Document:

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                                                                    Exhibit 10.1

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                          SECURITIES PURCHASE AGREEMENT

                            dated as of June 5, 2003

                                  by and among

                                  TECORE, INC.

                                       and

                       SCP PRIVATE EQUITY PARTNERS II, LP

                                       and

                        AIRNET COMMUNICATIONS CORPORATION

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                          SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (this "Agreement") is made as of June
5, 2003, by and among TECORE, INC., a Texas corporation ("TECORE"), SCP PRIVATE
EQUITY PARTNERS II, LP, a Delaware limited partnership ("SCP"), and AIRNET
COMMUNICATIONS CORPORATION, a Delaware corporation ("AIRNET"). TECORE and SCP
are sometimes referred to herein collectively as the "INVESTORS," and
individually as an "INVESTOR."

                                    RECITALS
                                    --------

     A. AIRNET desires to issue and sell to INVESTORS and INVESTORS, severally,
desire to subscribe for and purchase from AIRNET, the Notes, as defined in
Section 1 of this Agreement, for the consideration, and on the terms, set forth
in this Agreement.

     B. SCP desires to convert its shares of AIRNET Series B Preferred Stock
into shares of AIRNET Common Stock.

     C. Unless the context otherwise requires, capitalized terms used in this
Agreement or in any schedule or exhibit attached hereto and not otherwise
defined herein shall have the following meanings for all purposes of this
Agreement:

     "Affiliate" means a Person that directly or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with, a
specified Person. For the purposes hereof, the term "control" (including the
terms "controlling," "controlled by" and "under common control with") means the
possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

     "AIRNET" has the meaning set forth in the first paragraph of this
Agreement.

     "AIRNET Amended Certificate" shall mean the Eighth Amended Certificate of
Incorporation of AIRNET, in the form attached hereto as Exhibit A.

     "AIRNET Charter Documents" has the meaning set forth in Section 2.1.

     "AIRNET Closing Deliveries" has the meaning set forth in Section 1.5(b).

     "AIRNET Common Stock" means the Common Stock, par value $.001 per share of
AIRNET.

     "Allonges" means the Allonges to the Bridge Loan Promissory Notes described
in Section 1.1(d).

     "Amended Bonus Program" means the Amended Bonus Program to be adopted by
AIRNET at or before Closing in the attached hereto as Exhibit B.

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     "Amended Stock Option Plan" shall mean the amended Stock Option Plan, in
the form to be agreed upon among AIRNET and the INVESTORS at or before Closing,
which will permit AIRNET to issue stock options to employees for exercise prices
which may be as low as $0.01 per share.

     "Balance Sheet Date" means March 31, 2003.

     "Benefit Plan" means any Plan, existing at the Closing Date or prior
thereto, established or to which contributions have at any time been made by
AIRNET, or any ERISA Affiliate, under which any employee or former employee of
AIRNET, or any beneficiary thereof, is covered, is eligible for coverage or has
benefit rights.

     "Bridge Loan Promissory Notes" means the Bridge Loan Promissory Notes, each
in the principal amount of Three Million Dollars ($3,000,000), issued by AIRNET
to SCP and TECORE, respectively, on or about January 24, 2003.

     "CERCLA" means the Comprehensive Environmental Response, Compensation and
Liability Act of 1980.

     "Closing" means the consummation of the transactions contemplated by this
Agreement on the Closing Date.

     "Closing Date" has the meaning set forth in Section 1.4.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Collateral" shall have the meaning set forth in the Security Agreement.

     "Copyrights" shall have the meaning set forth in the Security Agreement.

     "Environmental Laws" means any and all applicable Laws and Permits issued,
promulgated or entered into by any Governmental Entity relating to the
environment, the protection or preservation of human health or safety, including
the health and safety of employees (other than OSHA), the preservation or
reclamation of natural resources, or the management, release or threatened
release of Hazardous Materials.

     "Environmental Permit" means any permit, approval, identification number,
license or other authorization required under or issued pursuant to any
applicable Environmental Law.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" means any Person who is, or at any time was, a member of
a controlled group (within the meaning of Section 412(n)(6) of the Code) that
includes, or at any time included, AIRNET or any predecessor of AIRNET.

     "Expiration Date" has the meaning set forth in Section 2.

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     "First Amendment to Security Agreement" shall mean the amendment to that
certain Security Agreement dated January 24, 2003, by and among AIRNET, TECORE
and SCP, in the form attached hereto as Exhibit C.

     "First Amendment to Registration Rights Agreement" shall mean the amendment
(or other appropriate documentation) to that certain Second Amended and Restated
Agreement Among Series E, Series F and Series G Preferred Stockholders and
Senior Registration Rights Agreement, dated September 7, 1999 as amended through
May 16, 2001, by and among AIRNET, SCP and others, in the form to be agreed upon
among the parties at or before Closing.

     "GAAP" means generally accepted accounting principles of the United States.

     "Governmental Authority" means any governmental, regulatory or
administrative body, agency, subdivision or authority, any court or judicial
authority, or any public, private or industry regulatory authority, whether
national, federal, state, local or otherwise.

     "Hazardous Materials" means those materials, substances or wastes that are
regulated by, or form the basis of liability under, any Environmental Law,
including PCBs, pollutants, solid wastes, explosive or regulated radioactive
materials or substances, wastes or chemicals, petroleum (including crude oil or
any fraction thereof) or petroleum distillates, asbestos or asbestos containing
materials, materials listed in 49 C.F.R. Section 172.101 and materials defined
as hazardous substances pursuant to Section 101(14) of CERCLA.

     "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended (15 U.S.C. Section 18a) and the rules and regulations promulgated
thereunder.

     "Indebtedness" means indebtedness for borrowed money, other than trade debt
incurred in the ordinary course of AIRNET's business.

     "Intellectual Property" has the meaning set forth in the Security
Agreement.

     "INVESTORS" has the meaning set forth in the first paragraph of this
Agreement.

     "Knowledge," "knowledge," "the best knowledge of," "known to" or words of
similar import used herein with respect to AIRNET shall mean the actual
knowledge of a director or officer of AIRNET of a particular fact or
circumstance or such knowledge as may be reasonably imputed to such person as a
result of his actual knowledge of other facts or circumstances.

     "Laws" has the meaning set forth in Section 2.18.

     "Lien" means any mortgage, charge, pledge, hypothecation, security
interest, assignment, lien (Statutory Lien or otherwise), title retention
agreement or arrangement, restrictive covenant or other encumbrance of any
nature or any other arrangement or condition which, in substance, secures
payment or performance of an obligation.

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     "Marks" shall have the meaning set forth in the Security Agreement.

     "Material Adverse Effect" means, with respect to any Person, any event or
occurrence which has a material adverse effect on (i) such Person's business,
condition (financial or other), properties, business prospects or financial
results, including, but not limited to, any event or occurrence which has an
adverse effect on the assets, liabilities, revenues, or financial performance of
such Person that could exceed an amount equal to seven percent (7%) of such
Person's gross revenues for the twelve (12) month period ended December 31,
2002, or (ii) such Person's ability to perform its obligations under this
Agreement, the Senior Secured Convertible Notes, the Security Agreement and the
First Amendment to the Security Agreement, the First Amendment to the
Registration Rights Agreement, and the Subordination Agreements.

     "Material Contract" means any lease, instrument, agreement, license or
permit set forth on Schedule 2.9, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16 or 2.21 or
any other material agreement to which AIRNET is a party or by which its
properties are bound.

     "NASDAQ" shall mean the National Association of Securities Dealers
Automated Quotations Stock Market, Inc.

     "Notes" or "Senior Secured Convertible Notes" means the Senior Secured
Convertible Notes to be issued by AIRNET to the INVESTORS, in the forms attached
hereto as Exhibits D and E.

     "Patents" shall have the meaning set forth in the Security Agreement.

     "PBGC" means the Pension Benefit Guaranty Corporation.

     "Person" means any natural person, corporation, partnership,
proprietorship, other business organization, trust, union, association or
Governmental Authority.

     "Plan" means any bonus, incentive compensation, deferred compensation,
pension, profit sharing, retirement, stock purchase, stock option, stock
ownership, stock appreciation rights, phantom stock, leave of absence, layoff,
vacation, day or dependent care, legal services, cafeteria, life, health,
accident, disability, workmen's compensation or other insurance, severance,
separation or other employee benefit plan, practice, policy or arrangement of
any kind, whether written or oral, or whether for the benefit of a single
individual or more than one individual including, but not limited to, any
"employee benefit plan" within the meaning of Section 3(3) of ERISA.

     "Proprietary Rights" shall mean all categories of ideas, trade secrets,
know-how, inventions (whether or not patentable and whether or not reduced to
practice), improvements, processes, procedures, drawings, specifications,
designs, plans, proposals, technical data, copyrightable works, financial,
marketing, and business data, pricing and cost information, business and
marketing plans, customer and supplier lists and information, other confidential
and proprietary information, manufacturing and production processes and
techniques, molds, dies, casts and product configurations, to the extent to
which the foregoing are non-public and subject to commercially reasonable
efforts to maintain their confidential status.

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     "Returns" has the meaning set forth at the end of Section 2.19.

     "SCP Closing Deliveries" shall have the meaning set forth in Section
1.5(d).

     "Schedule" means each Schedule attached hereto, which shall reference the
relevant sections of this Agreement, on which parties hereto disclose
information as part of their respective representations, warranties and
covenants.

     "SEC" means the United States Securities and Exchange Commission.

     "Security Agreement" means that certain Security Agreement dated January
24, 2003 by and among AIRNET, SCP and TECORE.

     "Statutory Liens" has the meaning set forth in Section 5.3(e).

     "Stock Option Plan" is AIRNET's equity incentive Plan authorizing the
issuance of up to 30,742,986 shares of Common Stock to its employees,
consultants and directors.

     "Subordination Agreement" shall mean the Subordination Agreement to be
entered into by and among AIRNET, Force Computers, Inc., Sanmina Corporation,
and Brooktrout, Inc., in the form attached hereto as Exhibit F or such other
form as shall be acceptable to the INVESTORS.

     "Tag Along Allocation Agreement" shall mean the Tag Along Allocation
Agreement in the form attached hereto as Exhibit G.

     "Tax" or "Taxes" has the meaning set forth at the end of Section 2.19.

     "Taxing Authority" has the meaning set forth at the end of Section 2.19.

     "TECORE Closing Deliveries" has the meaning set forth in Section 1.5(c).

     "Third Person" has the meaning set forth in Section 11.3.

     "Voting Agreement" shall mean that certain Voting Agreement to be executed
at Closing by TECORE and SCP in form and content to be agreed upon by TECORE and
SCP at or before Closing.

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

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

     C. The Recitals set forth hereinabove constitute an integral part of this
Agreement.

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     NOW, THEREFORE, in consideration of the premises and of the mutual
agreements, representations, warranties, provisions and covenants herein
contained, the parties hereto, intending to be legally bound, hereby agree as
follows:

1.   ISSUANCE AND SALE OF AIRNET NOTES AND STOCK

     1.1   Notes. Subject to the terms and conditions of this Agreement, at the
Closing, AIRNET will issue and sell to each of the INVESTORS one (1) Senior
Secured Convertible Note (a "Note"), and each INVESTOR will subscribe for and
purchase one (1) such Note from AIRNET. The Note to be issued to SCP will be in
the form of Exhibit D. The Note to be issued to TECORE will be in the form of
Exhibit E.

           (a) Purchase Price for SCP's Note. The purchase price (the "SCP Note
Purchase Price") for the Note to be issued to SCP in the form of Exhibit D will
be equal to Four Million Dollars ($4,000,000). SCP shall pay the SCP Note
Purchase Price, subject to adjustment in accordance with Section 13.6, by (i)
issuing a credit memorandum to AIRNET pursuant to which the outstanding
principal balance payable to SCP under the terms of that certain Bridge Loan
Promissory Note payable to SCP shall be deemed satisfied and paid in full (but
the accrued interest thereon shall be deferred, as provided in subsection (d)
hereinbelow), and (ii) paying the unpaid balance of the SCP Note Purchase Price
by certified check, cashier's check, or wire transfer at Closing.

           (b) Purchase Price for TECORE's Note. The purchase price (the "TECORE
Note Purchase Price") for the Note to be issued to TECORE in the form of Exhibit
E will be equal to Twelve Million Dollars ($12,000,000). TECORE shall pay the
TECORE Note Purchase Price in accordance with the payment schedule set forth
below:

               (i)     An amount equal to Four Million Dollars ($4,000,000)
shall be payable by TECORE at Closing by (i) issuing a credit memorandum to
AIRNET pursuant to which the outstanding principal balance payable to TECORE
under the terms of that certain Bridge Loan Promissory Note payable to TECORE,
shall be deemed satisfied and paid in full (but the accrued interest thereon
shall be deferred as provided in subsection (d) hereinbelow), and (ii) paying
the unpaid balance of the $4,000,000, subject to adjustment in accordance with
Section 13.6, by certified check, cashier's check, or wire transfer at Closing.

               (ii)    An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to June 30, 2003, by wire transfer.

               (iii)   An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to September 30, 2003, by wire transfer.

               (iv)    An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to December 31, 2003, by wire transfer.

               (v)     An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to March 31, 2004, by wire transfer.

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               (vi)    An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to June 30, 2004, by wire transfer.

               (vii)   An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to September 30, 2004, by wire transfer.

               (viii)  An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to December 31, 2004, by wire transfer.

               (ix)    An amount equal to One Million Dollars ($1,000,000) shall
be payable on or prior to March 30, 2005, by wire transfer.

               (x)     Notwithstanding the foregoing, TECORE shall have the
right, exercisable at its option at any time and from time to time, to prepay
any and all of the payments scheduled above; and, as a consequence thereof, to
enjoy the rights to vote and to the accrual of interest, conversion rights, and
other rights pertaining thereto, accounting from the date of any such
prepayment.

In the event that TECORE shall fail to pay any installment of the purchase price
of TECORE's Note pursuant to paragraphs (ii)-(ix) within 20 days after the due
date, then SCP shall have the right, exercisable within 40 days after such due
date, to make the investment by paying the amount of the installment then past
due (and any subsequent installments when due and payable, to the extent set
forth by SCP in its notice of exercise) instead of TECORE, and AIRNET shall
issue a Note to SCP, in form similar to the Note issued to SCP at the Closing,
in the principal amount of the investment made by SCP. In the event that SCP
shall not exercise its right to make an investment instead of TECORE, TECORE
shall remain obligated to make the investment(s).

           (c) Security for Payment of Notes. AIRNET's obligations under the
Notes shall be secured by a first lien security interest in favor of the
INVESTORS, which shall be evidenced by, and perfected pursuant to, the Security
Agreement, which shall be amended at Closing by the execution and delivery of
the First Amendment to Security Agreement.

           (d) Extension of the Date and Deferral of Accrued Interest on Bridge
Loan Promissory Notes. Each of the INVESTORS hereby agrees that, notwithstanding
the provisions of the Bridge Loan Promissory Notes (i) the Maturity Date of each
such Note shall be extended to the first to occur of (A) the Closing Date, (B)
the date of the termination of this Agreement pursuant to Article 12, or (C)
July 31, 2003, and (ii) all interest that has accrued between January 24, 2003
and the Closing Date under the terms of the Bridge Loan Promissory Notes shall
be deferred and shall be payable on the due date of the Senior Secured
Convertible Notes. Said interest shall compound at the rate of twelve percent
(12%) per annum, with simple interest, accounting from and after the Closing
Date. Allonges to the Bridge Loan Promissory Notes shall be executed at Closing,
reflecting the deferral of interest, as herein provided.

     1.2   AIRNET Common Stock. Subject to the terms and conditions of this
Agreement, at the Closing: (i) SCP shall surrender for conversion to AIRNET all
of SCP's shares of AIRNET Series B Preferred Stock, consisting of 318,471
shares, and as a result of the conversion, shall be issued 6,369,427 shares of
AIRNET Common Stock, and (ii) AIRNET shall issue to SCP 4,625,347 shares of
AIRNET

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Common Stock, which SCP agrees to accept in lieu of $500,000 to which SCP is
entitled as a result of the conversion of its shares of Series B Preferred
Stock.

     1.3   Character of Notes and Common Stock. AIRNET, SCP and TECORE, having
adverse interests and as a result of arm's length bargaining, agree that (i)
except as set forth in this Agreement, neither SCP nor TECORE has rendered, or
agreed to render, any services or other consideration to AIRNET in connection
with this Agreement or the issuance of the Notes; (ii) the Notes, when issued,
shall be deemed to have been issued solely for the consideration set forth in
Section 1.1; (iii) SCP has not rendered, or agree to render, any services or
other consideration to AIRNET in connection with the issuance of the AIRNET
Common Stock to SCP pursuant to Section 1.2; and (iv) the AIRNET Common Stock,
when issued pursuant to Section 1.2, shall be deemed to have been issued solely
for the consideration set forth in Section 1.2. SCP, AIRNET and TECORE agree
that the aggregate fair market value of the Notes is equal to the consideration
exchanged therefor pursuant to Section 1.1. The parties agree not to take any
action that is inconsistent with such agreed value, and, without limitation,
agree to file all tax returns and reports consistent with such value.

     1.4   Closing. SCP, TECORE and AIRNET will use their best efforts to close
the purchase and sale of the Notes (the "Closing") provided for in this
Agreement on or before June 30, 2003, provided the Closing will be extended as
necessary for AIRNET to obtain regulatory and stockholder approvals and the
Closing may otherwise be extended to such other date as the parties shall
mutually determine, but in no event later than July 31, 2003, unless all parties
shall agree to a further extension (the "Closing Date"). Closing shall be held
at Whiteford, Taylor & Preston L.L.P., 7 St. Paul Street, Baltimore, Maryland
21202.

     1.5   Closing Obligations. At the Closing, or on the Closing Date, as
applicable:

           (a) AIRNET shall file, or cause to be filed, with the Secretary of
State of Delaware the AIRNET Amended Certificate.

           (b) AIRNET shall deliver or cause to be delivered to INVESTORS the
following: ("AIRNET Closing Deliveries"):

               (i)     Certified copies of resolutions of the Board of Directors
and stockholders of AIRNET, advising, approving and adopting the AIRNET Amended
Certificate, and, in the case of the resolutions of the Board of Directors of
AIRNET, (A) authorizing the issuance to SCP of the Note in the form of Exhibit
D, (B) authorizing the issuance to TECORE of the Note in the form of Exhibit E,
(C) authorizing the issuance to SCP of 6,369,427 shares of AIRNET Common Stock
upon the surrender by SCP of its 318,471 shares of Series B Preferred Stock, (D)
authorizing the issuance to SCP of 4,625,347 shares of AIRNET Common Stock in
lieu of $500,000 to which SCP is entitled as a result of its conversion of its
shares of Series B Preferred Stock, and (E) authorizing and/or approving the
execution of such other documents or instruments, and the performance of such
other acts as may be reasonably requested by TECORE and/or SCP for the purpose
of carrying out and perfecting the transactions contemplated by this Agreement.

               (ii)    Certificates representing the AIRNET Common Stock, duly
issued to SCP, as contemplated in Section 1.2;

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               (iii)   An employment agreement (the "Employment Agreement") in
the form of Exhibit 1.5(b)(iii) executed by Mr. Glenn Ehley;

               (iv)    The Allonges to the Bridge Loan Promissory Notes, duly
executed by AIRNET;

               (v)     The Notes, duly executed by AIRNET;

               (vi)    The First Amendment to Security Agreement, duly executed
by AIRNET;

               (vii)   A certificate executed by AIRNET to the effect that (A)
except as otherwise stated in such certificate, AIRNET's representations and
warranties in this Agreement were accurate in all respects as of the date of
this Agreement and are accurate in all respects as of the Closing Date as if
made on the Closing Date; (B) AIRNET has performed and complied with all
covenants and conditions required to be performed or complied with by AIRNET
prior to or at the Closing; and attesting to the incumbency of officers
executing documents on behalf of AIRNET;

               (viii)  A Good Standing Certificate of AIRNET as of a recent date
from the Secretary of State of Delaware and similar certificates from all states
in which AIRNET is authorized to do business;

               (ix)    Documentation, in form and content satisfactory to
INVESTORS, duly executed by all holders of Series B Preferred Stock of AIRNET
(including SCP), converting their Series B Preferred Stock into shares of AIRNET
Common Stock, and releasing, waiving and relinquishing all claims or rights in
and to any accrued but unpaid dividends with respect to the Series B Preferred
Stock;

               (x)     The Amended Bonus Program modifying and amending that
certain Amended and Restated AirNet Bonus Program, dated and effective August
12, 2002, together with the Tag Along Allocation Agreement, duly executed by
AIRNET;

               (xi)    The First Amendment to the Registration Rights Agreement,
duly executed by AIRNET, which contains reference to the shares of Common Stock
to be issued to TECORE at Closing, shares of AIRNET Common Stock underlying the
Notes, shares of Common Stock to be issued to SCP at Closing, and shares of
Common Stock to be issued to other Series B Preferred Stockholders at Closing
upon the conversion of their Series B Preferred Stock;

               (xii)   A certified copy of the Amendment to the Stock Option
Plan, which increases the number of shares that may be issued under the Stock
Option Plan to up to 30,742,986 shares, subject to certain conditions set forth
therein; and

               (xiii)  A duly executed Subordination Agreement from Force
Computers, Inc., Sanmina Corporation, and Brooktrout, Inc. (the "Junior Secured
Creditors"), pursuant to which the Junior Secured Creditors will subordinate
their existing liens on AIRNET's assets to the lien and security interest of
INVESTORS.

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           (c) TECORE shall deliver or cause to be delivered the following
("TECORE Closing Deliveries"):

               (i)     To AIRNET and SCP, a certificate executed by TECORE to
the effect that (A) except as otherwise stated in such certificate, TECORE's
representations and warranties in this Agreement were accurate in all material
respects as of the date of this Agreement and are accurate in all material
respects as of the Closing Date as if made on the Closing Date; (B) TECORE has
performed and complied with all covenants and conditions required to be
performed or complied with by it prior to or at the Closing; (C) attesting to
the incumbency of officers executing documents on behalf of TECORE;

               (ii)    To AIRNET, the portion of the Note Purchase Price
described in Section 1.1(b)(i);

               (iii)   To AIRNET and SCP, good standing certificates for TECORE
from the State of Texas and the State of Maryland;

               (iv)    To AIRNET, TECORE's credit memorandum acknowledging
satisfaction of the outstanding principal balance of the Bridge Loan Promissory
Note payable to TECORE, and TECORE's countersignature on the Allonge to its
Bridge Loan Promissory Note;

               (v)     To SCP, TECORE's executed counterpart to the Voting
Agreement; and

               (vi)    To AIRNET and SCP, TECORE's executed counterpart of the
Tag Along Allocation Agreement.

           (d) SCP shall deliver or cause to be delivered the following ("SCP
Closing Deliveries"):

               (i)     To AIRNET and TECORE, a certificate executed by SCP to
the effect that (A) except as otherwise stated in such certificate, SCP's
representations and warranties in this Agreement were accurate in all material
respects as of the date of this Agreement and are accurate in all material
respects as of the Closing Date as if made on the Closing Date; (B) SCP has
performed and complied with all covenants and conditions required to be
performed or complied with by it prior to or at the Closing; (C) attesting to
the incumbency of officers executing documents on behalf of SCP;

               (ii)    To AIRNET, the portion of the Note Purchase Price
described in Section 1.1(a)(i);

               (iii)   To AIRNET, certificates for 318,471 shares of AIRNET
Series B Preferred Stock, duly endorsed for transfer;

               (iv)    To AIRNET and TECORE, a good standing certificate for SCP
from the State of Delaware;

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               (v)     To AIRNET, that certain Common Stock Purchase Warrant,
dated May 15, 2001, issued by AIRNET to SCP Private Equity Partners, LP, for
955,414 shares, which shall be duly endorsed for cancellation by SCP

               (vi)    To AIRNET, SCP's credit memorandum acknowledging
satisfaction of the outstanding principal balance of the Bridge Loan Promissory
Note payable to SCP, and SCP's countersignature on the Allonge to its Bridge
Loan Promissory Note; and

               (vii)   To TECORE, SCP's executed counterpart of the Voting
Agreement; and

               (viii)  To TECORE and AIRNET, SCP's executed counterpart of the
Tag Along Allocation Agreement.

           (e) INVESTORS on the one hand, and AIRNET on the other hand, shall
also deliver such other documents, instruments, certificates, and opinions as
may be required by this Agreement or as otherwise necessary to consummate the
transactions contemplated hereby.

2.   REPRESENTATIONS AND WARRANTIES OF AIRNET

     AIRNET represents and warrants to INVESTORS that all of the following
representations and warranties in this Section 2 are true and correct at the
date of this Agreement and shall be true and correct at the time of the Closing
Date. It is understood and agreed that such representations and warranties shall
survive the Closing Date for a period of eighteen (18) months (the last day of
such period being the "Expiration Date").

     2.1   Due Organization. AIRNET is a corporation duly incorporated, validly
existing and in good standing under the laws of its state of its incorporation,
and is duly authorized and qualified to do business under all applicable laws,
regulations, ordinances and orders of public authorities to carry on its
business in the places and in the manner as now conducted, to own or hold under
lease the properties and assets it now owns or holds under lease, and to perform
all of its obligations under the Material Contracts; AIRNET is duly qualified to
do business in the jurisdictions listed in Schedule 2.1 and there are no other
jurisdictions in which the conduct of AIRNET's business or activities or its
ownership of assets requires any other qualification under applicable law. True,
complete and correct copies of the Certificate of Incorporation and By-laws,
each as amended, of AIRNET (the "Charter Documents") will be delivered to
INVESTORS pursuant to Section 6.4 hereof. The minute books and stock records of
AIRNET, as heretofore made available to INVESTORS, are correct and complete in
all material respects.

     2.2   Authorization. AIRNET has the authority to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement constitutes
the valid and binding obligation of AIRNET, enforceable in accordance with its
terms.

     2.3   Capital Stock of AIRNET.

           (a) The authorized capital stock of AIRNET is as set forth in
Schedule 2.3. All of the issued and outstanding shares of capital stock of
AIRNET are owned as set forth in Schedule 2.3. All of

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the issued and outstanding shares of capital stock of AIRNET have been duly
authorized and validly issued, are fully paid and nonassessable, are owned of
record and beneficially by the stockholders set forth in Schedule 2.3, and were
offered, issued, sold and delivered by AIRNET in compliance with all applicable
state and federal laws concerning the issuance of securities. None of such
shares were issued in violation of the preemptive rights, or other rights, of
any past or present stockholders, option holders, creditors or other Persons.

           (b) AIRNET has never issued any shares of its Series A Junior
Participating Preferred Stock, nor has AIRNET issued or entered into any option,
warrant or other agreement or arrangement, concerning the future issuance of any
shares of Series A Junior Participating Preferred Stock.

     2.4   Capital Structure of AIRNET. Except as set forth on Schedule 2.4: (i)
no option, warrant, call, conversion right or commitment of any kind exists
which obligates AIRNET to issue any of its authorized but unissued capital stock
or its treasury stock; and (ii) AIRNET has no obligation (contingent or
otherwise) to purchase, redeem or otherwise acquire any of its equity securities
or any interests therein or to pay any dividend or make any distribution in
respect thereof. Schedule 2.4 includes a complete listing of all stock option or
stock purchase plans, including a list of all outstanding options, warrants or
other rights to acquire shares of AIRNET capital stock and a description of the
material terms of such outstanding options, warrants or other rights, true,
correct and complete copies of which have been supplied to INVESTORS.

     2.5   Other Interests. Except as set forth on Schedule 2.5, AIRNET does not
presently own, of record or beneficially, or control, directly or indirectly,
any capital stock, securities convertible into capital stock or any other equity
interest in any corporation, association or business entity nor is AIRNET,
directly or indirectly, a participant in any joint venture, partnership or other
non-corporate entity.

     2.6   Financial Statements. AIRNET has delivered to each of INVESTORS
copies of the following financial statements: Balance Sheets, Income Statements
and Statements of Cash Flow, at and for (A) each of the years ended December 31,
2002, 2001, and 2000 which have been audited and certified by Deloitte & Touche,
and (B) and the three (3) month period ended March 31, 2003, prepared internally
by AIRNET. (All of such financial statements collectively are referred to as the
"Financial Statements".) Each of the Financial Statements is consistent with the
books and records of AIRNET (which, in turn, are accurate and complete in all
material respects) and fairly presents AIRNET's financial condition, assets and
liabilities as of their respective dates and the results of operations and cash
flows for the periods related thereto in compliance with GAAP, consistently
applied among the periods which are the subject of the Financial Statements
(except as stated in the Financial Statements or in the footnotes thereto).

     2.7   Liabilities and Obligations. AIRNET has delivered to each of
INVESTORS an accurate list (which is set forth on Schedule 2.7) as of the
Balance Sheet Date of (i) all liabilities of AIRNET in excess of $10,000 which
are not reflected in the AIRNET Financial Statements at the Balance Sheet Date,
and (ii) all loan agreements, indemnity or guaranty agreements, bonds,
mortgages, liens, pledges or other security agreements to which AIRNET is a
party. Except as set forth on Schedule 2.7, since the Balance Sheet Date, AIRNET
has not incurred any material liabilities of any kind, character and
description, whether accrued, absolute, secured or unsecured, contingent or
otherwise, other than liabilities incurred in

                                       12

<PAGE>

the ordinary course of business. AIRNET has also set forth on Schedule 2.7, in
the case of those contingent liabilities related to pending or threatened
litigation, or other liabilities which are not fixed or are being contested, the
following information:

           (a) a summary description of the liability, together with: (i) copies
of all relevant documentation relating thereto; (ii) amounts claimed and any
other action or relief sought; and (iii) name of claimant and all other parties
to the claim, suit or proceeding;

           (b) the name of each court or agency before which such claim, suit or
proceeding is pending;

           (c) the date such claim, suit or proceeding was instituted; and

           (d) a good faith and reasonable estimate of the maximum amount, if
any, which is likely to become payable with respect to each such liability. If
no estimate is provided, the estimate shall for purposes of this Agreement be
deemed to be zero.

     2.8   Accounts and Notes Receivable. AIRNET has delivered to each of
INVESTORS an accurate list (which is set forth on Schedule 2.8) of the accounts
and notes receivable of AIRNET as of the Balance Sheet Date, including any such
amounts which are not reflected in the Financial Statements as of the Balance
Sheet Date, and including receivables from and advances to employees of AIRNET.
Except to the extent reflected on Schedule 2.8 the accounts, notes and other
receivables shown on Schedule 2.8 are and shall be, and AIRNET have no reason to
believe that any such receivable is not or shall not be, collectible in the
amounts shown (in the case of the accounts and notes receivable set forth on
Schedule 2.8, net of reserves reflected in the balance sheet calculated
consistent with the reserves as of the Balance Sheet Date).

     2.9   Intellectual Property; Permits and Intangibles.

           (a) AIRNET has delivered to each of INVESTORS an accurate list (which
is set forth on Schedule 2.9(a)) of all Intellectual Property. Without limiting
the generality of the foregoing, Schedule 2.9(a) includes the following with
respect to all Patents, Copyrights and Marks that are Intellectual Property: (A)
a complete and accurate list of all such Patents, Copyrights and Marks, (B) an
accurate description by country, type or category, and indication of status
(namely, for Patents whether each is unfiled, filed and pending, or issued, and
all dates of maintenance fees paid, if applicable; for Copyrights and Marks,
whether each is completed or in process, registered or unregistered, and all
renewal dates, if applicable), and (C) the name of the owner or licensor and
each licensee and sub-licensee of each Patent, Copyright and Mark. Except as
otherwise indicated in Schedule 2.9(a), no information exists indicating that
any of such Patents, Copyrights or Marks is invalid or has expired.

           (b) AIRNET owns or holds the right to use all the Intellectual
Property necessary to provide, produce, sell and license the services and
products currently provided, produced, sold and licensed by AIRNET, and to
conduct AIRNET's business as presently conducted, and to satisfy and perform the
existing contracts, commitments, arrangements and understandings with customers
of AIRNET.

                                       13

<PAGE>

           (c) Except as set forth on Schedule 2.9(c), AIRNET is the sole record
and beneficial owner of, and holds all right, title and interest in, each item
of Intellectual Property, free and clear of all Liens and any obligation to pay
any license, royalty or other compensation to any Person or to obtain any
approval or consent for use of any of the Intellectual Property, and AIRNET has
the right to freely convey and assign such Intellectual Property in AIRNET's own
name and, including the right to create derivatives. Except as set forth on
Schedule 2.9(c), each item of Intellectual Property which is licensed,
sublicensed, distributed or otherwise used by AIRNET is licensed by AIRNET from
the appropriate third party pursuant to the terms of a written license agreement
which is valid and in full force and effect.

           (d) None of the Intellectual Property owned by AIRNET, and to
AIRNET's Knowledge none of the Intellectual Property licensed, sublicensed,
distributed or otherwise used by AIRNET nor any product or service offered for
sale, sold, leased, licensed, sublicensed or otherwise distributed or provided
by AIRNET, or any other conduct of AIRNET, infringes upon, misappropriates or
otherwise violates any intellectual property rights of any other Person, and to
AIRNET's Knowledge, no Intellectual Property owned by AIRNET or exclusively
licensed by AIRNET from a third Person is infringed upon, misappropriated or
otherwise violated by any other entity. Except as set forth on Schedule 2.9(d),
AIRNET has not received any charge, complaint, claim, demand, or notice alleging
that any item of Intellectual Property owned, licensed, sublicensed, distributed
or otherwise used by AIRNET nor any product or service offered for sale, sold,
leased, licensed, sublicensed or otherwise distributed or provided by AIRNET, or
any other conduct of AIRNET, infringes upon, misappropriates or otherwise
violates any intellectual property rights of any other Person.

           (e) No Intellectual Property owned by AIRNET and, to AIRNET's
Knowledge, no product, process or service practiced, offered, licensed or sold
or under development by AIRNET, infringes or otherwise violates any right of
publicity or right of privacy of any Person, or would, except as set forth on
Schedule 2.9(e), give rise to an obligation to render an accounting to any
Person as a result of co-authorship, co-invention or an express or implied
contract for any use or transfer.

           (f) No breach or default (or event which with notice or lapse of time
or both would result in a breach or default) by AIRNET exists or has occurred
under any licenses or other contracts by which AIRNET has received from a Person
a license, lease or other grant of any interest or rights to any Intellectual
Property.

           (g) No current or former employees, principals, investors or
independent contractors of AIRNET have any claims or rights to any of the
Intellectual Property. All personnel (including employees, agents, consultants
and contractors) who have contributed to or participated in the conception
and/or development of the Intellectual Property on behalf of AIRNET have
executed nondisclosure agreements substantially in the form set forth in
Schedule 2.9(g) and either (A) have been a party to a "work-for-hire" and/or
other arrangement or agreements with AIRNET in accordance with applicable law
that has accorded AIRNET full, effective, exclusive and original ownership of
all tangible and intangible property and Intellectual Property rights thereby
arising or relating thereto, or (B) have executed appropriate instruments of
assignment in favor of AIRNET as assignee that have irrevocably conveyed to
AIRNET effective and exclusive ownership of all tangible and intangible property
rights thereby arising and related thereto.

                                       14

<PAGE>

           (h) To AIRNET's knowledge, the Proprietary Rights included in the
Intellectual Property (A) have at all times been maintained in strict
confidence, (B) have been disclosed by AIRNET only to employees, directors,
board observers, and consultants who work with directors or observers
representing stockholders of AIRNET who have a "need to know" the contents
thereof in connection with the performance of their duties to AIRNET or to such
stockholders and who have executed nondisclosure agreements or were subject to
nondisclosure obligations, and (C) have not been disclosed to any third party,
except those third parties specifically identified in Schedule 2.9(h) on a
"need-to-know" basis who have executed nondisclosure agreements with AIRNET.
Neither AIRNET nor any other third party has taken any action nor, to the
Knowledge of AIRNET failed to take any action that directly or indirectly caused
any of such Proprietary Rights to enter the public domain or in any way
adversely affect its value to AIRNET or its ownership thereof.

           (i) Except as specifically provided in Schedules 2.9(a) or 2.9(c),
the transactions contemplated by this Agreement will not (i) to AIRNET's
Knowledge, result in the infringement, misappropriation or other violation by
AIRNET of any intellectual property rights of any other Person, (ii) infringe,
misappropriate or otherwise violate any intellectual property rights listed on
Schedule 2.9(j), (iii) alter or impair any of AIRNET's rights in any
Intellectual Property, or (iv) result in a default under or a breach or
violation of, or adversely affect the rights and benefits afforded to AIRNET by,
any license, sublicense, nondisclosure agreement or other agreement or
instrument relating to the Intellectual Property, or any licenses, franchises,
permits or government authorizations listed on Schedule 2.9(b). Except with
respect to any Intellectual Property identified on Schedule 2.9(a) as having
been "abandoned", AIRNET has taken all necessary and desirable action to
maintain and protect each item of Intellectual Property set forth on Schedule
2.9(a).

           (j) AIRNET holds all licenses, franchises, permits and other
governmental authorizations, including (without limitation) all export and FCC
licenses, which are required for the conduct of any aspect of AIRNET's business,
as presently conducted and as conducted at any time since January 1, 1999.
AIRNET has delivered to each of INVESTORS an accurate list and description
(which is set forth on Schedule 2.9(j)) of all such licenses, franchises,
permits and other governmental authorizations, including permits, titles,
licenses, franchises and certificates. The licenses, franchises, permits and
other governmental authorizations listed on Schedule 2.9(j) are valid and
current, and AIRNET has not received any notice that any Governmental Authority
intends to cancel, terminate or not renew any such license, franchise, permit or
other governmental authorization. AIRNET has conducted and is conducting its
business in compliance with the requirements, standards, criteria and conditions
set forth in the licenses, franchises, permits and other governmental
authorizations listed on Schedule 2.9(j), and all laws and regulations
applicable thereto, and is not in violation of any of the foregoing. Except as
set forth on Schedule 2.9(j), the consummation of the transactions contemplated
hereunder will not alter or impair or require changes to any such license,
franchise, permit or other governmental authorization.

     2.10  Environmental Matters. To AIRNET's Knowledge, AIRNET is, and its
operations and activities are, and have at all times been, in compliance in all
material respects with all applicable Environmental Laws and all Environmental
Permits. To AIRNET's Knowledge, all past noncompliance of AIRNET with
Environmental Laws or Environmental Permits (if any) has been completely
resolved without any pending, ongoing or future obligation, cost or liability.
To AIRNET's Knowledge, AIRNET has not

                                       15

<PAGE>

released a Hazardous Material at, or transported a Hazardous Material to or
from, any real property currently or formerly owned, leased or occupied by
AIRNET in amounts that violate, or would require remediation under, any
Environmental Law. To AIRNET's Knowledge, AIRNET has not received any notice,
demand, suit or information request pursuant to any Environmental Law, and has
no reason to believe any such notice, demand, suit or information request will
be forthcoming. To AIRNET's Knowledge, no property to which AIRNET or any Person
on behalf of AIRNET sent waste is listed on any regulatory list of contaminated
properties, including but not limited to the National Priorities List
promulgated pursuant to CERCLA, the Comprehensive Environmental Response,
Compensation and Liability Information System or CERCLIS or any federal, state
or local counterpart.

     2.11  Personal Property. AIRNET has delivered to each of INVESTORS an
accurate list (which is set forth on Schedule 2.11) of (a) all personal property
with a net book market value individually in excess of $50,000 which is included
(or that will be included) in "depreciable plant, property and equipment" (or
similarly named line item) on the balance sheet of AIRNET as of the Balance
Sheet Date, (b) all other personal property owned by AIRNET with a value
individually in excess of $50,000 (i) as of the Balance Sheet Date and (ii)
acquired since the Balance Sheet Date and (c) all leases and agreements in
respect of personal property with a value individually in excess of $50,000,
including, in the case of each of (a), (b) and (c), (1) true, complete and
correct copies of all such leases which have been provided to each of INVESTORS'
respective legal counsel and (2) a listing of the capital costs of all such
assets which are subject to capital leases. Except as set forth on Schedule
2.11, (i) all personal property with a value individually in excess of $50,000
used by AIRNET in its business is either owned by AIRNET or leased by AIRNET
pursuant to a lease included on Schedule 2.11, (ii) all of the personal property
listed on Schedule 2.11 is in good working order and condition, ordinary wear
and tear excepted, and (iii) all leases and agreements included on Schedule 2.11
are in full force and effect and constitute valid and binding agreements of
AIRNET, and to AIRNET's Knowledge, of the other parties (and their successors)
thereto in accordance with their respective terms.

     2.12  Significant Customers; Material Contracts and Commitments. AIRNET has
delivered to each of INVESTORS an accurate list (which is set forth on Schedule
2.12) of all significant customers, it being understood and agreed that a
"significant customer," for purposes of this Section 2.12, means a customer (or
Person or entity) representing 5% or more of AIRNET's annual revenues as of the
Balance Sheet Date. Except to the extent set forth on Schedule 2.12, none of
AIRNET's significant customers has canceled or substantially reduced or, to the
knowledge of AIRNET, is currently attempting or threatening to cancel, a
contract or substantially reduce utilization of the services provided by AIRNET.
Schedule 2.12 also contains a list of all significant suppliers of AIRNET, it
being understood and agreed that a "significant supplier," for purposes of this
Section 2.12, means a supplier that provides materials, products, or
Intellectual Property to AIRNET that are essential to the production,
manufacture, assembly, sale, or distribution by AIRNET of any products, goods or
services sold or performed by AIRNET in the ordinary course of its business.

     Except as listed or described on Schedule 2.12, as of or on the date
hereof, AIRNET is not a party to or bound by, nor do there exist any, contracts
relating to or in any way affecting the operation or ownership of AIRNET's
business that are of a type described below:

                                       16

<PAGE>

           (a) any collective bargaining arrangement with any labor union or any
such agreement currently in negotiation or proposed;

           (b) any contract for capital expenditures or the acquisition or
construction of fixed assets for or in respect of real property other than in
AIRNET's ordinary course of business in excess of $50,000;

           (c) any contract with a term in excess of one year for the purchase,
maintenance, acquisition, sale or furnishing of materials, supplies,
merchandise, machinery, equipment, parts or other property or services (except
that AIRNET need not list any such contract made in the ordinary course of
business which requires aggregate future payments of less than $50,000);

           (d) any contract relating to the borrowing of money, or the guaranty
of another person's borrowing of money, including, without limitation, all
notes, mortgages, indentures and other obligations, agreements and other
instruments for or relating to any lending or borrowing, including assumed
indebtedness;

           (e) any contract granting any person a lien on any of the assets of
AIRNET, in whole or in part;

           (f) any contract for the cleanup, abatement or other actions in
connection with Hazardous Materials, the remediation of any existing
environmental liabilities or relating to the performance of any environmental
audit or study;

           (g) any contract granting to any person a first-refusal, first-offer
or similar preferential right to purchase or acquire any of the assets of
AIRNET's business other than in the ordinary course of business;

           (h) any contract under which AIRNET is

               (i)     a lessee or sublessee of any machinery, equipment,
vehicle or other tangible personal property or real property, or

               (ii)    a lessor of any real property or tangible personal
property owned by AIRNET, in either case having an original value in excess of
$50,000;

           (i) any contract providing for the indemnification of any officer,
director, employee or other person, where such indemnification may exceed the
sum of $50,000;

           (j) any joint venture or partnership contract; and

           (k) any other contract with a term in excess of one year, whether or
not made in the ordinary course of business, which involves payments to or from
AIRNET in excess of $50,000.

                                       17

<PAGE>

AIRNET has provided to each of INVESTORS a true and complete copy of each
written Material Contract, including all amendments or other modifications
thereto. Except as set forth on Schedule 2.12, each Material Contract is a valid
and binding obligation of AIRNET, enforceable against AIRNET in accordance with
its terms (subject to defenses that may be available to AIRNET), and is in full
force and effect. Except as set forth on Schedule 2.12, AIRNET has performed all
obligations required to be performed by it under each Material Contract and
neither AIRNET nor, to the knowledge of AIRNET, any other party to any Contract,
is (with or without the lapse of time or the giving of notice or both) in breach
or default in any material respect thereunder; and there exists no condition
which, to the knowledge of AIRNET, would constitute a breach or default
thereunder. AIRNET has not been notified that any party to any Material Contract
intends to cancel, terminate, not renew or exercise an option under any Material
Contract, whether in connection with the transactions contemplated hereby or
otherwise.

     2.13  Real Property.

           (a) AIRNET owns no real property.

           (b) Schedule 2.13(b) includes an accurate list of real property
leases to which AIRNET is a party and an indication as to which such properties,
if any, are currently owned, or were formerly owned, by Affiliates of AIRNET.
Counsel to each of INVESTORS has been provided with true, complete and correct
copies of all leases and agreements in respect of such real property leased by
AIRNET. Except as set forth on Schedule 2.13(b), all of such leases included on
Schedule 2.13(b) are in full force and effect and constitute valid and binding
agreements of AIRNET and, to AIRNET's knowledge, of the parties (and their
successors) thereto in accordance with their respective terms.

     2.14  Insurance.

           (a) AIRNET has delivered to each of INVESTORS:

               (i)     true and complete copies of all policies of insurance to
which AIRNET is a party or under which AIRNET, or any director of AIRNET, is or
has been covered at any time within two years preceding the date of this
Agreement;

               (ii)    true and complete copies of all pending applications for
policies of insurance; and

               (iii)   any statement by the auditor of AIRNET's financial
statements with regard to the adequacy of such entity's coverage or of the
reserves for claims.

*          (b) Schedule 2.14(b) describes:

               (i)     any self-insurance arrangement by or affecting AIRNET,
including any reserves established thereunder; any contract or arrangement,
other than a policy of insurance, for the transfer or sharing of any risk by
AIRNET; and

                                       18

<PAGE>

               (ii)    all obligations of AIRNET to third parties with respect
to insurance (including such obligations under leases and service agreements),
and identifies the policy under which such coverage is provided.

           (c) Schedule 2.14(c) sets forth, by year, for the current policy year
and each of the preceding two policy years:

               (i)     a summary of the loss experience under each policy;

               (ii)    a statement describing each claim under an insurance
policy for an amount in excess of $5,000, which sets forth:

                       (A)  the name of the claimant;
                       (B)  a description of the policy by insurer, type of
                            insurance and period of coverage; and
                       (C)  the amount and a brief description of the claim
                            (excluding any confidential information relating to
                            the medical or dental condition of any claimant);
                            and

               (iii)   a statement describing the loss experience for all claims
that were self-insured, including the number and aggregate cost of such claims.

           (d) Except as set forth on Schedule 2.14(d):

               (i)     All policies to which AIRNET is a party or that provide
coverage to AIRNET:
                       (A)  are valid, outstanding and enforceable;
                       (B)  are sufficient for compliance with all legal
                            requirements and Material Contracts to which AIRNET
                            is a party or by which it is bound; and
                       (C)  will be in full force and effect upon the Closing in
                            accordance with their respective terms;

               (ii)    AIRNET has not received:

                       (A)  any refusal of coverage or any notice that a defense
                            will be afforded with reservation of rights, or

                       (B)  any notice of cancellation or any other indication
                            that any insurance policy is no longer in full force
                            or effect or will not be renewed or that the issuer
                            of any policy is not willing or able to perform its
                            obligations thereunder;

               (iii)   AIRNET has paid all premiums due, and has otherwise
performed all of its obligations, under each policy to which it is a party or
that provides coverage to it or any director thereof

                                       19

<PAGE>

               (iv)    AIRNET has given notice to the insurer of all claims
known by it to be insured thereby.

     2.15  Compensation; Employment Agreements; Organized Labor Matters.

           (a) AIRNET has delivered to each of INVESTORS an accurate list (which
is set forth on Schedule 2.15) showing all officers, directors and key employees
of AIRNET, listing all employment agreements with such officers, directors and
key employees and the rate of compensation (and the portions thereof
attributable to salary, bonus and other compensation, respectively) of each of
such Persons as of (i) the Balance Sheet Date, and (ii) if different, the date
hereof. AIRNET has provided to each of INVESTORS true, complete and correct
copies of any employment agreements for persons listed on Schedule 2.15. Since
the Balance Sheet Date, there have been no increases in the compensation payable
or any special bonuses to any officer, director, key employee or other employee,
except ordinary salary increases implemented on a basis consistent with past
practices.

           (b) Except as set forth on Schedule 2.15, there is no, and within the
last three (3) years AIRNET has not experienced any, strike, picketing, boycott,
work stoppage or slowdown, other labor dispute, union organizational activity,
allegation, charge or complaint of unfair labor practice, employment
discrimination or other matters relating to the employment of labor, pending or,
to AIRNET's knowledge, threatened against AIRNET; nor is there, to the knowledge
of AIRNET, any basis for any such allegation, charge or complaint. There is no
request directed to AIRNET for union or similar representation pending and, to
AIRNET's knowledge, no question concerning representation has been raised. To
AIRNET's knowledge, no key employee and no group of employees has any plans to
terminate employment with AIRNET. AIRNET has complied in all material respects
with all applicable laws relating to the employment of labor, including
provisions thereof relating to wages, hours, equal opportunity, collective
bargaining and the payment of social security and other taxes. AIRNET is not
liable for any arrearages of wages or any taxes or penalties for failure to
comply with any such laws, ordinances or regulation.

     2.16  Employee Plans. AIRNET has delivered to each of INVESTORS an accurate
listing (which is set forth on Schedule 2.16) showing all Benefit Plans of
AIRNET, together with true, complete and correct copies of such Benefit Plans,
agreements and any trusts related thereto, and classifications of employees
covered thereby as of the Balance Sheet Date. AIRNET is not required to
contribute to any Benefit Plan pursuant to the provisions of any collective
bargaining agreement establishing the terms and conditions of employment of any
of AIRNET's employees.

     2.17  Compliance with ERISA. All Benefit Plans that are intended to qualify
under Section 401(a) of the Code are and have been so qualified and have been
determined by the Internal Revenue Service to be qualified in form, and copies
of such determination letters have been delivered to INVESTOR's counsel. All
reports and other documents required to be filed with any Governmental Authority
or distributed to plan participants or beneficiaries (including, without
limitation, Form 5500) have been timely filed or distributed, and copies thereof
have been provided to INVESTORS. To AIRNET's Knowledge, neither AIRNET, any such
Benefit Plan, nor any "disqualified person" or "party in interest" as such terms
are defined in Section 4975 of the Code or Section 3(14) of ERISA has engaged in
any material transaction prohibited under the provisions of Section 4975 of the
Code or Section 406 of ERISA.

                                       20

<PAGE>

No Benefit Plan has incurred an accumulated funding deficiency, as defined in
Section 412(a) of the Code and Section 302(1) of ERISA, and AIRNET has not
incurred any liability for excise tax or penalty due to the Internal Revenue
Service nor any liability to the PBGC. AIRNET further represent that:

           (a) There have been no terminations, partial terminations or any
discontinuance of contributions to any such Benefit Plan intended to qualify
under Section 401 (a) of the Code without notice to and approval by the Internal
Revenue Service;

           (b) No such Benefit Plan subject to the provisions of Title IV of
ERISA has been terminated;

           (c) There have been no "reportable events" (as that phrase is defined
in Section 4043 of ERISA) with respect to any Benefit Plan;

           (d) AIRNET has not incurred liability under Section 4062 of ERISA;

           (e) No circumstances exist pursuant to which AIRNET could have any
material direct or indirect liability whatsoever (including, but not limited to,
any liability to any multi-employer plan or the PBGC under Title IV of ERISA or
to the Internal Revenue Service for any excise tax or penalty, or being subject
to any statutory lien to secure payment of any such liability) with respect to
any Benefit Plan now or heretofore maintained or contributed to by any entity
other than AIRNET that is, or at any time was, a member of a "controlled group"
(as defined in Section 412(n)(6)(B) of the Code) that includes AIRNET;

           (f) AIRNET is not now, nor can it as a result of its past activities
become, liable to the PBGC or to any multi-employer employee pension benefit
plan under the provisions of Title IV of ERISA;

           (g) All Benefit Plans and the administration thereof are in
substantial compliance with their terms and all applicable provisions of ERISA
and the regulations issued thereunder, as well as with all other applicable
federal, state and local statutes, ordinances and regulations;

           (h) All accrued contribution obligations of AIRNET with respect to
any Benefit Plan have either been fulfilled in their entirety or are fully
reflected on the balance sheet of AIRNET as of the Balance Sheet Date.

           (i) No claim, lawsuit, arbitration or other action has been
threatened, asserted, or instituted against any Benefit Plan or related trust,
any trustee or fiduciaries thereof, AIRNET, or any director, officer or employee
thereof;

           (j) No Benefit Plan is under audit or investigation by any
Governmental Authority and no such completed audit, if any, has resulted in the
imposition of any tax or penalty;

           (k) Each Benefit Plan intended to meet requirements for tax-favored
treatment under Sections 79, 106, 117, 120, 125, 127, 129 or 132 of the Code
satisfies the applicable requirements under the Code;

                                       21

<PAGE>

           (l) With respect to each Benefit Plan that is funded fully or
partially through an insurance policy, AIRNET has no material liability in the
nature of retroactive rate adjustment, loss sharing arrangement or other actual
or contingent liability arising wholly or partially out of events occurring on
or before the Balance Sheet Date;

           (m) The consummation of the transactions contemplated by this
Agreement will not give rise to any liability, including, without limitation,
liability for severance pay, unemployment compensation or termination pay, or
accelerate the time of payment or vesting or increase the amount of compensation
or benefits due to any current, former, or retired employee or their
beneficiaries solely by reason of such transactions;

           (n) Except as set forth on Schedule 2.17(n), neither AIRNET nor any
member of a "controlled group" which includes AIRNET maintains, contributes to,
or in any way provides for any benefits of any kind whatsoever (other than under
Section 4980B of the Code or Title I, Subtitle B, Part 6 of ERISA, the federal
Social Security Act or a plan qualified under Section 401(a) of the Code) to any
current or future retiree or terminated employee;

           (o) Neither AIRNET nor any officer or employee thereof, has made any
promises or commitments, whether legally binding or not, to create any
additional plan, agreement or arrangement, or to modify or change any existing
Benefit Plan; and

           (p) AIRNET has complied in all material respects with the
requirements of Section 4980B of the Code and Title I, Subtitle B, Part 6 of
ERISA.

     2.18  Conformity with Law; Litigation. Except as set forth on Schedule
2.18, AIRNET has complied with all laws, rules, regulations, writs, injunctions,
decrees, and orders applicable to it or to the operation of its business
(collectively, "Laws") and has not received any notice of any alleged claim or
threatened claim, violation of, liability or potential responsibility under, any
such Law which has not heretofore been cured and for which there is no remaining
liability. Without limiting the generality of the foregoing, AIRNET has complied
with all applicable federal, state and local Laws relating to the sale,
distribution or registration of securities, or to any Laws relating to antitrust
and trade regulation.

     Except to the extent set forth on Schedule 2.7 or as set forth on Schedule
2.18 (which shall disclose the parties to, nature of, and relief sought for each
matter to be disclosed on Schedule 2.18):

           (a) There is no suit, action, proceeding, claim, order or, to
AIRNET's Knowledge, investigation pending or, to AIRNET's Knowledge, threatened
against either AIRNET or any Benefit Plan, or any fiduciary of any such Benefit
Plan or, to the Knowledge of AIRNET, pending or threatened against any of the
officers, directors or employees of AIRNET with respect to its business or
proposed business activities or to which AIRNET is otherwise a party, which
would have a Material Adverse Effect on AIRNET, before any court, or before any
Governmental Authority (collectively, "Claims"); nor, to AIRNET's Knowledge, is
there any basis for any such Claims.

           (b) AIRNET is not subject to any judgment, order or decree of any
court or Governmental Authority; AIRNET has not received any opinion or
memorandum from legal counsel to the

                                       22

<PAGE>

effect that it is exposed, from a legal standpoint, to any liability or
disadvantage which may be material to its business. AIRNET is not engaged in any
legal action to recover monies due it or for damages sustained by it.

           (c) AIRNET's current insurance is adequate to cover all pending or
threatened Claims, AIRNET has given all required notice of such Claims to its
appropriate insurance carrier(s) and/or all such claims have been fully reserved
for on the Financial Statements. Schedule 2.18 lists the insurer for each Claim
covered by insurance or designates each Claim, or portion of each Claim, as
uninsured and the individual and aggregate policy limits for the insurance
covering each insured Claim and the applicable policy deductibles for each
insured Claim.

Schedule 2.18 sets forth all closed litigation matters to which AIRNET was a
party during the three (3) years preceding the Closing, the date such litigation
was commenced and concluded, and the nature of the resolution thereof (including
amounts paid in settlement or judgment).

     2.19  Taxes. Except as set forth on Schedule 2.19:

           (a) To AIRNET's Knowledge, all Returns required to have been filed by
or with respect to AIRNET have been duly filed, and each such Return correctly
and completely reflects the Tax liability and all other information required to
be reported thereon. All Taxes with respect to items or periods covered by all
such Returns (whether or not shown on any Return) owed by AIRNET have been paid.

           (b) To AIRNET's Knowledge, the provisions for Taxes due by AIRNET in
the Financial Statements are sufficient for all unpaid Taxes, being current
taxes not yet due and payable, of AIRNET.

           (c) AIRNET is not a party to any agreement extending the time within
which to file any Return. No claim has ever been made by any Taxing Authority in
a jurisdiction in which AIRNET does not file Returns that it is or may be
subject to taxation by that jurisdiction that is unresolved or if adversely
determined would have a Material Adverse Effect on AIRNET.

           (d) AIRNET has withheld and paid all Taxes required to have been
withheld and paid in connection with amounts paid or owing to any employee,
creditor, independent contractor or other third party.

           (e) There is no dispute or claim concerning any Tax liability of
AIRNET either (i) claimed or raised by any Taxing Authority or (ii) otherwise
known to AIRNET. No issues have been raised in any examination by any Taxing
Authority with respect to AIRNET which, by application of similar principles,
reasonably could be expected to result in a proposed deficiency for any other
period not so examined. Schedule 2.19(e) lists all federal, state, local and
foreign income Tax Returns filed by AIRNET for all taxable periods ended on or
after January 1, 1999, indicates those Returns, if any, that have been audited,
and indicates those Returns that currently are the subject of audit. AIRNET has
delivered to INVESTORS complete and correct copies of all federal, state, local
and foreign income Tax Returns filed by, and all Tax examination reports and
statements of deficiencies assessed against or agreed to by, AIRNET since
January 1, 1999.

                                       23

<PAGE>

           (f) AIRNET has not waived any statute of limitations, the waiver of
which remains in effect on the date hereof, in respect of Taxes or agreed to any
extension of time with respect to any Tax assessment or deficiency.

           (g) AIRNET has not made any payments, and, except for certain
payments that might be made pursuant to the terms of AIRNET's employment
agreement with Glenn Ehley, is not obligated to make any payments, and is not a
party to any agreement that under certain circumstances could require it to make
any payments, that are not deductible (i) under Section 280G of the Code or (ii)
as compensation under Section 162(m) of the Code or any similar provision under
state and/or local law.

           (h) AIRNET is not a party to any Tax allocation or sharing agreement.

           (i) AIRNET is not a party to any joint venture, partnership or other
arrangement that is treated as a partnership for federal income Tax purposes.

           (j) To AIRNET's Knowledge, the Internal Revenue Service has not
proposed or threatened accounting method changes of AIRNET that could give rise
to an adjustment under Section 481 of the Code for periods after the Closing
Date.

           (k) AIRNET has not received any written ruling of a Taxing Authority
related to Taxes or entered into any written and legally binding agreement with
a Taxing Authority relating to Taxes.

           (l) AIRNET has disclosed (in accordance with Section
6662(d)(2)(B)(ii) of the Code) on its federal income Tax Returns all positions
taken therein that could give rise to a substantial understatement of federal
income Tax within the meaning of Section 6662(d) of the Code.

           For purposes of this Section 2.19, the following definitions shall
apply:

           "Returns" means any returns, reports or statements (including any
information returns) required to be filed for purposes of a particular Tax with
any Taxing Authority or Governmental Authority.

           "Tax" or "Taxes" means all federal, state, local or foreign net or
gross income, gross receipts, net proceeds, sales, use, ad valorem, value added,
franchise, bank shares, withholding, payroll, employment, excise, property,
deed, stamp, alternative or add-on minimum, environmental or other taxes,
assessments, duties, fees, levies or other governmental charges similar to
taxes, whether disputed or not, together with any interest, penalties, additions
to tax or additional amounts with respect thereto.

           "Taxing Authority" means any Governmental Authority, board, bureau,
body, department or authority of any United States federal, state or local
jurisdiction or any foreign jurisdiction, having jurisdiction with respect to
any Tax.

     2.20  No Violations. AIRNET is not in violation of any AIRNET Charter
Document nor is AIRNET in default under any Material Contract; and, except as
set forth on Schedule 2.20, (a) the rights and benefits of AIRNET under the
Material Contracts will not be adversely affected by the transactions

                                       24

<PAGE>

contemplated hereby, and (b) the execution of this Agreement and the performance
by AIRNET of their obligations hereunder and the consummation by AIRNET of the
transactions contemplated hereby will not (i) result in any violation or breach
of, or constitute a default under, any of the terms or provisions of the
Material Contracts or the AIRNET Charter Documents, or (ii) require the consent,
approval, waiver of any acceleration, termination or other right or remedy or
action of or by, or make any filing with or give any notice to, any other party.
Except as set forth on Schedule 2.20, none of the Material Contracts requires
notice to, or consent or approval of, any Governmental Authority or other third
party with respect to any of the transactions contemplated hereby in order to
remain in full force and effect and consummation of the transactions
contemplated hereby will not give rise to any right to termination, cancellation
or acceleration or loss of any material right or benefit. None of AIRNET's
Material Contracts with customers prohibits the use or publication by AIRNET or
INVESTORS of the name of any other party to such Material Contracts. Except as
set forth on Schedule 2.20, none of the Material Contracts prohibits or
restricts AIRNET from freely providing services to any other customer or
potential customer of AIRNET.

