information required to be

delivered pursuant to clauses 5.01(a), (b), (e) or (f) above shall be deemed to

have been delivered on the date on which the Borrower provides notice to the

Lenders that such information has been posted on the Company’s website on the

Internet at the website address listed on the signature pages hereof, at

sec.gov/edaux/searches.htm or at another website identified in such notice and

accessible by the Lenders without charge.

Section 5.02.             Maintenance of Property;

Insurance.  (a)  The Borrower will keep, and will case each

of its Significant Subsidiaries to keep, all property useful and necessary in

its business in good working order and condition, ordinary wear and tear

excepted.

(b)           The Borrower will maintain, and will

cause each of its Significant Subsidiaries to maintain (either in the name of

the Borrower or in such Significant Subsidiary’s own name), with financially

sound and responsible insurance companies, insurance on all their respective

properties in at least such amounts and against at least such risks (and with

such risk retention) as are usually insured against in the same general area by

companies of established repute engaged in the same or a similar business; provided that in lieu of any such

insurance, the Borrower and any of its Significant Subsidiaries may maintain

with its Affiliates a system or systems of self-insurance and reinsurance which

will accord with sound practices of similarly situated corporations maintaining

such systems and with respect to which the Borrower or such Significant Subsidiary

(or such Affiliate) will maintain adequate insurance reserves, all in

25

 

accordance with generally

accepted accounting principles and in accordance with sound insurance

principles and practice.

Section 5.03.             Maintenance of Existence.  The Borrower will, and will cause each of

its Significant Subsidiaries to, preserve, renew and keep in full force and

effect their respective corporate existence and their respective material

rights, privileges, franchises and licenses necessary or desirable in the

normal conduct of business; provided

that the failure of the Borrower or its Affiliates to remain current with

filings with the United States Securities and Exchange Commission and similar

information disclosures, and any administrative and procedural actions or

consequences as result thereof (including delisting of securities of the

Borrower or any of its Affiliates from trading exchanges, in each case

resulting from the restatement or re-audit of financial information as

described in the Supplemental Information, shall not constitute a breach or

violation hereunder).

Section 5.04.             Compliance with Laws.  The Borrower will comply, and will cause

each of its Significant Subsidiaries to comply, in all material respects with

all Requirements of Law, except where the necessity of compliance therewith is

contested in good faith by appropriate proceedings and for which adequate

reserves or other provision in conformity with generally accepted accounting

principles have been established; provided

that the failure of the Borrower or its Affiliates to remain current with

filings with the United States Securities and Exchange Commission and similar

information disclosures, and any administrative and procedural actions or

consequences as result thereof (including delisting of securities of the

Borrower or any of its Affiliates from trading exchanges, in each case

resulting from the restatement or re-audit of financial information as

described in the Supplemental Information, shall not constitute a breach or

violation hereunder).

Section 5.05.             Books and Records.  The Borrower will keep, and will cause each

of its Significant Subsidiaries to keep, proper books of record and account in

which full, true and correct entries shall be made of all dealings and

transactions in relation to its business and activities.  After the Restatement Date, the Borrower

will make itself available for a conference call after each fiscal quarter to

discuss the affairs, finances and accounts of the Borrower and its Subsidiaries

with the representatives of the Lenders, all at such reasonable times as

mutually agreed upon between the Borrower and the representatives of the

Lenders at the request of the Administrative Agent (it being understood that

public quarterly conference calls held at such dates and times as determined by

the Borrower in its sole discretion at which the Company’s quarterly results

are discussed shall satisfy this covenant).

Section 5.06.             [Intentionally Deleted].

 

Section 5.07.             Negative Pledge.  If the Borrower shall at any time mortgage,

pledge or otherwise subject to any Lien the whole or any part of any property

or assets now owned or hereafter acquired by it, other than Permitted Liens,

the Borrower will secure the Loans, Notes and other obligations of the Borrower

hereunder, equally and ratably with the Debt or other obligations secured by

such Lien, so long as any such Debt or other obligations shall be so

secured.  As used in this Agreement, “Permitted

Liens” means any of the following:

(a)           Liens existing on the Closing Date;

26

 

(b)           any Lien on any asset existing at the

time such asset is acquired if not created in contemplation of such

acquisition;

(c)           any Liens existing on any asset acquired,

constructed or improved after the Closing Date incurred in the ordinary course

of business if such Lien is created within 180 days of such acquisition,

construction or improvement and extends to no property or asset other than the

asset so acquired, constructed or improved and property incidental thereto;

(d)           (x) Liens incidental to the conduct

of the Borrower’s business or the ownership of its properties or otherwise

incurred in the ordinary course of business which (i) do not secure Debt,

and (ii) do not in the aggregate materially detract from the value of its

assets or materially impair the use thereof in the operation of its business,

and (y) Liens not described in clause (x) on cash and cash equivalents and

securities which Liens secure any obligation with respect to letters of credit

or surety bonds, which obligation in each case does not exceed $100,000,000;

(e)           any Liens arising out of the making

of any deposit or pledge to secure public or statutory obligations or which any

Governmental Authority at any time requires by law in order to qualify the

Borrower to conduct its business or any part thereof or in order to entitle the

Borrower to maintain self-insurance or to obtain the benefits of any law

relating to workmen’s compensation, unemployment insurance, old age pensions or

other social security, or Governmental Authority as security incident to the

proper conduct of any proceeding before such Governmental Authority;

(f)            any Liens for taxes, assessments,

governmental charges, levies or claims and similar charges either (i) not

delinquent or (ii) being contested in good faith by appropriate proceedings and

as to a reserve or other appropriate provision, if any, as shall be required in

conformity with generally accepted accounting principles shall have been made;

(g)           Liens incurred or pledges and

deposits made in connection with worker’s compensation, unemployment insurance,

old-age pensions and social security benefits or other types of public or

statutory obligations or securing the performance of bids, tenders, leases,

contracts, sureties, stays, appeals, indemnities, performance or similar bonds

or public or statutory obligations of like nature, incurred in the ordinary

course of business.

(h)           materialmen’s, mechanics,

repairmen’s, employees, operators’ or other similar Liens or charges arising in

the ordinary course of business incidental to construction, maintenance or

operation of any asset of the Borrower which have not at the time been filed

pursuant to law and any such Liens and charges incidental to construction,

maintenance or operation of any asset of the Borrower, which, although filed,

relate to obligations not yet due or the payment of which is being withheld as

provided by law, or to obligations the validity of which is being contested in

good faith by appropriate proceedings;

27

 

(i)            zoning restrictions, servitudes,

easements, licenses, reservations, provisions, covenants, conditions, waivers,

restrictions on the use of property or minor irregularities of title (and with

respect to leasehold interests, mortgages, obligations, Liens and other

encumbrances incurred, created assumed or permitted to exist and arising by,

through or under or asserted by a landlord or owner of the leased property,

with or without consent of the lessee) and other similar charges or

encumbrances, which will not individually or in the aggregate interfere

materially and adversely with the business of the Borrower or its Subsidiaries;

(j)            Liens created by or resulting from

any litigation or proceeding which is currently being contested in good faith

by appropriate proceedings and as to which levy and execution have been stayed

and continue to be stayed or for which the Borrower is maintaining adequate

reserves or other provision in conformity with generally accepted accounting

principles;

(k)           any interest or title of a lessor in

the property subject to any lease;

(l)            Liens in connection with the

securitization or factoring of the Borrower’s or any of its Subsidiaries’

receivables in a transaction intended to be a “true sale”; and

(m)          any Lien securing a refinancing,

replacement, extension, renewal or refunding of any Debt secured by a Lien

permitted by any of the foregoing clauses of this definition of “Permitted Liens”

to the extent secured in all material respects by the same asset or assets.

