Document:

Exhibit 4.1

 

Execution Copy

	
  

  

 

 

FIBERTOWER CORPORATION

9.00%
CONVERTIBLE SENIOR SECURED NOTES DUE 2012

INDENTURE

Dated
as of November 9, 2006

Well
Fargo Bank, National Association,

as
Trustee

 

 

	
  

  

 

 

CROSS-REFERENCE
TABLE*

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  8.10

  
	
   

  	
  (a)(2)

  	
   

  	
  8.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  8.10

  
	
   

  	
  (b)

  	
   

  	
  8.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  8.11

  
	
   

  	
  (b)

  	
   

  	
  8.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  14.03

  
	
   

  	
  (c)

  	
   

  	
  14.03

  
	
  313

  	
  (a)

  	
   

  	
  8.06

  
	
   

  	
  (b)(1)

  	
   

  	
  11.04

  
	
   

  	
  (b)(2)

  	
   

  	
  8.07;11.04

  
	
   

  	
  (c)

  	
   

  	
  8.06;14.02

  
	
   

  	
  (d)

  	
   

  	
  8.06

  
	
  314

  	
  (a)

  	
   

  	
  5.03;14.02

  
	
   

  	
  (b)

  	
   

  	
  11.02

  
	
   

  	
  (c)(1)

  	
   

  	
  14.04

  
	
   

  	
  (c)(2)

  	
   

  	
  14.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  11.04;11.05;11.06

  
	
   

  	
  (e)

  	
   

  	
  14.05

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  8.01

  
	
   

  	
  (b)

  	
   

  	
  8.05;14.02

  
	
   

  	
  (c)

  	
   

  	
  8.01

  
	
   

  	
  (d)

  	
   

  	
  8.01

  
	
   

  	
  (e)

  	
   

  	
  7.11

  
	
  316

  	
  (a) (last sentence)

  	
   

  	
  2.09

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  7.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  7.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.07

  
	
   

  	
  (c)

  	
   

  	
  2.12

  
	
  317

  	
  (a)(1)

  	
   

  	
  7.08

  
	
   

  	
  (a)(2)

  	
   

  	
  7.09

  
	
   

  	
  (b)

  	
   

  	
  2.04

  
	
  318

  	
  (a)

  	
   

  	
  14.01

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  14.01

  

N.A. means not applicable.

*  This Cross Reference Table is not part of the
Indenture.

TABLE OF CONTENTS

 

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  Section 1.01.

  	
   

  	
  Definitions.

  	
   

  	
  1

  
	
  Section 1.02.

  	
   

  	
  Other Definitions.

  	
   

  	
  28

  
	
  Section 1.03.

  	
   

  	
  Incorporation by Reference of Trust Indenture Act.

  	
   

  	
  28

  
	
  Section 1.04.

  	
   

  	
  Rules of Construction.

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 2.

  	
   

  	
   

  
	
   

  	
   

  	
  THE NOTES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Form and Dating.

  	
   

  	
  29

  
	
  Section 2.02.

  	
   

  	
  Execution and Authentication.

  	
   

  	
  30

  
	
  Section 2.03.

  	
   

  	
  Registrar, Paying Agent, Conversion Agent and
  Depositary.

  	
   

  	
  31

  
	
  Section 2.04.

  	
   

  	
  Paying Agent to Hold Money in Trust.

  	
   

  	
  31

  
	
  Section 2.05.

  	
   

  	
  Holder Lists.

  	
   

  	
  32

  
	
  Section 2.06.

  	
   

  	
  Transfer and Exchange.

  	
   

  	
  32

  
	
  Section 2.07.

  	
   

  	
  Replacement Notes.

  	
   

  	
  44

  
	
  Section 2.08.

  	
   

  	
  Outstanding Notes.

  	
   

  	
  44

  
	
  Section 2.09.

  	
   

  	
  Treasury Notes.

  	
   

  	
  45

  
	
  Section 2.10.

  	
   

  	
  Temporary Notes.

  	
   

  	
  45

  
	
  Section 2.11.

  	
   

  	
  Cancellation.

  	
   

  	
  45

  
	
  Section 2.12.

  	
   

  	
  Defaulted Interest.

  	
   

  	
  45

  
	
  Section 2.13.

  	
   

  	
  CUSIP Numbers.

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 3.

  	
   

  	
   

  
	
   

  	
   

  	
  REDEMPTION AND
  PREPAYMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Notices to Trustee.

  	
   

  	
  46

  
	
  Section 3.02.

  	
   

  	
  Selection of Notes to Be Redeemed or Purchased.

  	
   

  	
  46

  
	
  Section 3.03.

  	
   

  	
  Notice of Redemption.

  	
   

  	
  47

  
	
  Section 3.04.

  	
   

  	
  Effect of Notice of Redemption.

  	
   

  	
  48

  
	
  Section 3.05.

  	
   

  	
  Deposit of Redemption or Purchase Price.

  	
   

  	
  48

  
	
  Section 3.06.

  	
   

  	
  Notes Redeemed or Purchased in Part.

  	
   

  	
  48

  
	
  Section 3.07.

  	
   

  	
  Optional Redemption.

  	
   

  	
  48

  
	
  Section 3.08.

  	
   

  	
  Repurchase at Option of Holder Upon a Designated
  Event.

  	
   

  	
  49

  
	
  Section 3.09.

  	
   

  	
  Offer to Purchase by Application of Excess Proceeds.

  	
   

  	
  52

  
	
  Section 3.10.

  	
   

  	
  Redemption at Maturity.

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 4.

  	
   

  	
   

  
	
   

  	
   

  	
  CONVERSION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Conversion Right and Conversion Rate.

  	
   

  	
  54

  
	
  Section 4.02.

  	
   

  	
  Conversion Consideration.

  	
   

  	
  55

  
	
  Section 4.03.

  	
   

  	
  Exercise of Conversion Right.

  	
   

  	
  55

  

 

 i
 

 

	
  Section 4.04.

  	
   

  	
  Fractions of Shares.

  	
   

  	
  57

  
	
  Section 4.05.

  	
   

  	
  Adjustment of Conversion Rate.

  	
   

  	
  57

  
	
  Section 4.06.

  	
   

  	
  Notice of Adjustments of Conversion Rate.

  	
   

  	
  64

  
	
  Section 4.07.

  	
   

  	
  Notice of Certain Corporate Action.

  	
   

  	
  64

  
	
  Section 4.08.

  	
   

  	
  Cancellation of Converted Notes.

  	
   

  	
  65

  
	
  Section 4.09.

  	
   

  	
  Provision in Case of Reclassification,
  Consolidation, Merger or Sale of Assets.

  	
   

  	
  65

  
	
  Section 4.10.

  	
   

  	
  Conversion Prior to November 15, 2009.

  	
   

  	
  66

  
	
  Section 4.11.

  	
   

  	
  Share Issuance Cap.

  	
   

  	
  66

  
	
  Section 4.12.

  	
   

  	
  Rights Issued in Respect of Common Stock.

  	
   

  	
  67

  
	
  Section 4.13.

  	
   

  	
  Responsibility of Trustee for Conversion Provisions.

  	
   

  	
  67

  
	
  Section 4.14.

  	
   

  	
  Certain Regulatory Requirements.

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 5.

  	
   

  	
   

  
	
   

  	
   

  	
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Payment of Notes.

  	
   

  	
  68

  
	
  Section 5.02.

  	
   

  	
  Maintenance of Office or Agency.

  	
   

  	
  68

  
	
  Section 5.03.

  	
   

  	
  Reports.

  	
   

  	
  69

  
	
  Section 5.04.

  	
   

  	
  Compliance Certificate.

  	
   

  	
  69

  
	
  Section 5.05.

  	
   

  	
  Taxes.

  	
   

  	
  70

  
	
  Section 5.06.

  	
   

  	
  Stay, Extension and Usury Laws.

  	
   

  	
  70

  
	
  Section 5.07.

  	
   

  	
  Limitation on Restricted Payments.

  	
   

  	
  71

  
	
  Section 5.08.

  	
   

  	
  Limitation on Dividend and Other Payment
  Restrictions Affecting Subsidiaries.

  	
   

  	
  72

  
	
  Section 5.09.

  	
   

  	
  Limitation on Incurrence of Additional Indebtedness
  and Issuance of Preferred Stock.

  	
   

  	
  73

  
	
  Section 5.10.

  	
   

  	
  Limitation on Asset Sales.

  	
   

  	
  75

  
	
  Section 5.11.

  	
   

  	
  Limitation on Transactions with Affiliates.

  	
   

  	
  77

  
	
  Section 5.12.

  	
   

  	
  Limitation on Liens.

  	
   

  	
  78

  
	
  Section 5.13.

  	
   

  	
  Conduct of Business.

  	
   

  	
  79

  
	
  Section 5.14.

  	
   

  	
  Designation of Restricted and Unrestricted
  Subsidiaries.

  	
   

  	
  79

  
	
  Section 5.15.

  	
   

  	
  Issuance and Sale of Capital Stock of Restricted
  Subsidiaries.

  	
   

  	
  79

  
	
  Section 5.16.

  	
   

  	
  Maintenance of Insurance.

  	
   

  	
  80

  
	
  Section 5.17.

  	
   

  	
  Payments for Consent.

  	
   

  	
  80

  
	
  Section 5.18.

  	
   

  	
  Additional Guarantees.

  	
   

  	
  80

  
	
  Section 5.19.

  	
   

  	
  Anti-Layering.

  	
   

  	
  81

  
	
  Section 5.20.

  	
   

  	
  Further Assurances Relating to Collateral.

  	
   

  	
  81

  
	
  Section 5.21.

  	
   

  	
  Real Estate Mortgages and Filings.

  	
   

  	
  82

  
	
  Section 5.22.

  	
   

  	
  Corporate Existence.

  	
   

  	
  83

  
	
  Section 5.23.

  	
   

  	
  Liquidated Damages.

  	
   

  	
  83

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 6.

  	
   

  	
   

  
	
   

  	
   

  	
  SUCCESSORS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Merger, Consolidation, or Sale of Assets.

  	
   

  	
  83

  
	
  Section 6.02.

  	
   

  	
  Successor Corporation Substituted.

  	
   

  	
  85

  

 

 ii
 

 

	
  

  	
   

  	
  ARTICLE 7.

  	
   

  	
   

  
	
   

  	
   

  	
  DEFAULTS AND
  REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Events of Default.

  	
   

  	
  85

  
	
  Section 7.02.

  	
   

  	
  Acceleration.

  	
   

  	
  88

  
	
  Section 7.03.

  	
   

  	
  Other Remedies.

  	
   

  	
  88

  
	
  Section 7.04.

  	
   

  	
  Waiver of Past Defaults.

  	
   

  	
  89

  
	
  Section 7.05.

  	
   

  	
  Control by Majority.

  	
   

  	
  89

  
	
  Section 7.06.

  	
   

  	
  Limitation on Suits.

  	
   

  	
  89

  
	
  Section 7.07.

  	
   

  	
  Rights of Holders of Notes to Receive Payment.

  	
   

  	
  90

  
	
  Section 7.08.

  	
   

  	
  Collection Suit by Trustee.

  	
   

  	
  90

  
	
  Section 7.09.

  	
   

  	
  Trustee May File Proofs of Claim.

  	
   

  	
  90

  
	
  Section 7.10.

  	
   

  	
  Priorities.

  	
   

  	
  91

  
	
  Section 7.11.

  	
   

  	
  Undertaking for Costs.

  	
   

  	
  91

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 8.

  	
   

  	
   

  
	
   

  	
   

  	
  TRUSTEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Duties of Trustee.

  	
   

  	
  92

  
	
  Section 8.02.

  	
   

  	
  Rights of Trustee.

  	
   

  	
  93

  
	
  Section 8.03.

  	
   

  	
  Individual Rights of Trustee.

  	
   

  	
  94

  
	
  Section 8.04.

  	
   

  	
  Trustee’s Disclaimer.

  	
   

  	
  94

  
	
  Section 8.05.

  	
   

  	
  Notice of Defaults.

  	
   

  	
  94

  
	
  Section 8.06.

  	
   

  	
  Reports by Trustee to Holders of the Notes.

  	
   

  	
  94

  
	
  Section 8.07.

  	
   

  	
  Compensation and Indemnity.

  	
   

  	
  95

  
	
  Section 8.08.

  	
   

  	
  Replacement of Trustee.

  	
   

  	
  95

  
	
  Section 8.09.

  	
   

  	
  Successor Trustee by Merger, etc.

  	
   

  	
  96

  
	
  Section 8.10.

  	
   

  	
  Eligibility; Disqualification.

  	
   

  	
  97

  
	
  Section 8.11.

  	
   

  	
  Preferential Collection of Claims Against Company.

  	
   

  	
  97

  
	
  Section 8.12.

  	
   

  	
  Powers of Trustee Subject to Communications Act.

  	
   

  	
  97

  
	
  Section 8.13.

  	
   

  	
  Trustee as Paying Agent, Conversion Agent, Registrar
  and Collateral Agent.

  	
   

  	
  97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 9.

  	
   

  	
   

  
	
   

  	
   

  	
  LEGAL DEFEASANCE
  AND COVENANT DEFEASANCE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
   

  	
  Option to Effect Legal Defeasance or Covenant
  Defeasance.

  	
   

  	
  97

  
	
  Section 9.02.

  	
   

  	
  Legal Defeasance and Discharge.

  	
   

  	
  97

  
	
  Section 9.03.

  	
   

  	
  Covenant Defeasance.

  	
   

  	
  98

  
	
  Section 9.04.

  	
   

  	
  Conditions to Legal or Covenant Defeasance.

  	
   

  	
  99

  
	
  Section 9.05.

  	
   

  	
  Deposited Money and Government Securities to be Held
  in Trust; Other
  Miscellaneous Provisions

  	
   

  	
  100

  
	
  Section 9.06.

  	
   

  	
  Repayment to Company.

  	
   

  	
  101

  
	
  Section 9.07.

  	
   

  	
  Reinstatement.

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 10.

  	
   

  	
   

  
	
   

  	
   

  	
  AMENDMENT,
  SUPPLEMENT AND WAIVER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
   

  	
  Without Consent of Holders of Notes.

  	
   

  	
  101

  
	
  Section 10.02.

  	
   

  	
  With Consent of Holders of Notes.

  	
   

  	
  102

  
	
  Section 10.03.

  	
   

  	
  Compliance with Trust Indenture Act.

  	
   

  	
  104

  

 

 iii
 

 

	
  Section 10.04.

  	
   

  	
  Revocation and Effect of Consents.

  	
   

  	
  104

  
	
  Section 10.05.

  	
   

  	
  Notation on or Exchange of Notes.

  	
   

  	
  104

  
	
  Section 10.06.

  	
   

  	
  Trustee to Sign Amendments, etc.

  	
   

  	
  105

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 11.

  	
   

  	
   

  
	
   

  	
   

  	
  COLLATERAL AND
  SECURITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
   

  	
  Collateral Agreements.

  	
   

  	
  105

  
	
  Section 11.02.

  	
   

  	
  Recording and Opinions.

  	
   

  	
  106

  
	
  Section 11.03.

  	
   

  	
  Agreements Requiring Application of Proceeds of
  Collateral.

  	
   

  	
  107

  
	
  Section 11.04.

  	
   

  	
  Release of Collateral.

  	
   

  	
  107

  
	
  Section 11.05.

  	
   

  	
  Certificates of the Company.

  	
   

  	
  108

  
	
  Section 11.06.

  	
   

  	
  Certificates of the Trustee.

  	
   

  	
  109

  
	
  Section 11.07.

  	
   

  	
  Authorization of Actions to Be Taken by the Trustee
  Under the Collateral Agreements.

  	
   

  	
  109

  
	
  Section 11.08.

  	
   

  	
  Authorization of Receipt of Funds by the Trustee Under
  the Collateral Agreements.

  	
   

  	
  109

  
	
  Section 11.09.

  	
   

  	
  Relative Rights.

  	
   

  	
   

  
	
  Section 11.10.

  	
   

  	
  Limitation on Duty of Trustee and Collateral Agent
  as to Collateral; Indemnification

  	
   

  	
  110

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 12.

  	
   

  	
   

  
	
   

  	
   

  	
  NOTE GUARANTEES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.01.

  	
   

  	
  Guarantee.

  	
   

  	
  111

  
	
  Section 12.02.

  	
   

  	
  Limitation on Guarantor Liability.

  	
   

  	
  112

  
	
  Section 12.03.

  	
   

  	
  Execution and Delivery of Note Guarantee.

  	
   

  	
  112

  
	
  Section 12.04.

  	
   

  	
  Releases Following Sale of Assets.

  	
   

  	
  113

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 13.

  	
   

  	
   

  
	
   

  	
   

  	
  SATISFACTION AND
  DISCHARGE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.01.

  	
   

  	
  Satisfaction and Discharge.

  	
   

  	
  113

  
	
  Section 13.02.

  	
   

  	
  Application of Trust Money.

  	
   

  	
  114

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 14.

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 14.01.

  	
   

  	
  Trust Indenture Act Controls.

  	
   

  	
  115

  
	
  Section 14.02.

  	
   

  	
  Notices.

  	
   

  	
  115

  
	
  Section 14.03.

  	
   

  	
  Communication by Holders of Notes with Other Holders
  of Notes.

  	
   

  	
  116

  
	
  Section 14.04.

  	
   

  	
  Certificate and Opinion as to Conditions Precedent.

  	
   

  	
  116

  
	
  Section 14.05.

  	
   

  	
  Statements Required in Certificate or Opinion.

  	
   

  	
  117

  
	
  Section 14.06.

  	
   

  	
  Rules by Trustee and Agents.

  	
   

  	
  117

  
	
  Section 14.07.

  	
   

  	
  No Personal Liability of Directors, Officers,
  Employees and Stockholders.

  	
   

  	
  117

  
	
  Section 14.08.

  	
   

  	
  Governing Law.

  	
   

  	
  117

  
	
  Section 14.09.

  	
   

  	
  No Adverse Interpretation of Other Agreements.

  	
   

  	
  118

  
	
  Section 14.10.

  	
   

  	
  Successors.

  	
   

  	
  118

  
	
  Section 14.11.

  	
   

  	
  Severability.

  	
   

  	
  118

  
	
  Section 14.12.

  	
   

  	
  Counterpart Originals.

  	
   

  	
  118

  
	
  Section 14.13.

  	
   

  	
  Benefit of Indenture.

  	
   

  	
  118

  

 

 iv
 

 

	
  Section 14.14.

  	
   

  	
  Table of Contents, Headings, etc.

  	
   

  	
  118

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  FORM OF NOTE

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  FORM OF CERTIFICATE OF TRANSFER

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  FORM OF CERTIFICATE OF EXCHANGE

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  FORM OF CERTIFICATE OF CONVERSION & RESTRICTED
  TRANSFER

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  FORM OF NOTATION OF GUARANTEE

  	
   

  	
   

  
	
  Exhibit F

  	
   

  	
  FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL
  ACCREDITED INVESTOR

  	
   

  	
   

  
	
  Exhibit G

  	
   

  	
  FORM OF INTERCREDITOR AGREEMENT

  	
   

  	
   

  

 

 v

INDENTURE, dated as of
November 9, 2006, among FiberTower Corporation, a Delaware corporation (the “Company”), the Guarantors (as defined below) and Wells Fargo
Bank, National Association, as trustee (the “Trustee”).

The Company, the Guarantors
and the Trustee agree as follows for the benefit of each other and for the
equal and ratable benefit of the Holders (as defined below) of the 9.00%
Convertible Senior Secured Notes due 2012 (such notes, including the Initial
Notes and any Additional Notes (each, as defined below) the “Notes”):

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01. Definitions.

“144A Global Note” means a Global
Note substantially 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 be issued in
a denomination equal to the outstanding principal amount of the Notes sold in
reliance on Rule 144A.

“Accretion
Premium” means an amount as calculated by the Company that is
determined so that such Accretion Premium represents for each Holder, for each
$1,000 principal amount of the Notes purchased at the Issue Price on the
Original Issue Date, a return of 12.00% per annum, calculated on a semi-annual
basis.

“Acquired
Indebtedness” means, with respect to any specified Person:

(1)                                  Indebtedness of
any other Person existing at the time such other Person is merged with or into
or became a Restricted Subsidiary of such specified Person, or Indebtedness
incurred by such specified Person in connection with the acquisition of assets,
including Indebtedness incurred in connection with, or in contemplation of,
such other Person merging with or into, or becoming a Restricted Subsidiary of,
such specified Person or the acquisition of such assets, as the case may be;
and

(2)                                  Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.

“Additional Notes” means the
aggregate principal amount of Notes (other than the Initial Notes) issued under
this Indenture (i) in lieu of interest payment on the Initial Notes as
permitted by Section 5.09 hereof and paragraph “1. Interest” in the form of
Note attached as Exhibit A hereto or (ii) subject to the satisfaction of all of
the covenants in this Indenture, including, without limitation, Sections 5.09
and 5.12 of this Indenture, in each case in the form of Exhibit A hereto, as
part of the same series as the Initial Notes.

“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,” as
used with respect to any Person, means 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 will be deemed to be
control.  For purposes of this
definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings.

“After-Acquired Property” shall mean all
assets and property, including to the extent permitted by law, FCC Licenses,
acquired by the Company or any Guarantor after the date of this Indenture.

“Agent” means any
Registrar, Paying Agent, Conversion Agent or co-registrar.

“Aggregate
Accreted Principal Amount” means an amount as calculated by the
Company equal to 100% of the principal amount of the Notes redeemed or
repurchased or otherwise due plus the Accretion Premium on the principal amount
of such Notes.  The applicable Aggregate
Accreted Principal Amount, as of any specified date (the “Specified
Date”), for each $1,000 principal amount of Notes if the Specified
Date is one of the following dates (each a “Semi-Annual Date”),
is equal to the amount set forth opposite such date below:

	
  Semi-Annual Date

  	
   

  	
   

  	
   

  	
  Aggregate 

  Accreted Principal

  Amount ($)

  	
   

  
	
  Original Issue
  Date

  	
   

  	
  1,000.00000

  	
   

  
	
  May 15, 2007

  	
   

  	
  1,015.56084

  	
   

  
	
  November 15,
  2007

  	
   

  	
  1,031.49449

  	
   

  
	
  May 15, 2008

  	
   

  	
  1,048.38415

  	
   

  
	
  November 15,
  2008

  	
   

  	
  1,066.28720

  	
   

  
	
  May 15, 2009

  	
   

  	
  1,085.26444

  	
   

  
	
  November 15,
  2009

  	
   

  	
  1,105.38030

  	
   

  
	
  May 15, 2010

  	
   

  	
  1,126.70312

  	
   

  
	
  November 15,
  2010

  	
   

  	
  1,149.30531

  	
   

  
	
  May 15, 2011

  	
   

  	
  1,173.26363

  	
   

  
	
  November 15,
  2011

  	
   

  	
  1,198.65944

  	
   

  
	
  May 15, 2012

  	
   

  	
  1,225.57901

  	
   

  
	
  November 15, 2012

  	
   

  	
  1,254.11375

  	
   

  

If
the Specified Date occurs between two Semi-Annual Dates, the Aggregate Accreted
Principal Amount shall be the sum of (1) the Aggregate Accreted Principal
Amount for the Semi-Annual Date immediately preceding the Specified Date and
(2) an amount equal to the product of (A) the difference of (x) the Aggregate
Accreted Principal Amount for the immediately following Semi-Annual Date and
(y) the Aggregate Accreted Principal Amount for the immediately preceding
Semi-Annual Date and (B) a fraction, the numerator of which is the number of
days elapsed from the immediately preceding Semi-Annual Date to the Specified
Date, calculated on a basis of a 360 day year comprised of twelve 30 day
months, and the denominator of which is 180 days,

 2
 

 

except
for the period from the Original Issue Date to the first Semi-Annual Date
immediately succeeding the Original Issue Date, which is 186 days.

“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
Acquisition” means (1) an Investment by the Company or any
Restricted Subsidiary in any other Person pursuant to which such Person will
become a Restricted Subsidiary of the Company or will be merged or consolidated
with or into the Company or any of its Restricted Subsidiaries or (2) the
acquisition by the Company or any Restricted Subsidiary of the assets of any
Person which constitute substantially all of the assets of such Person or any
division or line of business of such Person.

“Asset Sale”
means in a single transaction or a series of related transactions:

(1)                                  the sale,
lease, conveyance or other disposition of any assets or rights (including by
way of a sale and leaseback transaction), other than the sale, lease,
conveyance or other disposition of all or substantially all of the assets of
the Company and its Restricted Subsidiaries taken as a whole; and

(2)                                  the issuance or
sale of Equity Interests of any of the Company’s Restricted Subsidiaries or the
sale of Equity Interests in any of the Company’s Subsidiaries.

Notwithstanding the
preceding, none of the following items will be deemed to be an Asset Sale:

(1)                                  any single
transaction or series of related transactions that involves assets having a
Fair Market Value of less than $1.0 million;

(2)                                  a transfer of
assets between or among the Company and its wholly-owned Guarantors;

(3)                                  an issuance of
Equity Interests by a Restricted Subsidiary of the Company to the Company or to
a wholly-owned Guarantor;

(4)                                  the sale or
lease of products, services or accounts receivable in the ordinary course of
business or equipment or other assets pursuant to a program for the maintenance
or upgrading of such equipment or assets including, without limitation, the
disposition of equipment that is worn out or obsolete; or

(5)                                  the sale or
other disposition of cash or Cash Equivalents.

Notwithstanding
anything to the contrary contained above, a Restricted Payment that does not
violate the covenant described under Section 5.07 hereof or a Permitted
Investment shall not constitute an Asset Sale, except for purposes of
determination of the Consolidated Coverage Ratio.

 3
 

 

 

“Average Life”
means, as of the date of determination, with respect to any Indebtedness, the
quotient obtained by dividing:

(1)                                  the sum of the
products of the number of years from the date of determination to the dates of
each successive scheduled principal payment of or redemption or similar payment
with respect to such Indebtedness multiplied by the amount of such payment by

(2)                                  the sum of all
such payments.

“Bankruptcy Code” means Title 11
of the United States Code (11 U.S.C. 101 et seq.), as amended from time to
time, and any successor statute, or if the context so requires, any similar
federal or state law.

“Beneficial Owner” has the
meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person”
will be deemed to have beneficial ownership of all securities that such “person”
has the right to acquire by conversion or exercise of other securities, whether
such right is currently exercisable or is exercisable only after the passage of
time.  The terms “beneficially owns” and “beneficially
owned” have a corresponding meaning.

“Board of
Directors” means:

(1)                                  with respect to
a corporation, the board of directors of the corporation or any committee
thereof duly authorized to act on behalf of such board;

(2)                                  with respect to
a partnership, the board of directors of the general partner of the
partnership;

(3)                                  with respect to
a limited liability company, the managing member or members or any controlling
committee of managing members thereof; and

(4)                                  with respect to
any other Person, the board or committee of such Person serving a similar
function.

“Board Resolution” means a copy
of a resolution, certified by the Secretary of the Company to have been duly
adopted by the Board of Directors of the Company and to be in full force and
effect on the date of such certification, and delivered to the Trustee.

“Business Day” means any day
other than a Saturday, a Sunday or a day on which banking institutions in The
City of New York, New York or San Francisco, California or at a place of
payment are authorized or required by law, regulation or executive order to
remain closed.