     2.21  Business Conduct. Except as set forth on Schedule 2.21,
since January 1, 2002, AIRNET has conducted its business only in the ordinary
course consistent with past custom and practices and has incurred no liabilities
other than in the ordinary course of business consistent with past custom and
practices. Except as forth on Schedule 2.21, since January 1, 2002, there has
not been any:

           (a) Material adverse change in AIRNET's operations, condition
(financial or otherwise), operating results, assets, liabilities, employee,
customer or supplier relations or business prospects;

           (b) Damage, destruction or loss of any property owned by AIRNET or
used in the operation of the business, whether or not covered by insurance,
having a replacement cost or fair market value in excess of $10,000 affecting
AIRNET's property, financial status or the business;

           (c) Voluntary or involuntary sale, transfer, surrender, abandonment
or other disposition of any kind by AIRNET of any assets or property rights
(tangible or intangible), having a replacement cost or fair market value in
excess of $10,000, except in each case the sale of inventory and collection of
accounts in the ordinary course of business consistent with past custom and
practices;

           (d) Loan or advance by AIRNET to any party other than sales to
customers on credit in the ordinary course of business consistent with past
custom and practices;

           (e) Declaration, setting aside, or payment of any dividend or other
distribution in respect to AIRNET's capital stock, any direct or indirect
redemption, purchase, or other acquisition of such stock, or the payment of
principal or interest on any note, bond, debt instrument or debt to any
Affiliate;

           (f) Incurrence of debts, liabilities or obligations except current
liabilities incurred in connection with or for services rendered or goods
supplied in the ordinary course of business consistent with past custom and
practices, liabilities on account of taxes and governmental charges but not
penalties, interest or fines in respect thereof, and obligations or liabilities
incurred by virtue of the execution of this Agreement;

                                       25

<PAGE>

           (g) Issuance by AIRNET of any notes, bonds, or other debt securities
or any equity securities or securities convertible into or exchangeable for any
equity securities;

           (h) Cancellation, waiver or release by AIRNET of any debts, rights or
claims, except in each case in the ordinary course of business consistent with
past custom and practices;

           (i) Amendment of AIRNET's Certificate of Incorporation or By-Laws;

           (j) Amendment or termination of any Material Contract, other than
expiration of such contract in accordance with its terms;

           (k) Change in accounting principles, methods or practices (including,
without limitation, any change in depreciation or amortization policies or
rates) utilized by AIRNET;

           (l) Discharge or satisfaction of any material liability, encumbrance
or payment of any material obligation or liability, other than current
liabilities paid in the ordinary course of business consistent with past custom
and practices or cancellation of any debts or claims;

           (m) Sale or assignment by AIRNET of any tangible assets other than in
the ordinary course of business;

           (n) Capital expenditures or commitments therefor by AIRNET other than
in the ordinary course of business in excess of $10,000 in the aggregate;

           (o) Charitable contributions or pledges by AIRNET in excess of $5,000
in the aggregate;

           (p) Mortgage, pledge or other encumbrance of any asset of AIRNET
other than in the ordinary course of business;

           (q) Adoption, amendment or termination of any Benefit Plan;

           (r) Increase in the benefits provided under any Benefit Plan; or

           (s) An occurrence or event not included in clauses (a) through (r)
that has resulted or might be expected to have a Material Adverse Effect on
AIRNET.

     2.22  Deposit Accounts; Powers of Attorney. AIRNET has delivered to each of
INVESTORS an accurate schedule (which is set forth on Schedule 2.22) as of the
date of this Agreement of:

           (a) the name of each financial institution in which AIRNET has
accounts or safe deposit boxes;

           (b) the names in which the accounts or boxes are held;

                                       26

<PAGE>

           (c) the type of account and account number; and

           (d) the name of each person authorized to draw thereon or have access
thereto.

Schedule 2.24 also sets forth the name of each person, corporation, firm or
other entity holding a general or special power of attorney from AIRNET and a
description of the terms of such power of attorney.

     2.23  Relations with Governments. AIRNET has not made, offered or agreed to
offer anything of value to any governmental official, political party or
candidate for government office nor has it otherwise taken any action which
would cause AIRNET to be in violation of the Foreign Corrupt Practices Act of
1977, as amended, or any law of similar effect.

     2.24  Disclosure. The representations and warranties of AIRNET contained in
this Agreement, the schedules to this Agreement provided by AIRNET, the
certificates and the other documents furnished by AIRNET to INVESTORS pursuant
hereto, taken as a whole, present fairly the business and operations of AIRNET
for the time periods with respect to which such information was requested.
AIRNET's rights under the documents delivered pursuant hereto would not be
materially adversely affected by, and no statement made herein would be rendered
untrue in any material respect by, any other document to which AIRNET is a
party, or to which its properties are subject, or to AIRNET's Knowledge, by any
other fact or circumstance regarding AIRNET (which fact or circumstance was, or
should reasonably, after due inquiry, have been known to AIRNET) that is not
disclosed pursuant hereto or thereto.

     2.25  Prohibited Activities. Except as set forth on Schedule 2.25, AIRNET
has not, between the Balance Sheet Date and the date hereof, taken any of the
actions set forth in Section 5.3.

     2.26  Affiliate Transactions. Schedule 2.26 sets forth the parties to and
the date, nature and amount of (a) each transaction or series of similar
transactions (other than payments of salary and bonus which are reflected as
line items in the Financial Statements) involving the transfer of any cash,
property or rights in which the amount involved individually or collectively
exceeded $5,000 to or from AIRNET from, to, or for the benefit of any
stockholder, former stockholder, Affiliate or former Affiliate of AIRNET
("Affiliate Transactions") during the period commencing December 6, 1999 through
the date hereof, and (b) any existing commitments of AIRNET to engage in the
future in any Affiliate Transactions. Each Affiliate Transaction was effected on
terms equivalent to those which would have been established in an arm's-length
negotiation, except as disclosed on Schedule 2.26 or as disclosed in SEC
filings.

     2.27  HSR Compliance. The Company has fully complied with the requirements
of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the
"HSR Act") and no additional step are required to be taken under the HSR Act in
connection this Agreement or the transactions contemplated by this Agreement.

     2.28  Misrepresentation. None of the representations and warranties set
forth in this Agreement, the certificates and the other documents furnished to
INVESTORS pursuant hereto, taken as a whole, contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
contained herein or therein not misleading.

                                       27

<PAGE>

     2.29  Delivery of Documents; Securities Law Matters. AIRNET has made
available to each of INVESTORS its (a) 2001 Annual Report on Form 10-K, and (b)
Quarterly Report on Form 10-Q for the quarter ended September 30, 2002
(collectively, the "AIRNET SEC Reports"). As of their respective dates, the
AIRNET SEC Reports did not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading. Since November 29, 1999, AIRNET has filed all forms,
reports and documents with the SEC required to be filed by it pursuant to the
1933 Act and the 1934 Act and the rules and regulations promulgated thereunder,
each of which complied as to form, at the time such form, document or report was
filed, in all material respects with the applicable requirements of the 1933 Act
and the 1934 Act and the applicable rules and regulations promulgated
thereunder.

     2.30  The Nasdaq Stock Market Listing. Except as set forth on Schedule
2.30, All necessary filings have been made as required, all listing requirements
have been met and all filing fees have been paid to effect the continued listing
of the AIRNET Common Stock on The Nasdaq Stock Market prior to and after the
Closing Date.

     2.31  Business Plan. AIRNET has provided to INVESTORS an updated business
plan, dated January 18, 2003 (the "Business Plan"). Except as disclosed on
Schedule 2.31, to AIRNET's Knowledge, the factual assumptions underlying the
Business Plan are correct, and the assumptions in the Business Plan with respect
to future operations are reasonable.

3.   REPRESENTATIONS OF TECORE

     TECORE represents and warrants to AIRNET that all of the following
representations and warranties in this Section 3 are true and correct at the
date of this Agreement and shall be true and correct on the Closing Date, and
that such representations and warranties shall survive the Closing Date for a
period of twenty-four (24) months.

     3.1   Due Organization. TECORE is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Texas, and is duly
authorized and qualified to do business under all applicable laws, regulations,
ordinances and orders of public authorities to carry on its business in the
places and in the manner as now conducted, to own or hold under lease the
properties and assets it now owns or holds under lease, and to perform all of
its obligations under any material agreement to which it is a party or by which
its properties are bound.

     3.2   Authorization. The representatives of TECORE executing this Agreement
have the authority to execute and deliver this Agreement and to bind TECORE to
perform its obligations hereunder. The execution and delivery of this Agreement
by TECORE and the performance by TECORE of its obligations under this Agreement
and the consummation by TECORE of the transactions contemplated hereby have
been, or will have been on or before the date of the Closing, duly authorized by
all necessary corporate action in accordance with applicable law and the
Certificate of Incorporation and By-Laws of TECORE. This Agreement constitutes
the valid and binding obligation of TECORE, enforceable in accordance with its
terms.

                                       28

<PAGE>

     3.3   Securities Laws.

           (a) This Agreement is made with AIRNET's reliance upon TECORE's
representations to AIRNET, which by the acceptance hereof TECORE hereby
confirms, that the Warrants, the Notes and the shares of Common Stock underlying
the Notes (the "Note Shares", and together with the Warrants and Notes, the
"Securities") will be acquired for investment for its own account, not as a
nominee or agent, and not with a view to the sale or distribution of all or any
part thereof absent the registration of such Securities under the 1933 Act or
pursuant to a valid exemption from such registration requirements, and each
Investor has no present intention of selling, granting participation in, or
otherwise distributing the same. By executing this Agreement, TECORE further
represents that it does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person, or to any third person, with respect to any of the Securities.

           (b) TECORE understands that the Securities are not registered under
the 1933 Act on the ground that the sale provided for in this Agreement and the
issuance of the Securities hereunder are being made in reliance upon an
exemption from the registration requirements of the Act pursuant to Section 4(2)
thereof as a transaction by an issuer not involving a public offering, and is
similarly exempt under any other applicable securities laws, and that AIRNET's
reliance on such exemptions is predicated on TECORE's representations set forth
herein.

           (c) TECORE represents that it has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment, and has the ability to bear the economic risks of its
investment. TECORE further represents that it has had access, during the course
of the transaction and prior to the purchase of the Securities, to information
concerning AIRNET and that it has had during the course of the transaction and
prior to the purchase of the Securities, the opportunity to ask questions of,
and receive answers from, AIRNET concerning the terms and conditions of the
offering and AIRNET's business, management and financial affairs, and to obtain
additional information (to the extent AIRNET possessed such information or could
acquire it without unreasonable effort or expense) necessary to verify the
accuracy of any information furnished to it or to which it had access.

           (d) TECORE represents that it is an "accredited investor" as defined
in Rule 501 of Regulation D promulgated under the Act.

           (e) TECORE understands that the Securities may not be sold,
transferred or otherwise disposed of without registration under the 1933 Act and
any applicable state securities laws absent an exemption therefrom, and that in
the absence of an effective registration statement covering the Securities, or
an available exemption from registration under the 1933 Act and any applicable
state securities laws, the Securities must be held indefinitely. In particular,
TECORE is aware that the Securities may not be sold pursuant to SEC Rule 144
unless all the conditions of that Rule are met. Among the conditions for use of
Rule 144 may be the availability of current and adequate information to the
public about AIRNET. TECORE represents that, in the absence of an effective
registration statement covering the Securities, it shall not sell, transfer or
otherwise dispose of the Securities except in a manner consistent with the
representations set forth herein and pursuant to an available exemption.

                                       29

<PAGE>

           (f) TECORE agrees that in no event will it sell, transfer or
otherwise dispose of any of the Securities (other than pursuant to an effective
registration statement under the 1933 Act and any applicable state securities
laws), unless and until TECORE or its proposed transferee has complied with any
restrictions on transfer in the Registration Rights Agreement. TECORE
acknowledges that it will be subject to AIRNET's Insider Trading Policy.

4.   REPRESENTATIONS OF SCP

     SCP represents and warrants to AIRNET that all of the following
representations and warranties in this Section 4 are true and correct at the
date of this Agreement and shall be true and correct on the Closing Date, and
that such representations and warranties shall survive the Closing Date for a
period of twenty-four (24) months.

     4.1   Due Organization. SCP is a limited partnership duly formed and
validly existing under the laws of the State of Delaware, and is duly authorized
and qualified to do business under all applicable laws, regulations, ordinances
and orders of public authorities to carry on its business in the places and in
the manner as now conducted, to own or hold under lease the properties and
assets it now owns or holds under lease, and to perform all of its obligations
under any material agreement to which it is a party or by which its properties
are bound.

     4.2   Authorization. The representatives of SCP executing this
Agreement have the authority to execute and deliver this Agreement and to bind
SCP to perform its obligations hereunder. The execution and delivery of this
Agreement by SCP and the performance by SCP of its obligations under this
Agreement and the consummation by SCP of the transactions contemplated hereby
have been, or will have been on or before the date of the Closing, duly
authorized by all necessary action in accordance with applicable law and the
limited partnership agreement of SCP. This Agreement constitutes the valid and
binding obligation of SCP, enforceable in accordance with its terms.

     4.3   Securities Laws.

           (a) This Agreement is made with AIRNET's reliance upon SCP's
representations to AIRNET, which by the acceptance hereof of SCP hereby
confirms, that the Notes and Note Shares to be acquired by SCP and all shares of
AIRNET's Common Stock to be acquired by SCP pursuant to the terms of this
Agreement will be acquired for investment for its own account, not as a nominee
or agent, and not with a view to the sale or distribution of all or any part
thereof absent the registration of such Notes and Note Shares under the 1933 Act
or pursuant to a valid exemption from such registration requirements, and each
Investor has no present intention of selling, granting participation in, or
otherwise distributing the same. By executing this Agreement, SCP further
represents that it does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person, or to any third person, with respect to any of the Notes or Note Shares.

           (b) SCP understands that the Notes and Note Shares may not be
registered under the 1933 Act on the ground that the sale provided for in this
Agreement and the issuance of the Notes and Note Shares hereunder are being made
in reliance upon an exemption from the registration requirements of the Act
pursuant to Section 4(2) thereof as a transaction by an issuer not involving a
public offering, and

                                       30

<PAGE>

is similarly exempt under any other applicable securities laws, and that
AIRNET's reliance on such exemptions is predicated on SCP's representations set
forth herein.

           (c) SCP represents that it is experienced in evaluating and investing
in companies such as AIRNET, is able to fend for itself in the transactions
contemplated by this Agreement, has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its
investment, and has the ability to bear the economic risks of its investment.
SCP further represents that it has had access, during the course of the
transaction and prior to the purchase of the Notes and Note Shares, to
information concerning AIRNET and that it has had during the course of the
transaction and prior to the purchase of the Notes, the opportunity to ask
questions of, and receive answers from, AIRNET concerning the terms and
conditions of the offering and AIRNET's business, management and financial
affairs, and to obtain additional information (to the extent AIRNET possessed
such information or could acquire it without unreasonable effort or expense)
necessary to verify the accuracy of any information furnished to it or to which
it had access.

           (d) SCP represents that it is an "accredited investor" as defined in
Rule 501 of Regulation D promulgated under the Act.

           (e) SCP understands that the Notes and Note Shares may not be sold,
transferred or otherwise disposed of without registration under the 1933 Act and
any applicable state securities laws absent an exemption therefrom, and that in
the absence of an effective registration statement covering the Notes and Note
Shares, or an available exemption from registration under the 1933 Act and any
applicable state securities laws, the Notes and Note Shares must be held
indefinitely. In particular, SCP is aware that the Notes and Note Shares may not
be sold pursuant to SEC Rule 144 promulgated under the 1933 Act unless all the
conditions of that Rule are met. Among the conditions for use of Rule 144 may be
the availability of current and adequate information to the public about AIRNET.
SCP represents that, in the absence of an effective registration statement
covering the Notes and Note Shares, it shall not sell, transfer or otherwise
dispose of the Notes and Note Shares except in a manner consistent with the
representations set forth herein and pursuant to an available exemption.

           (f) SCP agrees that in no event will it sell, transfer or otherwise
dispose of any of the Notes and Note Shares (other than pursuant to an effective
registration statement under the 1933 Act and any applicable state securities
laws), unless and until SCP or its proposed transferee has complied with any
restrictions on transfer in the Registration Rights Agreement. SCP acknowledges
that it will be subject o AIRNET's Insider Trading Policy.

5.   COVENANTS PRIOR TO CLOSING

     5.1   Access and Cooperation; Due Diligence.

           (a) Between the date of this Agreement and the Closing Date, AIRNET
will afford to the officers and authorized representatives of each of INVESTORS
access during business hours to all of AIRNET's sites, properties, books and
records and will furnish each of INVESTORS with such additional financial and
operating data and other information as to the business and properties of AIRNET
as either of INVESTORS may from time to time reasonably request. AIRNET will
cooperate with each of

                                       31

<PAGE>

INVESTORS and their representatives, including each INVESTOR'S auditors and
counsel, in the preparation of any documents or other materials which may be
required in connection with the transactions contemplated by this Agreement.
INVESTORS and AIRNET will treat all information obtained in connection with the
negotiation and performance of this Agreement as confidential in accordance with
the provisions of Section 14.

           (b) INVESTORS will cooperate with AIRNET, its representatives,
auditors and counsel in the preparation of any documents or other material which
may be required in connection with the transactions contemplated by this
Agreement. AIRNET will cause all information obtained in connection with the
negotiation and performance of this Agreement to be treated as confidential in
accordance with the provisions of Section 14.

     5.2   Conduct of Business Pending Closing. Between the date of this
Agreement and the Closing Date, AIRNET will:

           (a) carry on its business in the ordinary course substantially as
conducted heretofore and not introduce any new method of management, operation
or accounting;

           (b) maintain its properties and facilities, including those held
under leases, in as good working order and condition as at present, ordinary
wear and tear excepted;

           (c) perform in all material respects its obligations under agreements
relating to or affecting its assets, properties or rights;

           (d) keep in full force and effect present insurance policies or other
comparable insurance coverage;

           (e) maintain and preserve its business organization intact and use
its best efforts to retain its present key employees and relationships with
suppliers, customers and others having business relations with AIRNET;

           (f) maintain compliance with all permits, laws, rules and
regulations, consent orders, and all other orders of applicable courts,
regulatory agencies and similar Governmental Authorities; and

           (g) maintain present debt and lease instruments in accordance with
their respective terms and not enter into new or amended debt or lease
instruments, provided that debt and/or lease instruments may be replaced if such
replacement instruments are on terms at least as favorable to AIRNET as the
instruments being replaced.

           (h) exercise its best efforts to ensure AIRNET's continued inclusion
in, and the continued eligibility of the AIRNET Common Stock for listing on, The
Nasdaq Stock Market under all applicable listing requirements prior to and after
the Closing Date.

           (i) file an additional shares notification with The Nasdaq Stock
Market to approve for listing, subject to official notice of its issuance, all
the shares of AIRNET Common Stock issuable upon the

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<PAGE>

conversion of the Series B Preferred Stock, the purchase of shares by SCP, and
the conversion of the Notes and Warrants issued in connection herewith; and
AIRNET shall cause the shares of AIRNET Common Stock issuable upon the
conversion of the Series B Preferred Stock, the purchase of shares by SCP, and
the conversion of the Notes and Warrants to be approved for listing on The
Nasdaq Stock Market, subject to official notice of issuance, prior to the
Closing Date.

     5.3   Prohibited Activities. Between the date hereof and the Closing Date,
except as specifically contemplated hereby, including but not limited to,
Section 5.4, AIRNET will not, without the prior written consent of INVESTORS:

           (a) make any change in its Certificate or Articles of Incorporation
or By-laws;

           (b) grant or issue any securities, options, warrants, calls,
conversion rights or commitments of any kind relating to its securities of any
kind, other than as provided for, or contemplated by, this Agreement;

           (c) declare or pay any dividend, or make any distribution in respect
of its stock whether now or hereafter outstanding, or purchase, redeem or
otherwise acquire or retire for value any shares of its stock;

           (d) enter into any contract or commitment or incur or agree to incur
any liability or make any capital expenditure, except if it is in the ordinary
course of business (consistent with past practice) and involves an amount not in
excess of $50,000;

           (e) create, assume or permit to exist any mortgage, pledge or other
lien or encumbrance upon any assets or properties whether now owned or hereafter
acquired, except with respect to the following "Permitted Liens": (i) purchase
money liens incurred in connection with the acquisition of equipment with an
aggregate cost not in excess of $50,000 necessary or desirable for the conduct
of the business of AIRNET, (ii)(A) liens for Taxes either not yet due or being
contested in good faith and by appropriate proceedings (and for which adequate
reserves have been established and are being maintained) or (B) materialmen's,
mechanics', workers', repairmen's, employees' or other like liens arising in the
ordinary course of business (the liens set forth in clause (ii) being referred
to herein as "Statutory Liens"), or (iii) liens set forth on Schedule 2.7
hereto;

           (f) sell, assign, lease or otherwise transfer or dispose of any
property or equipment except in the ordinary course of business;

           (g) negotiate for the acquisition of any business or the start-up of
any new business;

           (h) merge or consolidate or agree to merge or consolidate with or
into any other corporation;

           (i) waive any material right or claim of AIRNET, provided that AIRNET
may negotiate and adjust bills in the course of good faith disputes with
customers in a manner consistent with past

                                       33

<PAGE>

practice, provided, further, that such adjustments shall not be deemed to be
included on Schedule 2.8 unless specifically listed thereon;

           (j) commit a material breach, materially amend or terminate any
Material Contract;

           (k) enter into any other transaction outside the ordinary course of
its business or prohibited hereunder; or

           (l) except in the ordinary course of business or as required by Law
or contractual obligations, AIRNET will not (i) increase in any manner the base
compensation of, or enter into any new bonus or incentive agreement or
arrangement with, any of the employees engaged in AIRNET's business, (ii) pay or
agree to pay any additional pension, retirement allowance or other employee
benefit to any such employee, whether past or present, (iii) enter into any new
employment, severance, consulting, or other compensation agreement with any
existing employee engaged in AIRNET's business, (iv) amend or enter into a new
Plan (except as required by Law) or amend or enter into a new collective
bargaining agreement, or (v) engage in any Affiliate Transaction.

     5.4   No Shopping.

           (a) In consideration of the substantial expenditure of time, effort
and expense undertaken by each of the INVESTORS in connection with its due
diligence review and the preparation and execution of this Agreement, AIRNET
agrees that, except to the extent that, pursuant to an unsolicited proposal,
AIRNET's Board of Directors must honor their fiduciary responsibilities to
AIRNET's stockholders to achieve the alternative for raising working capital or
closing a strategic transaction for all of the assets of AIRNET, or for a
controlling interest in AIRNET's equity securities, in the best interest of the
AIRNET stockholders, neither they nor their representatives, agents, employees
or affiliates will, after the execution of this Agreement until the earlier of
(a) the termination of this Agreement, or (b) the Closing, directly or
indirectly, solicit, encourage, negotiate or discuss with any third party
(including by way of furnishing any information concerning AIRNET) any
acquisition proposal relating to or affecting AIRNET or any part of it, or any
direct or indirect interests in AIRNET, whether by purchase of assets or stock,
purchase of interests, merger or other transaction ("Acquisition Transaction").
AIRNET will (a) immediately instruct its investment bankers and financial
advisors to cease all activities described in the preceding sentence, and (b)
promptly advise INVESTORS of the terms of any communications AIRNET may receive
or become aware of relating to any bid for all or any part of AIRNET.
Notwithstanding the foregoing, if a third party interested in an Acquisition
Transaction with AIRNET presents or submits a proposal after the execution of
this Agreement, any discussions held between such party and AIRNET prior to
execution of this Agreement shall not cause such a presentation or submission to
be characterized as proposal solicited by AIRNET.

           (b) If AIRNET's Board of Directors, pursuant to its fiduciary
responsibilities, authorizes AIRNET to enter into a binding agreement concerning
an Acquisition Transaction with a Person other than INVESTORS, AIRNET shall
provide written notice to INVESTORS (which shall contain a description of all
material terms of the proposed agreement) that it intends to enter into such an
agreement. Upon such notification INVESTORS shall have thirty (30) days within
which to elect, in writing, to consummate the transaction described in the
aforesaid written notice in the place and stead of such Person. If INVESTORS
fail to make such election within the thirty (30) day period, this Agreement may
be terminated by AIRNET

                                       34

<PAGE>

and (A) AIRNET shall pay to each of the INVESTORS, as that INVESTOR'S exclusive
remedy and from immediately available funds, a termination fee equal to
INVESTOR'S documented and reasonable expenses incurred in connection with the
transactions contemplated by this Agreement up to but not to exceed Two Hundred
Fifty Thousand Dollars ($250,000), and (B) each INVESTOR shall have the right to
demand payment from AIRNET of all amounts owing to that Investor pursuant to
that certain Bridge Loan Promissory Note, dated January 24, 2003, in the
original principal amount of $3,000,000, which shall become immediately due and
payable upon such demand.

     5.5   Notification of Certain Matters. AIRNET shall give prompt notice to
INVESTORS of (a) the occurrence or non-occurrence of any event of which AIRNET
has knowledge, the occurrence or non-occurrence of which would cause any
representation or warranty of AIRNET contained herein to be untrue or inaccurate
in any material respect at or prior to the Closing, and (b) any material failure
of AIRNET to comply with or satisfy any covenant, condition or agreement to be
complied with or satisfied hereunder. Each INVESTOR shall give prompt notice to
AIRNET of (a) the occurrence or non-occurrence of any event of which that
INVESTOR has knowledge, the occurrence or non-occurrence of which would cause
any representation or warranty of that INVESTOR contained herein to be untrue or
inaccurate in any material respect at or prior to the Closing, and (b) any
material failure of that INVESTOR to comply with or satisfy any covenant,
condition or agreement to be complied with or satisfied by it hereunder. The
delivery of any notice pursuant to this Section 5.5 shall not be deemed to (a)
modify the representations or warranties hereunder of the party delivering such
notice, which modification may only be made pursuant to Section 5.6, (b) modify
the conditions set forth in Sections 6, 7 or 8, or (c) limit or otherwise affect
the remedies available hereunder to the party receiving such notice.

     5.6   Amendment of Schedules. Each party hereto agrees that, with
respect to the representations and warranties of such party contained in this
Agreement, such party shall have the continuing obligation until the Closing
Date to supplement or amend promptly the Schedules hereto with respect to any
matter hereafter arising or discovered which, if existing or known at the date
of this Agreement, would have been required to be set forth or described in the
Schedules. No supplement or amendment to a Schedule shall be deemed to cure any
breach of any representation and warranty by either party made in this
Agreement, provided that if the party to whom a supplemental or amending
disclosure was made proceeds to Closing, that party shall be deemed to have
waived such breach of representation and warranty and any remedies which might
have been available with respect thereto.

     5.7   Final Financial Statements. AIRNET shall provide prior to the Closing
Date, and INVESTORS shall have had sufficient time prior thereto to review, the
unaudited statements of income, cash flows and retained earnings of AIRNET for
all months ended no earlier than 30 days prior to the Closing Date, disclosing
no material adverse change in the financial condition of AIRNET or the results
of its operations from the financial statements as of the Balance Sheet Date
(other than any such change that results directly from the failure of either of
the INVESTORS to make advances to AIRNET as contemplated by that certain Bridge
Loan Agreement dated January 24, 2003 by and among AIRNET and the INVESTORS).
Such financial statements shall have been prepared in accordance with GAAP
applied on a consistent basis throughout the periods indicated (except as noted
therein), but shall not include all of the footnotes and adjustments required by
GAAP for complete financial statements. Except as noted in such financial
statements, all of such financial statements will present fairly the results of
operations of AIRNET for the periods indicated thereon.

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<PAGE>

     5.8   Shareholder Approval. AIRNET will use its best efforts to obtain the
shareholder approval required by NASDAQ in connection with the transactions
contemplated by this Agreement.

     5.9   The Nasdaq Stock Market Additional Shares Notification for Listing.
AIRNET will file an additional shares notification with The Nasdaq Stock Market
to approve for listing, subject to official notice of its issuance, all the
shares of AIRNET Common Stock issuable upon the conversion of the Series B
Preferred Stock, the purchase of shares by SCP, and the conversion of the Senior
Secured Convertible Notes issued in connection herewith. AIRNET shall exercise
reasonable good faith efforts to cause the shares of AIRNET Common Stock
issuable upon the conversion of the Series B Preferred Stock, the purchase of
shares by SCP, and the conversion of the Senior Secured Convertible Notes to be
approved for listing on The Nasdaq Stock Market, subject to official notice of
issuance, prior to the Closing Date.

     5.10  Securities Filings. AIRNET shall file all reports required to be
filed by it under the Securities Act of 1933 and the Securities and Exchange Act
of 1934 and the rules and regulations adopted by the SEC thereunder, and all
applicable State securities laws.

     5.11  Further Assurances. The parties hereto agree to execute and deliver,
or cause to be executed and delivered, such further instruments or documents or
take such other action as may be reasonably necessary or convenient to carry out
the transactions contemplated hereby.

6.   CONDITIONS PRECEDENT TO OBLIGATIONS OF AIRNET

     The obligations of AIRNET with respect to actions to be taken on the
Closing Date are subject to the satisfaction or waiver on or prior to the
Closing Date of all of the conditions set forth in this Section 6. As of the
Closing Date, all conditions not satisfied shall be deemed to have been waived
by AIRNET unless they have objected by notifying INVESTORS in writing of such
objection on or before the consummation of the transactions on the Closing Date,
except that no such waiver shall be deemed to affect the survival of the
representations and warranties of INVESTORS contained in Sections 3 and 4
hereof.

     6.1   Representations and Warranties. All representations and warranties of
INVESTORS contained in the Agreement shall be true and correct in all material
respects as of the Closing Date as though such representations and warranties
had been made on and as of that date; and a certificate to the foregoing effect
dated the Closing Date and signed by the President or any Vice President of each
INVESTOR shall have been delivered to AIRNET.

     6.2   Performance of Obligations. All of the terms, covenants and
conditions of this Agreement to be complied with and performed by INVESTORS on
or before the Closing Date shall have been duly complied with and performed in
all material respects on or before the Closing Date; and certificates to the
foregoing effect dated on the Closing Date and signed by the President or any
Vice President of each INVESTOR shall have been delivered to AIRNET.

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<PAGE>

     6.3   No Litigation. No action or proceeding before a court or any other
Governmental Authority or body shall have been instituted or threatened to
restrain or prohibit the performance of this Agreement or the consummation of
the transactions contemplated herein.

     6.4   Consents and Approvals. All necessary consents of and filings
required to be obtained or made by INVESTORS with any Governmental Authority or
agency relating to the consummation of the transactions contemplated herein
shall have been obtained and made.

     6.5   Good Standing Certificates. INVESTORS shall have delivered to AIRNET
certificates, dated as of a date no earlier than 10 days prior to the Closing
Date, duly issued by the Secretaries of State of Texas, Maryland and Delaware,
as applicable, showing that INVESTORS are in good standing.

     6.6   Secretary's Certificate. AIRNET shall have received a certificate or
certificates, dated the Closing Date and signed by the corporate secretary (or
other authorized officer or representative) of each INVESTOR, certifying the
truth and correctness of attached copies of the INVESTORS' Certificate of
Incorporation or Certificate of Limited Partnership, as the case may be
(including amendments thereto), By-Laws, or Agreement of Limited Partnership, as
the case may be (including amendments thereto), and resolutions of the boards of
directors, or general partners, as the case may be, approving INVESTORS'
entering into this Agreement and the consummation of the transactions
contemplated hereby.

     6.7   INVESTOR'S Closing Deliveries. Each of the INVESTORS shall have
delivered that INVESTOR'S Closing Deliveries.

7.   CONDITIONS PRECEDENT TO OBLIGATIONS OF INVESTORS

     The obligations of the INVESTORS with respect to actions to be taken on the
Closing Date are subject to the satisfaction or waiver on or prior to the
Closing Date, of all of the conditions set forth in this Section 7. As of the
Closing Date all conditions not satisfied shall be deemed to have been waived by
INVESTORS unless it has objected by notifying AIRNET in writing of such
objection on or before the consummation of the transactions on the Closing Date,
except that no such waiver shall be deemed to affect the survival of the
representations and warranties of AIRNET contained in Section 2 hereof.

     7.1   Representations and Warranties. All the representations and
warranties of AIRNET contained in this Agreement shall be true and correct in
all material respects as of the Closing Date; and AIRNET shall have delivered to
INVESTORS certificates dated the Closing Date and signed by them to such effect.

     7.2   Performance of Obligations. All of the terms, covenants and
conditions of this Agreement to be complied with or performed by AIRNET on or
before the Closing Date shall have been duly performed or complied with in all
material respects on or before the Closing Date and AIRNET shall have delivered
to INVESTORS certificates dated the Closing Date and signed by them to such
effect.

     7.3   No Litigation. No action or proceeding before a court or any other
Governmental Authority or body shall have been instituted or threatened to
restrain or prohibit the performance of this Agreement or the consummation of
the transactions contemplated herein.

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<PAGE>

     7.4   Certificates. INVESTORS shall have received a copy of AIRNET's
Certificate or Articles of Incorporation, and all amendments thereto, certified
by the Delaware Secretary of State, and a copy of AIRNET's By-Laws, and all
amendments thereto, certified by AIRNET's corporate secretary.

     7.5   No Material Adverse Change. As of the Closing Date, no event or
circumstance shall have occurred with respect to AIRNET which would constitute a
Material Adverse Effect on AIRNET, and AIRNET shall not have suffered any
material loss or damages to any of its properties or assets, whether or not
covered by insurance, which change, loss or damage materially affects or impairs
the ability of AIRNET to conduct its business.

     7.6   Opinion of Counsel. INVESTORS shall have received an opinion from
Counsel to AIRNET, dated the Closing Date, substantially in the form attached
hereto as Exhibit 7.6.

     7.7   Consents and Approvals. All necessary consents of and filings
with any Governmental Authority relating to the consummation of the transactions
contemplated herein shall have been obtained and made and all necessary consents
and approvals of third parties, including those listed on Schedule 2.20, shall
have been obtained.

     7.8   Good Standing Certificates. AIRNET shall have delivered to
INVESTORS a certificate, dated as of a date no earlier than ten (10) days prior
to the Closing Date, duly issued by the appropriate Governmental Authority in
AIRNET's state of incorporation and, unless waived by INVESTORS, in each state
in which AIRNET is authorized to do business, showing AIRNET is in good standing
and authorized to do business and that all state franchise and/or income tax
returns and taxes for AIRNET for all periods prior to the Closing have been
filed and paid.

     7.9   Bill of Materials. Within three (3) days after the date of this
Agreement, AIRNET shall have provided INVESTORS with AIRNET's Bill of Materials,
prepared as at February 12, 2003, reflecting AIRNET's detailed costs of goods,
products and services with respect to all goods and services procured from its
vendors in the ordinary course of its business, together with AIRNET's revised
proposed Bill of Materials reflecting projected operations after the Closing
Date, and INVESTORS shall have been satisfied with the accuracy and
completeness, of the current Bill of Materials as well as with the
reasonableness and feasibility of the revised proposed Bill of Materials.

     7.10  The Nasdaq Stock Market Listing. Except as disclosed on Schedule
7.10, all necessary filings shall have been made as required, all listing
requirements shall have been met and all filing fees shall have been paid to
effect the continued listing of the AIRNET Common Stock on The Nasdaq Stock
Market prior to and after the Closing Date.

     7.11  AIRNET Closing Deliveries. AIRNET shall have delivered the AIRNET
Closing Deliveries.

     7.12  The Nasdaq Stock Market Additional Shares Notification for Listing.
All the shares of AIRNET Common Stock (A) issuable upon the conversion of the
Series B Preferred Stock issued in connection herewith, (B) issuable to the
INVESTORS upon the conversion of the Notes; and (C) issued to

                                       38

<PAGE>

SCP at Closing pursuant to this Agreement, shall have been approved as
additional shares of AIRNET Common Stock for listing upon notice of issuance on
The Nasdaq Stock Market.

     7.13  SEC/NASDAQ Compliance. AIRNET shall have complied with all applicable
filing requirements of the SEC and NASDAQ.

     7.14  Product Development. AIRNET shall have made reasonably satisfactory
progress, which shall be determined in INVESTORS' reasonable discretion, in the
development of the following products: (A) Adaptive Array; (B) Wildfire II; and
(C) AirSite 5b.

     7.15  Stockholder Approvals. The stockholders of AIRNET at its annual
meeting of stockholders shall have approved the transactions contemplated under
this Agreement, the adoption of the 8th Amended and Restated Certificate of
Incorporation, and the election of the directors nominated by the Board of
Directors of AIRNET in June, 2003.

8.   AFFIRMATIVE COVENANTS OF AIRNET AFTER CLOSING

     AIRNET covenants and agrees with INVESTORS that, until AIRNET has satisfied
all of its obligations to the INVESTORS under the terms of the Notes, AIRNET
will:

     8.1   Financial Statements.

           Furnish to INVESTORS in writing:

           (a) as soon as available but in no event more than 45 days after the
end of each calendar quarter, a consolidated and consolidating statement of
income and retained earnings of AIRNET for the quarter, a consolidated and
consolidating balance sheet of AIRNET as of the end of the quarter, and a
consolidated and consolidating statement of cash flows for the quarter, all with
supporting schedules, all on a consolidated and consolidating basis, including a
detailed breakout of general and administrative expenses, and a schedule of long
term debt and capital lease payments, and all in detail, format and scope
consistent with the practices of AIRNET prior to the date of this Agreement,
certified by the president or chief financial officer of AIRNET;

           (b) as soon as available but in no event more than 120 days after the
end of each fiscal year of AIRNET, a consolidated and consolidating statement of
income and retained earnings of AIRNET for such year, a consolidated and
consolidating statement of cash flows of AIRNET for such year, and a
consolidated and consolidating balance sheet of AIRNET as of the end of the
year, all with supporting schedules, all on a consolidated and consolidating
basis, all in detail, format and scope consistent with the practices of AIRNET
prior to the date of this Agreement, prepared in accordance with GAAP
consistently applied and examined and audited by Deloitte & Touche, or another
firm of independent certified public accountants reasonably satisfactory to
INVESTORS, accompanied by the unqualified opinion of such independent certified
public accountants with respect to the financial statements;

                                       39

<PAGE>

           (c) together with each report required by Subsection (a) and (b)
above, a certificate of AIRNET'S president or chief financial officer that no
Default or Event of Default then exists or if a Default or Event of Default
exists, the nature and duration thereof and AIRNET's intention with respect
thereto, and in addition, a statement from AIRNET's independent auditors,
together with the audit report described in Subsection (b) above that, in the
course of such audit, the auditors discovered no circumstances which they
believe would result in a Default or an Event of Default or if they discovered
any such circumstances, the nature and duration thereof;

           (d) as soon as available, but in no event more than 45 days after the
end of each quarter, a Covenant Compliance Certificate in the form to be agreed
upon among the parties at or before Closing;

           (e) as soon as available but in no event later than 30 days after
filing, AIRNET's federal and state income tax returns for the preceding fiscal
year;

           (f) promptly upon transmission thereof, copies of any financial
statements, proxy statements, reports and the like which AIRNET sends to its
shareholders and copies of all registration statements (with exhibits) and all
regular, special or periodic reports which AIRNET files with the SEC (or any
governmental body or agency succeeding to the functions of the United States
Securities and Exchange Commission) or with any national stock exchange on which
AIRNET's securities are listed and copies of all press releases and other
statements made available by AIRNET to the public concerning material
developments in the business of AIRNET.

     8.2   Taxes. Pay and discharge all taxes, assessments and governmental
charges upon AIRNET , its income and properties, prior to the date on which
penalties attach thereto unless and to the extent only that the same are being
diligently contested by AIRNET in good faith by appropriate proceedings,
provided, however, that (a) INVESTORS shall have been given reasonable prior
written notice of intention to contest, (b) nonpayment of the same will not, in
INVESTORS' sole discretion, materially impair any of the Collateral or
INVESTORS' rights or remedies with respect thereto or the prospect for full and
punctual payment of all of the obligations, (c) no notice of lien with respect
thereto is filed in any recording office, (d) AIRNET at all times effectively
stays or prevents any official or judicial sale of or action against any of the
Collateral by reason of nonpayment of the same, and (e) AIRNET establishes
reasonable reserves for any liabilities being contested and for expenses arising
out of such contest in accordance with GAAP.

     8.3   Corporate Existence, Continuation of Business and Compliance with
Laws. Maintain its corporate existence in good standing; maintain in good
standing its qualification to do business in each jurisdiction in which such
qualification is required by law; continue its business operations as now being
conducted; and comply with all applicable federal, State and local laws, rules,
ordinances, regulations and orders (including, without limitation, ERISA and all
Environmental Laws).

     8.4   Litigation. Promptly notify INVESTORS in writing of any action,
suit or proceeding at law or in equity by or before any court, governmental
agency or instrumentality which could result in any material adverse change in
the business, operations, prospects, properties or assets or in the condition,
financial or otherwise, of AIRNET.

                                       40

<PAGE>

     8.5   Extraordinary Loss; Change in Condition. Promptly notify INVESTORS in
writing of (a) any event causing extraordinary loss or depreciation of the value
of AIRNET's assets (whether or not insured) and the facts with respect thereto,
and (b) the occurrence of any Material Adverse Change in AIRNET's business,
assets, operations, business prospects or financial condition.

     8.6   Books and Records. Keep and maintain proper and current books and
records in accordance with GAAP consistently applied and permit access by
INVESTORS to, reproduction by INVESTORS, copying by INVESTORS from, and
verification (by such means, including audits, as INVESTORS may determine) by
INVESTORS of any information contained in, such books and records.

     8.7   Maintenance of Properties. Maintain all properties and improvements
necessary to the conduct of its business in good working order and condition,
ordinary wear and tear excepted, and cause replacements and repairs to be made
when necessary for the proper conduct of its business.

     8.8   Intellectual Property. Maintain, preserve and protect all
Intellectual Property, and rights thereto, which are necessary and material to
the conduct of the business of AIRNET as now conducted and as conducted in the
future, free of any conflict with the rights of any other person, except to the
extent that the reasonably anticipated costs of such activities would
significantly outweigh the reasonably anticipated benefits of such activities to
the business of AIRNET.

     8.9   Insurance.

           (a) Maintain or cause to be maintained comprehensive casualty
insurance policies insuring the Collateral and all other property of AIRNET
against loss by fire, theft, explosion, collision and such other risks, in such
amounts, subject to such loss deductible amounts and with such responsible
insurance companies as may be satisfactory to INVESTORS, in INVESTORS'
reasonable discretion exercised in good faith, and, in all events, against such
risks, in such amounts and subject to such loss deductible amounts as are
customary in AIRNET's industry, and in such minimum amounts that AIRNET will not
be deemed a coinsurer under applicable insurance laws, regulations, policies or
practices, and (ii) endorsements to such insurance policies satisfactory to
INVESTORS, in INVESTORS' reasonable discretion exercised in good faith, naming
INVESTORS as loss payees with respect to all Collateral insured thereunder.

           (b) Maintain or cause to be maintained (i) in the maximum amount
available, flood insurance policies insuring all property of the AIRNET which is
located in an area that has been, or subsequently is, identified as having
special flood or mudslide hazards and in which the sale of flood insurance has
been made available under the National Flood Insurance Act of 1968, as amended
from time to time, and (ii) endorsements to such insurance policies satisfactory
to INVESTORS, in the INVESTORS' discretion exercised in good faith, naming the
INVESTORS as loss payee with respect to all Collateral insured thereunder;

           (c) Maintain in amounts and with responsible insurance companies
satisfactory to INVESTORS, in INVESTORS' discretion exercised reasonably and in
good faith, such additional insurance against such risks and subject to such
loss deductible amounts as may be satisfactory to INVESTORS, in

                                       41

<PAGE>

INVESTORS' discretion exercised reasonably and in good faith, including, without
limitation, personal injury and property damage liability insurance, automobile
liability insurance, product liability insurance, worker's compensation
insurance, business interruption insurance, employee dishonesty insurance, and
directors' and officers' liability insurance, all such insurance in all events
to insure against such risks, in such amounts and subject to such loss
deductible amounts as are customary in AIRNET's industry, as applicable;

           (d) Maintain endorsements to all insurance policies of AIRNET naming
INVESTORS as additional insureds, and endorsements to such policies, providing
that such policies may not be canceled or materially altered, and that INVESTORS
may not be removed as loss payee or additional insured, without at least 30 days
prior written notice to INVESTORS; and

           (e) Deliver to INVESTORS from time to time, and periodically if
INVESTORS shall reasonably so require, evidence satisfactory to INVESTORS that
all insurance and policy endorsements required pursuant to this Agreement are in
full force and effect.

     8.10  Information.

           (a) Deliver to INVESTORS promptly upon INVESTORS' reasonable request,
and periodically if INVESTORS shall so require, such written statements,
schedules or reports (which shall be certified if required by INVESTORS) in such
form, containing such information and accompanied by such documents as may be
reasonably satisfactory to INVESTORS from time to time concerning the
Collateral, AIRNET's business, assets, operations, business products or
financial condition or any other matter or matters, including, without
limitation, an independent auditor's management letter (if prepared) and a
compliance certificate signed by AIRNET's chief executive officer or chief
financial officer, and permit INVESTORS, their agents and designees, to discuss
AIRNET's business, assets, operations, business prospects or financial condition
with AIRNET's directors, officers, employees or agents; and

           (b) Promptly notify INVESTORS in writing if any financial statement,
schedule, report, certificate or information previously or hereafter supplied to
INVESTORS by or on behalf of AIRNET, including, without limitation, any of the
same previously or hereafter supplied to INVESTORS pursuant to or in connection
with this Agreement or any transaction involving or affecting, AIRNET, shall, to
AIRNET's knowledge, subsequently become inaccurate or misleading in any material
respect.

     8.11  Notice of Event of Default. Immediately notify INVESTORS of the
occurrence of any Default or any Event of Default and the facts with respect
thereto.

     8.12  Employee Benefit Plans.

           (a) At all times administer, maintain and operate, each of its
Benefit Plans in conformity with all applicable provisions of ERISA and other
federal and state statutes relating to employee benefit plans (including the
continuation coverage requirements of ERISA and the Code for group health plans
under the Code under ERISA;

                                       42

<PAGE>

           (b) At all times make all required contributions and premium payments
under each Benefit Plan for all periods after the date hereof;

           (c) Comply with all applicable reporting, disclosure and other
requirements of ERISA and the Code as they relate to Benefit Plans, and, if
requested in writing by INVESTORS, furnish INVESTORS with copies of all reports
filed in connection therewith promptly after the filing thereof.

     8.13  Hazardous Substances; Contamination.

           (a) Give notice to INVESTORS immediately upon AIRNET's acquiring
knowledge of the release of any Hazardous Materials on any property owned,
leased, occupied or controlled by AIRNET or of any contamination by Hazardous
Materials;

           (b) Promptly comply with any laws requiring the removal, treatment or
disposal of Hazardous Materials or Hazardous Materials contamination and provide
INVESTORS with reasonably satisfactory evidence of such compliance; provided,
however, that nothing contained herein shall prohibit AIRNET from contesting
liability for any such release or contamination prior to undertaking any
removal.

           (c) Provide INVESTORS, within thirty (30) days after a demand by
INVESTORS, with financial assurance evidencing to INVESTORS' reasonable
satisfaction that the necessary funds are available to pay the cost of removing,
treating, and disposing of such Hazardous Materials or Hazardous Materials
contamination and discharging any Lien which may be established as a result
thereof on any property owned or controlled by AIRNET or for which AIRNET is
responsible; and

           (d) Defend, indemnify and hold harmless INVESTORS and their agents,
employees, trustees, successors and assigns from any and all claims which may
now or in the future (whether before or after the termination of this Agreement)
be asserted as a result of the presence of any Hazardous Materials on any
property owned or controlled by AIRNET or for which AIRNET is responsible for
any Hazardous Materials contamination. AIRNET acknowledges and agrees that this
indemnification shall survive the termination of this Agreement and the payment
and performance of all of the other obligations hereunder.

     8.14  Securities Filings. AIRNET shall file all reports required to be
filed by it under the Securities Act of 1933 and the Securities and Exchange Act
of 1934 and the rules and regulations adopted by the SEC thereunder, and all
applicable State securities laws.

9.   NEGATIVE COVENANTS

     AIRNET covenants and agrees with INVESTORS that, until satisfaction by
AIRNET of all of its obligations under the Notes, AIRNET will not, directly or
indirectly, without INVESTORS' prior written consent:

     9.1   Indebtedness.

     Create, incur, assume or permit to exist any Indebtedness except:

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<PAGE>

           (a) Indebtedness to INVESTORS;

           (b) Current indebtedness incurred in the ordinary course of business;

           (c) Existing indebtedness disclosed herein or previously disclosed by
AIRNET to INVESTORS in writing; or

           (d) Purchase money indebtedness secured by purchase money liens on
the Collateral incurred in the ordinary course of business.

     9.2   Liens. Create, incur, assume or permit to exist, directly or
indirectly, any Lien upon AIRNET's property or assets, now owned or hereafter
acquired by AIRNET, except for Permitted Liens, as defined in Section 5.3(e),
and except as permitted under Section 9.1(d), above.

     9.3   Merger, Sale of Assets.

           (a) Dissolve or liquidate, or become a party to any merger or
consolidation,

           (b) Sell, assign, pledge, or otherwise transfer in a single
transaction or a series of transactions, all, or substantially all of AIRNET's
property, assets or business, or a material portion (10% or more) thereof if the
sale is outside AIRNET's ordinary course of business; or

           (c) Acquire by purchase, lease or otherwise substantially all of the
property, assets or business of or more than 50% of the outstanding stock or
voting power of any other entity;

     9.4   Guaranty. Except as otherwise permitted under this Section 9.04,
guarantee or otherwise in any way become or be responsible for obligations or
indebtedness of any other person, whether by agreement to purchase the
indebtedness of any other person, by agreement for the furnishing of funds to
any other person for the purchase of goods, supplies or services, or by way of
stock purchase, capital contribution, advance or loan for the purpose of paying
or discharging Indebtedness of any other person, or otherwise, except that
AIRNET may endorse negotiable drafts for collection in the ordinary course of
business.

     9.5   Dividends, Bonuses or Shareholder Distributions. During any fiscal
year, declare or pay dividends, or shareholder distributions, or, except as
approved by the Board of Directors, declare or pay bonuses to employees.

     9.6   Fiscal Year. Change AIRNET's fiscal year.

     9.7   Advances for Employee Expenses. Make any loan or advance to any
employee for any reason other than to cover anticipated travel or other business
expenses in the ordinary course of business.

     9.8   Change of Name. Change the name of AIRNET.

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<PAGE>

     10.9  Trade Names. Use any trade name other than AIRNET's true corporate
name.

     9.10  Subsidiaries. Form, acquire or invest in any subsidiary.

     9.11  Issuance of Capital Stock, Etc. Except in connection with the
issuance of stock pursuant to the exercise of stock options or warrants
outstanding on the date hereof or contemplated by this Agreement, issue, or
agree or commit to issue, any shares of capital stock, or issue or grant any
option, warrant, security or other rights (contingent or otherwise) to purchase
or acquire shares of its capital stock, or any bond, debenture, note or other
instrument or obligation which has the power to vote in respect to the corporate
affairs and management of AIRNET; provided, however, that with respect to the
30,742,986 shares of Common Stock authorized for issuance under AIRNET's Stock
Option Plan: (a) AIRNET may grant options to purchase 21,766,212 shares at any
time after the Closing; (b) AIRNET may grant options to purchase up to 6,327,475
shares as and when the INVESTORS elect to convert accrued interest under the
Notes into shares of Common Stock, which grants may not exceed 10% of the number
of shares issued to the INVESTORS upon conversion of such interest; and (c)
AIRNET may grant options to purchase up to 379,700 shares as and when any of the
warrants outstanding on the date hereof are exercised, which grants may not
exceed 10% of the number of shares issued upon the exercise of such warrants,
with all of the foregoing numbers subject to appropriate adjustment in the event
of stock splits or combinations and the like.

     9.12  Employee Benefit Plans.

     With respect to any Benefit Plan:

           (a) Engage, or knowingly permit any party in interest (as defined in
Section 3(14) of ERISA) or any disqualified person (as defined in Section
4975(e)(2) of the Code) to engage, in any prohibited transaction;

           (b) Incur any accumulated funding deficiency under Section 302 of
ERISA or Section 412 of the Code, whether or not waived;

           (c) Take any action which would adversely affect the qualification of
any Benefit Plan.

     9.13  Stock Redemptions. Purchase, redeem, retire or otherwise acquire for
value any shares of AIRNET's capital stock or any other equity interest in
AIRNET.

     9.14  Investments. Except pursuant to normal cash management and treasury
policies and functions, make any capital contribution to, make any loan or
advance to, purchase or acquire a beneficial interest in any stock, securities
or evidences of Indebtedness of, or make any investment or acquire any interest
in, any Person, in excess of $50,000 in the aggregate.

     9.15  Change in Compensation or Workforce. Except with the approval of the
Board of Directors of AIRNET, increase the rate or amount of compensation
payable to management-level

                                       45

<PAGE>

employees (except to reflect cost of living adjustments); increase the level of
benefits provided under any Employee Benefit Plan or otherwise modify or amend
any Employee Benefit Plan in a manner that would increase the costs to AIRNET
thereunder; adopt any new Employee Benefit Plan or bonus program, or other
compensation plan; or hire any new employee whose rate of compensation exceeds
$100,000 per annum, except to replace a former employee performing in a
comparable position for comparable compensation.

10.  DEFAULTS AND REMEDIES

     10.1  An "Event of Default" occurs if:

           (a) AIRNET defaults in the payment of any principal or interest under
either of the Notes when the same shall become due, either by the terms thereof
or otherwise as herein provided and the default continues for a period of five
(5) business days after notice of such default is given to AIRNET; or

           (b) AIRNET defaults in the performance or observance of any other
material agreement, term or condition contained in the Notes, the Security
Agreement, the Escrow Agreement, or the Collateral Assignment Agreement,
relating to the perfection of the security interest granted to INVESTORS or
preservation of the secured assets of AIRNET and such default shall not have
been remedied within five (5) days after written notice of such default shall
have been received by AIRNET (regardless of the source of such notice); or

           (c) AIRNET shall default in the payment of any principal of, or
premium, if any, or interest on, any other indebtedness in excess of $250,000 or
obligation with respect to borrowed money after expiration of any grace or cure
period or shall default in the performance of any material term of any
instrument evidencing such Indebtedness or of any mortgage, indenture or
agreement relating thereto after expiration of any grace or cure period, and the
effect of such default is to cause or to permit the holder or holders of such
obligation to cause, such Indebtedness or obligation to become due and payable
prior to its stated maturity; or

           (d) AIRNET, pursuant to or within the meaning of any Bankruptcy Law:

               (i)   commences a voluntary case,

               (ii)  consents to the entry of an order for relief against it in
an involuntary case,

               (iii) consents to the appointment of a Custodian of it or for all
or substantially all of its property,

               (iv)  makes a general assignment for the benefit of its
creditors, or

               (v)   is the debtor in an involuntary case (initiated by parties
other than the INVESTORS) which is not dismissed within thirty (30) days of the
commencement thereof, or

                                       46

<PAGE>

           (e) A court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:

               (i)   provides for relief against AIRNET in an involuntary case,

               (ii)  appoints a Custodian of AIRNET for all or substantially all
of its property, or

               (iii) orders the liquidation of AIRNET,

           (f) A final judgment for the payment of money in an amount in excess
of $50,000 shall be rendered against AIRNET (other than any judgment as to which
a reputable insurance company shall have accepted full liability in writing) and
shall remain undischarged for a period (during which execution shall not be
effectively stayed) of 20 days after the date on which the right to appeal has
expired;

           (g) Any representation or warranty made by AIRNET in this Agreement,
the Security Agreement or in any other document or instrument furnished in
connection with the transactions contemplated hereby shall prove to be
materially false or incorrect on the date as of which made and such
misrepresentation or inaccuracy results, or is likely to result, in a Material
Adverse Effect;

           (h) AIRNET breaches any covenant in this Agreement (i) and that
breach results, or is likely to result, in a Material Adverse Effect, and (ii)
if such breach is capable of being cured or remedied, AIRNET fails to cure or
remedy such breach to the reasonable satisfaction of INVESTORS within fifteen
(15) business days after written notice from an INVESTOR, provided that for
purposes of this paragraph (h), a breach of any of Sections 8.5, 8.8, 9.1, 9.2,
9.3, 9.4, 9.5, 9.10. 9.11, 9.13 and 9.14 shall be deemed to be not capable of
being cured or remedied; and further provided that the second breach in any
calendar year of Section 8.1(d) shall be deemed to be not capable of being cured
or remedied; and further provided that a breach of Section 8.2 which arises as a
result of the failure to comply with any of clauses (b), (c), or (d) thereof
shall be deemed to be not capable of being cured or remedied.

           (i) AIRNET shall take any action resulting, or likely to result, in
or shall suffer the occurrence of an event constituting or likely to result in a
Material Adverse Effect and AIRNET shall not cure the existence of such action
or event within fifteen (15) business days after notice from both TECORE and SCP
of the existence of such action or event.

Upon (x) the occurrence of any Event of Default described in paragraphs (c) or
(d), the unpaid principal amount of and accrued interest on the Notes shall
automatically become due and payable, without presentment, demand, protest or
notice of any kind, all of which are hereby waived by AIRNET, and (y) upon the
occurrence of any other Event of Default, in addition to any other rights,
powers and remedies permitted by law or in equity, the INVESTORS may, at their
option, by notice in writing to AIRNET, declare the Notes to be, and the Notes
shall thereupon be and become, immediately due and payable, together with
interest accrued thereon and all other sums due hereunder, without presentment,
demand, protest or other notice of any kind, all of which are waived by AIRNET.
In the event that the unpaid principal amount of and accrued interest on the
Notes shall have become due and payable pursuant to clause (x) or clause

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<PAGE>

(y), then the INVESTORS shall have no further obligation to make the payments on
account of the purchase price of the Notes set forth in Section 1.1.

     Upon the occurrence of any Event of Default, the holders of the Notes may
proceed to protect and enforce their rights by an action at law, suit in equity
or other appropriate proceeding, whether for the specific performance of any
agreement contained herein or in the Note held by them, for an injunction
against a violation of any of the terms hereof or thereof, or for the pursuit of
any other remedy which it may have by virtue of this Agreement, the Security
Agreement or pursuant to applicable law. AIRNET shall pay to the holders of the
Notes upon demand the reasonable costs and expenses of collection and of any
other actions referred to in this Article, including without limitation
reasonable attorneys' fees, expenses and disbursements.

     No course of dealing and no delay on the part of the holders of the Notes
in exercising any of their rights shall operate as a waiver thereof or otherwise
prejudice the rights of such holders, nor shall any single or partial exercise
of any right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder. No right, power or
remedy conferred hereby or by the Notes on the holders thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or
now or hereafter available at law, in equity, by statute or otherwise.

     10.2  For purposes of this Article, the following definitions shall apply:

           "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or
state law for the relief of debtors.

           "Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

11.  INDEMNIFICATION

     AIRNET and INVESTORS agree as follows:

     11.1  General Indemnification by AIRNET. AIRNET covenants and agrees that,
in addition to, and not in lieu of, any remedies provided to INVESTORS in
Section 10, AIRNET will indemnify, defend, protect and hold harmless INVESTORS
at all times, from and after the date of this Agreement until the Expiration
Date, from and against all claims, damages, actions, suits, proceedings,
demands, assessments, adjustments, costs and expenses (including specifically,
but without limitation, reasonable attorneys' fees and reasonable expenses of
investigation) (collectively, "Losses") incurred by INVESTORS as a result of or
arising from:

           (a) Any breach of the representations and warranties of AIRNET set
forth herein or on the schedules or certificates delivered in connection
herewith;

           (b) Any breach of any covenant or agreement on the part of AIRNET
under this Agreement;

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<PAGE>

     11.2  Indemnification by INVESTORS. Each of the INVESTORS,
severally and not jointly, covenants and agrees that it will indemnify, defend,
protect and hold harmless AIRNET at all times from and after the date of this
Agreement until the Expiration Date, from and against all claims, damages,
actions, suits, proceedings, demands, assessments, adjustments, costs and
expenses (including specifically, but without limitation, reasonable attorneys'
fees and expenses of investigation) incurred by AIRNET as a result of or arising
from (a) any breach by that INVESTOR of its representations and warranties set
forth herein or on the schedules or certificates delivered in connection
herewith, or (b) any breach of any agreement on the part of that INVESTOR under
this Agreement.