Notwithstanding

the foregoing, “Permitted Liens” shall not include any Lien to secure

Debt that is required to be granted on an equal and ratable basis under the

“negative pledge”, or equivalent, provisions of a Debt instrument (including

outstanding debt securities) as a result of the creation of a Lien that itself

would constitute a “Permitted Lien.”

Subject to the effects of the provisions of Section 5.08, nothing

herein contained shall prevent any entity other than Borrower from mortgaging,

pledging or subjecting to any Lien any property or assets whether or not

acquired from the Borrower.

Section 5.08.             Consolidations,

Mergers and Sales of Assets (a)         (a) 

The Borrower will not merge or consolidate with or into any other Person

(including a Subsidiary) or directly or indirectly transfer or lease its

properties and assets substantially as an entirety to any other Person

(including one or more Subsidiaries), or permit any of the Subsidiaries to do

so (other than to Borrower) if it would constitute all or substantially all of

the properties and assets of the Borrower and its Subsidiaries determined on a

consolidated basis (including a transfer of all or substantially all of such

properties or assets to one or more Subsidiaries), whether in a single

transaction or a series of related transactions; provided that (i)  the Borrower or any Subsidiary may

merge or consolidate with another Person (other than Wireless), or transfer or lease

its assets to another Person (other than Wireless), in a transaction in which

the surviving or transferee entity is a corporation organized under the laws of

the United States and agrees to perform and discharge all the obligations of

the Borrower under this Agreement and under the Notes pursuant to a written

instrument or instruments satisfactory to the Administrative Agent and counsel

for the

28

 

Lenders in their reasonable

determination and (ii) after giving effect to any such transaction, no

Default or Event of Default has occurred and is continuing.  In no event shall any material assets or

liability of Wireless be transferred to, or assumed by, the Borrower or any

Subsidiary that owns any material assets that was owned by the Borrower as of

the date hereof.

(b)           Notwithstanding anything to the

contrary contained in this Agreement, (i) but subject to the last sentence

of Section 5.08(a), the Borrower may transfer any or all of its interests

in Wireless to the Company or any of its Subsidiaries, and Wireless may

transfer any or all of its assets to the Company or any of its Subsidiaries and

(ii) the Borrower may consummate a securitization of its or its

Subsidiaries’ receivables, including the transfer of receivables and related

rights and assets to any Subsidiary or Subsidiaries for such purpose.

Section 5.09.             Use of Proceeds.  The proceeds of (i) the Tranche A Loans made

under this Agreement will be used, by the Borrower to refinance senior notes

due 2003 of the Borrower and (ii) any portion of the Tranche A Loans not fully

utilized as set forth in the preceding clause (i) and the Tranche B Loans made

under this Agreement will be used to finance or refinance the cost of

construction, installation, acquisition, or improvement of telecommunication

assets of the Borrower.  None of such

proceeds will be used, directly or indirectly, in violation of any applicable

law or regulation, and no use of such proceeds will include any use for the

purpose, whether immediate, incidental or ultimate, of buying or carrying any

Margin Stock.

ARTICLE 6

DEFAULTS

Section 6.01.             Events of Default.  If one or more of the following events shall

have occurred and be continuing:

(a)           any principal of any Loan shall not

be paid when due or any interest, any fees or any other amount payable

hereunder shall not be paid within five days of the due date thereof;

(b)           the Borrower shall fail to observe or

perform any covenant or agreement contained in any Loan Document for 90 days

after the earlier of (i) the chief executive officer’s or chief financial

officer’s knowledge of such failure or (ii) written notice thereof has been

given to the Borrower by the Administrative Agent at the request of any Lender;

(c)           any representation, warranty, certification

or statement made by the Borrower in any Loan Document or in any certificate,

financial statement or other document delivered pursuant thereto shall prove to

have been incorrect in any material respect when made (or deemed made);

(d)           the Borrower or any Significant

Subsidiary shall commence a voluntary case or other proceeding seeking

liquidation, reorganization or other relief with respect to itself or its debts

under any bankruptcy, insolvency or other similar law now or hereafter in effect

or seeking the appointment of a trustee, receiver, liquidator, custodian or

other similar official of it or any substantial part of its property, or shall

consent to any such relief or to the appointment of or taking possession by any

such official in an involuntary

29

 

case

or other proceeding commenced against it, or shall make a general assignment

for the benefit of creditors, or shall fail generally to pay its debts as they

become due, or shall take any corporate action to authorize or otherwise

acquiesce in any of the foregoing; or

(e)           an involuntary case or other

proceeding shall be commenced against the Borrower or any Significant

Subsidiary seeking liquidation, reorganization or other relief with respect to

it or its debts under any bankruptcy, insolvency or other similar law now or

hereafter in effect or seeking the appointment of a trustee, receiver,

liquidator, custodian or other similar official of it or any substantial part

of its property, and such involuntary case or other proceeding shall remain

undismissed and unstayed for a period of 60 days; or an order for relief shall

be entered against the Borrower or any Significant Subsidiary under the federal

bankruptcy laws as now or hereafter in effect.

then, and in every such

event, the Administrative Agent shall (i) if requested by the Required Lenders,

by notice to the Borrower terminate the Commitments and they shall thereupon

terminate, and/or (ii) if requested by Required Lenders, by notice to the

Borrower declare the Notes (together with accrued interest thereon) to be, and

the Notes shall thereupon become, immediately due and payable without

presentment, demand, protest or other notice of any kind, all of which are

hereby waived by the Borrower; provided

that in the case of any of the Events of Default specified in clause (d) or (e)

above with respect to the Borrower, without any notice to the Borrower or any

other act by the Administrative Agent or the Lenders, the Commitments shall

thereupon automatically terminate and the Notes (together with accrued interest

thereon) shall become immediately due and payable without presentment, demand,

protest or other notice of any kind, all of which are hereby waived by the

Borrower.

Section 6.02.             Notice of Default.  The Administrative Agent shall give notice

to the Borrower under Section 6.01(b) promptly upon being requested to do so by

any Lender and shall thereupon notify all the Lenders thereof.

ARTICLE 7

THE AGENTS

Section 7.01.             Appointment and Authorization.  Each Lender irrevocably appoints and

authorizes the Administrative Agent to take such action as administrative agent

on its behalf and to exercise such powers under the Loan Documents as are

delegated to the Administrative Agent by the terms thereof, together with all

such powers as are reasonably incidental thereto.

Section 7.02.             Agents and Affiliates.  The Agents and their Affiliates may make

loans to, issue letters of credit for the account of, accept deposits from,

acquire Equity Interests in and generally engage in any kind of banking, trust,

financial advisory, underwriting or other business with each of the Company,

Borrower or any Subsidiary or Affiliate of the Borrower (each, a “Qwest

Entity”) as though the Agents were not the Agents hereunder and without notice

to or consent of the Lenders.  The

Lenders acknowledge that, pursuant to such activities, the Agents, or their

Affiliates may receive information regarding any Qwest Entity (including

information that may be subject to confidentiality obligations in favor of such

Qwest Entity) and acknowledge that the Agents shall be under no obligation to

provide such information to them.