“Capital Lease Obligation” means, at the
time any determination is to be made, the amount of the liability in respect of
a capital lease that would at that time be required to be capitalized on a
balance sheet prepared in accordance with GAAP, and the Stated Maturity

 4
 

 

thereof shall be the date of the last payment of rent
or any other amount due under such lease prior to the first date upon which
such lease may be prepaid by the lessee without payment of a penalty.

“Capital
Stock” means:

(1)                                  in the case of
a corporation, corporate stock;

(2)                                  in the case of
an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;

(3)                                  in the case of
a partnership or limited liability company, partnership interests (whether
general or limited) or membership interests, respectively; and

(4)                                  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, but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation in profits, losses or distribution of assets with Capital Stock.

“Cash
Equivalents” means:

(1)                                  U.S. dollars;

(2)                                  securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government
(provided that the full faith and credit of the United States is pledged in
support of those securities) having maturities of not more than twelve months
from the date of acquisition;

(3)                                  certificates of
deposit and eurodollar time deposits with maturities of twelve months or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding twelve months and overnight bank deposits, in each case, with any
domestic commercial bank having capital and surplus in excess of $500.0 million
and a Thomson Bank Watch Rating of “B” or better;

(4)                                  repurchase
obligations with a term of not more than seven (7) days for underlying
securities of the types described in clauses (2) and (3) above entered into
with any financial institution meeting the qualifications specified in clause
(3) above;

(5)                                  commercial
paper having one of the two highest ratings obtainable from Moody’s or Standard
& Poor’s and, in each case, maturing within twelve months after the date of
acquisition; and

(6)                                  money market
funds at least 95% of the assets of which constitute Cash Equivalents of the
kinds described in clauses (1) through (5) of this definition.

 5
 

 

 

“Clearstream” means
Clearstream Banking, S.A.

“Closing Sale
Price” means, with respect to the Common Stock, on any date, the
last reported per share sale price (or, if no last sale price is reported, the
average of the last bid and ask prices or, if more than one in either case, the
average of the average bid and the average ask prices) on such date as reported
in composite transactions for the principal U.S. securities exchange on which
the Common Stock then is listed, or if the Common Stock is not listed on a U.S.
national or regional exchange, as reported on the Nasdaq Global Market, or if
the Common Stock is not quoted on the Nasdaq Global Market, as reported on the
principal other market on which the Common Stock is then traded.  In the absence of such quotations, the
Company’s Board of Directors will make a good faith determination of the
Closing Sale Price.

“Collateral”
means all collateral of whatsoever nature purported to be subject to the Lien
of the Collateral Agreements.

“Collateral Agent” means Wells
Fargo Bank, National Association, in its capacity as Collateral Agent under the
Collateral Agreements, together with its successors in such capacity.

“Collateral
Agreements” means the Intercreditor Agreement and all security
agreements, pledge agreements, collateral assignments, mortgages, deeds of
trust, collateral agency agreements, control agreements or other grants or
transfers for security executed and delivered by the Company or any Guarantor
creating (or purporting to create) a Note Lien upon Collateral in favor of the
Collateral Agent, in each case, as amended, modified, renewed, restated or
replaced, in whole or in part, from time to time, in accordance with its terms.

“Common Stock” means the
common stock of the Company, par value $0.001 per share, as it exists on the
date of this Indenture or any other shares of Capital Stock of the Company into
which such common stock shall be reclassified or changed.

“Communications
Act” means the Communications Act of 1934, as amended, the rules,
regulations, orders, decisions and written polices of the FCC, and binding
interpretations of U.S. federal courts of any of the foregoing.

“Consolidated
Coverage Ratio” means with respect to any Person as of any date of
determination, the ratio of (A) the aggregate amount of EBITDA of such Person
and its Restricted Subsidiaries for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such determination and
as to which financial statements are available to (B) Consolidated Interest
Expense of such Person and its Restricted Subsidiaries for such four fiscal
quarters; provided, however, that:

(1)                                  if such Person
or any of its Restricted Subsidiaries has incurred any Indebtedness since the
beginning of such period through the determination date that remains
outstanding or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio is an incurrence of Indebtedness, or both, EBITDA
and Consolidated Interest Expense for such Person for such period shall be
calculated after giving effect on a pro forma basis
to (A) such Indebtedness as if such Indebtedness had been incurred on the first
day of such period, and (B) the discharge of any other Indebtedness repaid,
repurchased, defeased or otherwise

 6
 

 

discharged with the proceeds
of such new Indebtedness as if such discharge had occurred on the first day of
such period;

(2)                                  if since the
beginning of such period any Indebtedness of such Person or any of its
Restricted Subsidiaries has been repaid, repurchased, defeased or otherwise
discharged (other than Indebtedness under a revolving credit or similar
arrangement unless such revolving credit Indebtedness has been permanently
repaid and has not been replaced), Consolidated Interest Expense for such
Person for such period shall be calculated after giving pro forma
effect thereto as if such Indebtedness had been repaid, repurchased, defeased
or otherwise discharged on the first day of such period;

(3)                                  if since the
beginning of such period such Person or any of its Restricted Subsidiaries
shall have made any Asset Sale or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio is an Asset Sale, EBITDA for such
Person for such period shall be reduced by an amount equal to the EBITDA (if
positive) attributable to the assets which are the subject of such Asset Sale
for such period or increased by an amount equal to the EBITDA (if negative)
attributable thereto for such period, and Consolidated Interest Expense for
such Person for such period shall be (A) reduced by an amount equal to the
Consolidated Interest Expense attributable to any Indebtedness of such Person
or any of its Restricted Subsidiaries repaid, repurchased, defeased or
otherwise discharged with respect to such Person and its continuing Restricted
Subsidiaries in connection with such Asset Sale for such period (or, if the
Capital Stock of any Restricted Subsidiary of such Person is sold, transferred
or otherwise disposed of, the Consolidated Interest Expense for such Person for
such period directly attributable to the Indebtedness of such Restricted
Subsidiary to the extent such Person and its continuing Restricted Subsidiaries
are no longer liable for such Indebtedness after such sale, transfer or other
disposition) and (B) increased by interest income attributable to the assets
which are the subject of such Asset Sale for such period;

(4)                                  if since the
beginning of such period such Person or any of its Restricted Subsidiaries (by
merger or otherwise) shall have made an Asset Acquisition, EBITDA and
Consolidated Interest Expense for such Person for such period shall be
calculated after giving pro forma
effect thereto (including the incurrence of any Indebtedness) as if such Asset
Acquisition occurred on the first day of such period; and

(5)                                  if since the
beginning of such period any Person that subsequently became a Restricted
Subsidiary of such Person or was merged with or into such Person or any of its
Restricted Subsidiaries since the beginning of such period shall have made any
Asset Sale or Asset Acquisition that would have required an adjustment pursuant
to clause (3) or (4) above if made by such Person or a Restricted Subsidiary of
such Person during such period, EBITDA and Consolidated Interest Expense for
such period for such Person shall be calculated after giving pro forma

 7
 

 

effect
thereto as if such Asset Sale or Asset Acquisition occurred on the first day of
such period.

For
purposes of this definition, whenever pro forma effect
is to be given to an Asset Acquisition, the amount of income or earnings
relating thereto and the amount of Consolidated Interest Expense associated
with any Indebtedness incurred in connection therewith, the pro forma calculations shall be determined in accordance
with GAAP and Regulation S-X under the Securities Act, to the extent
applicable, and may take into account such reasonable additional expense
synergies and other adjustments determined, in each case, in good faith by a
responsible financial or accounting officer of the Company to the extent
permitted by GAAP and Regulation S-X. Any Person that is a Restricted
Subsidiary on the determination date will be deemed to have been a Restricted
Subsidiary at all times during such four-quarter period and any Person that is
not a Restricted Subsidiary on the determination date will be deemed not to
have been a Restricted Subsidiary at any time during such four-quarter period.
If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest expense on such Indebtedness
shall be calculated as if the rate in effect on the date of determination had
been the applicable rate for the entire period (taking into account any
Interest Rate Agreement applicable to such Indebtedness if such Interest Rate
Agreement has a remaining term that extends at least until the end of such
period).

“Consolidated
Interest Expense” means, with respect to any Person for any period,
the total interest expense of such Person and its Restricted Subsidiaries for
such period as determined on a consolidated basis in accordance with GAAP
(including commitment fees, letter of credit fees and the interest component of
Capital Lease Obligations), including the net amounts paid or received under
all Interest Rate Agreements, plus, to the extent not included in such interest
expense and without duplication, (1) amortization of debt discount, (2)
capitalized interest, (3) non-cash interest expense, (4) any interest expense
on Indebtedness of another Person that is guaranteed by such Person or one of
its Restricted Subsidiaries or secured by a Lien on assets of such Person or
one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is
called upon, (5) the interest portion of any deferred payment obligation, and
(6) the product of (x) all cash and Disqualified Stock dividends in respect of
all Disqualified Stock of such Person held by Persons other than such Person or
a wholly-owned Subsidiary of such Person times (y) a fraction, the numerator of
which is one and the denominator of which is one minus the then current
effective consolidated federal, state and local tax rate of such Person,
expressed as a decimal, and less, to the extent included in such total interest
expense, the amortization of capitalized debt issuance costs.

“Consolidated
Net Income” means, with respect to any Person for any period, the
net income (loss) of such Person and its consolidated Restricted Subsidiaries
for such period determined in accordance with GAAP; provided, however, that
there shall not be included in such Consolidated Net Income (1) the net income
(but not loss) of any Restricted Subsidiary of such Person to the extent that
the declaration or payment of dividends or similar distributions by such
Restricted Subsidiary was not permitted (without giving effect to any
non-permanent waiver), directly or indirectly, by operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to such Restricted Subsidiary, (2) any gains
or losses realized upon the sale or other disposition of any assets of such
Person or its consolidated Restricted Subsidiaries not sold or disposed of in
the

 8
 

 

ordinary course of business (including Capital Stock
or pursuant to any sale and leaseback transaction), (3) any non-recurring or
extraordinary gain or loss (including expenses related to the issuance of the
Notes), (4) the net income of any Person accrued prior to the date it became a
Restricted Subsidiary of the referent Person or is merged or consolidated with
the referent Person or a Restricted Subsidiary of the referent Person, (5) the
cumulative effect of a change in accounting principles, (6) subject to clause
(7) below, 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, except
to the extent of the amount of dividends or similar distributions paid in cash
to the specified Person or a Restricted Subsidiary of the Person, (7) the net
income (or loss) of any Unrestricted Subsidiary, whether or not distributed to
the specified Person or one of its Restricted Subsidiaries, (8) any restoration
to income of any contingency reserve, except to the extent that provision for
such reserve was made out of Consolidated Net Income accrued at any time
following the Original Issue Date, and (9) income or loss attributable to
discontinued operations (including, without limitation, operations disposed of
during such period whether or not such operations were classified as
discontinued).

“Consolidated
Net Worth” means, with respect to any Person as of any date, the sum
of:

(1)                                  the
consolidated equity of the common stockholders of such Person as of such date;
plus

(2)                                  the respective
amounts reported on such Person’s balance sheet as of such date with respect to
any series of preferred stock (other than Disqualified Stock) that by its terms
is not entitled to the payment of dividends unless such dividends may be
declared and paid only out of net earnings in respect of the year of such
declaration and payment, but only to the extent of any such cash received by
such Person upon issuance of such preferred stock less (x) all write-ups (other
than write-ups resulting from foreign currency translations and write-ups of
tangible assets of a going concern business made 12 months after the
acquisition of such business) subsequent to the date of this Indenture in the
book value of any asset owned by such Person or a consolidated Subsidiary of
such Person, and (y) all unamortized debt discount and expense and unamortized
deferred charges as of such date, all of the foregoing determined in accordance
with GAAP.

“Conversion Price” means the
price obtained by dividing $1,000 by the then effective Conversion Rate, which
shall initially be $8.29 per share, and which shall be subject to adjustment as
provided in this Indenture.

“Current Market Price” means the
volume weighted average of the daily Closing Sale Prices per share of Common
Stock for the ten (10) consecutive Trading Days ending on the earlier of the
date of determination and the day before the “ex” date with respect to the
distribution requiring such computation. 
For purposes of this definition, the term “ex” date, when used with
respect to any distribution, means the first date on which the Common Stock
trades, regular way, on the relevant exchange or in the relevant market from
which the closing price was obtained without the right to receive such distribution.  The Company will make adjustments to the
Current Market Price in accordance with this Indenture to account for the
occurrence of certain events during the ten (10) consecutive Trading Day
period.

 9
 

 

 

“Custodian” means the
Trustee, as custodian, with respect to the Notes in global form, or any
successor entity thereto.

“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 2.06 hereof, substantially 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
Person specified in Section 2.03 hereof as the Depositary with respect to the
Notes, and any and all successors thereto appointed as depositary hereunder and
having become such pursuant to the applicable provision of this Indenture.

“Designated Event” means any
event that is a Fundamental Change or Termination of Trading.

“Disqualified Stock” means any
Capital Stock that, by its terms (or by the terms of any security into which it
is convertible, or for which it is exchangeable, in each case, at the option of
the holder of the Capital Stock), 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 of the Capital Stock, in
whole or in part, on or prior to the date that is ninety-one (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 of the Capital Stock have the right to require the Company to
repurchase such Capital Stock upon the occurrence of a change of control or an
asset sale will 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 the covenant described under Section 5.07 hereof.  The amount of Disqualified Stock deemed to be
outstanding at any time for purposes of this Indenture will be the maximum
amount that the Company and its Restricted Subsidiaries may become obligated to
pay upon the maturity of, or pursuant to any mandatory redemption provisions
of, such Disqualified Stock, exclusive of accrued dividends.

“Distribution Compliance Period” means the
forty (40)-day distribution compliance period as defined in Rule 903(b)(2) of
Regulation S.

“Domestic
Restricted Subsidiary” means any Restricted Subsidiary of the
Company that was formed under the laws of the United States or any state of the
United Sates or the District of Columbia or that guarantees or otherwise
provides direct credit support for any Indebtedness of the Company or any of
its Restricted Subsidiaries.

“DTC” means The
Depository Trust Company.

 

 10

 

“EBITDA” with respect to any Person for any period means the
sum (without duplication) of Consolidated Net Income, plus the following to the
extent deducted in calculating such Consolidated Net Income:

(1)                                  all
income tax expense of such Person and its consolidated Restricted Subsidiaries;

(2)                                  Consolidated
Interest Expense;

(3)                                  depreciation
and amortization expense of such Person and its Restricted Subsidiaries
(excluding amortization expense attributable to a prepaid cash item that was
paid in a prior period); and

(4)                                  all
other non-cash charges of such Person and its consolidated Restricted
Subsidiaries (excluding any such non-cash charge to the extent that it
represents an accrual of or reserve for cash expenditures in any future
period),

in each case for such period. Notwithstanding the
foregoing, the provisions for taxes based on the income or profits of, and the
depreciation and amortization and non-cash charges of, a Restricted Subsidiary
shall be added to Consolidated Net Income to compute EBITDA only to the extent
(and in the same proportion) that the net income of such Restricted Subsidiary
was included in calculating Consolidated Net Income and only if a corresponding
amount would be permitted at the date of determination to be dividended to the
Person in question by such Restricted Subsidiary without prior approval (that
has not been obtained), pursuant to the terms of its charter and all
agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to such Restricted Subsidiary or its
stockholders.

“Equity Interests”
means Capital Stock and all
warrants, options or other rights to acquire Capital Stock (but excluding any
debt security that is convertible into, or exchangeable for, Capital Stock).

“Escrow Account” shall mean the account into which the Company will
have deposited on the date of this Indenture, pursuant to the Escrow Agreement,
cash or Government Securities that, upon maturity, will be equal to the
amount  sufficient for the Company to
fully pay the initial four interest payments when due on the Notes, to be held
by the Escrow Agent for the benefit of the Holders.

“Escrow Agent” means Wells Fargo Bank, National Association, in its
capacity as Escrow Agent under the Escrow Agreement, together with its
successors in such capacity.

“Escrow Agreement”
shall mean the Escrow and
Security Agreement, dated as of the date of this Indenture, among the Company,
the Guarantors, the Escrow Agent and the Trustee, in its capacity as the
Collateral Agent, as such agreement may be amended, modified or supplemented
from time to time, in accordance with its terms and the terms of this
Indenture.

“Euroclear” means Euroclear Bank, S.A./N.V.

“Exchange Act” means the Securities Exchange Act of 1934, as
amended.

 11
 

 

“Excluded Assets”
will include, among other things, (1) any lease, license, permit, franchise,
power, authority or right if, to the extent that and for long as (A) the grant
of a security interest therein validly constitutes or would result in the
abandonment, invalidation or unenforceability of such lease, license, permit,
franchise, power, authority or right or the termination or default under the
instrument or agreement by which such lease, license, permit, franchise, power,
authority or right is governed and (B) such abandonment, invalidation,
unenforceability, breach, termination or default is not rendered ineffective
pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor
provision) of any relevant jurisdiction or other applicable law (including the
Bankruptcy Code) or principles of equity; provided, however,
that (x) such lease, license, permit, franchise, power, authority or right will
be an Excluded Asset only to the extent and for as long as the conditions set
forth in clauses (A) and (B) of this paragraph are and remain satisfied, and to
the extent such assets otherwise constitute Collateral, such assets will cease
to be Excluded Assets and will become subject to the first priority security
interest of the Collateral Agent for the benefit of the Holders and of the Pari
Passu Collateral Agent for the benefit of the holders of any Pari Passu
Obligations, immediately and automatically at such time as such conditions
cease to exist, including by reason of any waiver or consent under the
applicable instrument or agreement, and (y) the proceeds of any sale, lease or
other disposition of any such lease, license, permit, franchise, power,
authority or right that is or becomes an Excluded Asset shall not be an
Excluded Asset and shall at all times be and remain subject to the first
priority security interest of the Collateral Agent for the benefit of the
Holders and of the Pari Passu Collateral Agent for the benefit of the holders
of any Pari Passu Obligations, (2) property securing Capital Lease Obligations,
mortgage financings or purchase money obligations and Indebtedness secured by
Liens existing as of the Original Issue Date in favor of Mitsui & Co.,
(U.S.A.), Inc. and Mitsui & Co., Ltd. pursuant to those certain Master
Installment Sale and Security Agreements, each dated as of April 2, 2004
permitted to be incurred under this Indenture to the extent the documents
governing such Indebtedness prohibit the granting of a security interest in the
assets securing such Indebtedness, (3) non-material real property, (4) leased
real property, (5) any instrument evidencing Indebtedness owed to the Company
or any of the Guarantors to the extent that (A) the existence and amount of
such instrument was disclosed in the Final Offering Memorandum or (B) such
instrument is created following the Original Issue Date in a transaction that
complies with this Indenture, and (6) amounts in the Escrow Account. The Notes
also do not have the benefit of any security interest in the assets of any
Subsidiaries of the Company that are not Domestic Restricted Subsidiaries.

“Existing Indebtedness”
means all Indebtedness of the Company and its Restricted Subsidiaries in
existence on the Original Issue Date, until such amounts are repaid.

“Fair Market Value” means the value that would be paid by a willing
buyer to an unaffiliated willing seller in a transaction not involving distress
or necessity of either party, determined in good faith by the Board of
Directors of the Company (unless otherwise provided in this Indenture), evidenced
by a Board Resolution delivered to the Trustee.

“FCC” means the
U.S. Federal Communications Commission and any successor agency that is
responsible for regulating the U.S. telecommunications industry.

“FCC License” means any authorization, license or permit issued by
the FCC, together with any extensions or renewals thereof.

 12
 

 

“Field EBITDA”
means, with respect to any Person for any period, the consolidated service
revenues minus the cost of service revenues (excluding depreciation and
amortization) of such Person and its consolidated Restricted Subsidiaries, as
contained on such Person’s consolidated income statement, minus the field
personnel expense of such Person and its consolidated Restricted Subsidiaries,
for such period, all as determined in accordance with GAAP, on an annualized
basis, and certified to the Trustee in an Officer’s Certificate.

“Final Offering
Memorandum” means the
offering memorandum of the Company, dated October 25, 2006, relating to the
offering of the Initial Notes.

“Fundamental Change” will be deemed to have occurred at such
time as:

(1)                                  any
“person” or “group” (as these terms are used for purposes of Section 13(d) and
14(d) of the Exchange Act), other than a Permitted Holder or a “group” the
majority of the voting power of the shares of the Company’s Capital Stock
beneficially owned by which is beneficially owned by Permitted Holders, is or
becomes the “beneficial owner” (as that term is used in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 50% or more of the total voting power
of all classes of the Company’s Capital Stock entitled to vote generally in the
election of directors;

(2)                                  the
following Persons cease for any reason to constitute a majority of the Company’s
Board of Directors:

A.           individuals who on the
Original Issue Date constituted the Company’s Board of Directors; and

B.             any new directors whose
election to the Company’s Board of Directors or whose nomination for election
by the Company’s stockholders was approved by at least a majority of the Company’s
Board of Directors, or if applicable, a majority of the Company’s directors on
the Board of Directors’ nominating committee then still in office who were
either directors on the Original Issue Date or whose election or nomination for
election was previously so approved;

(3)                                  the Company consolidates with, or merges with
or into, another Person or any Person consolidates with, or merges with or
into, the Company, in any such event other than pursuant to a transaction in
which the Persons that “beneficially owned,” directly or indirectly, the shares
of the Company’s Voting Stock immediately prior to such transaction, “beneficially
own,” directly or indirectly, immediately after such transaction, shares of the
continuing or surviving Person’s Voting Stock representing at least a majority
of the total voting power of all outstanding classes of Voting Stock of the
continuing or surviving Person;

(4)                                  the sale, transfer, lease, conveyance or
other disposition of all or substantially all of the Company’s assets or
properties to any “person” or “group” (as those terms are used in Sections
13(d) and 14(d) of the Exchange Act), including any group 

 13
 

 

 

acting
for the purpose of acquiring, holding, voting or disposing of securities within
the meaning of Rule 13d-5(b)(1) under the Exchange Act; or

(5)                                  the Company is liquidated or dissolved or
holders of the Company’s Capital Stock approve any plan or proposal for its
liquidation or dissolution.

However, a Fundamental Change will not be deemed to
have occurred if, in the case of a merger or consolidation, 90% or more of the
total consideration (other than cash payments for fractional shares or pursuant
to statutory appraisal rights) in the merger or consolidation constituting the
Fundamental Change consists of common stock and any associated rights traded on
a United States national securities exchange or quoted on the Nasdaq Global
Market (or which will be so traded or quoted when issued or exchanged in
connection with such Fundamental Change), and, as a result of such transaction
or transactions, the Holders’ rights to convert Notes into shares of Common
Stock will be changed into the right to convert Notes into the kind and amount
of cash, securities or other property that the Holder would have received if
the Holder had converted its Notes immediately prior to such transaction or
transactions.

“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 such other
statements by such other entity as 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 2.06(f)(ii) hereof, 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 Notes and the Unrestricted
Global Notes deposited with or on behalf of and registered in the name of the
Depositary or its nominee, substantially in the form of Exhibit A hereto and
that bears the Global Note Legend and that has the “Schedule of Exchanges of
Interests in the Global Note” attached thereto.

“Government Securities” means
securities that are direct obligations of, or obligations guaranteed by, the
United States of America, and the payment for which the United States pledges
its full faith and credit.

“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 (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services, to
take or pay or to maintain financial statement conditions or otherwise).

“Guarantor” means each
Domestic Restricted Subsidiary on the date of this Indenture, and each other
Domestic Restricted Subsidiary that executes a Note Guarantee in accordance
with the provisions of this Indenture, in each case, together with their
respective successors and 

 14
 

 

assigns, unless and until
the Note Guarantee of such Person has been released in accordance with the
provisions of this Indenture.

“Hedging
Obligations” means, with respect to any specified Person, the
obligations of such Person incurred in the ordinary course of business to
protect against interest rate and foreign currency exchange rate fluctuations,
under:

(1)                                  interest rate
swap agreements, interest rate cap agreements and interest rate collar agreements;

(2)                                  other
agreements or arrangements designed to manage interest rates or interest rate
risk; and

(3)                                  other
agreements or arrangements designed to protect such Person against fluctuations
in currency exchange rates or commodity prices.

“Holder” means a Person
in whose name a Note is registered.

“IAI Global Note” means a Global
Note substantially 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 shall be
initially issued in a denomination equal to $0, but shall thereafter be revised
to represent the outstanding principal amount of the Notes transferred to
Institutional Accredited Investors.

“Indebtedness” means, with
respect to any specified Person, any Indebtedness of such Person (excluding
accrued expenses and trade payables), whether or not contingent:

(1)                                  in respect of
borrowed money;

(2)                                  evidenced by
bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof);

(3)                                  in respect of
banker’s acceptances;

(4)                                  representing
Capital Lease Obligations;

(5)                                  representing
the balance deferred and unpaid of the purchase price of any property or
services due more than six months after such property is acquired or such
services are completed; or

(6)                                  representing
any Hedging Obligations,

if and to the extent any of
the preceding items (other than letters of credit and Hedging Obligations)
would appear as a liability upon a balance sheet of the specified Person
prepared in accordance with GAAP and also includes, to the extent not otherwise
included, the amount of all obligations of such Person with respect to the
redemption, repayment or other repurchase of any Disqualified Stock or, with
respect to any Subsidiary of such Person, the liquidation preference with
respect to any preferred Equity Interests. In addition, the term “Indebtedness”
includes all 

 15
 

 

Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such
Indebtedness is assumed by the specified Person) and, to the extent not
otherwise included, the Guarantee by the specified Person of any Indebtedness
of any other Person.

“Indenture” means this
Indenture, as amended or supplemented from time to time in accordance with its
terms.

“Indirect Participant” means a Person
who holds a beneficial interest in a Global Note through a Participant.

“Initial Notes” means $402.5
million aggregate principal amount of Notes issued under this Indenture on the
date of this Indenture.

“Initial Purchasers” means Jefferies
& Company, Inc. and Deutsche Bank Securities Inc.

“Institutional Accredited
Investor” means an institution that is an “accredited
investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act, who are not also QIBs.

“Intercreditor Agreement” means the
intercreditor agreement, substantially in the form of Exhibit G hereto, as
amended, modified, superseded, reinstated, succeeded or replaced from time to
time in accordance with its terms and the terms of this Indenture, entered into
concurrently with the closing of the Working Capital Facility or upon the
incurrence of any Pari Passu Indebtedness incurred after the date of this
Indenture, among the Company, the Guarantors party to the Working Capital
Facility, the Working Capital Facility Collateral Agent, the Collateral Agent,
on behalf of the Holders, and any Pari Passu Collateral Agent, on behalf of
holders of Pari Passu Indebtedness (or if none, the holders of Pari Passu
Indebtedness).

“Interest
Rate Agreement” means with respect to any Person any interest rate
protection agreement, interest rate future agreement, interest rate option
agreement, interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement, interest rate hedge agreement or other similar agreement
or arrangement designed to provide protection against fluctuations in interest
rates as to which such Person is party or a beneficiary.

“Investments” means, with
respect to any Person, all direct or indirect investments by such Person in
other Persons (including Affiliates) in the forms of loans (including
Guarantees or other obligations), advances or capital contributions (excluding
commission, travel and similar advances to officers and employees made 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 such that, after giving effect to
any such sale or disposition, such Person is no longer a Restricted Subsidiary
of the Company, the Company or such Restricted Subsidiary will be deemed to
have made an Investment on the date of any such sale or disposition in such
Restricted Subsidiary. The acquisition by the Company or any Restricted
Subsidiary of the Company of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Restricted
Subsidiary in such third Person.