     11.3  Third Person Claims. Promptly after any party hereto (hereinafter the
"Indemnified Party") has received notice of or has knowledge of any claim by a
Third Person or of the commencement of any action or proceeding by a Person not
a party to this Agreement (a "Third Person"), the Indemnified Party shall, as a
condition precedent to a claim with respect thereto being made against any party
obligated to provide indemnification pursuant to Section 11.1 or 11.2 hereof
(hereinafter the "Indemnifying Party"), give the Indemnifying Party written
notice of such claim or the commencement of such action or proceeding. Such
notice shall state the nature and the basis of such claim and a reasonable
estimate of the amount thereof. The Indemnifying Party shall have the right to
defend and settle, at its own expense and by its own counsel, any such matter so
long as the Indemnifying Party pursues the same in good faith and diligently,
provided that the Indemnifying Party shall not settle any criminal proceeding
without the written consent of the Indemnified Party, such consent not to be
unreasonably withheld or delayed. If the Indemnifying Party undertakes to defend
or settle, it shall promptly notify the Indemnified Party of its intention to do
so, and the Indemnified Party shall cooperate, at the Indemnifying Party's
expense, with the Indemnifying Party and its counsel in the defense thereof and
in any settlement thereof. Such cooperation shall include, but shall not be
limited to, furnishing the Indemnifying Party with any books, records or
information reasonably requested by the Indemnifying Party that are in the
Indemnified Party's possession or control. All Indemnified Parties shall
endeavor to use the same counsel, which shall be the counsel selected by the
Indemnifying Party, provided that if counsel to the Indemnifying Party shall
have a conflict of interest in the opinion of such counsel that prevents counsel
for the Indemnifying Party from representing the Indemnified Party, the
Indemnified Party shall have the right to participate in such matter through
counsel of its own choosing and the Indemnifying Party will reimburse the
Indemnified Party for the reasonable expenses of its counsel and experts. After
the Indemnifying Party has notified the Indemnified Party of its intention to
undertake to defend or settle any such asserted liability, and for so long as
the Indemnifying Party diligently pursues such defense, the Indemnifying Party
shall not be liable for any additional legal expenses incurred by the
Indemnified Party in connection with any defense or settlement of such asserted
liability, except (i) as set forth in the preceding sentence and (ii) to the
extent such participation is requested by the Indemnifying Party, in which event
the Indemnified Party shall be reimbursed by the Indemnifying Party for
reasonable additional legal expenses and out-of-pocket expenses. If the
Indemnifying Party desires to accept a final and complete settlement of any such
Third Person claim and the Indemnified Party refuses to consent to such
settlement, then the Indemnifying Party's liability under this Section with
respect to such Third Person claim shall be limited to the amount so offered in
settlement to said Third Person, plus all indemnifiable costs and expenses
incurred to date, the Indemnifying Party shall be relieved of its duty to defend
and shall tender the Third Person claim back to the Indemnified Party, who shall
thereafter, at its own expense, be responsible for the defense and negotiation
of such Third Person claim. If the Indemnifying Party does not undertake to
defend such matter to which the Indemnified Party is entitled to indemnification
hereunder, or fails diligently to pursue such

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<PAGE>

defense, the Indemnified Party may undertake such defense through counsel of its
choice, at the cost and expense of the Indemnifying Party, and the Indemnified
Party may settle such matter, and the Indemnifying Party shall reimburse the
Indemnified Party for the amount paid in such settlement and any other
liabilities or expenses incurred by the Indemnified Party in connection
therewith, provided, however, that under no circumstances shall the Indemnified
Party settle any Third Person claim without the written consent of the
Indemnifying Party, which consent shall not be unreasonably withheld or delayed.
All settlements hereunder shall effect a complete release of the Indemnified
Party, unless the Indemnified Party otherwise agrees in writing. The parties
hereto will make appropriate adjustments for any Tax benefits, Tax detriments or
insurance proceeds in determining the amount of any indemnification obligation
under this Section, provided that no Indemnifying Party shall be obligated to
seek any payment pursuant to the terms of any insurance policy.

     11.4  Limitations on Indemnification. INVESTORS and the other Persons or
entities indemnified pursuant to Section 11.1 shall not assert any claim other
than a Third Person claim for indemnification hereunder against AIRNET until
such time as, and with respect to any individual claim, unless and until such
claim or claims, individually or in the aggregate, exceed Twenty Five Thousand
Dollars ($25,000). AIRNET shall not assert any claim for indemnification
hereunder against either of the INVESTORS until such time as, and solely to the
extent that, the aggregate of all claims which AIRNET may have against that
INVESTOR exceeds Twenty Five Thousand Dollars ($25,000).

12.  TERMINATION OF AGREEMENT

     12.1  Termination. This Agreement may be terminated at any time prior to
the Closing Date solely:

           (a) by mutual written consent of INVESTORS and AIRNET;

           (b) by either of the INVESTORS, or by AIRNET, if the transactions
contemplated by this Agreement to take place at the Closing shall not have been
consummated by July 31, 2003, unless the failure of such transactions to be
consummated is due to the willful failure of the party seeking to terminate this
Agreement to perform any of its obligations under this Agreement to the extent
required to be performed by it prior to or on the Closing Date; or

           (c) by AIRNET, if a material breach or default shall be made by
either of the INVESTORS in the observance or in the due and timely performance
of any of the covenants, agreements or conditions contained herein, and the
curing of such default shall not have been made on or before the Closing Date;
or

           (d) by either of the INVESTORS, if a material breach or default shall
be made by AIRNET in the observance or in the due and timely performance of any
of the covenants, agreements or conditions contained herein, and the curing of
such default shall not have been made on or before the Closing Date; or

           (e) by either of the INVESTORS, in the event of the delisting of the
AIRNET Common Stock from the NASDAQ Stock Market, except for the potential
delisting from NMS and transfer to

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<PAGE>

NASDAQ's Small Cap as a result of AIRNET's failure to maintain the minimum bid
price criteria of $1.00, or in the event that AIRNET shall have failed to
satisfy one or more other conditions to continued listing of such Common Stock
on NASDAQ's Small Cap pursuant to written notice from NASDAQ dated after the
date of this Agreement, such that, with the passage of time, the Common Stock
may be delisted at any time after the Closing Date, except with respect to the
minimum bid price criteria of $1.00, which could be cured by a reverse stock
split and except with respect to the minimum net equity condition.

           (f) by AIRNET, pursuant to Section 5.4 of this Agreement.

     12.2  Liabilities in Event of Termination. The termination of this
Agreement will in no way limit any obligation or liability of any party based on
or arising from a breach or default by such party with respect to any of its
representations, warranties, covenants or agreements contained in this
Agreement, including, but not limited to, legal and audit costs and out of
pocket expenses.

13.  GENERAL

     13.1  Cooperation. AIRNET and INVESTORS shall each deliver or cause to be
delivered to the other on the Closing Date, and at such other times and places
as shall be reasonably agreed to, such additional instruments as the other may
reasonably request for the purpose of carrying out this Agreement. AIRNET will
cooperate and use its reasonable efforts to have the present officers, directors
and employees of AIRNET cooperate with INVESTORS on and after the Closing Date
in furnishing information, evidence, testimony and other assistance in
connection with any Tax Return filing obligations, actions, proceedings,
arrangements or disputes of any nature with respect to matters pertaining to all
periods prior to the Closing Date.

     13.2  Successors and Assigns. This Agreement and the rights of the parties
hereunder may not be assigned (including by operation of law) without the
consent of the other parties and shall be binding upon and shall inure to the
benefit of the parties hereto, and the successors of INVESTORS and AIRNET.

     13.3  Entire Agreement. This Agreement (including the Schedules, exhibits
and annexes attached hereto) and the documents delivered pursuant hereto
constitute the entire agreement and understanding among AIRNET and INVESTORS and
supersede any prior agreement and understanding relating to the subject matter
of this Agreement. This Agreement, upon execution, constitutes a valid and
binding agreement of the parties hereto enforceable in accordance with its terms
and may be modified or amended only by a written instrument executed by AIRNET
and INVESTORS.

     13.4  Counterparts; Facsimile Signatures. This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original and all of which together shall constitute but one and the same
instrument. Signatures may be exchanged by telecopy, and each party agrees that
it will be bound by its telecopied signature and that it accepts the telecopied
signatures of the other parties to this Agreement.

     13.5  Brokers and Agents. Each party represents and warrants that it
employed no broker or agent in connection with this transaction and agrees to
indemnify the other parties hereto against all loss,

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<PAGE>

cost, damages or expense arising out of claims for fees or commissions of
brokers employed or alleged to have been employed by such indemnifying party.

     13.6  Expenses. Upon request from INVESTORS, AIRNET shall promptly
reimburse INVESTORS: (a) for all reasonable legal fees and expenses related to
the transaction contemplated herein incurred after December 1, 2002; and (b) up
to Twenty-Five Thousand Dollars ($25,000) for each INVESTOR, for financial
consulting fees related to the transaction contemplated herein; up to a maximum
of $200,000 in the aggregate for (a) and (b) above to both INVESTORS, allocated
between the INVESTORS in proportion to the amount of each Note. INVESTORS may
elect to deduct such expenses from the amount to be paid to AIRNET at Closing or
any future payments on account of the purchase price of the Notes. AIRNET shall
be permitted to pay its legal fees relating to this Agreement and the
transactions contemplated hereby at the Closing.

     13.7  Notices. All notices or communications required or permitted
hereunder shall be in writing and shall be deemed to have been given when
personally delivered or upon receipt if sent by first class certified mail,
return receipt requested or the next business day if sent by telex (receipt
confirmed and followed up by one of the other delivery methods discussed herein
as well), or upon delivery if sent by express mail, in each case postage prepaid
and addressed as follows:

           (a) If to TECORE:

               TECORE, Inc.
               7165 Columbia Gateway Drive
               Columbia, Maryland 21046
               Attention: Mr. Jay Salkini

               with copies to:

               Whiteford, Taylor & Preston L.L.P.
               Seven Saint Paul Street
               Baltimore, Maryland 21202
               Attn: Robert B. Curran, Esq.

           (b) If to SCP:

               SCP Private Equity Partners II, LP
               300 Building
               435 Devon Park Drive
               Wayne, Pennsylvania 19087
               Attn: James W. Brown

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<PAGE>

               with copies to:

               Saul Ewing, LLP
               1200 Liberty Ridge Drive
               Wayne, Pennsylvania 19087
               Attn: Spencer W. Franck, Jr., Esq.

           (c) If to AIRNET:

               AirNet Communications Corporation
               3950 Dow Road
               Melbourne, Florida 32934
               Attn: Mr. Glenn Ehley

               with copies to:

               Edwards & Angell, LLP
               One North Clematis Street
               Suite 400 West
               Palm Beach, Florida 33401
               Attn: John G. Igoe, Esq.

or to such other address or counsel as any party hereto shall specify pursuant
to this Section 11.7 from time to time.

     13.8  Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Delaware, except that matters herein within the purview
of the matters covered by the General Corporation Law of the State of Delaware
shall be governed by such General Corporation Law, in each case without
reference to conflicts of laws principles.

     13.9  Exercise of Rights and Remedies. Except as otherwise provided herein,
no delay of or omission in the exercise of any right, power or remedy accruing
to any party as a result of any breach or default by any other party under this
Agreement shall impair any such right, power or remedy, nor shall it be
construed as a waiver of or acquiescence in any such breach or default, or of
any similar breach or default occurring later; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
occurring before or after that waiver.

     13.10 Time. Time is of the essence with respect to this Agreement.

     13.11 Reformation and Severability. In case any provision of this Agreement
shall be invalid, illegal or unenforceable, it shall, to the extent possible, be
modified in such manner as to be valid, legal and enforceable but so as to most
nearly retain the intent of the parties, and if such modification is not
possible, such provision shall be severed from this Agreement, and in either
case the validity, legality and enforceability of the remaining provisions of
this Agreement shall not in any way be affected or impaired thereby.

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     13.12 Remedies Cumulative. No right, remedy or election given by any term
of this Agreement shall be deemed exclusive but each shall be cumulative with
all other rights, remedies and elections available at law or in equity.

     13.13.Captions. The headings of this Agreement are inserted for
convenience only, shall not constitute a part of this Agreement or be used to
construe or interpret any provision hereof.

     13.14 Amendments and Waivers. Any term of this Agreement may be amended and
the observance of any term of this Agreement may be waived only with the written
consent of all of the parties. Any amendment or waiver effected in accordance
with this Section 13.14 shall be binding upon each of the parties hereto and
their successors or assigns.

     IN WITNESS WHEREOF, the parties hereto have executed this Stock Purchase
Agreement as of the day and year first above written.

                                        TECORE:

                                        TECORE, INC.

                                        By:        /s/ Jay Salkini
                                            -----------------------------------

                                        SCP:

                                        SCP PRIVATE EQUITY PARTNERS II, LP

                                        By: SCP Private Equity II,
                                            General Partner, L.P.,
                                            its General Partner

                                        By:        /s/ James W. Brown
                                            -----------------------------------
                                                        a Manager

                                        AIRNET:

                                        AIRNET COMMUNICATIONS CORPORATION

                                        By:          /s/ Glenn Ehley
                                            -----------------------------------
                                                  as its President and CEO

                                       54

<PAGE>

                                   Exhibit A

                           EIGHTH AMENDED AND RESTATED

                          CERTIFICATE OF INCORPORATION

                                       OF

                        AIRNET COMMUNICATIONS CORPORATION

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I..................................................................1

ARTICLE II.................................................................1

ARTICLE III................................................................1

ARTICLE IV.................................................................1

A.     CLASSES OF STOCK.................................................. .1
B.     RIGHTS, PREFERENCES, PRIVILEGES AND RESTRICTIONS OF COMMON
       STOCK...............................................................2
   1.  Dividends...........................................................2
   2.  Stock Split, Reclassification, etc..................................2
   3.  Liquidation.........................................................2
   4.  Voting..............................................................3
   5.  No Pre-emptive or Subscription Rights...............................3
C.     RIGHTS, PREFERENCES, PRIVILEGES AND RESTRICTIONS OF PREFERRED
       STOCK...............................................................3
D.     RIGHTS, PREFERENCES, PRIVILEGES AND RESTRICTIONS OF SENIOR
       SECURED CONVERTIBLE NOTES...........................................3

ARTICLE V..................................................................4

ARTICLE VI.................................................................4

ARTICLE VII................................................................5

ARTICLE VIII...............................................................5

ARTICLE IX.................................................................6

ARTICLE X..................................................................6

                                      -i-

<PAGE>

                           EIGHTH AMENDED AND RESTATED
                          CERTIFICATE OF INCORPORATION
                                       OF
                        AIRNET COMMUNICATIONS CORPORATION

Pursuant to the provisions of Sections 242 and 245 of the General Corporation
Law of Delaware, the undersigned Corporation adopts the following Eighth Amended
and Restated Certificate of Incorporation:

     FIRST:  The name of the Corporation is AirNet Communications Corporation
(the "Corporation").

     SECOND: The following Eighth Amended and Restated Certificate of
Incorporation was adopted by the Board of Directors and the stockholders of the
Corporation in accordance with Sections 242 and 245 of the General Corporation
Law of Delaware.

The Restated Certificate of Incorporation of the Corporation (originally filed
under the name of Overture Systems, Inc. incorporated on January 11, 1994), as
previously amended, is hereby deleted in its entirety and is amended and
restated as follows:

                                    ARTICLE I
                                    ---------

     The name of the Corporation is AirNet Communications Corporation.

                                   ARTICLE II
                                   ----------

     The registered office of the Corporation in the State of Delaware is
located at The Prentice-Hall Corporation System, Inc., 1013 Centre Road, in the
City of Wilmington, County of New Castle. The name of the registered agent at
such address is The Prentice-Hall Corporation System, Inc.

                                   ARTICLE III
                                   -----------

     The purpose of the Corporation is to engage in any lawful act or activity
for which a corporation may be organized under the General Corporation Law of
Delaware.

                                   ARTICLE IV
                                   ----------

     A.  CLASSES OF STOCK. The aggregate number of shares of capital stock which
the Corporation shall have authority to issue is 403,184,713 shares, consisting
of two classes of capital stock:

         (a) 400,000,000 shares of Common Stock, par value $.001 per share
("Common Stock");

                                      -1-

<PAGE>

         (b) 3,184,713 shares of Preferred Stock, par value $.01 per share
("Preferred Stock").

     B.  RIGHTS, PREFERENCES, PRIVILEGES AND RESTRICTIONS OF COMMON STOCK.
Notwithstanding any provision to the contrary contained herein, the rights,
preferences, privileges and restrictions granted to and imposed upon Common
Stock are set forth in this Article IV.B. Except as otherwise expressly provided
in this Article IV.B., all shares of Common Stock shall be identical and shall
entitle the holders thereof to the same rights and privileges.

     1.  Dividends. When, as and if dividends on Common Stock are declared by
the Corporation's Board of Directors, whether payable in cash, in property or in
securities of the Corporation, the holders of Common Stock shall be entitled to
share equally in and to receive, in accordance with the number of shares of
Common Stock held by each such holder, all such dividends.

     Dividends payable under this Article IV.B. shall be paid to the holders of
record of the outstanding Common Stock as their names shall appear on the stock
register of the Corporation on the record date fixed by the Board of Directors
of the Corporation in advance of declaration and payment of each dividend. Any
Common Stock issued as a dividend pursuant to this Article IV.B. shall, when so
issued, be duly authorized, validly issued, fully paid and non-assessable and
free of all liens and charges. The Corporation shall not issue fractions of
Common Stock on payment of such dividend but shall issue a whole number of
shares to such holder of Common Stock rounded up or down in the Corporation's
sole discretion to the nearest whole number, without compensation to the
stockholder whose fractional share has been rounded down or from any stockholder
whose fractional share has been rounded up.

     Notwithstanding anything contained herein to the contrary, no dividends on
Common Stock shall be declared by the Corporation's Board of Directors or paid
or set apart for payment by the Corporation at any time that such declaration,
payment, or setting apart is prohibited by applicable law.

     2.  Stock Split, Reclassification, etc. The Corporation shall not in any
manner subdivide (by any stock split, reclassification, stock dividend,
recapitalization or otherwise) or combine the outstanding shares of one class of
Common Stock unless the outstanding shares of all classes of Common Stock shall
be proportionately subdivided or combined.

     3.  Liquidation. Upon any voluntary or involuntary liquidation, dissolution
or winding-up of the affairs of the Corporation, after payment shall have been
made to holders of outstanding Preferred Stock, if any, of the full amount of
which they are entitled pursuant to this Certificate of Incorporation and any
resolutions that may be adopted from time to time by the Corporation's Board of
Directors, in accordance with Article IV.C. below (for the purpose of fixing the
voting rights, designations, preferences and relative participating, optional or
other special rights of any class or series of Preferred Stock), the holders of
Common Stock shall be entitled, to the exclusion of the holders of Preferred
Stock, if any, to share ratably, in accordance with the number of shares of
Common Stock held by each such holder, in all remaining assets of

                                      -2-

<PAGE>

the Corporation available for distribution among the holders of Common Stock,
whether such assets are capital, surplus, or earnings. For the purposes of this
Article IV.B., neither the consolidation or merger of the Corporation with or
into any other corporation or corporations in which the stockholders of the
Corporation receive capital stock and/or other securities (including debt
securities) of the acquiring corporation (or of the direct or indirect parent
corporation of the acquiring corporation), nor the sale, lease or transfer by
the Corporation of all or any part of its assets, nor the reduction of the
capital stock of the Corporation, shall be deemed to be a voluntary or
involuntary liquidation, dissolution, or winding-up of the Corporation as those
terms are used in this Article IV.B.

     4.  Voting. Each holder of Common Stock shall be entitled to one vote for
each share of such stock issued and outstanding and registered in such holder's
name and shall be entitled to vote upon such matters and in such manner as may
be provided by Delaware law and this Certificate of Incorporation.

     5.  No Pre-emptive or Subscription Rights. No holder of Common Stock shall
be entitled to pre-emptive or subscription rights.

     C.  RIGHTS, PREFERENCES, PRIVILEGES AND RESTRICTIONS OF PREFERRED STOCK.
Pursuant to authority conferred by this Article IV.C. upon the Board of
Directors of the Corporation under the Seventh Amended and Restated Certificate
of Incorporation, in effect at the relevant time, the Board of Directors created
a series of 3,184,713 shares of preferred stock designated as Series B
Convertible Preferred Stock by filing a Certificate of Designation of the
Corporation with the Secretary of State of the State of Delaware on May 14,
2001, and the voting powers, designations, preferences and relative
participating and other special rights, and the qualifications, limitations and
restrictions, of the Series B Convertible Preferred Stock of the Corporation are
as set forth in Annex I hereto and are incorporated herein by reference. Any
shares of Series B Convertible Preferred Stock converted into Common Stock of
the Corporation pursuant to Section 6 of such Certificate of Designation shall
be canceled and shall not under any circumstances be reissued; and the
Corporation may from time to time take such appropriate corporate action as may
be necessary to reduce accordingly the number of authorized shares of Series B
Convertible Preferred Stock. The Board of Directors of the Corporation shall not
issue any additional authorized but unissued shares of Series B Preferred Stock
of the Corporation without the approval of stockholders of the Corporation
holding at least 90% of the voting stock of the Corporation.

     Subject to the provisions of this Certificate of Incorporation and this
Article IV.C., the Board of Directors of the Corporation is authorized to
decrease the number of shares of any series of preferred stock (but not below
the number of shares of such series then outstanding) subsequent to the issue of
shares of that series. Any and all Preferred Stock issued and for which full
consideration has been paid or delivered shall be deemed fully paid stock and
the holder thereof shall not be liable for any further payment thereon.

     D.  RIGHTS, PREFERENCES, PRIVILEGES AND RESTRICTIONS OF SENIOR SECURED
CONVERTIBLE NOTES. Reference is made to (i) the Senior Secured Convertible Note
of the Corporation issued to SCP Private Equity Partners II, LP ("SCP") (the
"SCP Note") and (ii) the Senior Secured Convertible Note of the Corporation
issued to TECORE, Inc.

                                      -3-

<PAGE>

("Tecore") (the "Tecore Note," and together with the SCP Note, the "Notes")
pursuant to the Securities Purchase Agreement by and among the Corporation, SCP
and Tecore dated on or about ., 2003 (the "Purchase Agreement"). Pursuant to the
provisions of Section 221 of the General Corporation Law of Delaware, SCP and
Tecore as holders of the Notes of the Corporation (the "Noteholders") are
granted the power to vote in respect to the corporate affairs and management of
the Corporation as follows:

     Except as otherwise required by law or as provided herein, each Noteholder
shall be entitled to vote on all matters submitted to the stockholders of the
Corporation for a vote, and shall be entitled to that number of votes equal to
the number of shares of Common Stock into which such holder's then outstanding
Note, and all or any portion of accrued and unpaid interest, is convertible
pursuant to the terms thereof on the record date for the determination of
stockholders entitled to vote on such matter or, if no such record date is
established, on the date such vote is taken or any written consent of
stockholders is solicited, provided, however, that, solely for purposes of
determining the number of votes to which a Noteholder is entitled pursuant to
this Article IV.D., the price per share at which the Note, and all or any
portion of accrued and unpaid interest, may be converted shall be deemed to be
$.; provided further, that if the Corporation at any time subdivides (by any
stock split, stock dividend, recapitalization or otherwise) its outstanding
shares of Common Stock into a greater number of shares, the deemed conversion
price in effect immediately prior to such subdivision shall be proportionately
reduced, and conversely, in the event the outstanding shares of Common Stock
shall be combined (by reverse stock split or otherwise) into a smaller number of
shares, the deemed conversion price in effect immediately prior to such
combination shall be proportionately increased. The holders of the Notes shall
be deemed to be stockholders, and their Notes shall be deemed to be shares of
stock, for the purpose of any provision of the Delaware General Corporation Law
which requires the vote of stockholders as a prerequisite to any corporate
action. Except as expressly otherwise provided herein or as required by law, the
Noteholders shall vote together with the holders of shares of the Corporation's
Common Stock as a single class on all matters. The Noteholders shall be entitled
to notice of all stockholders' meetings in accordance with the Corporation's
by-laws and the General Corporation Law of the State of Delaware.

                                    ARTICLE V
                                    ---------

     The Board of Directors shall have the power, in addition to the
stockholders, to make, repeal, alter, amend and rescind any or all of the bylaws
of the Corporation.

                                   ARTICLE VI
                                   ----------

     The Board of Directors shall be constituted as follows:

     (i)   The number of directors which will constitute the whole Board of
Directors of the Corporation shall be fixed at ten (10) until such time as the
Tecore Note (referenced in Article IV.D. above) is fully converted into Common
Stock of the Corporation, when the number of directors which will constitute the
whole Board of Directors of the Corporation shall be fixed at eleven (11).

                                      -4-

<PAGE>

     (ii)  The term of each director shall be the period from the effective date
of such director's election to the next annual meeting of stockholders. The term
of each director who is serving as a director on [date of amendment to Charter]
shall expire at the next annual meeting of stockholders after such date, or upon
such director's earlier resignation or removal, notwithstanding that such
director may have been elected for a term that extended beyond the date of such
next annual meeting of stockholders.

     (iii) Notwithstanding the foregoing provisions of this Article VI, each
director shall serve until his successor is duly elected and qualified or until
his death, resignation or removal. Directors may be removed from office with or
without cause by the holders of a majority of the shares then entitled to vote
at an election of directors. No decrease in the number of directors constituting
the Board of Directors shall shorten the term of any incumbent director.

     (iv)  In furtherance and not in limitation of the powers conferred by
statute, the Board of Directors shall have the power to make, adopt, amend or
repeal the Bylaws, or adopt new Bylaws for this Corporation, by a resolution
adopted by a majority of the directors.

     (v)   Vacancies in the Board of Directors may be filled by a majority of
the remaining directors, though less than a quorum, or by a sole remaining
director.

     (vi)  Elections of directors need not be by written ballot unless the
bylaws of the Corporation shall so provide.

                                   ARTICLE VII
                                   -----------

     Meetings of stockholders may be held within or without the State of
Delaware, as the bylaws may provide. The books of the Corporation may be kept
(subject to any provision contained in the General Corporation Law of Delaware)
outside the State of Delaware at such place or places as may be designated from
time to time by the Board of Directors or in the bylaws of the Corporation.

                                  ARTICLE VIII
                                  ------------

     A director of the Corporation shall not be personally liable to the
Corporation or its stockholders for monetary damages for breach of fiduciary
duty as a director, except for liability (i) for any breach of the director's
duty of loyalty to the Corporation or its stockholders, (ii) for acts or
omissions not in good faith or which involve intentional misconduct or a knowing
violation of law, (iii) under Section 174 of Title 8 of the General Corporation
Law of Delaware, or (iv) for any transaction from which the director derived any
improper personal benefit. The foregoing sentence notwithstanding, if the
General Corporation Law of Delaware is hereafter amended to authorize further
limitations of the liability of a director of a corporation, then a director of
the Corporation, in addition to the circumstances in which a director is not
personally liable set forth in the preceding sentence, shall not be liable to
the fullest extent permitted by the General Corporation Law of Delaware as so
amended. Any repeal or modification of the foregoing provisions of this Article
VIII by the stockholders of the Corporation shall not

                                      -5-

<PAGE>

adversely affect any right or protection of a director of the Corporation
existing at the time of such repeal or modification.

                                   ARTICLE IX
                                   ----------

     The Corporation shall indemnify and hold harmless any director and officer
of the Corporation from and against any and all expenses and liabilities that
may be imposed upon or incurred by such person in connection with, or as a
result of, any proceeding in which such person may become involved, as a party
or otherwise, by reason of the fact that such person is or was such a director
or officer of the Corporation, whether or not such person continues to be such
at the time such expenses and liabilities shall have been imposed or incurred.
It is the intention of this Article IX to provide indemnification to the fullest
extent permitted by the laws of the State of Delaware, as they may be amended
from time to time.

                                    ARTICLE X
                                    ---------

     Subject to the provisions contained herein, the Corporation reserves the
right to amend, alter, change or repeal any provision contained in this Eighth
Amended and Restated Certificate of Incorporation, in the manner now or
hereafter prescribed by statute, and all rights conferred upon stockholders
herein are granted subject to this reservation.

     This Eighth Amended and Restated Certificate of Incorporation was duly
adopted in accordance with the provisions of Sections 242 and 245 of the General
Corporation Law of the State of Delaware by the Board of Directors and the
stockholders of the Corporation.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -6-

<PAGE>

     I, THE UNDERSIGNED, being the President and Chief Executive Officer of the
Corporation, hereby declare, under penalties of perjury, that this is the act
and deed of the Corporation and the facts herein stated are true, and
accordingly, I have executed this Eighth Amended and Restated Certificate of
Incorporation as of the ____ day of ., 2003.

                                        AIRNET COMMUNICATIONS CORPORATION

                                        By:     /s/   Glenn A. Ehley
                                           -------------------------------------
                                                  Glenn A. Ehley
                                                President and Chief
                                                 Executive Officer

ATTESTED:

-------------------------
Stuart P. Dawley
Corporate Secretary

                                      -7-

<PAGE>
                                                                         Annex I
                                                                         -------

                        AIRNET COMMUNICATIONS CORPORATION

                      SERIES B CONVERTIBLE PREFERRED STOCK
                           CERTIFICATE OF DESIGNATION

                            -------------------------

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                            -------------------------

     AirNet Communications Corporation (the "Corporation"), a corporation
organized and existing under the General Corporation Law of the State of
Delaware, does hereby certify that pursuant to the authority vested in the Board
of Directors of the Corporation by its Certificate of Incorporation, as amended,
and pursuant to the provisions of Section 151 of the General Corporation Law of
the State of Delaware, said Board of Directors, adopted the following resolution
at a meeting duly called and held on April 2, 2001, which resolution remains in
full force and effect as of the date hereof:

     RESOLVED, that pursuant to the authority vested in the Board of Directors
of the Corporation (the "Board of Directors") by its Certificate of
Incorporation, as amended (hereinafter referred to as the "Certificate of
Incorporation"), the Board of Directors does hereby create, authorize and
provide for the issuance of Series B Convertible Preferred Stock, par value $.01
per share, consisting of 3,184,713 shares, having the following designations,
preferences and relative and other special rights, qualifications, limitations
and restrictions:

     1.  DESIGNATION AND AMOUNT. The designation of such series is "Series B
Convertible Preferred Stock" (hereinafter in this Certificate of Designation
called the "Series B Preferred Stock") and the number of shares constituting
such series shall be 3,184,713, which number may be decreased (but not
increased) by the Board of Directors without a vote of stockholders; provided,
however, that such number may not be decreased below the number of then
currently outstanding shares of Series B Preferred Stock, plus shares issuable
upon the exercise of any then outstanding options, warrants or rights to acquire
Series B Preferred Stock, including dividends payable pursuant to the terms of
the Series B Preferred Stock. All capitalized terms used in this Certificate of
Designation and not otherwise defined shall have the meaning given to such terms
in Section 13 hereof.

     2.  DIVIDENDS. (a) The Holders of shares of the Series B Preferred Stock,
in preference to the holders of all Junior Capital Stock and on a pari passu
basis with holders of

                                      -1-

<PAGE>

Parity Capital Stock, will be entitled to receive, when, as and if dividends are
declared by the Board of Directors, out of funds of the Corporation legally
available therefor, cumulative dividends as provided in this Section 2.
Dividends on each outstanding share of Series B Preferred Stock shall be payable
in cash, or at the option of the Corporation, in such number of shares of Series
B Preferred Stock as is set forth in Section 2(d) below, and accrue (whether or
not earned or declared) at the rate of 8% per annum on the sum of (i) the
Purchase Price and (ii) all accumulated and unpaid dividends accrued thereon
from the date of issuance thereof (the "Series B Dividends"). Such dividends
will be calculated and accrued on a quarterly basis on the last day of each
fiscal quarter of the Corporation in respect of the prior three month period
prorated on a daily basis for partial periods.

         (b) If the Corporation at any time pays less than the total amount of
Series B Dividends then accrued with respect to the Series B Preferred Stock,
such payment shall be distributed ratably among the Holders based upon the
aggregate accrued but unpaid Series B Dividends on the Series B Preferred Stock
held by each such Holder.

         (c) In the event that the Corporation declares or pays any dividends
upon the Common Stock (whether payable in cash, securities or other property)
other than dividends payable solely in shares of Common Stock, the Corporation
shall also declare and pay to the Holders at the same time that it declares and
pays such dividends to the holders of the Common Stock, the dividends which
would have been declared and paid with respect to the Series B Preferred Stock
had all of the outstanding Series B Preferred Stock been converted in accordance
with Section 6(a) immediately prior to the record date for such dividend, or if
no record date is fixed, the date as of which the record holders of Common Stock
entitled to such dividends are to be determined.

         (d) The Corporation may pay the Series B Dividends to each Holder by
the issuance of such number of shares of Series B Preferred Stock as equals the
quotient of (i) the accrued and unpaid Series B Dividends with respect to the
shares of Series B Preferred Stock held such Holder and (ii) the Purchase Price.

     3.  LIQUIDATION PREFERENCE. (a) In the event of any (each a "Liquidation
Event") liquidation, dissolution or winding up of the affairs of the
Corporation, either voluntarily or involuntarily, each Holder shall be entitled,
after payment of the Corporation's debts and other liabilities and any
preferential amounts due to the holders of Senior Capital Stock, to be paid in
full, before any distribution is made on any Junior Capital Stock but on a pari
passu basis with any distribution on Parity Capital Stock, an amount (the
"Liquidation Amount") with respect to each share of Series B Preferred Stock
held by such Holder equal to the sum of (i) the product of (x) the Purchase
Price and (y) two and (ii) the Series B Dividends accrued on such share of
Series B Preferred Stock. After payment of the preferences to all holders of
preferred stock of the Corporation, all remaining assets of the Corporation
legally available for distribution, if any, shall be distributed ratably to the
holders of the Common Stock, Series B Preferred Stock (on an as-if converted to
Common Stock basis) and any other Capital Stock of the Corporation entitled to
share in such distribution.

         (b) Deemed Liquidation. The Majority Holders may elect in writing by
notice delivered to the Corporation, prior to the closing of a Sale of the
Corporation, to treat a specific

                                      -2-

<PAGE>

proposed Sale of the Corporation (other than a Qualified Sale of the
Corporation) as a Liquidation Event for purposes of Section 3(a).

         (c) Partial Payment. The Corporation shall, not later than 20 days
prior to the earlier of the record date for the taking of a vote of stockholders
with respect to any Liquidation Event or the date set for the consummation of a
Liquidation Event, provide to the Holders such information concerning the terms
of the Liquidation Event and the value of the assets of the Corporation or such
other relevant information as may be reasonably requested by the Holders. If,
upon a Liquidation Event, the net assets of the Corporation available for
payment to the Holders of Series B Preferred Stock and the holders of Parity
Capital Stock are not sufficient to pay in full the Liquidation Amount to the
Holders of Series B Preferred Stock and the preferential amounts due to the
holders of Parity Capital Stock, the Holders of Series B Preferred Stock and the
holders of Parity Capital Stock shall share equally and ratably in any
distribution of assets of the Corporation in proportion to the full liquidation
preference to which each is entitled.

         (d) No Additional Distributions. Holders of Series B Preferred Stock
shall not be entitled to any additional distribution in the event of any
Liquidation Event in excess of the amount set forth in Section 3(a) hereof.

     4.  VOTING RIGHTS OF SERIES B PREFERRED STOCK. (a) Except as otherwise
required by law or as provided herein, each Holder of Series B Preferred Stock
shall be entitled to vote on all matters and shall be entitled to that number of
votes equal to the number of shares of Common Stock into which such Holder's
shares could be converted pursuant to the provisions of Section 6(a) hereof on
the record date for the determination of stockholders entitled to vote on such
matter or, if no such record date is established, on the date such vote is taken
or any written consent of stockholders is solicited, provided, however, that,
solely for purposes of determining the number of votes a Holder of Series B
Preferred Stock is entitled to pursuant to this Section 4, the Conversion Price
(as defined in Section 6(d) hereof), if then less than $2.8438, shall be deemed
to be $2.8438 (the shares deemed convertible for purposes of such determination
shall be hereinafter referred to as the "Holders' Voting Shares"). Except as
otherwise expressly provided herein or as required by law, the Holders of shares
of the Series B Preferred Stock shall vote together with the holders of shares
of the Corporation's Common Stock as a single class on all matters. The Holders
shall be entitled to notice of all stockholders meetings in accordance with the
Corporation's by-laws and General Corporation Law of the State of Delaware.

     (b) Notwithstanding the above paragraph or any provision to the contrary
contained herein, the Holders of Series B Preferred Stock shall be entitled,
voting together as a separate single class, to nominate, and upon amendment of
the Corporation's Certificate of Incorporation as described below to elect, two
(2) members of the Board of Directors in accordance with the terms set forth in
this Section 4(b) and subject to the limitations set forth in Section 4(c)
below. Until such time as the Corporation's stockholders have approved an
amendment to the Corporation's Certificate of Incorporation (the "Charter
Amendment") providing for the right of the Holders of Series B Preferred Stock
to elect two (2) members of the Board of Directors and such Charter Amendment is
filed with the Delaware Secretary of State and effective (the "Charter Amendment
Effective Date") and subject to the limitations set forth in Section 4(c)

                                      -3-

<PAGE>

below, the Holders of Series B Preferred Stock, voting together as a separate
single class, are entitled to designate two (2) nominees for election to the
class of the Board of Directors whose term expires at the Corporation's 2001
Annual Stockholders Meeting ("Class III") and at each subsequent election of
Class III directors prior to the Charter Amendment Effective Date, and the Board
of Directors shall nominate such designees and recommend to the Corporation's
stockholders that such designees be elected as members of Class III of the Board
of Directors.

     With respect to the two (2) directors to be designated for nomination by
the Holders of Series B Preferred Stock, one individual shall be designated by
SCP Private Equity Partners II, L.P. ("SCP") so long as SCP holds any Series B
Preferred Stock (the "SCP Designee for Nomination") and one individual shall be
designated by Tandem PCS Investments, L.P. ("Tandem") so long as Tandem holds
any Series B Preferred Stock (the "Tandem Designee for Nomination"). For
nominees for election at the Corporation's 2001 Annual Stockholders Meeting,
each of SCP and Tandem shall notify the Corporation in writing of the identity
of its designee no later than ten (10) days following the date on which they
become Holders of Series B Preferred Stock. For all subsequent elections of
Class III directors, each of SCP and Tandem shall notify the Corporation in
writing of the identity of its designee for nomination to Class III of the Board
of Directors no later than the last date (the "Designee Notice Due Date") on
which shareholder proposals may be submitted for an election year when they have
such a right, which notice shall be conclusive evidence of the consent of such
designee to serve as a director of the Corporation. In the event either SCP or
Tandem fails to provide such notice, the SCP Designee for Nomination and Tandem
Designee for Nomination (or the SCP representative and Tandem representative in
the case of the notice for the Corporation's 2001 Annual Stockholders' Meeting)
serving on the Board of Directors on the Designee Notice Due Date shall be
deemed to be renominated. In the event SCP or Tandem has no designee serving (or
otherwise designated to serve in the event of the resignation, death, removal or
inability to serve of a designee, as provided in the last sentence of this
paragraph) on the Board of Directors on the Designee Notice Due Date, the Board
of Directors shall be entitled to make the nomination for which such notice was
required. In the event either SCP or Tandem fails to hold any Series B Preferred
Stock, the Holders of Series B Preferred Stock, voting together as a separate
single class, shall be entitled to the director nomination rights previously
held by SCP or Tandem, as the case may be. If neither SCP nor Tandem holds any
Series B Preferred Stock, the Holders of Series B Preferred Stock, voting
together as a separate single class, shall be entitled to the director
nomination rights previously held by SCP and Tandem. The notice shall include
all information with respect to such designee as is required to be included in a
proxy statement soliciting proxies for the election of directors pursuant to
Regulation 14A of the Exchange Act. In the event of any vacancy arising by
reason of the resignation, death, removal (which may include a removal by the
Holders of Series B Preferred Stock, with or without cause, at the written
request of SCP or Tandem, as applicable, as the party designating such director)
or inability to serve of the SCP Designee for Nomination or the Tandem Designee
for Nomination, SCP or Tandem, as applicable, shall notify the Corporation of
its choice to fill such vacancy, and the Board of Directors shall appoint such
person to fill such vacancy and serve until the next meeting of the
Corporation's stockholders for the election of Class III directors.

     At all times after the Charter Amendment Effective Date and subject to the
limitations set forth in Section 4(c) below, the Holders of Series B Preferred
Stock, voting together as a separate

                                      -4-

<PAGE>

single class, shall be entitled to elect two (2) members of Class III of the
Board of Directors at each election of Class III directors. With respect to the
two (2) directors to be designated for election by the Holders of Series B
Preferred Stock, one individual shall be designated by SCP so long as SCP holds
any Series B Preferred Stock (the "SCP Designee for Election") and one
individual shall be designated by Tandem so long as Tandem holds any Series B
Preferred Stock (the "Tandem Designee for Election"). Each of SCP and Tandem
shall notify the Corporation in writing of the identity of its designee for
election to Class III of the Board of Directors no later than the Designee
Notice Due Date, which notice shall be conclusive evidence of the consent of
such designee to serve as a director of the Corporation. In the event either SCP
or Tandem fails to provide such notice, the SCP designee and Tandem designee
serving on the Board of Directors on the Designee Notice Due Date shall be
deemed to be the applicable designee. In the event either SCP or Tandem has no
designee serving (or otherwise designated to serve in the event of the
resignation, death, removal or inability to serve of a designee, as provided in
the last sentence of this paragraph) on the Board of Directors on the Designee
Notice Due Date, the Board of Directors shall be entitled to make the nomination
for which such notice was required. In the event SCP or Tandem fails to hold any
Series B Preferred Stock, the Holders of Series B Preferred Stock, voting
together as a separate single class, shall be entitled to the director election
rights previously held by SCP or Tandem, as the case may be. If neither SCP nor
Tandem holds any Series B Preferred Stock, the Holders of Series B Preferred
Stock, voting together as a separate single class, shall be entitled to the
director election rights previously held by SCP and Tandem. The notice shall
include all information with respect to such designee as is required to be
included in a proxy statement soliciting proxies for the election of directors
pursuant to Regulation 14A of the Exchange Act. In the event of any vacancy
arising by reason of the resignation, death, removal (which may include a
removal by the Holders of Series B Preferred Stock, with or without cause, at
the written request of SCP or Tandem, as applicable, as the party designating
such director) or inability to serve of the SCP Designee for Election or the
Tandem Designee for Election, SCP or Tandem, as applicable (provided SCP or
Tandem, as applicable, then holds Series B Preferred Stock) shall notify the
Corporation of its choice to fill such vacancy, and the Board of Directors shall
appoint such person to fill such vacancy and serve until the next meeting of the
Corporation's stockholders for the election of Class III directors.

     The class voting rights granted to the Holders of Series B Preferred Stock
pursuant to this Section 4(b) shall be in addition to, and not in lieu of, the
voting rights granted to such Holders under Section 4(a) hereof. Accordingly,
the Holders of Series B Preferred Stock shall be entitled to vote together with
the holders of shares of the Corporation's Common Stock as a single class with
respect to the election of those directors for which the Holders do not have
class voting rights.

     (c) Notwithstanding the provisions of Section 4(b) above, the class voting
rights to which the Holders of Series B Preferred Stock are entitled pursuant to
such section shall be limited, and in certain cases eliminated, in the event the
Holders of Series B Preferred Stock fail to maintain certain threshold levels of
ownership of the Corporation's voting securities, as set forth below. In the
event the sum of (i) the Holders' Voting Shares, plus (ii) the shares of Common
Stock issued and outstanding and owned by the Holders (the total of such shares
from time to time is hereinafter referred to as the "Holders' Share Total" and
with respect to a specific

                                      -5-

<PAGE>

Holder, a "Share Total") constitutes less than 15% of the sum of (i) the
Corporation's outstanding shares of Common Stock plus (ii) the Holders' Voting
Shares (the total of such shares is hereinafter referred to as the "Deemed
Outstanding Shares") on a Designee Notice Due Date, the Holders of Series B
Preferred Stock shall be entitled to only one designee for nomination or
election, as the case may be, with respect to such election. In such case, SCP
or Tandem, whichever entity has a higher Share Total, shall be entitled to make
such designation. In the event, SCP and Tandem have equal Share Totals on a
Designee Notice Due Date on which the Holders are entitled to only one designee,
SCP and Tandem shall agree on a mutually acceptable designee. In the event the
Holders' Share Total constitutes less than 10% of the Deemed Outstanding Shares
on a Designee Notice Due Date, the Holders of Series B Preferred Stock shall not
be entitled to designate a director for such election and the Holders shall be
entitled to voting rights in accordance with Section 4(a) above with respect to
such election.

     5.  RESTRICTED ACTIONS. (a) The affirmative vote of the Majority Holders,
acting by written consent as a separate class or voting separately as a separate
class, shall be necessary to authorize the Corporation or any Subsidiary of the
Corporation to take any of the following actions:

               (i)   authorize, create, issue, modify the material terms of, or
     change the amount of authorized or issued shares of, any Senior Capital
     Stock (or any securities convertible into or exchangeable for any Senior
     Capital Stock) or Indebtedness that by its terms is convertible or
     exchangeable into Senior Capital Stock (or any securities convertible into
     or exchangeable for Senior Capital Stock;

               (ii)  effect (x) any Sale of the Corporation other than a
     Qualified Sale of the Corporation or a Qualified Public Offering or (y) any
     Reorganization of the Corporation;

               (iii) alter the rights, preferences or privileges of the Series
     B Preferred Stock;

               (iv)  increase the authorized number of shares of Series B
     Preferred Stock;

               (v)   redeem, purchase or otherwise acquire any shares of Common
     Stock or Preferred Stock (or pay into a sinking fund for such purpose);
     provided, however, that this restriction shall not apply to any redemption
     specifically permitted pursuant to this Certificate of Designation or to
     the repurchase of shares of Common Stock at the original purchase price
     from employees, officers, directors or other persons performing services
     for the Corporation.

         (b) Notwithstanding the foregoing provisions of this Section 5 and
except as otherwise required by law, the creation, authorization or issuance of
any shares of any Junior Capital Stock or Parity Capital Stock, or the increase
or decrease in the amount of authorized Junior Capital Stock or Parity Capital
Stock of any class shall not require the affirmative vote or consent of the
Majority Holders and shall not be deemed to materially affect adversely the
rights, preferences, privileges or voting rights of shares of Series B Preferred
Stock.

                                      -6-

<PAGE>

         (c) In any case in which the Holders of Series B Preferred Stock shall
be entitled to vote (as Holders of Series B Preferred Stock rather than on an
as-if-converted basis) pursuant hereto or pursuant to the General Corporation
Law of the State of Delaware, each Holder of Series B Preferred Stock entitled
to vote with respect to such matters shall be entitled to one vote for each
share of Series B Preferred Stock held.

     6.  CONVERSION RIGHTS.

         (a) Optional Conversion. At any time and from time to time, any Holder
shall have the right, at its option, to convert all or any portion of the shares
of Series B Preferred Stock (including all accrued dividends paid or payable in
shares of Series B Preferred Stock and any fraction of a share) held by such
Holder into such number of shares of fully paid and nonassessable Common Stock
as equals the product of (i) the number of shares of Series B Preferred Stock to
be converted by such Holder and (ii) the quotient of (x) the Purchase Price and
(y) the Conversion Price in effect on the Conversion Date. Each optional
conversion of Series B Preferred Stock shall be deemed to have been effected as
of the close of business on the effective date of such conversion specified in a
written notice by such Holder to the Corporation (the "Conversion Date");
provided, however, that the Conversion Date shall not be a date earlier than the
date such notice is so given, and if such notice does not specify a conversion
date, the Conversion Date shall be deemed to be the date such notice is given to
the Corporation. On the Conversion Date, the rights of the holder of such Series
B Preferred Stock as such Holder shall cease and the Person or Persons in whose
name or names any certificate or certificates for shares of Common Stock are to
be issued upon such conversion shall be deemed to have become the holder or
holders of record of the shares of Common Stock represented thereby.
Notwithstanding any other provision hereof, if a voluntary conversion of Series
B Preferred Stock is to be made in connection with a public offering other than
a Qualified Public Offering or a Sale of the Corporation other than a Qualified
Sale of the Corporation, such conversion may, at the election of the Holder, be
conditioned upon the consummation of the respective public offering or Sale of
the Corporation, in which case such conversion shall not be deemed to be
effective until the closing of such public offering or Sale of the Corporation,
as the case may be.

         (b) Mandatory Conversion. Immediately upon any Mandatory Conversion
Event, all shares of Series B Preferred Stock held by each Holder (including all
accrued dividends paid or payable in shares of Series B Preferred Stock and any
fraction of a share of Series B Preferred Stock) shall automatically be
converted into the number of fully paid and nonassessable shares of Common Stock
of the Corporation as equals the product of (i) the number of shares of Series B
Preferred Stock held by such Holder and (ii) the quotient of (x) the Purchase
Price and (y) the Conversion Price in effect on the Conversion Date. A
"Mandatory Conversion Event" shall mean (A) the closing of a Qualified Public
Offering; (B) the closing of a Qualified Sale of the Corporation or (C) the
written election of the Majority Holders, including each Lead Investor.

         (c) Conversion Procedure.

               (i)   Delivery of Certificates. As soon as practicable after any
     conversion of Series B Preferred Stock pursuant to this Section 6, but in
     any event within ten (10) business days after the holder has delivered the
     certificates or affidavits of loss, if

                                      -7-

<PAGE>

     applicable, evidencing the shares of Series B Preferred Stock converted
     into shares of Common Stock in accordance herewith, the Corporation shall
     deliver to the converting holder:

               (x)   a certificate or certificates representing, in the
                     aggregate, the number of shares of Common Stock issued upon
                     such conversion in the same name or names as the
                     certificates representing the converted shares (unless such
                     holder shall have provided written notice to the
                     Corporation to issue some or all of such converted shares
                     in another name or names, in which case the Corporation
                     shall deliver such certificates for such converted shares
                     in such other name or names provided such holder delivers
                     to the Corporation an opinion of counsel acceptable to the
                     Corporation specifying that such issuance of converted
                     shares to other parties is permissible under an available
                     exemption from the registration requirements of the
                     Securities Act of 1933, as amended, and the securities laws
                     of any applicable state) and in such denomination or
                     denominations as the converting holder shall specify and a
                     check for cash with respect to any fractional interest in a
                     share of Common Stock; and

               (y)   with respect to an optional conversion pursuant to Section
                     6(a) above, a certificate representing any shares of Series
                     B Preferred Stock that were represented by the certificate
                     or certificates delivered to the Corporation in connection
                     with such conversion but that were not converted.

     From the Conversion Date and until such time as a holder of shares of
     Series B Preferred Stock shall surrender its certificate or certificates
     therefor as provided above, such certificates shall be deemed to represent
     the shares of Common Stock to which such holder shall be entitled upon the
     surrender thereof.

               (ii)  Fully Paid Shares. The issuance of certificates for shares
     of Common Stock upon conversion of Series B Preferred Stock shall be made
     without charge to the Holders of such Series B Preferred Stock for any
     issuance tax in respect thereof or other cost incurred by the Corporation
     in connection with such conversion and the related issuance of shares of
     Common Stock. Upon conversion of any shares of Series B Preferred Stock,
     the Corporation shall take all such actions as are necessary in order to
     insure that the Common Stock so issued upon such conversion shall be
     validly issued, fully paid and nonassessable.

               (iii) Timely Conversion. The Corporation shall not close its
     books against the transfer of Series B Preferred Stock or of Common Stock
     issued or issuable upon conversion of Series B Preferred Stock in any
     manner that interferes with the timely conversion of Series B Preferred
     Stock. The Corporation shall assist and cooperate with any holder of shares
     of Series B Preferred Stock required to make any governmental filings or
     obtain any governmental approval prior to or in connection with any
     conversion

                                      -8-

<PAGE>

     of shares of Series B Preferred Stock hereunder (including, without
     limitation, making any filings required to be made by the Corporation). The
     Corporation shall take all such actions as may be necessary to assure that
     all such shares of Common Stock may be so issued without violation of any
     applicable law or governmental regulation or any requirements of any
     domestic securities exchange upon which shares of Common Stock may be
     listed (except for official notice of issuance which shall be immediately
     delivered by the Corporation upon each such issuance).

               (iv)  Reservation of Common Stock. The Corporation shall at all
     times reserve and keep available out of its authorized but unissued shares
     of Common Stock, solely for the purpose of issuance upon the conversion of
     or otherwise pursuant to the terms of the Series B Preferred Stock, such
     number of shares of Common Stock as are issuable upon the conversion of or
     otherwise pursuant to the terms of all outstanding Series B Preferred
     Stock.

               (v)   Fractional Shares. No fractional shares of Common Stock or
     scrip shall be issued upon conversion of shares of the Series B Preferred
     Stock. If more than one share of Series B Preferred Stock shall be
     surrendered for conversion at any one time by the same Holder, the number
     of full shares of Common Stock issuable upon conversion thereof shall be
     computed on the basis of the aggregate number of shares of Series B
     Preferred Stock so surrendered. Instead of any fractional shares of Common
     Stock which would otherwise be issuable upon conversion of any shares of
     Series B Preferred Stock, the Corporation shall pay a cash adjustment in
     respect of such fractional interest equal to the fair market value of such
     fractional interest as determined by the Corporation's Board of Directors.

         (d) Conversion Price. The initial conversion price shall be three and
14/100 dollars ($3.14), which may be adjusted from time to time hereafter (as so
adjusted, the "Conversion Price"). If and whenever on or after the original date
of issuance of the Series B Preferred Stock the Corporation issues or sells, or
in accordance with Section 6(e) below is deemed to have issued or sold, any
shares of its Common Stock or Convertible Securities (other than Excluded
Securities) for a consideration per share less than the Conversion Price in
effect immediately prior to the time of such issue or sale, then upon such issue
or sale, the Conversion Price in effect immediately prior to the time of such
issue or sale shall be reduced to an amount equal to the consideration per share
applicable to the Common Stock or Convertible Securities so issued or sold or
deemed issued or sold in accordance with Section 6(e) below.

         (e) Effect on Conversion Price of Certain Events. For purposes of
determining the adjusted Conversion Price under Section 6(d), the following
shall be applicable:

               (i)   Issuance of Convertible Securities. If the Corporation in
     any manner issues or sells any Convertible Securities, whether or not the
     rights to exercise, exchange or convert any such Convertible Securities are
     immediately exercisable, and the price per share for which Common Stock is
     issuable upon such exercise, conversion or exchange is less than the
     Conversion Price in effect immediately prior to the time of such issue or
     sale, then the maximum number of shares of Common Stock issuable upon
     exercise, conversion or exchange of such Convertible Securities shall be
     deemed to be

                                      -9-

<PAGE>

     outstanding and to have been issued and sold by the Corporation at the time
     of the issuance or sale of such Convertible Securities for such price per
     share. For the purposes of this paragraph, the "price per share for which
     Common Stock is issuable" shall be determined by dividing (x) the total
     amount received or receivable by the Corporation as consideration for the
     issue or sale of such Convertible Securities, plus the cumulative minimum
     aggregate amount of additional consideration, if any, payable to the
     Corporation upon the exercise, conversion or exchange thereof and, if
     applicable, the exercise, conversion and exchange of any other Convertible
     Securities that such Convertible Securities may be converted into or
     exchanged for, by (y) the total maximum number of shares of Common Stock
     issuable upon the exercise, conversion or exchange of all such Convertible
     Securities. No further adjustment of the Conversion Price shall be made
     when Common Stock and, if applicable, any other Convertible Securities, are
     actually issued upon the exercise, conversion or exchange of such
     Convertible Securities.

               (ii)  Change in Exercise, Price or Conversion Rate. If the
     additional consideration payable to the Corporation upon the exercise,
     conversion or exchange of any Convertible Securities, or the rate at which
     any Convertible Securities are convertible into or exercisable or
     exchangeable for Common Stock, changes at any time, the Conversion Price in
     effect at the time of such change shall be readjusted to the Conversion
     Price that would have been in effect at such time had such Convertible
     Securities that are still outstanding provided for such changed additional
     consideration or changed conversion rate, as the case may be, at the time
     such Convertible Securities were initially granted, issued or sold.

               (iii) Exceptions for Excluded Securities. Notwithstanding the
     foregoing, no adjustments shall be made under this Section 6(e) with
     respect to the issuance of any Excluded Securities.

         (f) Subdivision or Combination of Common Stock. If the Corporation at
any time subdivides (by any stock split, stock dividend, recapitalization or
otherwise) its outstanding shares of Common Stock into a greater number of
shares, the Conversion Price in effect immediately prior to such subdivision
shall be proportionately reduced, and conversely, in the event the outstanding
shares of Common Stock shall be combined (by reverse stock split or otherwise)
into a smaller number of shares, the Conversion Price in effect immediately
prior to such combination shall be proportionately increased.

         (g) Certain Events. If an event not specified in this Section 6
occurs that has substantially the same economic effect on the Series B Preferred
Stock as those specifically enumerated, then this Section 6 shall be construed
liberally, mutatis mutandis, in order to give the Series B Preferred Stock the
intended benefit of the protections provided under this Section 6. In such
event, the Corporation's Board of Directors shall make an appropriate adjustment
in the Conversion Price so as to protect the rights of the Holders.

         (h) Notices.

               (i)   Immediately upon any adjustment of the Conversion Price,
     the Corporation shall give written notice thereof to all Holders, setting
     forth in reasonable

                                      -10-

<PAGE>

     detail and certifying the calculation of such adjustment and the facts upon
     which such adjustment is based.

               (ii)  The Corporation shall give written notice to all Holders
     at least twenty (20) days prior to the date on which the Corporation closes
     its books or takes a record (x) with respect to any pro rata subscription
     offer to Holders of Common Stock, (y) with respect to any Liquidation Event
     or (z) with respect to any other right afforded to any holder of Common
     Stock.

         (i) Determination of Consideration. For purposes of this Section 6,
consideration received by the Corporation for the issue or sale of Convertible
Securities in the form of property other than cash shall be computed at the fair
value thereof at the time of such issue, as determined in good faith by the
Board of Directors of the Corporation.

     7.  REDEMPTION.

         (a) Unless the following rights are waived or deferred in writing by
the Majority Holders (including each Lead Investor), at any time after May 31,
2006, any Holder may elect to have all shares of Series B Preferred Stock held
by such Holder redeemed by the Corporation (an "Optional Redemption"). In any
such case, any Holder desiring to exercise its Optional Redemption right (a
"Redeeming Holder") shall notify the Corporation in writing of its intent to
exercise the rights afforded by this Section 7(a) and specify a date not less
than ten (10) nor more than sixty (60) days from the date of such notice on
which all of such Holder's shares of Series B Preferred Stock shall be redeemed
(an "Optional Redemption Date"). Within three (3) Trading Days after receipt by
the Corporation of any such notice, the Corporation shall promptly notify each
of the other Holders in writing of such Optional Redemption and provide a copy
of the notice from such Redeeming Holder with such notice, whereupon each of the
other Holders shall have an option for a period of fifteen (15) days to notify
the Corporation in writing of its intent to exercise its Optional Redemption
right on the Optional Redemption Date. On such Optional Redemption Date, the
Corporation shall redeem all shares of Series B Preferred Stock held by such
Redeeming Holder as well as all other Holders exercising such Optional
Redemption right, as aforesaid, in cash by wire transfer of immediately
available funds at a redemption price (the "Redemption Price") equal to the sum
of (i) the product of (x) the number of shares of Series B Preferred Stock held
by such Redeeming Holder and each other Holder, respectively, and (y) the
Purchase Price and (ii) all accrued but unpaid dividends thereon calculated to
the Optional Redemption Date.

         (b) If the funds of the Corporation legally available for redemption of
shares of Series B Preferred Stock on an Optional Redemption Date are
insufficient to redeem the total number of shares of Series B Preferred Stock
requested to be redeemed by Redeeming Holders on such Optional Redemption Date,
the Redeeming Holders requesting redemption on such Optional Redemption Date
shall share ratably in any funds legally available for redemption of such shares
according to the respective amounts that would be payable with respect to the
full number of shares owned by them if all such shares were redeemed in full. At
any time, and from time to time, thereafter when additional funds of the
Corporation are legally available for the redemption of such shares of Series B
Preferred Stock, such funds will be used at the earliest permissible time to
redeem the balance of such shares, or such portion thereof for which funds

                                      -11-

<PAGE>

are then legally available. Such funds shall not be used by the Corporation for
any other purpose, including the redemption by the Corporation of any shares of
Convertible Securities which the Corporation is obligated to redeem on any
subsequent date. The Corporation shall be obligated to use its reasonable
efforts to take such actions as may be necessary in order to permit the full and
timely redemption of the shares of Series B Preferred Stock entitled to
redemption.

         (c) If, for any reason, the Corporation fails to redeem all shares of
Series B Preferred Stock entitled to redemption on any Optional Redemption Date,
the unredeemed shares shall remain outstanding and shall continue to have all
rights and preferences (including, without limitation, dividend and voting
rights) provided for herein and the Holders of such unredeemed shares shall have
the ongoing right to be redeemed together with such rights and remedies as may
be available under applicable law.

         (d) The notices provided for in this Section 7 shall be sent, (i) if by
or on behalf of the Corporation, to the Holders at their respective addresses as
shall then appear on the records of the Corporation by first class mail, postage
prepaid, notifying such recipient of the redemption, the date of such
redemption, the number of shares of Series B Preferred Stock to be redeemed, and
the Redemption Price therefor and stating the place or places at which the
shares that have been requested to be redeemed shall, upon presentation and
surrender of such certificates representing such shares, be redeemed, and (ii)
if by or on behalf of a Holder, to the Corporation at its executive office,
currently located in Melbourne, Florida.

         (e) Any shares of Series B Preferred Stock redeemed pursuant to this
Section 7 or otherwise acquired by the Corporation in any manner whatsoever
shall be canceled and shall not under any circumstances be reissued; and the
Corporation may from time to time take such appropriate corporate action as may
be necessary to reduce accordingly the number of authorized shares of Series B
Preferred Stock.

     8.  EXCLUSION OF OTHER RIGHTS. Except as may otherwise be required by law,
the shares of Series B Preferred Stock shall not have any preferences or
relative, participating, optional or other special rights, other than those
specifically set forth in this Certificate of Designation.

     9.  RANK. The Series B Preferred Stock shall, with respect to redemption,
dividend distributions and distributions upon liquidation, winding-up and
dissolution of the Corporation, rank (i) senior to all classes of Common Stock
of the Corporation, and to each other class of Capital Stock or series of
Preferred Stock (including Series A Preferred Stock) now outstanding or
hereafter created by the Board of Directors other than Parity Capital Stock or
Senior Capital Stock (collectively referred to herein, together with all classes
of Common Stock of the Corporation, as the "Junior Capital Stock"), (ii) equally
with any class of Capital Stock or series of Preferred Stock hereafter created
by the Board of Directors and which expressly provide that such class or series
will rank on a parity with the Series B Preferred Stock as to redemption,
dividend distributions and distributions upon liquidation, winding-up and
dissolution of the Corporation (collectively referred to as "Parity Capital
Stock"); and (iii) junior to each class of Capital Stock or series of Preferred
Stock hereafter created by the Board of Directors the terms of which have been
approved by the Majority Holders in accordance with Section 5(a)(i) hereof and
which expressly provide that such class or series will rank senior to the Series
B Preferred

                                      -12-

<PAGE>

Stock as to redemption, dividend distributions and distributions upon
liquidation, winding-up and dissolution of the Corporation (collectively
referred to as "Senior Capital Stock").