30

 

With respect to its Loans,

the Agents shall have the same rights and powers under this Agreement as any

other Lender and may exercise such rights and powers as though they were not

the Agents, and the terms “Lender” and “Lenders” includes each of the Agents in

its individual capacity.

Section 7.03.             Action by Agents.  The obligations of the Administrative Agent

under the Loan Documents are only those expressly set forth therein.  Without limiting the generality of the

foregoing, the Administrative Agent shall not be required to take any action

with respect to any Default, except as expressly provided in the Loan

Documents.  The Administrative Agent

shall not have or be deemed to have any fiduciary relationship with any Lender

or participant, and no implied covenants, functions, responsibilities, duties,

obligations or liabilities shall be read into this Agreement or otherwise exist

against the Administrative Agent. 

Without limiting the generality of the foregoing sentence, the use of

the term “agent” in any Loan Document with reference to any of the Agents is

not intended to connote any fiduciary or other implied (or express) obligations

arising under agency doctrine of any applicable law. Instead, such term is used

merely as a matter of market custom, and is intended to create or reflect only

an administrative relationship between independent contracting parties.

Section 7.04.             Consultation with Experts.  The Administrative Agent may consult with

legal counsel (who may be counsel for the Borrower), independent public

accountants and other experts selected by it and shall not be liable for any

action taken or omitted to be taken by it in good faith in accordance with the

advice of such counsel, accountants or experts.

Section 7.05.             Delegation of Duties.  The Administrative Agent may execute any of

its duties under the Loan Documents by or through agents, employees or

attorneys-in-fact and shall be entitled to advice of counsel and other

consultants or experts concerning all matters pertaining to such duties.  The Administrative Agent shall not be

responsible for the negligence or misconduct of any agent or attorney-in-fact

that it selects in the absence of gross negligence or willful misconduct.

Section 7.06.             Liability of Agents.  None of the Agents nor any of their

Affiliates nor any of their respective directors, officers, agents or employees

shall be liable for any action taken or not taken by it in connection with any

Loan Document (i) with the consent or at the request of the Required

Lenders or (ii) in the absence of its own gross negligence or willful

misconduct. None of the Agents nor any of their Affiliates nor any of their

respective directors, officers, agents or employees shall be responsible for or

have any duty to ascertain, inquire into or verify (i) any statement, warranty

or representation made in connection with any Loan Document or any borrowing

hereunder; (ii) the performance or observance of any of the covenants or

agreements of the Borrower; (iii) the satisfaction of any condition specified

in Article 3, except receipt of items required to be delivered to the Agents;

or (iv) the validity, effectiveness or genuineness of any Loan Document or any

other instrument or writing furnished in connection therewith. None of the

Agents, their Affiliates and their respective directors, officers, agents and

employees shall be under any obligation to any Lender or participant to inspect

the properties, books or records of any Qwest Entity. The Agents shall not

incur any liability by acting in reliance upon any notice, consent,

certificate, statement, or other writing (which may be a Lender wire, telex or

similar writing) believed by it to be genuine or to be signed by the proper

party or parties.

31

 

Section 7.07.             Indemnification.  Each Lender shall, ratably in accordance with

its Commitment, indemnify the Agents, their Affiliates and their respective

directors, officers, agents and employees (to the extent not reimbursed by the

Borrower) against any cost, expense (including reasonable counsel fees and

disbursements), claim, demand, action, loss or liability (except such as result

from such indemnitees’ gross negligence or willful misconduct) that such

indemnitees may suffer or incur in connection with the Loan Documents or any

action taken or omitted by such indemnitees thereunder.  No action taken with the consent or at the

request of the Required Lenders shall be deemed to constitute gross negligence

or willful misconduct for purposes of this Section.

Section 7.08.             Credit Decision; Disclosure of

Information by Agents.  Each Lender acknowledges that none of the Agents, their

Affiliates and their respective directors, officers, agents and employees

(each, an “Agent-Related Person”) has made any representation or

warranty to it, and that no act by the Agents hereafter taken, including any

consent to and acceptance of any assignment or review of the affairs of any

Qwest Entity, shall be deemed to constitute any representation or warranty by

the Agents or any other Person to any Lender as to any matter, including

whether Agent-Related Persons have disclosed material information in their

possession.  Each Lender represents to

the Agents that it has, independently and without reliance upon any

Agent-Related Person and based on such documents and information as it has

deemed appropriate, made its own appraisal of and investigation into the

business, prospects, operations, property, financial and other condition and

creditworthiness of the Qwest Entities, and all applicable Lender or other

regulatory laws relating to the transactions contemplated hereby, and made its

own decision to enter into this Agreement and to extend credit hereunder.  Each Lender also represents that it will,

independently and without reliance upon any Agent-Related Person and based on

such documents and information as it shall deem appropriate at the time,

continue to make its own credit analysis, appraisals and decisions in taking or

not taking action under this Agreement, and to make such investigations as it

deems necessary to inform itself as to the business, prospects, operations,

property, financial and other condition and creditworthiness of the Qwest

Entities.  Except for the notices,

reports and other documents expressly required to be furnished to the Lenders

by the Administrative Agent herein, the Agents shall not have any duty or

responsibility to provide any Lender with any credit or other information

concerning the business, prospects, operations, property, financial and other

condition or creditworthiness of any of the Qwest Entities which may come into the

possession of any Agent-Related Person.

Section 7.09.             Successor Administrative Agent.  The Administrative Agent may resign at any

time by giving notice thereof to the Lenders and the Borrower.  Upon any such resignation, the Required

Lenders shall have the right to appoint a successor Administrative Agent (and,

so long as no Default has occurred and is continuing, with the consent of the

Borrower, such consent not to be unreasonably withheld or delayed).  If no successor Administrative Agent shall

have been so appointed by the Required Lenders, and shall have accepted such

appointment, within 30 days after the retiring Administrative Agent gives

notice of resignation, then the retiring Administrative Agent may, on behalf of

the Lenders, appoint a successor Administrative Agent (and, so long as no

Default has occurred and is continuing, with the consent of the Borrower, such

consent not to be unreasonably withheld or delayed), which shall be a

commercial Lender organized or licensed under the laws of the United States of

America or of any State thereof and having a combined capital and surplus of at

least $400,000,000.  Upon the acceptance

of its appointment as Administrative Agent hereunder by a successor Administrative

32

 

Agent, such successor

Administrative Agent shall thereupon succeed to and become vested with all the

rights and duties of the retiring Administrative Agent, and the retiring

Administrative Agent shall be discharged from its duties and obligations

hereunder.  After any retiring

Administrative Agent’s resignation hereunder as Administrative Agent, the

provisions of this Article shall inure to its benefit as to any actions taken

or omitted to be taken by it while it was Administrative Agent.  If no successor agent has accepted

appointment as Administrative Agent by the date which is 30 days following a

retiring Administrative Agent’s notice of resignation, the retiring

Administrative Agent’s resignation shall at its election nevertheless thereupon

become effective and the Lenders shall perform all of the duties of the

Administrative Agent hereunder until such time, if any, as the Required Lenders

appoint a successor agent as provided above.

Section 7.10.             Administrative Agent’s Fee.  The Borrower shall pay to the Administrative

Agent for its own account fees in the amounts and at the times previously

agreed upon between the Borrower and the Administrative Agent.