 16
 

 

“Issue Price”
means 100% of the principal amount of the Notes.

“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 UCC (or equivalent
statutes) of any jurisdiction.

“Liquidated
Damages” means all liquidated damages then owing pursuant to the
Registration Rights Agreement.

“Moody’s”
means Moody’s Investors Services, Inc.

“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 (1) the direct costs relating to such Asset
Sale, including, without limitation, legal, accounting and investment banking
fees, sales commissions, relocation expenses incurred as a result of the Asset
Sale, and taxes paid or payable as a result of the Asset Sale after taking into
account any available tax credits or deductions and any tax sharing
arrangements, (2) amounts required to be applied to the repayment of
Indebtedness, other than Indebtedness under a Working Capital Facility, secured
by a Lien on the asset or assets that were the subject of such Asset Sale, and
(3) any reserve for adjustment in respect of the sale price of such asset or
assets established in accordance with GAAP.

“Non-Recourse
Indebtedness” means Indebtedness:

(1)                                  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) or (B) is directly or indirectly liable as a
guarantor or otherwise; and

(2)                                  no default with
respect to which (including any rights that the holders of the Indebtedness 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 to cause the payment of the Indebtedness
to be accelerated or payable prior to its Stated Maturity.

“Non-U.S. Person” means a Person
who is not a U.S. Person.

“Note
Documents” means this Indenture, the Notes, the Note Guarantees, the
Collateral Agreements, the Purchase Agreement, the Registration Rights
Agreement and any other agreements governing, securing or relating to any Note
Obligations.

“Note Guarantee” means the
Guarantee by each Guarantor of the Company’s payment obligations under this
Indenture.

 17
 

 

“Note
Indebtedness” means: (1) the Initial Notes and the Note Guarantees
issued on the Original Issue Date and (2) any Additional Notes and Note
Guarantees thereon issued pursuant to this Indenture.

“Note Lien”
means a Lien granted by a Collateral Agreement to the Collateral Agent (or any
other holder, or representative of holders, of Note Obligations), at any time,
upon any assets of the Company or any Guarantor to secure Note Obligations.

“Note
Obligations” means Note Indebtedness and all other Obligations in
respect thereof.

“Notes” has the
meaning assigned to it in the preamble to this Indenture.  The Initial Notes and the Additional Notes
shall be treated as a single class for all purposes under this Indenture,
including waivers, amendments, redemptions and offers to purchase.

“Obligations”
means:

(1)                                  with respect to
Note Indebtedness, any principal, premium, if any, accrued and unpaid interest,
including Liquidated Damages, if any, or monetary penalty, or damages, due by
the Company or any Guarantor under the terms of the Notes or this Indenture;

(2)                                  with respect to Working
Capital Facility Indebtedness, any principal (including reimbursement
obligations with respect to letters of credit whether or not drawn), interest
(including, to the extent legally permitted, all interest accrued thereon after
the commencement of any insolvency or liquidation proceeding at the rate,
including any applicable post-default rate, specified in the Working Capital
Facility Documents, even if such interest is not enforceable, allowable or
allowed as a claim in such proceeding), premium (if any), fees,
indemnifications, reimbursements, expenses and other liabilities payable by the
Company or any guarantor of the Working Capital Facility Indebtedness.

“Officer” means, with
respect to any Person, the Chairman of the Board, the Vice Chairman of the
Board, the Chief Executive Officer, the President, the Chief Operating Officer,
the Chief Financial Officer, the Chief Accounting Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary or any Vice-President of
such Person.

“Officer’s Certificate” means a
certificate signed on behalf of the Company by an Officer of the Company, who
must be the Chief Executive Officer, the Chief Financial Officer, the Treasurer
or the Chief Accounting Officer of the Company, that meets the requirements of
Section 14.05 hereof.

“Opinion of Counsel” means an
opinion from legal counsel who is reasonably acceptable to the Trustee, that
meets the requirements of Section 14.05 hereof.  The counsel may be internal or external
counsel to the Company or counsel to the Trustee.

“Ordinary
Course Affiliate Transaction” means any Affiliate Transaction
entered into in the ordinary course of business that is comprised of (1) a
lease or leases or other similar arrangements for the installation and
existence of the Company’s or any of its Restricted 

 18
 

 

Subsidiaries’ equipment on
or about radio towers or other structures, (2) the acquisition or provision of
communication transport services via fiber optic or other communications
infrastructure, or (3) other contractual arrangements relating to (1) or (2).

“Original
Issue Date” means November 9, 2006.

“Pari Passu
Collateral Agent” means, at any time, the Person serving at such
time as the “Collateral Agent” under the agreement governing any Pari Passu
Indebtedness or any other representative then most recently designated in
accordance with the applicable provisions of any such agreement, together with
its successors in such capacity.

“Pari Passu
Indebtedness” has the meaning ascribed to it in the Intercreditor
Agreement.

“Pari Passu
Obligations” means the Pari Passu Indebtedness and all other
Obligations in respect of Pari Passu Indebtedness.

“Participant” means, with
respect to the Depositary, Euroclear or Clearstream, a Person who has an
account with the Depositary, Euroclear or Clearstream (and, with respect to
DTC, shall include Euroclear and Clearstream).

“Permitted
Business” means the business of the Company and its Restricted
Subsidiaries as described in the Final Offering Memorandum and any business or
activity reasonably related or ancillary thereto.

“Permitted
Holders” means Crown Castle Investment Corp., Oak Investment, Aspen
Advisors LLC, Tudor Investment Corporation, TCS Capital GP, LLC, Peninsula
Investment Partners, L.P., American Towers, Inc., Goldman, Sachs & Co,
Ramius Capital Group, LLC, Quaker Capital Management Corp. and their respective
Affiliates.

“Permitted
Investments” means;

(1)                                  any Investment
in the Company or in a wholly-owned Restricted Subsidiary of the Company;

(2)                                  any investment
in Cash Equivalents;

(3)                                  any Investment
by the Company or a wholly-owned Restricted Subsidiary of the Company in a
Person, if as a result of such Investment:

A.           such Person becomes a
wholly-owned Restricted Subsidiary of the Company; or

B.             such Person is merged,
consolidated or amalgamated with or into, or transfers or conveys substantially
all of its assets to, or is liquidated into, the Company or a wholly-owned
Restricted Subsidiary of the Company;

(4)                                  any Investment
made as a result of the receipt of non-cash consideration from an Asset Sale
that was made pursuant to and in compliance with Section 5.10 hereof;

 19
 

 

(5)                                  any acquisition
of assets or Capital Stock solely in exchange for the issuance of Equity
Interests (other than Disqualified Stock) of the Company;

(6)                                  any Investments
received in compromise or resolution of litigation, arbitration or other
disputes;

(7)                                  Investments
represented by Hedging Obligations;

(8)                                  loans or
advances to employees made in the ordinary course of business of the Company or
any Restricted Subsidiary of the Company for bona fide business purposes in an
aggregate principal amount not to exceed $1.0 million at any one time
outstanding;

(9)                                  the making of
any other Investment not otherwise permitted under the immediately preceding
clauses (1) to (8) having a Fair Market Value (measured on the date such
Investment was made and without giving effect to subsequent changes in value),
when taken together with all other Permitted Investments made since the date of
this Indenture pursuant to this clause (9) that are at the time outstanding, in
an aggregate amount not to exceed $5.0 million; and

(10)                            repurchases of
the Notes.

“Permitted
Liens” means:

(1)                                  subject to the
terms of the Intercreditor Agreement, Liens on assets of the Company or any of
the Guarantors securing Indebtedness and other Obligations under the Working
Capital Facility that was permitted by the terms of this Indenture to be
incurred and/or securing Hedging Obligations related thereto;

(2)                                  subject to the
terms of the Intercreditor Agreement, Liens to secure Indebtedness permitted by
clause (2) of the second paragraph of Section 5.09 hereof;

(3)                                  subject to the
terms of the lntercreditor Agreement, Liens to secure Indebtedness (including
Capital Lease Obligations) permitted by clause (10) of the second paragraph of
Section 5.09 hereof covering only the assets acquired with or financed by such
Indebtedness;

(4)                                  Liens existing
as of the Original Issue Date in favor of Mitsui & Co., (U.S.A.), Inc. and
Mitsui & Co., Ltd. pursuant to those certain Master Installment Sale and
Security Agreements, each dated as of April 2, 2004;

(5)                                  Liens securing
Indebtedness and other Obligations represented by the Initial Notes issued on
the Original Issue Date and any Additional Notes issued as interest on the
Notes, and the Note Guarantees with respect thereto;

(6)                                  Liens in favor
of the Company or any Restricted Subsidiary of the Company;

 20

 

(7)                                  Liens
to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the
ordinary course of business;

(8)                                  Liens
for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently concluded; provided that any reserve or
other appropriate provision as is required in conformity with GAAP has been
made therefor;

(9)                                  Liens
imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’
Liens, in each case, incurred in the ordinary course of business;

(10)                            survey
exceptions, 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
property that were not incurred in connection with Indebtedness and that do not
in the aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person;

(11)                            Liens
on property of a Person existing at the time such Person is merged with or into
or consolidated with the Company or any Subsidiary of the Company; provided that such Liens were in existence prior to, and not
incurred in contemplation of, such merger or consolidation and do not extend to
any assets other than those of the Person merged into or consolidated with the
Company or the Subsidiary;

(12)                            Liens
on property (including Capital Stock) existing at the time of acquisition of
such property by the Company or any Subsidiary of the Company; provided that such Liens were in existence prior to such
acquisition, and not incurred in contemplation of, such acquisition;

(13)                            Liens
to secure any Permitted Refinancing Indebtedness permitted to be incurred under
this Indenture; provided, however, that:

A.                                   the
new Lien shall be limited to all or part of the same property and assets that
secured or, under the written agreements pursuant to which the original Lien
arose, could secure the original Lien (plus improvements and accessions to such
property or proceeds or distributions thereof); and

B.                                     the
Indebtedness secured by the new Lien is not increased to any amount greater
than the sum of (x) the outstanding principal amount, or, if greater, committed
amount, of the Permitted Refinancing Indebtedness and (y) an amount necessary
to pay any fees and expenses, including premiums, related to such Permitted
Refinancing Indebtedness;

(14)                            to the extent, in each case, not otherwise
resulting in an Event of Default, Liens arising by reason of a judgment, decree
or court order and any Liens that are 

 21
 

 

required
to protect or enforce any rights in any administrative, arbitration or other
court proceedings in the ordinary course of business;

(15)                            Liens
contained in purchase and sale agreements limiting the transfer of assets
pending the closing of the transactions contemplated thereby; and

(16)                            Liens
that may be deemed to exist by virtue of contractual provisions that restrict
the ability of the Company or any of its Subsidiaries from granting or
permitting to exist Liens on their respective assets.

“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 renew, refund, refinance, replace, defease or discharge other
Indebtedness of the Company or any of its Restricted Subsidiaries (other than
intercompany Indebtedness); provided that:

(1)                                  the principal amount (or accreted value, if
applicable) of such Permitted Refinancing Indebtedness does not exceed the
principal amount (or accreted value, if applicable) of the Indebtedness
renewed, refunded, refinanced, replaced, defeased or discharged (plus all
accrued and unpaid interest on the Indebtedness and the amount of all fees and
expenses, including premiums, incurred in connection therewith);

(2)                                  such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has an Average Life equal to or greater than the
Average Life of, the Indebtedness being renewed, refunded, refinanced,
replaced, defeased or discharged;

(3)                                  if
the indebtedness being renewed, refunded, refinanced, replaced, defeased or
discharged 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 renewed, refunded, refinanced,
replaced, defeased or discharged; and

(4)                                  such
Indebtedness is incurred either by the Company or by the Restricted Subsidiary
of the Company who is the obligor on the Indebtedness being renewed, refunded,
refinanced, replaced, defeased or discharged.

“Person” means any
individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, limited liability company or
government or other entity.

“Private Placement Legend” means the
legend set forth in Section 2.06(f)(i) hereof to be placed on all Notes issued
under this Indenture except where otherwise permitted by the provisions of this
Indenture.

 22
 

 

“Pro Rata Amount” means, with
respect to any Holder, a fraction, the numerator of which is the aggregate
principal amount of Notes held by such Holder and the denominator of which is
the aggregate principal amount of Notes outstanding.

“Purchase Agreement” means the
purchase agreement, dated October 25, 2006, among the Company, the Guarantors
and the Initial Purchasers of the Initial Notes, as such agreement may be
amended, modified or supplemented from time to time in accordance with its
terms.

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

“Registration Rights Agreement” means the
registration rights agreement, dated as of the date of this Indenture, among
the Company, the Guarantors and the Initial Purchasers of the Initial Notes, as
such agreement may be amended, modified or supplemented from time to time in
accordance with its terms.

“Regulation S” means
Regulation S promulgated under the Securities Act (or any successor provision
promulgated by the SEC).

“Regulation S Global Note” means a Global
Note substantially 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 be issued in
a denomination equal to the outstanding principal amount of the Notes sold in
reliance on Rule 903.

 “Reinvestment Yield”
means a discount rate equal to 0.50% over the yield (1) reported as of 10:00
a.m. (New York City time) on the date of conversion, on the display designated
as “Page PX1” (or such other display as may
replace Page PX1 on Bloomberg Financial Markets) or, if Page PX1 (or its
successor screen on Bloomberg Financial Markets) is unavailable, the Telerate
Access Service screen which corresponds most closely to Page PX1 for the most
recently issued actively traded U.S. Treasury securities having a maturity
closest to November 15, 2009 (in the case of Section 4.10 of this Indenture) or
November 15, 2010 (in the case of Section 4.05(e) of this Indenture), or (2) if
such yields are not reported as of such time or the yields reported as of such
time are not ascertainable (including by way of interpolation), the Treasury
Constant Maturity Series Yields reported, for the latest day for which such
yields have been so reported as of the date of the conversion, in Federal
Reserve Statistical Release H.15 (519) (or any comparable successor
publication) for actively traded U.S. Treasury securities having a maturity closest
to November 15, 2009 (in the case of Section 4.10 of this Indenture) or
November 15, 2010 (in the case of Section 4.05(e) of this Indenture). Such
yield will be determined, if necessary, by (A) converting U.S. Treasury bill
quotations to bond equivalent yields in accordance with accepted financial
practice and (B) interpolating linearly between (x) the actively traded U.S.
Treasury security with the maturity closest to and later than the period from
the date of such conversion to November 15, 2009 (in the case of Section 4.10
of this Indenture) or November 15, 2010 (in the case of Section 4.05(e) of this
Indenture) and (y) the actively traded U.S. Treasury security with the maturity
closest to and earlier than November 15, 2009 (in the case of Section 4.10 of
this Indenture) or November 15, 2010 (in the case of Section 4.05(e) of this
Indenture). The Reinvestment Yield shall be rounded to the number of decimal
places as appears in the interest rate of the applicable note.

 23
 

 

“Responsible Officer”, when used with
respect to the Trustee, means any vice president, assistant vice president,
assistant treasurer, trust officer or any other officer within the Corporate
Trust Administration of the Trustee (or any successor group of the Trustee) or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

“Restricted Definitive Note” means a
Definitive Note bearing the Private Placement Legend.

“Restricted Global Note” means the 144A
Global Note, the IAI Global Note and the Regulation S Global Note, each of
which shall bear the Private Placement Legend.

“Restricted
Investment” means an Investment other than a Permitted Investment.

“Restricted Note” means a
Restricted Definitive Note or Restricted Global Note.

“Restricted
Subsidiary” of any Person means any Subsidiary of such Person which
at the time of determination is not an Unrestricted Subsidiary.

“Rule 144” means Rule 144
promulgated under the Securities Act (or any successor provision promulgated by
the SEC).

“Rule 144A” means Rule
144A promulgated under the Securities Act (or any successor provision
promulgated by the SEC).

“Rule 903” means Rule 903
promulgated under the Securities Act (or any successor provision promulgated by
the SEC).

“Rule 904” means Rule 904
promulgated under the Securities Act (or any successor provision promulgated by
the SEC).

“SEC” means the
Securities and Exchange Commission.

“Secured
Indebtedness Documents” means the Note Documents and the Working
Capital Facility Documents.

“Securities Act” means the
Securities Act of 1933, as amended.

“Senior
Lenders” means the Persons holding Working Capital Facility
Indebtedness.

“Shelf Registration Statement” means the
Shelf Registration Statement as defined in the Registration Rights Agreement.

“Standard
& Poor’s” means Standard & Poor’s Corporation.

“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 

 24
 

 

be paid in the documentation
governing such Indebtedness as of the date of this Indenture, and will 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.

“Subsidiary”
means, with respect to any specified Person:

(1)                                  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 and
after giving effect to any voting agreement or stockholders’ agreement that
effectively transfers voting power) to vote in the election of directors,
managers or trustees of the corporation, association or other business entity
is at the time owned or controlled, directly or indirectly, by that Person or
one or more of the other Subsidiaries of that Person (or a combination
thereof); and

(2)                                  any partnership (A) the sole general partner
or the managing general partner of which is such Person or a Subsidiary of such
Person or (B) the only general partners of which are that Person or one or more
Subsidiaries of that Person (or any combination thereof).

“Termination of Trading” will be deemed
to have occurred if the Common Stock (or other common stock into which the
Notes are then convertible) is neither listed for trading on a United States
national securities exchange nor approved for trading on the Nasdaq Global
Market for a ninety (90)-day period.

“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.

“Trading Day”
means (i) if the Common Stock is quoted on the Nasdaq Global Market or any
system of automated dissemination of quotations of securities prices, days on
which trades may be effected through such system, (ii) if the Common Stock
is listed or admitted for trading on any national or regional securities
exchange, days on which such national or regional securities exchange is open
for business, or (iii) if the Common Stock is not listed on a national or
regional securities exchange or quoted on the Nasdaq Global Market or any
system of automated dissemination of quotation of securities prices, days on
which the Common Stock is traded regular way in the over-the-counter market and
for which a closing bid and a closing asked price for the Common Stock are
available.

“Trustee” means Wells
Fargo Bank, National Association, until a successor replaces it in accordance
with the applicable provisions of this Indenture and thereafter means the
successor serving hereunder.

“UCC”
means the Uniform Commercial Code as in effect in the State of New York or any
other applicable jurisdiction.

“Unrestricted Definitive Note” means a
Definitive Note that does not bear and is not required to bear the Private
Placement Legend.

 25
 

 

“Unrestricted Global Note” means a Global
Note that does not bear and is not required to bear the Private Placement
Legend.

“Unrestricted
Subsidiary” means any Subsidiary of the Company that is designated
by the Board of Directors of the Company as an Unrestricted Subsidiary pursuant
to a Board Resolution, but only to the extent such Subsidiary:

(1)                                  has no Indebtedness other than Non-Recourse
Indebtedness;

(2)                                  except as permitted by Section 5.11 hereof,
is not a 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 other than those that might be obtained
at the time from Persons who are not Affiliates of the Company or any
Restricted Subsidiary of the Company;

(3)                                  is a Person with respect to which neither the
Company nor any of its Restricted Subsidiaries has any direct or indirect
obligation (A) to subscribe for additional Equity Interests or (B) to maintain
or preserve such Person’s financial condition or to cause such Person to
achieve any specified levels of operating results; and

(4)                                  has not guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Company or any
of its Restricted Subsidiaries.

Any designation of a Subsidiary of the Company as an
Unrestricted Subsidiary will be evidenced to the Trustee by filing with the
Trustee a certified copy of the Board Resolution giving effect to such
designation and an Officer’s Certificate certifying that such designation
complied with the preceding conditions and was permitted by Section 5.07
hereof.  If, at any time, any
Unrestricted Subsidiary would fail to meet the preceding requirements as an
Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted
Subsidiary for purposes of this Indenture and any Indebtedness of such
Subsidiary will 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 5.09 hereof, the Company will 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 will 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 will only be permitted if (A) such
Indebtedness is permitted under Section 5.09 hereof, calculated on a pro forma basis as if such designation had occurred at the
beginning of the four-quarter reference period, and (B) no Default or Event of
Default would be in existence following such designation.

“Voting Stock”
of any specified Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the Board of Directors
of such Person.

“Working
Capital Facility” means, one or more debt facilities, up to an
aggregate principal amount of $50.0 million, with banks or other institutional
lenders providing for revolving credit loans, receivables financing (including
through the sale of receivables to such 

 26
 

 

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 (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time.

“Working
Capital Facility Collateral Agent” means, at any time, the Person
serving at such time as the “Collateral Agent” under the Working Capital
Facility or any other representative then most recently designated in
accordance with the applicable provisions of the Working Capital Facility,
together with its successors in such capacity.

“Working
Capital Facility Documents” means the Working Capital Facility, the
Working Capital Facility Security Documents, and all agreements governing or
relating to any Working Capital Facility Obligations.

“Working
Capital Facility Indebtedness” means:

(1)                                  Indebtedness of the Company, the Guarantors
and the guarantors under the Working Capital Facility that was permitted to be
incurred and secured under each applicable Secured Indebtedness Document (or as
to which the lenders under the Working Capital Facility obtained an Officer’s
Certificate at the time of incurrence to the effect that such Indebtedness was
permitted to be incurred and secured by all applicable Secured Indebtedness
Documents); and

(2)                                  Hedging Obligations incurred to hedge or
manage interest rate risk with respect to Working Capital Facility
Indebtedness; provided, that:

A.                                   such
Hedging Obligations are secured by a Working Capital Facility Lien on all of
the assets that secure Indebtedness under the Working Capital Facility; and

B.                                     such Working Capital Facility Lien is senior
to or on a parity with the Working Capital Facility Liens securing Indebtedness
under the Working Capital Facility.

“Working
Capital Facility Lien” means a Lien granted by a Working Capital
Facility Security Document to the Working Capital Facility Collateral Agent (or
any Senior Lender or other representative of the Senior Lenders), at any time,
upon any assets of the Company, any Guarantor or any guarantor under the
Working Capital Facility to secure Working Capital Facility Obligations.

“Working
Capital Facility Security Documents” means the Intercreditor
Agreement and all security agreements, pledge agreements, collateral
assignments, mortgages, deeds of trust, collateral agency agreements, control
agreements or other grants or transfers for security executed and delivered by
the Company or any Guarantor creating (or purporting to create) a Working
Capital Facility Lien upon collateral in favor of the Working Capital Facility
Collateral Agent, in each case, as amended, modified, renewed, restated or
replaced, in whole or in part, from time to time, in accordance with its terms.

 27
 

 

“Working
Capital Obligations” means the Working Capital Facility Indebtedness
and all other Obligations in respect of Working Capital Facility Indebtedness.

Section 1.02.                               Other
Definitions.

	
  Term

  	
   

  	
   

  	
   

  	
  Defined in

  Section

  
	
  “Affiliate
  Transaction”

  	
   

  	
  5.11

  
	
  “Asset
  Sale Offer”

  	
   

  	
  3.09

  
	
  “Authentication
  Order”

  	
   

  	
  2.02

  
	
  “Certificate
  of Conversion & Restricted Transfer”

  	
   

  	
  4.03(d)

  
	
  “Conversion
  Agent”

  	
   

  	
  2.03

  
	
  “Conversion
  Date”

  	
   

  	
  4.03(a)

  
	
  “Conversion
  Make-Whole Amount”

  	
   

  	
  4.10

  
	
  “Conversion
  Notice”

  	
   

  	
  4.03(a)(i)

  
	
  “Conversion
  Rate”

  	
   

  	
  4.02(a)

  
	
  “Covenant
  Defeasance”

  	
   

  	
  9.03

  
	
  “Designated
  Event Expiration Time”

  	
   

  	
  3.08(b)

  
	
  “Designated
  Event Make-Whole Amount”

  	
   

  	
  4.05(e)

  
	
  “Designated
  Event Notice”

  	
   

  	
  3.08(b)

  
	
  “Designated
  Event Repurchase Date”

  	
   

  	
  3.08(a)

  
	
  “Distributed
  Assets”

  	
   

  	
  4.05(a)(iv)

  
	
  “Event
  of Default”

  	
   

  	
  7.01

  
	
  “Excess
  Proceeds”

  	
   

  	
  5.10

  
	
  “Expiration
  Date”

  	
   

  	
  4.05(a)(vii)

  
	
  “incur”

  	
   

  	
  5.09

  
	
  “Legal
  Defeasance”

  	
   

  	
  9.02

  
	
  “Offer
  Amount”

  	
   

  	
  3.09

  
	
  “Offer
  Period”

  	
   

  	
  3.09

  
	
  “Option
  of Holder to Elect Repurchase”

  	
   

  	
  3.08(c)(i)

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  
	
  “Payment
  Default”

  	
   

  	
  7.01

  
	
  “Premises”

  	
   

  	
  5.21

  
	
  “Purchase
  Date”

  	
   

  	
  3.09

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Restricted
  Payments”

  	
   

  	
  5.07

  
	
  “Settlement”

  	
   

  	
  4.03(b)

  
	
  “Subsidiary
  Interests”

  	
   

  	
  4.05(a)(v)

  
	
  “Trigger
  Event”

  	
   

  	
  4.12

  

 

Section 1.03.                         Incorporation
by Reference of 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.

 28
 

 

The following TIA terms used in this Indenture have
the following meanings:

“indenture securities” means the
Notes and the Note Guarantees;

“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
and the Note Guarantees means the Company and the Guarantors, respectively, and
any successor obligor upon the Notes and the Note Guarantees, respectively.

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 1.04.                         Rules of
Construction.

Unless the context
otherwise requires:

(a)           a
term has the meaning assigned to it;

(b)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

(c)           “or”
is not exclusive;

(d)           words
in the singular include the plural, and in the plural include the singular;

(e)           provisions
apply to successive events and transactions; and

(f)            references
to sections of or rules under the TIA, the Securities Act or the Exchange Act
shall be deemed to include substitute, replacement of successor sections or
rules adopted by the SEC from time to time.

ARTICLE 2.

THE NOTES

Section 2.01.                         Form and
Dating.

(a)           General.  The Notes
and the Trustee’s certificate of authentication shall be substantially in the
form of Exhibit A hereto.  The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage.  Each Note shall be dated the date
of its authentication.  The Notes shall
be in denominations of $1,000 and integral multiples thereof.

 29

 

The terms and provisions
contained in the Notes shall constitute, and are hereby expressly made, a part
of this Indenture and the Company, the Guarantors 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.

(b)           Global Notes.  Notes
issued in global form will be substantially in the form of Exhibit A 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 will be
substantially in the form of Exhibit A hereto (but without the Global Note
Legend thereon and the “Schedule of Exchanges of Interests in the Global Note”
attached thereto).  Each Global Note will
represent such of the outstanding Notes as will be specified therein and each
will provide that it represents 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 will be made by the
Trustee or the Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by Section 2.06 hereof.

(c)           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 Banking” and “Customer
Handbook” of Clearstream will be applicable to transfers of beneficial
interests in Global Notes that are held by Participants through Euroclear and Clearstream.

Section 2.02. Execution
and Authentication.

An Officer shall sign the
Notes for the Company by manual or facsimile signature.  The Company’s seal may be reproduced on the
Notes and may be in facsimile form.

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”) accompanied by an Officer’s Certificate, authenticate Notes
for original issue that may be validly issued under this Indenture, including
any Additional Notes issued in lieu of interest payment on the Initial Notes as
permitted by Section 5.09 hereof and paragraph “1. Interest” in the form of
Note attached as Exhibit A hereto or, subject to the satisfaction of all of the
covenants in this Indenture, including, without limitation, Sections 5.09 and
5.12 of this Indenture, in each case in the form of Exhibit A hereto, as part
of the same series as the Initial Notes. 
The aggregate principal amount of Notes outstanding at any time may not
exceed the aggregate principal amount of Notes permitted to be incurred under
this Indenture and authorized

 30
 

 

for issuance by the Company
pursuant to one or more Authentication Orders, except as provided in
Section 2.07 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 2.03. Registrar,
Paying Agent, Conversion Agent and Depositary.