     10. IDENTICAL RIGHTS. Each share of the Series B Preferred Stock shall
have the same relative rights and preferences as, and shall be identical in all
respects with, all other shares of the Series B Preferred Stock.

     11. CERTIFICATES. So long as any shares of the Series B Preferred Stock are
outstanding, there shall be set forth on the face or back of each stock
certificate issued by the Corporation a statement that the Corporation shall
furnish without charge to each shareholder who so requests, a full statement of
the designation and relative rights, preferences and limitations of each class
of stock or series thereof that the Corporation is authorized to issue and of
the authority of the Board of Directors to designate and fix the relative
rights, preferences and limitations of each series.

     12. AMENDMENTS; WAIVERS. Any provision of these terms of the Series B
Preferred Stock may be amended, modified or waived if and only if the Majority
Holders (including each Lead Investor) have consented in writing or by an
affirmative vote to such amendment, modification or waiver of any such provision
of this Certificate of Designation.

     13. DEFINITIONS.

     "Acquirer Stock" has the meaning set forth within the definition of
Qualified Sale of the Corporation.

     "Capital Stock" means (a) as to any Person that is a corporation (i) the
authorized shares of such Person's capital stock, including all classes of
common, preferred, voting and nonvoting capital stock of such Person, (ii) any
rights, options or warrants to purchase any capital stock (including all classes
of common, preferred, voting and nonvoting capital stock of such Person) of such
Person, and (iii) securities of any type whatsoever that are, or may become,
convertible into or exercisable or exchangeable for, or that carry or may carry
rights to subscribe for, any capital stock (including all classes of common,
preferred, voting and nonvoting capital stock of such Person) of such Person;
and (b) as to any Person that is not a corporation or an individual (i) the
ownership interests in such Person (however evidenced), including, without
limitation, the right to share in profits and losses, the right to receive
distributions of cash and property, and the right to receive allocations of
items of income, gain, loss, deduction and credit and similar items from such
Person, whether or not such interests include voting or similar rights entitling
the holder thereof to exercise control over such Person, and (ii) any rights,
options, warrants or securities of any type whatsoever that are, or may become,
convertible into or exercisable or exchangeable for, or that carry or may carry
rights to subscribe for, any such ownership interests in such Person.

     "Certificate of Designation" means this Certificate of Designation of the
Series B Preferred Stock.

     "Certificate of Incorporation" means the Certificate of Incorporation of
the Corporation, as amended and/or restated from time to time.

                                      -13-

<PAGE>

     "Closing Price" means on any day the reported last sale price on such day,
or in case no sale takes place on such day, the average of the reported closing
bid and ask prices on the principal national securities exchange (which shall
include NASDAQ) on which such stock is listed or admitted to trading (and if the
Common Stock is listed or admitted to trading on more than one U.S. national or
non-U.S. securities exchange, the Corporation shall determine, in its reasonable
discretion, the principal securities exchange on which such Common Stock is
listed or admitted to trading), as reported by Bloomberg Financial Markets (or a
comparable reporting service of national reputation selected by the Corporation
and reasonably acceptable to the Majority Holders if Bloomberg Financial Markets
is not then reporting the last sale price of such security) ("Bloomberg"), or if
not listed or admitted to trading on any securities exchange, the last reported
sale price of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no last sale
price is reported for such security by Bloomberg, the average of the reported
closing and bid prices of all market makers for such security as reported in the
"pink sheets" by the National Quotation Bureau, Inc., in each case for such date
or, if such date was not a trading date for such security, on the next preceding
date which was a trading date. If the Closing Price cannot be calculated for
such security as of either of such dates on any of the foregoing bases, the
Closing Price of such security on such date shall be the fair market value as
reasonably determined by an investment banking firm selected by the Corporation
and reasonably acceptable to the Majority Holders, with the costs of such
appraisal to be borne by the Corporation.

     "Common Stock" means the Corporation's Common Stock, $.001 par value.

     "Common Stock Deemed Outstanding" means, at any given time, the number of
shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock issuable upon the exercise, conversion or exchange in
full of all Convertible Securities whether or not the Convertible Securities are
exercisable for, convertible into or exchangeable for, Common Stock at such
time.

     "Conversion Date" has the meaning set forth in Section 6(a) hereof.

     "Conversion Price" has the meaning set forth in Section 6(d) hereof.

     "Convertible Securities" means securities or obligations that are
exercisable for, convertible into or exchangeable for shares of Common Stock.
The term includes options, warrants or other rights to subscribe for or purchase
Common Stock or to subscribe for or purchase other securities that are
convertible into or exercisable or exchanged for Common Stock.

     "Excluded Securities" means any (a) shares of Common Stock or options to
purchase Common Stock, including shares of Common Stock issuable upon exercise
of such options, (as the same may be adjusted in connection with any stock
split, stock dividend, combination or recapitalization) issued or granted
pursuant to employee stock option or executive incentive ownership plans
approved by the Board of Directors and the stockholders of the Corporation; (b)
the shares of Common Stock issuable upon conversion of any Convertible
Securities outstanding on March 30, 2001 (c) the shares of Common Stock issuable
upon the conversion of the Series B

                                      -14-

<PAGE>

Preferred Stock; and (d) any shares of Capital Stock issued to the Corporation's
stockholders in connection with any stock split, stock dividend or
recapitalization.

     "Holders" means the Holders from time to time of shares of Series B
Preferred Stock, and the term "Holder" means any one of them.

     "Junior Capital Stock" has the meaning given such term in Section 9 above.

     "Lead Investor" shall mean any of SCP Private Equity Partners, II, L.P.,
Tandem PCS Investments, L.P., and Mellon Ventures, L.P. so long as such party
holds shares of Series B Preferred Stock.

     "Liquidation Amount" has the meaning set forth in Section 3(a) hereof.

     "Liquidation Event" has the meaning set forth in Section 3(a) hereof.

     "Low Trading Volume" means that the total number of shares of Acquirer
Stock (or any Capital Stock into which the Acquirer Stock is convertible into,
exercisable or exchangeable for) received or receivable by all holders of
Capital Stock of the Corporation in connection with a Sale of the Corporation is
greater than the average daily reported volume of Capital Stock of the same
class as the Acquirer Stock (or any Capital Stock into which the Acquirer Stock
is convertible into, exercisable or exchangeable for) calculated based upon the
average daily trading volume of Acquirer Stock on all national securities
exchanges and/or the automated quotation system of a registered securities
association (as such terms are used in Rule 144 promulgated under the Securities
Act of 1933) during the 12 week period immediately preceding the date of the
closing of the Sale of the Corporation.

     "Majority Holders" means the Holders of a majority of the outstanding
shares of Series B Preferred Stock.

     "Mandatory Conversion Event" has the meaning set forth in Section 6(b)
hereof.

     "NASDAQ" means the National Association of Securities Dealers Automated
Quotation System.

     "Optional Redemption" has the meaning set forth in Section 7(a) hereof.

     "Optional Redemption Date" has the meaning set forth in Section 7(a)
hereof.

     "Parity Capital Stock" has the meaning set forth in Section 9 hereof.

     "Person" means an individual, partnership, corporation, association, trust,
joint venture, unincorporated organization and any government, governmental
department or agency or political subdivision thereof.

     "Purchase Price" of any share of Series B Preferred Stock shall be thirty
one and 40/100 dollars ($31.40), such price to be equitably adjusted in the
event of any stock dividend, stock

                                      -15-

<PAGE>

split, combination, recapitalization or other similar event with respect to the
Series B Preferred Stock.

     "Qualified Sale of the Corporation" means any Sale of the Corporation at a
price per share in cash or other securities not less than three times the
Conversion Price other than a Sale of the Corporation in which the Holders or
any other holders of Capital Stock of the Corporation receive Capital Stock of a
Person (the "Acquirer Stock") that is subject to a Significant Restriction.

     "Qualified Public Offering" means any public offering by the Corporation of
its Common Stock consummated pursuant to an effective registration statement
under the Securities Act of 1933 or any similar federal statute then in force
and yielding the Corporation gross proceeds of at least $70,000,000, and at a
public offering price per share of not less than three times the then applicable
Conversion Price, other than an offering of shares being issued as consideration
in a business acquisition or combination or an offering in connection with an
employee benefit plan.

     "Reorganization" means any merger, reorganization, recapitalization or
consolidation, which affects any Capital Stock of the Corporation, other than a
Sale of the Corporation.

     "Sale of the Corporation" means a single transaction or a series of
transactions to which the Corporation is a party pursuant to which a Person or
Persons acquire (i) Capital Stock of the Corporation possessing the voting power
to elect a majority of the Corporation's board of directors or more than fifty
percent (50%) of the voting power of the Corporation (whether by merger,
consolidation or sale or transfer of the Corporation's Capital Stock), provided,
however, that a Qualified Public Offering or the sale of Series B Preferred
Stock that results in an acquisition of voting power shall not be a Sale of the
Corporation; or (ii) all or substantially all of the Corporation's assets
determined on a consolidated basis.

     "Senior Capital Stock" has the meaning set forth in Section 9 hereof.

     "Series A Preferred Stock" means the Corporation's Series A Junior
Participating Preferred Stock.

     "Series B Dividends" has the meaning set forth in Section 2(a) hereof.

     "Series B Preferred Stock" means the Corporation's Series B Convertible
Redeemable Preferred Stock, $.01 par value per share.

     "Significant Restriction" shall mean (a) Low Trading Volume, with respect
to any Acquirer Stock that is publicly traded and (b) any shares of a
privately-held company or shares of a publicly-traded company that are not
registered, or will not be registered within 45 days following an applicable
Sale of the Corporation, pursuant to an effective registration statement for
resale under the Securities Act of 1933, as amended.

     "Subsidiary" means, with respect to any Person, any corporation,
partnership, association or other business entity of which (i) if a corporation,
a majority of the total voting power of shares of stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or

                                      -16-

<PAGE>

indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof, or (ii) if a partnership, association or other
business entity, a majority of the partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by
any Person or one or more Subsidiaries of that person or a combination thereof.
For purposes hereof, a Person or Persons shall be deemed to have a majority
ownership interest in a partnership, association or other business entity if
such Person or Persons shall be allocated a majority of partnership, association
or other business entity gains or losses or shall be or control the managing
general partner of such partnership, association or other business entity.

     "Trading Day" means, in respect of any securities exchange or securities
market, each Monday, Tuesday, Wednesday, Thursday and Friday, other than any day
on which securities are not traded on the applicable securities exchange or in
the applicable securities market.

     14. SEVERABILITY OF PROVISIONS. If any right, preference or limitation of
the Series B Preferred Stock set forth in this Certificate of Designation (as
such Certificate of Designation may be amended from time to time) is invalid,
unlawful or incapable of being enforced by reason of any rule, law or public
policy, all other rights preferences and limitations set forth in this
Resolution (as so amended) which can be given effect without implicating the
invalid, unlawful or unenforceable right preference or limitation shall,
nevertheless, remain in full force and effect, and no right, preference or
limitation herein set forth shall be deemed dependent upon any other right,
preference or limitation unless so expressed herein.

     IN WITNESS WHEREOF, this Certificate of Designation is executed on behalf
of the Corporation by its President and Chief Executive Officer on May 14, 2001.

                                        By:     /s/ R. Lee Hamilton, Jr.
                                           -------------------------------------
                                                  R. Lee Hamilton, Jr.
                                           President and Chief Executive Officer

                                      -17-

<PAGE>

                                   Exhibit B

                              AMENDED AND RESTATED
                              AIRNET BONUS PROGRAM
                      DATED AND EFFECTIVE _______ __, 2003

The Amended and Restated AirNet Bonus Program (the "BONUS PROGRAM") shall
consist of an Acquisition Bonus Program for Employees and a Management Bonus
Program, each described below. This BONUS PROGRAM replaces the Amended and
Restated AirNet Bonus Program dated and effective August 12, 2002.

I.   BONUS PROGRAM FOR EMPLOYEES TIED TO SALE OF CONVERTIBLE NOTES OTHER THAN
IN CONNECTION WITH THE SALE OF THE COMPANY.

AirNet Communications Corporation has issued secured convertible promissory
notes in the aggregate amount of $16,000,000 ("Convertible Notes") to TECORE,
Inc. ("Tecore") and to SCP Private Equity Partners II, LLP ("SCP") (SCP and
Tecore, and any of their affiliates who acquire an interest in the respective
Convertible Notes each referred to as a "Noteholder" and together referred to as
"Noteholders"). The employee share under this Bonus Program tied to the sale of
Convertible Notes ("CNBP") shall be ten percent (10%) ("Allocation Amount")
calculated as a percentage of the aggregate proceeds in excess of the principal
balance and related accrued and unpaid interest then outstanding under the
Convertible Note (or portion of a Convertible Note sold) and paid to any
Noteholder in connection with the sale by such Noteholder to any party of all or
any portion of the Convertible Notes, other than in connection with a Sale of
the Company (as defined below). By way of illustration: (a) if the principal
balance under a Convertible Note is $9,000,000 and the amount of accrued and
unpaid interest is $1,000,000 and a Noteholders sells 100% of the Convertible
Note for $20,000,000, the Sale of Note Proceeds (defined below) available for
distribution to the Noteholder in connection with their sale of all of the
Convertible Note would be $10,000,000, and $1,000,000 would be allocated to the
CNBP; and (b) if the principal balance then outstanding under a Convertible Note
is $9,000,000 and the amount of accrued and unpaid interest is $1,000,000 and a
Noteholder sells one half of the Convertible Note for $7,000,000, the Sale of
Note Proceeds available for distribution to the Noteholder would be $2,000,000
(the amount in excess of one half of the principal balance or $4,500,000 plus
one half of the related accrued and unpaid interest, or the amount in excess of
$5,000,000) and the Allocation Amount to be allocated to the CNBP would be 10%
of $2,000,000 or $200,000.

The obligation of the Noteholders to fund the CNBP is contained in the Tag Along
Allocation Agreement dated as of _____ __, 2003 by and among the Company and the
Noteholders (the "Tag Along Allocation Agreement"). If either or both of the
Noteholders receive consideration other than cash for the sale of the
Convertible Notes other than in connection with the Sale of the Company then the
CNBP may be funded in-kind in the same proportion the Noteholders receive
in-kind consideration. Whether in cash or in-kind the Company shall withhold
payroll taxes at the time of the distribution of the Allocation Amount available
for distribution under this CNBP in the minimum amount required by law (unless
an Eligible Employee requests additional withholding) in compliance with all
applicable Internal Revenue Service ("IRS") and other regulations. If the
distribution is other than in cash then the Company shall withhold stock or
property equal to the withholding amount at the transaction value in compliance
with IRS regulations or other regulations. The Company shall remit payment to
the IRS and applicable taxing authorities in accordance with applicable IRS and
other regulations.

<PAGE>

II.  MANAGEMENT AND EMPLOYEE BONUS PROGRAM IN CONNECTION WITH THE SALE OF THE
COMPANY.

In the event of the Sale of the Company (as defined below), ten percent (10%) of
the Net Proceeds to Securityholders (as defined below) will be allocated by the
Company to the Management and Employee Bonus Program ("MBP").

If the Securityholders of the Company receive consideration other than cash in
connection with the Sale of the Company then the MBP may be funded in-kind in
the same proportion the Securityholders of the Company receive in-kind
consideration in connection with the Sale of the Company. By way of
illustration, if the Acquisition Price is $31,000,000 and the Net Proceeds to
Securityholders is $29,000,000, then $2,900,000 would be allocated to the MBP.

The obligation of the Noteholders to fund the MBP is contained in the Tag Along
Allocation Agreement. This obligation shall be reduced to the extent the amounts
payable to Eligible Employees is reduced due to such Employees' In-the-money
Options as described in Paragraph 3 below. Whether in cash or in-kind the
Company shall withhold payroll taxes at the time of the distribution of the Net
Proceeds to Securityholders available for distribution in the minimum amount
required by law (unless an Eligible Employee requests additional withholding) in
compliance with all applicable IRS and other regulations. If the distribution is
other than in cash then the Company shall withhold stock or property equal to
the withholding amount at the transaction value in compliance with IRS
regulations or other regulations. The Company shall remit payment to the IRS and
applicable taxing authorities in accordance with applicable IRS and other
regulations.

III. DEFINITIONS.

"SALE OF NOTE PROCEEDS" shall mean the proceeds paid to Noteholders for the sale
of all or any portion of the Convertible Notes by the Noteholders, other than in
connection with the Sale of the Company, in excess of the amount of the then
outstanding principal balance and related accrued unpaid interest payable under
the Convertible Notes sold or such portion of the Convertible Notes so sold, if
only a portion is sold.

"SECURITIES" of the Company shall mean shares of common stock, preferred stock,
or securities convertible into shares of common stock or preferred stock,
including options, warrants, the Convertible Notes, and any other convertible
notes.

"SECURITYHOLDERS" shall mean holders of the Company's then outstanding
Securities.

"NET PROCEEDS TO SECURITYHOLDERS" shall mean the net sales proceeds available
for distribution to the Company's Securityholders in connection with the Sale of
the Company, after deducting from the Acquisition Price transaction expenses
relating directly to the Sale of the Company including attorneys fees,
accounting fees, and underwriting or brokerage commissions; provided that if a
Noteholder or the Noteholders sell all or any portion of their Convertible Notes
in connection with a Sale of the Company, (or if a Noteholder or the Noteholders
receive sales proceeds in satisfaction of the indebtedness represented by their
Convertible Notes) only the proceeds payable to such Noteholders in excess of
the amount of the then outstanding principal balance and related accrued unpaid
interest payable under the Convertible Notes sold or such portion of the
Convertible Notes so sold shall be included in NET PROCEEDS TO SECURITYHOLDERS.

                                      -2-

<PAGE>

"SALE OF THE COMPANY" shall mean (i) a sale or exchange of all or substantially
all of the assets of the Company (including a sale, disposition, or exchange in
a liquidation but excluding any such sale or exchange to a direct or indirect
subsidiary ("Successor Subsidiary") of the Company) by the Company or by a
Successor Subsidiary or (ii) a sale or exchange of all or substantially all of
the outstanding capital stock of the Company or Successor Subsidiary resulting
in a Change of Control of the Company or Successor Subsidiary, or (iii) a
merger, consolidation or other business combination (excluding any issuance of
previously un-issued voting securities from the Company in connection with an
investment in the Companyby a Noteholder or any third party or exercise of
conversion rights by a Noteholder) resulting in a Change of Control of the
Company or Successor Subsidiary, as a result of which the Company or the
Successor Subsidiary is not the continuing or surviving corporation.

"CHANGE OF CONTROL" means the acquisition by any individual, entity or group of
50% or more of the outstanding voting securities of the Company or 50% or more
of the combined voting power of then outstanding voting securities of the
Company entitled to vote generally in the election of directors.

"ACQUISITION PRICE" means the aggregate sum of money and/or fair market value of
property (valued as of the date of closing) to be paid by an acquiring party to
the Company or to its Securityholders in connection with a Sale of the Company.
For purposes of the Bonus Program, if the acquiring party is then a current
Securityholder or an affiliate of a current Securityholder ("CURRENT
SECURITYHOLDER ACQUIRING PARTY") which is (a) acquiring the assets of the
Company in a transaction in which the Current Securityholder Acquiring Party
receives no distribution of money or property with respect to its Securities or
a distribution which is less than the per-share amount received by other
Securities holding the same class or series of Securities, on an as-converted
basis, (b) engaging in a merger, consolidation or other business combination
with the Company in which the Company is not the continuing or surviving
corporation and in which the Current Securityholder Acquiring Party receives no
money or property in exchange for its Securities or an amount of money or
property which is less than the per-share amount received by other
Securityholders holding the same class or series of Securities, on an
as-converted basis, or (c) acquiring Company Securities from Securityholders but
not from itself or the current Securityholder affiliated with the Current
Securityholder Acquiring Party, the amount of the Acquisition Price shall
include the value of the shares of Company common stock held by such Current
Securityholder Acquiring Party or underlying any Convertible Notes or other
convertible Securities held by such Current Securityholder Acquiring Party based
on the same value per share that will be paid or distributed to Securityholders
owning the same class or series of shares, Convertible Notes or other
convertible securities.

Should a Current Securityholder Acquiring Party be the purchaser in a Sale of
the Company and that party does not receive, or waives its right to receive, all
or any portion of the purchase price otherwise payable to Securityholders, then
and only in that event, the Net Sales Proceeds to Securityholders shall include
the value of the Company Securities held by such Current Securityholder
Acquiring Party based on the same value per share that will be paid or
distributed to Securityholders owning the same class or series of shares,
Convertible Notes or other convertible securities (the "Value Adjustment"). The
payment of bonuses applicable to the Value Adjustment is an obligation of the
Company and shall not reduce the amount of Net Proceeds to Securityholders
otherwise payable to Securityholders other than the Eligible Employees
hereunder.

THE CNBP AND THE MBP SHALL BE ADMINISTERED AS FOLLOWS:

                                      -3-

<PAGE>

1. Only employees (the "ELIGIBLE EMPLOYEES") designated by the Company's Chief
Executive Officer, with the review and approval of the Compensation Committee
and the Company's Board of Directors (the "BOARD") shall be entitled to
participate in the CNBP and the MBP.

2. Anything contained herein to the contrary notwithstanding, the total amount
allocable to the Eligible Employees from the CNBP shall not exceed ten percent
(10%) of the Sale of Note Proceeds and the total amount allocable to the
Eligible Employees from the MBP shall not exceed ten percent (10%) of the Net
Proceeds to Securityholders.

3. All amounts payable from the MBP to an Eligible Employee shall be reduced by
an amount equal to the value of the difference between the exercise price of
each Company common stock option ("IN-THE-MONEY OPTIONS") held by such Eligible
Employee that is "in-the-money" and the price of an underlying share of the
Company's common stock (the "PER-SHARE PRICE"); provided the shares underlying
the In-the-Money Options are purchased by the acquiring party in connection with
the Sale of the Company. Such Per-Share Price shall be calculated by dividing
the Net Proceeds to Securityholders by the number of shares of the Company's
common stock deemed to be outstanding just prior to the Sale of the Company,
including shares underlying Convertible Notes, if any, and all In-The-Money
Options. Options exercised from and after the effective date of this Amended and
Restated Bonus Program and preceding a Sale of the Company shall be included in
the calculation described in this Section 3.

4. The allocation of the Sale of Note Proceeds under the CNBP and the Net
Proceeds to Securityholders under the MBP among the Eligible Employees shall be
at the discretion the Company's Chief Executive Officer, with the review and
approval of the Compensation Committee and the Board of Directors. Any
consideration received by an Eligible Employee pursuant to the Bonus Program
shall be in addition to, and shall not reduce or replace, the amount of
consideration such Eligible Employee may otherwise be entitled to as a
stockholder of the Company.

5. All payments due from the Company to Plan Participants under this Bonus
Program, will be made within five (5) business days from the Company's receipt
of the Allocation Amount with respect to the CNBP and within five (5) business
days from the closing of a Sale of the Company with respect to the MBP.

                                      -4-

<PAGE>

                                   Exhibit C

                      FIRST AMENDMENT TO SECURITY AGREEMENT
                      -------------------------------------

     THIS FIRST AMENDMENT TO SECURITY AGREEMENT (this "Amendment") is made and
entered into this ____ day of __________, 2003, by and among AIRNET
COMMUNICATIONS CORPORATION (the "Borrower"), SCP PRIVATE EQUITY PARTNERS II,
L.P. ("SCP"), and TECORE, INC. ("TECORE").

                                    RECITALS:
                                    ---------

     The parties are parties to that certain Security Agreement, dated January
24, 2003 (the "Security Agreement") pursuant to which the Borrower granted unto
SCP and TECORE, as the Lenders, a security interest in and to certain
Collateral. Capitalized terms used herein that are defined in the Security
Agreement shall have the meanings defined therein.

     The Lenders have, effective as of the date hereinabove set forth, extended
additional credit, and made additional loans, to Borrower. The Borrower has
issued to SCP a Senior Secured Convertible Note in the principal amount of
$4,000,000 (the "SCP Note"), and the Borrower has issued to TECORE a Senior
Secured Convertible Note in the principal amount of $12,000,000 (the "TECORE
Note") and, together with the SCP Note, the "Convertible Notes"). The parties
desire to amend the Security Agreement to reflect their agreement and
understanding that the rights and privileges granted to the Lenders thereunder
shall apply to the indebtedness evidenced by the Convertible Notes.

     NOW, THEREFORE, for and in consideration of the credit extended to the
Borrower by the Lenders, as reflected in the Convertible Notes, and in further
consideration of the premises, and intending to be legally bound, the parties
covenant and agree as follows:

     1.  Amendments to Security Agreement. The Security Agreement is hereby
amended as follows:

         a.   The following new definitions are added to Section 1:

              "Senior Secured Convertible Notes" shall mean that certain Senior
         Secured Convertible Note, in the principal amount of $12,000,000,
         issued by the Borrower and payable to the order of TECORE, dated
         ___________, 2003, and that certain Senior Secured Convertible Note, in
         the principal amount of $4,000,000, issued by the Borrower and payable
         to the order of SCP dated ______________, 2003.

<PAGE>

              "Securities Purchase Agreement" shall mean that certain Securities
         Purchase Agreement, dated _____________, 2003, by and among Borrower
         and the Lenders, pursuant to which the Borrower issued the Senior
         Secured Convertible Notes to the Lenders."

         b.   The following sentence shall be added to the end of the
definition of the term "Debt" in Section 1:

         "Without limiting the generality of the foregoing, the term "Debt"
         shall also include all indebtedness, both principal and interest, of
         the Borrower to the Lenders now or hereafter due and evidenced by the
         Senior Secured Convertible Notes."

         c.   The definition of the term "Event of Default" in Section 1 shall
be revised by deleting the period at the end of the sentence, and by adding the
following phrase:

         ", or (iii) any default by the Borrower in the performance of its
         obligations under either of the Senior Secured Convertible Notes, or
         under the Securities Purchase Agreement, or any of the Events of
         Default described therein."

         d.   The definition of the term "Loan Documents" in Section 1 shall
be revised to add the following at the end thereof:

         "Without limiting the generality of the foregoing, the term "Loan
         Documents" shall include the Senior Secured Convertible Notes and the
         Securities Purchase Agreement."

         e.   Section 2 of the Security Agreement is hereby amended by adding
the phrase ", the Senior Secured Convertible Notes" immediately after the word
"Notes" in the first sentence thereof.

         f.   Section 10 of the Security Agreement is hereby deleted, and the
following new Section 10 is hereby substituted in lieu thereof:

         "10. Termination.

              (a) Subject to the provisions of this Section 10, upon payment and
         performance in full of the Debt, this Agreement shall terminate and be
         of no further force and effect and the Lenders shall thereupon
         terminate their security interest in the Collateral. Until such time,
         however, this Agreement shall be binding upon and shall inure to the

                                       2

<PAGE>

         benefit of the parties, their successors and assigns provided that,
         without the prior written consent of the Lenders, the Borrower may not
         assign this Agreement or any of its rights under this Agreement or
         delegate any of its duties or obligations under this Agreement and any
         such attempt at assignment or delegation shall be null and void. This
         Agreement is not intended and shall not be construed to obligate the
         Lenders to take any action whatsoever with respect to the Collateral or
         to incur expenses or perform or discharge any obligation, duty or
         disability of the Borrower, nor shall this Agreement be construed to
         abrogate any responsibility of the Lenders under the applicable
         provisions of the Uniform Commercial Code relating to the disposition
         of the Collateral.

              (b) For purposes of this Agreement, the Debt shall be deemed paid
         and performed in full upon both (i) the conversion into common stock of
         all amounts, including principal and interest, represented by the
         Senior Secured Convertible Notes pursuant to the terms of said Senior
         Secured Convertible Notes, and (ii) the payment in full of all accrued
         but unpaid interest under the Notes, as amended by the Allonges, dated
         ____________________, 2003.

              (c) If, after receipt of any payment of, or application of the
         proceeds of, the Collateral to the payment of all or any part of, the
         Debt, Lenders, or either of them, are compelled to surrender or
         voluntarily surrender such payment or proceeds to any person, because
         such payment or application of proceeds is or may be avoided,
         invalidated, declared fraudulent, set aside, declared to be void or
         voidable as a preference, fraudulent conveyance, impermissible set-off,
         or diversion of trust funds, or because of any settlement or compromise
         of such claim, this Agreement shall be reinstated and shall continue to
         be in full force and effect. This reinstatement and continuing effect
         shall exist as if such payment or proceeds had not been received by
         Lenders notwithstanding any revocation or termination of this
         Agreement, or the surrender of any instrument evidencing the Debt, or
         the return or cancellation of any instrument or document relating to
         the Debt."

     2.  Acknowledgment and Ratification. The parties hereto hereby acknowledge,
confirm and ratify the terms of the Security Agreement, as amended by this
Amendment.

     3.  Counterparts. The Amendment may be executed in several counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same instrument.

                                       3

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment as of the day and year first hereinabove set forth.

                                        BORROWER:
                                        AIRNET COMMUNICATIONS CORPORATION

                                        By:
                                            ------------------------------------

                                        LENDERS:
                                        SCP PRIVATE EQUITY PARTNERS II, L.P.

                                        By:  SCP Private Equity II
                                             General Partner, L.P.,
                                             its general partner

                                        By:  SCP Private Equity II, LLC,
                                             its manager

                                        By:
                                            ------------------------------------

                                        TECORE, INC.

                                        By:
                                            ------------------------------------

                                       4

<PAGE>

                                   Exhibit D

     This Note has been acquired for investment and has not been registered
under the Securities Act of 1933, as amended, or the securities laws of any
other jurisdiction. This Note is subject to the terms of a Securities Purchase
Agreement, dated as of June 5, 2003, among the issuer, TECORE, Inc, and SCP
Private Equity Partners II, L.P. (the "Purchase Agreement"), a copy of which may
be obtained by the registered holder hereof from the Secretary of the issuer.
The sale and transfer of this Note is restricted under the terms of the Tag
Along Allocation Agreement, dated as of the date of this Note between the
issuer, TECORE, Inc, and SCP Private Equity Partners II, L.P.(the "Tag Along
Agreement"). No transfer of any interest in this Note shall be effective unless
permitted by and made in accordance with the Purchase Agreement and the Tag
Along Agreement, and by accepting this Note the holder of this Note agrees to be
bound by the Purchase Agreement and the Tag Along Agreement.

                                   $12,000,000

                        AIRNET COMMUNICATIONS CORPORATION

                         Senior Secured Convertible Note

                               __________ __, 2003

     1.  General. AIRNET COMMUNICATIONS CORPORATION, a Delaware corporation
(hereinafter called the "Company"), for value received, hereby promises to pay
to TECORE, INC. ("TECORE"), or registered assigns, the principal amount of
TWELVE MILLION DOLLARS ($12,000,000.00), or so much thereof as shall have been
paid to the Company by TECORE pursuant to the terms of the Securities Purchase
Agreement, dated as of June 5, 2003, among the Company, TECORE, Inc, and SCP
Private Equity Partners II, L.P. (the "Purchase Agreement"), as set forth on
Schedule A attached hereto and made a part hereof, on _________ __, 2007 (the
"Maturity Date"), and to pay interest on the unpaid balance of the principal
hereof from the date hereof at the rate of twelve percent (12%) per annum (which
shall accrue on a daily basis), payable at maturity, and to pay interest at the
rate of fifteen percent (15%) per annum on any overdue principal, from the due
date thereof until the obligation of the Company with respect to the payment
thereof shall be discharged. All payments of principal and interest on this Note
shall be paid by Company check or official bank check sent first class mail,
postage prepaid, to such address as the holder hereof shall notify the Company
of in writing, or, absent such notice, to the last address of such holder as
recorded in the Company' s books (in which case the Company may rely on such
address and shall be deemed to have discharged its obligations hereunder as to
any payments made to that address). At the option of the holder, the Company
shall pay principal and interest on this Note by wire transfer in accordance
with wire transfer instructions provided by the holder to the Company at least
ten (10) days prior to the date on which the principal and interest is payable
hereunder. The Company shall have no right to prepay any principal or interest
due under this Note.

     2.  The Notes. As used herein, the term "Note" or "Notes" refer to the
Senior Secured Convertible Notes in the aggregate principal amount of
$16,000,000 issued pursuant to the

<PAGE>

Purchase Agreement and to any Note or Notes executed and delivered by the
Company in exchange or replacement hereof pursuant to Section 9 hereof or
pursuant to any transfer of a Note. Unless the context otherwise requires, the
term "holder" is used herein to mean the person named as payee in Section 1
hereof or any other person who shall at the time be the holder or assignee of
this Note. This Note is referred to in the Purchase Agreement and is entitled to
the benefits of the terms and provisions of the Purchase Agreement. No reference
herein to the Purchase Agreement and no provision of this Note or the Purchase
Agreement shall alter the obligation of the Company, which is absolute and
unconditional, to pay the principal and interest on the Note at the time and in
the manner prescribed herein.

     3.  Security Interest. This Note is secured by and is entitled to the
benefits of (i) the Security Agreement, dated as of January 24, 2003, by and
among the Company and the purchasers of the Notes (the "Original Security
Agreement"), as amended by the First Amendment to Security Agreement, dated as
of _________ __, 2003, by and among the Company and the purchasers of the Notes
(the "Amendment to Security Agreement") (the Original Security Agreement, as so
amended by the Amendment to Security Agreement is referred to as the "Amended
Security Agreement"), (ii) the "Amended and Restated Technology Collateral
Escrow Agreement, dated as of _______ __, 2003, by and among the Company and the
purchasers of the Notes (the "Escrow Agreement"), and (iii) the Amended and
Restated Collateral Assignment of Patents, Trademarks & Copyrights, dated as of
_________ __, 2003, by and among the Company and the purchaser of the Notes (the
"Collateral Assignment"). (The Amended Security Agreement, the Escrow Agreement,
and the Collateral Assignment are sometimes referred to herein as the
"Collateral Agreements.") In addition to the rights and remedies given it by
this Note, the Collateral Agreements, and the Purchase Agreement, the holder
shall have all those rights and remedies allowed by applicable laws, including
without limitation, the Uniform Commercial Code. The rights and remedies of the
holder are cumulative, and recourse to one or more right or remedy shall not
constitute a waiver of the others. The Company shall be liable for all
commercially reasonable costs, expenses and attorneys' fees incurred by the
holder in connection with the collection of the indebtedness evidenced by the
Note.

     4.  Voting Rights.

         4.1.   General Rights. Except as otherwise provided herein or as
required by law, the holders of the Notes:

                4.1.1.  shall be entitled to vote in respect to the corporate
         affairs and management of the Company to the extent hereinafter
         provided;

                4.1.2.  shall have the same right of inspection of the books,
         accounts and other records of the Company which the holders of Common
         Stock have or may have under the Delaware General Corporation Law (the
         "GCL") or the Company's certificate of incorporation; and

                                       2

<PAGE>

                4.1.3.  shall be deemed to be stockholders of the Company, and
         the Notes shall be deemed to be stock, for the purpose of any provision
         of the GCL which requires the vote of stockholders as a prerequisite to
         any corporate action.

         4.2.   Number of Votes. The Notes shall be voted equally with the
shares of the Common Stock of the Company, and not as a separate class, at any
annual or special meeting of stockholders of the Company or in connection with
any solicitation of written consents in lieu of a meeting, upon the following
basis: the holder of this Note shall be entitled to such number of votes as
shall be equal to the whole number of shares of Common Stock into which this
Note is convertible pursuant to Section 5 hereof immediately after the close of
business on the record date fixed for such meeting or the effective date of such
written consent; provided, however, that in calculating the number of shares
into which this Note is then convertible for purposes of calculating such number
of votes, the initial Conversion Price, as hereinafter defined, shall be deemed
to be $.57 representing the average closing price of the Common Stock on the
date of execution of the Purchase Agreement and the four business days prior to
such execution (the "Deemed Conversion Price") (which Deemed Conversion Price is
subject to adjustment in the same manner that the Conversion Price is subject to
adjustment as provided in Sections 5.5 and 5.6).

     5.  Conversion of Note.

         5.1.   Right to Convert. Subject to and upon compliance with the
provisions hereof, the holder of this Note shall have the right, at such
holder's option, at any time, to convert all or any portion of the unpaid
principal amount hereof and all or any portion of accrued but unpaid interest
into shares of Common Stock, $.001 par value, of the Company ("Common Stock") at
the price of $0.10810 per share (the "Original Conversion Price"), or, in case
an adjustment of such price has taken place pursuant to the further provisions
of this Section 5, then at the price as last adjusted and in effect on the date
this Note or portion hereof is presented for conversion (the Original Conversion
Price or the Original Conversion Price as last adjusted, as the case may be,
being referred to herein as the "Conversion Price"). The minimum principal
amount of this Note which may be converted at any time shall be the lesser of
(a) $100,000 or (b) the outstanding principal balance of this Note.

         5.2.   Exercise of Conversion Privilege. In order to exercise the
conversion privilege, the holder of this Note shall present it to the Company at
the office of the Company, accompanied by written notice to the Company (with
copies to the holders of any other Notes) that the holder elects to convert this
Note, or, if less than the entire unpaid principal amount hereof and interest
thereon is to be converted, the portion hereof to be converted. Such notice
shall also state the name or names (with address) in which the certificate or
certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued. As soon as practicable after the receipt of such
notice and the presentation of this Note, the Company shall issue and shall
deliver to the holder of this Note a certificate or certificates for the number
of full shares of Common Stock issuable upon the conversion of this Note (or
portion hereof), and provision shall be made for any fraction of a share as
provided in Section 5.3 hereof. Such conversion shall be deemed to have been
effected immediately prior to the close of business on the date on which such
notice shall have been received by the Company and this Note shall have been

                                       3

<PAGE>

presented as aforesaid, and conversion shall be at the Conversion Price in
effect at such time, and at such time the rights of the holder of this Note as
such holder shall cease (to the extent this Note is so converted) and the person
or persons in whose name or names any certificate or certificates for shares
shall be issuable upon such conversion shall be deemed to have become the holder
or holders of record of the shares represented thereby. Upon conversion of less
than all of the unpaid principal amount and interest of this Note, appropriate
notation shall be made on this Note of the principal amount and/or interest so
converted, and this Note shall be retained by the holder following such
notation. Upon conversion of the balance of the principal amount and interest of
this Note, this Note shall be deemed cancelled and the holder shall surrender
this Note to the Company.

         5.3.   Adjustment for Fractional Shares. No fractional shares or scrip
shall be issued upon conversions of the Note. Any remaining principal amount
shall be paid in cash.

         5.4.   Adjustment of Conversion Price.

                5.4.1.  Upon Dilutive Issuances. If the Company shall issue or
         sell shares of its Common Stock or "Common Stock Equivalents" (as
         defined in Section 5.4.2 below) without consideration or at a price per
         share or "Net Consideration Per Share" (as defined in Section 5.4.3
         below) less than the Conversion Price in effect immediately prior to
         such issuance or sale, then in each such case the Conversion Price,
         except as hereinafter provided, shall be lowered so as to be equal to
         the greater of (1) the net aggregate consideration, if any, received or
         receivable by the Company for the total number of such additional
         shares of Common Stock so issued or deemed to be issued divided by the
         number of shares of Common Stock so issued or deemed to be issued, or
         (2) $0.001.

                5.4.2.  Common Stock Equivalents.

                (a)     General. For the purposes of this Section 5.4, the
                        issuance of any warrants, options, subscription or
                        purchase rights with respect to shares of Common Stock
                        and the issuance of any securities convertible into or
                        exchangeable for shares of Common Stock and the issuance
                        of any warrants, options, subscription or purchase
                        rights with respect to such convertible or exchangeable
                        securities (collectively, "Common Stock Equivalents"),
                        shall be deemed an issuance of Common Stock. Any
                        obligation, agreement or undertaking to issue Common
                        Stock Equivalents at any time in the future shall be
                        deemed to be an issuance at the time such obligation,
                        agreement or undertaking is made or arises. No
                        adjustment of the Conversion Price shall be made under
                        this Section 5.4 upon the issuance of any shares of
                        Common Stock which are issued pursuant to the exercise,
                        conversion or exchange of any Common Stock Equivalents
                        if any adjustment shall previously have been made upon
                        the issuance of any such Common Stock Equivalents as
                        above provided.

                                       4

<PAGE>

                (b)     Adjustments for Adjustment, Cancellation or
                        Expiration of Common Stock Equivalents. Should the Net
                        Consideration Per Share of any such Common Stock
                        Equivalents be decreased or increased from time to time,
                        then, upon the effectiveness of each such change, the
                        Conversion Price will be that which would have been
                        obtained (1) had the adjustments made pursuant to
                        Section 5.4.1 upon the issuance of such Common Stock
                        Equivalents been made upon the basis of the new Net
                        Consideration Per Share of such securities, and (2) had
                        the adjustments made to the Conversion Price since the
                        date of issuance of such Common Stock Equivalents been
                        made to such Conversion Price as adjusted pursuant to
                        clause (1) above. Any adjustment of the Conversion Price
                        with respect to this Section which relates to any Common
                        Stock Equivalent shall be disregarded if, as, and when
                        such Common Stock Equivalent expires or is canceled
                        without being exercised, or is repurchased by the
                        Company at a price per share at or less than the
                        original purchase price, so that the Conversion Price
                        effective immediately upon such cancellation or
                        expiration shall be equal to the Conversion Price that
                        would have been in effect had the expired or canceled
                        Common Stock Equivalent not been issued.

                5.4.3.  Net Consideration Per Share. For purposes of this
         Section 5.4, the "Net Consideration Per Share" which shall be
         receivable by the Company for any Common Stock Equivalents shall be
         determined as follows:

                (a)     The "Net Consideration Per Share" shall mean the
                        amount equal to the total amount of consideration, if
                        any, received by the Company for the issuance of such
                        Common Stock Equivalents, plus the minimum amount of
                        consideration, if any, payable to the Company upon
                        exercise, conversion or exchange thereof, divided by the
                        aggregate number of shares of Common Stock that would be
                        issued if all such Common Stock Equivalents were
                        exercised, exchanged or converted.

                (b)     The "Net Consideration Per Share" which shall be
                        receivable by the Company shall be determined in each
                        instance as of the date of issuance of Common Stock
                        Equivalents without giving effect to any possible future
                        upward price adjustments or rate adjustments which may
                        be applicable with respect to such Common Stock
                        Equivalents.

                5.4.4.  Stock Dividends for Holders of Capital Stock Other Than
         Common Stock. In the event that the Company shall make or issue, or
         shall fix a record date for the determination of holders of any capital
         stock of the Company,

                                       5

<PAGE>

         other than holders of Common Stock, entitled to receive a dividend or
         other distribution payable in Common Stock or securities of the
         Company convertible into or otherwise exchangeable for shares of
         Common Stock of the Company, then such Common Stock or other
         securities issued in payment of such dividend shall be deemed to have
         been issued for a consideration of $0.001.

                5.4.5.  Consideration Other than Cash. For purposes of this
         Section 5.4, if a part or all of the consideration received by the
         Company in connection with the issuance of shares of the Common Stock
         or the issuance of any of the securities described in this Section 5.4
         consists of property other than cash, such consideration shall be
         deemed to have a fair market value as is reasonably determined in good
         faith by the Board of Directors of the Company. In the event of any
         dispute between the holders of the Note and the Company regarding the
         determination of fair market value, at the option of the holder of the
         Note, the Company shall engage a consulting firm or investment banking
         firm, reasonably acceptable to the holder of the Note, to prepare an
         independent appraisal of the fair market value of such property to be
         distributed. The expenses of any appraisal by such consulting or
         investment banking firm shall be borne by the Company only if the fair
         market value of such property to be distributed, as determined in the
         independent appraisal, differs from the amount determined by the Board
         of Directors by at least ten percent (10%), and otherwise the expenses
         of any such appraisal shall be paid by the holders of the Notes.

                5.4.6.  Exercise of Outstanding Warrants or Options.

                (a)     In the event that the holder of a warrant to
                        purchase Common Stock which is outstanding on the date
                        of original issuance of this Note (an "Outstanding
                        Warrant") (such date referred to as the "Original
                        Issuance Date") shall exercise such Outstanding Warrant
                        on a date subsequent to the Original Issuance Date,
                        then, in each such case, the Conversion Price of this
                        Note then in effect shall be automatically adjusted
                        downward so that the number of shares of Common Stock
                        into which this Note is convertible (at such adjusted
                        Conversion Price) shall represent the same Percentage
                        Ownership (as hereinafter defined) as the Percentage
                        Ownership which the shares into which this Note was
                        convertible at the unadjusted Conversion Price
                        represented immediately prior to the exercise of such
                        Outstanding Warrant.

                (b)     In the event that the holder of an option to
                        purchase Common Stock which is outstanding on the
                        Original Issuance Date (an "Outstanding Option") shall
                        exercise such option on a date subsequent to the
                        Original Issuance Date, then, in each such case, the
                        Conversion Price of this Note then in effect shall be
                        automatically adjusted downward so that the number of
                        shares of Common Stock

                                       6

<PAGE>

                        into which this Note is convertible (at such adjusted
                        Conversion Price) shall represent the same Percentage
                        Ownership (as hereinafter defined) as the Percentage
                        Ownership which the shares into which this Note was
                        convertible at the unadjusted Conversion Price
                        represented immediately prior to the exercise of such
                        Outstanding Option; provided that the adjustment to the
                        Conversion Price required by this subparagraph (b) shall
                        not apply with respect to the exercise of Outstanding
                        Options to purchase up to 300,000 shares of Common Stock
                        (with appropriate adjustments to such number of shares
                        to reflect adjustments to the number of shares of Common
                        Stock issuable under outstanding options in accordance
                        with the anti-dilution terms of such options).

                (c)     In the event that the holder of preferred stock,
                        convertible into Common Stock, which is outstanding on
                        the Original Issuance Date ("Outstanding Preferred")
                        shall convert such Outstanding Preferred on a date
                        subsequent to the Original Issuance Date, then, in each
                        such case, the Conversion Price of this Note then in
                        effect shall be automatically adjusted downward so that
                        the number of shares of Common Stock into which this
                        Note is convertible (at such adjusted Conversion Price)
                        shall represent the same Percentage Ownership (as
                        hereinafter defined) as the Percentage Ownership which
                        the shares into which this Note was convertible at the
                        unadjusted Conversion Price represented immediately
                        prior to the conversion of such Outstanding Preferred.
                        Notwithstanding the foregoing, no adjustment to the
                        Conversion Price shall be made as a result of the
                        conversion of any shares of Series B Convertible Stock
                        on the Original Issuance Date.

                (d)     For purposes of this Section 5.4.6, the term
                        "Percentage Ownership" of particular shares shall mean
                        the number of votes such shares possess with respect to
                        the election generally of directors, divided by the
                        number of votes possessed by all Voting Securities at
                        such time with respect to the election generally of
                        directors. For this purpose, the term "Voting
                        Securities" shall mean all outstanding securities (debt
                        or equity) of the Company entitled to vote generally in
                        the election of directors (excluding the Notes) plus the
                        shares into which the Notes are then convertible plus
                        the shares into which all other outstanding convertible
                        securities (which term expressly excludes any
                        Outstanding Options, Outstanding Warrants, or
                        Outstanding Preferred) are then convertible plus the
                        shares which are then issuable upon the exercise of
                        options granted after the Original Issuance Date which
                        remain unexercised on the date of determination plus the
                        shares which are then issuable upon the

                                       7

<PAGE>

                        exercise of up to 300,000 Outstanding Options which
                        remain outstanding on the date of determination).

                5.4.7.  Exceptions to Anti-dilution Adjustments. This Section
         5.4 shall not apply under any of the following circumstances:

                (a)     upon the occurrence of any event which would
                        constitute an Extraordinary Common Stock Event (as
                        described below);

                (b)     except as provided in Section 5.4.6, upon the
                        exercise or conversion of any warrants, options, or
                        convertible securities issued and outstanding on the
                        date of original issuance of this Note;

                (c)     upon the grant of any options to purchase Common
                        Stock under any employee benefit plan now existing or
                        implemented in the future, provided the grant of such
                        options is approved by the Board of Directors of the
                        Company, and further provided the total number of shares
                        of Common Stock subject to options granted on or after
                        the date of original issuance of this Note is no greater
                        than 21,766,212 plus amounts permitted pursuant to
                        Section 9.11 of the Purchase Agreement; or

                (d)     upon the exercise of any options referenced in
                        Section 5.4.7(c).

         5.5.   Adjustment Upon Extraordinary Common Stock Event. Upon the
happening of an Extraordinary Common Stock Event (as hereinafter defined), the
Conversion Price shall, simultaneously with the happening of such Extraordinary
Common Stock Event, be adjusted by multiplying the Conversion Price by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such Extraordinary Common Stock Event and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately after such Extraordinary Common Stock Event, and the product so
obtained shall thereafter be the Conversion Price, which, as so adjusted, shall
be readjusted in the same manner upon happening of any successive Extraordinary
Common Stock Event Events.

         An "Extraordinary Common Stock Event" shall mean (i) the issue of
additional shares of Common Stock as a dividend or other distribution on
outstanding shares of Common Stock, (ii) subdivision of outstanding shares of
Common Stock into a greater number of shares of Common Stock, or (iii) a
combination or reverse stock split of outstanding shares of Common Stock into a
smaller number of shares of the Common Stock.

         5.6.   Adjustment Upon Capital Reorganization or Reclassification. If
the Common Stock shall be changed into the same or different number of shares of
any other class or classes of capital stock, whether by capital reorganization,
recapitalization, reclassification or otherwise (other than an Extraordinary
Common Stock Event), then and in each such event the holder of each Note shall
have the right thereafter to convert such Note into, in lieu of the num-

                                       8

<PAGE>

ber of shares of Common Stock which the holder would otherwise have been
entitled to receive, the kind and amount of shares of capital stock and other
securities and property receivable upon such reorganization, recapitalization,
reclassification or other change by the holders of the number of shares of
Common Stock into which such Note could have been converted immediately prior to
such reorganization, recapitalization, reclassification or change, all subject
to further adjustment as provided herein. The provision for such conversion
right shall be a condition precedent to the consummation by the Company of any
such transaction.

         5.7.   Certificate as to Adjustments; Notice by Company. In each case
of an adjustment or readjustment of the Conversion Price, the Company at its
expense will furnish each holder of the Note with a certificate prepared by the
Treasurer or Chief Financial Officer of the Company, showing such adjustment or
readjustment, and stating in detail the facts upon which such adjustment or
readjustment is based.

         5.8.   Consolidation or Merger. If any consolidation or merger of the
Company with another corporation shall be effected, then, as a condition of such
consolidation or merger, lawful and adequate provision shall be made whereby the
holder of the Note shall thereafter have the right to receive upon the basis and
upon the terms and conditions specified herein and in lieu of the shares of
Common Stock of the Company immediately theretofore receivable upon the
conversion of the Note, such shares of stock, securities or assets as may be
issued or payable with respect to or in exchange for a number of outstanding
shares equal to the number of shares of Common Stock immediately theretofore so
receivable by such holder had such consolidation or merger not taken place, and
in any such case appropriate provision shall be made with respect to the rights
and interests of such holder to the end that the provisions hereof (including
without limitation provisions for adjustment of the Conversion Price) shall
thereafter be applicable, as nearly as may be, in relation to any shares of
stock, securities or assets thereafter deliverable upon the exercise of such
conversion rights. The Company shall not effect any such consolidation or
merger, unless prior to or simultaneously with the consummation thereof the
successor corporation (if other than the Company) resulting from such
consolidation or merger shall assume by written instrument executed and mailed
or delivered to the holder hereof, the obligation to deliver to such holder such
shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holder may be entitled to receive. Except as expressly set
forth in this Section 5.8, however, nothing contained in this Section 5.8 will
be deemed to restrict the Company from entering into a consolidation or merger;
provided, however, that the restrictions of the Purchase Agreement shall remain
applicable.

         5.9.   Notice of Certain Actions. In case at any time:

                5.9.1.  the Company shall declare any dividend upon shares of
         its capital stock payable in securities or make any special dividend or
         other distribution;

                5.9.2.  the Company shall offer for subscription pro rata to the
         holders of any class of its capital stock any additional securities of
         any class or other rights;

                                       9

<PAGE>

                5.9.3.  there shall be any capital reorganization, or
         reclassification of the capital stock of the Company, or consolidation
         or merger of the Company with, or sale of all or substantially all its
         assets to, another corporation;

                5.9.4.  there shall be a voluntary or involuntary dissolution,
         liquidation or winding-up of the Company; or

                5.9.5.  the Company shall enter into an agreement or adopt a
         plan for the purpose of effecting a consolidation, merger, or sale of
         all or substantially all of its assets;

then, in any one or more of said cases, the Company shall give written notice,
by first class mail, postage prepaid, to the registered holder hereof, of the
date on which (a) the books of the Company shall close or a record shall be
taken for such dividend, distribution or subscription rights, or (b) such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up shall take place, as the case may be. Such notice
shall also specify the date as of which the holders of shares of record shall
participate in such dividend, distribution or subscription rights, or shall be
entitled to exchange their shares for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation, or winding-up, as the case may be. Such written notice
shall be given at least 30 days prior to the action in question and not less
than 30 days prior to the record date or the date on which the Company's
transfer books are closed in respect thereto.

         5.10.  Registration and Listing. If any shares required to be
reserved for purposes of conversions of the Note hereunder require registration
with or approval of any governmental authority under any federal (other than the
Securities Act of 1933 or similar federal statute then in force) or state law,
or listing on any national securities exchange, before such shares may be issued
upon conversion, the Company will, at its expense, as expeditiously as possible
cause such shares to be duly registered or approved, or listed on the relevant
national securities exchange, as the case may be.

         5.11.  Automatic Conversion.

                5.11.1. Events Causing Conversion. Immediately (A) upon the
         closing of a Qualified Public Offering, as hereinafter defined, but
         subject to such closing, or (B) upon the closing of a Qualified Sale of
         the Company, but subject to such closing, this Note shall be converted
         automatically into the number of shares of Common Stock into which the
         Note is then convertible pursuant to Section 5.1 as of the closing and
         consummation of such Qualified Public Offering or the date of the event
         constituting the Qualified Sale of the Company, without any further
         action by the holder of the Note and whether or not the Note is
         surrendered to the Company or its transfer agent.

                                       10

<PAGE>

                5.11.2. Definitions.

                (a)     A "Qualified Public Offering" shall mean an
                        underwritten public offering on a firm commitment basis
                        pursuant to an effective registration statement filed
                        pursuant to the Securities Act of 1933, as amended
                        (other than on Form S-4 or S-8 or any successor forms
                        thereto), covering the offer and sale of Common Stock
                        for the account of the Company in which the Company
                        actually receives gross proceeds equal to or greater
                        than $70,000,000 (calculated before deducting
                        underwriters discounts and commissions and before
                        calculation of expenses), and in which the price per
                        share of Common Stock equals or exceeds $0.3243 (such
                        price subject to adjustment in the same manner that the
                        Conversion Price is subject to adjustment under this
                        Section 5).

                (b)     A "Qualified Sale of the Company" shall mean a Sale
                        of the Company which provides for minimum consideration
                        payable with respect to each share of Common Stock (on a
                        fully diluted basis) of at least $0.3243 in cash or in
                        market value of "Liquid Stock" (such price subject to
                        adjustment in the same manner that the Conversion Price
                        is subject to adjustment under this Section 5).

                (c)     The term "Sale of the Company" shall mean a merger
                        or consolidation of the Company with another company
                        which is not an Affiliate of the Company, the sale of
                        all or substantially all of the assets of the Company to
                        a company which is not an Affiliate of the Company, or
                        the sale of all or substantially all of the outstanding
                        Common Stock of the Company to a person or persons who
                        are not then stockholders of the Company or an Affiliate
                        of the Company.

                (d)     "Liquid Stock" shall mean capital stock which is
                        registered under Section 12(b) or Section 12(g) of the
                        Securities Exchange Act of 1934, as amended, the
                        disposition of which would not be significantly
                        restricted by low trading volume; provided, that capital
                        stock which is either (i) listed for trading on the
                        NASDAQ National Market System with average daily trading
                        volume over the past six months of at least 75,000
                        shares, or (ii) listed for trading on the New York Stock
                        Exchange, Inc. shall be deemed to be Liquid Stock.

                (e)     The term "Affiliate" shall mean a person who
                        controls, is controlled by, or is under common control
                        with, the Company.

                5.11.3. Automatic Conversion Upon Failure to Pay Purchase Price
         Installment. In the event that the holder shall fail to pay any
         installment of the pur-

                                       11

<PAGE>

         chase price of this Note when due pursuant to any of Sections
         1.1(b)(ii)-(ix) of the Purchase Agreement, and such failure shall not
         be cured on or before the 20th calendar day following such due date,
         this Note shall immediately be converted automatically into the number
         of shares of Common Stock into which the Note is then convertible
         pursuant to Section 5.1 as of the close of business of such 20th day,
         without any further action by the holder of the Note and whether or not
         the Note is surrendered to the Company or its transfer agent.

                5.11.4. Surrender of Certificates Upon Automatic Conversion.
         Upon the occurrence of the conversion event specified in either Section
         5.11.1 or 5.11.3, the holder of the Note shall, upon notice from the
         Company, surrender the Note at the office of the Corporation or its
         transfer agent for the Common Stock. Thereupon, there shall be issued
         and delivered to such holder a certificate or certificates for the
         number of shares of Common Stock into which the Note so surrendered was
         convertible on the date on which the conversion occurred. The Company
         shall not be obligated to issue such certificates unless the Note is
         either delivered to the Company or any such transfer agent or the
         holder notifies the Company that the Note has been lost, stolen or
         destroyed and executes an agreement satisfactory to the Company to
         indemnify the Company from any loss incurred by it in connection
         therewith.

     6.  Event of Default. In case an Event of Default, as defined in the
Purchase Agreement, shall have occurred and be continuing, the unpaid principal
of the Note and any accrued and unpaid interest thereon may be declared, and
upon such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Purchase Agreement and the
Collateral Agreements.

     7.  Covenants. The Company covenants and agrees with the registered holder
of this Note to do (or refrain from doing) all those things required of the
Company pursuant to the covenants set forth in the Purchase Agreement and the
Collateral Agreements.

     8.  Exchange or Replacement of Note.

         8.1.   The holder of the Note, at its option, may in person or by duly
authorized attorney surrender the Note for exchange at the office of the
Company, and at the expense of the Company receive in exchange therefor a new
Note in the same aggregate principal amount as the aggregate unpaid principal
amount of the Note so surrendered and bearing interest at the same annual rate
as the Note so surrendered, each such new Note to be dated as of the date to
which interest has been paid on the Note so surrendered and to be in such
principal amount and, subject to the restrictions on transfer contained in the
Purchase Agreement, payable to such person or persons, or order, as such holder
may designate in writing; provided, however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any new Note in a name other than that of the
holder of the Note surrendered in exchange therefor. Five days prior written
notice of the holder's intention to make such exchange shall be given to the
Company.

                                       12

<PAGE>

         8.2.   Upon receipt by the Company of evidence satisfactory to it of
the loss, theft, destruction or mutilation of this Note and (in case of loss,
theft or destruction) of indemnity satisfactory to it, and upon reimbursement to
the Company of all reasonable expenses incidental thereto, and upon surrender
and cancellation of this Note, if mutilated, the Company will make and deliver a
new Note of like tenor in lieu of this Note. Any Note made and delivered in
accordance with the provisions of this paragraph (b) shall be dated as of the
date to which interest has been paid on this Note.

     9.  Amendments and Waivers. The holders of more than 80% in aggregate
principal amount of the Notes at the time outstanding and the Company may from
time to time enter into agreements for the purpose of amending or waiving any
covenant, agreement or condition of the Notes or changing in any manner the
rights of the holder of the Notes or the Company; and action of the holders of
more than 80% in aggregate principal amount of the Notes at the time outstanding
shall bind all holders of the Notes, each future-holder of the Notes and upon
the Company, whether or not such Notes shall have been marked to indicate such
amendment or waiver, but any substitute Note issued thereafter shall bear a
notation referring to any such amendment or continuing waiver.

     10. Communications. All communications provided for hereunder shall be made
in accordance with the requirements of Section 14.7 of the Purchase Agreement.

     11. Severability. Should any part but not the whole of this Note for any
reason be declared invalid, such decision shall not affect the validity of any
remaining portion, which remaining portion shall remain in force and effect as
if this Note had been executed with the invalid portion thereof eliminated, and
it is hereby declared the intention of the parties hereto that they would have
executed the remaining portion of this Note without including therein any such
part which may, for any reason, be hereafter declared invalid.

     12. Captions. The descriptive headings of the various Sections or parts of
this Note are for convenience only and shall not affect the meaning or
construction of any of the provisions hereof.

     13. Successors and Assigns. This Note shall be binding upon the parties and
their respective successors and assigns.

     14. Governing Law. This Note shall be governed by the laws of the State of
Delaware.

                                        AIRNET COMMUNICATIONS CORPORATION

                                        By:  /s/
                                           -------------------------------------

                                       13

<PAGE>

                                   SCHEDULE A

     This schedule sets forth the principal amount borrowed by the Company from
TECORE, up to the maximum amount set forth on the face of this Note.

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Date                Principal Amount          Signature of Authorized Officer of
                                                         the Company
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<PAGE>

                                   SCHEDULE B

     This schedule sets forth the principal amount and/or interest converted
into Common Stock.