ARTICLE 8

CHANGES IN CIRCUMSTANCES

Section 8.01.             Basis for Determining Interest

Rate Inadequate or Unfair.  If on or prior to the first day of any Interest Period for any

Euro-Dollar Loan:

(a)           the Administrative Agent determines

(which determination will be conclusive absent manifest error) that adequate

and reasonable means do not exist for ascertaining the Adjusted London

InterBank Offered Rate for such Interest Period, or

(b)           in the case of Euro-Dollar Loans,

Lenders having 50% or more of the aggregate amount of the Euro-Dollar Loans

advise the Administrative Agent that the Adjusted London InterBank Offered Rate

as determined by the Administrative Agent will not adequately and fairly

reflect the cost to such Lenders of funding their Euro-Dollar Loans for such

Interest Period, the Administrative Agent shall forthwith give notice thereof to

the Borrower and the Lenders, whereupon until the Administrative Agent notifies

the Borrower that the circumstances giving rise to such suspension no longer

exist, (i) the obligations of the Lenders to make Euro-Dollar Loans or to

convert outstanding Loans into Euro-Dollar Loans shall be suspended and (ii)

each outstanding Euro-Dollar Loan shall be converted into a Base Rate Loan on

the last day of the then current Interest Period applicable thereto. Unless the

Borrower notifies the Administrative Agent at least two Domestic Business Days

before the date of any Euro-Dollar Borrowing for which a Notice of Borrowing

has previously been given that it elects not to borrow on such date, such

Borrowing shall instead be made as a Base Rate Borrowing.

Section 8.02.             Illegality.  If, on or after the date of this Agreement,

the adoption of any applicable law, rule or regulation, or any change in any

applicable law, rule or regulation, or any change in the interpretation or

administration thereof by any governmental authority, central Lender or

comparable agency charged with the interpretation or administration thereof, or

compliance by any Lender (or its Euro-Dollar Lending Office) with any request

or directive (whether or not having the force of law) of any such authority,

central Lender or comparable 

33

 

agency shall make it

unlawful or impossible for any Lender (or its Euro-Dollar Lending Office) to

make, maintain or fund its Euro-Dollar Loans and such Lender shall so notify

the Administrative Agent, the Administrative Agent shall forthwith give notice

thereof to the other Lenders and the Borrower, whereupon until such Lender

notifies the Borrower and the Administrative Agent that the circumstances

giving rise to such suspension no longer exist, the obligation of such Lender

to make Euro-Dollar Loans, or to convert outstanding Loans into Euro-Dollar

Loans, shall be suspended. Before giving any notice to the Administrative Agent

pursuant to this Section, such Lender shall designate a different Euro-Dollar

Lending Office if such designation will avoid the need for giving such notice

and will not, in the judgment of such Lender, be otherwise disadvantageous to

such Lender. If such notice is given, each Euro-Dollar Loan of such Lender then

outstanding shall be converted to a Base Rate Loan either (a) on the last day

of the then current Interest Period applicable to such Euro-Dollar Loan if such

Lender may lawfully continue to maintain and fund such Loan to such day or (b)

immediately if such Lender shall determine that it may not lawfully continue to

maintain and fund such Loan to such day.

Section 8.03.             Increased Cost and Reduced

Return.  (a)  If on or after the date hereof, the adoption

of any applicable law, rule or regulation, or any change in any applicable law,

rule or regulation, or any change in the interpretation or administration

thereof by any governmental authority, central Lender or comparable agency

charged with the interpretation or administration thereof, or compliance by any

Lender (or its Lending Office) with any request or directive (whether or not

having the force of law) of any such authority, central Lender or comparable

agency shall impose, modify or deem applicable any reserve (including, without

limitation, any such requirement imposed by the Board of Governors of the

Federal Reserve System with respect to any Euro-Dollar Loan any such

requirement included in an applicable Euro-Dollar Reserve Percentage), special

deposit, insurance assessment or similar requirement against assets of,

deposits with or for the account of, or credit extended by, any Lender (or its

Lending Office) or shall impose on any Lender (or its Lending Office) or on the

United States market for certificates of deposit or the London InterBank market

any other condition affecting its Euro-Dollar Loans, its Note or its obligation

to make Euro-Dollar Loans and the result of any of the foregoing is to increase

the cost to such Lender (or its Lending Office) of making or maintaining any

Euro-Dollar Loan, or to reduce the amount of any sum received or receivable by

such Lender (or its Lending Office) under this Agreement or under its Note with

respect thereto, by an amount deemed by such Lender to be material, then,

within 15 days after demand by such Lender (with a copy to the Administrative

Agent), the Borrower shall pay to such Lender such additional amount or amounts

as will compensate such Lender for such increased cost or reduction.

(b)           If any Lender shall have determined

that, after the date hereof, the adoption of any applicable law, rule or

regulation regarding capital adequacy, or any change in any such law, rule or

regulation, or any change in the interpretation or administration thereof by

any governmental authority, central Lender or comparable agency charged with

the interpretation or administration thereof, or any request or directive

regarding capital adequacy (whether or not having the force of law) of any such

authority, central Lender or comparable agency, has or would have the effect of

reducing the rate of return on capital of such Lender (or its Parent) as a

consequence of such Lender’s obligations hereunder to a level below that which

such Lender (or its Parent) could have achieved but for such adoption, change,

request or directive (taking into consideration its policies with respect to

capital adequacy) by an amount deemed by such Lender

34

 

to be material, then from

time to time, within 15 days after demand by such Lender (with a copy to the

Administrative Agent), the Borrower shall pay to such Lender such additional

amount or amounts as will compensate such Lender (or its Parent) for such

reduction.

(c)           Each Lender will promptly notify the

Borrower and the Administrative Agent of any event of which it has knowledge,

occurring after the date hereof, which will entitle such Lender to compensation

pursuant to this Section and will designate a different Lending Office if such

designation will avoid the need for, or reduce the amount of, such compensation

and will not, in the judgment of such Lender, be otherwise disadvantageous to

such Lender. A certificate of any Lender claiming compensation under this

Section and setting forth the additional amount or amounts to be paid to it hereunder

shall be conclusive in the absence of manifest error. In determining such

amount, such Lender may use any reasonable averaging and attribution methods.

Section 8.04.             Taxes.  (a) 

Any and all payments by the Borrower to or for the account of any Lender

or the Administrative Agent under any Loan Document shall be made free and

clear of and without deduction for any and all present or future taxes, duties,

levies, imposts, deductions, charges or withholdings, and all liabilities with

respect thereto, excluding, (x) in the case of each Lender and the

Administrative Agent, taxes imposed on its income or profits, and franchise

taxes imposed on it, by the jurisdiction under the laws of which such Lender or

the Administrative Agent (as the case may be) is organized or any political

subdivision thereof, (y) in the case of each Lender, taxes imposed on its

income or profits, and franchise or similar taxes imposed on it, by the

jurisdiction of such Lender’s Lending Office or any political subdivision

thereof, taxes that are imposed by any jurisdiction by reason of such Lender

doing or having done business in such jurisdiction other than solely as a

result of the Loan Documents or any transaction contemplated thereby, and (z)

in the case of each Lender and the Administrative Agent, any branch profits

taxes imposed by the United States or any similar tax imposed by any other

jurisdiction in which such Lender or the Administrative Agent is organized or

in which its Lending Office is located or any political subdivision thereof

(all such non-excluded taxes, duties, levies, imposts, deductions, charges,

withholdings and liabilities being hereinafter referred to as “Taxes”).