The Company shall maintain
an office or agency where Notes may be presented for registration of transfer
or for exchange (“Registrar”), an office or agency
where Notes may be presented for payment (“Paying Agent”),
and an office or agency where the Notes may be presented for conversion (“Conversion 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 and conversion
agents.  The term “Registrar” includes
any co-registrar, the term “Paying Agent” includes any additional paying agent,
and the term “Conversion Agent” includes any additional conversion agent.  The Company may change any Paying Agent,
Conversion Agent or Registrar without notice to the Holders.  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 Trustee to act as the Registrar, Paying Agent and Conversion Agent
and to act as the Custodian with respect to the Global Notes and as agent for
service of notices and demands.  The Company
initially appoints DTC to act as Depositary with respect to the Global Notes.

Section 2.04. 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 and Aggregate Accreted
Principal Amount, premium and 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.

 31
 

 

 

Section 2.05. 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 (7) 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 2.06. Transfer
and Exchange.

a)             Transfer and Exchange of
Global Notes.  A Global Note
may not be transferred except as a whole 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 has occurred and is continuing a Default or Event of
Default with respect to the Notes.

Upon the occurrence of
either of the preceding events in (i) or (ii) 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 2.07 and
2.10 hereof.  Every Note authenticated
and delivered in exchange for, or in lieu of, a Global Note or any portion
thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10
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 2.06(a),
however, beneficial interests in a Global Note may be transferred and exchanged
as provided in Section 2.06(b), (c) or (d) hereof.

b)            Transfer and Exchange of
Beneficial Interests in the Global Notes. 
The transfer and exchange of beneficial interests in the
Global Notes will be effected through the Depositary, in accordance with the
provisions of this Indenture and the Applicable Procedures.  Beneficial interests in the Restricted Global
Notes will 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 will require compliance with either subparagraph (i) or

 32
 

 

(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; provided, however,
that prior to the expiration of the Distribution Compliance 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 the
Initial Purchasers).  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.  No written orders or
instructions shall be required to be delivered to the Registrar to effect the
transfers described in this Section 2.06(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 2.06(b)(i) above, the transferor of such beneficial interest must
deliver to the Registrar either:

(1)          both:

A.           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 credited a beneficial interest in another Global Note in an amount equal to
the beneficial interest to be transferred or exchanged; and

B.             instructions given in
accordance with the Applicable Procedures containing information regarding the
Participant account to be credited with such increase; or

(2)          both:

A.           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

B.             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 (2)(A) above.

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 2.06(h) hereof.

 33
 

 

(iii)          Transfer of
Beneficial Interests 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 2.06(b)(ii) above and the
Registrar receives the following:

(1)          if the transferee shall 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;

(2)          if the transferee shall 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; or

(3)          if the transferee shall take delivery in the
form of a beneficial interest in the IAI 
Global Note, then the transferor must deliver a certificate in the form
of Exhibit B hereto, including the certifications in item (3) 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 if the
exchange or transfer complies with the requirements of Section 2.06(b)(ii)
above and:

(1)          such transfer is effected pursuant to the
Shelf Registration Statement in accordance with the Registration Rights
Agreement; or

(2)          the Registrar receives the following:

A.           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
certification in item (1)(a) thereof; or

B.             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 (iv), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar, if applicable, 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.

 34

 

If any such transfer is
effected pursuant to subparagraph (ii) or (iv) 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 2.02
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 (ii) or
(iv) above.

Beneficial interests in an
Unrestricted Global Note cannot be exchanged for, or transferred to Persons who
take delivery thereof in the form of, a beneficial interest in a Restricted
Global Note.

c)             Transfer or Exchange of
Beneficial Interests for Definitive Notes.

(i)            Beneficial Interests in Restricted Global Notes to
Restricted Definitive Notes.  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:

(1)          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;

(2)          if such beneficial interest 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;

(3)          if such beneficial interest is being
transferred to a Non-U.S. Person 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;

(4)          if such beneficial interest 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;

(5)          if such beneficial interest is being
transferred to an Institutional Accredited Investor in reliance on an exemption
from the registration requirements of the Securities Act other than those
listed in clauses (2) through (4) above, a certificate to the effect set forth
in Exhibit B hereto, including the certifications, certificates and Opinion of
Counsel required by item (3) thereof, if applicable;

(6)          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

(7)          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,

 35
 

 

 

the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company shall
execute and the Trustee shall authenticate and deliver to the Person designated
in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a
beneficial interest in a Restricted Global Note pursuant to this
Section 2.06(c) 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 Definitive Notes to the Persons in whose
names such Notes are so registered.  Any Definitive
Note issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.06(c)(i) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein.

(ii)           Beneficial Interests in Restricted Global Notes to
Unrestricted Definitive Notes.   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:

(1)          such transfer is effected pursuant to the
Shelf Registration Statement in accordance with the Registration Rights
Agreement; or

(2)          the Registrar receives the following:

A.           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

B.             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
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 (ii), if the Registrar so requests or if the Applicable Procedures
so require, an Opinion of Counsel in form reasonably acceptable to the
Registrar, if applicable, 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.

(iii)          Beneficial Interests in Unrestricted Global Notes to
Unrestricted Definitive Notes.  If
any holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Note,

 36
 

 

then, upon satisfaction of
the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee will
cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(h) hereof, and the Company
will execute and the Trustee will authenticate and deliver to the Person
designated in the instructions a Definitive Note in the appropriate principal
amount.  Any Definitive Note issued in
exchange for a beneficial interest pursuant to this Section 2.06(c)(iii)
will be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest requests through
instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant.  The
Trustee will deliver such Definitive Notes to the Persons in whose names such
Notes are so registered.  Any Definitive
Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(iii) will not bear the Private Placement Legend.

d)            Transfer and Exchange of
Definitive Notes for Beneficial Interests.

(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:

(1)          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;

(2)          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;

(3)          if such Restricted Definitive Note is being
transferred to a Non-U.S. Person 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;

(4)          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;

(5)          if such Restricted Definitive Note is being
transferred to an Institutional Accredited Investor in reliance on an exemption
from the registration requirements of the Securities Act other than those
listed in subparagraphs (2) through (4) above, a certificate to the
effect set forth in Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if
applicable;

 37
 

 

(6)          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

(7)          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 will cancel the Restricted Definitive Note, increase or cause to be
increased the aggregate principal amount of, in the case of clause
(1) above, the appropriate Restricted Global Note, in the case of clause
(2) above, the 144A Global Note, in the case of clause (3) above, the
Regulation S Global Note, and in all other cases, the IAI 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:

(1)          such transfer is effected pursuant to the
Shelf Registration Statement in accordance with the Registration Rights
Agreement; or

(2)          the Registrar receives the following:

A.           if the Holder of such
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

B.             if the Holder of such
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;

and, in each such case set forth in this
subparagraph (ii), if the Registrar so requests or if the Applicable Procedures
so require, an Opinion of Counsel in form reasonably acceptable to the
Registrar, if applicable, 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 2.06(d)(ii), the
Trustee will cancel the Definitive Notes 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

 38
 

 

a beneficial interest in an
Unrestricted Global Note or transfer such 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 will cancel the
applicable Unrestricted Definitive Note and increase or cause to be increased
the aggregate principal amount of one of the Unrestricted Global Notes.

If any such exchange or
transfer from a Definitive Note to a beneficial interest is effected pursuant
to subparagraphs (ii) or (iii) of this subsection (d) at a time when
an Unrestricted Global Note has not yet been issued, the Company will issue
and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee will 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 2.06(e),
the Registrar will register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder must 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 its attorney, duly authorized in writing. 
In addition, the requesting Holder must provide any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 2.06(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:

(1)          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;

(2)          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; or

(3)          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.

(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 if:

 39
 

 

 

(1)          such transfer is effected pursuant to the
Shelf Registration Statement in accordance with the Registration Rights
Agreement; or

(2)          the Registrar receives the following:

A.           if the Holder of such
Restricted Definitive Note proposes to exchange such Note 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

B.             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 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 (ii), if the Registrar so requests, 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.

(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 Notes.  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.

Concurrently with the
issuance of such Notes, the Trustee will cause the aggregate principal amount
of the applicable Restricted Global Notes to be reduced accordingly, and the
Company will execute and the Trustee will authenticate and deliver to the
Persons designated by the Holders of Definitive Notes so accepted Unrestricted
Definitive Notes in the appropriate principal amount.

f)             Legends.  The following legends will 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.

(1)          Except as permitted by subparagraph (2)
below, each Global Note and each Definitive Note (and all Notes issued in
exchange therefore or substitution thereof) shall bear the legend in
substantially the following form:

“THE SECURITY (OR ITS
PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES

 40
 

 

SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR
AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED
HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON AN EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT.  THE HOLDER OF THE SECURITY EVIDENCED HEREBY
AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO
A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT,
(d) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE
501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AN “INSTITUTIONAL
ACCREDITED INVESTOR”)) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT PURPOSES
AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE
FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND AN OPINION OF COUNSEL
ACCEPTABLE TO FIBERTOWER CORPORATION THAT SUCH TRANSFER IS IN COMPLIANCE WITH
THE SECURITIES ACT OR (e) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF
COUNSEL IF THE ISSUER OF THE SECURITY SO REQUESTS), (2) TO THE ISSUER OF
THE SECURITY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND,
IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT
OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN
(A) ABOVE.”

(2)          Notwithstanding the foregoing, any Global
Note or Definitive Note issued pursuant to subsections (b)(iv), (c)(ii),
(c)(iii), (d)(ii), (d)(iii), (e)(ii) or (e)(iii) of

 41
 

 

this Section 2.06 (and all Notes issued in exchange therefore or
substitution thereof) will not bear the Private Placement Legend.

(ii)           Global Note Legend. 
Each Global Note will bear a legend in substantially the following form:

“THIS GLOBAL NOTE IS HELD BY
THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE
IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE
TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION
2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL
NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) (“DTC”), TO THE COMPANY 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 MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR SUCH OTHER ENTITY AS MAY BE 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.”

g)            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 will be
returned to or retained and canceled by the Trustee in accordance with
Section 2.11 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 will be reduced
accordingly and an endorsement will be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect

 42
 

 

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 will be increased accordingly
and an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

h)            General Provisions
Relating to Transfers and Exchanges.

(i)            To permit registrations of transfers and exchanges, the
Company will execute and the Trustee will authenticate Global Notes and
Definitive Notes upon receipt of an Authentication Order in accordance with
Section 2.02 hereof or at the Registrar’s request.

(ii)           No service charge will 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
2.10, 3.06, 3.08, 3.09, 5.10 and 10.05 hereof).

(iii)          The Registrar will not be required to register the transfer
of or exchange of 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 will
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)           Neither the Registrar nor the Company will be required:

(1)          to issue, to register the transfer of or to
exchange any Notes during a period beginning at the opening of business fifteen
(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;

(2)          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; or

(3)          to register the transfer of or to exchange a Note
between a record date and the next succeeding interest payment date.

(vi)          Prior to due presentment for the registration of a transfer
of any Note, 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 and Aggregate Accreted
Principal Amount of and interest, premium

 43
 

 

and Liquidated Damages, if
any, 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 will authenticate Global Notes and Definitive
Notes in accordance with the provisions of Section 2.02 hereof.

(viii)        All certifications, certificates and
Opinions of Counsel required to be submitted to the Registrar pursuant to this
Section 2.06 to effect a registration of transfer or exchange may be
submitted by facsimile.

Section 2.07. 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
Trustee or the Company may charge for its expenses in replacing a Note.

Every replacement Note 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 2.08. Outstanding
Notes.

The Notes outstanding at any
time are all the Notes authenticated by the Trustee, except for those canceled
by it, those converted pursuant to Article 4, 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 2.08 as not outstanding.  Except
as set forth in Section 2.09 hereof, a Note does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Note.

If a Note is replaced
pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a
protected purchaser.

If the principal amount or
Aggregate Accreted Principal Amount of any Note is considered paid under
Section 5.01 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.

 44
 

 

 

Section 2.09. Treasury
Notes.

In determining whether the
Holders of the required principal amount or Aggregate Accreted Principal Amount
of Notes have concurred in any direction, waiver or consent, Notes owned by the
Company or any Guarantor, or by any Person directly or indirectly controlling
or controlled by or under direct or indirect common control with the Company or
any Guarantor, 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 the Trustee knows are
so owned shall be so disregarded.

Section 2.10. 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.

Section 2.11. Cancellation.

The Company at any time may
deliver Notes to the Trustee for cancellation. 
The Registrar, Paying Agent and Conversion Agent shall forward to the
Trustee any Notes surrendered to them for registration of transfer, exchange,
payment or conversion.  The Trustee and
no one else shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement, cancellation or conversion and shall dispose of
canceled Notes (subject to the record retention requirement of the Exchange
Act) according to its standard procedures. 
The Company may not issue new Notes to replace Notes that it has paid or
that have been delivered to the Trustee for cancellation, or that any Holder
has converted pursuant to Article 4 hereof.

Section 2.12. 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 and in accordance with the provisions
of the Collateral Agreements, if applicable, 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 5.01 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 ten (10) days prior to the related payment date
for such defaulted interest.  At least
fifteen (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.

 

 45

 

 

Section 2.13.                         CUSIP
Numbers.

The Company in issuing the
Notes may use one or more CUSIP numbers (if then generally in use), and, if so,
the Trustee shall use CUSIP numbers in notices of redemption or purchase or
exchange 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 or purchase or exchange and that reliance may be placed only on
the other identification numbers printed on the Notes, and any such redemption
or purchase 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 3.

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 must furnish to the Trustee, at least forty-five
(45) days but not more than sixty (60) days before a redemption date, an
Officer’s Certificate setting forth:

(1)          the clause of this Indenture
pursuant to which the redemption shall occur;

(2)          the redemption date;

(3)          the principal amount of
Notes to be redeemed; and

(4)          the redemption price.

Section 3.02.        Selection of
Notes to Be Redeemed or Purchased.

If the Company chooses to
redeem less than all of the Notes, selection of the Notes for redemption will
be made by the Trustee either:

(1)          in compliance with the
requirements of the principal national securities exchange, if any, on which
the Notes are listed; or

(2)          if the Notes are not then
listed on a national securities exchange, on a pro rata
basis or by such method as the Trustee may reasonably determine is fair and
appropriate.

In the event of partial
redemption or purchase by lot, the particular Notes to be redeemed or purchased
will be selected, unless otherwise provided herein, not less than thirty (30)
nor more than sixty (60) days prior to the redemption or purchase date by the
Trustee from the outstanding Notes not previously called for redemption or
purchase.

The Trustee will promptly
notify the Company in writing of the Notes selected for redemption or purchase
and, in the case of any Note selected for partial redemption or purchase, the
principal amount thereof to be redeemed or purchased.  Notes and portions of Notes selected

 46
 

 

will be in amounts of $l,000 or whole multiples of
$l,000; except that if all of the Notes of a Holder are to be redeemed or
purchased, the entire outstanding amount of Notes held by such Holder, even if
not a multiple of $1,000, shall be redeemed or purchased.  Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption or purchase
also apply to portions of Notes called for redemption or purchase.

Section 3.03.        Notice of
Redemption.

At least thirty (30) days
but not more than sixty (60) days before a redemption date, the Company will
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, except that
redemption notices may be mailed more than sixty (60) days prior to a
redemption date if the notice is issued in connection with a defeasance of the
Notes or a satisfaction and discharge of this Indenture pursuant to Articles 9
or 13 hereof.

The notice will identify the
Notes to be redeemed and will state:

(1)          the redemption date;

(2)          the redemption price;

(3)          the Conversion Price;

(4)          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 will be
issued upon cancellation of the original Note (or appropriate adjustments to
the amount and beneficial interests in the Global Note will be made);

(5)          the name and address of the
Paying Agent and the Conversion Agent;

(6)          that Holders who wish to
convert Notes must comply with the procedures in Article 4 of this Indenture;

(7)          that Notes called for
redemption must be surrendered to the Paying Agent to collect the redemption
price;

(8)          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;

(9)          the paragraph of the Notes
and/or Section of this Indenture pursuant to which the Notes called for
redemption are being redeemed; and

(10)          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 will give the notice of redemption in the Company’s name and at its
expense; provided,  however,
that the Company has delivered to the

 47
 

 

Trustee, at least forty-five (45) days prior to the
redemption date, an Officer’s Certificate requesting that the Trustee give such
notice 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
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 or Purchase Price.

One Business Day prior to
the redemption or purchase date, the Company will deposit with the Trustee or
with the Paying Agent money sufficient to pay the redemption or purchase price
of and accrued interest and Liquidated Damages, if any, on all Notes to be
redeemed or purchased on that date.  The
Trustee or the Paying Agent will 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 or purchase price of, and accrued
interest and Liquidated Damages, if any, on, all Notes to be redeemed or
purchased.

If the Company complies with
the provisions of the preceding paragraph, on and after the redemption or
purchase date, interest will cease to accrue on the Notes or the portions of
Notes called for redemption or purchase. 
If a Note is redeemed or purchased on or after an interest record date
but on or prior to the related interest payment date, then any accrued and
unpaid interest, including Liquidated Damages, if any, shall be paid to the
Person in whose name such Note was registered at the close of business on such
record date.  If any Note called for
redemption or purchase is not so paid upon surrender for redemption or purchase
because of the failure of the Company to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption or purchase
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 5.01 hereof.

Section 3.06.        Notes
Redeemed or Purchased in Part.

Upon surrender of a Note
that is redeemed or purchased in part, the Company will issue and, upon receipt
of an Authentication Order, the Trustee will authenticate for the Holder at the
expense of the Company a new Note equal in principal amount to the unredeemed
or unpurchased portion of the Note surrendered (or appropriate adjustment to
the amount and beneficial interest in the Global Note will be made).

Section 3.07.        Optional
Redemption.

a)             The
Notes will not be redeemable at the Company’s option prior to November 15,
2010.

b)            The
Company may redeem the Notes, at its option, in whole or in part at any time on
or after November 15, 2010, upon not less than thirty (30) nor more than sixty
(60) days’ notice, at 100% of the Aggregate Accreted Principal Amount, together
with accrued and unpaid

 48
 

 

interest, including Liquidated Damages, if any,
thereon, up to the redemption date; provided that
for twenty (20) of the preceding thirty (30) consecutive Trading Days, the
Common Stock has had (i) a Closing Sale Price at least equal to 1.50 times the
then effective Conversion Price and (ii) a daily trading volume for each such
Trading Day, when multiplied by the Closing Sale Price for such Trading Day,
which equals at least $8.0 million.  For
so long as at least $215.0 aggregate principal amount of the Notes remains
outstanding, the Company may not redeem more than 50% of the then outstanding
principal amount of Notes in any ninety (90)-day period.

c)             Any
redemption pursuant to this Section 3.07 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

Section 3.08.        Repurchase at
Option of Holder Upon a Designated Event.

(a)             If there shall occur a Designated
Event at any time prior to the maturity of the Notes, then each Holder shall
have the right, at such Holder’s option, to require the Company to repurchase
all of such Holder’s Notes, or any portion thereof that is a multiple of $1,000
principal amount, for cash on a date designated by the Company (the “Designated Event Repurchase Date”) that is not less than
twenty (20) nor more than thirty (30) days after the date of the Designated
Event Notice (as defined in Section 3.08(b)) for such Designated Event at a
repurchase price equal to 101% of the Aggregate Accreted Principal Amount of
the Notes to be repurchased, plus accrued and unpaid interest, and Liquidated
Damages, if any, up to, but excluding, the Designated Event Repurchase
Date.  Notwithstanding the foregoing, if
a Designated Event Repurchase Date falls after an interest payment record date
but on or prior to the corresponding interest payment date, the Company will
pay the full amount of accrued and unpaid interest, and Liquidated Damages, if
any, on such interest payment date to the Holder of record at the close of
business on the corresponding record date. 
Notwithstanding the foregoing, no Notes may be surrendered for
repurchase pursuant to this Section 3.08 in connection with a merger,
consolidation or other transaction effected solely for the purpose of changing
the Company’s jurisdiction of incorporation to any other state within the
United States.

(b)             Before the fifteenth (15th) day after
the occurrence of a Designated Event, the Company, or at its written request
(which must be received by the Trustee at least five (5) Business Days prior to
the date the Trustee is requested to give notice as described below, unless the
Trustee shall agree in writing to a shorter period), the Trustee, in the name
of and at the expense of the Company, shall mail or cause to be mailed to all
Holders of record on the date of the Designated Event a notice (the “Designated Event Notice”) of the occurrence of such Designated
Event and of the repurchase right at the option of the Holders arising as a
result thereof.  If the Company shall
give such notice, the Company shall also deliver a copy of the Designated Event
Notice to the Trustee at such time as it is mailed to Holders.

Each Designated Event Notice
shall specify the circumstances constituting the Designated Event, the
Designated Event Repurchase Date, the price at which the Company shall be
obligated to repurchase Notes, that the Holder must exercise the repurchase
right on or prior to the close of business on the Designated Event Repurchase
Date (the “Designated Event Expiration Time”), that
the Holder shall have the right to withdraw any Notes surrendered prior to the
Designated Event Expiration Time, if the Notes are then convertible, that Notes
as to which an Option of Holder to Elect Repurchase (as hereinafter defined)
has been given may be

 49
 

 

converted only if the Option of Holder to Elect
Repurchase is withdrawn in accordance with the terms of this Indenture, a
description of the procedure that a Holder must follow to exercise such
repurchase right and to withdraw any surrendered Notes, the place or places
where the Holder is to surrender such Holder’s Notes, the amount of interest
and Liquidated Damages, if any, accrued and unpaid on each Note to the
Designated Event Repurchase Date and the CUSIP number or numbers of the Notes
(if then generally in use).

No failure of the Company to
give the foregoing notices and no defect therein shall limit the Holders’ repurchase
rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 3.08.

(c)             Repurchases of Notes under this
Section 3.08 shall be made, at the option of the Holder thereof, upon:

(i)            delivery to the Trustee at the Corporate Trust Office of
the Trustee (or other Paying Agent appointed by the Company) by a Holder of a
duly completed and executed notice (the “Option of Holder to Elect
Repurchase”) in the form set forth on the reverse of the Note prior
to the Designated Event Expiration Time; and

(ii)           book-entry transfer or delivery of the Notes, together
with necessary endorsements, to the Trustee (or other Paying Agent appointed by
the Company) at any time simultaneous to or after delivery of the Option of
Holder to Elect Repurchase (together with all necessary endorsements) at the
Corporate Trust Office of the Trustee (or other Paying Agent appointed by the
Company) in The City of New York, Borough of Manhattan, such delivery being a
condition to receipt by the Holder of the repurchase price therefore; provided
that such repurchase price shall be so paid pursuant to this Section 3.08
only if the Note so delivered to the Trustee (or other Paying Agent appointed
by the Company) shall conform in all respects to the description thereof in the
related Option of Holder to Elect Repurchase.

The Company shall purchase
from the Holder thereof, pursuant to this Section 3.08, a portion of a
Note, if the principal amount of such portion is $1,000 or a whole multiple of
$1,000.  Provisions of this Indenture
that apply to the purchase of all of a Note also apply to the purchase of such
portion of such Note.

Upon presentation of any
Note repurchased in part only, the Company shall execute and, upon the Company’s
written direction to the Trustee, the Trustee shall authenticate and make
available for delivery to the Holder thereof, at the expense of the Company, a
new Note or Notes, of authorized denominations, in aggregate principal amount
equal to the portion of the Notes presented that was not repurchased.

Notwithstanding anything
herein to the contrary, any Holder delivering to the Trustee (or other Paying
Agent appointed by the Company) the Option of Holder to Elect Repurchase
contemplated by this Section 3.08 shall have the right to withdraw such
Option of Holder to Elect Repurchase at any time prior to the Designated Event
Expiration Time by delivery of a written notice of withdrawal to the Trustee
(or other Paying Agent appointed by the Company) in accordance with Section 3.08(d)
below.  Notes in respect of which an
Option of Holder to Elect

 50
 

 

Repurchase has been given by the Holder thereof may
not be converted pursuant to Article 4 hereof on or after the date of the
delivery of such Option of Holder to Elect Repurchase unless such Option of
Holder to Elect Repurchase has first been validly withdrawn.

The Trustee (or other Paying
Agent appointed by the Company) shall promptly notify the Company of the
receipt by it of any Option of Holder to Elect Repurchase or written notice of
withdrawal thereof.

For a Note, other than a
Global Note, to be so repurchased at the option of the Holder, the Company must
receive at the office or agency of the Company maintained for that purpose or,
at the option of such Holder, the Corporate Trust Office in The City of New
York, Borough of Manhattan, such Note with the form entitled “Option of Holder
to Elect Repurchase” on the reverse thereof duly completed, together with such
Notes duly endorsed for transfer, on or before the Designated Event Expiration
Time.  All questions as to the validity,
eligibility (including time of receipt) and acceptance of any Note for
repurchase shall be determined by the Company, whose determination shall be
final and binding absent manifest error.

(d)             An Option of Holder to Elect
Repurchase may be withdrawn by means of a written notice of withdrawal
delivered to the Corporate Trust Office of the Trustee (or other Paying Agent
appointed by the Company) in accordance with the Option of Holder to Elect
Repurchase at any time prior to the Designated Event Expiration Time,
specifying:

(i)            the principal amount of the Note with respect to which
such notice of withdrawal is being submitted;

(ii)           the certificate number, if any of the Note in respect of
which such notice of withdrawal is being submitted, or the appropriate
Depositary information if the Note in respect of which notice of withdrawal is
being submitted is represented by a Global Note; and

(iii)          the principal amount, if any, of such Note that remains
subject to the original Option of Holder to Elect Repurchase.

(e)             The Company shall deposit with the
Trustee or with one or more Paying Agents (or, if the Company is acting as its
own Paying Agent, set aside, segregate and hold in trust as provided in Section
2.04 hereof) an amount of money sufficient to repurchase on the Business Day
immediately preceding the Designated Event Repurchase Date all the Notes to be
repurchased on such date at the appropriate repurchase price, together with
accrued and unpaid interest and Liquidated Damages, if any, up to, but
excluding, the Designated Event Repurchase Date; provided that
if such payment is made on the Designated Event Repurchase Date it must be
received by the Trustee or Paying Agent, as the case may be, by 10:00 a.m. New
York City time, on such date.  Payment
for Notes surrendered for repurchase (and not withdrawn) prior to the
Designated Event Expiration Time will be made promptly (but in no event more
than five (5) Business Days) following the later of (x) the Business Day
immediately following the Designated Event Repurchase Date, and (y) the time of
book-entry transfer or delivery of the Note surrendered for repurchase, by
(i) mailing checks for the amount payable to the Holders of such Notes
entitled thereto as they shall appear in the register of Holders or
(ii) on any Global

 51
 

 

Note by wire transfer of immediately available funds
to the account of the Depositary or its nominee.