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Date           Principal Amount Converted         Interest Amount Converted
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<PAGE>

                        AIRNET COMMUNICATIONS CORPORATION

                         SENIOR SECURED CONVERTIBLE NOTE

                                CONVERSION NOTICE

AirNet Communications Corporation:

     The undersigned holder of this Note hereby irrevocably exercises the option
to convert this Note, or such portion hereof as is specified below, into shares
of Common Stock of AirNet Communications Corporation in accordance with the
terms of this Note, and directs that the shares issuable and deliverable upon
the conversion be issued in the name of and delivered to the undersigned unless
a different name has been indicated below. If shares are to be issued in the
name of a person other than the undersigned, the undersigned will pay transfer
taxes payable with respect thereto. If this conversion involves fractional
shares, please issue the related check to the same person entitled to receive
the shares.

Dated: ____________________   Principal Amount to be converted (if less
                              than all):

                                       $
                                         --------------------------

                              Accrued Interest on Principal Amount to be
                              converted:

If shares are to be issued
otherwise than to owner:

Tax Identification
Number of Transferee_______         --------------------------------------
                                              Signature of Owner

---------------------------

---------------------------

---------------------------Please print name and address of Transferee
                           (including zip code)

<PAGE>

                                   Exhibit E

     This Note has been acquired for investment and has not been registered
under the Securities Act of 1933, as amended, or the securities laws of any
other jurisdiction. This Note is subject to the terms of a Securities Purchase
Agreement, dated as of June 5, 2003, among the issuer, TECORE, Inc, and SCP
Private Equity Partners II, L.P. (the "Purchase Agreement"), a copy of which may
be obtained by the registered holder hereof from the Secretary of the issuer.
The sale and transfer of this Note is restricted under the terms of the Tag
Along Allocation Agreement, dated as of the date of this Note between the
issuer, TECORE, Inc, and SCP Private Equity Partners II, L.P.(the "Tag Along
Agreement"). No transfer of any interest in this Note shall be effective unless
permitted by and made in accordance with the Purchase Agreement and the Tag
Along Agreement, and by accepting this Note the holder of this Note agrees to be
bound by the Purchase Agreement and the Tag Along Agreement.

                                   $4,000,000

                        AIRNET COMMUNICATIONS CORPORATION

                         Senior Secured Convertible Note

                                _______ __, 2003

     1.  General. AIRNET COMMUNICATIONS CORPORATION, a Delaware corporation
(hereinafter called the "Company"), for value received, hereby promises to pay
to SCP PRIVATE EQUITY PARTNERS II, L.P. ("SCP"), or registered assigns, the
principal amount of FOUR MILLION DOLLARS ($4,000,000.00) on _________ __, 2007
(the "Maturity Date"), and to pay interest on the unpaid balance of the
principal hereof from the date hereof at the rate of twelve percent (12%) per
annum (which shall accrue on a daily basis), payable at maturity, and to pay
interest at the rate of fifteen percent (15%) per annum on any overdue
principal, from the due date thereof until the obligation of the Company with
respect to the payment thereof shall be discharged. All payments of principal
and interest on this Note shall be paid by Company check or official bank check
sent first class mail, postage prepaid, to such address as the holder hereof
shall notify the Company of in writing, or, absent such notice, to the last
address of such holder as recorded in the Company' s books (in which case the
Company may rely on such address and shall be deemed to have discharged its
obligations hereunder as to any payments made to that address). At the option of
the holder, the Company shall pay principal and interest on this Note by wire
transfer in accordance with wire transfer instructions provided by the holder to
the Company at least ten (10) days prior to the date on which the principal and
interest is payable hereunder. The Company shall have no right to prepay any
principal or interest due under this Note.

     2.  The Notes. As used herein, the term "Note" or "Notes" refer to the
Senior Secured Convertible Notes in the aggregate principal amount of
$16,000,000 issued pursuant to the terms of the Securities Purchase Agreement,
dated as of June 5, 2003, among the Company, TECORE, Inc, and SCP Private Equity
Partners II, L.P. (the "Purchase Agreement"), and to any Note or Notes executed
and delivered by the Company in exchange or replacement hereof pursuant to
Section 9 hereof or pursuant to any transfer of a Note. Unless the context
otherwise re-

<PAGE>

quires, the term "holder" is used herein to mean the person named as payee in
Section 1 hereof or any other person who shall at the time be the holder or
assignee of this Note. This Note is referred to in the Purchase Agreement and is
entitled to the benefits of the terms and provisions of the Purchase Agreement.
No reference herein to the Purchase Agreement and no provision of this Note or
the Purchase Agreement shall alter the obligation of the Company, which is
absolute and unconditional, to pay the principal and interest on the Note at the
time and in the manner prescribed herein.

     3.  Security Interest. This Note is secured by and is entitled to the
benefits of (i) the Security Agreement, dated as of January 24, 2003, by and
among the Company and the purchasers of the Notes (the "Original Security
Agreement"), as amended by the First Amendment to Security Agreement, dated as
of ________ __, 2003, by and among the Company and the purchasers of the Notes
(the "Amendment to Security Agreement") (the Original Security Agreement, as so
amended by the Amendment to Security Agreement is referred to as the "Amended
Security Agreement"), (ii) the "Amended and Restated Technology Collateral
Escrow Agreement, dated as of ________ __, 2003, by and among the Company and
the purchasers of the Notes (the "Escrow Agreement"), and (iii) the Amended and
Restated Collateral Assignment of Patents, Trademarks & Copyrights, dated as of
____________ __, 2003, by and among the Company and the purchaser of the Notes
(the "Collateral Assignment"). (The Amended Security Agreement, the Escrow
Agreement, and the Collateral Assignment are sometimes referred to herein as the
"Collateral Agreements.") In addition to the rights and remedies given it by
this Note, the Collateral Agreements, and the Purchase Agreement, the holder
shall have all those rights and remedies allowed by applicable laws, including
without limitation, the Uniform Commercial Code. The rights and remedies of the
holder are cumulative, and recourse to one or more right or remedy shall not
constitute a waiver of the others. The Company shall be liable for all
commercially reasonable costs, expenses and attorneys' fees incurred by the
holder in connection with the collection of the indebtedness evidenced by the
Note.

     4.  Voting Rights.

         4.1.   General Rights. Except as otherwise provided herein or as
required by law, the holders of the Notes:

                4.1.1.  shall be entitled to vote in respect to the corporate
         affairs and management of the Company to the extent hereinafter
         provided;

                4.1.2.  shall have the same right of inspection of the books,
         accounts and other records of the Company which the holders of Common
         Stock have or may have under the Delaware General Corporation Law (the
         "GCL") or the Company's certificate of incorporation; and

                4.1.3.  shall be deemed to be stockholders of the Company, and
         the Notes shall be deemed to be stock, for the purpose of any provision
         of the GCL which requires the vote of stockholders as a prerequisite to
         any corporate action.

                                       2

<PAGE>

         4.2.   Number of Votes. The Notes shall be voted equally with the
shares of the Common Stock of the Company, and not as a separate class, at any
annual or special meeting of stockholders of the Company or in connection with
any solicitation of written consents in lieu of a meeting, upon the following
basis: the holder of this Note shall be entitled to such number of votes as
shall be equal to the whole number of shares of Common Stock into which this
Note is convertible pursuant to Section 5 hereof immediately after the close of
business on the record date fixed for such meeting or the effective date of such
written consent; provided, however, that in calculating the number of shares
into which this Note is then convertible for purposes of calculating such number
of votes, the initial Conversion Price, as hereinafter defined, shall be deemed
to be $.57 representing the average closing price of the Common Stock on the
date of execution of the Purchase Agreement and the four business days prior to
such execution (the "Deemed Conversion Price") (which Deemed Conversion Price is
subject to adjustment in the same manner that the Conversion Price is subject to
adjustment as provided in Sections 5.5 and 5.6).

     5.  Conversion of Note.

         5.1.   Right to Convert. Subject to and upon compliance with the
provisions hereof, the holder of this Note shall have the right, at such
holder's option, at any time, to convert all or any portion of the unpaid
principal amount hereof and all or any portion of accrued but unpaid interest
into shares of Common Stock, $.001 par value, of the Company ("Common Stock") at
the price of $0.10810 per share (the "Original Conversion Price"), or, in case
an adjustment of such price has taken place pursuant to the further provisions
of this Section 5, then at the price as last adjusted and in effect on the date
this Note or portion hereof is presented for conversion (the Original Conversion
Price or the Original Conversion Price as last adjusted, as the case may be,
being referred to herein as the "Conversion Price"). The minimum principal
amount of this Note which may be converted at any time shall be the lesser of
(a) $100,000 or (b) the outstanding principal balance of this Note.

         5.2.   Exercise of Conversion Privilege. In order to exercise the
conversion privilege, the holder of this Note shall present it to the Company at
the office of the Company, accompanied by written notice to the Company (with
copies to the holders of any other Notes) that the holder elects to convert this
Note, or, if less than the entire unpaid principal amount hereof and interest
thereon is to be converted, the portion hereof to be converted. Such notice
shall also state the name or names (with address) in which the certificate or
certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued. As soon as practicable after the receipt of such
notice and the presentation of this Note, the Company shall issue and shall
deliver to the holder of this Note a certificate or certificates for the number
of full shares of Common Stock issuable upon the conversion of this Note (or
portion hereof), and provision shall be made for any fraction of a share as
provided in Section 5.3 hereof. Such conversion shall be deemed to have been
effected immediately prior to the close of business on the date on which such
notice shall have been received by the Company and this Note shall have been
presented as aforesaid, and conversion shall be at the Conversion Price in
effect at such time, and at such time the rights of the holder of this Note as
such holder shall cease (to the extent this Note is so converted) and the person
or persons in whose name or names any certificate or certificates for shares
shall be issuable upon such conversion shall be deemed to have become the

                                       3

<PAGE>

holder or holders of record of the shares represented thereby. Upon conversion
of less than all of the unpaid principal amount and interest of this Note,
appropriate notation shall be made on this Note of the principal amount and/or
interest so converted, and this Note shall be retained by the holder following
such notation. Upon conversion of the balance of the principal amount and
interest of this Note, this Note shall be deemed cancelled and the holder shall
surrender this Note to the Company.

         5.3.   Adjustment for Fractional Shares. No fractional shares or scrip
shall be issued upon conversions of the Note. Any remaining principal amount
shall be paid in cash.

         5.4.   Adjustment of Conversion Price.

                5.4.1.  Upon Dilutive Issuances. If the Company shall issue or
         sell shares of its Common Stock or "Common Stock Equivalents" (as
         defined in Section 5.4.2 below) without consideration or at a price per
         share or "Net Consideration Per Share" (as defined in Section 5.4.3
         below) less than the Conversion Price in effect immediately prior to
         such issuance or sale, then in each such case the Conversion Price,
         except as hereinafter provided, shall be lowered so as to be equal to
         the greater of (1) the net aggregate consideration, if any, received or
         receivable by the Company for the total number of such additional
         shares of Common Stock so issued or deemed to be issued divided by the
         number of shares of Common Stock so issued or deemed to be issued, or
         (2) $0.001.

                5.4.2.  Common Stock Equivalents.

                (a)     General. For the purposes of this Section 5.4, the
                        issuance of any warrants, options, subscription or
                        purchase rights with respect to shares of Common Stock
                        and the issuance of any securities convertible into or
                        exchangeable for shares of Common Stock and the issuance
                        of any warrants, options, subscription or purchase
                        rights with respect to such convertible or exchangeable
                        securities (collectively, "Common Stock Equivalents"),
                        shall be deemed an issuance of Common Stock. Any
                        obligation, agreement or undertaking to issue Common
                        Stock Equivalents at any time in the future shall be
                        deemed to be an issuance at the time such obligation,
                        agreement or undertaking is made or arises. No
                        adjustment of the Conversion Price shall be made under
                        this Section 5.4 upon the issuance of any shares of
                        Common Stock which are issued pursuant to the exercise,
                        conversion or exchange of any Common Stock Equivalents
                        if any adjustment shall previously have been made upon
                        the issuance of any such Common Stock Equivalents as
                        above provided.

                (b)     Adjustments for Adjustment, Cancellation or
                        Expiration of Common Stock Equivalents. Should the Net
                        Consideration Per Share of any such Common Stock
                        Equivalents be decreased or increased

                                       4

<PAGE>

                        from time to time, then, upon the effectiveness of each
                        such change, the Conversion Price will be that which
                        would have been obtained (1) had the adjustments made
                        pursuant to Section 5.4.1 upon the issuance of such
                        Common Stock Equivalents been made upon the basis of the
                        new Net Consideration Per Share of such securities, and
                        (2) had the adjustments made to the Conversion Price
                        since the date of issuance of such Common Stock
                        Equivalents been made to such Conversion Price as
                        adjusted pursuant to clause (1) above. Any adjustment of
                        the Conversion Price with respect to this Section which
                        relates to any Common Stock Equivalent shall be
                        disregarded if, as, and when such Common Stock
                        Equivalent expires or is canceled without being
                        exercised, or is repurchased by the Company at a price
                        per share at or less than the original purchase price,
                        so that the Conversion Price effective immediately upon
                        such cancellation or expiration shall be equal to the
                        Conversion Price that would have been in effect had the
                        expired or canceled Common Stock Equivalent not been
                        issued.

                5.4.3.  Net Consideration Per Share. For purposes of this
         Section 5.4, the "Net Consideration Per Share" which shall be
         receivable by the Company for any Common Stock Equivalents shall be
         determined as follows:

                (a)     The "Net Consideration Per Share" shall mean the
                        amount equal to the total amount of consideration, if
                        any, received by the Company for the issuance of such
                        Common Stock Equivalents, plus the minimum amount of
                        consideration, if any, payable to the Company upon
                        exercise, conversion or exchange thereof, divided by the
                        aggregate number of shares of Common Stock that would be
                        issued if all such Common Stock Equivalents were
                        exercised, exchanged or converted.

                (b)     The "Net Consideration Per Share" which shall be
                        receivable by the Company shall be determined in each
                        instance as of the date of issuance of Common Stock
                        Equivalents without giving effect to any possible future
                        upward price adjustments or rate adjustments which may
                        be applicable with respect to such Common Stock
                        Equivalents.

                5.4.4.  Stock Dividends for Holders of Capital Stock Other Than
         Common Stock. In the event that the Company shall make or issue, or
         shall fix a record date for the determination of holders of any capital
         stock of the Company, other than holders of Common Stock, entitled to
         receive a dividend or other distribution payable in Common Stock or
         securities of the Company convertible into or otherwise exchangeable
         for shares of Common Stock of the Company, then

                                       5

<PAGE>

         such Common Stock or other securities issued in payment of such
         dividend shall be deemed to have been issued for a consideration of
         $0.001.

                5.4.5.  Consideration Other than Cash. For purposes of this
         Section 5.4, if a part or all of the consideration received by the
         Company in connection with the issuance of shares of the Common Stock
         or the issuance of any of the securities described in this Section 5.4
         consists of property other than cash, such consideration shall be
         deemed to have a fair market value as is reasonably determined in good
         faith by the Board of Directors of the Company. In the event of any
         dispute between the holders of the Note and the Company regarding the
         determination of fair market value, at the option of the holder of the
         Note, the Company shall engage a consulting firm or investment banking
         firm, reasonably acceptable to the holder of the Note, to prepare an
         independent appraisal of the fair market value of such property to be
         distributed. The expenses of any appraisal by such consulting or
         investment banking firm shall be borne by the Company only if the fair
         market value of such property to be distributed, as determined in the
         independent appraisal, differs from the amount determined by the Board
         of Directors by at least ten percent (10%), and otherwise the expenses
         of any such appraisal shall be paid by the holders of the Notes.

                5.4.6.  Exercise of Outstanding Warrants or Options.

                (a)     In the event that the holder of a warrant to
                        purchase Common Stock which is outstanding on the date
                        of original issuance of this Note (an "Outstanding
                        Warrant") (such date referred to as the "Original
                        Issuance Date") shall exercise such Outstanding Warrant
                        on a date subsequent to the Original Issuance Date,
                        then, in each such case, the Conversion Price of this
                        Note then in effect shall be automatically adjusted
                        downward so that the number of shares of Common Stock
                        into which this Note is convertible (at such adjusted
                        Conversion Price) shall represent the same Percentage
                        Ownership (as hereinafter defined) as the Percentage
                        Ownership which the shares into which this Note was
                        convertible at the unadjusted Conversion Price
                        represented immediately prior to the exercise of such
                        Outstanding Warrant.

                (b)     In the event that the holder of an option to
                        purchase Common Stock which is outstanding on the
                        Original Issuance Date (an "Outstanding Option") shall
                        exercise such option on a date subsequent to the
                        Original Issuance Date, then, in each such case, the
                        Conversion Price of this Note then in effect shall be
                        automatically adjusted downward so that the number of
                        shares of Common Stock into which this Note is
                        convertible (at such adjusted Conversion Price) shall
                        represent the same Percentage Ownership (as hereinafter
                        defined) as the Percentage Ownership which the shares
                        into

                                       6

<PAGE>

                        which this Note was convertible at the unadjusted
                        Conversion Price represented immediately prior to the
                        exercise of such Outstanding Option; provided that the
                        adjustment to the Conversion Price required by this
                        subparagraph (b) shall not apply with respect to the
                        exercise of Outstanding Options to purchase up to
                        300,000 shares of Common Stock (with appropriate
                        adjustments to such number of shares to reflect
                        adjustments to the number of shares of Common Stock
                        issuable under outstanding options in accordance with
                        the anti-dilution terms of such options).

                (c)     In the event that the holder of preferred stock,
                        convertible into Common Stock, which is outstanding on
                        the Original Issuance Date ("Outstanding Preferred")
                        shall convert such Outstanding Preferred on a date
                        subsequent to the Original Issuance Date, then, in each
                        such case, the Conversion Price of this Note then in
                        effect shall be automatically adjusted downward so that
                        the number of shares of Common Stock into which this
                        Note is convertible (at such adjusted Conversion Price)
                        shall represent the same Percentage Ownership (as
                        hereinafter defined) as the Percentage Ownership which
                        the shares into which this Note was convertible at the
                        unadjusted Conversion Price represented immediately
                        prior to the conversion of such Outstanding Preferred.
                        Notwithstanding the foregoing, no adjustment to the
                        Conversion Price shall be made as a result of the
                        conversion of any shares of Series B Convertible Stock
                        on the Original Issuance Date.

                (d)     For purposes of this Section 5.4.6, the term
                        "Percentage Ownership" of particular shares shall mean
                        the number of votes such shares possess with respect to
                        the election generally of directors, divided by the
                        number of votes possessed by all Voting Securities at
                        such time with respect to the election generally of
                        directors. For this purpose, the term "Voting
                        Securities" shall mean all outstanding securities (debt
                        or equity) of the Company entitled to vote generally in
                        the election of directors (excluding the Notes) plus the
                        shares into which the Notes are then convertible plus
                        the shares into which all other outstanding convertible
                        securities (which term expressly excludes any
                        Outstanding Options, Outstanding Warrants, or
                        Outstanding Preferred) are then convertible plus the
                        shares which are then issuable upon the exercise of
                        options granted after the Original Issuance Date which
                        remain unexercised on the date of determination plus the
                        shares which are then issuable upon the exercise of up
                        to 300,000 Outstanding Options which remain outstanding
                        on the date of determination).

                                       7

<PAGE>

                5.4.7.  Exceptions to Anti-dilution Adjustments. This Section
         5.4 shall not apply under any of the following circumstances:

                (a)     upon the occurrence of any event which would
                        constitute an Extraordinary Common Stock Event (as
                        described below);

                (b)     except as provided in Section 5.4.6, upon the
                        exercise or conversion of any warrants, options, or
                        convertible securities issued and outstanding on the
                        date of original issuance of this Note;

                (c)     upon the grant of any options to purchase Common
                        Stock under any employee benefit plan now existing or
                        implemented in the future, provided the grant of such
                        options is approved by the Board of Directors of the
                        Company, and further provided the total number of shares
                        of Common Stock subject to options granted on or after
                        the date of original issuance of this Note is no greater
                        than 21,766,212 plus amounts permitted pursuant to
                        Section 9.11 of the Purchase Agreement; or

                (d)     upon the exercise of any options referenced in
                        Section 5.4.7(c).

         5.5.   Adjustment Upon Extraordinary Common Stock Event. Upon the
happening of an Extraordinary Common Stock Event (as hereinafter defined), the
Conversion Price shall, simultaneously with the happening of such Extraordinary
Common Stock Event, be adjusted by multiplying the Conversion Price by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such Extraordinary Common Stock Event and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately after such Extraordinary Common Stock Event, and the product so
obtained shall thereafter be the Conversion Price, which, as so adjusted, shall
be readjusted in the same manner upon happening of any successive Extraordinary
Common Stock Event Events.

         An "Extraordinary Common Stock Event" shall mean (i) the issue of
additional shares of Common Stock as a dividend or other distribution on
outstanding shares of Common Stock, (ii) subdivision of outstanding shares of
Common Stock into a greater number of shares of Common Stock, or (iii) a
combination or reverse stock split of outstanding shares of Common Stock into a
smaller number of shares of the Common Stock.

         5.6.   Adjustment Upon Capital Reorganization or Reclassification. If
the Common Stock shall be changed into the same or different number of shares of
any other class or classes of capital stock, whether by capital reorganization,
recapitalization, reclassification or otherwise (other than an Extraordinary
Common Stock Event), then and in each such event the holder of each Note shall
have the right thereafter to convert such Note into, in lieu of the number of
shares of Common Stock which the holder would otherwise have been entitled to
receive, the kind and amount of shares of capital stock and other securities and
property receivable upon such reorganization, recapitalization, reclassification
or other change by the holders of the num-

                                       8

<PAGE>

ber of shares of Common Stock into which such Note could have been converted
immediately prior to such reorganization, recapitalization, reclassification or
change, all subject to further adjustment as provided herein. The provision for
such conversion right shall be a condition precedent to the consummation by the
Company of any such transaction.

         5.7.   Certificate as to Adjustments; Notice by Company. In each case
of an adjustment or readjustment of the Conversion Price, the Company at its
expense will furnish each holder of the Note with a certificate prepared by the
Treasurer or Chief Financial Officer of the Company, showing such adjustment or
readjustment, and stating in detail the facts upon which such adjustment or
readjustment is based.

         5.8.   Consolidation or Merger. If any consolidation or merger of the
Company with another corporation shall be effected, then, as a condition of such
consolidation or merger, lawful and adequate provision shall be made whereby the
holder of the Note shall thereafter have the right to receive upon the basis and
upon the terms and conditions specified herein and in lieu of the shares of
Common Stock of the Company immediately theretofore receivable upon the
conversion of the Note, such shares of stock, securities or assets as may be
issued or payable with respect to or in exchange for a number of outstanding
shares equal to the number of shares of Common Stock immediately theretofore so
receivable by such holder had such consolidation or merger not taken place, and
in any such case appropriate provision shall be made with respect to the rights
and interests of such holder to the end that the provisions hereof (including
without limitation provisions for adjustment of the Conversion Price) shall
thereafter be applicable, as nearly as may be, in relation to any shares of
stock, securities or assets thereafter deliverable upon the exercise of such
conversion rights. The Company shall not effect any such consolidation or
merger, unless prior to or simultaneously with the consummation thereof the
successor corporation (if other than the Company) resulting from such
consolidation or merger shall assume by written instrument executed and mailed
or delivered to the holder hereof, the obligation to deliver to such holder such
shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holder may be entitled to receive. Except as expressly set
forth in this Section 5.8, however, nothing contained in this Section 5.8 will
be deemed to restrict the Company from entering into a consolidation or merger;
provided, however, that the restrictions of the Purchase Agreement shall remain
applicable.

         5.9.   Notice of Certain Actions. In case at any time:

                5.9.1.  the Company shall declare any dividend upon shares of
         its capital stock payable in securities or make any special dividend or
         other distribution;

                5.9.2.  the Company shall offer for subscription pro rata to the
         holders of any class of its capital stock any additional securities of
         any class or other rights;

                5.9.3.  there shall be any capital reorganization, or
         reclassification of the capital stock of the Company, or consolidation
         or merger of the Company with, or sale of all or substantially all its
         assets to, another corporation;

                                       9

<PAGE>

                5.9.4.  there shall be a voluntary or involuntary dissolution,
         liquidation or winding-up of the Company; or

                5.9.5.  the Company shall enter into an agreement or adopt a
         plan for the purpose of effecting a consolidation, merger, or sale of
         all or substantially all of its assets;

then, in any one or more of said cases, the Company shall give written notice,
by first class mail, postage prepaid, to the registered holder hereof, of the
date on which (a) the books of the Company shall close or a record shall be
taken for such dividend, distribution or subscription rights, or (b) such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up shall take place, as the case may be. Such notice
shall also specify the date as of which the holders of shares of record shall
participate in such dividend, distribution or subscription rights, or shall be
entitled to exchange their shares for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation, or winding-up, as the case may be. Such written notice
shall be given at least 30 days prior to the action in question and not less
than 30 days prior to the record date or the date on which the Company's
transfer books are closed in respect thereto.

         5.10.  Registration and Listing. If any shares required to be reserved
for purposes of conversions of the Note hereunder require registration with or
approval of any governmental authority under any federal (other than the
Securities Act of 1933 or similar federal statute then in force) or state law,
or listing on any national securities exchange, before such shares may be issued
upon conversion, the Company will, at its expense, as expeditiously as possible
cause such shares to be duly registered or approved, or listed on the relevant
national securities exchange, as the case may be.

         5.11.  Automatic Conversion.

                5.11.1. Events Causing Conversion. Immediately (A) upon the
         closing of a Qualified Public Offering, as hereinafter defined, but
         subject to such closing, or (B) upon the closing of a Qualified Sale of
         the Company, but subject to such closing, this Note shall be converted
         automatically into the number of shares of Common Stock into which the
         Note is then convertible pursuant to Section 5.1 as of the closing and
         consummation of such Qualified Public Offering or the date of the event
         constituting the Qualified Sale of the Company, without any further
         action by the holder of the Note and whether or not the Note is
         surrendered to the Company or its transfer agent.

                5.11.2. Definitions.

                (a)     A "Qualified Public Offering" shall mean an
                        underwritten public offering on a firm commitment basis
                        pursuant to an effective registration statement filed
                        pursuant to the Securities Act of 1933, as amended
                        (other than on Form S-4 or S-8 or any successor forms

                                       10

<PAGE>

                        thereto), covering the offer and sale of Common Stock
                        for the account of the Company in which the Company
                        actually receives gross proceeds equal to or greater
                        than $70,000,000 (calculated before deducting
                        underwriters discounts and commissions and before
                        calculation of expenses), and in which the price per
                        share of Common Stock equals or exceeds $0.3243 (such
                        price subject to adjustment in the same manner that the
                        Conversion Price is subject to adjustment under this
                        Section 5).

                (b)     A "Qualified Sale of the Company" shall mean a Sale
                        of the Company which provides for minimum consideration
                        payable with respect to each share of Common Stock (on a
                        fully diluted basis) of at least $0.3243 in cash or in
                        market value of "Liquid Stock" (such price subject to
                        adjustment in the same manner that the Conversion Price
                        is subject to adjustment under this Section 5).

                (c)     The term "Sale of the Company" shall mean a merger
                        or consolidation of the Company with another company
                        which is not an Affiliate of the Company, the sale of
                        all or substantially all of the assets of the Company to
                        a company which is not an Affiliate of the Company, or
                        the sale of all or substantially all of the outstanding
                        Common Stock of the Company to a person or persons who
                        are not then stockholders of the Company or an Affiliate
                        of the Company.

                (d)     "Liquid Stock" shall mean capital stock which is
                        registered under Section 12(b) or Section 12(g) of the
                        Securities Exchange Act of 1934, as amended, the
                        disposition of which would not be significantly
                        restricted by low trading volume; provided, that capital
                        stock which is either (i) listed for trading on the
                        NASDAQ National Market System with average daily trading
                        volume over the past six months of at least 75,000
                        shares, or (ii) listed for trading on the New York Stock
                        Exchange, Inc. shall be deemed to be Liquid Stock.

                (e)     The term "Affiliate" shall mean a person who
                        controls, is controlled by, or is under common control
                        with, the Company.

                5.11.3. [Omitted].

                5.11.4. Surrender of Certificates Upon Automatic Conversion.
         Upon the occurrence of the conversion event specified in either Section
         5.11.1 or 5.11.3, the holder of the Note shall, upon notice from the
         Company, surrender the Note at the office of the Corporation or its
         transfer agent for the Common Stock. Thereupon, there shall be issued
         and delivered to such holder a certificate or certificates for the
         number of shares of Common Stock into which the Note so surrendered was

                                       11

<PAGE>

         convertible on the date on which the conversion occurred. The Company
         shall not be obligated to issue such certificates unless the Note is
         either delivered to the Company or any such transfer agent or the
         holder notifies the Company that the Note has been lost, stolen or
         destroyed and executes an agreement satisfactory to the Company to
         indemnify the Company from any loss incurred by it in connection
         therewith.

     6.  Event of Default. In case an Event of Default, as defined in the
Purchase Agreement, shall have occurred and be continuing, the unpaid principal
of the Note and any accrued and unpaid interest thereon may be declared, and
upon such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Purchase Agreement and the
Collateral Agreements.

     7.  Covenants. The Company covenants and agrees with the registered holder
of this Note to do (or refrain from doing) all those things required of the
Company pursuant to the covenants set forth in the Purchase Agreement and the
Collateral Agreements.

     8.  Exchange or Replacement of Note.

         8.1.   The holder of the Note, at its option, may in person or by duly
authorized attorney surrender the Note for exchange at the office of the
Company, and at the expense of the Company receive in exchange therefor a new
Note in the same aggregate principal amount as the aggregate unpaid principal
amount of the Note so surrendered and bearing interest at the same annual rate
as the Note so surrendered, each such new Note to be dated as of the date to
which interest has been paid on the Note so surrendered and to be in such
principal amount and, subject to the restrictions on transfer contained in the
Purchase Agreement, payable to such person or persons, or order, as such holder
may designate in writing; provided, however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any new Note in a name other than that of the
holder of the Note surrendered in exchange therefor. Five days prior written
notice of the holder's intention to make such exchange shall be given to the
Company.

         8.2.   Upon receipt by the Company of evidence satisfactory to it of
the loss, theft, destruction or mutilation of this Note and (in case of loss,
theft or destruction) of indemnity satisfactory to it, and upon reimbursement to
the Company of all reasonable expenses incidental thereto, and upon surrender
and cancellation of this Note, if mutilated, the Company will make and deliver a
new Note of like tenor in lieu of this Note. Any Note made and delivered in
accordance with the provisions of this paragraph (b) shall be dated as of the
date to which interest has been paid on this Note.

     9.  Amendments and Waivers. The holders of more than 80% in aggregate
principal amount of the Notes at the time outstanding and the Company may from
time to time enter into agreements for the purpose of amending or waiving any
covenant, agreement or condition of the Notes or changing in any manner the
rights of the holder of the Notes or the Company; and action of the holders of
more than 80% in aggregate principal amount of the Notes at the time out-

                                       12

<PAGE>

standing shall bind all holders of the Notes, each future-holder of the Notes
and upon the Company, whether or not such Notes shall have been marked to
indicate such amendment or waiver, but any substitute Note issued thereafter
shall bear a notation referring to any such amendment or continuing waiver.

     10. Communications. All communications provided for hereunder shall be made
in accordance with the requirements of Section 14.7 of the Purchase Agreement.

     11. Severability. Should any part but not the whole of this Note for any
reason be declared invalid, such decision shall not affect the validity of any
remaining portion, which remaining portion shall remain in force and effect as
if this Note had been executed with the invalid portion thereof eliminated, and
it is hereby declared the intention of the parties hereto that they would have
executed the remaining portion of this Note without including therein any such
part which may, for any reason, be hereafter declared invalid.

     12. Captions. The descriptive headings of the various Sections or parts of
this Note are for convenience only and shall not affect the meaning or
construction of any of the provisions hereof.

     13. Successors and Assigns. This Note shall be binding upon the parties and
their respective successors and assigns.

     14. Governing Law. This Note shall be governed by the laws of the State of
Delaware.

                                            AIRNET COMMUNICATIONS CORPORATION

                                            By:
                                               ---------------------------------

                                       13

<PAGE>

                                   SCHEDULE A

         This schedule sets forth the principal amount and/or interest converted
into Common Stock.

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Date           Principal Amount Converted          Interest Amount Converted
--------------------------------------------------------------------------------

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<PAGE>

                        AIRNET COMMUNICATIONS CORPORATION

                         SENIOR SECURED CONVERTIBLE NOTE

                                CONVERSION NOTICE

AirNet Communications Corporation:

     The undersigned holder of this Note hereby irrevocably exercises the option
to convert this Note, or such portion hereof as is specified below, into shares
of Common Stock of AirNet Communications Corporation in accordance with the
terms of this Note, and directs that the shares issuable and deliverable upon
the conversion be issued in the name of and delivered to the undersigned unless
a different name has been indicated below. If shares are to be issued in the
name of a person other than the undersigned, the undersigned will pay transfer
taxes payable with respect thereto. If this conversion involves fractional
shares, please issue the related check to the same person entitled to receive
the shares.

Dated: ____________________   Principal Amount to be converted (if less
                              than all):

                                       $
                                         --------------------------

                              Accrued Interest on Principal Amount to be
                              converted:

If shares are to be issued
otherwise than to owner:

Tax Identification
Number of Transferee_______             ---------------------------------------
                                                 Signature of Owner

---------------------------

---------------------------

---------------------------Please print name and address of Transferee
                           (including zip code)

<PAGE>

                                   Exhibit F

                    INTERCREDITOR AND SUBORDINATION AGREEMENT
                    -----------------------------------------

     THIS AGREEMENT is dated as of the ____ day of ________________, 2003, by
and among: AIRNET COMMUNICATIONS CORPORATION, a Delaware corporation (the
"Borrower"), FORCE COMMUNICATIONS CORPORATION, a Delaware corporation ("Force"),
SANMINA CORPORATION, a Delaware corporation ("Sanmina"), and BROOKTROUT, INC.,
Massachusetts corporation ("Brooktrout" and together with Force and Sanmina,
collectively and individually, the "Subordinated Lender"); and SCP PRIVATE
EQUITY PARTNERS II, LP, a Delaware limited partnership ("SCP II") and TECORE,
INC., a Texas corporation ("Tecore" and together with SCP II, collectively and
individually, the "Lenders").

                          W I T N E S S E T H  T H A T:
                          -----------------------------

     In order to induce the Lenders to make financial accommodations to the
Borrower, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Borrower and the Subordinated
Lender hereby agree with the Lenders that, so long as any Senior Indebtedness
(as hereinafter defined) is outstanding or committed to be advanced, each such
party will comply with such of the following provisions as are applicable to it:

     1.  Certain Definitions.

         1.1  Senior Indebtedness.  The term "Senior Indebtedness" shall mean:

         (a)  any and all loans, advances, extensions of credit to, and all
     other indebtedness, obligations and liabilities, whether now existing or
     hereafter arising, direct or contingent, of the Borrower now or hereafter
     owing to the Lenders outstanding from time to time, whether pursuant to:

              (i)     that certain Securities Purchase Agreement dated as of
     April ____, 2003, by and between the Borrower and the Lenders, as the same
     may be amended, restated, supplemented, renewed, replaced or extended from
     time to time (the "Purchase Agreement");

              (ii)    those certain Convertible Promissory Notes dated April
     ___, 2003, as the same may be amended, restated, supplemented, renewed,
     replaced or extended from time to time (the "Notes"), issued by the
     Borrower to the Lenders from time to time in the original aggregate
     principal amount of up to $16,000,000.00, or

              (iii)   otherwise, including, without limitation, any and all
     indebtedness to the Lenders in respect of any and all future loans or
     advances or extensions of credit made to the Borrower by the Lenders, or
     any of them, prior to,

<PAGE>

     during or following any proceeding in respect of any Reorganization
     (as defined in Section 3.2 hereof); and

         (b)  all interest thereon and all fees, expenses and other amounts
     (including costs of collection and reasonable attorneys' fees) at any time
     owing to the Lenders, whether arising in connection with the Purchase
     Agreement, the Notes or such other indebtedness (regardless of the extent
     to which the Purchase Agreement, the Notes or such other indebtedness is
     enforceable against the Borrower and regardless of the extent to which such
     amounts are allowed as claims against the Borrower in any Reorganization,
     and including any interest thereon accruing after the commencement of any
     Reorganization and any other interest that would have accrued thereon but
     for the commencement of such Reorganization).

 All Senior Indebtedness shall be entitled to the benefits of this Agreement
without notice thereof being given to the Subordinated Lender.

     1.2  Subordinated Indebtedness. The term "Subordinated Indebtedness" shall
mean all existing and hereafter arising indebtedness, obligations and
liabilities of the Borrower, to the Subordinated Lender, whether direct or
contingent, and all claims, rights, causes of action, judgments and decrees in
respect of the foregoing, including, without limitation:

          (i)  all indebtedness and obligations under that certain (a)
     Settlement Agreement dated October 29, 2001 between Borrower, as debtor,
     and Force, as creditor (the "Force Settlement Agreement"); (b) Settlement
     Agreement dated November 7, 2001 between Borrower, as debtor, and Sanmina,
     as creditor (the "Sanmina Settlement Agreement"), (c) Settlement Agreement
     dated November 14, 2001 between Borrower, as debtor, and Brooktrout, as
     creditor (the "Brooktrout Settlement Agreement") and together with the
     Force Settlement Agreement and the Sanmina Settlement Agreement, the
     "Settlement Agreements"), which Settlement Agreements evidence obligations
     of Borrower to Subordinated Lender in an amount not to exceed in the
     aggregate the sum of $4,500,000 (the "Subordinated Settlement Agreements");
     and

          (ii) the obligations of each party (other than the Subordinated
     Lender) to, under or in respect of any agreement or instrument securing any
     of the Borrower's obligations to the Subordinated Lender under the
     Subordinated Settlement Agreements (the "Subordinated Security Documents")
     (the Subordinated Settlement Agreement and the Subordinated Security
     Documents and any other agreement evidencing or relating to Subordinated
     Indebtedness being hereinafter collectively referred to as the
     "Subordinated Agreements").

     2.   Representations and Warranties. The Subordinated Lender and the
Borrower each hereby, severally and not jointly, represents and warrants to the
Lenders that: (a) At the date hereof, the total outstanding and unpaid
Subordinated Indebtedness owing by the Companies to the Subordinated Lender
pursuant to the Subordinated Agreements is $[1,179,000]; (b) There is no default
in respect of the Subordinated Indebtedness; (c) The Subordinated Lender is the
holder of the Subordinated Agreements free and clear of all liens, claims and
encumbrances, and

                                      -2-

<PAGE>

the Subordinated Lender is not subject to any contractual limitation or
restriction which would impair in any way its ability to execute or perform its
obligations under this Agreement; and (d) True, accurate and complete copies of
the Subordinated Agreements are attached hereto as Exhibit A.

     3.   Terms of Subordination.

     3.1  Permitted Payments of Subordinated Indebtedness. The Borrower may,
from time to time, pay or cause to be paid to the Subordinated Lender, and the
Subordinated Lender may accept and retain, regularly scheduled payments of
principal and interest as and at the times when due and payable under the
Subordinated Settlement Agreements, as originally executed and delivered.

     3.2  The Subordinated Lender's Junior Security. The Subordinated Lender
hereby confirms that, regardless of the relative times and method of attachment
or perfection thereof (or any failure to perfect) or the order of filing of
financing statements, mortgages or other security agreements or documents, or
anything in the Subordinated Agreements or this Agreement to the contrary, the
security interests and liens granted or to be granted from time to time to
secure the Senior Indebtedness, shall in all respects be first and senior
security interests and liens, superior to any security interests and liens
granted or to be granted to the Subordinated Lender in assets of, or ownership
interests in, the Borrower or any other person pursuant to the Subordinated
Agreements or otherwise, it being the express intention of the parties that,
notwithstanding anything in this Agreement to the contrary, all liens and
security interests granted to the Lenders from time to time shall be prior and
superior to any liens or security interests granted to the Subordinated Lender.

     4.   Limit on Right of Action. (a) The Subordinated Lender agrees for the
benefit of the Lenders and all future holders of the Senior Indebtedness that so
long as the Senior Indebtedness remains outstanding or committed to be advanced,
the Subordinated Lender will not, directly or indirectly, without the prior
written consent of the Lenders, take any action to exercise any of its remedies
in respect of the Subordinated Indebtedness or any guarantee of payment thereof,
to initiate any Reorganization of, or litigation against, the Borrower or any
guarantor of the Subordinated Indebtedness, or to foreclose or otherwise realize
on any security given by the Borrower or any other person to secure the
Subordinated Indebtedness.

     (b) The foregoing provisions of this Section 4 are solely for the purpose
of defining the relative rights of the Lenders, on the one hand, and the
Subordinated Lender, on the other, and shall not otherwise limit or affect any
rights which the Subordinated Lender may have against the Borrower under the
terms of the Subordinated Agreements.

     5.   Agreement to Hold in Trust. If the Subordinated Lender shall receive
any payment on account of the Subordinated Indebtedness in violation of this
Agreement, it shall hold such payment in trust for the benefit of the Lenders
and, promptly upon discovery or notice of such violation, pay it over to the
Lenders for application in payment of the Senior Indebtedness.

                                      -3-

<PAGE>

     6.   Further Assurances. The Borrower and the Subordinated Lender covenant
to execute and deliver to the Lenders such further instruments and documents and
take such further actions as the Lenders may from time to time reasonably
request, and the Borrower and the Lenders agree to execute and deliver to the
Subordinated Lender such further instruments and documents and take such further
actions as the Subordinated Lender may from time to time reasonably request, in
each case for the purpose of carrying out the provisions and intent of this
Agreement.

     7.   Successors: Continuing Effect; Etc. This Agreement is being entered
into for the benefit of the holders of the Senior Indebtedness and the
Subordinated Indebtedness, and their respective successors and assigns.

     8.   Entire Agreement; Amendment. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof, and no
modification or waiver of any provision of this Agreement shall in any event be
effective unless the same shall be in writing signed by the Lenders, and the
Subordinated Lender (unless such amendment or modification shall impose any
additional obligations upon the Borrower, in which case such amendment or
modification shall also require execution by the Borrower).

     9.   Counterparts. This Agreement may be executed by the parties hereto in
several counterparts hereof and by different parties hereto on separate
counterparts hereof, each of which shall be an original and all of which
counterparts shall together constitute one and the same agreement. Delivery of
an executed signature page of this Agreement by facsimile transmission shall be
effective as an in-hand delivery of an original executed counterpart thereof.

                          *Signatures on next page*

                                      -4-

<PAGE>

     IN WITNESS WHEREOF, each of the undersigned has executed this Intercreditor
and Subordination Agreement or caused this Agreement to be executed by its duly
authorized officer, partner or representative, as applicable, as of the day and
year first above written.

                                            SUBORDINATED LENDER:

    Force Computers, Inc.                   FORCE COMPUTERS, INC.
    4305 Cushing Parkway
    Fremont, California  94538              By:
    Attention:  General Counsel                    -----------------------------
    Telecopy No.:  510-25208450             Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

    Sanmina Corporation                     SANMINA CORPORATION
    2700 North First Street
    San Jose, California  95134             By:
    Attention:  V.P. & Corporate Counsel           -----------------------------
    Telecopy No.:  408-964-3636             Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

    Brooktrout, Inc.                        BROOKTROUT, INC.
    250 First Avenue, Suite 300
    Needham, MA  02494                      By:
    Attention:  Corporate Counsel                  -----------------------------
    Telecopy No.:  781-453-3537             Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

                                            BORROWER:
    AirNet Communications Corporation
    3950 Dow Road                           AIRNET COMMUNICATIONS CORPORATION
    Melbourne, Florida  32934
    Attention:  Glenn A. Ehley, President   By:
    and Chief Executive Officer                    -----------------------------
    Telecopy No.:                           Name:
                 -----------------------           -----------------------------
                                            Title:
                                                   -----------------------------

    SCP Private Equity Partners II, LP      LENDERS:
    300 Building
    435 Devon Park Drive                    SCP PRIVATE EQUITY PARTNERS II, LP
    Wayne, Pennsylvania  19087
    Attention:  James W. Brown              By:
    Telecopy No.                                   -----------------------------
                ------------------------    Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

    Tecore, Inc.                            TECORE, INC.
    7165 Columbia Gateway Drive
    Columbia, Maryland  21406               By:
    Attention:  Jay Salkini, President             -----------------------------
    Telecopy No.:                           Name:
                 -----------------------           -----------------------------
                                            Title:
                                                   -----------------------------

<PAGE>

                                    EXHIBIT A
                                    ---------

                        Copies of Subordinated Agreements
                        ---------------------------------

<PAGE>

                                   Exhibit G

                         TAG ALONG ALLOCATION AGREEMENT

     This Tag Along Allocation Agreement ("Agreement") dated _______ ___, 2003
is among AirNet Communications Corporation, a Delaware corporation (the
"Company"), and SCP Private Equity Partners II, LP ("SCP") and TECORE, Inc.
("Tecore") as holders (the "Note Holders") of the $16,000,000 Secured
Convertible Notes (the "Notes") issued by the Company to the Note Holders on the
date hereof.

     WHEREAS, the Board of Directors of the Company (the "Board") has approved
the Amended and Restated Bonus Program attached to this Agreement as Exhibit 1
(the "Plan") as in the best interests of the Company; and

     WHEREAS, under the terms of the Plan, the employees who participate in the
Plan (the "Plan Participants") will be entitled to receive a portion of the
proceeds otherwise payable to the Note Holders in connection with a sale of
either or both of the Notes by SCP or Tecore;

     NOW, THEREFORE, the parties agree as follows:

     1.   Implementation of the Plan is in the best interests of the Company
and as an inducement for the Company's issuance of the Notes to SCP and Tecore,
SCP and Tecore have agreed to allocate to Employees of the Company a portion of
proceeds they receive in a potential sale of their Notes.

     2.   In the event of a sale of all or a portion of the Notes by either or
both of SCP or Tecore, other than in connection with the Sale of the Company (as
defined in the Plan), each of SCP and Tecore severally agree that they will
allocate for distribution to Plan Participants ten and percent (10%) ("Sale of
Note Allocation Amount") of the aggregate sale proceeds in excess of the amount
of the then outstanding principal balance and related accrued unpaid interest
payable under the Notes sold or such portion of the Notes so sold, if only a
portion is sold ("Note Sale Proceeds") received by SCP or Tecore, respectively,
in connection with such sale of all or a portion of the Notes to any party.

     3.   In the event of a sale of all or a portion of the Notes by either of
both of SCP or Tecore in connection with the Sale of the Company, each of SCP
and Tecore severally agree that they will allocate for distribution to Plan
Participants ten percent (10%) ("Acquisition Allocation Amount") of the
aggregate sale proceeds in excess of the amount of the then outstanding
principal balance and related accrued unpaid interest payable under the Notes
sold or such portion of the Notes so sold ("Acquisition Note Sale Proceeds")
received by SCP or Tecore, respectively, in connection with such sale of all or
a portion of the Notes to any party in connection with the Sale of the Company;
provided that the Acquisition Allocation Amount shall be reduced to the extent
the amounts payable to Eligible Employees (as defined in the Plan) is reduced
due to such Employees' In-the-money Options (as defined in the Plan) as
described in the Plan. (Note Sale Proceeds and Acquisition Note Sale Proceeds
collectively defined as the "Sale of Note Proceeds". Sale of Note Allocation
Amount and Acquisition Allocation Amount collectively defined as the "Allocation
Amounts")

<PAGE>

     3.   SCP and Tecore agree to forward the Allocation Amounts to the Company
within two (2) business days following their receipt of Sale of Note Proceeds.

     4.   The Company agrees to hold the Allocation Amounts for the benefit of
the employee Plan Participants in accordance with the terms of the Plan and as
set forth in paragraph 5 below and to distribute payments of the Allocation
Amounts to Plan Participants within five (5) business days of the Company's
receipt of the Allocation Amounts from any Note Holder.

     5.   The Company is directed and authorized by the Note Holders: (a) to
administer and modify the list of eligible Plan Participants from time to time;
and (b) upon the transmittal of the Allocation Amounts from the Note Holders to
the Company, (i) to determine the eligibility of each Plan Participant to
receive a portion of the Allocation Amounts under the Plan, (ii) to allocate the
proceeds from such Allocation Amounts to the eligible Plan Participants and
(iii) to transmit the payments directly to the Plan Participants, subject to all
withholding and other taxes required to be withheld by the Company.

     6.   The Company agrees to withhold from the Allocation Amounts to be
distributed to eligible Plan Participants all applicable taxes it is required to
withhold, including any excise taxes that may be payable under Section 280G of
the Internal Revenue Code or any other applicable law or regulation.

     7.   This Agreement confers full rights and remedies upon each Plan
Participant. Each such Plan Participant individually, and all of them
collectively, shall be treated as third-party beneficiaries of this Agreement.

     8.   All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware, without giving
effect to any choice of law or conflict of law rules or provisions thereof.

     9.   This Agreement may be executed simultaneously in two or more
counterparts, any one of which need not contain the signatures of more than one
party, but all such counterparts taken together shall constitute one and the
same Agreement.

                                      -2-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first written above.

                                        AIRNET COMMUNICATIONS CORPORATION

                                        By:       /s/  Glenn A. Ehley
                                            ------------------------------------
                                                     Glenn A. Ehley,
                                                    President and CEO

                                        TECORE, INC.

                                        By:
                                               ---------------------------------
                                        Name:
                                               ---------------------------------
                                        Title:
                                               ---------------------------------

                                        SCP PRIVATE EQUITY PARTNERS II, LP

                                        By:  SCP Private Equity II,
                                             General Partner, L.P.,
                                             its General Partner

                                        By:
                                               ---------------------------------
                                        Name:
                                               ---------------------------------
                                        Title:
                                               ---------------------------------

                                      -3-

<PAGE>

                                   Exhibit 7.6

                                  [LETTERHEAD]

TECORE, Inc.                            SCP Private Equity Partners II, L.P.
7165 Columbia Gateway Drive             300 Building
Columbia, Maryland 21046                435 Devon Park Drive
Attention:  Mr. Jay J. Salkini          Wayne, Pennsylvania 19087
                                        Attention: Mr. James W. Brown

RE:  Securities Purchase Agreement, dated May ___, 2003 (the "Agreement"), by
     and among TECORE, INC., a Texas corporation ("TECORE"), SCP PRIVATE EQUITY
     PARTNERS II, LP, a Delaware limited partnership ("SCP"), and AIRNET
     COMMUNICATIONS CORPORATION, a Delaware corporation ("AIRNET").

Dear Mr. Salkini and Mr. Brown:

This opinion is delivered pursuant to Section 7.6 of the Agreement. We have
acted as counsel to AIRNET in connection with the Agreement and the transactions
contemplated thereby. Where a term that is defined in the Agreement is used in
this opinion, the term has the same meaning set forth in the Agreement, unless
differently defined herein.

     (1)  In rendering the opinions set forth below, we have examined:

          (A)  The fully executed Agreement and Exhibits thereto;

          (B)  The (i) Certificate of Incorporation of AIRNET, and amendments
               thereto through and including the Eighth Amended and Restated
               Certificate of Incorporation and (ii) the By-Laws of AIRNET, as
               amended;

          (C)  Records of the corporate proceedings of AIRNET, including
               resolutions adopted by AIRNET's Board of Directors authorizing
               all of the transactions contemplated under the Agreement and
               resolutions approved by the stockholders of AIRNET at the annual
               meeting of stockholders held on ____________, 2003, in each case
               certified by the Secretary of AIRNET; and

<PAGE>

TECORE, Inc. and SCP Private Equity Partners II, L.P.

Page 2

          (D)  Certificates of public officials and such other documents,
               records and legal matters as we have deemed necessary or relevant
               for purposes of the opinions hereinafter expressed.

     (2)  In reaching the opinions set forth below, we have assumed, and to our
          knowledge there are no facts inconsistent with, the following:

          (A)  Each of the parties thereto (other than AIRNET) has duly and
               validly executed and delivered each instrument, document, and
               agreement executed in connection with the transactions
               contemplated by the Agreement and Exhibits thereto to which such
               party is a signatory, and such party's obligations set forth
               therein are its legal, valid, and binding obligations,
               enforceable in accordance with their respective terms;

          (B)  Each person executing any such instrument, document, or agreement
               on behalf of any such party (other than AIRNET) is duly
               authorized to do so;

          (C)  Each natural person executing any such instrument, document, or
               agreement is legally competent to do so;

          (D)  There are no oral modifications of or amendments to the Agreement
               or Exhibits thereto, and there has been no waiver of any of the
               provisions of the Agreement or Exhibits thereto, by actions or
               conduct of the parties or otherwise;

          (E)  All documents submitted to us as originals are authentic, all
               documents submitted to us as certified or photostatic copies
               conform to the original document, all signatures on all documents
               submitted to us for examination are genuine, and all public
               records reviewed are accurate and complete;

     (3)  In rendering our opinions, whenever our opinion herein regarding the
          existence or absence of facts is indicated to be based on our
          knowledge or awareness, our opinion is intended to signify that during
          the course of our representation of AIRNET no information has come to
          our attention which would give us actual knowledge of the existence or
          absence of such facts. We have not undertaken any independent
          investigation to determine the existence or absence of such facts and
          no inference of further knowledge should be drawn from our
          representation of AIRNET. When an opinion or other statement set forth
          herein is given to our knowledge, with reference to matters of which
          we are aware or that are known to us, or with a similar qualification,
          the relevant knowledge or awareness is limited solely to the actual
          knowledge of the individual lawyers who are currently partners or
          employees in this firm who have participated directly in the specific
          transactions to which this opinion letter relates or who represent
          AIRNET on a regular basis. As to various questions of fact material to
          this opinion, we have relied upon the truth and

<PAGE>

TECORE, Inc. and SCP Private Equity Partners II, L.P.

Page 3

          completeness of the representations and warranties made by AIRNET in
          the Agreement and upon certifications executed by the Officers and
          Directors of AIRNET, including the representations and certifications
          of the President and Chief Executive Officer of AIRNET set forth in
          the Officer's Certificate attached as Exhibit A hereto. In addition,
          we have obtained from public officials and from officers of AIRNET
          such other certificates and assurances, and we have examined such
          corporate records, other documents and questions of law, as we have
          considered necessary or appropriate for purposes of this opinion.

     (4)  Based upon the foregoing, and subject to the limitations and
          qualifications set forth herein, it is our opinion that:

          (A)  AIRNET has all necessary power and authority to execute, deliver
               and perform its obligations under the Agreement and Exhibits
               thereto to which AIRNET is a party. AIRNET has taken all
               necessary action to duly authorize the execution, delivery and
               performance of the Agreement and Exhibits thereto to which AIRNET
               is a party.

          (B)  AIRNET has duly executed and delivered the Agreement and Exhibits
               thereto to which AIRNET is a party. The Agreement and Exhibits
               thereto, including, but not limited to, the Notes to be issued by
               AIRNET pursuant to the Agreement, to which AIRNET is a party
               constitute the legal, valid and binding obligations of AIRNET,
               enforceable against it in accordance with their respective terms.

          (C)  To our knowledge, except as disclosed on Schedule 2.18 to the
               Agreement, (i) there are no suits, actions, arbitration
               proceedings or governmental proceedings or investigations pending
               or threatened against AIRNET, and (ii) no suits, actions or
               proceedings have been instituted prior to the date hereof against
               AIRNET before any court or governmental body or threatened by any
               public authority seeking to enjoin or invalidate the transactions
               contemplated by the Agreement or Exhibits thereto.

          (D)  The execution and delivery of the Agreement by AIRNET and the
               execution and delivery of each of the Exhibits thereto to which
               AIRNET is a party, and the performance by AIRNET of its
               obligations thereunder, do not conflict with or result in any
               breach or violation of (i) any provision of any existing law or
               regulation applicable to AIRNET, (ii) to our knowledge, any
               order, judgment, award, decree of any court, arbitrator or
               governmental authority applicable to AIRNET, (iii) the
               certificate of incorporation or bylaws of AIRNET, or (iv) subject
               to AIRNET having obtained any consents or approvals contemplated
               by the Agreement and the Exhibits thereto or any Material
               Contract which AIRNET is a party or

<PAGE>

TECORE, Inc. and SCP Private Equity Partners II, L.P.

Page 4

               by which it is bound, or any agreement or commitment known to us
               to which AIRNET is a party or is bound, or constitute a default
               thereunder or give rise to any right of acceleration, termination
               or cancellation thereunder, except as disclosed in the Agreement
               and the Scheduled thereto.

          (E)  The execution, delivery and performance of the Agreement by
               AIRNET and the execution, delivery and performance of each of the
               Exhibits thereto to which AIRNET is a party do not require the
               consent, approval or authorization of, or filing, registration or
               qualification with, any governmental authority (other than any
               such consents or approvals which have been obtained or expressly
               waived by TECORE and/or SCP) other than the following: (i)
               filings pursuant to Regulation D under the Securities Act; (ii)
               required registration, qualification or filings under any state
               securities or "Blue Sky" laws or regulations thereunder; (iii)
               any filings contemplated under the Agreement and Exhibits thereto
               relating to the security interest granted by AIRNET to TECORE and
               SCP in AIRNET's assets, including UCC financing statements or
               amendments and filings with the U.S. Patent and Trademark Office
               to evidence the liens granted by AIRNET to SCP and TECORE to
               secure payment of the Notes; (iv) filings on Form 8-K and other
               periodic filings to be filed with the Securities and Exchange
               Commission when due after the closing of the transactions
               contemplated under the Agreement and Exhibits thereto; and (v)
               filings with Nasdaq as required to add shares of AIRNET capital
               stock to its listed shares, as contemplated under the Agreement
               and Exhibits thereto.

          (F)  AIRNET is a corporation duly organized, validly existing and in
               good standing under the laws of the State of Delaware and has all
               requisite power and authority to conduct its business in the
               manner in which it is presently being conducted and to own,
               operate and lease its properties. AIRNET is duly qualified or
               licensed to do business, and is in good standing, in each
               jurisdiction in which the property owned, leased or operated by
               it or the nature of the business conducted by it makes such
               qualification or licensing necessary, except in such
               jurisdictions where the failure to be so duly qualified, licensed
               and in good standing, individually or in the aggregate, will not
               have a Material Adverse Effect. To our knowledge, Schedule 2.1 to
               the Agreement lists each jurisdiction in which AIRNET is
               qualified to do business.

          (G)  The authorized capital stock of AIRNET consists of four hundred
               million, nine hundred fifty five thousand, four hundred and
               fourteen (400,955,414) shares consisting of two classes of
               capital stock: four hundred million

<PAGE>

TECORE, Inc. and SCP Private Equity Partners II, L.P.

Page 5

               (400,000,000) shares of Common Stock, par value $.001 per share
               ("Common Stock") and nine hundred fifty five thousand, four
               hundred and fourteen (955,414) shares of Preferred Stock, par
               value $.01 per share ("Preferred Stock"). There is authorized and
               designated a Series B Convertible Preferred Stock, par value $.01
               per share (the "Series B Preferred Stock"), consisting of 955,414
               shares. There are the following shares of capital stock issued
               and outstanding: 23,851,177 shares of Common Stock, and 955,414
               shares of Series B Preferred Stock (convertible into
               approximately 9,554,140 shares of Common Stock). In addition,
               there are options for [2,399,539][2,269,599] shares of Common
               Stock issued and outstanding. All outstanding shares of Common
               Stock, Series B Preferred Stock and options for Common Stock have
               been duly authorized, and, assuming receipt by AIRNET of full
               payment of the applicable purchase price for such securities, are
               validly issued, fully paid and non-assessable and not subject to
               any preemptive or similar rights. To the best of our knowledge,
               except for the transactions contemplated under the Agreement,
               except for the options issuable under AIRNET's Stock Option Plan,
               as amended, and except as set forth above, there are no other
               options, warrants, calls, rights, commitments or agreements of
               any character to which AIRNET is a party obligating AIRNET to
               issue additional shares of capital stock or any rights to
               purchase capital stock.

     (5)  The foregoing opinion is subject to the following qualifications:

          (A)  In rendering our opinions regarding AIRNET's good standing, we
               have relied exclusively upon the Certificates of Good Standing.

          (B)  Our opinions expressed herein relate only to the laws of the
               State of Florida, the General Corporation Law of the State of
               Delaware and the federal laws of the United States.

          (C)  Our opinions as to the enforceability of any of the Agreement or
               the Exhibits thereto in accordance with their terms is limited by
               (a) applicable bankruptcy, insolvency, fraudulent conveyance,
               equitable subordination, reorganization, moratorium, arrangement,
               avoidance and other similar laws relating to or affecting
               creditors' rights generally, and (b) the effect of general
               principles of equity and the availability of equitable remedies
               (regardless of whether considered in a proceeding at law or in
               equity) and by limitations on the availability of specific
               performance, injunctive relief, or other equitable remedies.

          (D)  The validity and enforceability of the Agreement and Exhibits
               thereto may be subject to or affected by statutory or decisional
               law limiting or rendering

<PAGE>

TECORE, Inc. and SCP Private Equity Partners II, L.P.

Page 6

               ineffective obligations to indemnify or the waiver or release of
               rights or defenses.

          (E)  Certain rights, remedies, forfeitures, penalties, waivers or
               elections contained in the Agreement and Exhibits thereto may be
               rendered ineffective or limited by applicable laws or judicial
               decisions governing such provisions, but such laws and judicial
               decisions do not, in our opinion, make the Agreement and Exhibits
               thereto inadequate for the substantive realization of the benefit
               intended to be provided thereby.

          (F)  The opinions expressed herein are rendered to you as of the date
               hereof and with respect to such laws in effect as of the date
               hereof, and we assume no obligation to supplement this opinion in
               the event of any change in applicable law or in the facts upon
               which any of the opinions herein are based. The opinions
               expressed in this letter are limited to the matters set forth in
               this letter, and no other opinions should be inferred beyond the
               matters expressly stated.