If the Borrower shall be required by law to deduct any Taxes from or in respect

of any sum payable under any Loan Document to any Lender or the Administrative

Agent, (i) the sum payable shall be increased as necessary so that after making

all required deductions (including deductions applicable to additional sums

payable under this Section 8.04) such Lender or the Administrative Agent (as

the case may be) receives an amount equal to the sum it would have received had

no such deductions been made, (ii) such Person shall make such deductions,

(iii) such Person shall pay the full amount deducted to the relevant taxation

authority or other authority in accordance with applicable law and (iv) such

Person shall furnish to the Administrative Agent, at its address referred to in

Section 10.01, the original or a certified copy of a receipt, if any,

evidencing payment thereof.

(b)           In addition, the Borrower agrees to

pay any present or future stamp or documentary taxes and any other excise or

property taxes, or charges or similar levies which arise from any payment made

under any Loan Document or from the execution or delivery of, or otherwise with

respect to, any Loan Document (hereinafter referred to as “Other Taxes”).

35

 

(c)           The Borrower agrees to indemnify each

Lender and the Administrative Agent for the full amount of Taxes or Other Taxes

(including, without limitation, any Taxes or Other Taxes imposed or asserted by

any jurisdiction on amounts payable under this Section 8.04) paid by such

Lender or the Administrative Agent (as the case may be) and any liability (including

penalties, interest and expenses) arising therefrom or with respect thereto; provided that the indemnification

obligation under this Section 8.04(c) shall be only with respect to Taxes,

Other Taxes and liabilities related to payments made by the Borrower under any

Loan Document. This indemnification shall be made within 15 days from the date

such Lender or the Administrative Agent (as the case may be) makes written

demand therefor.

(d)           Each Lender organized under the laws

of a jurisdiction outside the United States, in the case of each Lender listed

on the signature page hereof, on or prior to the date of such Lender’s

execution and delivery of this Agreement, in the case of each other Lender, on

and prior to the date on which such other Lender becomes a Lender, in the case

of each Lender that grants any participating interest pursuant to Section 10.06

or otherwise ceases to act for its own account with respect to any portion of

any sums payable to it under this Agreement, on or prior to the date on which

such Lender grants such participating interest or otherwise ceases to so act

for its own account, and in the case of any Lender, and from time to time

thereafter if requested in writing by the Borrower (but only so long as such

Lender remains lawfully able to do so), shall provide the Borrower with

Internal Revenue Service form W-8BEN, W-8ECI and/or W-8IMY, as appropriate, or

any successor form prescribed by the Internal Revenue Service (together with

any form, documentation or information such Lender is required or chooses to

transmit with any such forms), certifying that such Lender is entitled to

benefits under an income tax treaty to which the United States is a party which

reduces the rate of withholding tax on payments of interest or certifying that

the income receivable pursuant to this Agreement is effectively connected with

the conduct of a trade or business in the United States or certifying to such

Lender’s legal entitlement to an exemption from U.S. federal withholding tax

with respect to all interest payments hereunder and/or certifying as provided

on Form W-8IMY. In addition, each Lender that is not a bank shall certify on a

“Non-Bank Certificate” provided by the Administrative Agent that such Lender is

not a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue

Code.  If the form provided by a Lender

at the time such Lender first becomes a party to this Agreement indicates a

United States interest withholding tax rate in excess of zero, withholding tax

at such rate shall be considered excluded from “Taxes” as defined in Section

8.04(a) imposed by the United States.

(e)           Each Lender organized under the laws

of a jurisdiction within the United States, on or prior to the date of its

execution and delivery of this Agreement in the case of each Lender listed on

the signature pages hereof, on or prior to the date on which it becomes a

Lender in the case of each other Lender, and from time to time thereafter if

reasonably requested in writing by the Borrower (but only so long as such

Lender remains lawfully able to do so), shall provide the Borrower

with Internal Revenue Service form W-9, or any successor form prescribed

by the Internal Revenue Service (together with any form, documentation or

information such Lender is required or chooses to transmit with any such

forms).

(f)            For any period with respect to which

a Lender has failed to provide the Borrower with the appropriate form pursuant

to Section 8.04(d) or (e) (unless such failure is due to a change in treaty,

law or regulation occurring subsequent to the date on which a form

36

 

originally was required to

be provided), such Lender shall not be entitled to gross-up or indemnification

under Section 8.04(b) or (c) (as applicable) with respect to Taxes imposed by

the United States; provided, however, that should a Lender, which is

otherwise exempt from or subject to a reduced rate of withholding tax, become

subject to Taxes because of its failure to deliver a form required hereunder, the

Borrower shall take such steps as such Lender shall reasonably request to

assist such Lender to recover such Taxes.

(g)           If the Borrower is required to pay

additional amounts to or for the account of any Lender pursuant to this Section

8.04, then such Lender will change the jurisdiction of its Lending Office so as

to eliminate or reduce any such additional payment which may thereafter accrue

if such change, in the judgment of such Lender, is not otherwise

disadvantageous to such Lender.

Section 8.05.             Base Rate Loans Substituted for

Affected Euro-Dollar Loans.  If (i) the obligation of any Lender to make Euro-Dollar

Loans to the Borrower has been suspended pursuant to Section 8.02 or (ii) any

Lender has demanded compensation under Section 8.03 with respect to its

Euro-Dollar Loans and the Borrower shall, by at least five Euro-Dollar Business

Days’ prior notice to such Lender through the Administrative Agent, have

elected that the provisions of this Section shall apply to such Lender, then,

unless and until such Lender notifies the Borrower that the circumstances

giving rise to such suspension or demand for compensation no longer exist,

(a) all Loans which would otherwise be made by such Lender as (or

continued as or converted into) Euro-Dollar Loans shall instead be Base Rate

Loans (on which interest and principal shall be payable contemporaneously with

the related Euro-Dollar Loans of the other Lenders), and (b) after each of its

Euro-Dollar Loans has been repaid (or converted to a Base Rate Loan), all payments

of principal which would otherwise be applied to repay such Euro-Dollar Loans

shall be applied to repay its Base Rate Loans instead.

If such Lender notifies the

Borrower that the circumstances giving rise to such notice no longer apply, the

principal amount of each such Base Rate Loan shall be converted into a

Euro-Dollar Loan on the first day of the next succeeding Interest Period

applicable to the related Euro-Dollar Loans of the other Lenders.

Section 8.06.             Substitution of Lender.  If (i) the obligation of any Lender to make

Euro-Dollar Loans has been suspended pursuant to Section 8.02, (ii) any Lender

has demanded compensation under Section 8.03 or (iii) any Lender has not signed

an amendment or waiver which must be signed by all the Lenders to become

effective, and such amendment or waiver has been signed by the Required

Lenders, the Borrower shall have the right, with the assistance of the

Administrative Agent, to seek a mutually satisfactory substitute Lender or

Lenders (which may be one or more of the Lenders) to purchase the Notes (by

paying to such Lender the principal amount of such Note, together with accrued

interest thereon and any other amounts payable to such Lender hereunder) and

assume the Commitment (if any) of such Lender.