If on the Business Day
immediately following the Designated Event Repurchase Date the Trustee or other
Paying Agent appointed by the Company, or the Company if the Company is acting
as the Paying Agent, holds money sufficient to repurchase all of the Notes or
portions thereof that are to be purchased as of the Designated Event Repurchase
Date, then, on and after such date, (i) the Notes will cease to be outstanding,
(ii) interest and Liquidated Damages, if any, on the Notes will cease to
accrue, and (iii) all other rights of the Holders of such Notes will terminate,
other than the right to receive the repurchase price upon delivery of the
Notes, in each instance whether or not book-entry transfer of the Notes has
been made or the Notes have been delivered to the Trustee or Paying Agent.

(f)              The Company will comply with the
requirements of Rule 13e-4, Rule 14e-1 and any other tender offer rules under
the Exchange Act to the extent applicable and file a Schedule TO or any other
required schedule or form under the Exchange Act to the extent then applicable
in connection with the repurchase rights of the Holders in the event of a
Designated Event.  To the extent that the
provisions of any securities laws or regulations conflict with the provisions
of this Indenture governing an offer to purchase upon a Designated Event, the
Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under the provisions of
this Indenture by virtue of such compliance.

(g)             Notwithstanding this Section 3.08, no
Notes may be repurchased by the Company at the option of the Holders upon a
Designated Event if the principal amount of the Notes has been accelerated, and
such acceleration has not been rescinded, on or prior to such date.

Section 3.09.        Offer to
Purchase by Application of Excess Proceeds.

In the event that, pursuant
to Section 5.10 hereof, the Company shall be required to commence an offer
to all Holders and to all holders of other senior secured Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets to purchase the maximum amount of Notes
and such other pari passu Indebtedness that may
be purchased out of the Excess Proceeds (an “Asset Sale
Offer”), it shall follow the procedures specified below.

The Asset Sale Offer shall
remain open for a period of twenty (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”).  As promptly as practicable and no later than
three (3) Business Days after the termination of the Offer Period (the “Purchase Date”), the Company shall purchase the Aggregate
Accreted Principal Amount of Notes required to be purchased pursuant to
Section 5.10 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; provided, however, that such payments to Holders will include the
Holder’s Pro Rata Amount of the amounts in the Escrow Account with respect to
such Holder’s Notes that are purchased, with the balance of the purchase price
payable in cash.

 52
 

 

 

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 and Liquidated Damages 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 to 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 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:

(1)          that the Asset Sale Offer is
being made pursuant to this Section 3.09 and Section 5.10 hereof and
the length of time the Asset Sale Offer shall remain open;

(2)          the Offer Amount, the
purchase price and the Purchase Date;

(3)          that any Note not tendered
or accepted for payment shall continue to accrue interest;

(4)          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;

(5)          that Holders electing to
have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes
purchased in integral multiples of $1,000 only;

(6)          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
Repurchase” 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 no later than the
expiration of the Offer Period prior to the Purchase Date;

(7)          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;

(8)          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

 53
 

 

 

(9)          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 Officer’s 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.  If
the aggregate amount of Notes and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other pari passu Indebtedness to be purchased on a pro rata basis. 
The Company, the Depositary or the Paying Agent, as the case may be,
shall promptly (but in any case not later than three (3) Business 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, at the expense of the Company, 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.

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 those laws and regulations are
applicable in connection with each repurchase of Notes pursuant to an Asset
Sale Offer.  To the extent that the
provisions of any securities laws or regulations conflict with the Asset Sale
Offer provisions of this Indenture, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under the Asset Sale Offer provisions of this Indenture by virtue
of such compliance.

Section 3.10.        Redemption at
Maturity.

Unless previously redeemed
(pursuant to this Article 3) or converted (pursuant to Article 4), the Company
will redeem the Notes at 125.411% of their principal amount on November 15,
2012.

ARTICLE 4.

CONVERSION

Section 4.01.                         Conversion
Right and Conversion Rate.

(a)             Subject to and upon compliance with
the provisions of this Article 4, at the option of the Holder thereof, any
portion of the principal amount of any Note that is an integral multiple of
$1,000 may be converted into fully paid and non-assessable shares of Common
Stock at the Conversion Rate, determined as hereinafter provided, in effect at
the time of conversion.  The Holders may
surrender Notes for conversion at the applicable Conversion Rate at any time

 54
 

 

after ninety (90) days from the Original Issue Date
until the close of business on the Business Day immediately preceding the final
maturity date of the Notes.

(b)             All calculations under this Article 4
shall be made to the nearest cent or to the nearest one-hundredth of a share,
as the case may be.

Section 4.02.                         Conversion Consideration.

(a)             Upon surrendering any Notes for
conversion, the Holder of such Notes shall receive, in respect of each $1,000
principal amount of Notes: shares of Common Stock at an initial conversion rate
of 120.627 shares per $1,000 principal amount of Notes (the “Conversion Rate”), which is based upon an initial
Conversion Price of approximately $8.29 per share.  If a Holder converts Notes on any date when
the Company is required to pay Liquidated Damages, the Conversion Rate will be
multiplied by 103%.  The Conversion Rate
(and Conversion Price) are subject to adjustment as described below.

(b)             If a Holder receives shares of Common
Stock upon conversion of Notes, such Holder will also receive the associated
rights under any stockholder rights plan that the Company may adopt, whether or
not the rights have separated from the Common Stock at the time of conversion
unless, prior to conversion, the rights have expired, terminated or been
exchanged.

Section 4.03.                         Exercise
of Conversion Right.

(a)             In order to exercise the conversion
right:

(i)            the Holder of any Definitive Note to be converted must
(1) complete and manually sign a notice of conversion substantially in the form
set forth on the reverse of the Note (the “Conversion Notice”);
(2) deliver the Conversion Notice and the Definitive Note (and the Certificate
of Conversion & Restricted Transfer (defined below), if applicable) to the
Conversion Agent and the Company; and (3) if required, furnish appropriate
endorsements and transfer documents; or

(ii)           the holder of beneficial interests in any Global Note to
be converted must comply with the Applicable Procedures to cause the beneficial
interests in such Global Note to be delivered to the Conversion Agent,

and,
in either case, the Holder of a Definitive Note or holder of beneficial
interests in a Global Note will, if required, pay all transfer or similar taxes
and, if required pursuant to Section 4.03(b) hereof, pay funds equal to the
interest payable on the next interest payment date.

The date on which a Holder of a Definitive Note or holder of a
beneficial interest in a Global Note completes the requirements of this Section
4.03(a) shall be deemed to be the date of conversion (the “Conversion
Date”) for purposes of this Article 4.  On and after the Conversion Date, the
conversion by such Holder or holder, as set forth in the Conversion Notice,
shall become irrevocable.

 

 55

 

 

(b)             Notes shall be deemed to have been
converted immediately prior to the close of business on the Conversion Date,
and at such time the rights of the Holders of such Notes as Holders will cease,
and the Person or Persons entitled to receive the shares of Common Stock
payable and issuable upon conversion will be treated for all purposes as the
payee or payees of such payment and the record holder or holders of such Common
Stock at such time.  Following any
Conversion Date, the Company shall satisfy its obligations with respect to such
conversion by either:

(i)            delivering to the Trustee, for delivery to the Holder (or
such other Person as may be named in the relevant Conversion Notice), the cash
payment, together with certificates representing the number of shares of Common
Stock, payable and issuable upon the conversion; or

(ii)           delivering to such Holder (or such other Person as may be
named in the relevant Conversion Notice) the cash payment, together with such
number of shares of Common Stock payable and issuable upon such conversion in
accordance with the Applicable Procedures,

in each case, together with
payment in lieu of fractional shares, if any, as provided in Section 4.04 (such
cash payment and delivery of shares, if any, the “Settlement”);
provided that shares of Common Stock
only will be deliverable in certificated form if (1) the Holder or holder that
is exercising such conversion has specifically requested in writing that
delivery be in certificates or (2) the Company determines that delivery is
required in certificated shares either because (A) delivery to the Holder (or
such other Person named in the relevant Conversion Notice) is not practicable
in accordance with the Applicable Procedures or (B) in the opinion of legal
counsel, delivery is required in certificated form in order to comply with the
requirements of applicable securities laws. 
Settlement shall occur promptly.

(c)             In the case of any Note which is
converted in part only, upon such conversion the Company shall execute and the
Trustee shall authenticate and deliver to the Holder thereof, at the expense of
the Company, a new Note or Notes of authorized denominations in an aggregate
principal amount equal to the unconverted portion of the principal amount of
such Note.  A Note may be converted in
part, but only if the principal amount of such Note to be converted is any
integral multiple of U.S. $1,000 and the principal amount of such security
to remain outstanding after such conversion is equal to U.S. $1,000 or any
integral multiple of $1,000 in excess thereof.

(d)             If shares of Common Stock to be
issued upon conversion of a Restricted Note, or Notes to be issued upon
conversion of a Restricted Note in part only, are to be registered in a name
other than that of the Beneficial Owner of such Restricted Note, then such
Holder must deliver to the Conversion Agent a certificate of conversion and
restricted transfer in the form of Exhibit D hereto (the “Certificate
of Conversion & Restricted Transfer”), dated the date of
surrender of such Restricted Note and signed by such Beneficial Owner, as to
compliance with the restrictions on transfer applicable to such Restricted
Note.  The Certificate of Conversion
& Restricted Transfer shall be required in addition to the Conversion
Notice.  None of the Trustee, any
Conversion Agent, Registrar or transfer agent shall be required to register
shares of Common Stock issued upon conversion or any unconverted Notes in the
name of any Person other than that of the Holder or

 56
 

 

Beneficial Owner of the converted Restricted Note
unless such Holder or Beneficial Owner has delivered a properly completed
Certificate of Conversion & Restricted Transfer.

All shares of Common Stock
delivered upon conversion of Restricted Notes shall bear restrictive legends
substantially in the form of the legends required to be set forth on the
Restricted Notes pursuant to Section 2.06(f) hereof and shall be subject to the
restrictions on transfer provided in such legends.  Neither the Trustee nor any Conversion Agent
shall have any responsibility for the inclusion or content of any such
restrictive legends on such Common Stock.

Section 4.04.                             Fractions
of Shares.

No fractional shares of
Common Stock shall be issued upon conversion of any Note or Notes.  If more than one Note shall be surrendered
for conversion at one time by the same Holder, the number of full shares which
shall be issuable upon conversion thereof shall be computed on the basis of the
aggregate principal amount of the Notes (or specified portions thereof) so
surrendered.  Instead of any fractional
share of Common Stock that would otherwise be issuable upon conversion of any
Note or Notes (or specified portions thereof), the Company shall calculate and
pay a cash adjustment for the fractional amount (calculated to the nearest
1/100th of a share) based upon the applicable Conversion Price.  The amount of the cash adjustment payable in
lieu of issuing such fractional share shall be equal to such fractional share
otherwise issuable multiplied by the Closing Sale Price on the applicable
Trading Day.

Section 4.05.                             Adjustment
of Conversion Rate.

(a)             Adjustment.  The Conversion Rate will be subject to
adjustment, without duplication, from time to time upon the occurrence of any
of the following events:

(i)            Stock Dividends in Common Stock.  In case the Company shall pay or make a
dividend or other distribution on shares of Common Stock payable exclusively in
shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution shall be
increased by dividing such Conversion Rate by a fraction of which the numerator
shall be the number of shares of Common Stock outstanding at the close of business
on the date fixed for such determination and the denominator shall be the sum
of such number of shares and the total number of shares  constituting such dividend or other
distribution, such increase to become effective immediately after the opening
of business on the day following the date fixed for such determination.  If, after any such date fixed for
determination, any dividend or distribution is not in fact paid, the Conversion
Rate shall be immediately readjusted, effective as of the date the Company’s
Board of Directors determines not to pay such dividend or distribution, to the
Conversion Rate that would have been in effect if such determination date had
not been fixed.  For the purposes of this
clause (i), the number of shares of Common Stock at any time outstanding shall
not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares
of Common Stock.  The Company will not
pay any

 57
 

 

dividend or make any distribution on shares of Common
Stock held in the treasury of the Company.

(ii)           Issuance of Rights or Warrants.  In case the Company shall issue rights,
warrants or options to all or substantially all holders of Common Stock then
entitled for a period expiring within forty-five (45) days from the date of
issuance of the rights, warrants or options to subscribe for or purchase shares
of Common Stock at a price per share less than the Current Market Price per
share of Common Stock on the date fixed for the determination of stockholders
entitled to receive such rights, warrants or options (other than any rights,
warrants or options that (x) by their terms will also be issued to any Holder
upon conversion of a Note into shares of Common Stock without any action
required by the Company or any other Person or (y) are distributed to
shareholders of the Company upon a merger or consolidation in compliance with
Section 4.09 hereof), then the
Conversion Rate in effect at the opening of business on the day following the
date fixed for such determination shall be increased by dividing such
Conversion Rate by a fraction:

(1)          the numerator of which shall be the number of
shares of Common Stock outstanding at the close of business on the date fixed
for such determination plus the number of shares of Common Stock that the
aggregate of the offering price of the total number of shares of Common Stock
so offered for subscription or purchase would purchase at such Current Market
Price; and

(2)          the denominator of which shall be the number
of shares of Common Stock outstanding at the close of business on the date
fixed for such determination plus the number of shares of Common Stock so
offered for subscription or purchase,

such increase to become
effective immediately after the opening of business on the day following the
date fixed for such determination.  If,
after any such date fixed for determination, any such rights, warrants or
options are not in fact issued, or are not exercised prior to the expiration
thereof, the Conversion Rate shall be immediately readjusted, effective as of
the date such rights, warrants or options expire, or the date the Company’s
Board of Directors determines not to issue such rights, warrants or options, to
the Conversion Rate that would have been in effect if the unexercised rights,
warrants or options had never been granted or such determination date had not
been fixed, as the case may be and as a result no additional shares are
delivered or issued pursuant to such rights, warrants or options. For the purposes
of this clause (ii), the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but
shall include shares issuable in respect of scrip certificates issued in lieu
of fractions of shares of Common Stock. 
The Company will not issue any rights, warrants or options in respect of
shares of Common Stock held in the treasury of the Company.

(iii)          Stock Splits and Combinations.  (1) In case outstanding shares of Common
Stock shall be subdivided or split into a greater number of shares of Common
Stock, then the Conversion Rate in effect at the opening of business on the day
following the day upon which such subdivision or split becomes effective shall
be proportionately increased; (2) in case outstanding shares of Common
Stock shall be combined or reclassified into a smaller number of shares of
Common Stock, then the Conversion Rate

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in effect at the opening of
business on the day following the day upon which such combination or
reclassification becomes effective shall be proportionately reduced and
(3) in case the Company issues any shares of its Capital Stock in a
reclassification of the outstanding shares of Common Stock, then the Conversion
Rate in effect at the opening of business on the day following the day upon
which such reclassification becomes effective shall be proportionately applied
to the new class of shares of Capital Stock of the Company into which the
Common Stock was reclassified; in each case, such increase, reduction or reclassification,
as the case may be, to become effective immediately after the opening of
business on the Business Day following the day upon which such subdivision,
combination or reclassification becomes effective.

(iv)          Distribution of Indebtedness, Securities Or Assets.  In case the Company shall, by dividend or
otherwise, distribute to all or substantially all holders of Common Stock
evidences of its indebtedness, property or assets, including rights, warrants,
options or other securities (provided, that
if these rights are only exercisable upon the occurrence of specified
triggering events, then the Conversion Rate will not be adjusted until the
triggering events occur), but excluding (1) any dividends or distributions
referred to in clause (i) of this Section 4.05(a), (2) any rights,
warrants or options referred to in clause (ii) of this Section
4.05(a) and (3) any dividends or distributions paid exclusively in cash
described in clause (vi) of this Section 4.05(a) (the “Distributed
Assets”), then the Conversion Rate shall be adjusted so that the
same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the close of business on the record date fixed for
the determination of stockholders entitled to receive such distribution by a
fraction:

(1)          the numerator of which shall be the Current
Market Price per share of Common Stock; and

(2)          the denominator of which shall be the Current
Market Price per share of Common Stock less the Fair Market Value, as
determined by the Company’s Board of Directors, whose determination in good
faith shall be conclusive and described in a Board Resolution filed with the
Trustee, of the portion of those Distributed Assets applicable to one share of
Common Stock, such adjustment to become effective immediately after the record
date fixed for the determination of stockholders entitled to receive such
distribution.

If after any such date fixed
for determination, any such distribution is not in fact made, the Conversion
Rate shall be immediately readjusted, effective as of the date the Company’s
Board of Directors determines not to make such distribution, to the Conversion
Rate that would have been in effect if such determination date had not been
fixed.

Notwithstanding the
foregoing, in cases where (A) the Fair Market Value per share of the
Distributed Assets equals or exceeds the Current Market Price of the Common
Stock, or (B) the Current Market Price of the Common Stock exceeds the
Fair Market Value per share of the Distributed Assets by less than $1.00, in
lieu of the adjustment set forth in this Section 4.05(a)(iv), Holders will
have the right to receive

 59
 

 

upon conversion, in addition to shares of Common
Stock, if any, the amount and type of Distributed Assets such Holders would
have received upon conversion of such Holders’ Notes if they had been converted
immediately prior to the record date.

(v)           Distribution of Capital Stock of Subsidiaries.  In case the Company shall, by dividend or
otherwise, distribute to all or substantially all holders of Common Stock the
Capital Stock of, or similar Equity Interests in, a Subsidiary or other
business unit of the Company, but excluding any dividends or distributions
referred to in clause (iv) of this Section 4.05(a) (the “Subsidiary Interests”), then the Conversion Rate shall be
adjusted so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to the close of business on the
record date fixed for the determination of stockholders entitled to receive such
distribution by a fraction:

(1)          the numerator of which shall be the Current
Market Price per share of Common Stock for the ten (10) Trading Days commencing
on and including the fifth (5th) Trading Day after the date on which the “ex-dividend
trading” commences for such distribution; and

(2)          the denominator of which shall be the Current
Market Price per share of Common Stock for the ten (10) Trading Days commencing
on and including the fifth (5th) Trading Day after the date on which the “ex-dividend
trading” commences for such distribution less the Current Market Price of the
Subsidiary Interests distributed per share of Common Stock in such dividend or
distribution for the ten (10) Trading Days commencing on and including the
fifth (5th) Trading Day after the date on which the “ex-dividend trading”
commences for such distribution, such adjustment to become effective
immediately after the record date fixed for the determination of stockholders
entitled to receive such distribution.

If after any such date fixed
for determination, any such distribution is not in fact made, the Conversion
Rate shall be immediately readjusted, effective as of the date the Company’s
Board of Directors determines not to make such distribution, to the Conversion
Rate that would have been in effect if such determination date had not been
fixed.

Notwithstanding the
foregoing, in cases where (A) the Current Market Price applicable to the
Capital Stock, or Equity Interests, of such Subsidiary distributed to each
share of Common Stock in such dividend or distribution equals or exceeds the
Current Market Price of the Common Stock, or (B) the Current Market Price
of the Common Stock exceeds the Current Market Price applicable to the Capital
Stock, or Equity Interests, of such Subsidiary distributed to each share of
Common Stock in such dividend or distribution by less than $1.00, in lieu of
the adjustment set forth in this Section 4.05(a)(v), Holders will have the
right to receive upon conversion, in addition to shares of Common Stock, if
any, the Capital Stock, or Equity Interests, of such Subsidiary distributed to
each share of Common Stock in such dividend or distribution such Holders would
have received upon conversion of such Holders’ Notes if they had been converted
immediately prior to the record date.

 60
 

 

 

(vi)          Cash Distributions. 
In case the Company shall, by dividend or otherwise, distribute to all
or substantially all holders of outstanding shares of Common Stock
distributions consisting exclusively of cash (excluding any dividend or distribution
in connection with the Company’s liquidation, dissolution or winding up) then
the Conversion Rate shall be adjusted so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to
the close of business on the date fix for determination of the stockholders
entitled to receive such distribution by a fraction:

(1)          the numerator of which shall be equal to the
Current Market Price per share of Common Stock on the date fixed for such
determination; and

(2)          the denominator of which shall be equal to
the Current Market Price per share of Common Stock on such date fixed for
determination less the amount per share of such distribution, such adjustment
to become effective immediately after the record date fixed for the
determination of stockholders entitled to receive such distribution.

Notwithstanding the
foregoing, in cases where (A) the per share amount of such distribution equals
or exceeds the Current Market Price of the Common Stock, or (B) the Current Market
Price of the Common Stock exceeds the per share amount of such distribution by
less than $1.00, in lieu of the adjustment set forth in this Section
4.05(a)(vi), Holders will have the right to receive upon conversion, in
addition to shares of Common Stock, if any, such distribution such Holders
would have received upon conversion of such Holders’ Notes if they had been
converted immediately prior to the record date.

(vii)         Tender or Exchange Offers.  In case the Company or any Subsidiary shall
make a payment in respect of a tender offer or exchange offer for any portion
of the Common Stock, in which event, to the extent the cash and value of any
other consideration included in the payment per share of the Common Stock
exceeds the Closing Sale Price of the Common Stock on the Trading Day next
succeeding the last date on which tenders or exchanges may be made pursuant to
such tender offer or exchange offer (the “Expiration Date”),
as the case may be, then the Conversion Rate shall be adjusted so that the same
shall equal the rate determined by multiplying the Conversion Rate immediately
prior to close of business on the Expiration Date by a fraction:

(1)          the numerator of which shall be equal to the
sum of (A) the Fair Market Value, as determined by the Board of Directors of
the Company, of the aggregate consideration payable for all shares of Common
Stock purchased by the Company in the tender or exchange offer and (B) the
product of (x) the number of shares of Common Stock outstanding less any such
purchased shares and (y) the Closing Sale Price of the Common Stock on the
Trading Day next succeeding the Expiration Date; and

 61
 

 

 

(2)          the denominator of which shall be equal to
the product of (A) the number of shares of Common Stock outstanding, including
any such purchased shares and (B) the Closing Sale Price of the Common Stock on
the Trading Day next succeeding the Expiration Date, such adjustment to become
effective immediately after the opening of business on the second (2nd) Trading
Day next succeeding the Expiration Date.

(viii)        Certain Offerings.  In the event the Company issues or sells any
Common Stock or any securities convertible into or exchangeable or exercisable
for shares of Common Stock (other than any dividend or distribution referred to
in clause (i) of this Section 4.05(a) or any rights, warrants or options
referred to in clause (ii) of this Section 4.05(a)) in one or more transactions
during the first two years following the Original Issue Date at a weighted
average effective price per share (after taking into account the price per
share at which all convertible, exchangeable or exercisable securities could be
converted, exchanged or exercised for) below the then-effective Conversion
Price, which issuances or sales together amount to aggregate gross proceeds of
at least $25.0 million, the Conversion Price of the Notes will be reduced (but
not increased) to the weighted average effective price per share at which such
Common Stock or other securities were sold, and the Conversion Rate shall be
adjusted so that the same shall equal the rate determined by dividing $1,000 by
the new Conversion Price as a result of such issuance or sale.  In addition, in the event the Company does
not issue or sell Common Stock (including Common Stock issuable upon the conversion,
exchange or exercise of Capital Stock (other than Disqualified Stock), to the
extent such Capital Stock is actually converted, exchanged or exercised) for
aggregate gross proceeds of at least $50.0 million in one or more transactions
during the first two years following the Original Issue Date, the Conversion
Price will be reduced (but not increased) to a price that is equal to the
volume weighted average Closing Sale Prices for the twenty (20) consecutive
Trading Days ending on the date that is two years after the Original Issue
Date, and the Conversion Rate shall be adjusted so that the same shall equal
the rate determined by dividing $1,000 by the new Conversion Price as a result
of such adjustment; provided, that the Conversion Price and Conversion Rate
shall not be adjusted beyond an amount that would result in the Conversion
Price being adjusted greater than 25% below the Conversion Price on the
Original Issue Date.

(b)             No Adjustment.  No adjustment in the Conversion Rate shall be
required:

(i)            upon the issuance of any shares of Common Stock pursuant
to any present or future plan providing for the reinvestment of dividends or
interest payable on the Company’s securities and the investment of additional
optional amounts in shares of Common Stock under any plan;

(ii)           upon the issuance of any shares of Common Stock or options
or rights to purchase such shares pursuant to any present or future employee,
director or consultant benefit plan or program of, or assumed by, the Company
or any of its Subsidiaries;

 

 62

 

 

(iii)          upon the issuance of any shares of Common Stock pursuant to
any option, warrant, right or exercisable, exchangeable or convertible security
not described in clause (ii) of this Section 4.05(b) and outstanding as of
the Original Issue Date;

(iv)          in connection with a merger, consolidation or other
transaction effected solely for the purpose of changing the Company’s
jurisdiction of incorporation to any other state within the United States;

(v)           for a change in the par value of the Common Stock; or

(vi)          for accrued and unpaid interest, if any.

(c)             Increase in Conversion
Rate due to Taxes.  Subject to
the Nasdaq Marketplace rules, the Company may make such increases in the
Conversion Rate, for the remaining term of the Notes or any shorter term, in
addition to those required by clause (a) of this Section 4.05, as the Board of
Directors of the Company considers advisable in order to avoid or diminish any
income tax to any holders of shares of Common Stock or rights to purchase
Common Stock resulting from any dividend or distribution of stock or issuance
of rights or warrants to purchase or subscribe for stock or from any event
treated as such for income tax purposes. 
The Company shall have the power to resolve any ambiguity or correct any
error in this subsection (c) and its actions in so doing shall, absent manifest
error, be final and conclusive.

(d)             Temporary Increase in
Conversion Rate.  Subject to
Nasdaq Marketplace rules, to the extent permitted by applicable law, the
Company from time to time may increase the Conversion Rate by any amount for
any period of time if the period is at least twenty (20) days, the increase is
irrevocable during such period, and the Company’s Board of Directors shall have
made a determination that such increase would be in the best interests of the
Company, which determination shall be conclusive.  Whenever the Conversion Rate is increased
pursuant to the preceding sentence, the Company shall give notice of the
increase to the Holders in the manner provided in Section 14.02, with a copy to
the Trustee and Conversion Agent, at least fifteen (15) days prior to the date
the increased Conversion Rate takes effect, and such notice shall state the
increased Conversion Rate and the period during which it will be in effect.

(e)             Designated Event
Make-Whole Amount.  In case of
a transaction described in clause (3) of the definition of Fundamental Change,
solely upon receipt by the Conversion Agent of any Holder’s Conversion Notice
on or subsequent to the effective date of such Fundamental Change and prior to
the forty-fifth (45th) day following such effective date (or, if earlier and to
the extent applicable, the close of business on the second Business Day
immediately preceding the Designated Event Repurchase Date (as specified in the
Designated Event Notice)), the Company shall pay such Holder a make-whole
premium within twenty (20) days after the consummation of such Designated
Event.  This make-whole premium will be
equal to the present value on the effective date of such Fundamental Change of
all required interest payments on the Notes as if paid in cash from the
effective date of such Fundamental Change through November 15, 2010 (including
any accrued but unpaid interest), computed using a discount rate equal to the
Reinvestment Yield (the “Designated Event
Make-Whole Amount”).  Holders
will only be eligible to receive the Designated Event Make-Whole Amount, unless
otherwise converting under the voluntary conversion provision described in this
Article 4 and eligible for

 63
 

 

the Conversion Make-Whole Amount described in Section
4.10, if the Closing Sale Price of the Common Stock immediately following the
announcement of such Fundamental Change is equal to or greater than the Closing
Sale Price of the Common Stock on the Original Issue Date and less than three
times the Closing Sale Price of the Common Stock on the Original Issue Date.