          (G)  In connection with our opinion expressed in paragraph 4(c)
               herein, we advise you that we have not conducted a search of the
               dockets of all courts or other governmental entities or
               undertaken a judgment search for judgments against AIRNET in all
               jurisdictions, where there could exist evidence of any
               litigation, proceeding or investigation at law or in equity or in
               arbitration pending or threatened against AIRNET.

          (H)  The opinions expressed in this letter are solely for your use and
               benefit and may not be relied on by any other person without our
               prior written approval. This opinion cannot be quoted or referred
               to without the prior written consent of the undersigned, except
               in a list of closing documents with respect to the transactions
               covered hereby or in the Exhibits to the Agreement, or as may be
               required by any court or governmental or regulatory authority.

Very truly yours,

Edwards & Angell, LLP

<PAGE>

                               Exhibit 1.5(b)(iii)

                        AMENDED AND RESTATED EMPLOYMENT,
                          SEVERANCE AND BONUS AGREEMENT

This Employment, Severance and Bonus Agreement (the "AGREEMENT") is entered into
this __ day of ______, 2003, by and between AIRNET COMMUNICATIONS CORPORATION, a
Delaware corporation (the "COMPANY"), and GLENN A. EHLEY (the "EMPLOYEE").

                                    RECITALS:

A. The Employee is an at-will employee of the Company in the capacity of Chief
Executive Officer and President at the behest of the Board of Directors, and has
entered into with the Company an Amended and Restated Employment, Severance, and
Bonus Agreement dated August 13, 2002, (the "2002 Employment Agreement").

B. The Company and Employee desire to amend and restate in its entirety the 2002
Employment Agreement.

C. The Company also recognizes that the possibility that a sale of the Company
could occur which may jeopardize Employee's continued employment with the
Company, and that such possibility, and the uncertainty and questions which it
may raise, may result in the distraction of the Employee to the detriment of the
Company or otherwise.

D. In order to encourage the Employee to maintain his continued attention and
dedication to his duties and responsibilities, the Company desires to enter into
this Agreement with the Employee setting forth terms and conditions as to the
termination of the Employee in connection with a sale of the Company.

NOW, THEREFORE, in consideration of the premises and the covenants and
agreements herein contained and the monies to be paid hereunder, the parties
agree as follows:

     SECTION 1.  DEFINITIONS.

     The following terms shall have the following meanings:

"ACQUISITION PRICE" means the aggregate sum of money and/or fair market value of
property (valued as of the date of closing) to be paid by an acquiring party to
the Company or to its Securityholders in connection with a Sale of the Company.
For purposes of the Bonus Program, if the acquiring party is then a current
Securityholder or an affiliate of a current Securityholder ("CURRENT
SECURITYHOLDER ACQUIRING PARTY") which is (a) acquiring the assets of the
Company in a transaction in which the Current Securityholder Acquiring Party
receives no distribution of money or property with respect to its Securities or
a distribution which is less than the per-share amount received by other
Securities holding the same class or series of Securities, on an as-converted
basis, (b) engaging in a merger, consolidation or other business combination
with the Company in which the Company is not the continuing or surviving
corporation and in which the Current Securityholder Acquiring Party receives no
money or property in exchange for its Securities or an amount of money or
property which is less than the per-share amount received by other
Securityholders holding the same class or series of Securities, on an
as-converted basis, or (c) acquiring Company Securities from Securityholders but
not from itself or the current Securityholder affiliated with the Current
Securityholder Acquiring Party, the amount of the Acquisition Price shall
include the value of the shares of Company common stock held by such Current
Securityholder Acquiring Party or underlying any Convertible Notes or other
convertible Securities held by such Current Securityholder Acquiring Party based
on the same value per share that will be paid or distributed to Securityholders
owning the same class or series of shares, Convertible Notes or other
convertible securities.

<PAGE>

"BONUS POOL PROCEEDS" means moneys distributed from the CNBP (as defined in
Section 5.1) and/or MBP (as defined in Section 5.1).

"CAUSE" means the Employee's intentional bad faith act or omission, felony
conviction, or gross dereliction of duty, which is materially harmful or
damaging to the Company.

"CHANGE OF CONTROL" means the acquisition by any individual, entity or group of
50% or more of the outstanding voting securities of the Company or 50% or more
of the combined voting power of then outstanding voting securities of the
Company entitled to vote generally in the election of directors.

"COMPANY" means AirNet Communications Corporation or, in the event of a Sale of
the Company, the successor(s) in interest to AirNet Communications Corporation.

"COMPETING BUSINESS" shall mean any one or more of the following: (i) any
business in which the Company engages as of the date of this Agreement; or (ii)
any other business in which the Company engages in before the termination of the
Agreement.

"CONVERTIBLE NOTES" shall mean the secured convertible promissory notes in the
aggregate amount of $16,000,000 issued by the Company to the Noteholders.

"GOOD REASON" shall mean, without the Employee's written consent, of any of the
following circumstances:

          (a) The Employee is assigned a new position which entails a reduction
          in the nature of Employee's authority with respect to the operation of
          the Company's business compared to Employee's position in effect on
          (i) the date of this Agreement or (ii) immediately prior to the
          Termination Event or Sale of the Company Termination Event, as
          applicable, whichever position is greater or more senior;

          (b) A reduction in the Employee's Base Salary or Employee's Override
          Bonus as in effect on (i) the date of this Agreement or (ii)
          immediately prior to the Termination Event or Sale of the Company
          Termination Event, as applicable, whichever is greater, or an adverse
          change in benefits or perquisites other than a change that is
          generally applicable to all executive employees;

          (c) The Company's requirement that the Employee's site of principal
          employment be more than twenty-five miles from the offices at which
          the Employee was principally employed on the date of this Agreement;
          or

          (d) The Employee is assigned duties inconsistent with the status of
          the position that the Employee held on (i) the date of this Agreement
          or (ii) immediately prior to the Termination Event or the Sale of the
          Company Termination Event, as applicable, whichever is greater, or an
          adverse alteration in the nature or status of the Employee's
          responsibilities or in the quality or amount of office accommodations
          provided to the Employee, from those in effect immediately prior to
          such Termination Event or Sale of the Company Termination Event, as
          applicable, which shall constitute a constructive demotion.

                                      -2-

<PAGE>

"NET PROCEEDS TO SECURITYHOLDERS" shall mean the net sales proceeds available
for distribution to the Company's Securityholders in connection with the Sale of
the Company, after deducting from the Acquisition Price transaction expenses
relating directly to the Sale of the Company including attorneys fees,
accounting fees, and underwriting or brokerage commissions; provided that if a
Noteholder or the Noteholders sell all or any portion of their Convertible Notes
in connection with a Sale of the Company, only the proceeds payable to such
Noteholders in excess of the amount of the then outstanding principal balance
and related accrued unpaid interest payable under the Convertible Notes sold or
such portion of the Convertible Notes so sold shall be included in NET PROCEEDS
TO SECURITYHOLDERS.

"NOTEHOLDERS" shall mean TECORE, Inc. ("Tecore") and SCP Private Equity Partners
II, LLP ("SCP") and any of their affiliates who acquire an interest in the
respective Convertible Notes.

"PERSON" means an individual, partnership, corporation, association, trust,
joint venture, unincorporated organization and any government, governmental
department or agency or political subdivision thereof.

"PROTECTED TERRITORY" shall mean any state within the United States or other
country in which the Company or any of its subsidiaries provides any of its
services or sells or distributes any of its products as of the date of this
Agreement or thereafter.

"SALE OF NOTE PROCEEDS" shall mean the proceeds paid to Noteholders for the sale
of all or any portion of the Convertible Notes by the Noteholders, other than in
connection with the Sale of the Company, in excess of the amount of the then
outstanding principal balance and related accrued unpaid interest payable under
the Convertible Notes sold or such portion of the Convertible Notes so sold, if
only a portion is sold.

"SALE OF THE COMPANY" shall mean (i) a sale or exchange of all or substantially
all of the assets (including a sale, disposition, or exchange in a liquidation
but excluding any such sale or exchange to a direct or indirect subsidiary
("Successor Subsidiary") of the Company) by the Company or by a Successor
Subsidiary or (ii) a sale or exchange of all or substantially all of the
outstanding capital stock of the Company resulting in a Change of Control of the
Company or Successor Subsidiary or (iii) a merger, consolidation or other
business combination (excluding any issuance of previously un-issued voting
securities from the Company in connection with an investment in the Company by a
Noteholder or any third party, or exercise of conversion rights by a Noteholder)
resulting in a Change of Control of the Company or Successor Subsidiary, as a
result of which the Company or the Successor Subsidiary is not the continuing or
surviving corporation.

"SECURITIES" of the Company shall mean shares of common stock, preferred stock,
or securities convertible into shares of common stock or preferred stock,
including options, warrants, the Convertible Notes, and any other convertible
notes.

"SECURITYHOLDERS" shall mean holders of the Company's then outstanding
Securities.

     SECTION 2.  EMPLOYMENT.

2.1 BASE SALARY. The Company hereby retains Employee at an annual base salary of
$250,000 (the "BASE SALARY"). The Base Salary shall be paid in accordance with
the Company's ordinary and customary payroll practices, which may be amended
from time to time.

                                      -3-

<PAGE>

2.2 BONUS. In addition to the Base Salary, Employee shall receive an override
bonus equal to 0.425% of all Company sales ("Override Bonus"). The Override
Bonus shall be paid quarterly in arrears by the Company to Employee. In
addition, the Employee as CEO shall be entitled annually to participate in any
management and employee bonus programs established by the Company's Board of
Directors and to receive a CEO bonus under such programs if Employee meets the
goals established by the Company's Board of Directors.

2.3 LIFE INSURANCE. As long as Employee can pass the required physical and is
insurable at reasonable and customary rates, the Company hereby agrees to
purchase a $3,000,000 term life insurance policy covering Employee and to
maintain such policy as long as Employee remains in the employ of the Company.
Employee shall have the right, in his sole discretion, to designate the
beneficiaries under the term life insurance policy purchased by under this
Section 2.3.

2.4 STOCK OPTIONS. Provided the $16,000,000 Secured Convertible Note Financing
by SCP Private Equity Partners II, LP ("SCP") and TECORE, Inc. ("Tecore") is
closed, the Company shall upon such closing grant to Employee options to
purchase 10,883,106 shares of common stock under the Company's stock option plan
(the "Plan") at an exercise price of $0.01 per share with vesting over two
years. In the event the Company is permitted to grant additional stock options
under the Plan in accordance with Section 9.11 (b) and 9.11 (c) of the
Securities Purchase Agreement dated June __, 2003 between the Company and SCP
Private Equity Partners II, LP and TECORE, Inc (the "Purchase Agreement"), then
the Company shall promptly grant to Employee, if he is still employed by the
Company at such time, one half of the amount of new stock options the Company is
permitted to grant to employees under such Sections 9.11 (b) and (c) of the
Purchase Agreement.

     SECTION 3.  TERMINATION EVENTS.

3.1 TERMINATION. The Company retains its right to terminate Employee's
employment with or without Cause.

3.2 TERMINATION EVENT. Each of the following events shall be a "TERMINATION
EVENT:"

          (a) The termination of the Employee without Cause; or

          (b) The resignation of Employee upon no less than two weeks' written
          notice to the Company under circumstances constituting Good Reason to
          resign.

3.3 SALE OF THE COMPANY TERMINATION EVENT. Each of the following events which
occur (i) at any time following execution of a letter of intent or definitive
agreement for the Sale of the Company and on or before consummation of such
transaction, (ii) within 135 days prior to any consummated Sale of the Company,
or (iii) within twelve months following the Sale of the Company, shall be a
"SALE OF THE COMPANY TERMINATION EVENT:"

          (a) The termination of the Employee without Cause; or

          (b) The resignation of Employee upon no less than two weeks' written
          notice to the Company under circumstances constituting Good Reason to
          resign.

                                      -4-

<PAGE>

     SECTION 4.  SEVERANCE; NON-COMPETE AND NON-SOLICITATION.

4.1 SEVERANCE AMOUNT. Upon a Termination Event or Sale of the Company
Termination Event, the Company shall pay the Employee an amount (the "Severance
Payment") equal to twelve (12) months salary plus benefits in a lump sum within
three (3) days from the date of the Termination Event or Sale of Company
Termination Event, based on the greater of the base salary of Employee as of the
date of this Agreement or the then current base salary of Employee as of the
effective date of termination. If the same event meets the definition of both a
Termination Event and Sale of the Company Termination Event, Employee shall be
entitled to receive only one Severance Payment for such event. In addition, upon
a Termination Event or Sale of the Company Termination Event, all of Employee's
unvested stock options to purchase Company common stock will accelerate and be
vested upon either of such events, in accordance with the Amendment to Incentive
Stock Option Agreement between Employee and the Company.

4.2 PAYMENT MITIGATION. The Severance Payment payable under this Agreement shall
be paid by the Company to the Employee in a lump sum and shall be deemed fully
earned by Employee, subject to withholding; provided that the net amount after
withholding shall be immediately deposited in escrow ("ESCROW DEPOSIT") with a
mutually acceptable third party ("ESCROW AGENT"). Subject to the mitigation
provisions of this Section 4.2, the Escrow Agent shall deliver to Employee out
of escrow one twelfth of the total amount originally deposited in escrow on each
month commencing 30 days from the Termination Event or Sale of Company
Termination Event. Employee agrees that in the event he earns any salary,
consulting fees, signing bonuses, or other compensation income from a party
other than the Company during this twelve (12) month period ("MITIGATION
PERIOD"), that the Company shall be entitled to reduce its Severance Payment
obligation, net of withholding, by the amount of such payments received by
Employee net of withholding ("OTHER NET COMPENSATION") and that Employee will
promptly notify the Company and the Escrow Agent of his receipt of Other Net
Compensation. If the Company and the Escrow Agent receive such notice or
otherwise verify that Employee has received Other Net Compensation during the
Mitigation Period, the Escrow Agent shall deliver to the Company from the Escrow
Deposit an amount equal to the Other Net Compensation received by Employee
during the Mitigation Period. Once disbursed by the Escrow Agent, Employee shall
be under no obligation to reimburse the Company any of those disbursed amounts
unless Employee has failed to disclose the receipt of any Other Net Compensation
during the Mitigation Period. Any scheduled monthly disbursements due from the
Escrow Agent shall be offset and reduced by the amount of Other Net Compensation
received by Employee during the Mitigation Period. The Employee and Company will
enter into a suitable escrow agreement with the Escrow Agent to carry out the
provisions of this Section 4.2. Employee is under no duty to seek employment or
other sources of compensation income during the Mitigation Period.

4.3 ADDITIONAL SEVERANCE BENEFITS. The Severance Payment described in this
Section 4 does not include nor replace any other benefits payable to or received
by the Employee upon a Sale of the Company as described in Section 5.

4.4 NON-COMPETITION/NON-SOLICITATION. In the event that Employee resigns without
Good Reason or is terminated for Cause, for a period of twelve months (the
"TERM") from the date of that resignation/termination Employee agrees that
Employee will not, singly, jointly, or as a partner, member, employee, agent,
officer, director, stockholder (except as a holder of not more than two percent
of the outstanding stock of any company listed on a national securities
exchange, or actively traded in a national over-the-counter market), equity
holder, lender, consultant, independent contractor, or joint venturer of any
other person, or in any other capacity, directly or beneficially: (i) own,
manage, operate, join, control, or participate in the ownership, management,
operation or control of, or permit the use of his name by, or work for, or
provide consulting, financial or other assistance to, or be connected in any
manner with, a Competing Business anywhere in the Protected Territory during the
Term; (ii) employ, retain or engage (as an employee, consultant

                                      -5-

<PAGE>

or independent contractor), or induce or attempt to induce to be employed,
retained or engaged, any Person who is or was an employee of the Company during
the Term; (iii) induce or attempt to induce any Person who, on the date hereof
or at any time hereafter during the Term, is an employee of the Company to
terminate his or her relationship with the Company; or (iv) induce or attempt to
induce any Person which is a customer of the Company, or which otherwise is a
contracting party with the Company, as of the date hereof or at any time
hereafter during the Term to terminate any written or oral agreement or
understanding with the Company.

     SECTION 5.  SALE OF NOTES AND ACQUISITION BONUS; GROSS-UP AMOUNT.

     5.1  SALE OF NOTES AND ACQUISITION BONUS

(a) The Company has adopted an Amended and Restated the Company Bonus Program,
adopted as of the date hereof (the "BONUS PROGRAM"). The Company hereby agrees
that Employee shall be entitled to receive from the moneys allocated to the
Bonus Program tied to the sale of Convertible Notes ("CNBP") a payment equal to
five percent (5%) of the Sale of Note Proceeds. In addition, the Company hereby
agrees that Employee shall be entitled to receive from the moneys allocated to
the Management and Employee Bonus Pool (the "MBP") a payment equal to five
percent (5%) of the Net Proceeds to Securityholders.

Employee hereby acknowledges that the percentage of Sale of Note Proceeds and
percentage of Net Proceeds to Securityholders that he receives under this
paragraph plus any amounts under Section 5.2 is the total amount to be paid to
Employee under the Bonus Program and Section 5.2. Notwithstanding the foregoing,
all amounts payable hereunder to Employee from MBP shall be reduced by an amount
equal to the value of the spread between the option exercise price of the
Employee's options and the per share price to be distributed to the common
shareholders in connection with the Sale of the Company for those options held
by Employee that are "in-the-money". By way of illustration, if the Acquisition
Price is $21,000,000 and the Net Proceeds to Common Stockholders is $19,000,000,
then the 5% payable to Employee would be applied to the entire $19,000,000
amount. The Employee would receive $950,000 as an acquisition bonus, less an
In-The-Money Option amount as calculated in Section 3 of the Bonus Program
(provided the shares underlying the Employee's In-the-Money Options are
purchased by the acquiring party in connection with the Sale of the Company),
plus the gross-up amount specified in Section 5.2.

(b) Should a Current Securityholder Acquiring Party be the purchaser in a Sale
of the Company and that party does not receive, or waives its right to receive,
all or any portion of the purchase price otherwise payable to Securityholders,
then and only in that event, the Net Sales Proceeds to Securityholders shall
include the value of the shares of Company stock held by such Current
Securityholder Acquiring Party based on the same value per share that will be
paid or distributed to Securityholders owning the same class or series of
shares, Convertible Notes or other convertible securities (the " Value
Adjustment"). The payment of bonuses applicable to this Value Adjustment is an
obligation of the Company and shall not reduce the amount of Net Proceeds to
Securityholders otherwise payable to stockholders other than the Employee and
other participants in the Bonus Pool.

5.2 GROSS-UP AMOUNT. The Company shall provide an additional payment to the
Employee ("GROSS-UP PAYMENT") to cover all applicable excise taxes payable by
the Employee upon the distribution of any Bonus Program proceeds and the value
of the Employee's stock options subject to such excise taxes. The Gross-Up
Payment shall be payable from the consideration allocated to the CNBP and/or the
MBP. The Company and Employee hereby agree, notwithstanding the foregoing that
the total amount paid to Employee under Section 5, including the Gross-Up
Payment, shall not exceed six and one quarter percent (6.25%) of the Sale of
Note Proceeds and Net Proceeds to Securityholders and the value of the
Employee's stock options subject to excise taxes.

                                      -6-

<PAGE>

5.3 SEVERANCE BENEFITS. The payments under this Section 5 do not include or
replace any Severance Payment that may be payable to or received by the Employee
upon the occurrence of a Termination Event or a Sale of the Company Termination
Event, as described in Section 4.

     SECTION 6.  PARTIAL INVALIDITY.

The invalidity or unenforceability of a particular provision of this Agreement
shall not affect the other provisions hereof, and this Agreement shall be
construed in all respects as if such invalid or unenforceable provisions were
omitted.

     SECTION 7.  TERMINATION OF AGREEMENT.

This Agreement shall terminate upon the earlier of: (i) the date the Employee is
terminated for Cause or resigns without Good Reason; (ii) twelve months and one
day after a Sale of the Company has occurred; or (iii) the fourth (4th)
anniversary of this Agreement. The obligations of Employee under Section 4.2 and
4.4 will survive termination of this Agreement.

     SECTION 8.  NO ORAL MODIFICATION.

Except as set forth in Section 9 below, no modification, amendment or waiver of
any of the provisions of this Agreement shall be deemed effective unless made in
writing specifically referring to this Agreement and duly signed by each party
hereto.

     SECTION 9.  MODIFICATION OF AGREEMENT.

In the event any provision of this Agreement is determined to be invalid by any
court or other entity of competent jurisdiction, such provision(s) shall be
deemed to have been amended and the parties hereto agree to execute all
documents necessary to evidence such amendment so as to eliminate or modify any
such invalid provision(s) so as to carry out the intent of this Agreement
enforceable in all respects as so modified.

     SECTION 10. GOVERNING LAW/VENUE.

This Agreement shall be governed and construed by the provisions hereof and in
accordance with the laws of the State of Florida applicable to agreements to be
performed in the State of Florida. Venue for any litigation stemming from the
construction and operation of this Agreement shall be in Brevard County,
Florida.

     SECTION 11. ASSIGNABILITY.

This Agreement may not be assigned by either party, in whole or in part, without
the prior written consent of the party to be charged; provided, however, that
such prior written consent shall not be unreasonably withheld.

     SECTION 12. BINDING EFFECT.

This Agreement shall be binding on the successors and assigns of either party
hereto, except that the Company shall not be relieved of any liability hereunder
upon the assignment, in connection with a Sale of the Company or otherwise, of
this Agreement. The Company agrees to obtain the consent of any successor to be
bound by this Agreement.

                                      -7-

<PAGE>

     SECTION 13. ATTORNEYS' FEES.

In any suit brought by the Employee to enforce his rights under this Agreement,
if the Employee prevails, the Employee shall be entitled to reasonable
attorneys' fees and costs.

     SECTION 14. COUNTERPARTS.

This Agreement may be signed and executed in one or more counterparts, each
which shall be deemed an original and all of which together shall constitute one
agreement.

     SECTION 15. NOTICE.

Any consent, waiver, notice, demand, request, or other instrument required or
permitted to be given under this Agreement shall be deemed to have been properly
given when in writing and delivered in person or sent by certified or registered
mail, return receipt requested, postage prepaid, addressed:

               If to the Company:

               AirNet Communications Corporation 3950 Dow Road Melbourne,
               Florida 32934 Attention: Chief Financial Officer

               If to the Employee:

               Glenn A. Ehley 2703 Barrow Drive Merritt Island, Florida 32952

Either party may change its address for notices by notice in the manner set
forth above.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first written above.

                                        COMPANY:

                                        AIRNET COMMUNICATIONS CORPORATION,
                                        a Delaware corporation

                                        By:
                                              ----------------------------
                                        Title:
                                              ----------------------------

                                        EMPLOYEE:
                                                 -------------------------
                                                      Glenn A. Ehley

                                      -8-QuickLinks
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Exhibit 4.1  

        SIX FLAGS, INC.  

 $430,000,000  

 93/4% SENIOR NOTES DUE 2013  

 

INDENTURE  

 Dated as of April 16, 2003  

 

THE BANK OF NEW YORK  

 as Trustee  

 
 

Table of Contents    
    

	 
	 	 
	 	Page

	

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	
 	

1
	Section 1.01.	 	Definitions	 	1
	Section 1.02.	 	Other Definitions	 	16
	Section 1.03.	 	One Class of Securities	 	16
	Section 1.04.	 	Trust Indenture Act	 	16
	Section 1.05.	 	Rules of Construction	 	16
	

ARTICLE II THE NOTES	
 	

17
	Section 2.01.	 	Issuance of Additional Notes	 	17
	Section 2.02.	 	Payments by Company by Wire Transfer	 	17
	Section 2.03.	 	Form and Dating	 	17
	Section 2.04.	 	Execution and Authentication	 	18
	Section 2.05.	 	Registrar and Paying Agent	 	18
	Section 2.06.	 	Paying Agent to Hold Money in Trust	 	18
	Section 2.07.	 	Holder Lists	 	19
	Section 2.08.	 	Transfer and Exchange	 	19
	Section 2.09.	 	Replacement Notes	 	29
	Section 2.10.	 	Outstanding Notes	 	30
	Section 2.11.	 	Treasury Notes	 	30
	Section 2.12.	 	Temporary Notes	 	30
	Section 2.13.	 	Cancellation	 	30
	Section 2.14.	 	Defaulted Interest	 	30
	Section 2.15.	 	Cusip Numbers.	 	31
	

ARTICLE III REDEMPTION AND PREPAYMENT	
 	

31
	Section 3.01.	 	Notices to Trustee	 	31
	Section 3.02.	 	Selection of Notes to Be Redeemed	 	31
	Section 3.03.	 	Notice of Redemption	 	31
	Section 3.04.	 	Effect of Notice of Redemption	 	32
	Section 3.05.	 	Deposit of Redemption Price	 	32
	Section 3.06.	 	Notes Redeemed in Part	 	32
	Section 3.07.	 	Optional Redemption	 	32
	Section 3.08.	 	Mandatory Redemption	 	33
	Section 3.09.	 	Offer to Purchase by Application of Excess Proceeds	 	33
	

ARTICLE IV COVENANTS	
 	

35
	Section 4.01.	 	Payment of Notes	 	35
	Section 4.02.	 	Maintenance of Office or Agency	 	35
	Section 4.03.	 	Reports	 	35
	Section 4.04.	 	Compliance Certificate	 	36
	Section 4.05.	 	Taxes	 	36
	Section 4.06.	 	Stay, Extension and Usury Laws	 	36
	Section 4.07.	 	Restricted Payments	 	37
	Section 4.08.	 	Dividend and Other Payment Restrictions Affecting Subsidiaries	 	39
	Section 4.09.	 	Incurrence of Indebtedness and Issuance of Preferred Stock	 	39
	Section 4.10.	 	Asset Sales	 	41
	Section 4.11.	 	Transactions with Affiliates	 	43
	Section 4.12.	 	Liens	 	43
	Section 4.13.	 	Line of Business	 	44
	Section 4.14.	 	Corporate Existence	 	44
	Section 4.15.	 	Offer to Repurchase Upon Change of Control	 	44
	 	 	 	 	 

 

	Section 4.16.	 	Limitation on Sale and Leaseback Transactions	 	45
	Section 4.17.	 	Payments for Consent	 	45
	Section 4.18.	 	Limitation on Leases	 	45
	

ARTICLE V SUCCESSORS	
 	

46
	Section 5.01.	 	Merger, Consolidation, or Sale of Assets	 	46
	Section 5.02.	 	Successor Corporation Substituted	 	46
	

ARTICLE VI DEFAULTS AND REMEDIES	
 	

46
	Section 6.01.	 	Events of Default	 	46
	Section 6.02.	 	Acceleration	 	47
	Section 6.03.	 	Other Remedies	 	48
	Section 6.04.	 	Waiver of Past Defaults	 	48
	Section 6.05.	 	Control by Majority	 	48
	Section 6.06.	 	Limitation on Suits	 	49
	Section 6.07.	 	Rights of Holders to Receive Payment	 	49
	Section 6.08.	 	Collection Suit by Trustee	 	49
	Section 6.09.	 	Trustee May File Proofs of Claim	 	49
	Section 6.10.	 	Priorities	 	50
	Section 6.11.	 	Undertaking for Costs	 	50
	

ARTICLE VII TRUSTEE	
 	

50
	Section 7.01.	 	Duties of Trustee.	 	50
	Section 7.02.	 	Rights of Trustee	 	51
	Section 7.03.	 	Individual Rights of Trustee	 	52
	Section 7.04.	 	Trustee's Disclaimer	 	52
	Section 7.05.	 	Notice of Defaults	 	52
	Section 7.06.	 	Reports by Trustee to Holders of the Notes	 	52
	Section 7.07.	 	Compensation and Indemnity	 	53
	Section 7.08.	 	Replacement of Trustee	 	53
	Section 7.09.	 	Successor Trustee by Merger, etc	 	54
	Section 7.10.	 	Eligibility; Disqualification	 	54
	Section 7.11.	 	Preferential Collection of Claims Against Company	 	54
	

ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE	
 	

54
	Section 8.01.	 	Option to Effect Legal Defeasance or Covenant Defeasance	 	54
	Section 8.02.	 	Legal Defeasance and Discharge	 	54
	Section 8.03.	 	Covenant Defeasance	 	55
	Section 8.04.	 	Conditions to Legal or Covenant Defeasance	 	55
	Section 8.05.	 	Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions	 	56
	Section 8.06.	 	Repayment to Company	 	57
	Section 8.07.	 	Reinstatement	 	57
	

ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER	
 	

57
	Section 9.01.	 	Without Consent of Holders	 	57
	Section 9.02.	 	With Consent of Holders.	 	58
	Section 9.03.	 	Compliance with Trust Indenture Act	 	59
	Section 9.04.	 	Revocation and Effect of Consents	 	59
	Section 9.05.	 	Notation on or Exchange of Notes	 	59
	Section 9.06.	 	Trustee to Sign Amendments, etc.	 	59

ii

 

	

ARTICLE X SATISFACTION AND DISCHARGE	
 	

60
	Section 10.01.	 	Satisfaction and Discharge	 	60
	Section 10.02.	 	Deposited Cash and Government Securities	 	60
	Section 10.03.	 	Repayment to Company	 	60
	Section 10.04.	 	Reinstatement	 	61
	

ARTICLE XI MISCELLANEOUS	
 	

61
	Section 11.01.	 	Trust Indenture Act Controls	 	61
	Section 11.02.	 	Notices	 	61
	Section 11.03.	 	Communication by Holders with Other Holders	 	62
	Section 11.04.	 	Certificate and Opinion as to Conditions Precedent	 	62
	Section 11.05.	 	Statements Required in Certificate or Opinion	 	62
	Section 11.06.	 	Rules by Trustee and Agents	 	62
	Section 11.07.	 	No Personal Liability of Directors, Officers, Employees and Stockholders	 	63
	Section 11.08.	 	Governing Law	 	63
	Section 11.09.	 	No Adverse Interpretation of Other Agreements	 	63
	Section 11.10.	 	Successors	 	63
	Section 11.11.	 	Severability	 	63
	Section 11.12.	 	Counterpart Originals	 	63
	Section 11.13.	 	Table of Contents, Headings, etc.	 	63

iii

  

 
 

CROSS-REFERENCE TABLE*    
    

	Trust Indenture Act Section
 
	 	Indenture Section

	310	(a)(1)	 	7.10
	 	(a)(2)	 	7.10
	 	(a)(3)	 	N.A.
	 	(a)(4)	 	N.A.
	 	(a)(5)	 	7.10
	 	(b)	 	7.10
	 	(c)	 	N.A.
	311	(a)	 	7.11
	 	(b)	 	7.11
	 	(c)	 	N.A.
	312	(a)	 	2.05
	 	(b)	 	11.03
	 	(c)	 	11.03
	313	(a)	 	7.06
	 	(b)(1)	 	11.03
	 	(b)(2)	 	7.06, 7.07
	 	(c)	 	7.06, 11.02
	 	(d)	 	7.06
	314	(a)	 	4.03, 11.02
	 	(b)	 	N.A.
	 	(c)(1)	 	11.04
	 	(c)(2)	 	11.04
	 	(c)(3)	 	N.A.
	 	(d)	 	N.A.
	 	(e)	 	11.05
	 	(f)	 	N.A.
	315	(a)	 	7.01
	 	(b)	 	7.05, 11.02
	 	(c)	 	7.01
	 	(d)	 	7.01
	 	(e)	 	6.11
	316	(a)(last sentence)	 	2.11
	 	(a)(1)(A)	 	6.05
	 	(a)(1)(B)	 	6.04
	 	(a)(2)	 	N.A.
	 	(b)	 	6.07
	 	(c)	 	2.14
	317	(a)(1)	 	6.08
	 	(a)(2)	 	6.09
	 	(b)	 	2.06
	318	(a)	 	11.01
	 	(b)	 	N.A.
	 	(c)	 	11.01

N.A.
means not applicable 

	*
	This
Cross-Reference Table is not part of the Indenture 

iv

        INDENTURE, dated as of April 16, 2003, between Six Flags, Inc., a Delaware corporation (the "Company"), and The Bank of New York, a New York banking corporation, as trustee
(the "Trustee"). 

        The
Company and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the 93/4% Senior Notes due 2013 (the
"Initial Notes") and the 93/4% Senior Notes due 2013 if and when issued in the Exchange Offer (the "New Notes" and, together with the Initial Notes, the "Notes"). 

 
 

ARTICLE I
  DEFINITIONS AND INCORPORATION BY REFERENCE    
    

        Section
1.01    Definitions.    

        "144A
Global Note" means one or more global notes in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf
of, and registered in the name of, the Depositary or its nominee that will represent the aggregate principal amount of the Notes sold in reliance on Rule 144A. 

        "Acquired
Debt" means, with respect to any specified Person, (i) Indebtedness of any other Person existing at the time such other Person is merged with or into or becomes a
Subsidiary of such specified Person, including, without limitation, Indebtedness incurred in connection with, or in contemplation of, such other Person merging with or into or becoming a Subsidiary of
such specified Person, and (ii) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person. 

        "Affiliate"
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as used with respect to any Person, shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control. 

        "Agent"
means any Registrar, Paying Agent or co-registrar. 

        "Applicable
Procedures" means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear and
Clearstream that apply to such transfer or exchange. 

        "Asset
Sale" means (i) the sale, conveyance or other disposition of any assets or rights (including, without limitation, by way of a sale and leaseback) other than sales of
inventory in the ordinary course of business; provided that the sale, conveyance or other disposition of all or substantially all of the assets of the
Company and its Restricted Subsidiaries taken as a whole will be governed by Section 4.15 and/or Section 5.01 hereof and not by Section 4.10 hereof, and (ii) the issue or
sale by the Company or any of its Restricted Subsidiaries of Equity Interests of any of the Company's Restricted Subsidiaries, in the case of either clause (i) or (ii), whether in a single
transaction or a series of related transactions (a) that have a fair market value in excess of $10.0 million or (b) for net proceeds in excess of $10.0 million.
Notwithstanding the preceding, the following items shall not be deemed to be Asset Sales: (i) a transfer of assets by the Company to a Restricted Subsidiary or by a Restricted Subsidiary to the
Company or to another Restricted Subsidiary, (ii) an issuance of Equity Interests by a Restricted Subsidiary to the Company or to another Restricted Subsidiary, (iii) the transfer of
Equity Interests in any Restricted Subsidiary pursuant to the Subordinated Indemnity Agreement or the Partnership Parks Agreements, (iv) the issuance of Equity Interests by a Restricted
Subsidiary to any employee thereof or as consideration for the acquisition of all or substantially all of the assets of, or a majority of the Voting Stock of, any Person (or a business unit or
division of such Person), provided that the primary business of such Person (or such unit or division) is a Permitted Business, (v) the
substitution of property in accordance with the terms of the Parcel Lease, dated November 7, 1997, between Marine 

 

World
and Park Management Corp., as the same may be modified or amended from time to time after the Issue Date, provided such modification or amendment
does not adversely affect the interests of the Holders in any material respect, and (vi) a Restricted Payment that is permitted by Section 4.07 hereof. 

        "Attributable
Debt" in respect of a sale and leaseback transaction means, at the time of determination, the present value (discounted at the rate of interest implicit in such
transaction, determined in accordance with GAAP) of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction
(including any period for which such lease has been extended or may, at the option of the lessor, be extended). 

        "Bankruptcy
Law" means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 

        "Beneficial
Share Assignment Agreement" means the Beneficial Share Assignment Agreement, dated as of April 1, 1998, between TW-SPV Co. and the Company. 

        "Board
of Directors" means the Board of Directors of the Company, or any authorized committee of the Board of Directors. 

        "Broker-Dealer"
has the meaning set forth in the Registration Rights Agreement. 

        "Business
Day" means any day other than a Legal Holiday. 

        "Capital
Lease Obligation" means, at the time any determination thereof is to be made, the amount of the liability in respect of a capital lease that would at such time be required to be
capitalized on a balance sheet in accordance with GAAP. 

        "Capital
Stock" means (i) in the case of a corporation, corporate stock, (ii) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock, (iii) in the case of a partnership or limited liability company, partnership or membership interests
(whether general or limited) and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing Person. 

        "Cash
Equivalents" means (i) United States dollars or foreign currency, (ii) securities issued or directly and fully guaranteed or insured by the United States government
or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities
of not more than one year from the date of acquisition, (iii) certificates of deposit and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers'
acceptances with maturities not exceeding six months and overnight bank deposits, in each case with any lender party to the Credit Facilities or with any commercial bank having capital and surplus in
excess of $500.0 million and a Thompson Bank Watch Rating of "B" or better, (iv) repurchase obligations with a term of not more than thirty days for underlying securities of the types
described in clauses (ii) and (iii) above entered into with any financial institution meeting the qualifications specified in clause (iii) above, (v) commercial paper
having the highest rating obtainable from Moody's Investors Service, Inc. or Standard & Poor's Corporation and in each case maturing within one year after the date of acquisition,
(vi) securities with maturities of six months or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any state, commonwealth or territory, the securities of which state, commonwealth, territory, political subdivision or taxing authority (as the case may be) are
rated at least
"A" by Standard & Poor's Corporation or "A" by Moody's Investors Service, Inc. and (vii) money market funds at least 95% of the assets of which constitute Cash Equivalents of the
kinds described in clauses (i) through (vi) of this definition. 

        "Change
of Control" means the occurrence of any of the following: (i) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of 

2

 

related
transactions, of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole to any "person" (as such term is used in Section 13(d)(3) of the Exchange
Act), (ii) the adoption of a plan relating to the liquidation or dissolution of the Company, (iii) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any "person" becomes the "beneficial owner" (as such terms are defined in Rule 13d-3 and Rule 13d-5 under the Exchange
Act), directly or indirectly, of more than 35% of the Voting Stock of the Company, or (iv) the first day on which a majority of the members of the Board of Directors of the Company are not
Continuing Directors. 

        "Clearstream"
means Clearstream Banking S.A. 

        "Company"
means Six Flags, Inc., and any and all successors thereto. 

        "Consolidated
Cash Flow" means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period plus (i) provision for taxes based on income
or profits of such Person and its Restricted Subsidiaries for such period, to the extent that such provision for taxes was included in computing such Consolidated Net Income,  plus (ii) Consolidated
Interest Expense of such Person and its Restricted Subsidiaries for such period, to the extent that any such expense was
deducted in computing such Consolidated Net Income; plus (iii) depreciation, amortization (including any depreciation or amortization arising out
of purchases by the Company or any Restricted Subsidiary of Equity Interests in the partners of the Co-Venture Partnerships and amortization of goodwill and other intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period) and other non-cash expenses (excluding any such non-cash expense to the extent that it represents an
accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period
to the extent that such depreciation, amortization and other non-cash expenses were deducted in computing such Consolidated Net Income;  minus (iv) non-cash items increasing such Consolidated Net
Income for such period, in each case, on a consolidated basis and
determined in accordance with GAAP (other than accrual of income in the ordinary course of business in respect of a future cash payment). 

        Notwithstanding
any other provision of this Indenture to the contrary, "Consolidated Cash Flow" of the Company for any period will be deemed to include 100% of the cash distributions to
the Company or
any of its Restricted Subsidiaries in respect of such period from the Co-Venture Partnerships, directly or indirectly, out of the Consolidated Cash Flow of the Co-Venture
Partnerships in respect of such period. 

        "Consolidated
Indebtedness" means, with respect to any Person as of any date of determination, the sum, without duplication, of (i) the total amount of Indebtedness and
Attributable Debt of such Person and its Restricted Subsidiaries, plus (ii) the total amount of Indebtedness and Attributable Debt of any other
Person, to the extent that the same has been guaranteed by the referent Person or one or more of its Restricted Subsidiaries, plus (iii) the
aggregate liquidation value of all Disqualified Stock of such Person and all preferred stock of Restricted Subsidiaries of such Person, in each case, determined on a consolidated basis in accordance
with GAAP. 

        "Consolidated
Interest Expense" means, with respect to any Person for any period, the sum of (i) the consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued (including, without limitation, amortization of original issue discount, non-cash interest payments, the interest component of any deferred payment
obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges
incurred in respect of letter of credit or bankers' acceptance financings, and net payments (if any) pursuant to Hedging Obligations); and (ii) the consolidated interest expense of such Person
and its Restricted Subsidiaries that was capitalized during such period; and (iii) any interest expense on Indebtedness or Attributable Debt of another Person that is guaranteed by such Person
or one of its Restricted Subsidiaries or secured by a Lien on 

3

 

assets
of such Person or one of its Restricted Subsidiaries (whether or not such guarantee or Lien is called upon). The term "Consolidated Interest Expense" shall not include the consolidated interest
expense of any Person with respect to (i) Indebtedness of the Co-Venture Partnerships (or the general partners thereof), except to the extent guaranteed by the Company or any
Restricted Subsidiary (other than such general partners); or (ii) any obligations of the Company or any Restricted Subsidiary under the Partnership Parks Agreements, the Marine World Agreements
or the Subordinated Indemnity Agreement. 

        "Consolidated
Net Income" means, with respect to any Person for any period, the aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, and prior to any deduction in respect of dividends on any series of preferred stock of such Person, determined in accordance with GAAP; provided that (i) the Net Income (but
not loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting shall be included only to the extent of the amount of dividends or distributions
paid in cash to the referent Person or a Wholly Owned Restricted Subsidiary thereof, (ii) the Net Income of any Person acquired in a pooling of interests transaction for any period prior to the
date of such acquisition shall be excluded and (iii) the cumulative effect of a change in accounting principles shall be excluded. 

        "Continuing
Directors" means, as of any date of determination, any member of the Board of Directors of the Company who (i) was a member of such Board of Directors on the date of
this Indenture or (ii) was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of the Board of Directors at
the time of such nomination or election. 

        "Convertible
Preferred Stock" means the 115,000 shares of the Company's 71/4% Convertible Preferred Stock underlying the PIERS. 

        "Corporate
Trust Office of the Trustee" shall be at the address of the Trustee specified in Section 11.02 hereof or such other address as to which the Trustee may give notice in
writing to the Company. 

        "Co-Venture
Partnerships" means (i) Six Flags Over Georgia II, L.P., a Delaware limited partnership and (ii) Texas Flags, Ltd., a Texas limited
partnership. 

        "Credit
Facilities" means, with respect to the Company or any of its Restricted Subsidiaries, one or more debt facilities (including, without limitation, the Six Flags Credit Facility)
or commercial paper facilities with banks or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit, in each case, as amended, restated, modified, renewed, refunded, replaced or
refinanced in whole or in part from time to time. 

        "Currency
Agreement" means in respect of a Person any foreign exchange contract, currency swap agreement or other similar agreement as to which such Person is a party or a beneficiary. 

        "Custodian"
means the Trustee, as custodian with respect to the Notes in global form, or any successor entity thereto. 

        "Debt
to Cash Flow Ratio" means, as of any date of determination, the ratio of (a) the Consolidated Indebtedness of the Company as of such date to (b) the Consolidated Cash
Flow of the Company for the four most recent full fiscal quarters ending immediately prior to such date for which financial statements have been filed with the SEC, determined on a pro forma basis
after giving effect to all acquisitions or Asset Sales made by the Company and its Restricted Subsidiaries from the beginning of such four-quarter period through and including such date of
determination (including any related financing transactions) as if such acquisitions and dispositions had occurred at the beginning of 

4

 

such
four-quarter period. In addition, for purposes of calculating the Debt to Cash Flow Ratio, (i) acquisitions that have been made by the Company or any of its Restricted
Subsidiaries, including through mergers or consolidations and including any related financing transactions, during the four-quarter reference period or subsequent to such reference period
and on or prior to the calculation date shall be deemed to have occurred on the first day of the four-quarter reference period and Consolidated Cash Flow for such reference period shall be
calculated without giving effect to clause (ii) of the proviso set forth in the definition of Consolidated Net Income; and (ii) the Consolidated Cash Flow attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses disposed of prior to the calculation date, shall be excluded. 

        "Default"
means any event that is or with the passage of time or the giving of notice or both would be an Event of Default. 

        "Definitive
Note" means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 2.08 hereof, in the form of Exhibit A hereto
except that such Note shall not bear the Global Note Legend and shall not have the "Schedule of Exchanges of Interests in the Global Note" attached thereto. 

        "Depositary"
means, with respect to the Notes issuable or issued in whole or in part in global form, The Depository Trust Company and any and all successors thereto appointed as
depositary hereunder and having become such pursuant to the applicable provision of this Indenture. 

        "Disqualified
Stock" means any Capital Stock (other than the PIERS and the underlying Convertible Preferred Stock) that, by its terms (or by the terms of any security into which it is
convertible, or for which it is exchangeable, at the option of the holder thereof), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders thereof have the right to require the Company to repurchase such Capital Stock upon the
occurrence of a Change of Control or an Asset Sale shall not constitute Disqualified Stock if the terms of such Capital Stock provide that the
Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07 hereof. 

        "Equity
Interests" means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but, without limiting the generality of the foregoing, excluding any debt
security that is convertible into, or exchangeable for, Capital Stock). 

        "Euroclear"
means Morgan Guaranty Trust Company of New York, Brussels office, as operator of the Euroclear system. 

        "Event
of Default" has the meaning specified in Section 6.01. 

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

        "Exchange
Notes" means the Notes issued in the Exchange Offer pursuant to Section 2.08(f) hereof. 

        "Exchange
Offer" means the exchange and issuance by the Company of a principal amount of New Notes (which shall be registered pursuant to the Exchange Offer Registration Statement) equal
to the outstanding principal amount of Notes that are tendered by such Holders in connection with such exchange and issuance. 

        "Exchange
Offer Registration Statement" means the Registration Statement relating to the Exchange Offer, including the related Prospectus. 

5

 

        "Existing
Indebtedness" means the aggregate principal amount of Indebtedness of the Company and its Restricted Subsidiaries (other than Indebtedness under the Six Flags Credit Facility
and the Notes) in existence on the Issue Date, until such amounts are repaid. 

        "GAAP"
means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in other statements by
another entity that have been approved by a significant segment of the accounting profession, which are in effect from time to time. 

        "Global
Note Legend" means the legend set forth in Section 2.08(g)(ii), which is required to be placed on all Global Notes issued under this Indenture. 

        "Global
Notes" means, individually and collectively, each of the Restricted Global Note and the Unrestricted Global Note, in the form of Exhibit A hereto issued in accordance with
Sections 2.03 and 2.08 hereof. 

        "Government
Securities" means (i) direct obligations of, or obligations guaranteed by, the United States of America for the payment of which guarantee or obligations the full
faith and credit of the United States of America is pledged and (ii) money market funds at least 95% of the assets of which constitute Government Securities of the kinds described in
clause (i) of this definition. 

        "Guarantee"
means a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner (including,
without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof), of all or any part of any Indebtedness. 

        "Hedging
Obligations" means, with respect to any Person, the obligations of such Person under (i) interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements and (ii) other agreements or arrangements designed to protect such Person against fluctuations in interest rates. 

        "Holder"
means a Person in whose name a Note is registered. 

        "Indebtedness"
means, with respect to any Person, any indebtedness of such Person, whether or not contingent: (i) in respect of borrowed money; (ii) evidenced by bonds,
notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof) or; (iii) banker's acceptances; (iv) representing Capital Lease
Obligations; (v) representing the balance deferred and unpaid of the purchase price of any property, except any such balance that constitutes an accrued expense or trade payable or
(vi) representing any Hedging Obligations, if and to the extent any of the foregoing (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of
such Person prepared in accordance with GAAP, as well as all Indebtedness of others secured by a Lien on any asset of such Person (whether or not such Indebtedness is assumed by such Person) and, to
the extent not otherwise included, the guarantee by such Person of any indebtedness of any other Person. The amount of any Indebtedness outstanding as of any date shall be (i) the accreted
value thereof, in the case of any Indebtedness issued with original issue discount, and (ii) the principal amount thereof, together with any interest thereon that is more than 30 days
past due, in the case of
any other Indebtedness. The term "Indebtedness" shall not include (i) any obligations of the Company or any Restricted Subsidiary under the Partnership Parks Agreements, the Marine World
Agreements or the Subordinated Indemnity Agreement or (ii) any Indebtedness of the Co-Venture Partnerships (or the general partners thereof), except to the extent guaranteed by the
Company or any Restricted Subsidiary (other than such general partners). 

        "Indenture"
means this Indenture, as amended or supplemented from time to time. 

6

 

        "Indirect
Participant" means a Person who holds a beneficial interest in a Global Note through a Participant. 

        "Initial
Notes" is defined in the preamble hereto. 

        "Interest
Payment Date" shall have the meaning set forth in paragraph 1 of each Note and, if applicable, any Additional Notes. 

        "Investments"
means, with respect to any Person, all investments by such Person in other Persons (including Affiliates) in the forms of direct or indirect loans (including guarantees of
Indebtedness or other obligations), advances or capital contributions (excluding commission, travel and similar advances to officers and employees and any deposit or advance made pursuant to any
contract entered into in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or
would be classified as investments on a balance sheet prepared in accordance with GAAP. If the Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Equity Interests
of any direct or indirect Restricted Subsidiary of the Company (other than pursuant to the terms of the Partnership Parks Agreements or the Subordinated Indemnity Agreement) such that, after giving
effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company shall be deemed to have made an Investment on the date of any such sale or
disposition equal to the fair market value of the Equity Interests of such Subsidiary not sold or disposed of in an amount determined as provided in the final paragraph of Section 4.07 hereof. 

        "Issue
Date" means the date the Initial Notes are issued. 

        "Legal
Holiday" means a Saturday, a Sunday or a day on which banking institutions in the City of New York or at a place of payment are authorized by law, regulation or executive order to
remain closed. If
a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for the
intervening period. 

        "Letter
of Transmittal" means the letter of transmittal, or its electronic equivalent in accordance with the Applicable Procedures, to be prepared by the Company and sent to all Holders
of the Initial Notes or any Additional Notes for use by such Holders in connection with an Exchange Offer. 

        "Lien"
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction). 

        "Liquidated
Damages" means all liquidated damages then owing pursuant to Section 5 of the Registration Rights Agreement. 

        "Marine
World" means the Marine World Joint Powers Authority or any successor thereto. 

7

   
        "Marine World Agreements" means: 

	(1)
	the
Parcel Lease, dated November 7, 1997, between Marine World and Park Management Corp. ("PMC");

	(2)
	the
Reciprocal Easement Agreement, dated November 7, 1997, between Marine World and PMC;

	(3)
	the
Revenue Sharing Agreement, dated November 7, 1997, among Marine World, PMC and the Redevelopment Agency of the City of Vallejo (the "Agency");

	(4)
	the
Purchase Option Agreement, dated as of August 29, 1997, among Marine World, the Agency, the City of Vallejo and PMC; and

	(5)
	the
1997 Management Agreement, dated as of February 1, 1997, between Marine World and PMC, as amended; 

in
each case, as the same may be modified or amended from time to time after the Issue Date, provided such modification or amendment does not adversely
affect the interests of the Holders in any material respects. 

        "Net
Income" means, with respect to any Person, the net income (loss) of such Person, determined in accordance with GAAP and before any reduction in respect of preferred stock dividends,
excluding, however, (i) any gain or loss, together with any related provision for taxes on such gain or loss, realized in connection with any Asset Sale (including, without limitation,
dispositions pursuant to sale and
leaseback transactions) and (ii) any extraordinary gain or loss, together with any related provision for taxes on such extraordinary gain or loss. 

        "Net
Proceeds" means the aggregate cash proceeds received by the Company or any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of the direct costs relating to such Asset Sale (including, without limitation,
legal, accounting and investment banking fees, and sales commissions) and any relocation expenses incurred as a result thereof, taxes paid or payable as a result thereof (after taking into account any
available tax credits or deductions and any tax sharing arrangements), amounts required to be applied to the repayment of Indebtedness secured by a Lien on the asset or assets that were the subject of
such Asset Sale and any reserve for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP. 

        "New
Notes" is defined in the preamble hereto. 

        "Non-Recourse
Debt" means Indebtedness (i) as to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind
(including any undertaking, agreement or instrument that would constitute Indebtedness), (b) is directly or indirectly liable (as a guarantor or otherwise), or (c) constitutes the
lender; (ii) no default with respect to which (including any rights that the holders thereof may have to take enforcement action against an Unrestricted Subsidiary) would permit (upon notice,
lapse of time or both) any holder of any other Indebtedness of the Company or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment thereof to be
accelerated or payable prior to its stated maturity; and (iii) as to which the lenders have been notified in writing that they will not have any recourse to the stock or assets of the Company
or any of its Restricted Subsidiaries. 

        "Notes"
has the meaning assigned to it in the preamble hereto. 

        "Obligations"
means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness. 

8

 

        "Officer"
means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the
Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice President of such Person. 

        "Officers'
Certificate" means a certificate signed on behalf of the Company by two Officers of the Company, one of whom must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of the Company, that meets the requirements of Section 11.05 hereof. 

        "Opinion
of Counsel" means an opinion from legal counsel that meets the requirements of Section 11.05 hereof. The counsel may be an employee of or internal or other counsel to the
Company or any Subsidiary of the Company. 

        "Participant"
means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect
to The Depository Trust Company, shall include Euroclear and Clearstream). 

        "Partnership
Parks Agreements" means: 

	(1)
	the
Overall Agreement, dated as of February 15, 1997, among Six Flags Fund, Ltd. (L.P.), Salkin Family Trust, SFG, Inc., SFG-I, LLC,
SFG-II, LLC, Six Flags Over Georgia, Ltd., SFOG II, Inc., SFOG II Employee, Inc., SFOG Acquisition A, Inc., SFOG Acquisition B, L.L.C., Six Flags Over
Georgia, Inc., Six Flags Services of Georgia, Inc., Six Flags Theme Parks Inc. and Six Flags Entertainment Corporation and the Related Agreements (as defined therein); and

	(2)
	the
Overall Agreement, dated as of November 24, 1997, among Six Flags Over Texas Fund, Ltd., Flags' Directors, L.L.C., FD-II, L.L.C., Texas
Flags, Ltd., SFOT Employee, Inc., SFOT Acquisition I, Inc., SFOT Acquisition II, Inc., Six Flags Over Texas, Inc., Six Flags Theme Parks Inc. and Six Flags
Entertainment Corporation and the Related Agreements (as defined therein); 

in
each case, as the same may be modified or amended from time to time after the Issue Date, provided such modification or amendment does not adversely
affect the interests of the Holders in any material respect. 

        "Permitted
Business" means any business related, ancillary or complementary to the businesses of the Company and its Restricted Subsidiaries on the date of this Indenture. 

        "Permitted
Investments" means an Investment by the Company or any Restricted Subsidiary in (i) cash or Cash Equivalents, (ii) the Company, a Restricted Subsidiary or a
Person which will, upon the making of such Investment, become a Restricted Subsidiary; provided, however, that the primary business of such Restricted
Subsidiary is a Permitted Business; (iii) another Person if as a result of such Investment such other Person is merged or consolidated with or into, or transfers or conveys all or substantially
all its assets (or the assets of any business unit or division of such Person) to, the Company or a Restricted Subsidiary; provided, however, that such
Person's (or such unit's or division's) primary business is a Permitted Business; (iv) another Person if the aggregate amount of all Investments in all such other Persons does not exceed
$25.0 million at any one time outstanding (with each Investment being valued as of the date made and without giving effect to subsequent changes in value); provided,
however, that such Person's primary business is a Permitted Business; (v) promissory notes received as consideration for an Asset Sale which are secured by a Lien on the
asset subject to such Asset Sale; provided that the aggregate amount of all such promissory notes at any one time outstanding does not exceed
$5.0 million; (vi) non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 4.10 hereof; (vii) assets acquired solely
in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Company; (viii) receivables 

9

 

owing
to the Company or any Restricted Subsidiary, if created or acquired in the ordinary course of business; (ix) payroll, travel and similar advances that are made in the ordinary course of
business; (x) loans or advances to employees made in the ordinary course of business consistent with past practices of the Company or such Restricted Subsidiary; (xi) stock, obligations
or securities received in settlement of debts created in the ordinary course of business and owing to the Company or any Restricted Subsidiary or in satisfaction of judgments; and (xii) other
Investments in any Person at any time outstanding (each such Investment being measured on the date each such Investment was made and without giving effect to subsequent changes in value) not to exceed
$150 million. 

        "Permitted
Liens" means (i) Liens to secure Indebtedness of a Restricted Subsidiary of the Company that was permitted to be incurred under this Indenture; (ii) Liens
existing on the Issue Date; (iii) Liens on property or shares of Capital Stock of another Person at the time such other Person becomes a Restricted Subsidiary of such Person;  provided, however,
that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such other Person becoming a
Restricted Subsidiary; provided, further, however, that such Lien may not extend to any other property owned by such Person or any of its Restricted
Subsidiaries; (iv) Liens on property at the time such Person or any of its Restricted Subsidiaries acquires the property, including any acquisition by means of a merger or consolidation with or
into such Person or a Restricted Subsidiary of such Person; provided, however, that such Liens are not created, incurred or assumed in connection with,
or in contemplation of, such acquisition; provided, further, however, that the Liens may not extend to any other property owned by such Person or any of
its Restricted Subsidiaries; (v) Liens securing Indebtedness or other obligations; of a Restricted Subsidiary of such Person owing to such Person or a Restricted Subsidiary of such Person;
(vi) Liens securing Hedging Obligations so long as the related Indebtedness is, and is permitted to be under this Indenture, secured by a Lien on the same type of property securing such Hedging
Obligations; (vii) Liens to secure any Permitted Refinancing Indebtedness; provided, however, that (x) such new Lien shall be limited to
all or part of the same property that secured the original Indebtedness (plus improvements on such property) and (y) the Indebtedness secured by such Lien at such time is not increased to any
amount greater than the sum of: (A) the outstanding principal amount or, if greater, committed amount of the Indebtedness refinanced at the time the original Lien became a Permitted Lien; and
(B) an amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding, extension, renewal or replacement; (viii)(a) mortgages, liens, security
interests, restrictions or encumbrances that have been placed by any developer, landlord or other third party on property over which the Company or any Restricted Subsidiary of the Company has
easement rights or on any real property leased by the Company or any Restricted Subsidiary of the Company and subordination or similar agreements relating thereto and (b) any condemnation or
eminent domain proceedings affecting any real property; (ix) pledges or deposits by such Person under workmen's compensation laws, unemployment insurance laws or similar legislation, or good
faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations
of such Person or deposits of cash or United States government bonds to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import duties or
for the payment of rent, in each case incurred in the ordinary course of business; (x) Liens imposed by law, such as carriers', warehousemen's and mechanic's Liens, in each case for sums not
yet due or being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with respect to which such Person shall then be proceeding
with an appeal or other proceedings for review; (xi) Liens for property taxes not yet due or payable or subject to penalties for non-payment or which are being contested in good
faith and by appropriate proceedings; (xii) minor survey exceptions, minor encumbrances, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines,
telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real properties or Liens incidental to the conduct of the business of such Person or to the
ownership of its properties which 

10

 

were
not incurred in connection with Indebtedness and which do not in the aggregate materially impair the use of such properties in the operation of the business of such Person; (xiii) Liens
securing Purchase Money Indebtedness; provided, however, that (a) the Indebtedness secured by such Liens is otherwise permitted to be incurred
under this Indenture, (b) the principal amount of any Indebtedness secured by any such Lien does not exceed the cost of assets or property so acquired or constructed and (c) the amount
of Indebtedness secured by any such Lien is not subsequently increased; (xiv) Liens arising out of the transactions contemplated by the Partnership Parks Agreements, the Marine World
Agreements,
the Subordinated Indemnity Agreement or the Six Flags Agreement; and (xv) Liens incurred in the ordinary course of business of the Company or any Subsidiary of the Company with respect to
obligations that do not exceed $20.0 million at any one time outstanding. 

        "Permitted
Refinancing Indebtedness" means any Indebtedness of the Company or any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to extend,
refinance, renew, replace, defease or refund other Indebtedness of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness);  provided that: (i) the principal amount
(or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the
principal amount of (or accreted value, if applicable), plus accrued interest on, the Indebtedness so extended, refinanced, renewed, replaced, defeased
or refunded (plus the amount of reasonable expenses, including premiums, incurred in connection therewith); (ii) such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the
Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; (iii) if the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded is subordinated
in right of payment to the Notes, such Permitted Refinancing Indebtedness has a final maturity date later than the final maturity date of, and is subordinated in right of payment to, the Notes on
terms at least as favorable to the Holders as those contained in the documentation governing the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; and (iv) such
Indebtedness is incurred either by the Company or by a Restricted Subsidiary. 

        "Person"
means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or agency or political
subdivision thereof (including any subdivision or ongoing business of any such entity or substantially all of the assets of any such entity, subdivision or business). 

        "PIERS"
means the Company's 11,500,000 Preferred Income Equity Redeemable Shares issued on January 23, 2001. 

        "Private
Placement Legend" means the legend set forth in Section 2.08(g)(i) to be placed on all Notes issued under this Indenture except where otherwise permitted by the
provisions of this Indenture. 

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

        "Public
Equity Offering" means an underwritten primary public offering of Equity Interests (other than Disqualified Stock) of the Company pursuant to an effective registration statement
under the Securities Act. 

        "Purchase
Money Indebtedness" means Indebtedness (i) consisting of the deferred purchase price of property, conditional sale obligations, obligations under any title retention
agreement and other purchase money obligations, in each case where the maturity of such Indebtedness does not exceed the anticipated useful life of the asset being financed; and (ii) incurred
to finance the acquisition by the 

11

 

Company
or a Restricted Subsidiary of the Company of such asset, including additions and improvements; provided, however, that any Lien arising in
connection with this type of Indebtedness shall be limited to the specified asset being financed or, in the case of real property or fixtures, including additions and improvements, the real property
on which such asset is attached; and provided further, that such Indebtedness is incurred within 180 days after such acquisition, addition or
improvement by the Company or Restricted Subsidiary of such asset. 