37

 

ARTICLE

9

[INTENTIONALLY DELETED]

ARTICLE 10

MISCELLANEOUS

Section 10.01.           Notices.  All notices, requests and other

communications to any party hereunder shall be in writing (including Lender

wire, telex, facsimile transmission or similar writing) and shall be given to

such party (x) in the case of the Borrower or the Administrative Agent, at its

address or facsimile number set forth on the signature pages hereof, (y) in the

case of any Lender, at its address or facsimile number set forth in its

Administrative Questionnaire or (z) in the case of any party, such other

address or facsimile number as such party may hereafter specify for the purpose

by notice to the Administrative Agent and the Borrower.  Each such notice, request or other

communication shall be effective (i) if given by mail, 72 hours after such

communication is deposited in the mails with first class postage prepaid,

addressed as aforesaid, (ii) if given by facsimile transmission, when such

facsimile is transmitted to the facsimile number specified pursuant to this

Section 10.01 and telephonic confirmation of receipt thereof is received, or

(iii) if given by any other means, when delivered at the address specified in

this Section; provided that

notices to the Administrative Agent under Article 2 or Article 8 shall not be

effective until received.

Section 10.02.           No

Waivers.  No failure

or delay by the Agents or any Lender in exercising any right, power or

privilege under any Loan Document shall operate as a waiver thereof nor shall

any single or partial exercise thereof preclude any other or further exercise

thereof or the exercise of any other right, power or privilege.  The rights and remedies provided in the Loan

Document shall be cumulative and not exclusive of any rights or remedies

provided by law.

Section 10.03.           Expenses; Indemnification.  (a) 

The Lenders will bear their own costs and expenses relating to the

negotiation, preparation, execution and delivery of the Loan Documents; provided that the Agents shall bear pro rata, in accordance with their

respective commitments under the Commitment Letter dated May 28, 2003, all such

costs and expenses, as well as all syndication costs and expenses, incurred by

the Sole Book-Runner.  The Borrower

shall pay or reimburse (i) all reasonable costs and expenses of the

Administrative Agent, including reasonable fees and disbursements of special

counsel for the Administrative Agent, in connection with any waiver or consent

hereunder or any amendment hereof or any Default or alleged Default hereunder;

and (ii) if an Event of Default occurs, all costs and expenses incurred by

the Administrative Agent, including reasonable fees and disbursements of

counsel, in connection with such Event of Default and collection, bankruptcy,

insolvency and other enforcement proceedings resulting therefrom.

(b)           The Borrower agrees to indemnify the

Administrative Agent, the Lead Arrangers and each Lender, their respective

Affiliates and the respective directors, officers, agents and employees of the

foregoing (each an “Indemnitee”) and hold each Indemnitee harmless from

and against any and all liabilities, losses, damages, costs and expenses of any

kind, including,

38

 

without limitation, the

reasonable fees and disbursements of counsel, which may be incurred by such

Indemnitee in connection with any investigative, administrative or judicial

proceeding (whether or not such Indemnitee shall be designated a party thereto)

brought or threatened relating to or arising out of the Loan Documents or any

actual or proposed use of proceeds of Loans hereunder; provided that (i) no Indemnitee shall have

the right to be indemnified hereunder for such Indemnitee’s own gross

negligence or willful misconduct as determined in a final, non-appealable

judgment by a court of competent jurisdiction and (ii) the Borrower shall not

be liable for any settlement entered into by an Indemnitee without its consent

(which shall not be unreasonably withheld or delayed).

(c)           Each Indemnitee agrees to give the

Borrower prompt written notice after it receives any notice of the commencement

of any action, suit or proceeding for which such Indemnitee may wish to claim

indemnification pursuant to subsection (b). 

The Borrower shall have the right, exercisable by giving written notice

within fifteen Domestic Business Days after the receipt of notice from such

Indemnitee of such commencement, to assume, at the Borrower’s expense, the

defense of any such action, suit or proceeding; provided that such Indemnitee shall have the right to employ

separate counsel in any such action, suit or proceeding and to participate in

the defense thereof, but the fees and expenses of such separate counsel shall

be at such Indemnitee’s expense unless (1) the Borrower shall have agreed

to pay such fees and expenses; (2) the Borrower shall have failed to

assume the defense of such action, suit or proceeding or shall have failed to

employ counsel reasonably satisfactory to such Indemnitee in any such action,

suit or proceeding; or (3) such Indemnitee shall have been advised by

independent counsel in writing (with a copy to the Borrower) that there may be

one or more defenses available to such Indemnitee which are in conflict with

those available to the Borrower (in which case, if such Indemnitee notifies the

Borrower in writing that it elects to employ separate counsel at the Borrower’s

expense, the Borrower shall be obligated to assume the expense, it being

understood, however, that the Borrower shall not be liable for the fees or

expenses of more than one separate firm of attorneys, which firm shall be

designated in writing by such Indemnitee).

Section 10.04.           Sharing of Set-offs.  Each Lender agrees that if it shall, by

exercising any right of set-off or counterclaim or otherwise, receive payment

of a proportion of the aggregate amount of principal and interest due with

respect to any Loan or Note held by it which is greater than the proportion

received by any other Lender in respect of the aggregate amount of principal

and interest due with respect to any Loan or Note held by such other Lender,

the Lender receiving such proportionately greater payment shall purchase such

participations in the Loans and Notes held by the other Lenders, and such other

adjustments shall be made, as may be required so that all such payments of

principal and interest with respect to the Loans or Notes held by the Lenders

shall be shared by the Lenders pro rata;

provided that nothing in this

Section shall impair the right of any Lender to exercise any right of set-off

or counterclaim it may have and to apply the amount subject to such exercise to

the payment of indebtedness of the Borrower other than its indebtedness

hereunder.  The Borrower agrees, to the

fullest extent it may effectively do so under applicable law, that any holder

of a participation in a Loan or Note, whether or not acquired pursuant to the

foregoing arrangements, may exercise rights of set-off or counterclaim and

other rights with respect to such participation as fully as if such holder of a

participation were a direct creditor of the Borrower in the amount of such

participation.

39

 

Section 10.05.           Amendments and Waivers.  Any provision of this Agreement or the Notes

may be amended or waived if, but only if, such amendment or waiver is in

writing and is signed by the Borrower and the Required Lenders (and, if the

rights or duties of the Administrative Agent are affected thereby, by the

Administrative Agent); provided that

(A) no such amendment or waiver shall, unless signed by all the Lenders of

the Class or Classes affected thereby, (i) increase or decrease the

Commitment of any Lender (except for a ratable decrease in the Commitments of

all Lenders) or subject any Lender to any additional obligation (it being

understood that an increase or decrease pursuant to Section 8.06 or 10.06 shall

not constitute an amendment or waiver for this purpose), (ii) reduce the

principal of or rate of interest on any Loan or any fees hereunder,

(iii) postpone the date fixed for any payment of principal of or interest

on any Loan or any fees hereunder, or (iv) change this Section 10.05 or

the percentage of the Commitments or of the aggregate unpaid principal amount

of the Loans or Notes, or the number of Lenders, which shall be required for

the Lenders or any of them to take any action under this Section or any other

provision of this Agreement, (B) no such amendment or waiver shall amend

or waive the provisions of Article 3 without the written consent of Merrill

Lynch Capital Corporation, Credit 

Suisse First Boston, acting through its Cayman Islands Branch, and

Deutsche Bank Trust Company Americas (collectively, the “Initial Lenders”)

and (C) no such amendment or waiver shall amend or waive Sections 5.07 and

5.08 without the written consent of the Required Class Lenders.

Section 10.06.           Successors and Assigns.  (a) 

The provisions of this Agreement shall be binding upon and inure to the

benefit of the parties hereto and their respective successors and assigns,

except that the Borrower may not assign or otherwise transfer any of its rights

under this Agreement without the prior written consent of all Lenders.