Such payment shall include the Holder’s Pro Rata Amount of the amounts
in the Escrow Account with respect to such Holder’s Notes that are
converted in the event of
conversion prior to November 15, 2008, with the balance of the payment payable,
at the Company’s option, in (1) cash, (2) shares of Common Stock at a 5.0%
discount to the Current Market Price; provided that
the issuance of shares of Common Stock in payment of this make-whole premium
will be subject to the Nasdaq Marketplace rules, which may require shareholder
approval in certain circumstances, (3) the consideration received triggering
such Designated Event, or (4) a combination of cash, shares and such
consideration.

Section 4.06. Notice
of Adjustments of Conversion Rate.

Whenever the Conversion Rate
is adjusted pursuant to Section 4.05 hereof:

(a)             the Company shall compute the
adjusted Conversion Rate in accordance with Section 4.05 hereof and shall
prepare an Officer’s Certificate setting forth (1) the adjusted Conversion
Rate, (2) the clause of Section 4.05 pursuant to which such adjustment has been
made, showing in reasonable detail the facts upon which such adjustment is
based, (3) the calculation of such adjustment and (4) the date as of which such
adjustment is effective, and such certificate shall promptly be filed with the
Trustee and with each Conversion Agent; and

(b)             upon each such adjustment, a notice
stating that the Conversion Rate has been adjusted and setting forth the
adjusted Conversion Rate shall be required, and as soon as practicable after it
is required, such notice shall be provided by the Company to all Holders in
accordance with Section 14.02.

Neither the Trustee nor any Conversion Agent shall be under any duty or
responsibility with respect to any such certificate or the information and
calculations contained therein, except to exhibit the same to any Holder
desiring inspection thereof at its office during normal business hours.

Section 4.07. Notice
of Certain Corporate Action.

In case the Company shall:

(a)             distribute to all or substantially
all holders of the Common Stock rights, warrants or options entitling them to
purchase, for a period expiring within forty-five (45) days of the declaration
date for such distribution, Common Stock at less than the Current Market Price
of the Common Stock; or

(b)             distribute to all or substantially
all holders of Common Stock evidences of the Company’s indebtedness, property
or assets, including rights, warrants, options or other securities, which
distribution has a per share value exceeding 10% of the Closing Sale Price of
the Common Stock on the day preceding the declaration date for such
distribution;

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then the Company shall deliver written notice to the
Conversion Agent, and shall deliver or cause its Agents to deliver, to all
Holders in accordance with Section 14.02 hereof, at least ten (10) days prior
to the ex-dividend date for such distribution, a notice of such distribution.

At any time that the Trustee
is not also the Conversion Agent, the Company shall forthwith deliver a copy of
any notice required pursuant to this Section 4.07 to the Trustee.

Section 4.08. Cancellation
of Converted Notes.

All Definitive Notes
delivered for conversion shall be delivered to the Trustee or its agent to be
canceled by or at the direction of the Trustee, which shall dispose of the same
as provided in Section 2.11 hereof.  Upon
conversions of beneficial interests in any Global Note, the Trustee or the
Custodian, at the direction of the Trustee, shall reduce the aggregate
principal amount of outstanding Notes represented by such Global Note to
reflect the conversion.

Section 4.09. Provision
in Case of Reclassification, Consolidation, Merger or Sale of Assets.

In the case of any consolidation or merger of the Company with or into
any other Person, any merger of another Person with or into the Company (other
than a merger that does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of Common Stock) or any
conveyance, sale or transfer of all or substantially all of the assets of the
Company, the Company or the Person formed by such consolidation or resulting
from such merger or which acquires such assets, as the case may be, shall
notify the Trustee and the Holders at least ten (10) days prior to the record
date for such transaction, or if there is no record date, at least ten (10)
Trading Days prior to the anticipated effective date for such transaction.  The Company, or such successor, purchasing or
transferee corporation, as the case may be, as a condition precedent to such
consolidation, merger, conveyance, sale or transfer, shall execute and deliver
to the Trustee a supplemental indenture providing that the Holder of each Note
then outstanding shall have the right thereafter to convert Notes only into the
kind and amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale or transfer by a holder of the number of
shares of Common Stock into which such Notes might have been converted
immediately prior to such consolidation, merger, conveyance, sale or
transfer.  Such supplemental indenture
shall provide for adjustments of the Conversion Rate and Conversion Price which
shall be as nearly equivalent as may be practicable to the adjustments of the
Conversion Rate and Conversion Price provided for in this Article 4.  If, in the case of any such consolidation,
merger, conveyance, sale or transfer, the securities, cash and other property
receivable thereupon by a holder of Common Stock include shares of stock or
other securities and property of a Person other than the successor, purchasing
or transferee corporation, as the case may be, in such consolidation, merger,
conveyance or sale, then such supplemental indenture shall also be executed by
such other Person and shall contain such additional provisions to protect the
interests of the Holders as the Company’s Board of Directors shall reasonably
consider necessary by reason of the foregoing.

In the event holders of
Common Stock have the opportunity to elect the form of consideration to be
received in such transaction, then from and after the effective date of such
transaction, the Notes shall be convertible into the consideration that a
majority of the holders of Common Stock who made such an election received in
such transaction.  The Company will

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notify holders and the Trustee as promptly as
practicable following the date such transaction is publicly announced but in no
event less than fifteen (15) days prior to the anticipated effective date of
such transaction.  The above provisions
of this Section 4.09 shall similarly apply to successive consolidations,
mergers, conveyances, sales or transfers. 
Notice of the execution of such a supplemental indenture shall be given
by the Company to the Holder of each Note as provided in Section 14.02
hereof promptly upon such execution.

Neither the Trustee nor any
Conversion Agent shall be under any responsibility to determine the correctness
of any provisions contained in any such supplemental indenture relating either
to the kind or amount of shares of stock or other securities or property or
cash receivable by Holders of Notes upon the conversion of their Notes after
any such consolidation, merger, conveyance, transfer, sale or lease or to any
such adjustment, but may accept as conclusive evidence of the correctness of
any such provisions, and shall be protected in relying upon, an Opinion of
Counsel with respect thereto, which the Company shall cause to be furnished to
the Trustee upon request.

Section 4.10. Conversion
Prior to November 15, 2009.

In the event a Holder elects
to exercise its right to convert its Notes pursuant to this Article 4, and such
election occurs prior to November 15, 2009, such Holder shall be entitled to
receive, in addition to any shares of Common Stock, securities, cash and other
property such Holder is entitled to receive upon conversion, a make-whole
premium.  This amount will consist of the
present value of all required interest payments on the Notes as if paid in cash
from the Conversion Date through November 15, 2009 (including any accrued but
unpaid interest), computed using a discount rate equal to the Reinvestment
Yield determined on the Conversion Date (the “Conversion
Make-Whole Amount”), provided that the Conversion Make-Whole Amount
shall in no event be greater than $130.277 per $1,000 principal amount of Notes
so converted prior to such date.  The
Company shall have thirty (30) days from the Conversion Date to pay the
Conversion Make-Whole Amount.

Such payment of the
Conversion Make-Whole Amount shall include the Holder’s Pro Rata Amount of the
amounts in the Escrow Account with respect to such Holder’s Notes that are
converted in the event of conversion prior to November 15, 2008, with the
balance of the payment payable, at the Company’s option, in cash, shares of
Common Stock or a combination of cash and shares, provided that
the issuance of shares of Common Stock in payment of this Conversion Make-Whole
Amount will be subject to the Nasdaq Marketplace rules, which may require
stockholder approval in certain circumstances. 
Any such shares of Common Stock will be valued at a 5% discount to the
Current Market Price.

Section 4.11. Share
Issuance Cap.

Notwithstanding any other
provision of the Notes or this Indenture, in no event will the Company issue
more than an aggregate of 28,767,197 shares of Common Stock upon conversion of
the Notes and in payment of any make-whole premium obligations unless the
Company has previously received stockholder approval for issuances of shares of
Common Stock in excess of that number of shares in accordance with, and to the
extent required by, the Nasdaq Marketplace

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rules, and any Holder who would otherwise be entitled
to receive shares of Common Stock upon such conversion of the Notes in excess
of such number shall instead be entitled to receive cash in an amount equal to
the Current Market Price in lieu of each share that such Holder would otherwise
be entitled to receive in excess of such number.  If the Company obtains stockholder approval
for issuances of shares of Common Stock in excess of such number, to the extent
required by the Nasdaq Marketplace rules, the Company will have the option to
either pay Holders cash or issue shares of Common Stock upon such conversions
and payments of make-whole premiums.

Section 4.12. Rights
Issued in Respect of Common Stock.

Rights or warrants
distributed by the Company to all holders of Common Stock entitling the holders
thereof to subscribe for or purchase shares of the Company’s Capital Stock
(either initially or under certain circumstances), which rights or warrants,
until the occurrence of a specified event or events (“Trigger
Event”):

(1)          are deemed to be transferred
with such shares of Common Stock;

(2)          are not exercisable; and

(3)          are also issued in respect
of future issuances of Common Stock,

shall not be deemed
distributed for purposes of Section 4.05(a)(ii) or (iv) hereof until the
occurrence of the earliest Trigger Event. 
In addition, in the event of any distribution of rights or warrants, or
any Trigger Event with respect thereto, that shall have resulted in an
adjustment to the Conversion Rate and Conversion Price under Section 4.05(a)(ii)
or (iv) hereof, (A) in the case of any such rights or warrants that shall all
have been redeemed or repurchased without exercise by any holders thereof, the
Conversion Rate shall be readjusted upon such final redemption or repurchase to
give effect to such distribution or Trigger Event, as the case may be, as
though it were a cash distribution, equal to the per share redemption or
repurchase price received by a holder of Common Stock with respect to such
rights, options or warrants (assuming such holder had retained such rights, options
or warrants), made to all holders of Common Stock as of the date of such
redemption or repurchase, and (B) in the case of any such rights or warrants
all of which shall have expired without exercise by any holder thereof, the
Conversion Rate and Conversion Price shall be readjusted as if such issuance
had not occurred.

Section 4.13. Responsibility
of Trustee for Conversion Provisions.

The Trustee, subject to the
provisions of Section 8.01 hereof, and any Conversion Agent, shall not at any
time be under any duty or responsibility to any Holder to determine whether any
facts exist which may require any adjustment of the Conversion Rate or
Conversion Price, or with respect to the nature or extent of any such
adjustment when made, or with respect to the method employed, herein or in any
supplemental indenture provided to be employed, in making the same, or whether
a supplemental indenture need be entered into. 
Neither the Trustee, subject to the provisions of Section 8.01 hereof,
nor any Conversion Agent, shall be accountable with respect to the validity or
value (or the kind or amount) of any Common Stock, or of any other securities
or property or cash, which may at any time be issued or delivered upon the
conversion of any Note; and it or they do not make any representation with
respect thereto.  Neither the

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Trustee, subject to the provisions of Section 8.01
hereof, nor any Conversion Agent, shall be responsible for any failure of the
Company to make or calculate any cash payment or to issue, transfer or deliver
any shares of Common Stock or share certificates or other securities or
property or cash upon the surrender of any Note for the purpose of conversion;
and the Trustee, subject to the provisions of Section 8.01 hereof, and any
Conversion Agent, shall not be responsible for any failure of the Company to
comply with any of the covenants of the Company contained in this
Article 4.

Section 4.14. Certain
Regulatory Requirements.

Prior to conversion of any
Note, a Holder will ascertain, in consultation with the Company, whether such
conversion will result in a de jure or de facto transfer of control of the Company or any of the
Guarantors under the Communications Act and require prior approval of the FCC
with respect to such conversion.  If the
Company reasonably determines, in consultation with FCC counsel, that the FCC’s
prior approval is required, then the approval of the FCC will be obtained prior
to any such conversion.

ARTICLE 5.

COVENANTS

Section 5.01. Payment
of Notes.

The Company shall pay or
cause to be paid the principal or Aggregate Accreted Principal Amount, if any,
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, Aggregate Accreted Principal
Amount, if any, 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, Aggregate Accreted
Principal Amount, if any, premium, if any, and interest and Liquidated Damages,
if any, then due and the Paying Agent is not prohibited from paying such money
to the Holders on such date pursuant to the terms of this Indenture.  The Company will pay all Liquidated Damages,
if any, in the same manner on the dates and in the amounts set forth herein and
in the Registration Rights Agreement.

The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Code) on overdue principal or Aggregate Accreted Principal Amount,
if any, at the rate equal to 1% per annum in excess of the then applicable
interest rate on the Notes to the extent lawful; it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Code)
on overdue installments of interest (without regard to any applicable grace
period) at the same rate to the extent lawful.

Section 5.02. 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

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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 2.03.

Section 5.03. Reports.

(a)             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 or cause
the Trustee to furnish to the Holders at the Company’s expense and will post on
the Company’s website for public availability, within the time periods
specified in the SEC’s rules and regulations, all quarterly and annual
financial statements and financial information that would be required to be
filed with the SEC on Forms 10-Q and 10-K if the Company were required to
file such reports (when and as if filed). 
All such financial statements will be prepared in all material respects in
accordance with SEC Regulation S-X and will be accompanied by:  (i) a “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in substantially the form
that would be required if filed with the SEC with a Form 10-Q or 10-K, as the
case may be; (ii) all current reports that would be required to be filed with
the SEC in current reports on Form 8-K if the Company were required to file
such reports; and (iii) in the case of annual financial statements, an
audit report thereon by the Company’s independent public accountants.

(b)             For so long as any Notes remain
outstanding, if at any time the Company is not required to file with the SEC
the reports required in this Section 5.03, the Company will furnish to Holders
and to securities analysts and prospective investors of the Notes, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.

Section 5.04. Compliance
Certificate.

(a)             The Company and each Guarantor (to
the extent that such Guarantor is so required under the TIA) shall deliver to
the Trustee, within ninety (90) days after the end of each fiscal year, an
Officer’s Certificate, signed by the Company’s Chief Executive Officer, Chief
Financial Officer or Chief Accounting Officer, 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 Officer with a view to determining
whether the Company and each

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obligor under the Notes and this Indenture has kept,
observed, performed and fulfilled its obligations under the Note Documents, and
further stating, as to the Officer signing such certificate, that to the best
of his or her knowledge the Company and each such obligor has kept, observed,
performed and fulfilled each and every covenant contained in the Note Documents
and is not in default in the performance or observance of any of the terms,
provisions and conditions of the Note Documents (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 or such
obligor 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 or Aggregate Accreted Principal
Amount, premium or Liquidated Damages, if any, or interest, on the Notes is
prohibited or if such event has occurred, a description of the event and what
action the Company or such obligor 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 5.03(a)
above 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 making the examination necessary for certification of such financial
statements, nothing has come to their attention that would lead them to believe
that the Company has violated any provisions of this Article 5 or Article 6
hereof 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 upon any Officer
becoming aware of any Default or Event of Default, an Officer’s Certificate
specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.

Section 5.05. Taxes.

The Company and the Guarantors
shall pay, and shall cause each of their 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.

Section 5.06. Stay,
Extension and Usury Laws.

The Company and each of the
Guarantors covenant (to the extent that they may lawfully do so) that they
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 and each of the
Guarantors (to the extent that they may lawfully do so) hereby expressly waive
all benefit or advantage of any such law, and covenant that they shall not, by
resort to any such law, hinder, delay or impede the execution of any power
herein granted to the

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Trustee, but shall suffer and permit the execution of
every such power as though no such law has been enacted.

Section 5.07. Limitation
on Restricted Payments.

The Company will not, and
will 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 the Company’s
or any of its Restricted Subsidiaries’ Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation
involving the Company or its Restricted Subsidiaries) or to the direct or
indirect holders of the Company’s or any of its Restricted Subsidiaries’ Equity
Interests in their capacity as such (other than dividends or distributions
payable in Equity Interests (other than Disqualified Stock) of the Company or
dividends, payments or distributions payable to the Company or a Restricted
Subsidiary 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
its Restricted Subsidiaries (other than any such Equity Interests owned by the
Company or any Guarantor); (iii) make any payment on or with respect to, or
purchase, redeem, defease or otherwise acquire or retire for value any
Indebtedness of the Company or any of its Restricted Subsidiaries that is
contractually subordinated to the Notes or any Note Guarantee (excluding any
intercompany Indebtedness between or among the Company and any of the
Guarantors), except a payment of interest or principal at the Stated Maturity
thereof; 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”).

So long as no Default or
Event of Default shall have occurred and be continuing or would be caused
thereby, the preceding provisions shall not prohibit (i) the making of any
Restricted Payment 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) or from the substantially concurrent contribution of
common equity capital to the Company; (ii) the repurchase, redemption,
defeasance or other acquisition or retirement for value of Indebtedness of the
Company that is contractually subordinated to the Notes with the net cash
proceeds from a substantially concurrent incurrence of Permitted Refinancing
Indebtedness; (iii) the repurchase of Equity Interests deemed to occur
upon the exercise of stock options to the extent such Equity Interests
represent a portion of the exercise price of those stock options; and (iv) the payment of any dividend or other payment or
distribution or distribution by a Restricted Subsidiary of the Company to the
holders of its Equity Interests on a pro rata basis.

The amount of all Restricted
Payments (other than cash and Cash Equivalents) 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 Restricted Subsidiary, as the
case may be, pursuant to the Restricted Payment.  The Fair Market Value of any Restricted
Payment not in cash or Cash Equivalents shall be determined by the Board of
Directors of the Company whose Board Resolution with respect thereto shall be
delivered to the Trustee, such determination to 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, the Company shall deliver to the Trustee an Officer’s
Certificate stating that such Restricted Payment is permitted and setting forth
the basis upon

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which the calculations required by this
Section 5.07 were computed, together with a copy of any fairness opinion
or appraisal required by this Indenture.

Section 5.08. Limitation
on Dividend and Other Payment Restrictions Affecting Subsidiaries.

The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
create or permit to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary of the Company to
(i) pay dividends or make any other distributions on its Capital Stock to
the Company or any of its Restricted Subsidiaries, or with respect to any other
interest or participation in, or measured by, its profits, or 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) sell, lease or transfer any of its properties or assets
to the Company or any of its Restricted Subsidiaries.

The preceding restrictions
will not apply to encumbrances or restrictions existing under or by reason of:

(1)          any encumbrance or
restriction pursuant to an agreement in effect on the date of the issuance of
the Notes;

(2)          Permitted Refinancing
Indebtedness, provided that the encumbrances and restrictions contained in the
agreements governing such Permitted Refinancing Indebtedness are no more
restrictive than those contained in the agreements governing the Indebtedness
being refinanced;

(3)          this Indenture, the
Collateral Agreements, the Notes and the Note Guarantees;

(4)          applicable law, rule,
regulation or order;

(5)          customary non-assignment
provisions in contracts and licenses entered into in the ordinary course of
business;

(6)          any agreement for the sale
or other disposition of a Restricted Subsidiary of the Company that restricts
distributions by that Restricted Subsidiary pending the sale or other
disposition;

(7)          Liens permitted to be
incurred under Section 5.12 hereof that limit the right of the debtor to
dispose of the assets subject to such Liens;

(8)          provisions limiting the
disposition or distribution of assets or property in joint venture agreements,
asset sale agreements, sale-leaseback agreements, stock sale agreements and
other similar agreements entered into with the approval of the Company’s Board
of Directors, which limitation is applicable only to the assets that are the
subject of such agreements; and

(9)          restrictions on cash or other
deposits or net worth imposed by customers under contracts entered into in the
ordinary course of business.

 

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Section 5.09.                         Limitation on Incurrence of Additional Indebtedness
and Issuance of Preferred Stock.

The Company will not, and
will 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 Indebtedness),
and the Company will not issue any Disqualified Stock and will not permit any
of its Restricted Subsidiaries to issue any shares of preferred stock; provided,  however, that
the Company and the Guarantors will be entitled to incur Indebtedness
(including Acquired Indebtedness) and issue Disqualified Stock if, on the date
of such incurrence or issuance, as applicable, and after giving effect thereto
on a pro forma basis (including pro forma
application of the net proceeds therefrom), the Consolidated Coverage Ratio
exceeds 2.0 to 1.0.

The
provisions of the first paragraph of this Section 5.09 will not prohibit
the incurrence of any of the following items of Indebtedness:

(1)          the incurrence by the
Company and the Guarantors of additional Indebtedness and letters of credit
under the Working Capital Facility in an aggregate principal amount at any one
time outstanding under this clause (1) (with letters of credit being
deemed to have a principal amount equal to the maximum potential liability of
the Company thereunder) not to exceed $50.0 million, less the aggregate
amount of all Net Proceeds of Asset Sales applied by the Company to repay any
Indebtedness under the Working Capital Facility and effect a corresponding
permanent commitment reduction thereunder pursuant to Section 5.10 hereof;

(2)          so long as no Default has
occurred and is continuing, at any time after the Company’s Field EBITDA has
equaled or exceeded $75.0 million, on an annualized basis, for two consecutive
fiscal quarters for which financial statements are available, the incurrence by
the Company and the Guarantors, other than a Guarantor that holds any of the
Company’s 24 GHz or 39 GHz FCC Licenses, of additional Indebtedness, in an
amount equal to 1.50 times the amount of net cash proceeds from the issuance of
Equity Interests (other than Disqualified Stock) after the date of this
Indenture (other than resulting from the conversion of the Notes), in an
aggregate principal amount at any one time outstanding under this clause (2),
together with any Permitted Refinancing Indebtedness incurred to refund,
refinance, replace, defease or discharge any Indebtedness incurred pursuant to
this clause (2), not to exceed $250.0 million, provided that such Indebtedness
has a weighted Average Life greater than the remaining Average Life of the
Notes, and provided further, that prior to the incurrence of any such
Indebtedness, the Company delivers an Officer’s Certificate to the Trustee
certifying that the Company has complied with this clause (2);

(3)          so long as no Default has
occurred and is continuing, the incurrence by the Company of additional
Indebtedness, in an amount equal to 80% of the aggregate principal amount of
Notes that have been converted after the date of this Indenture, provided that
such Indebtedness (a) is expressly subordinated to the prior payment in
full in cash of all Obligations with respect to the Notes, (b) does

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not mature and is not
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder of the Indebtedness, in whole or in
part, on or prior to the date that is ninety-one (91) days after the date on
which the Notes mature, (c) bears cash interest (or any similar payments),
if at all, in an amount not to exceed 12.0% per annum and (d) prohibits
the payment of cash interest (and any similar payments) during any period in
which Company has exercised its option to pay interest on the Notes in the form
of Additional Notes, or if the Company has Defaulted in the payment of interest
on the Notes; and provided further, that prior to the incurrence of any such
Indebtedness, the Company delivers an Officer’s Certificate to the Trustee
certifying that the Company has complied with this clause (3);

(4)          the incurrence by the
Company and the Guarantors of Indebtedness represented by the Initial Notes and
any Additional Notes issued as interest on the Initial Notes, and the Note
Guarantees with respect thereto;

(5)          the incurrence by the
Company and its Restricted Subsidiaries of Permitted Refinancing Indebtedness
in exchange for, or the net proceeds of which are used to renew, refund,
refinance, replace, defease or discharge any Indebtedness (other than
intercompany Indebtedness) that was permitted by this Indenture to be incurred
pursuant to this clause (5) and clauses (2), (4) and (12) of this paragraph;

(6)          the incurrence of
intercompany Indebtedness between or among the Company and any of its
Restricted Subsidiaries; provided, however, that:

A.                         if the Company
or any Guarantor is the obligor on such Indebtedness, such Indebtedness must be
expressly subordinated to the prior payment in full in cash of all Obligations
with respect to the Notes and the Note Guarantees; and

B.                           any (1)
subsequent issuance or transfer of Equity Interests that results in any such
Indebtedness being held by a Person other than the Company or a Restricted
Subsidiary of the Company, or (2) sale or other transfer of any such
Indebtedness to a Person that is not either the Company or a Restricted
Subsidiary of the Company, will be deemed, in each case, to constitute an
incurrence of such Indebtedness that was not permitted by this clause (6);

(7)          the issuance by any of the
Company’s Restricted Subsidiaries to the Company or to any of its Restricted
Subsidiaries of shares of preferred stock; provided, however, that any (a)
subsequent issuance or transfer of Equity Interests that results in any such
preferred stock being held by a Person other than the Company or a Restricted
Subsidiary of the Company, or (b) sale or other transfer of any such preferred
stock to a Person that is not either the Company or a Restricted Subsidiary of
the Company, will be deemed, in each case, to constitute an issuance of such
preferred stock that was not permitted by this clause (7);

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(8)          the incurrence by the
Company of Hedging Obligations in the ordinary course of business;

(9)          the incurrence by the
Company or any of its Restricted Subsidiaries of Indebtedness in respect of
workers’ compensation claims, self-insurance obligations, bankers’ acceptances,
performance and surety bonds in the ordinary course of business;

(10)         the incurrence by the Company
or any Restricted Subsidiaries of the Company 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 design, construction, installation or improvement of
property, plant or equipment used in the business of the Company or any
Restricted Subsidiary of the Company, in an aggregate amount at any time
outstanding not to exceed $10.0 million, provided that the aggregate amount of
Indebtedness outstanding under this clause (10) and clause (14) will not
together exceed $10.0 million at any time;

(11)         the incurrence by the
Company or any of its Restricted Subsidiaries of Indebtedness arising from the
honoring by a bank or other financial institution of a check, draft or similar
instrument inadvertently drawn against insufficient funds, so long as such
Indebtedness is covered within five (5) Business Days;

(12)         the incurrence by the
Company and its Restricted Subsidiaries of Existing Indebtedness;

(13)         the incurrence by the
Company of Indebtedness to the extent that the net proceeds thereof are
promptly deposited to defease or satisfy and discharge the Notes in accordance
with the provisions of this Indenture; and

(14)         the incurrence by the
Company or any of its Restricted Subsidiaries of any other Indebtedness not
otherwise permitted to be incurred under the terms of this Indenture in an
aggregate amount at any time outstanding not to exceed $5.0 million, provided that
the aggregate amount of Indebtedness outstanding under this clause (14) and
clause (10) will not together exceed $10.0 million at any time.

The amount of any
Indebtedness outstanding as of any date will be:

(1)          the accreted value of the
Indebtedness, in the case of any Indebtedness issued with original issue
discount; and

(2)          the principal amount of the
Indebtedness, in the case of any other Indebtedness.

Section 5.10.                         Limitation
on Asset Sales.

The Company will not, and
will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

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(1)          the Company or the
Restricted Subsidiary, as the case may be, receives consideration at the time
of the Asset Sale at least equal to the Fair Market Value of the assets or
Equity Interests issued or sold or otherwise disposed of; and

(2)          at least 85% of the
consideration received in the Asset Sale by the Company or such Restricted
Subsidiary is in the form of cash.

For purposes of this Section
5.10, each of the following will be deemed to be cash:

(1)          any liabilities, as shown on
the Company’s most recent consolidated balance sheet, of the Company or any
Subsidiary (other than contingent liabilities and Indebtedness that are by
their terms subordinated to the Notes or any Note Guarantee) that are assumed
by the transferee of any such assets pursuant to (A) a customary novation
agreement that releases the Company or such Subsidiary from further liability
or (B) an assignment agreement that includes, in lieu of such a release, the
agreement of the transferee or its parent company to indemnify and hold
harmless the Company or such Subsidiary from and against any loss, liability or
cost in respect of such assumed liability;

(2)          any securities, notes or
other obligations received by the Company or any such Restricted Subsidiary
from such transferee that are contemporaneously, 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; and

(3)          any stock or assets of the
kind referred to in clauses (2) or (4) of the next paragraph of this covenant.