        "QIB"
means a "qualified institutional buyer" as defined in Rule 144A. 

        "Registration
Rights Agreement" means the Registration Rights Agreement, dated as of the date hereof, among the Company, Lehman Brothers Inc., Bear, Stearns &
Co. Inc., Citigroup Global Markets Inc., Banc of America Securities LLC, BNY Capital Markets, Inc., Credit Lyonnais Securities (USA) Inc. and Allen & Company LLC as
such agreement may be amended, modified or supplemented from time to time and, with respect to any Additional Notes, one or more registration rights agreements between the Company and the other
parties thereto, as such agreement(s) may be amended, modified or supplemented from time to time, relating to rights given by the Company to the purchasers of Additional Notes to register such
Additional Notes, or exchange such Additional Notes for registered notes, under the Securities Act. 

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

        "Regular
Record Date" for the interest payable on any Interest Payment Date means the applicable date specified as a "Record Date" on the face of the Note. 

        "Regulation
S" means Regulation S promulgated under the Securities Act. 

        "Regulation S
Global Note" means a Global Note in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on
behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of the Notes initially sold in reliance on Rule 903 of
Regulation S. 

        "Responsible
Officer" when used with respect to the Trustee, means (a) any officer within the corporate trust department of the Trustee, including any vice president, assistant
vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person's knowledge of and familiarity with the particular subject and (b) who shall have
direct responsibility for the administration of this Indenture. 

        "Restricted
Definitive Note" means a Definitive Note bearing the Private Placement Legend. 

        "Restricted
Global Note" means a Global Note bearing the Private Placement Legend. 

        "Restricted
Investment" means an Investment other than a Permitted Investment. 

        "Restricted
Period" means the 40-day period as defined in Regulation S. 

        "Restricted
Subsidiary" of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary. 

        "Rule 144"
means Rule 144 promulgated under the Securities Act. 

        "Rule 144A"
means Rule 144A promulgated under the Securities Act. 

12

 

        "Rule 903"
means Rule 903 promulgated under the Securities Act. 

        "Rule 904"
means Rule 904 promulgated the Securities Act. 

        "SEC"
means the Securities and Exchange Commission. 

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

        "Senior
Debt" means (i) all Indebtedness of the Company or any Restricted Subsidiary outstanding under Credit Facilities and all Hedging Obligations with respect thereto;
(ii) any other Indebtedness of the Company or any Restricted Subsidiary permitted to be incurred under the terms of this Indenture, unless the instrument under which such Indebtedness is
incurred expressly provides that it is subordinated in right of payment to the Notes; and (iii) all Obligations with respect to the items in the preceding clauses (i) and (ii).
Notwithstanding anything to the contrary in the preceding, Senior Debt will not include (i) any liability for federal, state, local or other taxes owed or owing by the Company; (ii) any
Indebtedness of the Company to any of its Subsidiaries or other Affiliates; (iii) any trade payables; or (iv) the portion of any Indebtedness that is incurred in violation of this
Indenture. 

        "Shelf
Registration Statement" means the Shelf Registration Statement as defined in the Registration Rights Agreement. 

        "Significant
Subsidiary" means any Subsidiary that would be a "significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such regulation is in effect on the date of this Indenture. 

        "Six
Flags Agreement" means that certain Agreement and Plan of Merger dated as of February 9, 1998, by and among Premier Parks, Inc. (predecessor to the Company), Premier
Parks Holdings Corporation, Premier Parks Merger Corporation, a certain group of sellers listed therein and Six Flags Entertainment Corporation (predecessor to Six Flags Operations, Inc.). 

        "Six
Flags Credit Facility" means the $1.0 billion amended and restated credit agreement, dated as of July 8, 2002, among Six Flags, Inc., Six Flags
Operations Inc., Six Flags Theme Parks Inc., certain foreign subsidiaries from time to time parties thereto, the lenders party thereto, Lehman Commercial Paper Inc., as
administrative agent, and the other agents named therein, as the same may be modified or amended from time to time. 

        "Specified
Amount" means, as of any date, the Consolidated Cash Flow of the Company for the most recently ended four-quarter period for which financial statements have been
filed with the SEC determined on a pro forma basis after giving effect to all acquisitions or Asset Sales made by
the Company and its Restricted Subsidiaries from the beginning of such four-quarter period through and including such date of determination (including any related financing transactions)
as if such acquisitions and dispositions had occurred at the beginning of such four-quarter period. 

        "Stated
Maturity" means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to
be paid in the original documentation governing such Indebtedness, and shall not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof. 

        "Strategic
Equity Investment" means a cash contribution to the common equity capital of the Company or a purchase from the Company of common Equity Interests (other than Disqualified
Stock), in either case by or from a Strategic Equity Investor and for aggregate cash consideration of at least $25.0 million. 

        "Strategic
Equity Investor" means, as of any date, any Person (other than an Affiliate of the Company) engaged in a Permitted Business which, as of the day immediately before such date,
had a Total Equity Market Capitalization of at least $1.0 billion. 

13

 

        "Subordinated
Indemnity Agreement" means the Subordinated Indemnity Agreement, dated as of April 1, 1998, among the Company, Six Flags Entertainment Corporation and its
subsidiaries, Time Warner Inc., Time Warner Entertainment Company, L.P. and TW-SPV Co., as the same may be modified or amended from time to time after April 1, 1998, provided
such modification or amendment does not adversely affect the interests of the Holders in any material fashion. 

        "Subsidiary"
means with respect to any Person (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of that Person (or a combination thereof); provided that, notwithstanding the foregoing, each of SFOG A
Holdings, SFOG B Holdings, SFOT I Holdings and SFOT II Holdings will be deemed to be a Subsidiary of the Company for all purposes under the Indenture so long as the Subordinated Indemnity Agreement
and the Beneficial Share Assignment Agreement will each be in full force and effect and no default or event of default will have occurred thereunder, and (ii) any partnership or limited
liability company (a) the sole general partner or the managing general partner (or equivalent) of which is such Person or a Subsidiary of such Person; or (b) the only general partners of
which are such Person or one or more Subsidiaries of such Person (or any combination thereof). 

        "TIA"
means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date on which this Indenture is qualified under the TIA. 

        "Total
Equity Market Capitalization" of any Person means, as of any day of determination, the sum of (i) the product of (A) the aggregate number of outstanding primary
shares of (x) common stock of such Person on such day (which shall not include any options or warrants on, or securities convertible or exchangeable into, shares of common stock of such Person)
and (y) preferred stock of such Person on such day (to the extent listed on a national securities exchange or the Nasdaq National Market System) multiplied by (B) the average closing
price of such common stock or such preferred stock, as the case may be, listed on a national securities exchange or the Nasdaq National Market System over the 20 consecutive business days immediately
preceding such day, plus (ii) the liquidation value of any outstanding shares of preferred stock of such Person on such day not listed on a national securities exchange or the Nasdaq National
Market System. 

        "Transfer
Restricted Securities" means each Note, until the earliest to occur of (a) the date on which such Note has been exchanged by a person other than a Broker-Dealer for an
Exchange Note in the Exchange Offer, (b) following the exchange by a Broker-Dealer in the Exchange Offer of such Note for one or more Exchange Notes, the date on which such Exchange Notes are
sold to a purchaser who receives from such Broker-Dealer on or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer Registration Statement, (c) the date on
which such Note has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement or (d) the date on which such Note is eligible to be
distributed to the public pursuant to Rule 144 under the Securities Act. 

        "Trustee"
means the party named as such in the preamble hereto until a successor replaces it in accordance with the applicable provisions of this Indenture and thereafter means the
successor serving hereunder. 

        "Unrestricted
Definitive Note" means one or more Definitive Notes that do not bear and are not required to bear the Private Placement Legend. 

        "Unrestricted
Global Note" means a permanent Global Note in the form of Exhibit A attached hereto that bears the Global Note Legend and that has the "Schedule of Exchanges of
Interests in the Global Note" attached thereto, and that is deposited with or on behalf of and registered in the name of the Depositary, representing Notes that do not bear the Private Placement
Legend. 

14

 

        "Unrestricted
Subsidiary" means any Subsidiary (other than Six Flags Operations Inc. or Six Flags Theme Parks Inc. or any successor to either of them) that is designated by
the Board of Directors as an Unrestricted Subsidiary pursuant to a Board Resolution; but only to the extent that such Subsidiary: (a) has no Indebtedness other than Non-Recourse
Debt; (b) is not party to any agreement, contract, arrangement or understanding with the Company or any Restricted Subsidiary of the Company unless the terms of any such agreement, contract,
arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Company;
(c) is a Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation (x) to subscribe for additional Equity Interests or
(y) to maintain or preserve such Person's financial condition or to cause such Person to achieve any specified levels of operating results; (d) has not guaranteed or otherwise directly
or indirectly provided credit support for any Indebtedness of the Company or any of its Restricted Subsidiaries; and (e) has at least one director on its board of directors that is not a
director or executive officer of the Company or any of its Restricted Subsidiaries and has at least one executive officer that is not a director or executive officer of the Company or any of its
Restricted Subsidiaries. Any such designation by the Board of Directors shall be evidenced to the Trustee by filing with the Trustee a certified copy of the Board Resolution giving effect to such
designation and an Officers' Certificate certifying that such designation complied with the foregoing conditions and was permitted by Section 4.07 hereof. If, at any time, any Unrestricted
Subsidiary would fail to meet the foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness
of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the Company as of such date (and, if such Indebtedness is not permitted to be incurred as of such date under
Section 4.09 hereof, the Company shall be in default of such covenant). The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided that such designation shall be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company of any
outstanding Indebtedness of such Unrestricted Subsidiary and such designation shall only be permitted if (i) such Indebtedness is permitted under Section 4.09 hereof, calculated on a pro
forma basis as if such designation had occurred at the beginning of the four-quarter reference period, and (ii) no Default or Event of Default would be in existence following such
designation. 

        "U.S.
Person" means a U.S. person as defined in Rule 902(a) under the Securities Act. 

        "Voting
Stock" of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote by the holder thereof in the election of the Board of Directors
(or comparable body) of such Person. 

        "Weighted
Average Life to Maturity" means, when applied to any Indebtedness at any date, the number of years obtained by dividing (i) the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by
(b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment, by (ii) the then outstanding principal
amount of such Indebtedness. 

        "Wholly
Owned Restricted Subsidiary" of any Person means a Restricted Subsidiary of such Person all of the outstanding Capital Stock or other ownership interests of which (other than
directors' qualifying shares) shall at the time be owned by such Person or by one or more Wholly Owned Restricted Subsidiaries of such Person or by such Person and one or more Wholly Owned Restricted
Subsidiaries of such Person. 

15

  

        Section 1.02.    Other Definitions.    

	Term
 
	 	Defined in

Section

	"Additional Notes"	 	2.01
	"Affiliate Transaction"	 	4.11
	"Asset Sale Offer"	 	4.10
	"Authentication Order"	 	2.04
	"Basket Period"	 	4.07
	"Change of Control Offer"	 	4.15
	"Change of Control Payment"	 	4.15
	"Change of Control Payment Date"	 	4.15
	"Covenant Defeasance"	 	8.03
	"DTC"	 	2.05
	"Event of Default"	 	6.01
	"Excess Proceeds"	 	4.10
	"incur"	 	4.09
	"Legal Defeasance"	 	8.02
	"Offer Amount"	 	3.09
	"Offer Period"	 	3.09
	"Paying Agent"	 	2.05
	"Permitted Debt"	 	4.09
	"Purchase Date"	 	3.09
	"Registrar"	 	2.05
	"Restricted Payments"	 	4.07

        Section
1.03.    One Class of Securities.    The Initial Notes and the New Notes shall vote and consent together on
all matters as one class and none of the Initial Notes or the New Notes shall have the right to vote or consent as a separate class on any matter. 

        Section
1.04.    Trust Indenture Act.    Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. 

        The
following TIA terms used in this Indenture have the following meanings: 

        "indenture
securities" means the Notes; 

        "indenture
security Holder" means a Holder of a Note; 

        "indenture
to be qualified" means this Indenture; 

        "indenture
trustee" or "institutional trustee" means the Trustee; and 

        "obligor"
on the Notes means the Company and any successor obligor upon the Notes. 

        All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to
them. 

        Section
1.05.    Rules of Construction.    Unless the context otherwise requires: 

	(1)
	a
term has the meaning assigned to it;

	(2)
	an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

	(3)
	"or"
is not exclusive;

	(4)
	words
in the singular include the plural, and in the plural include the singular; 

16

 

	(5)
	provisions
apply to successive events and transactions; and

	(6)
	references
to sections of or rules under the Securities Act shall be deemed to include substitute, replacement of successor sections or rules adopted by the SEC from time to time. 

 
 

ARTICLE II
  THE NOTES    
    

        Section
2.01.    Issuance of Additional Notes.    The Company may, subject to Section 4.09 hereof, issue
additional Notes ("Additional Notes") under this Indenture which will have identical terms as the Initial Notes issued on the Issue Date other than with respect to the date of issuance, issue price,
first payment of interest and rights under a related Registration Rights Agreement, if any. The Initial Notes issued on the Issue Date, any Additional Notes and all Exchange Notes issued in exchange
therefor shall be treated as a single class for all purposes under this Indenture. 

        With
respect to any Additional Notes, the Company shall set forth in a Board Resolution and an Officers' Certificate, a copy of each of which shall be delivered to the Trustee, the
following information: 

	(a)
	the
aggregate principal amount of such Additional Notes to be authenticated and delivered pursuant to this Indenture;

	(b)
	the
issue price, the issue date and the CUSIP number of such Additional Notes; and

	(c)
	whether
such Additional Notes shall be subject to the restrictions on transfer set forth in Section 2.08 hereof relating to Restricted Global Notes and Restricted Definitive
Notes. 

        Section
2.02.    Payments by Company by Wire Transfer.    The Company shall make all interest, premium, if any, and
principal payments by wire transfer to any Holder who shall have given written directions to the Company to make such payments by wire transfer pursuant to the wire transfer instructions supplied to
the Company by such Holder. 

        Section
2.03.    Form and Dating.    The terms and provisions contained in the Notes shall constitute, and are hereby
expressly made, a part of this Indenture and the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.
However, to the extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling. Notes shall be dated the
date of their authentication. 

        (a)    Global Notes.    

        Notes
issued in global form shall be substantially in the form of Exhibit A attached hereto (including the Global Note Legend thereon and the "Schedule of Exchanges of Interests
in the Global Note" attached thereto). Notes issued in definitive form shall be substantially in the form of Exhibit A attached hereto (but without the Global Note Legend thereon and without
the "Schedule of Exchanges of Interests in the Global Note" attached thereto). Each Global Note shall represent such of the outstanding Notes as shall be specified therein and each shall provide that
it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time
to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal
amount of outstanding Notes represented thereby shall be made by the Trustee or the Note Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.08 hereof. 

17

 

        (b)    Euroclear and Clearstream Procedures Applicable.    

        The
provisions of the "Operating Procedures of the Euroclear System" and "Terms and Conditions Governing Use of Euroclear" and the "General Terms and Conditions of Clearstream" and
"Customer Handbook" of Clearstream shall be applicable to transfers of beneficial interests in the Regulation S Global Notes that are held by Participants through Euroclear or Clearstream. 

        Section
2.04.    Execution and Authentication.    An Officer shall sign the Notes for the Company by manual or
facsimile signature. 

        If
an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note shall nevertheless be valid. 

        A
Note shall not be valid until authenticated by the manual signature of the Trustee. The signature shall be conclusive evidence that the Note has been authenticated under this
Indenture. 

        The
Trustee shall, upon a written order of the Company signed by an Officer (an "Authentication Order"), authenticate Notes for original
issue up to the aggregate principal amount stated in paragraph 4 of the Notes. The aggregate principal amount of Notes outstanding at any time may not exceed such amount except as provided in
Section 2.09 hereof. 

        The
Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the
Company. 

        Section
2.05.    Registrar and Paying Agent.    The Company shall maintain an office or agency where Notes may be
presented for registration of transfer or for exchange ("Registrar") and an office or agency where Notes may be presented for payment
("Paying Agent"). The Registrar shall keep a register of the Notes and of their transfer and exchange. The Company may appoint one or more
co-registrars and one or more additional paying agents. The term "Registrar" includes any co-registrar and the term "Paying Agent" includes any additional paying agent. The
Company may change any Paying Agent or Registrar without notice to any Holder. The Company shall notify the Trustee in writing of the name and address of any Agent not a party to this Indenture. If
the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may act as Paying Agent or Registrar. 

        The
Company initially appoints The Depository Trust Company ("DTC") to act as Depositary with respect to the Global Notes. 

        The
Company initially appoints the Trustee to act as the Registrar and Paying Agent and to act as Note Custodian with respect to the Global Notes. 

        Section
2.06.    Paying Agent to Hold Money in Trust.    The Company shall require each Paying Agent other than the
Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal, premium or Liquidated
Damages, if any, or interest on the Notes, and will notify the Trustee of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if
other than the Company or a Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the
benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee shall serve as Paying Agent for the Notes. 

18

 

        Section
2.07    Holder Lists.    The Trustee shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of all Holders and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish to the
Trustee at least seven Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders and the Company shall otherwise comply with TIA
§ 312(a). 

        Section
2.08    Transfer and Exchange.    (a) Transfer and Exchange of Global
Notes.    A Global Note may not be transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or
to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged by the Company
for Definitive Notes if (i) the Company delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor Depositary is not appointed by the Company within 120 days after the date of such notice from the Depositary,
(ii) the Company in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to the
Trustee or (iii) there shall have occurred and be continuing a Default or Event of Default with respect to the Notes. Upon the occurrence of any of the preceding events in (i), (ii) or
(iii) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.09 and 2.12 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.08 or Section 2.09
or 2.12 hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this
Section 2.08(a), however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.08(b), (c) or (f) hereof. 

        (b)    Transfer and Exchange of Beneficial Interests in the Global Notes.    The transfer and exchange of beneficial
interests in the Global Notes shall be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global
Notes shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities Act. Transfers of beneficial interests in the Global Notes also shall
require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following subparagraphs, as applicable: 

        (i)    Transfer of Beneficial Interests in the Same Global Note.    Beneficial interests in any Restricted Global Note
may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the transfer restrictions set forth in the Private
Placement Legend and any Applicable Procedures; provided, however, that prior to the expiration of the Restricted Period, transfers of beneficial
interests in the Regulation S Global Note may not be made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser or a "distributor" (as defined in
Rule 902(d) of Regulation S)). Beneficial interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. Except as may be required by Applicable Procedures, no written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in
this Section 2.08(b)(i). 

        (ii)   All Other Transfers and Exchanges of Beneficial Interests in Global Notes.    In connection with all transfers
and exchanges of beneficial interests that are not subject to Section 2.08(b)(i) above, the transferor of such beneficial interest must deliver to the Registrar either (A) (1) a
written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be 

19

 

credited
a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be credited with such increase or (B) if permitted under Section 2.08(a) hereof, (1) a written order from a
Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note
shall be registered to effect the transfer or exchange referred to in (B)(1) above; provided that in no event shall Definitive Notes be issued upon the
transfer or exchange of beneficial interests in the Regulation S Global Note prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any
certificates pursuant to Rule 903 under the Securities Act. Upon consummation of an Exchange Offer by the Company in accordance with Section 2.08(f) hereof, the requirements of this
Section 2.08(b)(ii) shall be deemed to have been satisfied upon receipt by the Registrar of the instructions contained in the Letter of Transmittal delivered by the Holder of such
beneficial interests in the Restricted Global Notes. Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the
Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.08(h) hereof. 

        (iii)  Transfer of Beneficial Interests in a Restricted Global Note to Another Restricted Global Note.    A
beneficial interest in any Restricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.08(b)(ii) above and the Registrar receives the following: 

	(A)
	if
the transferee will take delivery in the form of a beneficial interest in the 144A Global Note, then the transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof; and

	(B)
	if
the transferee will take delivery in the form of a beneficial interest in the Regulation S Global Note, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (2) thereof. 

        (iv)  Transfer and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial Interests in an Unrestricted Global
Note.    A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Note or
transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note only if the exchange or transfer complies with the requirements of
Section 2.08(b)(ii) above and: 

	(A)
	such
exchange or transfer is effected pursuant to an Exchange Offer in accordance with a Registration Rights Agreement and the holder of the beneficial interest to be transferred, in
the case of an exchange, or the transferee, in the case of a transfer, makes any and all certifications in the applicable Letter of Transmittal or is deemed to have made such certifications if
delivery is made through the Applicable Procedures as may be required by the Registration Rights Agreement;

	(B)
	such
transfer is effected pursuant to a Shelf Registration Statement in accordance with a Registration Rights Agreement;

	(C)
	such
transfer is effected by a participating Broker-Dealer pursuant to an Exchange Offer Registration Statement in accordance with a Registration Rights Agreement; or 

20

 

	(D)
	the
Registrar receives the following:

	(1)
	if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial interest in an Unrestricted Global Note, a
certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or

	(2)
	if
the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 

and,
in each such case set forth in this subparagraph (D), if the Registrar so requests, or the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar
to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required
in order to maintain compliance with the Securities Act. 

        If
any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Note has not yet been issued, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.04 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to
the aggregate principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above. 

        (v)   Transfer or Exchange of Beneficial Interests in Unrestricted Global Notes for Beneficial Interests in Restricted Global Notes
Prohibited.    Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of,
beneficial interests in a Restricted Global Note. 

        (c)    Transfer or Exchange of Beneficial Interests in Global Notes for Definitive Notes.    

        (i)    Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes.    Subject to
Section 2.08(a) hereof, if any holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation: 

	(A)
	if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note, a certificate from such holder in
the form of Exhibit C hereto, including the certifications in item (2)(a) thereof;

	(B)
	if
such beneficial interest is being transferred to a QIB in accordance with Rule 144A under the Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof;

	(C)
	if
such beneficial interest is being transferred to a "non-U.S. Person" (as defined in Rule 902(k) of Regulation S) in an offshore transaction in accordance
with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

	(D)
	if
such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144 under the
Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 

21

 

	(E)
	if
such beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(b) thereof; or

	(F)
	if
such beneficial interest is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (3)(c) thereof 

the
Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.08(h) hereof, and the Company shall execute and upon receipt
of an Authentication Order in accordance with Section 2.04 hereof, the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Restricted Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.08(c)(i) shall be registered in such
name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant
or Indirect Participant. The Trustee shall deliver such Restricted Definitive Notes to the Persons in whose names such Notes are so registered. Any Restricted Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this Section 2.08(c)(i) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained
therein. 

        (ii)   Notwithstanding
Sections 2.08(c)(i)(A) and (C) hereof, a beneficial interest in the Regulation S Global Note may not be exchanged for a Definitive Note or
transferred to a Person who takes delivery thereof in the form of a Definitive Note prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any
certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act, except in the case of a transfer pursuant to an exemption from the registration requirements of the Securities
Act other than Rule 903 or Rule 904. 

        (iii)  Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.Subject to Section 2.08(a)
hereof, a holder of a beneficial interest in a Restricted Global Note may exchange such beneficial
interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note only if: 

	(A)
	such
exchange or transfer is effected pursuant to an Exchange Offer in accordance with a Registration Rights Agreement and the holder of such beneficial interest, in the case of an
exchange, or the transferee, in the case of a transfer, makes any and all certifications in the applicable Letter of Transmittal;

	(B)
	such
transfer is effected pursuant to a Shelf Registration Statement in accordance with a Registration Rights Agreement;

	(C)
	such
transfer is effected by a participating Broker-Dealer pursuant to an Exchange Offer Registration Statement in accordance with a Registration Rights Agreement; or

	(D)
	the
Registrar receives the following:

	(1)
	if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for an Unrestricted Definitive Note, a certificate from such holder
in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof; or

	(2)
	if
the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the 

22

 

form
of an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 

and,
in each such case set forth in this subparagraph (D), if the Registrar so requests, or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the
Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that
the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 

Upon
satisfaction of the conditions of any of the clauses of this Section 2.08(c)(iii), the Company shall execute, and, upon receipt of an Authentication Order in accordance with
Section 2.04 hereof, the Trustee shall authenticate and deliver to the Person designated in the instructions an Unrestricted Definitive Note in the appropriate principal amount, and the Trustee
shall cause the aggregate principal amount of the applicable Restricted Global Note to be reduced in a corresponding amount pursuant to Section 2.08(h) hereof. 

        (iv)  Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes.    Subject to
Section 2.08(a) hereof, if any holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for an Unrestricted Definitive Note or to transfer
such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note, then, upon satisfaction of the applicable conditions set forth in
Section 2.08(b)(ii) hereof, the Trustee shall cause the aggregate principal amount of the applicable Unrestricted Global Note to be reduced accordingly pursuant to Section 2.08(h)
hereof, and the Company shall execute and, upon receipt of an Authentication Order in accordance with Section 2.04 hereof, the Trustee shall authenticate and deliver to the person designated in
the instructions an Unrestricted Definitive Note in the appropriate principal amount. Any Unrestricted Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.08(c)(iv) shall be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar
through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Unrestricted Definitive Notes to the Persons in whose names such Notes are so
registered. Any Unrestricted Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.08(c)(iv) shall not bear the Private Placement Legend. 

        (d)    Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes.    

        (i)    Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.    If any Holder of a
Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a Person who takes delivery thereof
in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar of the following documentation: 

23

  

	(A)
	if
the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note, a certificate from such Holder in the form of
Exhibit C hereto, including the certifications in item (2)(b) thereof;

	(B)
	if
such Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (1) thereof;

	(C)
	if
such Restricted Definitive Note is being transferred to a "non-U.S. Person" (as defined in Rule 902(k) of Regulation S) in an offshore transaction in
accordance with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

	(D)
	if
such Restricted Definitive Note is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a
certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

	(E)
	if
such Restricted Definitive Note is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(b) thereof; or

	(F)
	if
such Restricted Definitive Note is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(c) thereof, 

the
Trustee shall cancel the Restricted Definitive Note, increase or cause to be increased the aggregate principal amount of, in the case of clause (A) above, the appropriate Restricted Global
Note, in the
case of clause (B) above, the 144A Global Note, and in the case of clause (C) above, the Regulation S Global Note. 

        (ii)    Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.    A Holder of a Restricted
Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note only if: 

	(A)
	such
exchange or transfer is effected pursuant to an Exchange Offer in accordance with a Registration Rights Agreement and the Holder, in the case of an exchange, or the transferee,
in the case of a transfer, makes any and all certifications in the applicable Letter of Transmittal;

	(B)
	such
transfer is effected pursuant to a Shelf Registration Statement in accordance with a Registration Rights Agreement;

	(C)
	such
transfer is effected by a participating Broker-Dealer pursuant to an Exchange Offer Registration Statement in accordance with a Registration Rights Agreement; or

	(D)
	the
Registrar receives the following:

	(1)
	if
the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in an Unrestricted Global Note, a certificate from such Holder in the form of
Exhibit C hereto, including the certifications in item (1)(c) thereof; or

	(2)
	if
the Holder of such Restricted Definitive Note proposes to transfer such Note to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted
Global Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 

24

 

and,
in each such case set forth in this subparagraph (D), if the Registrar requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to
the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act. 

Upon
satisfaction of the conditions of any of the subparagraphs in this Section 2.08(d)(ii), the Trustee shall cancel such Restricted Definitive Note and increase or cause to be increased the
aggregate principal amount of the Unrestricted Global Note. 

        (iii)    Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.    A Holder of an
Unrestricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Unrestricted Definitive Note to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note at any time. Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted Definitive
Note and increase or cause to be increased the aggregate principal amount of one of the Unrestricted Global Notes. 

        (iv)    Transfer or Exchange of Unrestricted Definitive Notes to Beneficial Interests in Restricted Global Notes
Prohibited.    An Unrestricted Definitive Note may not be exchanged for, or transferred to Persons who take delivery thereof in the form of, beneficial interests in a
Restricted Global Note. 

        (v)    Issuance of Unrestricted Global Notes.    If any such exchange or transfer from a Definitive Note to a
beneficial interest in an Unrestricted Global Note is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above at a time when an Unrestricted Global Note has not yet been issued, the
Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.04 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of Definitive Notes so transferred. 

        (e)    Transfer and Exchange of Definitive Notes for Definitive Notes.    Upon request by a Holder of Definitive Notes
and such Holder's compliance with the provisions of this Section 2.08(e), the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar
duly executed by such Holder or by such Holder's attorney, duly authorized in writing. In addition, the requesting Holder shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.08(e). 

        (i)    Restricted Definitive Notes to Restricted Definitive Notes.    Any Restricted Definitive Note may be
transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following: 

	(A)
	if
the transfer will be made pursuant to Rule 144A, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item
(1) thereof;

	(B)
	if
the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof; and

	(C)
	if
the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable. 

25

 

        (ii)    Restricted Definitive Notes to Unrestricted Definitive Notes.    Any Restricted Definitive Note may be
exchanged by the Holder thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note only if: 

	(A)
	such
exchange or transfer is effected pursuant to an Exchange Offer in accordance with a Registration Rights Agreement and the Holder, in the case of an exchange, or the transferee,
in the case of a transfer, makes any and all certifications in the applicable Letter of Transmittal;

	(B)
	any
such transfer is effected pursuant to a Shelf Registration Statement in accordance with a Registration Rights Agreement;

	(C)
	any
such transfer is effected by a participating Broker-Dealer pursuant to an Exchange Offer Registration Statement in accordance with a Registration Rights Agreement; or

	(D)
	the
Registrar receives the following:

	(1)
	if
the Holder of such Restricted Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit C
hereto, including the certifications in item (1)(d) thereof; or

	(2)
	if
the Holder of such Restricted Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a
certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 

and,
in each such case set forth in this subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the Company to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 

Upon
satisfaction of the conditions of any of the clauses of Section 2.08(e)(ii), the Trustee shall cancel the prior Restricted Definitive Note and the Company shall execute, and, upon receipt
of an Authentication Order in accordance with Section 2.04 hereof, the Trustee shall authenticate and deliver to the Person designated in the instructions an Unrestricted Definitive Note in the
appropriate principal amount. 

        (iii)    Unrestricted Definitive Notes to Unrestricted Definitive Notes.    A Holder of Unrestricted Definitive Notes
may transfer such Notes to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such a transfer, the Registrar shall register the
Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof. 

        (f)    Exchange Offer.    Upon the occurrence of an Exchange Offer in accordance with a Registration Rights Agreement,
the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.04, the Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial interests in the applicable Restricted Global Notes tendered for acceptance by Persons that make any and all certifications
in the applicable Letter of Transmittal or are deemed to have made such certifications if delivery is made through the Applicable Procedures as may be required by such Registration Rights Agreement,
and accepted for exchange in the Exchange Offer and (ii) Unrestricted Definitive Notes in an aggregate principal amount equal to the principal amount of the Restricted Definitive Notes tendered
for acceptance by Persons who made the foregoing certifications and accepted for exchange in the Exchange Offer. Concurrently with the issuance of such Notes, the Trustee shall cause the 

26

 

aggregate
principal amount of the applicable Restricted Global Notes to be reduced accordingly, and the Company shall execute and the Trustee shall authenticate and deliver to the Persons designated
by the Holders of Unrestricted Definitive Notes so accepted Definitive Notes in the appropriate principal amount. 

        (g)    Legends.    The following legends shall appear on the face of all Global Notes and Definitive Notes issued
under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture. 

	(i)
	Private Placement Legend.

	(A)
	Except
as permitted by subparagraph (B) below, each Global Note and each Definitive Note (and all Notes issued in exchange therefor or substitution thereof) shall bear the
legend in substantially the following form. 

THE
SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE OR OTHER SECURITIES LAWS, NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS THE TRANSACTION IS EXEMPT
FROM OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THE SECURITY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL
BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN "OFFSHORE TRANSACTION" PURSUANT TO RULE 904 OF REGULATION S,
(2) AGREES THAT IT WILL NOT PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(K) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION
THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF ANY PREDECESSOR OF THE SECURITY) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAWS (THE "RESALE
RESTRICTION TERMINATION DATE"), OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO SIX FLAGS, INC., (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR
(E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHICH THIS SECURITY IS TRANSFERRED
A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED THAT SIX FLAGS, INC. AND THE TRUSTEE SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (1) PURSUANT TO CLAUSE
(D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER 

27

 

INFORMATION
SATISFACTORY TO EACH OF THEM AND (II) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATION OR TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS
COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT. 

	(B)
	Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or
(f) of this Section 2.08 (and all Notes issued in exchange therefor or substitution thereof) shall not bear the Private Placement Legend. 

        (ii)    Global Note Legend.    Each Global Note shall bear a legend in substantially the following form: 

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY
ANY SUCH NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR NOMINEE OF A SUCCESSOR DEPOSITARY, OR ANY NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. TRANSFERS OF THE
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO., OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE, AND TRANSFERS OF PORTIONS OF THE
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

        (h)
Cancellation and/or Adjustment of Global Notes. 

        At
such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in
whole and not in part, each such Global Note shall be returned to or retained and canceled by the Trustee in accordance with Section 2.13 hereof. At any time prior to such cancellation, if any
beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the
Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another
Global Note, such other Global Note 

28

 

shall
be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 

        (i)    General Provisions Relating to Transfers and Exchanges.    

        (i)    To
permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Global Notes and Definitive Notes upon the Company's
order. 

        (ii)    No
service charge shall be made to a holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchange or transfer pursuant to Sections 2.12, 3.06, 3.09, 4.10, 4.15 and 9.05). 

        (iii)    The
Registrar shall not be required to register the transfer of or to exchange any Note selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part. 

        (iv)    All
Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes shall be the valid obligations of the
Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 

        (v)    The
Registrar shall not be required (A) to issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business
15 days before the day of any selection of Notes for redemption under Section 3.02 hereof and ending at the close of business on the day of selection or (B) to register the
transfer of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part. 

        (vi)    The
Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Company shall be affected by notice to the contrary. 

        (vii)    The
Trustee shall authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.04 hereof. 

        (viii)    All
certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.08 to effect a registration of
transfer or exchange may be submitted by facsimile. 

        (ix)    The
Trustee is hereby authorized and directed to enter into a letter of representation with the Depositary in the form provided by the Company and to act in accordance
with such letter. 

        Section
2.09.    Replacement Notes.    If any mutilated Note is surrendered to the Trustee or the Company and the
Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, the Company shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a
replacement Note if the Trustee's requirements are met. If required by the Trustee or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee
and the Company to protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a Note is replaced. The Company may charge for its expenses in
replacing a Note. 

29

  

        Every replacement Note issued in accordance with this Section 2.09 is an additional obligation of the Company and shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued hereunder. 

        Section
2.10    Outstanding Notes.    The Notes outstanding at any time are all the Notes authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those
described in this Section as not outstanding. Except as set forth in Section 2.11 hereof, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the
Note; however, Notes held by the Company or a Subsidiary of the Company shall not be deemed to be outstanding for purposes of Section 3.07(b) hereof. 

        If
a Note is replaced pursuant to Section 2.09 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona
fide purchaser. 

        If
the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue. 

        If
the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that
date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest. 

        Section
2.11.    Treasury Notes.    In determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Company, or by any Affiliate of the Company, shall be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that a Responsible Officer of the Trustee actually knows are so owned shall be so
disregarded. 

        Section
2.12.    Temporary Notes.    Until certificates representing Notes are ready for delivery, the Company may
prepare and the Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of certificated Notes but may have variations
that the Company considers appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Notes in exchange for temporary Notes. 

        Holders
of temporary Notes shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder. 

        Section
2.13.    Cancellation.    The Company at any time may deliver Notes to the Trustee for cancellation. The
Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel all Notes surrendered
for registration of transfer, exchange, payment, replacement or cancellation and shall dispose of such canceled Notes (subject to the record retention requirement of the Exchange Act in its customary
manner). The Company may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation. 

        Section
2.14.    Defaulted Interest.    If the Company defaults in a payment of interest on the Notes, it shall pay
the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, in each case at
the rate provided in the Notes and in Section 4.01 hereof. The Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of
the proposed payment. The Company shall fix or cause to be fixed each such special record date and payment date; provided that no such special record date shall be less than 10 days prior to
the related 

30

 

payment
date for such defaulted interest. At least 15 days before the special record date, the Company (or, upon the written request of the Company, the Trustee in the name and at the expense
of the Company) shall mail or cause to be mailed to Holders a notice that states the special record date, the related payment date and the amount of such interest to be paid. 

        Section 2.15.    CUSIP Numbers.    The Company in issuing the Notes may use "CUSIP" numbers (if then generally
in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in
the "CUSIP" numbers. 

 
 

ARTICLE III
  REDEMPTION AND PREPAYMENT    
    

        Section
3.01.    Notices to Trustee.    If the Company elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.07 hereof, it shall furnish to the Trustee, at least 60 days before a redemption date (or such shorter period as allowed by the Trustee), an Officers' Certificate
setting forth (i) the clause of this Indenture pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the principal amount of Notes to be redeemed and
(iv) the redemption price. 

        Section
3.02.    Selection of Notes to Be Redeemed.    If less than all of the Notes are to be redeemed or purchased
in an offer to purchase at any time, the Trustee shall select the Notes to be redeemed or purchased among the Holders of the Notes in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot or in accordance with any other method the Trustee considers fair and
appropriate; provided that no Notes of $1,000 or less shall be redeemed in part. In the event of partial redemption by lot, the particular Notes to be
redeemed shall be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee from the outstanding Notes not previously called
for redemption. 

        The
Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Note selected for partial redemption, the principal amount thereof
to be redeemed. Notes and portions of Notes selected shall be in amounts of $1,000 or whole multiples of $1,000; except that if all of the Notes of a Holder are to be redeemed, the entire outstanding
amount of Notes held by such Holder, even if not a multiple of $1,000, shall be redeemed. Except as provided in the preceding sentence, provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption. 

        Section
3.03.    Notice of Redemption.    Subject to the provisions of Section 3.09 hereof, at least
30 days but not more than 60 days before a redemption date, the Company shall mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be
redeemed at its registered address. 

        The
notice shall identify the Notes (including CUSIP numbers) to be redeemed and shall state: 

        (a)   the
redemption date; 

        (b)   the
redemption price; 

        (c)   if
any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the redemption date upon surrender of such Note, a
new Note or Notes in principal amount equal to the unredeemed portion shall be issued upon cancelation of the original Note; 

31

 

        (d)   the
name and address of the Paying Agent; 

        (e)   that
Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price; 

        (f)    that,
unless the Company defaults in making such redemption payment, interest on Notes called for redemption ceases to accrue on and after the redemption date; 

        (g)   the
paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed; and 

        (h)   that
no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Notes. 

        At
the Company's request, the Trustee shall give the notice of redemption in the Company's name and at its expense; provided, however,
that the Company shall have delivered to the Trustee, at least 60 days prior to the redemption date (or such shorter period as allowed by the Trustee), an Officers' Certificate requesting that
the Trustee give such notice (in the name and at the expense of the Company) and setting forth the information to be stated in such notice as provided in the preceding paragraph. 

        Section
3.04.    Effect of Notice of Redemption.    Once notice of redemption is mailed in accordance with
Section 3.03 hereof, Notes called for redemption shall become irrevocably due and payable on the redemption date at the redemption price. A notice of redemption may not be conditional. 

        Section
3.05.    Deposit of Redemption Price.    One Business Day prior to any redemption date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption price of and, if applicable, accrued interest and Liquidated Damages, if any, on all Notes to be redeemed on
that date. The Trustee or the Paying Agent shall promptly return to the Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the
redemption price of, and accrued interest on, all Notes to be redeemed. 

        If
the Company complies with the provisions of the preceding paragraph, on and after the redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for
redemption. If a Note is redeemed on or after a Regular Record Date but on or prior to the related Interest Payment Date, then any accrued and unpaid interest shall be paid to the Person in whose name
such Note was registered at the close of business on such Regular Record Date. If any Note called for redemption shall not be so paid upon surrender for redemption because of the failure of the
Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any interest not paid
on such unpaid principal, in each case at the rate provided in the Notes and in Section 4.01 hereof. 

        Section
3.06.    Notes Redeemed in Part.    Upon surrender of a Note that is redeemed in part, the Company shall issue
and, upon the Company's written request, the Trustee shall authenticate for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed portion of the Note
surrendered. 

Section
3.07.    Optional Redemption.    (a) Except as set forth in clause (b) of this Section 3.07, the
Company shall not have the option to redeem the Notes pursuant to this Section 3.07 prior to April 15, 2008. On or after April 15, 2008, the Company may redeem all or part of the
Notes upon not less than 30 nor more than 60 days' notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and
Liquidated Damages, if 

32

 

any,
thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on April 15 of the years indicated below: 

	Year
 
	 	Percentage
	 
	

2008	
 	

104.875	
%
	

2009	
 	

103.250	
%
	

2010	
 	

101.625	
%
	

2011 and thereafter	
 	

100.000	
%

        (b)   Notwithstanding
the foregoing, at any time prior to April 15, 2006, the Company may on any one or more occasions redeem up to 35% of the aggregate principal
amount of Notes (which includes Additional Notes, if any) originally issued under this Indenture at a redemption price of 109.75% of the principal amount thereof, plus accrued and unpaid interest to
the redemption date, with the net cash proceeds of one or more Public Equity Offerings and/or the net cash proceeds of a Strategic Equity Investment; provided that (i) at least 65% of the
aggregate principal amount of Notes (which includes Additional Notes, if any) originally issued remains outstanding immediately after the occurrence of each such redemption (excluding the Notes held
by the Company and its Subsidiaries); and (ii) any such redemption shall occur within 60 days of the date of the closing of each such Public Equity Offering and/or Strategic Equity
Investment. 

        (c)   Any
redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Section 3.01 through 3.06 hereof. 

        (d)   If
the optional redemption date is on or after an interest record date and on or before the related interest payment date, the accrued and unpaid interest, if any, will
be paid to the Person in whose name the Note is registered at the close of business on such record date, and no additional interest will be payable to holders whose Notes will be subject to redemption
by the Company. 

        Section
3.08.    Mandatory Redemption.    Except as set forth in Sections 4.10 and 4.15, the Company shall not be
required to make mandatory redemption or sinking fund payments with respect to the Notes. 

        Section
3.09.    Offer to Purchase by Application of Excess Proceeds.    In the event that, pursuant to
Section 4.10 hereof, the Company shall be required to commence an offer to all Holders to purchase Notes (an "Asset Sale Offer"), it shall follow the procedures specified below. 

        The
Asset Sale Offer shall remain open for a period of 20 Business Days following its commencement and no longer, except to the extent that a longer period is required by applicable law
(the "Offer Period"). No later than five Business Days after the termination of the Offer Period (the "Purchase Date"), the Company shall purchase the principal amount of Notes required to be
purchased pursuant to Section 4.10 hereof (the "Offer Amount") or, if less than the Offer Amount has been tendered, all Notes tendered in response to the Asset Sale Offer. Payment for any Notes
so purchased shall be made in the same manner as interest payments are made. 

        If
the Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid interest and Liquidated Damages, if any, shall be
paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest shall be payable to Holders who tender Notes pursuant to the Asset Sale
Offer. 

        Upon
the commencement of an Asset Sale Offer, the Company shall send, by first class mail, a notice to the Trustee and each of the Holders, with a copy to the Trustee. The notice shall
contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale 

33

 

Offer.
The Asset Sale Offer shall be made to all Holders. The notice, which shall govern the terms of the Asset Sale Offer, shall state: 

        (a)  that
the Asset Sale Offer is being made pursuant to this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale Offer shall remain
open; 

        (b)  the
Offer Amount, the purchase price and the Purchase Date; 

        (c)  that
any Note not tendered or accepted for payment shall continue to accrue interest; 

        (d)  that,
unless the Company defaults in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer shall cease to accrue interest after the
Purchase Date; 

        (e)  that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer may only elect to have all of such Note purchased and may not elect to have only a portion
of such Note purchased; 

        (f)  that
Holders electing to have a Note purchased pursuant to any Asset Sale Offer shall be required to surrender the Note, with the form entitled "Option of Holder to
Elect Purchase" on the reverse of the Note completed, or transfer by book-entry transfer, to the Company, a Depositary, if appointed by the Company, or a paying agent at the address
specified in the notice at least three days before the Purchase Date; 

        (g)  that
Holders shall be entitled to withdraw their election if the Company, the Depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that
such Holder is withdrawing his election to have such Note purchased; 

        (h)    that,
if the aggregate principal amount of Notes surrendered by Holders exceeds the Offer Amount, the Company shall select the Notes to be purchased on a pro rata basis
(with such adjustments as may be deemed appropriate by the Company so that only Notes in denominations of $1,000, or integral multiples thereof, shall be purchased); and 

        (i)  that
Holders whose Notes were purchased only in part shall be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer). 

        On
or before the Purchase Date, the Company shall, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof
tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and shall deliver to the Trustee an Officers' Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the terms of this Section 3.09. The Company, the Depositary or the paying agent, as the case may be, shall promptly
(but in any case not later than five days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and accepted by
the Company for purchase, and the Company shall promptly issue a new Note, and the Trustee, upon written request from the Company shall authenticate and mail or deliver such new Note to such Holder,
in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The Company shall
publicly announce the results of the Asset Sale Offer on the Purchase Date. 

        Other
than as specifically provided in this Section 3.09, any purchase pursuant to this Section 3.09 shall be made pursuant to the provisions of Sections 3.01 through 3.06
hereof. 

34

 

 
 

ARTICLE IV
  COVENANTS    
    

        Section
4.01.    Payment of Notes.    The Company shall pay or cause to be paid the principal of, premium, if any, and
interest and Liquidated Damages, if any, on the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and interest and Liquidated Damages, if any, shall be considered
paid on the date due if the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by the Company in immediately
available funds and designated for and sufficient to pay all principal, premium, if any, and interest and Liquidated Damages, if any, then due. 

        The
Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess
of the then applicable interest rate on the Notes to the extent lawful; if applicable, it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and Liquidated Damages, if any, (without regard to any applicable grace period) at the same rate to the extent lawful. 

        Section
4.02.    Maintenance of Office or Agency.    The Company shall maintain in the Borough of Manhattan, the City
of New York, an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of
transfer or for exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company shall give prompt written notice to the Trustee of
the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. 

        The
Company may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve
the Company of its obligation to maintain an office or agency in the Borough of Manhattan, the City of New York for such purposes. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such other office or agency. 

        The
Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with Section 2.05. 

        Section
4.03.    Reports.    Whether or not required by the rules and regulations of the SEC, so long as any Notes are
outstanding, the Company shall furnish to the Holders and the Trustee (i) all quarterly and annual financial information that would be required to be contained in a filing with the SEC on Forms
10-Q and 10-K if the Company were required to file such forms, including a "Management's Discussion and Analysis of Financial Condition and Results of Operations" that
describes the financial condition and results of operations of the Company and its consolidated Subsidiaries (showing in reasonable detail, either on the face of the financial statements or in the
footnotes thereto and in Management's Discussion and Analysis of Financial Condition and Results of Operations, the financial condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Company) and, with respect to the annual information only, a report thereon by the
Company's certified independent accountants and (ii) all current reports that would be required to be filed with the SEC on Form 8-K if the Company were required to file such
reports, in each case, within the time periods specified in the SEC's rules and regulations. In addition, whether or not required by the rules and regulations of the SEC, the Company shall
file a copy of all of the information and 

35

 

reports
referred to in clauses (i) and (ii) with the SEC for public availability within the time periods specified in the SEC's rules and regulations (unless the SEC will not accept such
a filing) and make such information available to securities analysts and prospective investors upon request. The Company shall at all times comply with TIA § 314(a). Delivery of such
reports, information and documents to the Trustee is for informational purposes only and the Trustee's receipt of such shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's compliance with any of its covenants hereunder (as to which the Trustee is entitled to conclusively rely exclusively on
Officers' Certificates). 

Section
4.04.    Compliance Certificate.    (a) The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year, an Officers' Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing
such certificate, that to the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default
of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto) and that to the best of his or her knowledge no event has occurred and remains in
existence by reason of which
payments on account of the principal of or interest, if any, on the Notes is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to
take with respect thereto. 

        (b)   So
long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants, the year-end financial statements
delivered pursuant to Section 4.03 shall be accompanied by a written statement of the Company's independent public accountants (who shall be a firm of established national reputation) that in
connection with the audit for certification of such financial statements contained in such reports, nothing has come to their attention that would lead them to believe that the Company has failed to
comply with any provisions of Article 4 or Article 5 hereof insofar as the provisions relate to accounting matters or, if any such violation has occurred, specifying the nature and
period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violation. 

        (c)   The
Company shall, so long as any of the Notes are outstanding, deliver to the Trustee, forthwith and in any event within five days upon any Officer becoming aware of
any Default or Event of Default or an event which, with notice or the lapse of time or both, would constitute an Event of Default, an Officers' Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto. 

        Section
4.05.    Taxes.    The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to
delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes. 

        Section
4.06.    Stay, Extension and Usury Laws.    The Company covenants (to the extent that it may lawfully do so)
that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter
in force, that may affect the covenants or the performance of this Indenture; and the Company hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not, by
resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been
enacted. 

36

   
        Section 4.07.    Restricted Payments.    The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly: (i) declare or pay any dividend or make any other payment or distribution on account of any Equity Interests of the Company (including, without
limitation, any payment in connection with any merger or consolidation involving the Company) or to the direct or indirect holders of any Equity Interests of the Company in their capacity as such
(other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Company); (ii) purchase, redeem or otherwise acquire or retire for value (including,
without limitation, in connection with any merger or consolidation involving the Company) any Equity Interests of the Company or any direct or indirect parent of the Company; (iii) make any
payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness that is subordinated to the Notes, except a payment of interest or principal at
Stated Maturity; or (iv) make any Restricted Investment (all such payments and other actions set forth in clauses (i) through (iv) above being collectively referred to as
"Restricted Payments"), unless, at the time of and after giving effect to such Restricted Payment: 

        (a)   no
Default or Event of Default shall have occurred and be continuing or would occur as a consequence thereof; and 

        (b)   the
Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the
applicable four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness pursuant to the Debt to Cash Flow test set forth in the first paragraph of
Section 4.09 hereof; and 

        (c)   such
Restricted Payment, together with the aggregate amount of all other Restricted Payments declared or made after the Issue Date (excluding Restricted Payments
permitted by clauses (ii) and (iii) of the next succeeding paragraph) shall not exceed, at the date of determination, the sum, without duplication, of (A) an amount equal to the
Company's Consolidated Cash Flow for the period (taken as one accounting period) from the beginning of the first fiscal quarter commencing after June 30, 1999 to the end of the Company's most
recently ended full fiscal quarter for which financial statements have been filed with the SEC (the "Basket Period") less the product of 1.4 times the Company's Consolidated Interest Expense for the
Basket Period, plus (B) 100% of the aggregate net cash proceeds received by the Company after June 30, 1999 as a contribution to its common equity capital or from the issue or sale of
Equity Interests of the Company (other than Disqualified Stock) or from the issue or sale after June 30, 1999 of Disqualified Stock or debt securities of the Company that have been converted
into Equity Interests (other than (x) Equity Interests, Disqualified Stock or convertible debt securities sold to a Subsidiary of the Company and (y) any sale of Equity Interests of the
Company the net cash proceeds of which are applied pursuant to clause (ii) of the immediately succeeding paragraph), plus (C) to the extent that any Restricted Investment that was made
after the Issue Date is
sold for cash or otherwise liquidated or repaid for cash, the lesser of (x) the cash return of capital with respect to such Restricted Investment (less the cost of disposition, if any) and
(y) the initial amount of such Restricted Investment, plus (D) to the extent that any Unrestricted Subsidiary is redesignated as a Restricted Subsidiary after the Issue Date, the fair
market value of the Company's or its Restricted Subsidiary's, as the case may be, Investment in such Subsidiary as of the date of such redesignation. 

        The
preceding provisions shall not prohibit: (i) the payment of any dividend within 60 days after the date of declaration thereof, if at the date of declaration the payment
would have complied with the provisions of this Indenture; (ii) the redemption, repurchase, retirement, defeasance or other acquisition of any subordinated Indebtedness or Equity Interests of
the Company in exchange for, or out of the net cash proceeds of the substantially concurrent sale (other than to a Subsidiary of the Company) of, Equity Interests of the Company (other than
Disqualified Stock); provided that the amount of any such net cash proceeds that are utilized for any such redemption, repurchase, 

37

 

retirement,
defeasance or other acquisition shall be excluded from clause (c)(B) of the preceding paragraph; (iii) the defeasance, redemption, repurchase or other acquisition of
subordinated Indebtedness with the net cash proceeds from an incurrence of Permitted Refinancing Indebtedness; (iv) so long as no Default or Event of Default shall have occurred and be
continuing (or would result therefrom), the purchase, redemption, retirement or other acquisition by the Company or any Restricted Subsidiary of the Company of partnership interests held by the
partners in the limited partners of the Co-Venture Partnerships, the co-general partner of the Co-Venture Partnerships or, in each case, their successors, in
accordance with and in the manner required or permitted by the terms of the Partnership Parks Agreements; (v) so long as no Default or Event of Default shall have occurred and be continuing (or
would result therefrom), any transactions pursuant to or contemplated by, and payments made in connection with, and in accordance with the terms of, the Partnership Parks Agreements and the Marine
World Agreements; (vi) so long as no Default or Event of Default shall have occurred and be continuing (or would result therefrom), any transactions pursuant to or contemplated by, and payments
made in connection with, and in accordance with the terms of, the Subordinated Indemnity Agreement; (vii) in the event the Company issues common stock in exchange for or upon conversion of
PIERS (or Convertible Preferred Stock underlying the PIERS), cash payments made in lieu of the issuance of fractional shares of common stock, not to exceed $500,000 in the aggregate in any fiscal
year; (viii) the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Company from employees, former employees, directors or former directors of
the Company or any of its Restricted Subsidiaries (or permitted transferees of such employees, former employees, directors or former directors); provided,
however, that the aggregate amount of such repurchases shall not exceed $5.0 million in any twelve-month period; and (ix) so long as no Default or Event of
Default shall have occurred and be continuing (or would result therefrom), the payment of dividends on the PIERS (or the underlying Convertible Preferred Stock) or the redemption of the then
outstanding PIERS (or the underlying Convertible Preferred Stock) on August 15, 2009, in each case in accordance with the terms thereof as in effect on the date of this Indenture. 

        The
amount of all Restricted Payments (other than cash) shall be the fair market value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or
issued by the Company or such Subsidiary, as the case may be, pursuant to the Restricted Payment. The fair market value of any assets or securities that are required to be valued by this
Section 4.07 shall be determined
by the Board of Directors of the Company whose resolution with respect thereto shall be delivered to the Trustee. The Board of Directors' determination shall be based upon an opinion or appraisal
issued by an accounting, appraisal or investment banking firm of national standing if such fair market value exceeds $10.0 million. Not later than the date of making any Restricted Payment
(other than any Restricted Payment permitted pursuant to clause (i) through (ix) of the immediately preceding paragraph), the Company shall deliver to the Trustee an Officers'
Certificate stating that such Restricted Payment is permitted and setting forth the basis upon which the calculations required by this Section 4.07 were computed, together with a copy of any
fairness opinion or appraisal required by this Indenture. 

        The
Board of Directors may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if such designation would not cause a Default;  provided that in no event shall the business currently operated
by Six Flags Operations Inc. or Six Flags Theme Parks Inc. be transferred
to or held by any Unrestricted Subsidiary. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, all outstanding Investments owned by the Company and its Restricted Subsidiaries
(except to the extent repaid in cash) in the Subsidiary so designated will be deemed to be Restricted Payments at the time of such designation and will reduce the amount available for Restricted
Payments under the first paragraph of this Section 4.07. All such outstanding Investments will be valued at their fair market value at the time of such designation. That designation will only
be permitted if such Restricted 

38

 

Payment
would be permitted at such time and if such Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. 

        Section
4.08.    Dividend and Other Payment Restrictions Affecting Subsidiaries.    The Company shall not, and shall
not permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any
Restricted Subsidiary to (i)(a) pay dividends or make any other distributions to the Company or any of its Restricted Subsidiaries on its Capital Stock or with respect to any other interest or
participation in, or measured by, its profits, or (b) pay any Indebtedness owed to the Company or any of its Restricted Subsidiaries, (ii) make loans or advances to the Company or any of
its Restricted Subsidiaries or (iii) transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries. However, the preceding restrictions will not apply to
encumbrances or restrictions existing under or by reason of (1) Existing Indebtedness and Indebtedness under Credit Facilities and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of Existing Indebtedness and Indebtedness under Credit Facilities, provided that such
amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are no more restrictive, taken as a whole, with respect to such dividend and other
payment restrictions than those contained in the agreements governing the Existing Indebtedness and Indebtedness under Credit Facilities on the date of this Indenture, (2) the Partnership Parks
Agreements, the Marine World Agreements or the Subordinated Indemnity Agreement, (3) the terms of any Indebtedness permitted by this Indenture to be incurred by any Restricted Subsidiary of the
Company, (4) this Indenture and the Notes, (5) applicable law, (6) any instrument governing Indebtedness or Capital Stock of a Person acquired by the Company or any of its
Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness was incurred in connection with or in contemplation of such acquisition), which encumbrance
or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired,  provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred, (7) customary
non-assignment provisions in leases, licenses or other contracts entered into in the ordinary course of business, (8) purchase money obligations for property acquired in the
ordinary course of business that impose restrictions of the nature described in clause (iii) above on the property so acquired, (9) any agreement for the sale of a Restricted Subsidiary
that restricts distributions by that Restricted Subsidiary pending its sale, (10) obligations otherwise permitted to be incurred pursuant to the provisions of Section 4.12 that limit the
right of the obligee to dispose of the assets securing such obligations, (11) provisions with respect to the disposition or distribution of assets or property in joint venture agreements and
other similar agreements entered into in the ordinary course of business and (12) restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the
ordinary course of business. 

        Section
4.09.    Incurrence of Indebtedness and Issuance of Preferred Stock.    The Company shall not, and shall not
permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect
to (collectively, "incur") any Indebtedness (including Acquired Debt), and the Company shall not issue any Disqualified Stock and shall not permit any of its Restricted Subsidiaries to issue any
shares of preferred stock; provided, however, that the Company may incur Indebtedness (including Acquired Debt) or issue shares of Disqualified Stock
and the Company's Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) or issue shares of preferred stock if the Company's Debt to Cash Flow Ratio at the time of incurrence of such
Indebtedness or the issuance of such Disqualified Stock or such preferred stock, as the case may be, after giving pro forma effect to such incurrence or issuance as of such date and to the use of the
proceeds therefrom as if the same had occurred at the beginning of the most recently ended four full fiscal quarter period of the Company for which financial statements have been furnished or are
required to be furnished to Holders of the Notes in reports pursuant to Section 4.03 hereof, would have been no greater than 6.0 to 1. 

39

 

        The
Company shall not incur any Indebtedness that is contractually subordinated in right of payment to any other Indebtedness of the Company unless such Indebtedness is also
contractually subordinated in right of payment to the Notes on substantially identical terms; provided, however, that no Indebtedness of the Company
shall be deemed to be contractually subordinated in right of payment to any other Indebtedness of the Company solely by virtue of being unsecured. 

        The
first paragraph of this Section 4.09 will not apply to the incurrence of any of the following items of Indebtedness (collectively, "Permitted Debt"): 

          (i)  the
incurrence by the Company and its Restricted Subsidiaries of additional Indebtedness under Credit Facilities, in an amount up to $1.5 billion; 

         (ii)  the
incurrence by the Company and its Restricted Subsidiaries of additional revolving credit Indebtedness and letters of credit pursuant to Credit Facilities in an
aggregate principal amount (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and its Restricted Subsidiaries thereunder) at any
one time outstanding not to exceed the Specified Amount as of such date of incurrence; provided that the aggregate principal amount of all Indebtedness
incurred pursuant to this clause (ii) is reduced to an outstanding balance of $1.0 million or less for at least 30 consecutive days in each fiscal year; 

        (iii)  the
incurrence by the Company and its Restricted Subsidiaries of the Existing Indebtedness; 

        (iv)  the
incurrence by the Company of Indebtedness represented by the Notes (other than any Additional Notes); 

         (v)  the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, in each case incurred for the purpose of financing all or any part of the purchase price or cost of construction or improvement of property, plant or equipment used in the business of the
Company or such Restricted Subsidiary, in an aggregate principal amount not to exceed $50.0 million at any time outstanding; 

        (vi)  the
incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to
refund, refinance or replace Indebtedness (other than intercompany Indebtedness and Indebtedness incurred pursuant to clauses (i) and (ii) above) that was permitted by this Indenture to
be incurred; 

       (vii)  the
incurrence by the Company or any of its Restricted Subsidiaries of intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries;  provided, however, that (a) if the
Company is the obligor on any such intercompany Indebtedness, such Indebtedness is, if any Default or Event of
Default with respect to the Company occurs and is continuing, expressly subordinated to the prior payment in full in cash of all Obligations with respect to the Notes and (b)(1) any subsequent
issuance or transfer of Equity Interests that results in any such intercompany Indebtedness being held by a Person other than the Company or a Restricted Subsidiary thereof and (2) any sale or
other transfer of any such intercompany Indebtedness to a Person that is not either the Company or a Restricted Subsidiary of the Company shall be deemed, in each case, to constitute an incurrence of
such intercompany Indebtedness by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (vii); 

      (viii)  the
incurrence by the Company or any of its Restricted Subsidiaries of (a) Hedging Obligations that are incurred for the purpose of fixing or hedging interest
rate risk with respect to any floating rate Indebtedness that is permitted by the terms of this Indenture to be incurred and 

40

 

(b) Currency
Agreements that do not increase the Indebtedness of the Company and its Restricted Subsidiaries outstanding at any time other than as a result of fluctuations in foreign currency
exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder; 

        (ix)  Indebtedness
in respect of performance bonds, letters of credits, surety or appeal bonds, prior to any drawing thereunder, for or in connection with pledges, deposits
or payments made or given in the ordinary course of business; 

         (x)  the
guarantee by the Company or any of its Restricted Subsidiaries of Indebtedness of the Company or a Restricted Subsidiary of the Company that was permitted to be
incurred by another provision of this Section 4.09 (including, without limiting the generality of the foregoing, the guarantee by the Company or any Restricted Subsidiary of the Company of
Existing Indebtedness); 

        (xi)  the
incurrence by the Company's Unrestricted Subsidiaries of Non-Recourse Debt, provided, however, that if
any such Indebtedness ceases to be Non-Recourse Debt of an Unrestricted Subsidiary, such event shall be deemed to constitute an incurrence of Indebtedness by a Restricted Subsidiary of the
Company that was not permitted by this clause (xi); and 

       (xii)  the
incurrence by the Company or any of its Restricted Subsidiaries of additional Indebtedness in an aggregate principal amount (or accreted value, as applicable) at
any time outstanding, including all Permitted Refinancing Indebtedness incurred to refund, refinance or replace any Indebtedness incurred pursuant to this clause (xii), not to exceed
$100.0 million. 