(b)           Any Lender may at any time grant to

one or more Lenders or other Eligible Persons (each a “Participant”)

participating interests in its Commitment or any or all of its Loans.  In the event of any such grant by a Lender

of a participating interest to a Participant, such Lender shall remain

responsible for the performance of its obligations hereunder, and the Borrower

and the Administrative Agent shall continue to deal solely and directly with

such Lender in connection with such Lender’s rights and obligations under this

Agreement.  The agreement pursuant to

which any Lender may grant such a participating interest shall be substantially

in the form of Exhibit E hereto and shall provide that such Lender shall

retain the sole right and responsibility to enforce the obligations of the

Borrower hereunder including, without limitation, the right to approve any

amendment, modification or waiver of any provision of this Agreement and the

right to receive any payment pursuant to the penultimate sentence of this

Section 10.06(b); provided that

such participation agreement may provide that such Lender will not agree to any

modification, amendment or waiver of this Agreement described in clause (i),

(ii) or (iii) of Section 10.05 without the consent of the Participant.  The Borrower agrees that each Participant

shall, to the extent provided in its participation agreement, be entitled to

the benefits of Article 8 with respect to its participating interest. An

assignment or other transfer which is not permitted by subsection (c) below but

which is consented to in accordance with this subsection (b) shall be given

effect for purposes of this Agreement only to the extent of a participating

interest granted in accordance with this subsection (b).

(c)           Any Lender may at any time assign to

one or more Eligible Persons (each an “Assignee”) all, or a proportionate

part of all, of its rights and obligations under this

40

 

Agreement and the Loans or

Notes; provided that (1) the

Administrative Agent and the Sole Book-Runner must give their prior written

consent to such assignment (which shall not be unreasonably withheld),

(2) except in the case of an assignment to a Lender or a Lender Affiliate,

any assignment shall not be less than $1,000,000 (unless the assigning Lender’s

exposure is thereby reduced to zero), (3) the parties to such assignment

shall (x) electronically execute and deliver to the Administrative Agent

an Assignment and Assumption Agreement substantially in the form of Exhibit

F hereto via an electronic settlement system acceptable to the

Administrative Agent (which initially shall be Clear Par, LLC) or

(y) manually execute and deliver to the Administrative Agent an Assignment

and Assumption Agreement substantially in the form of Exhibit F hereto,

together with a processing and recording fee of US$3,500 (with only one such

fee payable in connection with simultaneous assignments to or by two or more

Lender Affiliates) and (4) the assignee if it shall not be a Lender shall

deliver to the Administrative Agent an Administrative Questionnaire and the

applicable tax forms, if any. 

Notwithstanding any of the foregoing, the consent of the Sole

Book-Runner shall only be required for so long as the Sole Book-Runner

determines that a successful syndication has not been completed.  Upon acceptance and recording as provided

below, from and after the effective date specified in the Assignment and

Assumption Agreement, such Assignee shall be a Lender party to this Agreement

and shall have all the rights and obligations of a Lender with a Commitment as

set forth in such instrument of assumption, and the transferor Lender shall be

released from its obligations hereunder to a corresponding extent, and no

further consent or action by any party shall be required.  Upon the consummation of any assignment

pursuant to this subsection (c), the transferor Lender, the Administrative

Agent and the Borrower shall make appropriate arrangements so that, if

required, new Notes are issued to the Assignee.  If the Assignee is not incorporated under the laws of the United

States of America or a state thereof, it shall deliver to the Borrower and the

Administrative Agent certification as to exemption from deduction or

withholding of any United States federal income taxes in accordance with

Section 8.04.

No Assignee, Participant or

other transferee of any Lender’s rights shall be entitled to receive any

greater payment under Section 8.03 or 8.04 than such Lender would have been

entitled to receive with respect to the rights transferred, unless such

transfer is made with the Borrower’s prior written consent or by reason of the

provisions of Section 8.02, 8.03 or 8.04 requiring such Lender to designate a

different Lending Office under certain circumstances or at a time when the

circumstances giving rise to such greater payment did not exist.

Upon its receipt of a duly

executed Assignment and Assumption Agreement executed by an assigning Lender

and an assignee, an Administrative Questionnaire completed in respect of the

assignee (unless the assignee shall already be a Lender hereunder), the

processing and recordation fee required above (if any), the applicable tax

forms completed in respect of the assignee (unless the assignee shall already

be a Lender hereunder) and, if required, the written consent of the Sole

Book-Runner and the Administrative Agent to such assignment, the Administrative

Agent shall (i) accept such Assignment and Acceptance and (ii) record

the information contained therein in the Register.  No assignment shall be effective unless it has been recorded in

the Register as provided in this paragraph.

(d)           Notwithstanding anything to the

contrary contained herein, (i) any Lender (a “Granting Lender”) may

(a)  pursuant to Section 10.06(c) assign to a special purpose funding

vehicle (an “SPC”) of such Granting Lender, identified as such in writing

from time to time by

41

 

the Granting Lender to the

Administrative Agent and without paying any processing fee therefor, all or

portion of its interests in any Loans to any financial institutions (if consented

to by the Administrative Agent) providing liquidity and/or credit facilities to

or for the account of such SPC to support the securities (if any) issued by

such SPC to fund such Loans and (b) disclose on a confidential basis any

non-public information relating to its Loans to any rating agency, commercial

paper dealer or provider of a surety, guarantee or credit or liquidity

enhancement to such SPC; or (ii) any Lender that is a Fund may create a

security interest in all or any portion of the Loans owing to it and the Note,

if any, held by it to the trustee for holders of obligations owed, or

securities issued, by such Fund as security for such obligations or securities,

provided that unless and until

such trustee actually becomes a Lender in compliance with the other provisions

of this Section 10.06, (a) no such pledge shall release the pledging Lender

from any of its obligations under the Loan Documents and (b) such trustee shall

not be entitled to exercise any of the rights of a Lender under the Loan

Documents even though such trustee may have acquired ownership rights with

respect to the pledged interest through foreclosure or otherwise.

Section 10.07.           Governing Law; Submission to

Jurisdiction.  This

Agreement and each Note shall be governed by and construed in accordance with

the laws of the State of New York. The Borrower hereby submits to the

nonexclusive jurisdiction of the United States District Court for the Southern

District of New York and of any New York State court sitting in New York City for

purposes of all legal proceedings arising out of or relating to the Loan

Documents or the transactions contemplated thereby, and irrevocably waives, to

the fullest extent permitted by law, any objection which it may now or

hereafter have to the laying of the venue of any such proceeding brought in

such a court and any claim that any such proceeding brought in such a court has

been brought in an inconvenient forum.

Section 10.08.           Counterparts; Integration.  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.  This Agreement constitutes the entire

agreement and understanding among the parties hereto and supersedes any and all

prior agreements and understandings, oral or written, relating to the subject

matter hereof.

Section 10.09.           WAIVER OF JURY TRIAL.  EACH OF THE BORROWER, THE AGENTS AND THE

LENDERS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY

LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS OR THE

TRANSACTIONS CONTEMPLATED THEREBY.

Section 10.10.           No Reliance on Margin Stock.  Each Lender represents to the Agents and

each of the other Lenders that it in good faith is not relying upon any Margin

Stock as collateral in the extension or maintenance of the credit provided for

in this Agreement.