Within 365 days after the
receipt of any Net Proceeds from an Asset Sale, the Company (or the applicable
Restricted Subsidiary, as the case may be) may apply such Net Proceeds:

(1)          to repay Indebtedness and
other Obligations under the Working Capital Facility and to correspondingly
reduce commitments with respect thereto;

(2)          to acquire all or
substantially all of the assets of, or any Capital Stock of, another Permitted
Business, if, after giving effect to any such acquisition of Capital Stock, the
Permitted Business is or becomes a Restricted Subsidiary of the Company and a
Guarantor;

(3)          to make capital expenditures
in a Permitted Business; or

(4)          to acquire other assets that
are not classified as current assets under GAAP and that are used or useful in
a Permitted Business.

Pending the final
application of any Net Proceeds, the Company may temporarily reduce borrowings
under the Working Capital Facility or otherwise invest the Net Proceeds in any
manner that is not prohibited by this Indenture.

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Any Net Proceeds from Asset
Sales that are not applied or invested as provided in the second paragraph of
this covenant will constitute “Excess Proceeds.”  When the aggregate amount of Excess Proceeds
exceeds $5.0 million, the Company will, within five (5) days thereof, make an
Asset Sale Offer to all Holders and all holders of other senior secured
Indebtedness that is pari passu in
right of payment and as to security interests with the Notes with respect to
the assets that are the subject of such Asset Sale containing provisions
similar to those set forth in this Indenture with respect to offers to purchase
or redeem with the proceeds of sales of assets to purchase the maximum amount
of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds in accordance with the
procedures set forth in Section 3.09 hereof. 
The offer price for the Notes in any Asset Sale Offer will be equal to
100% of the Aggregate Accreted Principal Amount of the Notes, plus accrued and
unpaid interest and Liquidated Damages, if any, to the date of purchase, and
will include the Holder’s Pro Rata Amount of the amounts in the Escrow Account
with respect to such Holder’s Notes that are purchased, with the balance of the
purchase price payable in cash.  If any
Excess Proceeds remain after consummation of an Asset Sale Offer, the Company
may use those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture.  If the Aggregate Accreted
Principal Amount of Notes and the amount of other pari passu Indebtedness
tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the
Trustee shall select the Notes and such other pari passu Indebtedness
to be purchased on a pro rata basis.  Upon completion of each Asset Sale Offer, the
amount of Excess Proceeds will be reset at zero.

Section 5.11.                         Limitation on Transactions with Affiliates.

The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
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 of the
Company or any Restricted Subsidiary of the Company (each, an “Affiliate Transaction”), unless:

(1)          the 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

(2)          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 $2.5 million (other than an Ordinary
Course Affiliate Transaction), a Board Resolution set forth in an Officer’s
Certificate certifying that such Affiliate Transaction complies with this
covenant and that such Affiliate Transaction has been approved by a majority of
the disinterested members of the Board of Directors of the Company;

B.                                     with respect to
any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $10.0 million

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(other than an Ordinary
Course Affiliate Transaction), an opinion as to the fairness to the Company or
such Restricted Subsidiary of such Affiliate Transaction from a financial point
of view issued by an accounting, appraisal or investment banking firm of
national standing; and

C.                                     with respect to
any Ordinary Course Affiliate Transaction or series of related Ordinary Course
Affiliate Transactions involving aggregate consideration in excess of $10.0
million, a Board Resolution set forth in an Officer’s Certificate certifying
that such Ordinary Course Affiliate Transaction complies with this covenant and
that such Ordinary Course Affiliate Transaction has been approved by a majority
of the disinterested members of the Board of Directors of the Company.

The following items will not
be deemed to be Affiliate Transactions and, therefore, will not be subject to
the provisions of the prior paragraph:

(1)          any employment agreement,
employee benefit plan, officer or director indemnification agreement or any
similar arrangement entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business and payments pursuant thereto;

(2)          transactions exclusively
between or among the Company and/or the Guarantors;

(3)          transactions with a Person
that is an Affiliate of the Company solely because the Company owns, directly
or through a Restricted Subsidiary of the Company, an Equity Interest in, or
controls, such Person;

(4)          payment of reasonable
directors’ fees to Persons who are not otherwise Affiliates of the Company or
its Restricted Subsidiaries;

(5)          Restricted Payments that do
not violate the provisions of this Indenture described under Section 5.07
hereof;

(6)          loans or advances to
employees in the ordinary course of business, and in compliance with applicable
law, not to exceed $1.0 million in the aggregate at any one time outstanding;
and

(7)          any agreement as in effect
on the Original Issue Date or any amendments, renewals or extensions of any
such agreement (so long as such amendments, renewals or extensions are not less
favorable to the Holders).

Section 5.12.                         Limitation on Liens.

The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, assume or otherwise cause or suffer to exist any Lien of any
kind on any asset now owned or hereafter acquired, except Permitted Liens.

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Section 5.13.                         Conduct of Business.

The Company will not, and
will not permit any of its Restricted Subsidiaries to, engage in any business
other than a Permitted Business.

Section 5.14.                         Designation of Restricted and Unrestricted
Subsidiaries.

The Board of Directors of
the Company may designate any Restricted Subsidiary of the Company to be an
Unrestricted Subsidiary if that designation would not cause a Default.  If a Restricted Subsidiary of the Company is
designated as an Unrestricted 
Subsidiary, the aggregate Fair Market Value of all outstanding
Investments owned by the Company and its Restricted Subsidiaries in the
Restricted Subsidiary so designated as an Unrestricted Subsidiary will be
deemed to be an Investment made as of the time of the designation and will
reduce the amount available for Restricted Payments under Section 5.07 hereof
or under one or more clauses of the definition of Permitted Investments, as
determined by the Company.  That
designation will only be permitted if the Investment would be permitted at that
time and if the Restricted Subsidiary of the Company otherwise meets the
definition of an Unrestricted Subsidiary. 
The Board of Directors of the Company may redesignate any Unrestricted
Subsidiary to be a Restricted Subsidiary if that redesignation would not cause
a Default.  The determination of Fair
Market Value for the foregoing purposes will be made by the Board of Directors
of the Company, whose determination will be conclusive.

Any designation of a
Subsidiary of the Company as an Unrestricted Subsidiary shall be evidenced to
the Trustee by filing with the Trustee a certified copy of a Board Resolution
giving effect to such designation and Officer’s Certificate certifying that
such designation complies with the preceding conditions and was permitted by
Section 5.07 hereof.  If, at any time,
any Unrestricted Subsidiary would fail to meet the preceding requirements as an
Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted
Subsidiary for purposes of this Indenture and any Indebtedness of such
Subsidiary will 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 5.09 hereof, the Company will be in
default of Section 5.09 hereof.  The
Board of Directors of the Company may at any time designate any Unrestricted
Subsidiary to be a Restricted Subsidiary of the Company under this Indenture; provided that such designation will 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
will only be permitted if (1) such Indebtedness is permitted under Section 5.09
hereof, calculated on a pro forma basis
as if such designation had occurred at the beginning of the four-quarter
reference period, and (2) no Default or Event of Default under this Indenture
would be in existence following such designation.

Section 5.15.                         Issuance
and Sale of Capital Stock of Restricted Subsidiaries.

The Company will not sell,
and will not permit any of its Restricted Subsidiaries, directly or indirectly,
to issue or sell any Equity Interests of a Restricted Subsidiary of the Company
except:

(1)          to the Company or a
wholly-owned Restricted Subsidiary of the Company;

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(2)          issuances of director’s
qualifying shares, or sales to foreign nationals of Equity Interests of
Restricted Subsidiaries of the Company (other than Domestic Restricted
Subsidiaries), to the extent required by applicable law;

(3)          if immediately after giving
effect to such issuance or sale, such Restricted Subsidiary would no longer
constitute a Restricted Subsidiary and any Investment in such Person remaining
after giving effect to such issuance or sale would have been permitted to be
made in accordance with Section 5.07 hereof if made on the date of such
issuance or sale; or

(4)          issuances or sales of common
stock of a Restricted Subsidiary of the Company, provided that the Company or
such Restricted Subsidiary applies the Net Proceeds, if any, of any such
issuance or sale in accordance with Section 5.10 hereof.

Section 5.16.                         Maintenance
of Insurance.

The Company will, and will
cause each of its Restricted Subsidiaries to, maintain, with financially sound
and reputable insurance companies, insurance in such amounts and against such
risks as are customarily maintained by companies engaged in the same or similar
businesses.

The Company and the
Guarantors will maintain adequate insurance policies and will upon written
request provide the Collateral Agent with evidence of such insurance coverage for
public liability, property damage, product liability and business interruption
with respect to their businesses and properties against loss or damage (1) of
the kinds customarily carried or maintained by corporations of established
reputation engaged in similar businesses and (2) as may be required by the
Collateral Agreements.  Upon the request
of the Collateral Agent, the Company and the Guarantors shall furnish to the
Collateral Agent full information as to their property and liability insurance
carriers.  The Collateral Agent, for the
benefit of the Holders, as a class, will be named as an additional insured,
with a waiver of subrogation, on all insurance policies of the Company and the
Guarantors, and the Collateral Agent will be named as loss payee, with thirty
(30) days’ notice of cancellation or material change, on all property and
casualty insurance policies of the Company and the Guarantors.

Section 5.17.                         Payments
for Consent.

The Company will not, and
will 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 or for the benefit of any Holder for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of the Note Documents,
unless such consideration is offered to be paid or is paid to all Holders 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 5.18.                         Additional
Guarantees.

If the Company or any of its
Restricted Subsidiaries organize, acquire or otherwise create or invest in
another Person that is or becomes a Domestic Restricted Subsidiary that is not
a

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Guarantor, then the Company
shall cause such Domestic Restricted Subsidiary that is not a Guarantor to:

(1)          execute and deliver to the
Trustee a supplemental indenture in form and substance reasonably satisfactory
to the Trustee pursuant to which such Domestic Restricted Subsidiary shall
unconditionally guarantee on a senior secured basis all of the Company’s
obligations under the Notes and this Indenture on the terms set forth in this
Indenture;

(2)          execute and deliver to the
Collateral Agent, amendments to the Collateral Agreements  and take such other actions as the Collateral
Agent deems reasonably necessary in order to grant to the Collateral Agent, for
the benefit of the Holders, a perfected Lien in the assets, including the
filing of UCC financing statements in such jurisdictions as may be required by
the Collateral Agreements, by law or as may be reasonably requested by the
Collateral Agent;

(3)          take such further action and
execute and deliver such other documents specified in this Indenture or
otherwise reasonably requested by the Trustee to effectuate the foregoing; and

(4)          deliver to the Trustee an
Opinion of Counsel that such supplemental indenture and Note Guarantee, and
amendments to the Collateral Agreements and any other documents required to be
delivered have been duly authorized, executed and delivered by such Domestic
Restricted Subsidiary and constitute legal, valid, binding and enforceable
obligations of such Domestic Restricted Subsidiary and such other opinions
regarding the perfection of such Liens in the assets of such Domestic
Restricted Subsidiary.

Thereafter, such Domestic
Restricted Subsidiary shall be a Guarantor for all purposes of this Indenture.

Section 5.19.                         Anti-Layering.

The Company will not incur,
and will not permit any Guarantor to incur, any Indebtedness that is
contractually subordinated in right of payment to any other Indebtedness of the
Company or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes and the applicable Note Guarantee
on substantially identical terms.

Section 5.20.                         Further
Assurances Relating to Collateral.

The Company shall, and shall
cause each Guarantor to, at their sole cost and expense, execute and deliver
all such agreements and instruments as the Collateral Agent or the Trustee
shall reasonably request to more fully or accurately describe the property
included as Collateral or the obligations intended to be secured by the
Collateral Agreements.  The Company
shall, and shall cause each of its Restricted Subsidiaries to, at their sole
cost and expense, execute, acknowledge and deliver all such security documents,
certificates, notices and other documents and (subject to the provisions of the
Intercreditor Agreement) take such other actions as shall be reasonably
required, or as the Collateral Agent or the Trustee shall reasonably request to
create,

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perfect, protect, continue
the perfection of, assure or enforce the Note Liens and benefits intended to be
conferred, in each case as contemplated by the Note Documents for the benefit
of the Holders.

Section 5.21.                         Real
Estate Mortgages and Filings.

With respect to any fee
interest in any land and the related improvements (including fixtures) thereon
(individually and collectively, the “Premises”) (i)
owned by the Company or a Restricted Subsidiary of the Company on the Original
Issue Date and that has a Fair Market Value on such date of greater than $1.0
million or (ii) acquired by the Company or a Restricted Subsidiary of the
Company after the Original Issue Date for a purchase price of greater than $1.0
million, within ninety (90) days of the Original Issue Date in the case of
clause (i) above and within ninety (90) days of the acquisition thereof in the
case of clause (ii) above:

(1)          the Company shall deliver to
the Collateral Agent, as mortgagee, fully-executed counterparts of mortgages,
each dated as of the Original Issue Date or the date of acquisition of such
property, as the case may be, duly executed by the Company or the applicable
Restricted Subsidiary, together with evidence of the completion (or satisfactory
arrangements for the completion), of all recordings and filings of such
mortgage as may be necessary to create a valid, perfected Lien, subject to
Permitted Liens, against the properties purported to be covered thereby;

(2)          the Company shall deliver to
the Collateral Agent, mortgagee’s title insurance policies in favor of the
Collateral Agent, as mortgagee for the ratable benefit of the Collateral Agent,
the Trustee and the Holders in an amount equal to 100% of the Fair Market Value
of the Premises purported to be covered by the related mortgage, insuring that
title to such property is marketable and that the interests created by the
mortgage constitute valid Liens thereon free and clear of all Liens, defects
and encumbrances other than Permitted Liens;

(3)          the Company shall deliver to
the Collateral Agent, with respect to each of the covered Premises, the most
recent survey of such Premises, together with either (i) an updated survey
certification in favor of the Trustee and the Collateral Agent from the
applicable surveyor stating that, based on a visual inspection of the property
and the knowledge of the surveyor, there has been no change in the facts
depicted in the survey or (ii) an affidavit and/or indemnity from the Company
or the applicable Restricted Subsidiary, as the case may be, stating that to
its knowledge there has been no change in the facts depicted in the survey,
other than, in each case, changes that do not materially adversely affect the
use by the Company or such Restricted Subsidiary, as applicable, of such
Premises for the Company or such Restricted Subsidiary’s business as so
conducted, or intended to be conducted, at such Premises at the time of
delivery thereof and in each case, in form sufficient for the title insurer
issuing the title policy to remove the standard survey exception from such
policy and issue a survey endorsement to such policy; and

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(4)          the Company shall cause to
be delivered to the Collateral Agent, an Opinion of Counsel that such mortgage
and any other documents required to be delivered have been duly authorized,
executed and delivered by the Company or such Restricted Subsidiary, as
applicable, and constitute legal, valid, binding and enforceable obligations of
the Company or such Restricted Subsidiary, as applicable, and such other
opinions regarding the perfection of such Liens created by such mortgage in
such Premises as the Collateral Agent shall reasonably request.

Section 5.22.                         Corporate
Existence.

Subject to Article 6 hereof,
the Company shall do or cause to be done all things necessary to preserve and
keep in full force and effect (1) 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 (2) 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 Company’s 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.

Section 5.23.                         Liquidated
Damages.

If at any time Liquidated
Damages become payable by the Company or the Guarantors pursuant to the
Registration Rights Agreement, the Company shall promptly deliver to the
Trustee an Officer’s Certificate to that effect stating (i) the amount of such
Liquidated Damages that is payable and (ii) the date on which such Liquidated
Damages are payable pursuant to the terms of the Registration Rights
Agreement.  Unless and until a Corporate
Trust Officer receives such a certificate, the Trustee may assume without
inquiry that no Liquidated Damages under the Registration Rights Agreement are
payable.  If the Company has paid
Liquidated Damages directly to the Persons entitled to such Liquidated Damages,
the Company shall deliver to the Trustee an Officer’s Certificate setting forth
the particulars of such payment.

The failure by the Company
to deliver such certificates shall not relieve the Company or the Guarantors in
any respect of their obligation to pay such Liquidated Damages when due and
owing.

ARTICLE 6.

SUCCESSORS

Section 6.01.                         Merger,
Consolidation, or Sale of Assets.

The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly:

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(1)          consolidate or merge with or
into another Person (whether or not the Company or such Restricted Subsidiary
is the surviving corporation); or

(2)          sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or
assets of the Company and its Restricted Subsidiaries taken as a whole, in one
or more related transactions, to another Person, unless:

A.                                   if the Company or such Restricted Subsidiary
is a party to such transaction, either (i) the Company or such Restricted
Subsidiary is the surviving corporation or (ii) 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 has been
made is a corporation organized or existing under the laws of the United
States, any state of the United States or the District of Columbia;

B.                                     if the Company or such Restricted Subsidiary
is a party to such transaction, the Person formed by or surviving any such
consolidation or merger (if other than the Company or such Restricted Subsidiary)
or the Person to which such sale, assignment, transfer, conveyance or other
disposition has been made assumes all the obligations of the Company or such
Restricted Subsidiary under the Notes and this Indenture pursuant to agreements
reasonably satisfactory to the Trustee;

C.                                     immediately after such transaction, no
Default or Event of Default exists;

D.                                    except to the extent waived by the FCC or as
would not have a material adverse effect on the condition (financial or
otherwise), results of operations, business or prospects of the Company and its
Restricted Subsidiaries, taken as a whole, the Company and its Restricted
Subsidiaries have obtained all required FCC consents under the Communications
Act in relation to such sale, assignment, transfer, conveyance, or other
disposition; and

E.                                      the Company or the Person formed by or
surviving any such consolidation or merger or to which such sale, assignment,
transfer, conveyance or other disposition is made (if other than the Company),
will have Consolidated Net Worth immediately after the transaction equal to or
greater than the Consolidated Net Worth of the Company immediately preceding
the transaction.

In addition, the Company
will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, lease all or substantially all of the properties and assets of
the Company and its Restricted Subsidiaries taken as a whole, in one or more
related transactions, to any other Person.

This Section 6.01 will not
apply to:

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(1)          a merger of the Company or a
Restricted Subsidiary of the Company with an Affiliate solely for the purpose
of reincorporating the Company in another jurisdiction; or

(2)          any consolidation or merger,
or any sale, assignment, transfer, conveyance, lease or other disposition of
assets between or among the Company and its Restricted Subsidiaries that are
Guarantors.

Section 6.02.                         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 or any of
its Restricted Subsidiaries in accordance with Section 6.01 hereof, the
successor corporation formed by such consolidation or into or with which the
Company or such Restricted Subsidiary 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, assignment, transfer, lease, conveyance or other
disposition, the provisions of this Indenture referring to the “Company” or to
a “Restricted Subsidiary” or “Guarantor” shall refer instead to the successor
corporation and not to the Company or such Restricted Subsidiary or Guarantor,
as the case may be), and may exercise every right and power of the Company or
such Restricted Subsidiary or Guarantor under this Indenture with the same
effect as if such successor Person had been named as the Company or a
Restricted Subsidiary or Guarantor herein; provided, however,
that the predecessor Person 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
or substantially all assets that meets the requirements of Section 6.01
hereof.

ARTICLE 7.

DEFAULTS AND REMEDIES

Section 7.01.                         Events of
Default.

Each
of the following is an “Event of Default”:

(1)                default for thirty (30) days
in the payment when due of interest on, or Liquidated Damages, if any, with
respect to the Notes;

(2)                default in the payment when
due (at maturity or otherwise) of the principal or Aggregate Accreted Principal
Amount of, or premium, if any, on, the Notes;

(3)                default in the Company’s
obligation to deliver shares of Common Stock, cash or other property upon
conversion of the Notes as required under this Indenture and such default
continues for a period of five (5) days;

(4)                failure by the Company or
any of its Restricted Subsidiaries to comply with the provisions of Sections
3.08, 5.07, 5.09, 5.10 or 6.01 hereof;

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(5)                failure by the Company or
any of its Restricted Subsidiaries for sixty (60) days after notice to the
Company by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes (including Additional Notes, if any) then outstanding
voting as a single class to comply with any of the other agreements in this
Indenture or any Collateral Agreement; provided, however, that with respect to a failure by the Company to
comply with Section 5.03 hereof, such period shall be ninety (90) days, rather
than sixty (60) days;

(6)                default under any mortgage,
indenture or instrument under which there may be issued or by which there may
be secured or evidenced any Indebtedness for money borrowed by the Company or
any of its Restricted Subsidiaries (or the payment of which is guaranteed by
the Company or any of its Restricted Subsidiaries), whether such Indebtedness
or Guarantee now exists, or is created after the date of this Indenture, if
that default:

A.                                   is caused by a failure to pay principal of,
or interest or premium, if any, on, such Indebtedness when due, or if
applicable, prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment
Default”); or

B.                                     results in the acceleration of such
Indebtedness prior to its express maturity,

and, in each case, the principal amount of
any such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been a Payment Default or the maturity of
which has been so accelerated, aggregates $10.0 million or more;

(7)                failure by the Company or
any of its Restricted Subsidiaries to pay final judgments entered by a court or
courts of competent jurisdiction aggregating in excess of $10.0 million, which
judgments are not paid, discharged or stayed for a period of sixty (60) days;

(8)                (i) any revocation,
cancellation or relinquishment, which action is not subject to further appeal,
of the Company’s or its Restricted Subsidiaries’ (a) 24 GHz FCC Licenses
covering a population equal to or greater than 5.0% of the population covered
by all of the Company’s and its Restricted Subsidiaries’ 24 GHz FCC Licenses or
(b) 39 GHz licenses covering a population equal to or greater than 33 1/3% of
the population covered by all of the Company’s and its Restricted Subsidiaries’
39 GHz licenses, with the population in each case determined by the most recent
official census conducted by the U.S. government and (ii) such FCC License
revocation, cancellation or relinquishment, individually or in the aggregate,
has a material adverse effect on the condition (financial or otherwise),
results of operations, business or prospects of the Company and its Restricted
Subsidiaries taken as a whole;

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(9)                the Company or any of its
Restricted Subsidiaries, pursuant to or within the meaning of the Bankruptcy
Code:

A.                                   commences a voluntary case;

B.                                     consents to the entry of an order for relief
against it in an involuntary case;

C.                                     consents to the appointment of a custodian,
receiver, trustee, assignee, liquidator or similar official under the
Bankruptcy Code of it or for all or substantially all of its property;

D.                                    makes a general assignment for the benefit of
its creditors; or

E.                                      generally is not paying its debts as they
become due;

(10)          a court of competent
jurisdiction enters an order or decree under any Bankruptcy Code that:

A.                                   is for relief against the Company or any of
its Restricted Subsidiaries in an involuntary case;

B.                                     appoints a custodian, receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Code of the
Company or any of its Restricted Subsidiaries, or for all or substantially all
of the property of the Company or any of its Restricted Subsidiaries; or

C.                                     orders the liquidation of the Company or any
of its Restricted Subsidiaries;

(11)          any Collateral Agreement at
any time for any reason shall cease to be in full force and effect in all
material respects, or any Collateral Agreement ceases to give the Collateral
Agent the Liens (other than Liens securing Collateral, individually or in the
aggregate, having a Fair Market Value of less than $500,000), rights, powers
and privileges purported to be created thereby, superior to and prior to the
rights of all third Persons other than the holders of Permitted Liens and
subject to no other Liens except as expressly permitted by any Collateral
Agreement or this Indenture;

(12)          the Company or any of its
Restricted Subsidiaries contest in any manner the effectiveness, validity,
binding nature or enforceability of any Collateral Agreement; or

(13)          the Note Guarantee of any
Guarantor ceases to be in full force and effect or is declared to be null and
void and unenforceable or is found to be invalid or any Guarantor denies its
liability under its Note Guarantee (other than by reason of release of a
Guarantor in accordance with the terms of this Indenture).

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Section 7.02.                         Acceleration.

In the case of an Event of
Default specified in clause (9) or (10) of Section 7.01 hereof, with respect to
the Company or any Restricted Subsidiary of the Company, all outstanding Notes plus
any remaining amounts in the Escrow Account and Liquidated Damages, if any,
will become due and payable immediately without further action or notice.  If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes may declare all the Notes, plus any
remaining amounts in the Escrow Account and Liquidated Damages, if any, to be
due and payable immediately.  If the
Notes become due and payable at any time prior to maturity, the amount that
shall become due and payable shall be the Aggregate Accreted Principal Amount
of such Notes.

Holders of a majority in
aggregate principal amount of the then outstanding Notes by written notice to
the Trustee may, on behalf of the Holders of all of the Notes, rescind an
acceleration or waive any existing Default or Event of Default and its
consequences under this Indenture if the rescission would not conflict with any
judgment or decree and if all existing Events of Default (except nonpayment of
principal or Aggregate Accreted Principal Amount, interest or premium and
Liquidated Damages, if any, that has become due solely because of the
acceleration) have been cured or waived. 
The Trustee may withhold from the Holders of the Notes then outstanding
notice of any continuing Default or Event of Default under this Indenture if it
determines that withholding notice is in their interest, except a Default or
Event of Default under this Indenture relating to the payment of principal or Aggregate
Accreted Principal Amount, interest or premium, if any.  Subject to the provisions of this Indenture
relating to the duties of the Trustee, including, without limitation, Section
8.01 hereof, in case an Event of Default occurs and is continuing, the Trustee
will be under no obligation to exercise any of the rights or powers under this
Indenture at the request or direction of any Holders unless such Holders have
offered to the Trustee reasonable indemnity or security against any loss,
liability or expense.

If an Event of Default
occurs on or prior to November 15, 2010 by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of the Company or the Guarantors
with the intention of avoiding the prohibition on redemption of the Notes prior
to November 15, 2010 or the requirement to pay the Designated Event Make-Whole
Amount, then, upon acceleration of the Notes, any additional premium shall also
become due and immediately payable, to the extent permitted by law, in an
amount equal to the Designated Event Make-Whole Amount.  If an Event of Default occurs on or prior to
November 15, 2009 by reason of any willful action (or inaction) taken (or not
taken) by or on behalf of the Company or the Guarantors with the intention of
avoiding the requirement to pay the Conversion Make-Whole Amount, then, upon
acceleration of the Notes, any additional premium shall also become due and be
immediately payable, to the extent permitted by law, in an amount equal to the
Conversion Make-Whole Amount.

Section 7.03.                         Other
Remedies.

If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal or Aggregate Accreted Principal Amount,
premium, if any, and interest on the Notes or to enforce the performance of any
provision of the Notes, the Note Guarantees or this Indenture.

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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 7.04.                         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 an
existing Default or Event of Default and its consequences hereunder, except a
continuing Default or Event of Default in the payment of the principal or
Aggregate Accreted Principal Amount of, premium or 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 7.05.                         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 or the Collateral
Agreements that the Trustee determines may be unduly prejudicial to the rights
of other Holders or that may involve the Trustee in personal liability or
expense.

Section 7.06.                         Limitation
on Suits.

Except to enforce the right
to receive payment of principal or Aggregate Accreted Principal Amount,
interest or premium or Liquidated Damages, if any, on the Notes, a Holder of a
Note may pursue a remedy with respect to this Indenture or the Notes only if:

(1)          such Holder has previously
given the Trustee written notice that an Event of Default is continuing;

(2)          Holders of at least 25% in
aggregate principal amount of the then outstanding Notes (including Additional
Notes, if any) have requested in writing that the Trustee pursue the remedy;

(3)          such Holder or Holders offer
and, if requested, provide to the Trustee indemnity reasonably satisfactory to
the Trustee against any loss, liability or expense;

(4)          the Trustee does not comply
with the request within sixty (60) days after receipt of the request and the
offer and, if requested, the provision of 
indemnity; and

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(5)          during such sixty (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 7.07.                         Rights of
Holders of Notes to Receive Payment.