        For
purposes of determining compliance with this Section 4.09, in the event that an item of Indebtedness (including Acquired Debt) meets the criteria of more than one of the
categories of Permitted Debt described in clauses (i) through (xii) above or is entitled to be incurred pursuant to the first paragraph of this Section 4.09, the Company shall, in
its sole discretion, classify (or later reclassify in whole or in part, in its sole discretion) such item of Indebtedness in any manner that complies with this Section 4.09. Accrual of
interest, accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the payment of dividends on
preferred stock in the form of additional shares of the same class of preferred stock will not be deemed to be an incurrence of Indebtedness or an issuance of preferred stock for purposes of this
Section 4.09; provided, in each such case, that the amount thereof is included in Consolidated Indebtedness of the Company as accrued. 

        Section
4.10.    Asset Sales.    The Company shall not, and shall not permit any of its Restricted Subsidiaries to
consummate an Asset Sale unless (i) the Company (or the Restricted Subsidiary, as the case may be) receives consideration at the time of such Asset Sale at least equal to the fair market value,
as determined in good faith by the Board of Directors of the Company or such Restricted Subsidiary, of the assets or Equity Interests issued or sold or otherwise disposed of and (ii) at least
75% of the consideration therefor received by the Company or such Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes of this Section 4.10 each of the following shall
be deemed to be cash: (a) any liabilities (as shown on the Company's or such Restricted Subsidiary's most recent balance sheet) of the Company or any Restricted Subsidiary (other than
contingent liabilities and liabilities that are by their terms subordinate to the Notes) that are assumed by the transferee of any such assets that releases the Company or such Restricted Subsidiary
from further liability or, in the case of the sale of Capital Stock, that are assumed by the transferee by operation of law and (b) any securities, notes or other obligations received by the
Company or such Restricted Subsidiary from such transferee that are promptly (subject to ordinary settlement periods) converted by the Company or such Restricted Subsidiary into cash (to the extent of
the cash received in that conversion). 

        Notwithstanding
the immediately preceding paragraph, the Company and its Restricted Subsidiaries shall be permitted to consummate an Asset Sale without complying with such paragraph if 

41

 

(1) the
Company or the applicable Restricted Subsidiary, as the case may be, receives consideration at the time of that Asset Sale at least equal to the fair market value of the assets or other
property sold, issued or otherwise disposed of (as determined in good faith by the Board of Directors of the Company or the applicable Restricted Subsidiary) and (2) at least 75% of the
consideration of that Asset Sale constitutes assets or other property of a kind usable by the Company or its Restricted Subsidiaries in the business of the Company and its Restricted Subsidiaries as
conducted by the Company and its Restricted Subsidiaries on the date of this Indenture; provided that any consideration not constituting assets or
property of a kind usable by the Company and its Restricted Subsidiaries in the business conducted by them on the date of this Indenture and received by the Company or any of its Restricted
Subsidiaries in connection with any Asset Sale permitted to be consummated under this paragraph will constitute Net Proceeds subject to the provisions of the two succeeding paragraphs. 

        Within
365 days after the receipt of any Net Proceeds from an Asset Sale, the Company or the applicable Restricted Subsidiary may apply such Net Proceeds (i) to repay
Senior Debt and, if Senior Debt repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto, (ii) to acquire all or substantially all of the assets of,
or a majority of the Voting Stock of, another Person (or business unit or division of such Person); provided that the primary business of such Person
(or unit or division) is a Permitted Business, (iii) to fund obligations of the Company or any Restricted Subsidiary under the Partnership Parks Agreements or the Subordinated Indemnity
Agreement, (iv) to acquire Capital Stock of a Restricted Subsidiary of the Company held by Persons other than the Company or any Restricted Subsidiary, (v) to make a capital expenditure,
(vi) to acquire other long-term assets that are used or useful in a Permitted Business or (vii) to commit to undertake any of the actions specified in clauses (ii), (iii),
(iv), (v) or (vi) above, provided that such action is consummated within 90 days from the end of such 365-day period.
Pending the final application of any such Net Proceeds, the Company or such Restricted Subsidiary may temporarily
reduce revolving credit borrowings or otherwise invest such Net Proceeds in any manner that is not prohibited by this Indenture. 

        Any
Net Proceeds from Asset Sales that are not applied or invested as provided in the preceding paragraph will constitute "Excess Proceeds." When the aggregate amount of Excess Proceeds
exceeds $20.0 million, the Company will be required to make an offer to all Holders and all holders of other Indebtedness of the Company that is pari
passu with the Notes containing provisions similar to those set forth in this Indenture with respect to offers to purchase or redemptions with the proceeds of sales of assets
(an "Asset Sale Offer") to purchase the maximum principal amount of Notes and such other pari passu Indebtedness of the Company that may be purchased
out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, thereon, to
the date of repurchase and will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use such Excess Proceeds for any purpose not otherwise
prohibited by this Indenture. If the aggregate principal amount of Notes and such other Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee shall select
the Notes and such other Indebtedness to be purchased on a pro rata basis. Upon completion of such Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero. 

        The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant to an Asset Sale Offer. 

        To
the extent that the provisions of any securities laws or regulations conflict with provisions of this covenant, the Company will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under this covenant by virtue thereof. 

42

 

        Section
4.11.    Transactions with Affiliates.    The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate (each, an "Affiliate Transaction"), unless (i) such Affiliate Transaction
is on terms that are no less favorable to the Company or the relevant Restricted Subsidiary than those that would have been obtained in a comparable transaction by the Company or such Restricted
Subsidiary with an unrelated Person and (ii) the Company delivers to the Trustee (a) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $10.0 million, a certificate from the Chief Financial Officer certifying that such Affiliate Transaction complies with clause (i) above and that such
Affiliate Transaction has been approved by a majority of the disinterested members of the Board of Directors and (b) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $25.0 million, an opinion as to the fairness to the Holders of such Affiliate Transaction from a financial point of view
issued by an accounting, appraisal or investment banking firm of national standing. Notwithstanding the foregoing, the following items shall not be deemed to be Affiliate Transactions: (i) any
employment agreement entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business, or any issuance of securities, or other payments, awards or grants in cash,
securities or otherwise pursuant to, or the funding of, employment or indemnification arrangements, stock options and stock ownership plans approved by the Board of Directors, or the grant of stock
options or similar rights to employees and directors of the Company pursuant to plans approved by the Board of Directors, (ii) transactions between or among the Company and/or its Restricted
Subsidiaries, (iii) payment of reasonable directors fees to Persons who are not otherwise employees of the Company or its Restricted Subsidiaries, (iv) loans or advances to employees in
the ordinary course of business, (v) Restricted Payments that are permitted by Section 4.07 hereof, (vi) transactions pursuant to or contemplated by, and in accordance with, the
terms of the Subordinated Indemnity Agreement, (vii) transactions pursuant to or contemplated by and payments in connection with, and, in each case, in accordance with, the terms of the
Partnership Parks Agreements and (viii) transactions pursuant to or contemplated by, and in accordance with, the Marine World Agreements. 

        Section
4.12.    Liens.    The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly
or indirectly create, incur, assume or suffer to exist any Lien securing trade payables, Attributable Debt or Indebtedness on any asset now owned or hereafter acquired, except Permitted Liens, unless
(i) in the case of Liens securing Indebtedness that is expressly subordinate or junior in right of payment to the Notes, the Notes are secured by a Lien on that property or those assets or
proceeds that is senior in priority to those Liens, with the same relative priority as that subordinate or junior Indebtedness will have with respect to the Notes and (ii) in all other cases,
the Notes are secured by such Lien on an equal and ratable basis. 

43

  

        Section 4.13.    Line of Business.    The Company shall not, and shall not permit any of its Restricted
Subsidiaries
to, engage in any business other than Permitted Businesses, except to such extent that the activity would not be material to the Company and its Restricted Subsidiaries taken as a whole. 

        Section
4.14.    Corporate Existence.    Subject to Article 5 hereof, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect (i) its corporate existence, and the corporate, partnership or other existence of each of its Subsidiaries, in accordance with
the respective organizational documents (as the same may be amended from time to time) of the Company or any such Subsidiary and (ii) the rights (charter and statutory), licenses and franchises
of the Company and its Subsidiaries; provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of its Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders of the Notes. 

Section
4.15.    Offer to Repurchase Upon Change of Control.    (a) Upon the occurrence of a Change of Control, the Company
shall make an offer (a "Change of Control Offer") to each Holder of Notes to repurchase all or any part (equal to $1,000 or an integral multiple thereof) of such Holder's Notes at an offer price in
cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, thereon, if any, to the date of purchase (the "Change of Control
Payment"). Within 30 days following any Change of Control, the Company shall mail a notice to each Holder stating: (1) that the Change of Control Offer is being made pursuant to this
Section 4.15 and that all Notes tendered will be accepted for payment; (2) the purchase price and the purchase date, which shall be no earlier than 30 days and no later than
60 days from the date such notice is mailed (the "Change of Control Payment Date"); (3) that any Note not tendered will continue to accrue interest; (4) that, unless the Company
defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Payment
Date; (5) that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender the Notes, with the form entitled "Option of Holder to Elect
Purchase" on the reverse of the Notes completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day preceding the Change of Control
Payment Date; (6) that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the second Business Day preceding the Change of
Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder
is withdrawing his election to have the Notes purchased; and (7) that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered, which unpurchased portion must be equal to $1,000 in principal amount or an integral multiple thereof. The Company will comply with the requirements of
Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of Control. 

        (b)   On
the Change of Control Payment Date, the Company will, to the extent lawful, (1) accept for payment all Notes or portions thereof properly tendered pursuant to
the Change of Control Offer, (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions thereof so tendered and (3) deliver or
cause to be delivered to the Trustee the Notes so accepted together with an Officers' Certificate stating the aggregate principal amount of Notes or portions thereof being purchased by the Company.
The Paying Agent will promptly mail to each Holder of Notes so tendered the Change of Control Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be 

44

 

transferred
by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided
that each such new Note will be in a principal amount of $1,000 or an integral multiple thereof. The Company will publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date. 

        If
the Change of Control Payment Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid interest will be paid to the
Person in whose name a Note is registered at the close of business on such record date, and no additional interest will be payable to holders who tender in the Change of Control Offer. 

        The
Company shall fix the Change of Control Payment Date no earlier than 30 days and no later than 60 days after the Change of Control Offer is mailed as set forth above.
Prior to complying with the provisions of the preceding sentence, but in any event within 90 days following a Change of Control, the Company shall either repay all of its and its Subsidiaries'
outstanding Indebtedness or obtain the requisite consents, if any, under all agreements governing all such outstanding Indebtedness to the extent necessary to permit the repurchase of Notes required
by this Section 4.15. 

        Notwithstanding
the foregoing, the Company shall not be required to make a Change of Control Offer upon a Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.15 and purchases all Notes validly tendered and not withdrawn under such Change of Control
Offer. 

        To
the extent that the provisions of any securities laws or regulations conflict with provisions of this Section 4.15, the Company will comply with the applicable securities laws
and regulations and will not be deemed to have breached its obligations under this Section 4.15, by virtue thereof. 

        Section
4.16.    Limitation on Sale and Leaseback Transactions.    The Company shall not, and shall not permit any of
its Restricted Subsidiaries to, enter into any sale and leaseback transaction; provided that the Company or a Restricted Subsidiary of the Company may
enter into a sale and leaseback transaction if (i) the Company could have (a) incurred Indebtedness in an amount equal to the Attributable Debt relating to such sale and leaseback
transaction pursuant to the Debt to Cash Flow Ratio test set forth in the first paragraph of Section 4.09 hereof or pursuant to clause (vi) of the third paragraph of Section 4.09
hereof and (b) incurred a Lien to secure such Indebtedness pursuant to Section 4.12 hereof, (ii) the gross cash proceeds of such sale and leaseback transaction are at least equal
to the fair market value (as determined in good faith by the Board of Directors and set forth in an Officers' Certificate delivered to the Trustee) of the property that is the subject of such sale and
leaseback transaction and (iii) the transfer of assets in such sale and leaseback transaction is permitted by, and the Company or such Restricted Subsidiary applies the proceeds of such
transaction in compliance with, Section 4.10 hereof. 

        Section
4.17.    Payments for Consent.    The Company shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder of any Notes for or as an inducement to any consent, waiver or amendment
of any of the terms or provisions of this Indenture or the Notes unless such consideration is offered to be paid or is paid to all Holders of the Notes that consent, waive or agree to amend in the
time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 

        Section
4.18.    Limitation on Leases.    The Company shall not, directly or indirectly, lease all or substantially
all of its assets to any Person. 

45

 

 
 

ARTICLE V
  SUCCESSORS    
    

        Section
5.01.    Merger, Consolidation, or Sale of Assets.    The Company shall not consolidate or merge with or into
(whether or not the Company is the surviving corporation), or sell, assign, transfer, convey or otherwise dispose of all or substantially all of its properties or assets in one or more related
transactions, to another corporation, Person or entity unless (i) either (a) the Company is the surviving corporation or (b) the entity or the Person formed by or surviving any
such consolidation or merger (if other than the Company) or to which such sale, assignment, transfer, conveyance or other disposition shall have been made is a corporation organized or existing under
the laws of the United States, any state thereof or the District of Columbia; (ii) the entity or Person formed by or surviving any such consolidation or merger (if other than the Company) or
the entity or Person to which such sale,
assignment, transfer, conveyance or other disposition shall have been made assumes all the obligations of the Company under the Notes and this Indenture pursuant to a supplemental indenture in form
reasonably satisfactory to the Trustee, as well as under the Registration Rights Agreement and the Exchange Notes; (iii) immediately after such transaction no Default or Event of Default
exists; and (iv) except in the case of a merger of the Company with or into a Wholly Owned Restricted Subsidiary of the Company, the Company or the entity or Person formed by or surviving any
such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made will, immediately after such
transaction and after giving pro forma effect thereto as if such transaction had occurred at the beginning of the applicable four-quarter period, either (a) be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Debt to Cash Flow Ratio test set forth in the first paragraph of Section 4.09 hereof or (b) have a Debt to Cash Flow Ratio that
equals or exceeds the Debt to Cash Flow Ratio immediately prior to such transaction. 

        Section
5.02.    Successor Corporation Substituted.    Upon any consolidation or merger, or any sale, assignment,
transfer, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.01 hereof, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed to, and be substituted for (so that
from and after the date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of this Indenture referring to the "Company" shall refer instead to the successor
corporation and not to the Company), and may exercise every right and power of the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein;  provided, however,
 that the predecessor Company shall not be relieved from the obligation to pay the principal of and interest on the Notes except in
the case of a sale of all of the Company's assets that meets the requirements of Section 5.01 hereof. 

 
 

ARTICLE VI
  DEFAULTS AND REMEDIES    
    

        Section
6.01.    Events of Default.    An "Event of Default" occurs if: 

        (a)   the
Company defaults in the payment when due of interest on, or Liquidated Damages with respect to, the Notes and such default continues for a period of 30 days; 

        (b)   the
Company defaults in the payment when due of principal of or premium, if any, on the Notes when the same becomes due and payable at maturity, upon redemption
(including in connection with an offer to purchase) or otherwise; 

        (c)   the
Company fails to comply for (i) a period of 30 days with any of the provisions of Section 4.10 or 4.15 hereof or (ii) 30 days
after notice to the Company by the Trustee or the 

46

 

Holders
of at least 25% in aggregate principal amount of the Notes then outstanding voting as a single class, with other provisions of Article 4 or Section 5.01 hereof; 

        (d)   the
Company fails to observe or perform any other covenant, representation, warranty or other agreement in this Indenture or the Notes for 60 days after notice to
the Company by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding voting as a single class; 

        (e)   the
Company or any Restricted Subsidiary fails to pay Indebtedness within any applicable grace period after final maturity or the acceleration of any Indebtedness by the
holders thereof because of a default and the total amount of such Indebtedness unpaid or accelerated at any time exceeds $20.0 million; 

        (f)    a
final judgment or final judgments for the payment of money are entered by a court or courts of competent jurisdiction against the Company or any of its Restricted
Subsidiaries and such judgment or judgments are not paid, discharged or stayed for a period (during which execution shall not be effectively stayed) of 60 days, provided that the aggregate of
all such undischarged judgments exceeds $20.0 million; 

        (g)   the
Company or any Restricted Subsidiary that constitutes a Significant Subsidiary or any group of Restricted Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law: 

	(i)
	commences
a voluntary case,

	(ii)
	consents
to the entry of an order for relief against it in an involuntary case,

	(iii)
	consents
to the appointment of a Custodian of it or for all or substantially all of its property,

	(iv)
	makes
a general assignment for the benefit of its creditors, or

	(v)
	generally
is not paying its debts as they become due; or 

        (h)   a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

	(i)
	is
for relief against the Company or any Restricted Subsidiary that constitutes a Significant Subsidiary or any group of Restricted Subsidiaries that, taken as a whole, would
constitute a Significant Subsidiary in an involuntary case;

	(ii)
	appoints
a Custodian of the Company or any Restricted Subsidiary that constitutes a Significant Subsidiary or any group of Restricted Subsidiaries that, taken as a whole, would
constitute a Significant Subsidiary or for all or substantially all of the property of the Company or any Restricted Subsidiary that constitutes a Significant Subsidiary or any group of Restricted
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary; or

	(iii)
	orders
the liquidation of the Company or any Restricted Subsidiary that constitutes a Significant Subsidiary or any group of Restricted Subsidiaries that, taken as a whole, would
constitute a Significant Subsidiary; 

and
the order or decree remains unstayed and in effect for 60 consecutive days. 

        Section
6.02.    Acceleration.    If any Event of Default (other than an Event of Default specified in
clause (g) or (h) of Section 6.01 hereof with respect to the Company, any Restricted Subsidiary that constitutes a Significant Subsidiary or any group of Restricted Subsidiaries
that, taken as a whole, would constitute a Significant Subsidiary) occurs and is continuing, either the Trustee or the Holders of 

47

 

at
least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Upon any such declaration, the Notes shall become due and payable
immediately. Notwithstanding the foregoing, if an Event of Default specified in clause (g) or (h) of Section 6.01 hereof occurs with respect to the Company, any Restricted
Subsidiary that constitutes a Significant Subsidiary or any group of Restricted Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary, all outstanding Notes shall become due
and payable without further action or notice. The Holders of a majority in aggregate principal amount of the then outstanding Notes by written notice to the Trustee may on behalf of all of the Holders
rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of principal, interest or premium
that has become due solely because of the acceleration) have been cured or waived. 

        If
an Event of Default occurs on or after April 15, 2008 by reason of any willful action or inaction taken or not taken by or on behalf of the Company with the intention of
avoiding payment of the premium that the Company would have had to pay if the Company then had elected to redeem the Notes pursuant to Section 3.07 hereof, then, upon acceleration of the Notes,
an equivalent premium shall also become and be immediately due and payable, to the extent permitted by law, anything in this Indenture or in the Notes to the contrary notwithstanding. If an Event of
Default occurs prior to April 15, 2008 by reason of any willful action or inaction taken or not taken by or on behalf of the Company with the intention of avoiding the prohibition on redemption
of the Notes prior to such date, then, upon acceleration of the Notes, the premium specified for the twelve months commencing on such date pursuant to Section 3.07 hereof shall also become and
be immediately due and payable to the extent permitted by law. 

        Section
6.03.    Other Remedies.    If an Event of Default occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of principal, premium and Liquidated Damages, if any, and interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 

        The
Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of
a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law. 

        Section
6.04.    Waiver of Past Defaults.    Holders of not less than a majority in aggregate principal amount of the
then outstanding Notes by notice to the Trustee may on behalf of the Holders of all of the Notes
waive any existing Default or Event of Default and its consequences hereunder, except a continuing Default or Event of Default in the payment of the principal of, premium and Liquidated Damages, if
any, or interest on, the Notes (including in connection with an offer to purchase) (provided, however,
that the Holders of a majority in aggregate principal amount of the then outstanding Notes may rescind an acceleration and its consequences, including any related payment default that resulted from
such acceleration). Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 

        Section
6.05.    Control by Majority.    Holders of a majority in principal amount of the then outstanding Notes may
direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to
follow any direction that conflicts with law or this Indenture that the Trustee determines may be unduly prejudicial to the rights of other Holders or that may involve the Trustee in personal
liability. 

48

 

        Section
6.06.    Limitation on Suits.    A Holder of a Note may pursue a remedy with respect to this Indenture or the
Notes only if: 

        (a)   the
Holder of a Note gives to the Trustee written notice of a continuing Event of Default; 

        (b)   the
Holders of at least 25% in principal amount of the then outstanding Notes make a written request to the Trustee to pursue the remedy; 

        (c)   such
Holder of a Note or Holders offer and, if requested, provide to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense; 

        (d)   the
Trustee does not comply with the request within 60 days after receipt of the request and the offer and, if requested, the provision of indemnity; and 

        (e)   during
such 60-day period the Holders of a majority in principal amount of the then outstanding Notes do not give the Trustee a direction inconsistent with
the request. 

        A
Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority over another Holder of a Note. 

        Section
6.07.    Rights of Holders to Receive Payment.    Notwithstanding any other provision of this Indenture, the
right of any Holder of a Note to receive payment of principal, premium and Liquidated Damages, if any, and interest on the Note, on or after the respective due dates expressed in the Note (including
in connection with an offer to purchase), or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such
Holder. 

        Section
6.08.    Collection Suit by Trustee.    If an Event of Default specified in Section 6.01(a) or
(b) hereof occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of,
premium on and Liquidated Damages, if any, and interest remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

        Section
6.09.    Trustee May File Proofs of Claim.    The Trustee is authorized to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company (or any other obligor upon the Notes), its creditors or its property and shall
be entitled and empowered to collect, receive and distribute any money or other property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof. To the
extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof
out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money,
securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting
the Notes or the rights of any 

49

 

Holder,
or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

        Section
6.10.    Priorities.    If the Trustee collects any money pursuant to this Article, it shall pay out the money
in the following order: 

        First:
to the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof, including payment of all compensation, expense and liabilities incurred, and all
advances made, by the Trustee and the costs and expenses of collection; 

        Second:
to Holders for amounts due and unpaid on the Notes for principal, premium, if any, and interest, ratably, without preference or priority of any kind, according to the amounts due
and payable on the Notes for principal, premium, if any, and interest, respectively; and 

        Third:
to the Company or to such party as a court of competent jurisdiction shall direct in writing. 

        The
Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.10. 

        Section
6.11.    Undertaking for Costs.    In any suit for the enforcement of any right or remedy under this Indenture
or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the
costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof,
or a suit by Holders of more than 10% in principal amount of the then outstanding Notes. 

 
 

ARTICLE VII
  TRUSTEE    
    

        Section 7.01.    Duties of Trustee.    

        (a)   If
an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree
of care and skill in its exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 

        (b)   Except
during the continuance of an Event of Default: 

	(i)
	the
duties of the Trustee shall be determined solely by the express provisions of this Indenture and the Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

	(ii)
	in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates
or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall examine the certificates and opinions which by any provision hereof are
specifically required to be furnished to the Trustee to determine whether or not they substantially conform to the requirements of this Indenture but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein. 

50

  

        (c)   The
Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 

	(i)
	this
paragraph does not limit the effect of paragraph (b) of this Section;

	(ii)
	the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

	(iii)
	the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05
hereof. 

        (d)   Whether
or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), and
(c) of this Section. 

        (e)   No
provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability. The Trustee shall be under no obligation to exercise any
of its rights and powers under this Indenture at the request of any Holders, unless such Holder shall have offered to the Trustee security and indemnity satisfactory to it against any loss, liability
or expense. 

        (f)    The
Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee
need not be segregated from other funds except to the extent required by law. 

Section
7.02.    Rights of Trustee.    (a) The Trustee may conclusively rely upon any document believed by it to be genuine
and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in such document. 

        (b)   Before
the Trustee acts or refrains from acting, it may require an Officers' Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action
it takes or omits to take in good faith in reliance on such Officers' Certificate or Opinion of Counsel. The Trustee may consult with counsel of its selection and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 

        (c)   The
Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent or attorney appointed with due care. 

        (d)   The
Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it
by this Indenture. 

        (e)   Unless
otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the
Company. 

        (f)    The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders unless
such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities that might be incurred by it in compliance with such
request or direction. 

        (g)   The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the
Company, 

51

 

personally
or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation. 

        (h)   The
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Notes and this Indenture. 

        (i)    The
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall
be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person employed to act hereunder. 

        (j)    The
Trustee may request that the Company deliver an Officers' Certificate setting forth the names of individuals and/or titles of officers authorized at such time to
take specific actions pursuant to this Indenture, which Officers' Certificate may be signed by any person authorized to sign an Officers' Certificate, including any person specified as so authorized
in any such certificates. 

        Section
7.03.    Individual Rights of Trustee.    The Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee
acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee or resign. Any Agent may do the same with like rights
and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof. 

        Section
7.04.    Trustee's Disclaimer.    The Trustee shall not be responsible for and makes no representation as to
the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Company's use of the proceeds from the Notes or any money paid to the Company or upon the Company's
direction under any provision of this Indenture, it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of
authentication. 

        Section
7.05    Notice of Defaults.    If a Default or Event of Default occurs and is continuing and if it is actually
known to a Responsible Officer of the Trustee, the Trustee shall mail to Holders a notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or
Event of Default in payment of principal of, premium on, or Liquidated Damages, if any, or interest on any Note, the Trustee may withhold the notice if and so long as a committee of its Responsible
Officers in good faith determines that withholding the notice is in the interests of the Holders of the Notes. 

        Section
7.06    Reports by Trustee to Holders of the Notes.    Within 60 days after each May 15
beginning with the May 15 following the date of this Indenture, and for so long as Notes remain outstanding, the Trustee shall mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need be
transmitted). The Trustee also shall comply with TIA § 313(b)(2). The Trustee shall also transmit by mail all reports as required by TIA § 313(c). 

        A
copy of each report at the time of its mailing to the Holders shall be mailed to the Company and filed with the SEC and each stock exchange on which the Notes are listed, if any, in
accordance with TIA § 313(d). The Company shall promptly notify the Trustee if the Notes are listed on any stock exchange or delisted therefrom. 

52

 

        Section
7.07.    Compensation and Indemnity.    The Company shall pay to the Trustee from time to time such
compensation as the Company and the Trustee shall from time to time agree in writing for its acceptance of this Indenture and services hereunder. The Trustee's compensation shall not be limited by any
law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in
addition to the compensation for its services. Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee's agents and counsel. 

        The
Company shall indemnify each of the Trustee or any predecessor Trustee and their agents for, and hold them harmless against any and all losses, liabilities, damages, claims or
expenses including reasonable attorneys' fees and expenses and taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it arising out of or in
connection with the acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture against the Company (including this
Section 7.07) and defending itself against any claim (whether asserted by the Company or any Holder or any other person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability or expense shall have been caused by its own negligence or bad faith. The Trustee shall notify the Company promptly of any
claim of which a Responsible Officer receives written notice for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations
hereunder. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such
counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. 

        The
obligations of the Company under this Section 7.07 shall survive the satisfaction and discharge of this Indenture and the resignation or removal of the Trustee. 

        To
secure the Company's payment obligations in this Section, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that held
in trust to pay principal and interest on particular Notes. Such Lien shall survive the satisfaction and discharge of this Indenture. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(g) or (h) hereof occurs, the expenses and the compensation for the
services (including the
fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law. 

        The
Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent applicable. 

        Section
7.08.    Replacement of Trustee.    A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of appointment as provided in this Section. 

        The
Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders of a majority in principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if: 

        (a)   the
Trustee fails to comply with Section 7.10 hereof; 

        (b)   the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; 

        (c)   a
Custodian or public officer takes charge of the Trustee or its property; or 

        (d)   the
Trustee becomes incapable of acting. 

53

 

        If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 

        If
a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee (at the expense of the Company), the Company, or
the Holders of at
least 10% in principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

        If
the Trustee, after written request by any Holder of a Note who has been a Holder of a Note for at least six months, fails to comply with Section 7.10, such Holder of a Note may
petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 

        A
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of
the Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, provided all sums owing to the Trustee hereunder have been paid and subject to the
Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company's obligations under Section 7.07 hereof shall
continue for the benefit of the retiring Trustee. 

        Section
7.09.    Successor Trustee by Merger, etc.    If the Trustee consolidates, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee. 

        Section
7.10.    Eligibility; Disqualification.    There shall at all times be a Trustee hereunder that is a
corporation organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $100 million as set forth in its most recent published annual report of
condition. 

        This
Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is subject to TIA § 310(b). 

        Section
7.11.    Preferential Collection of Claims Against Company.    The Trustee is subject to TIA §
311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 

 
 

ARTICLE VIII
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE    
    

        Section
8.01    Option to Effect Legal Defeasance or Covenant Defeasance.    The Company may, at the option of its
Board of Directors evidenced by a resolution set forth in an Officers' Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article Eight. 

        Section
8.02.    Legal Defeasance and Discharge.    Upon the Company's exercise under Section 8.01 hereof of
the option applicable to this Section 8.02, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its
obligations with respect to all outstanding Notes on the date the conditions set forth below are satisfied (hereinafter, "Legal Defeasance"). For this purpose, Legal Defeasance means that the Company
shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes, which shall thereafter be deemed to be "outstanding" only for the purposes of
Section 8.05 hereof and 

54

 

the
other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:
(a) the rights of Holders of outstanding Notes to receive solely from the trust fund described in Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of
the principal of, premium, if any, Liquidated Damages, if any, and interest on such Notes when such payments are due, (b) the Company's obligations with respect to such Notes under
Article 2 and Section 4.02 hereof, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company's obligations in connection therewith and
(d) this Article Eight. Subject to compliance with this Article Eight, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof. 

        Section
8.03.    Covenant Defeasance.    Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants
contained in Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17 and 4.18 hereof with respect to the outstanding Notes on and after the date the conditions set forth in
Section 8.04 are satisfied (hereinafter, "Covenant Defeasance"), and the Notes shall thereafter be deemed not "outstanding" for the purposes of any direction, waiver, consent or declaration or
act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed "outstanding" for all other purposes hereunder (it being understood that such
Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes,
the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition,
upon the Company's exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, Sections 6.01(d) through 6.01(f) hereof shall not constitute Events of Default. 

        Section
8.04.    Conditions to Legal or Covenant Defeasance.    The following shall be the conditions to the
application of either Section 8.02 or 8.03 hereof to the outstanding Notes: 

        In
order to exercise either Legal Defeasance or Covenant Defeasance: 

        (a)  the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in United States dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a firm of independent public accountants, to pay the principal of, premium, if any, Liquidated Damages,
if any, and interest on the outstanding Notes on the Stated Maturity or on the applicable redemption date, as the case may be, and the Company must specify whether the Notes are being defeased to
maturity or to a particular redemption date; 

        (b)  in
the case of an election under Section 8.02 hereof, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States confirming that
(A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date of this Indenture, there has been a change in the
applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the outstanding Notes will not recognize income, gain
or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the 

55

 

same
amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

        (c)  in
the case of an election under Section 8.03 hereof, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States confirming that
the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

        (d)  no
Default or Event of Default shall have occurred and be continuing, either (x) on the date of such deposit (other than a Default or Event of Default resulting
from the borrowing of funds to be applied to such deposit); or (y) insofar as Sections 6.01(g) or 6.01(h) hereof is concerned, at any time in the period ending on the 91st day after the date of
deposit; 

        (e)  such
Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) to which the Company or any of its Restricted Subsidiaries is a party or by which the Company or any of its Restricted Subsidiaries is bound; 

        (f)  the
Company shall have delivered to the Trustee an Opinion of Counsel (which may be subject to customary exceptions) to the effect that after the 91st day following the
deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally; 

        (g)  the
Company shall have delivered to the Trustee an Officers' Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders
over the other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or others; and 

        (h)  the
Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating
to the Legal Defeasance or the Covenant Defeasance have been complied with. 

        Section
8.05.    Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.    Subject to Section 8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the
Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the "Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes shall be held in
trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as
Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium on, if any, Liquidated Damages, if any, and
interest, but such money need not be segregated from other funds except to the extent required by law. 

        The
Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the
outstanding Notes. 

        Anything
in this Article Eight to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the written request of the Company any money or
non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in
a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof), are in 

56

 

excess
of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 

        Section
8.06.    Repayment to Company.    Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium on, if any, Liquidated Damages, if any, or interest on any Note and remaining unclaimed for two years after such principal, and
premium, if any, or interest or Liquidated Damages, if any, has become due and payable shall be paid to the Company on its written request or (if then held by the Company) shall be discharged from
such trust; and the Holder of such Note shall thereafter, as an unsecured creditor, look only to the Company for payment thereof, and all liability of the Trustee or such paying agent with respect to
such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after
a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the
Company. 

        Section
8.07.    Reinstatement.    If the Trustee or paying agent is unable to apply any United States dollars or
non-callable Government Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the Company's obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or paying agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case
may be; provided, however, that, if the Company makes any payment of principal of, premium on, if any, Liquidated Damages, if any, or interest on any Note following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or paying agent. 

 
 

ARTICLE IX
  AMENDMENT, SUPPLEMENT AND WAIVER    
    

        Section
9.01.    Without Consent of Holders.    Notwithstanding Section 9.02 of this Indenture, the Company and
the Trustee may amend or supplement this Indenture or the Notes without the consent of any Holder of a Note: 

        (a)   to
cure any ambiguity, defect or inconsistency; 

        (b)   to
provide for uncertificated Notes in addition to or in place of certificated Notes; 

        (c)   to
provide for the assumption of the Company's obligations to the Holders of the Notes by a successor to the Company pursuant to Article 5 hereof; 

        (d)   to
make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights hereunder of any
Holder of the Note; or 

        (e)   to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA. 

        Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee shall join with the Company in the execution of any amended or supplemental Indenture authorized or permitted by the terms
of this 

57

 

Indenture
and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into such amended or supplemental Indenture
that adversely affects its own rights, duties or immunities under this Indenture or otherwise. 

        Section 9.02.    With Consent of Holders.    Except as provided below in this Section 9.02, the Company
and the Trustee may amend or supplement this Indenture (including Sections 3.09, 4.10 and 4.15 hereof) and the Notes may be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the Notes then outstanding voting as a single class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange
offer for, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if
any, Liquidated Damages, if any, or interest on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture or the
Notes may be waived with the
consent of the Holders of a majority in principal amount of the then outstanding Notes voting as a single class (including, without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, the Notes). Section 2.10 hereof shall determine which Notes are considered to be "outstanding" for purposes of this Section 9.02. 

        Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee
shall join with the Company in the execution of such amended or supplemental Indenture unless such amended or supplemental Indenture directly adversely affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental Indenture. 

        It
shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if
such consent approves the substance thereof. 

        After
an amendment, supplement or waiver under this Section becomes effective, the Company shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amended or supplemental Indenture
or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal amount of the Notes then outstanding voting as a single class may waive compliance in a particular
instance by the Company with any provision of this Indenture or the Notes. However, without the consent of each Holder affected, an amendment or waiver under this Section 9.02 may not (with
respect to any Notes held by a non-consenting Holder): 

        (a)   reduce
the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver; 

58

  

        (b)   reduce
the principal of or change the fixed maturity of any Note or alter any of the provisions with respect to the redemption of the Notes except as provided above with
respect to Sections 3.09, 4.10 and 4.15 hereof; 

        (c)   reduce
the rate of or change the time for payment of interest on any Note; 

        (d)   waive
a Default or Event of Default in the payment of principal of or premium, if any, Liquidated Damages, if any, or interest on the Notes (except a rescission of
acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the then outstanding Notes and a waiver of the payment default that resulted from such acceleration); 

        (e)   make
any Note payable in money other than that stated in the Notes; 

        (f)    make
any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders to receive payments of principal of or premium, if any,
Liquidated Damages, if any, or interest on the Notes; 

        (g)   waive
a redemption payment with respect to any Note (other than a payment required by Sections 3.09, 4.10 or 4.15 hereof); or 

        (h)   make
any change in Section 6.04 or 6.07 hereof or in the foregoing amendment and waiver provisions. 

        Section
9.03.    Compliance with Trust Indenture Act.    Every amendment or supplement to this Indenture or the Notes
shall be set forth in a amended or supplemental Indenture that complies with the TIA as then in effect. 

        Section
9.04.    Revocation and Effect of Consents.    Until an amendment, supplement or waiver becomes effective, a
consent to it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder's Note, even if notation of the consent is not made on any Note. However, any such Holder
of a Note or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder. 

        Section
9.05.    Notation on or Exchange of Notes.    The Trustee may place an appropriate notation about an
amendment, supplement or waiver on any Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new
Notes that reflect the amendment, supplement or waiver. 

        Failure
to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver. 

        Section
9.06.    Trustee to Sign Amendments, etc.    The Trustee shall sign any amended or supplemental Indenture
authorized pursuant to this Article Nine if the amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amendment or
supplemental Indenture until the Board of Directors approves it. In executing any amended or supplemental indenture, the Trustee shall be entitled to receive and (subject to Section 7.01
hereof) shall be fully protected in relying upon, in addition to the documents required by Section 11.04 hereof, an Officer's Certificate and an Opinion of Counsel stating that the execution of
such amended or supplemental indenture is authorized or permitted by this Indenture. 

59

 

 
 

ARTICLE X
  SATISFACTION AND DISCHARGE    
    

        Section 10.01.    Satisfaction and Discharge    

        This
Indenture will be discharged and will cease to be of further effect, except as to surviving rights of registration of transfer or exchange of the Notes, as to all Notes issued
hereunder, when: 

        (a)   either:

	(i)
	all
Notes that have been previously authenticated (except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose payment money has previously been
deposited in trust or segregated and held in trust by the Company and is thereafter repaid to the Company or discharged from the trust) have been delivered to the Trustee for cancellation; or

	(ii)
	all
Notes that have not been previously delivered to the Trustee for cancellation (A) have become due and payable or (B) will become due and payable at their maturity
within one year or (C) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of a notice of redemption by the Trustee, and the Company
has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient without consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not
previously delivered to the Trustee for cancellation for principal, premium, if any, and interest and Liquidated Damages, if any, on the Notes to the date of deposit, in the case of Notes that have
become due and payable, or to the Stated Maturity or redemption date, as the case may be; 

        (b)   the
Company has paid or caused to be paid all other sums payable by it under this Indenture; 

        (c)   no
Default or Event of Default has occurred and is continuing on the date of such deposit or will occur as a result of such deposit and such deposit will not result in a
breach or violation of, or constitute a default under, any other instrument to which the Company is a party or by which the Company is bound; and 

        (d)   the
Company delivers to the Trustee an Officers' Certificate and Opinion of Counsel stating that all conditions precedent under this Indenture relating to the
satisfaction and discharge of this Indenture have been satisfied. 

        Section
10.02.    Deposited Cash and Government Securities.    Subject to Section 10.03 hereof, all cash and
non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 10.02, the
"Trustee") pursuant to Section 10.01 hereof in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in
respect of principal, premium, if any, and interest and Liquidated Damages, if any, but such cash and securities need not be segregated from other funds except to the extent required by law. 

        Section
10.03.    Repayment to Company.    Any cash or non-callable Government Securities deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any, or interest or Liquidated Damages, if any, on, any Note and remaining
unclaimed for two years after such principal, and premium, if any, or interest or Liquidated Damages, if any, has become due and payable shall be paid to the Company on its request or (if then 

60

 

held
by the Company) shall be discharged from such trust; and the Holder shall thereafter, as an unsecured creditor, look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such cash and securities, and all liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in The New York
Times and The Wall Street Journal (national edition), notice that such cash and securities remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from
the date of such notification or publication, any unclaimed balance of such cash and securities then remaining will be repaid to the Company. 

        Section
10.04.    Reinstatement.    If the Trustee or paying agent is unable to apply any United States dollars or
non-callable Government Securities in accordance with Sections 10.01 and 10.02, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company's obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to
Sections 10.01 and 10.02 hereof until such time as the Trustee or paying agent is permitted to apply all such money in accordance with Sections 10.01 and 10.02 hereof, as the case may be; provided,
however, that, if the Company makes any payment of principal of, premium on, if any, or interest or Liquidated Damages, if any, on any Note following the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or paying agent. 

 
 

ARTICLE XI
  MISCELLANEOUS    
    

        Section
11.01.    Trust Indenture Act Controls.    If any provision of this Indenture limits, qualifies or conflicts
with the duties imposed by TIA § 318(c), the imposed duties shall control. 

        Section
11.02.    Notices.    Any notice or communication by the Company or the Trustee to the others is duly given if
in writing (which may be via facsimile) and delivered in Person or mailed by first class mail. 

If
to the Company:

Six Flags, Inc.

122 East 42nd Street

New York, New York 10168

Attention: Chief Financial Officer

Facsimile number: (212) 949-6203

Telephone number: (212) 599-4690 

With
a copy to: 

Weil,
Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention: David Lefkowitz, Esq.

Facsimile number: (212) 310-8007 

If
to the Trustee: 

The
Bank of New York

101 Barclay Street-8W

New York, New York 10286

61

 

Attention:
Julie Salovitch-Miller

Facsimile number: (212) 815-5707 

        The
Company or the Trustee, by notice to the others may designate additional or different addresses for subsequent notices or communications. 

        All
notices and communications (other than those sent to Holders) shall be in writing and shall be deemed to have been duly given when received. 

        Any
notice or communication to a Holder shall be mailed by first class mail to its address shown on the register kept by the Registrar. Any notice or communication shall also be so
mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. 

        If
the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time. 

        Section
11.03.    Communication by Holders with Other Holders.    Holders may communicate pursuant to TIA
§ 312(b) with other Holders with respect to their rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA
§ 312(c). 

        Section
11.04.    Certificate and Opinion as to Conditions Precedent.    Upon any request or application by the
Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee: 

        (a)   an
Officers' Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 11.05 hereof)
stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied; and 

        (b)   an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 11.05 hereof) stating
that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 

        Section
11.05.    Statements Required in Certificate or Opinion.    Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA §
314(e) and shall include: 

        (a)   a
statement that the Person making such certificate or opinion has read such covenant or condition; 

        (b)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are
based; 

        (c)   a
statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been satisfied; and 

        (d)   a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied. 

        Section
11.06.    Rules by Trustee and Agents.    The Trustee may make reasonable rules for action by or at a meeting
of Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions. 

62

 

        Section
11.07.    No Personal Liability of Directors, Officers, Employees and Stockholders.    No past, present or
future director, officer, employee, incorporator or stockholder of the Company, as such, shall have any liability for any obligations of the Company under the Notes or this Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. 

        Section
11.08.    Governing Law.    THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE
THIS INDENTURE AND THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

        Section
11.09.    No Adverse Interpretation of Other Agreements.    This Indenture may not be used to interpret any
other indenture, loan or debt agreement of the Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 

        Section
11.10.    Successors.    All agreements of the Company in this Indenture and the Notes shall bind its
successors. All agreements of the Trustee in this Indenture shall bind its successors. 

        Section
11.11    Severability.    In case any provision in this Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        Section
11.12.    Counterpart Originals.    The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same agreement. 

        Section
11.13.    Table of Contents, Headings, etc.    The Table of Contents, Cross-Reference Table and Headings of
the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part of this Indenture and shall in no way modify or restrict any of the
terms or provisions hereof. 

[Signatures
on following page] 

63

  

 
 

SIGNATURES    
    

Dated
as of April 16, 2003 

	 	 	SIX FLAGS, INC.
	

 	
 	

By:	
 	

/s/  JAMES F. DANNHAUSER      
 Name:  James F. Dannhauser

Title:  Chief Financial Officer
	

 	
 	

THE BANK OF NEW YORK
	

 	
 	

By:	
 	

/s/  JULIE SALOVITCH-MILLER      
 Name:  Julie Salovitch-Miller

Title:    Vice President

64

  

 
 

EXHIBIT A    
    

CUSIP

[Face
of Note] 

93/4% Senior Notes due 2013

	No. 001	 	Principal Amount $            

SIX FLAGS, INC.  

promises to pay to CEDE & CO., or registered assigns, the principal sum of                        DOLLARS
($                        ) on April 15, 2013. 

Interest
Payment Dates: April 15 and October 15, commencing October 15, 2003 

Record
Dates: April 1 and October 1 

	 	 	Dated: April 16, 2003
	

 	
 	

SIX FLAGS, INC.
	

 	
 	

By:	

 
	 	 	 	
 Name: [James F. Dannhauser]

Title: [Chief Financial Officer]

	

This is one of the Global Notes referred to in the within-mentioned Indenture:	
 	

 	
 	

 
	

THE BANK OF NEW YORK,

as Trustee	
 	

 	
 	

 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
 Authorized Signatory	 	 	 	 

65

 
[Back
of Note] 

93/4%
Senior Notes due 2013 

[Insert the Global Note Legend, if applicable, pursuant to the provisions of the Indenture]  

[Insert the Private Placement Legend, if applicable, pursuant to the provisions of the Indenture]  

93/4%
Senior Notes due 2013 

        Capitalized
terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

        1.    Interest.    Six Flags, Inc., a Delaware corporation (the "Company"), promises to pay interest on the
principal amount of this Note at 93/4% per annum from April 16, 2003 until maturity and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of the
Registration Rights Agreement. The Company will pay interest and Liquidated Damages, if any, semi-annually on April 15 and October 15 of each such year, or if any such day is
not a business day, on the next succeeding business day (each an "Interest Payment Date"). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance; provided that if there is no existing Default in the payment of interest, and if this Note is
authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided,
further, that the first Interest Payment Date shall be October 15, 2003. The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum in excess of the
rate then in effect; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any,
(without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months. 

        2.    Method of Payment.    The Company will pay interest on the Notes (except defaulted interest) and Liquidated
Damages, if any, to the Persons who are registered Holders at the close of business on the April 1 or October 1 next preceding the Interest Payment Date, even if such Notes are canceled
after such record date and on or before such Interest Payment Date, except as provided in Section 2.14 of the Indenture with respect to defaulted interest. The Notes will be payable as to
principal, premium, if any, Liquidated Damages, if any, and interest at the office or agency of the Company maintained for such purpose within or without The City and State of New York, or, at the
option of the Company, payment of interest and Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders, and  provided that payment
by wire transfer of immediately available funds will be required with respect to principal of and interest and Liquidated Damages,
if any, and premium on, the Global Note and all other Notes the Holders of which shall have provided wire transfer instructions to the Company or the paying agent on or prior to the applicable record
date. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

        3.    Paying Agent and Registrar.    Initially, The Bank of New York, the Trustee under the Indenture, will act as
paying agent and registrar. The Company may change any paying agent or registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity. 

        4.    Indenture.    The Company issued the Notes under an Indenture, dated as of April 16, 2003 (the
"Indenture"), between the Company and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and 

66

 

Holders
are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling. The Notes are obligations of the Company initially in the aggregate principal amount of $430.0 million. Subject to compliance with Section 2.01
of the Indenture, the Company is permitted to issue Additional Notes under the Indenture in an unlimited principal amount. Any such Additional Notes that are actually issued will be treated as issued
and outstanding Notes (and as the same class as the initial Notes) for all purposes of the Indenture, unless the context clearly indicated otherwise. 

5.    Optional Redemption.    (a) Except as set forth in subparagraph (b) of this Paragraph 5, the Company
shall not have the option to redeem the Notes prior to April 15, 2008. On or after April 15, 2008, the Company shall have the option to redeem the Notes, in whole or in part, upon not
less than 30 nor more than 60 days' notice, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if
any, thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on April 15 of the years indicated below: 

	Year
 
	 	Percentage
	 
	2008	 	104.875	%
	2009	 	103.250	%
	2010	 	101.625	%
	2011 and thereafter	 	100.000	%

        (b)   Notwithstanding
the provisions of subparagraph (a) of this Paragraph 5, at any time prior to April 15, 2006, the Company may on any one or more
occasions redeem up to 35% of the aggregate principal amount of Notes (which includes Additional Notes, if any) originally issued under the Indenture at a redemption price of 109.750% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date with the net cash proceeds of one or more Public Equity Offerings and/or the net cash proceeds
of a Strategic Equity Investment; provided that at least 65% of the aggregate principal amount of Notes (which includes Additional Notes, if any)
originally issued remains outstanding immediately after the occurrence of each such redemption (excluding Notes held by the Company and its Subsidiaries); and provided
further, that any such redemption shall occur within 60 days of the date of the closing of each such Public Equity Offering and/or Strategic Equity Investment. 

        6.    Mandatory Redemption.    Except as set forth in paragraph 7 below, the Company shall not be required to
make mandatory redemption or sinking fund payments with respect to the Notes. 

7.    Repurchase at Option of Holder.    (a) If there is a Change of Control, the Company shall be required to make an offer
(a "Change of Control Offer") to repurchase all or any part (equal to $1,000 or an
integral multiple thereof) of each Holder's Notes at a purchase price in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any,
thereon, if any, to the date of purchase (the "Change of Control Payment"). Within 30 days following any Change of Control, the Company shall mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture. 

        (b)   If
the Company or a Restricted Subsidiary consummates any Asset Sales, when the aggregate amount of Excess Proceeds exceeds $20.0 million, the Company shall
commence an offer to all Holders (as "Asset Sale Offer") pursuant to Section 4.10 of the Indenture to purchase the maximum principal amount of Notes and such other Indebtedness of the Company
that is pari passu with the Notes containing provisions similar to those set forth in the Indenture with respect to offers to purchase or redemptions
with the proceeds of sales of assets, that may be purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal 

67

 

amount
thereof plus accrued and unpaid interest and Liquidated Damages, if any, thereon, if any, to the date fixed for the closing of such offer, in accordance with the procedures set forth in the
Indenture. To the extent that the aggregate amount of Notes and other indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Company (or such Subsidiary) may use
such deficiency for any purpose not otherwise prohibited by the Indenture. If the aggregate amount of Notes and other indebtedness surrendered by Holders thereof exceeds the amount of Excess Proceeds,
the Trustee shall select the Notes to be purchased on a pro rata basis. Holders that are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to any related
purchase date and may elect to have such Notes purchased by completing the form entitled "Option of Holder to Elect Purchase" on the reverse of the Notes. 

        8.    Notice of Redemption.    Notice of redemption will be mailed at least 30 days but not more than
60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 

        9.    Denominations, Transfer, Exchange.    The Notes are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need
not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not
exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a record date and the corresponding Interest
Payment Date. 

        10.    Persons Deemed Owners.    The registered Holder of a Note may be treated as its owner for all purposes. 

        11.    Amendment, Supplement and Waiver.    Subject to certain exceptions, the Indenture or the Notes may be amended
or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes voting as a single class, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes voting as a single class. Without the
consent of any Holder of a Note, the Indenture or the Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in
place of certificated Notes, to provide for the assumption of the Company's obligations to Holders of the Notes in case of a merger or consolidation or sale of all or substantially all of the
Company's assets, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any such
Holder, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act. 

        12.    Defaults and Remedies.    Events of Default include: (i) default for 30 days in the payment when
due of interest on, or Liquidated Damages with respect to, the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes when the same becomes due and payable,
upon redemption (including in connection with an offer to purchase) or otherwise, (iii) failure by the Company to comply for (A) a period of 30 days with any of the provisions of
Section 4.10 or 4.15 of the Indenture or (B) 30 days after notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then
outstanding voting as a single class with any other provisions of Article 4 or Section 5.01 of the Indenture (in each case, other than a failure to 

68

 

purchase
Notes); (iv) failure by the Company for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in principal amount of the Notes then outstanding
voting as a single class to comply with certain other agreements in the Indenture or the Notes; (v) failure to pay Indebtedness within any applicable grace period after final maturity or the
acceleration of such Indebtedness because of a default where the total amount of such Indebtedness unpaid or accelerated at any time exceed $20.0 million; (vi) certain final judgments
for the payment of money that remain undischarged for a period of 60 days provided that the aggregate of all such undischarged judgments exceeds $20.0 million and (vii) certain
events of bankruptcy or insolvency with respect to the Company or any of its Restricted Subsidiaries. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from certain
events of bankruptcy or insolvency, all outstanding Notes will become due and payable without further action or notice. Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes
waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest or Liquidated Damages on or the
principal of, the Notes. The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company is required upon becoming aware of any Default
or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 

        13.    Trustee Dealings with Company.    The Trustee, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 

        14.    No Recourse Against Others.    A director, officer, employee, incorporator or stockholder, of the Company, as
such, shall not have any liability for any obligations of the Company under the Notes or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.
Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 

        15.    Authentication.    This Note shall not be valid until authenticated by the manual signature of the Trustee or
an authenticating agent. 

        16.    Abbreviations.    Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM
(= tenants in common), TEN NET (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to
Minors Act). 

        17.    CUSIP Numbers.    Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to
the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

69

 

        The
Company will furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: 

Six
Flags, Inc.

122 East 42nd Street

49th Floor

New York, New York 10168

Attention: General Counsel 

70

 
 
 

ASSIGNMENT FORM    
    

To
assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 

	
(Insert assignee's soc. or tax I.D. no.)

	
(Print or type assignee's name, address and zip code)
 

	and irrevocably appoint	

to
transfer this Note on the books of the Company. The agent may substitute another to act for him.   

	

Date:	

	

 	
 	

Your Signature:	

	 	 	 	 	(Sign exactly as your name appears on the face of this Note)

Signature
Guarantee. 

(Participant
in a Recognized Signature

Guarantee Medallion Program) 

71

 
 
 

OPTION OF HOLDER TO ELECT PURCHASE    
    

        If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the box below: 

        o
Section 4.10                o Section 4.15 

        If
you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have
purchased: 

$
                         

	

Date:	

	

 	
 	

Your Signature:	

	 	 	 	 	(Sign exactly as your name appears on the face of this Note)

Signature
Guarantee. 

(Participant
in a Recognized Signature

Guarantee Medallion Program) 

72

 
 
 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1    
    

        The following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global
Note or Definitive Note for an interest in this Global Note, have been made: 

	Date of Exchange
 
	 	Amount of decrease in

Principal Amount of

this Global Note
	 	Amount of increase in

Principal Amount of

this Global Note
	 	Principal Amount of

this Global Note

following such decrease

(or increase)
	 	Signature of authorized

officer of Trustee or

Note Custodian

	

 	
 	

 	
 	

 	
 	

 	
 	

 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 	 

	1
	Insert
this table only in a Global Note. 

73

  

 
 

EXHIBIT B    
    
    FORM OF CERTIFICATE OF TRANSFER    
    

Six
Flags, Inc.

122 East 42nd Street

49th Floor

New York, New York 10168 

[Registrar
address block] 

        Re:
93/4% Senior Notes Due 2013 

        Reference
is hereby made to the Indenture, dated as of April 16, 2003 (the "Indenture"), between Six Flags, Inc., as issuer
(the "Company"), and The Bank of New York, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the
Indenture. 

                                ,
(the "Transferor") owns and proposes to transfer the Note[s] or
interest in such Note[s] specified in Annex A hereto, in the principal amount of $                         in such Note[s]
or
interests (the "Transfer"), to                          (the "Transferee"), as
further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby certifies that: 

1.    o    CHECK
IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE 144A GLOBAL NOTE OR A
DEFINITIVE NOTE PURSUANT TO RULE 144A.    The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the
"Securities Act"), and accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Note is being transferred to a Person that the Transferor reasonably believed and
believes is purchasing the beneficial interest or Definitive Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such
Person and each such account is a "qualified institutional buyer" within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and such Transfer is in
compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Definitive Note and in the
Indenture and the Securities Act. 

2.    o    CHECK
IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE REGULATION S GLOBAL NOTE OR A DEFINITIVE NOTE
PURSUANT TO REGULATION S.    The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor
hereby further certifies that (i) the Transfer is not being made to a person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United
States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or
through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United
States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act
(iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration
of the Restricted Period, the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed
on the Regulation S Global Note, the 

B-1

 

Temporary
Regulation S Global Note and/or the Definitive Note and in the Indenture and the Securities Act. 

3.    o    Check
if Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted
Definitive Note. 

        (a)    o    CHECK
IF TRANSFER IS PURSUANT TO RULE 144.    (i) The Transfer is being effected pursuant
to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state
of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.
Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture. 

        (b)    o    CHECK
IF TRANSFER IS PURSUANT TO REGULATION S.    (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky
securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture. 

        (c)    o    CHECK
IF TRANSFER IS PURSUANT TO OTHER EXEMPTION.    (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or Restricted
Definitive Notes and in the Indenture. 

B-2

 

        This
certificate and the statements contained herein are made for your benefit and the benefit of the Company. 

	 	 	
 [Insert Name of Transferor]
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	Dated:                        ,
            	 	 	 	 

B-3

 
 
 

ANNEX A TO CERTIFICATE OF TRANSFER    
    

	4.
	The
Transferor owns and proposes to transfer the following: 

[CHECK ONE OF (a) OR (b)] 

	

 	

(a)	

o	
 	

a beneficial interest in the:
	

 	

 	

(i)	
 	

o  144A Global Note (CUSIP                         ), or
	

 	

 	

(ii)	
 	

o  Regulation S Global Note (CUSIP                         ),
or
	

 	

(b)	

o	
 	

a Restricted Definitive Note.

	5.
	After
the Transfer the Transferee will hold: 

[CHECK ONE] 

	

 	

(a)	

o	
 	

a beneficial interest in the:
	

 	

 	

(i)	
 	

o  144A Global Note (CUSIP                         ), or
	

 	

 	

(ii)	
 	

o  Regulation S Global Note (CUSIP                         ),
or
	

 	

 	

(iii)	
 	

o  Unrestricted Global Note (CUSIP                         ); or
	

 	

(b)	

o	
 	

a Restricted Definitive Note; or
	

 	

(c)	

o	
 	

an Unrestricted Definitive Note,
	

in accordance with the terms of the Indenture.

B-4

  

 
 

EXHIBIT C    
    

 
 

FORM OF CERTIFICATE OF EXCHANGE    
    

Six
Flags, Inc.

122 East 42nd Street

49th Floor

New York, New York 10168 

[Registrar
address block]* 

	 	 	Re:	 	93/4% Senior Notes due 2013

(CUSIP                        )  

        Reference is hereby made to the Indenture, dated as of April 16, 2003 (the "Indenture"), between Six
Flags, Inc., as issuer (the "Company"), and The Bank of New York, as trustee. Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture. 

                                ,
(the "Owner") owns and proposes to exchange the Note[s] or interest in such
Note[s] specified herein, in the principal amount of $                        in such Note[s] or interests (the
"Exchange"). In connection with the Exchange, the Owner hereby certifies that: 

1.    EXCHANGE
OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL NOTE 

        (d)       o    CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL
NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE.    In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Note for a
beneficial interest in an Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner's own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (the "Securities Act"), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend
are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue
sky securities laws of any state of the United States. 

        (e)       o    CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL
NOTE TO UNRESTRICTED DEFINITIVE NOTE.    In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States. 

        (f)        o    CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN AN UNRESTRICTED GLOBAL NOTE.    In connection with the Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted
Global Note, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance 

D-1

 

with
the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 

        (g)       o    CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO UNRESTRICTED
DEFINITIVE NOTE.    In connection with the Owner's Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies
(i) the Unrestricted Definitive Note is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States. 

2.    EXCHANGE
OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES 

        (h)       o    CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL
NOTE TO RESTRICTED DEFINITIVE NOTE.    In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Note for a Restricted Definitive Note
with an equal principal amount, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner's own account without transfer. Upon consummation of the proposed
Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend
printed on the Restricted Definitive Note and in the Indenture and the Securities Act. 

        (i)        o    CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO BENEFICIAL
INTEREST IN A RESTRICTED GLOBAL NOTE.    In connection with the Exchange of the Owner's Restricted Definitive Note for a beneficial interest in the [CHECK
ONE] 144A Global Note, Regulation S
Global Note, with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner's own account without transfer and (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act. 

        This
certificate and the statements contained herein are made for your benefit and the benefit of the Company. 

	 	 	
 [Insert Name of Transferor]
	 	 	 	 
	

 	
 	

By:	

 Name:

Title:

Dated:                        ,            

D-2

QuickLinks

Table of Contents

CROSS-REFERENCE TABLE

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE II THE NOTES

ARTICLE III REDEMPTION AND PREPAYMENT

ARTICLE IV COVENANTS

ARTICLE V SUCCESSORS

ARTICLE VI DEFAULTS AND REMEDIES

ARTICLE VII TRUSTEE

ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE

ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER

ARTICLE X SATISFACTION AND DISCHARGE

ARTICLE XI MISCELLANEOUS

SIGNATURES

EXHIBIT A

ASSIGNMENT FORM

OPTION OF HOLDER TO ELECT PURCHASE

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE1

EXHIBIT B FORM OF CERTIFICATE OF TRANSFER

ANNEX A TO CERTIFICATE OF TRANSFER

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

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