Section 10.11.           Lead

Arrangers, Sole Book-Runner, Syndication Agent, Arranger and Documentation

Agent.  No Person identified on the

cover page of this Agreement as a lead arranger, sole book-runner, syndication

agent, arranger or documentation agent shall have any right, power, obligation,

liability, responsibility or duty under the Loan Documents in such capacity.

42

 

Section 10.12.           Representations and

Acknowledgements of Lenders.  (a)  Each Lender

(including each Lender becoming a party hereto pursuant to an Assignment and

Assumption Agreement in accordance with Section 10.06(c)) represents and warrants

that it is an Eligible Person; that it has experience and expertise in the

making or holding of loans such as the Loans; and that it has made or will

hold, as the case may be, its Loans for its own account in the ordinary course

of its business (it being understood that, subject to the provisions of Section

10.06 the disposition of its Loans or any interests therein shall at all times

remain within its exclusive control).

(b)           Certain Lenders (including each

Lender becoming a party hereto pursuant to an Assignment and Assumption

Agreement in accordance with Section 10.06(c)) may elect with the

Administrative Agent not to receive material non-public information with

respect to the Borrower and its Affiliates and such Lenders acknowledge that

other Lenders may have received additional information with respect to the

Borrower and its Affiliates that may be material.  None of the Borrower, the Agents, or any of their Affiliates

takes any responsibility for any Lender’s decision to limit the scope of the

information it has obtained in connection with its evaluation of the Borrower

and this Agreement, the Loans and Commitments and the transactions contemplated

hereby.

(c)           The Borrower is not current in its

filings with the United States Securities and Exchange Commission and the

financial information concerning the Borrower and its Subsidiaries is

incomplete and subject to revision and change upon audit, review and

restatement as described in the Confidential Information Memorandum dated May

2003 (the “Confidential Information Memorandum”) and the Confidential

Supplement (relating to non-public information) thereto included in the

Supplemental Information.  Each Lender

(including each Lender becoming a party hereto pursuant to an Assignment and

Assumption Agreement in accordance with Section 10.06(c)) hereby acknowledges

(1) that, as of the Borrowing Date and through the Restatement Date, the

foregoing may remain the case and (2) that, notwithstanding anything to the

contrary contained in this Agreement, it is nonetheless making its evaluation

of the Borrower and this Agreement, the Loans and Commitments and the

transactions contemplated hereby and making its decision to make or acquire

Loans under such circumstances and acknowledges and understands that the previously

disseminated information that is referred to or described as superseded in the

Confidential Information Memorandum or the Confidential Supplement (relating to

non-public information) thereto included in the Supplemental Information with

respect to the Borrower and its Subsidiaries may not be reliable and should not

be relied upon in connection with making a decision to make or acquire Loans

hereunder.

Section 10.13.           Confidentiality.  Each of the Administrative Agent and each

Lender agrees to use its reasonable best efforts to keep confidential any

information delivered or made available by or on behalf of any Qwest Entity to

it (including without limitation any information obtained through any financial

advisor in connection with the transactions contemplated hereby); provided that nothing herein shall prevent

the Administrative Agent or any Lender from disclosing such information (i) to

the Administrative Agent or any other Lender in connection with the

transactions contemplated hereby, (ii) to its officers, directors, employees,

agents, attorneys, creditors and accountants who have a need to know such

information in accordance with customary banking practices and who receive such

information having been made aware of the restrictions set forth in this Section

10.13, (iii) upon the order of any court or administrative

43

 

agency, (iv) upon the

request or demand of any regulatory agency or authority having jurisdiction

over such party, (v) which has been publicly disclosed (by a Person other than

such Administrative Agent or Lender), (vi) which has been obtained from any

Person other than any Qwest Entity, provided

that such Person is not (x) known to it to be bound by a confidentiality

agreement with the Company or its Subsidiaries or any other obligation not to

disclose or (y) known to it to be otherwise prohibited from transmitting the

information to it by a contractual, legal or fiduciary obligation, (vii) in

connection with the exercise of any remedy under the Loan Documents or (viii)

to any actual or proposed participant or assignee of all or any of its rights

hereunder, or to any actual or proposed counterparty to any swap, hedge or

similar account relating to the Loans which, in each case, has agreed in writing

to be bound by the provisions of this Section 10.13.  Notwithstanding the foregoing, the Agents and the Lenders (and

each of their respective employees, representatives and other agents) and the

Borrower may disclose to any and all “persons”, without limitation of any kind,

the “tax treatment” and “tax structure” (in each case, within the meaning of

Treasury Regulation Section 1.6011-4) of the transaction and all materials of

any kind (including opinions or other tax analyses) that are provided relating

to such tax treatment and tax structure; provided,

however, that with respect to any document or similar item that in

either case contains information concerning the tax treatment or tax structure

of the transaction as well as other information, this sentence shall only apply

to such portions of the document or similar item that relate to the tax

treatment or tax structure of the Loans and transactions contemplated hereby.

[Signature

Pages Follow]

 

44

 

IN WITNESS WHEREOF, the

parties hereto have caused this Agreement to be duly executed by their

respective authorized officers as of the day and year first above written.

QWEST CORPORATION, as Borrower

By:           _/s/ Oren G. Shaffer________________

Name:  Oren G. Shaffer

Title: Chief Financial Officer

Addresses for Notices:

Qwest Corporation

1801 California Street

Denver, CO  80202

Attn:  Chief Financial Officer

Fax:  (303) 296-4920

and:

Qwest Corporation

1801 California Street

Denver, CO  80202

Attn:  General Counsel

Fax:  (303) 296-5974

 

 

MERRILL LYNCH, PIERCE, FENNER AND SMITH
                    INCORPORATED,

as

Joint Lead Arranger and Syndication Agent

By:              _/s/ Cecile Baker__________________

Name: Cecile Baker

Title: Vice President

Addresses

for Notices:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Four World Financial Center

c/o Merrill Lynch & Co.

250 Vesey Street

New York, NY 10080

Attn: Anthony Lafaire,

         Director Portfolio

Management Group

Telephone:  (212) 449-5931

Fax:

(212) 449-4877

 

 

CREDIT

SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as

Joint Lead Arranger and Administrative Agent and as Lender

By:                      _/s/ Lauri

Sivaslian_______________

Name:  Lauri Sivaslian

Title:  Managing Director

By:                      _/s/ Doreen

B. Welch_____________

Name:  Doreen B. Welch

Title:  Associate

Address

for Notices:

Credit Suisse First Boston

Eleven Madison Avenue, OMA-8

New York, NY 10010

Attn:  Yvette McQueen

Telephone: (212) 325-9934

Fax:  (212) 325-8304

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Documentation Agent

By:           _/s/ Ryan

A.Zinna__________________

Name:  Ryan A. Zinna

Title:  Managing Director

Address

for Notices:

Deutsche Bank Securities Inc.

31 West 52nd Street

New York, NY 10019

Attn:  Anca Trifan

Telephone: (646) 324-2184

Fax:  (646) 324-7455

 

 

DEUTSCHE BANK SECURITIES INC.,

as Arranger

By:           _/s/ Lawrence

Askowitz_____________

Name:  Lawrence Askowitz

Title:  Managing Director

By:           _/s/ Christopher

Johnson_____________

Name:  Christopher Johnson

Title:  Managing Director

Address

for Notices:

Deutsche Bank Securities Inc.

31 West 52nd Street

New York, NY 10019

Attn:  Julian Rios

Telephone: (646) 324-2108

Fax:  (646) 324-7651

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