Notwithstanding any other
provision of this Indenture, the right of any Holder of a Note to receive
payment of principal and Aggregate Accreted Principal Amount, premium and
Liquidated Damages, if any, and interest on such 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; provided that a
Holder shall not have the right to institute any such suit for the enforcement
of payment if and to the extent that the institution or prosecution thereof or
the entry of judgment therein would, under applicable law, result in the
surrender, impairment, waiver or loss of the Lien of this Indenture upon any
property subject to such Lien.

Section 7.08.                         Collection
Suit by Trustee.

If an Event of Default
specified in Section 7.01(1) or (2) 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 and the Guarantors for the whole amount of principal
and Aggregate Accreted Principal Amount, of, premium and Liquidated Damages, if
any, and interest remaining unpaid on the Notes and interest on overdue
principal and Aggregate Accreted Principal Amount 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 7.09.                         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 allowed in any judicial
proceedings relative to the Company (or any other obligor upon the Notes and
the Note Guarantees, including the Guarantors), their creditors or their
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 8.07 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 8.07
hereof out of the estate in any such

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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 Holder, or to authorize
the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

Section 7.10.                         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 (including any predecessor Trustee), the Collateral Agent, the
Paying Agent, the Conversion Agent and the Registrar, their respective agents
and attorneys for amounts due under Section 8.07 hereof, including payment
of all compensation, expense and liabilities incurred, and all advances made,
by the Trustee (including any predecessor Trustee) or the Collateral Agent, the
Paying Agent, the Conversion Agent or the Registrar, as the case may be, and
the costs and expenses of collection;

Second:        to
Holders for amounts due and unpaid on the Notes for principal and Aggregate
Accreted Principal Amount, premium and Liquidated Damages, if any, and
interest, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Notes for principal and Aggregate Accreted
Principal Amount, premium and Liquidated Damages, if any, and interest,
respectively; and

Third:           to
the Company or to such party as a court of competent jurisdiction shall direct.

The Trustee may fix a record
date and payment date for any payment to Holders pursuant to this
Section 7.10.

Section 7.11.                         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, 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 7.11 does not apply to a
suit by the Trustee, a suit by a Holder of a Note pursuant to Section 7.07
hereof, or a suit by Holders of more than 10% in principal amount of the then
outstanding Notes.

 

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ARTICLE 8.

TRUSTEE

Section 8.01.                         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 the Collateral Agreements and use the same
degree of care and skill in its exercise as a prudent Person would exercise or
use under the circumstances in the conduct of such Person’s 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 Collateral Agreements, and the
Trustee need perform only those duties that are specifically set forth in this
Indenture and the Collateral Agreements, and no others, and no implied
covenants or obligations shall be read into this Indenture and the Collateral
Agreements 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 and the Collateral
Agreements.  However, the Trustee shall
examine the certificates and opinions to determine whether or not they conform
to the requirements of this Indenture and the Collateral Agreements.

(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 8.01;

(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 7.05 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 8.01.

(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 or the
Collateral Agreements at the request of any Holder, unless such Holder shall
have offered to the Trustee security and indemnity satisfactory to it against
any loss, liability or expense.

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(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 8.02.                         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 the document.

(b)             Before the Trustee acts or refrains
from acting, it may require an Officer’s 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
Officer’s 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 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 or a Guarantor shall be sufficient if signed by an Officer of the
Company or such Guarantor.

(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 discretion of any of the Holders unless such Holders shall
have offered to the Trustee reasonable security or indemnity 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 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 or Event of Default is received by the Trustee
at the Corporate Trust Office of the Trustee, and such notice references the
Notes and this Indenture.

(h)             The rights, privileges, 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 each agent, custodian and other Person
employed to act hereunder.

(i)              The Trustee may request that the
Company deliver an Officer’s Certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions
pursuant to this Indenture, which Officer’s Certificate may be signed by any

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Person authorized to sign an Officer’s Certificate,
including any Person specified as to authorized in any such certificate
previously delivered and not suspended.

Section 8.03.                         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 ninety
(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 8.10 and 8.11 hereof.

Section 8.04.                         Trustee’s
Disclaimer.

The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture, the Collateral Agreements 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,
the Collateral Agreements or any other document in connection with the sale of
the Notes or pursuant to this Indenture other than its certificate of
authentication.

Section 8.05.                         Notice of
Defaults.

If a Default or Event of
Default occurs and is continuing and if it is known to the Trustee, the Trustee
shall mail to Holders a notice of the Default or Event of Default within ninety
(90) days after it occurs.  Except in the
case of a Default or Event of Default in payment of principal or Aggregate
Accreted Principal Amount, of, premium 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.

Section 8.06.                         Reports
by Trustee to Holders of the Notes.

Within sixty (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
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 in
accordance with TIA § 313(d).  The
Company shall promptly notify the Trustee when the Notes are listed on any
stock exchange.

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Section 8.07.                         Compensation
and Indemnity.

The Company shall pay to the
Trustee from time to time compensation for its acceptance of this Indenture and
services hereunder as shall be agreed in writing by the Company and the
Trustee, including for any Agent capacity in which it acts.  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
the Trustee against any and all losses, liabilities, damages, claims or
expenses incurred by it, including in any Agent capacity in which it acts,
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 8.07) 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 may be attributable to its gross negligence, willful
misconduct or bad faith.  The Trustee
shall notify the Company promptly of any claim 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 8.07 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 8.07, 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 7.01(9) or (10) 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
Code.

The Trustee shall comply
with the provisions of TIA § 313(b)(2) to the extent applicable.

Section 8.08.                         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 and taking of office as
provided in this Section 8.08.

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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:

(1)          the Trustee fails to comply
with Section 8.10 hereof;

(2)          the Trustee is adjudged a
bankrupt or an insolvent or an order for relief is entered with respect to the
Trustee under any Bankruptcy Code;

(3)          a custodian, receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Code or
public officer takes charge of the Trustee or its property; or

(4)          the Trustee becomes
incapable of acting.

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.

If a successor Trustee is
appointed and does not take office within thirty (30) days after the retiring
Trustee resigns, the retiring Trustee may appoint a successor Trustee at any
time prior to the date on which a successor Trustee takes office.  If a successor Trustee does not take office
within sixty (60) days after the retiring Trustee resigns or is removed, the
retiring Trustee, the Company, or the Holders of at least 10% in principal
amount of the then outstanding Notes may petition any court of competent
jurisdiction, at the expense of the Company, for the appointment of a successor
Trustee.

If the Trustee, after
written request by any Holder who has been a Holder for at least six months,
fails to comply with Section 8.10 hereof, such Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.  
Within one year after the successor Trustee appointed by the Company or
a court pursuant to this Section 8.08 takes office, the Holders of a majority
in principal amount of the then outstanding Notes may appoint a successor
Trustee to replace such 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. 
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 8.07 hereof. 
Notwithstanding replacement of the Trustee pursuant to this
Section 8.08, the Company’s obligations under Section 8.07 hereof
shall continue for the benefit of the retiring Trustee.

Section 8.09.                         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

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act shall be the successor Trustee; provided, that such successor corporation shall otherwise be
eligible and qualified under this Article 8.

Section 8.10.                         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 8.11.                         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.

Section 8.12.                         Powers of
Trustee Subject to Communications Act.

All powers of the Trustee
under this Indenture, in its capacity as trustee of this Indenture, are subject
to applicable provisions of the Communications Act, including, without limitation,
the requirements of prior approval for de facto or de jure transfer of control or assignment of Title III
licenses, to the extent that such requirements are applicable.

Section 8.13.                         Trustee
as Paying Agent, Conversion Agent, Registrar and Collateral Agent.

References to the Trustee in
Sections 8.01, 8.02, 8.03, 8.04, 8.07, 8.08, 8.09 and 8.12 hereof shall include
the Trustee in its role as Paying Agent, as Conversion Agent, as Registrar and
as Collateral Agent.

ARTICLE 9.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 9.01.                         Option to
Effect Legal Defeasance or Covenant Defeasance.

The Company may at any time,
at the option of its Board of Directors evidenced by a Board Resolution, elect
to have either Section 9.02 or 9.03 hereof be applied to all outstanding
Notes and the Note Guarantees upon compliance with the conditions set forth
below in this Article 9.

Section 9.02.                         Legal
Defeasance and Discharge.

Upon the Company’s exercise
under Section 9.01 hereof of the option applicable to this Section 9.02,
the Company and the Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 9.04 hereof, be deemed to have been discharged
from their obligations with 

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respect to all outstanding
Notes (including the Note Guarantees) on the date the conditions set forth
below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Company and the Guarantors shall be deemed to have paid and discharged the
entire Indebtedness represented by the outstanding Notes and the Note
Guarantees, which Notes and Note Guarantees shall thereafter be deemed to be “outstanding”
only for the purposes of Section 9.05 hereof and the other Sections of
this Indenture referred to in (a) and (b) below, and to have satisfied all its
other obligations under such Notes, the Note Guarantees, the Collateral
Agreements 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 payments in respect of
the principal and Aggregate Accreted Principal Amount of, and premium,
Liquidated Damages and interest, if any, on, such Notes when such payments are
due from the trust described under Section 9.04(1) hereof; (b) the rights of
Holders of outstanding Notes to convert such Notes as provided by Article 4
hereof; (c) the Company’s and Guarantors’ obligations with respect to such
Notes and Note Guarantees under Article 2 and Section 5.02 hereof; (d) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s and the Guarantors’ obligations in connection therewith; and (e) this
Article 9.  Subject to compliance with
this Article 9, the Company may exercise its option under this
Section 9.02 notwithstanding the prior exercise of its option under
Section 9.03 hereof.

Section 9.03.                         Covenant
Defeasance.

Upon the Company’s exercise
under Section 9.01 hereof of the option applicable to this
Section 9.03, the Company and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 9.04 hereof, be
released from their respective obligations under the covenants contained in
Sections 5.07 through 5.19 hereof with respect to the outstanding Notes on and
after the date the conditions set forth in Section 9.04 hereof 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 and Note
Guarantees, the Company and the Guarantors 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 7.01 hereof, but, except as specified above, the remainder of this
Indenture and such Notes and Note Guarantees shall be unaffected thereby.  In addition, upon the Company’s exercise
under Section 9.01 hereof of the option applicable to this
Section 9.03 hereof, subject to the satisfaction of the conditions set
forth in Section 9.04 hereof, Sections 7.01(4) through 7.01(6) hereof
shall not constitute Events of Default.

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Section 9.04.                         Conditions
to Legal or Covenant Defeasance.

The following shall be
conditions to the application of either Section 9.02 or 9.03 hereof to the
outstanding Notes.

In order to exercise either
Legal Defeasance or Covenant Defeasance:

(1)          the Company must irrevocably
deposit with the Trustee, in trust, 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, in the opinion of a nationally recognized
investment bank, appraisal firm or firm of independent public accountants, to
pay the principal and Aggregate Accreted Principal Amount of, and interest and
remium and Liquidated Damages, if any, on, the outstanding Notes on the stated
date for payment thereof;

(2)          in the case of an election
under Section 9.02 hereof, the Company will have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee
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 will
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 same amounts, in
the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

(3)          in the case of an election
under Section 9.03 hereof, the Company will have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee
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;

(4)          no Default or Event of
Default will have occurred and be continuing 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, insofar as Section 7.01(9) or 7.01(10) hereof is
concerned, at any time in the period ending on the ninety-first (91st) day
after the date of deposit and the deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company or a Guarantor is a party or by which the Company or a Guarantor is
bound;

(5)          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

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(other than this Indenture)
to which the Company or any of its Subsidiaries is a party or by which the
Company or any of its Subsidiaries is bound;

(6)          the Company will have
delivered to the Trustee an Officer’s 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 and its Subsidiaries or with the intent of
defeating, hindering, delaying or defrauding any creditors of the Company and
its Subsidiaries or others; and

(7)          the Company will have
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel,
each stating that all conditions precedent relating to Legal Defeasance or
Covenant Defeasance have been complied with.

Section 9.05.                         Deposited
Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.

Subject to Section 9.06
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 9.05, the “Trustee”) pursuant to
Section 9.04 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 and Aggregate Accreted Principal Amount,
premium and 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 and Guarantors
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 9.04 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 9
to the contrary notwithstanding, the Trustee shall deliver or pay to the
Company from time to time upon the request of the Company any money or
non-callable Government Securities held by it as provided in Section 9.04
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 9.04(a)
hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

The Collateral will be
released from the Lien securing the Notes, as provided under Section 11.04
hereof, upon a Legal Defeasance or Covenant Defeasance in accordance with the
provisions described in this Article 9.

 

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Section 9.06.                         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 and Aggregate Accreted Principal Amount of, and
interest or premium and Liquidated Damages, if any, on, any Note and remaining
unclaimed for two years after such principal and Aggregate Accreted Principal
Amount, and interest or premium and Liquidated Damages, if any, has become due
and payable shall be paid to the Company on its request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note shall
thereafter 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 thirty (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 9.07.                         Reinstatement.

If the Trustee or Paying
Agent is unable to apply any U.S. dollars or non-callable Government Securities
in accordance with Section 9.02 or 9.03 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 and the Guarantors’ obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 9.02 or 9.03 hereof until such time as the Trustee or Paying Agent
is permitted to apply all such money in accordance with Section 9.02 or
9.03 hereof, as the case may be; provided, however,
that, if the Company or any Guarantor makes any payment of principal or
Aggregate Accreted Principal Amount of, premium or 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
10.

AMENDMENT, SUPPLEMENT AND WAIVER

Section 10.01.                  Without Consent
of Holders of Notes.

Notwithstanding
Section 10.02 of this Indenture, the Company, the Guarantors and the
Trustee may amend or supplement this Indenture, any Collateral Agreement, the
Notes and the Note Guarantees without the consent of any Holder:

(1)          to cure any ambiguity,
defect or inconsistency;

(2)          to provide for uncertificated
Notes in addition to or in place of certificated Notes;

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(3)          to provide for the
assumption of the obligations of the Company or any Guarantor to Holders in the
case of a merger or consolidation or sale of all or substantially all of the
Company’s or any Guarantor’s assets in accordance with the provisions of this
Indenture;

(4)          to effect the release of a
Guarantor from its Note Guarantee and the termination of such Note Guarantee,
all in accordance with the provisions of this Indenture governing such release
and termination;

(5)          to add any Note Guarantee or
to secure the Notes or any Note Guarantee;

(6)          to make any change that
would provide additional rights or benefits to the Holders or that does not
adversely affect the legal rights hereunder or under the Notes, the Note
Guarantees or any Collateral Agreement of any Holder;

(7)          to comply with requirements
of the SEC in order to effect or maintain the qualification of this Indenture
under the TIA;

(8)          to provide for the issuance
of Additional Notes in accordance with the limitations set forth in this
Indenture; or

(9)          to provide for a successor
trustee in accordance with the provisions of this Indenture.

Upon the request of the
Company accompanied by a Board Resolution authorizing the execution of any such
amended or supplemental Indenture, and upon receipt by the Trustee of the
documents described in Section 8.02 hereof, the Trustee shall join with
the Company and the Guarantors in the execution of any amended or supplemental
Indenture authorized or permitted by the terms of this 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 affects its own rights, duties or immunities under
this Indenture or otherwise.

Section 10.02.                  With Consent of
Holders of Notes.

Except as provided below in
this Section 10.02, the Company, the Guarantors and the Trustee may amend
or supplement this Indenture, any Collateral Agreement, the Notes and the Note
Guarantees with the consent of the Holders of at least a majority in aggregate
principal amount of the Notes (including Additional Notes, if any) then
outstanding voting as a single class (including consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes and Note
Guarantees), and, subject to Sections 7.04 and 7.07 hereof, any existing
Default or Event or Default (other than a Default or Event of Default in the
payment of the principal and Aggregate Accreted Principal Amount of, premium
and 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, any Collateral Agreement or the Notes and
Note Guarantees may be waived with the consent of the Holders of a majority in
aggregate principal amount of the then outstanding Notes (including Additional
Notes, if any)

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voting as a single class (including consents obtained
in connection with a tender offer or exchange offer for, or purchase of, the
Notes).

Upon the request of the
Company accompanied by a Board Resolution 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 8.02 hereof, the Trustee shall join with the Company in the
execution of such amended or supplemental Indenture, the Notes, the Note
Guarantees or any Collateral Agreement unless such amended or supplemental
Indenture directly 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 10.02 to approve the
particular form of any proposed amendment, supplement 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, Notes, Note Guarantees or Collateral Agreement or waiver.

In determining whether the
Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent under this Indenture, Notes owned by the Company,
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company, shall be considered as
though not outstanding; provided, however, that no Holder shall be deemed to be directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company solely by reason of ownership of such Notes.  A change in a defined term used in this
Section 10.02 shall be deemed to be a change to this Section 10.02.

Subject to Sections 7.04 and
7.07 hereof, the Holders of a majority in aggregate principal amount of the
Notes (including Additional Notes, if any) then outstanding voting as a single
class may waive compliance by the Company, the Guarantors or the Trustee in a
particular instance with any provision of this Indenture, any Collateral Agreement,
the Notes or the Note Guarantees. 
However, without the consent of each Holder affected, an amendment,
supplement or waiver under this Section 10.02 may not (with respect to any
Notes held by a non-consenting Holder):

(1)          reduce the aggregate
principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

(2)          reduce the principal or
Aggregate Accreted Principal Amount of or change the fixed maturity of any Note
or alter or waive any of the provisions with respect to the redemption of the
Notes;

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(3)          reduce the rate of or change
the time for payment of interest, including default interest, on any Note;

(4)          waive a Default or Event of
Default in the payment of principal or Aggregate Accreted Principal Amount of,
or interest on, or premium, if any, 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 (including Additional Notes, if
any) and a waiver of the payment default that resulted from such acceleration);

(5)          make any Note payable in
money other than that stated in the Notes;

(6)          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 or Aggregate Accreted Principal
Amount of, or interest on, or premium, if any, on, the Notes;

(7)          release any Collateral from
the Liens of the pledge and security agreements, except as contemplated by the
pledge and security agreements;

(8)          waive a redemption payment
or mandatory redemption with respect to any Notes;

(9)          adversely affect the
conversion rights of the Holders set forth in Article 4 hereof;

(10)    release any Guarantor from
any of its obligations under its Note Guarantee or this Indenture, except in
accordance with the terms of this Indenture; or

(11)          make any change in Section
7.04 or 7.07 hereof or in the preceding provisions relating to amendment,
supplement and waiver.

Section 10.03.                  Compliance with
Trust Indenture Act.

Every amendment or
supplement to this Indenture, the Notes, the Note Guarantees or the Collateral
Agreements shall be set forth in an amended or supplemental Indenture that
complies with the TIA as then in effect.

Section 10.04.                  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 amendment,
supplement or waiver becomes effective. 
An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

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Section 10.05.                  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 (and accompanying Note Guarantees)
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 10.06.                       Trustee to
Sign Amendments, etc.

The Trustee or the
Collateral Agent, as applicable, shall sign any amendment or supplement to this
Indenture, any Collateral Agreement, the Notes or the Note Guarantees
authorized pursuant to this Article 10 if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee
or the Collateral Agent, as applicable. 
The Company and Guarantors may not sign an amendment or supplement to
this Indenture, any Collateral Agreement, the Notes or the Note Guarantees
until the Board of Directors of the Company or the Guarantor, as applicable,
approves it.  In executing any amendment
or supplement to this Indenture, any Collateral Agreement, the Notes or the
Note Guarantees, the Trustee or the Collateral Agent, as applicable, shall be
entitled to receive and (subject to Section 8.01 hereof) shall be fully
protected in relying upon, in addition to the documents required by
Section 14.04 hereof, an Officer’s Certificate and an Opinion of Counsel
stating that the execution of such amendment or supplement to this Indenture,
any Collateral Agreement, the Notes or the Note Guarantees is authorized or
permitted by this Indenture.

ARTICLE 11.

COLLATERAL AND SECURITY

Section 11.01.                  Collateral Agreements.

(a)             The
due and punctual payment of the principal of and interest, if any, on the Notes
and the Note Guarantees when and as the same shall be due and payable, whether
on an interest payment date, at maturity, by acceleration, repurchase,
redemption or otherwise, and interest on the overdue principal of and interest
(to the extent permitted by law), if any, on the Notes and the Note Guarantees
and performance of all other obligations of the Company and the Guarantors to
the Holders, the Trustee or the Collateral Agent under this Indenture, the
Notes, the Note Guarantees and the Collateral Agreements, according to the
terms hereunder or thereunder, shall be secured as provided in the Collateral
Agreements.  Each Holder, by its
acceptance thereof, consents and agrees to the terms of the Collateral
Agreements and the Intercreditor Agreement (including, without limitation, the
provisions providing for foreclosure and release of the Collateral) as the same
may be in effect or may be amended from time to time in accordance with their
terms and authorizes and directs each of the Collateral Agent and the Trustee,
as the case may be, to enter into the Collateral Agreements and to perform its
obligations and exercise its rights thereunder in accordance therewith.  The Company and the Guarantors shall deliver
to the Trustee copies of all documents delivered to the Collateral Agent
pursuant to any Collateral Agreements, and shall do or cause to be done all
such acts and things

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as may be necessary or proper, or that the Collateral
Agent from time to time may request, or as may be required by the provisions of
any Collateral Agreement, to assure and confirm to the Trustee and the
Collateral Agent that the Collateral Agent holds, for the benefit of itself,
the Trustee and the Holders, duly created and perfected Note Liens upon the
Collateral (including any After-Acquired Property), in each case, as
contemplated hereby, by any Collateral Agreements or any part thereof, as from
time to time constituted, so as to render the same available for the security
and benefit of this Indenture, the Notes and the Note Guarantees secured
hereby, according to the intent and purposes herein expressed.  The Company shall take, or shall cause its
Subsidiaries to take, upon request of the Trustee or the Collateral Agent, any
and all actions reasonably required to cause the Collateral Agreements to
create and maintain, as security for the Obligations of the Company and the
Guarantors hereunder, a valid and enforceable perfected first priority Lien in
and on all the Collateral and the Escrow Account, in favor of the Collateral
Agent and the Trustee, as the case may be, for the benefit of the Collateral
Agent, the Trustee and the Holders and other Indebtedness subject to the
Collateral Agreements superior to and prior to the rights of all third Persons and
subject to no other Liens other than Permitted Liens.  The Company and the Guarantors hereby agree
that the Collateral Agent shall hold the Collateral in trust for the benefit of
itself, the Trustee and the Holders, in each case pursuant to the terms of the
Collateral Agreements and the Intercreditor Agreement.

(b)             The
Company and the Guarantors agree to record and file, at its or their own
expense, financing statements (and continuation statements when applicable)
with respect to the Collateral now existing or hereafter created meeting the
requirements of applicable law in such manner and in such jurisdictions as are
necessary to perfect, and maintain the perfection of, the Note Liens, and
deliver a file stamped copy of each such financing statement or other evidence
of filing to the Trustee and the Collateral Agent, promptly.  Neither the Trustee nor the Collateral Agent
shall be under any obligation whatsoever to file such financing or continuation
statements or to make any other filing under the UCC in connection therewith.

(c)             The
Company and the Guarantors shall pledge as additional Collateral all
After-Acquired Property, subject to Permitted Liens.  The Company and the Guarantors shall also use
all commercially reasonable efforts to ensure that any material contract or
agreement relating to After-Acquired Property will not contain provisions that
would impair or prevent the creation of a security interest therein or result
in such contract or After-Acquired Property being excluded from the Collateral.

(d)             The
Trustee and each Holder, by accepting the Notes and the Note Guarantees,
acknowledges that, as more fully set forth in the Collateral Agreements and the
Intercreditor Agreement, the Collateral as now or hereafter constituted shall
be held for the benefit of all the Holders, the Collateral Agent and the
Trustee, and that the Lien of the Collateral Agreements in respect of the
Trustee, the Collateral Agent and the Holders is subject to and qualified and
limited in all respects by the Collateral Agreements and the Intercreditor
Agreement and actions that may be taken thereunder.

Section 11.02.                  Recording and Opinions.

(a)             At
the time of execution and delivery of this Indenture, the Company shall furnish
or cause to be furnished to the Trustee Opinion(s) of Counsel substantially in
the form of

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the Opinion of Counsel delivered on the Original Issue
Date to the Initial Purchasers of the Notes (or the Trustee shall be permitted
to rely on such Opinion(s) of Counsel).

(b)             Promptly
but in no event later than thirty (30) days after the execution and delivery of
this Indenture, the Company shall furnish or cause to be furnished to the
Trustee Opinion(s) of Counsel required by TIA Section 314(b)(1) and thereafter
Opinion(s) of Counsel required by TIA Section 314(b)(2).

(c)             The
Company shall otherwise comply with the provisions of TIA §314(b).

Section 11.03.                  Agreements Requiring Application of Proceeds of Collateral.

Neither the Company nor any
of its Restricted Subsidiaries shall enter into any agreement that requires the
proceeds received from any sale of Collateral to be applied to repay, redeem,
defease or otherwise acquire or retire any debt of any Person, other than as
permitted by this Indenture, the Notes, the Note Guarantees, the Collateral Agreements
and the Intercreditor Agreement.

Section 11.04.                  Release of Collateral.

(a)             Subject
to subsections (b), (c), (d) and (e) of this Section 11.04, Collateral
shall automatically be released from the Lien and security interest created by
the Collateral Agreements at any time or from time to time in accordance with
the provisions of the Collateral Agreements or as provided hereby.  In addition, upon the request of the Company
pursuant to an Officer’s Certificate and Opinion of Counsel certifying that all
conditions precedent hereunder have been met and stating whether or not such
release is in connection with an Asset Sale (at the sole cost and expense of
the Company and without any recourse, representation or warranty), the Trustee
or the Collateral Agent, as the case may be, shall release Collateral that is
sold, conveyed or disposed of in compliance with the provisions of this
Indenture; provided, that if such sale, conveyance
or disposition constitutes an Asset Sale, the Company shall apply the Net Proceeds
in accordance with Section 5.10 hereof. 
Upon receipt of such Officer’s Certificate and Opinion of Counsel, the
Collateral Agent shall, at the sole cost and expense of the Company and without
recourse, representation or warranty, execute, deliver or acknowledge any
necessary or proper instruments of termination, satisfaction or release to
evidence the release of any Collateral permitted to be released pursuant to
this Indenture or the Collateral Agreements.

(b)             The
Note Liens upon the Collateral will no longer secure the Notes or any other
Note Obligations, and the right of the Holders to the benefits and proceeds of
the Note Liens on the Collateral will terminate and be discharged
automatically:

(i)            upon satisfaction
and discharge of this Indenture as set forth under Article 13 hereof;

(ii)           upon a Legal
Defeasance or Covenant Defeasance of the Notes under this Indenture as set
forth under Article 9 hereof;

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(iii)          upon payment in
full and discharge of all Notes outstanding under this Indenture and all Note
Obligations that are outstanding, due and payable under this Indenture at the
time the Notes are paid in full and discharged;

(iv)          in whole or in part,
with the consent of the Holders in accordance with the provisions of this
Indenture described under Article 10 hereof; or

(v)           to the extent not
otherwise terminated and discharged, with respect to any asset that is or
becomes an Excluded Asset.

(c)             No
Collateral shall be released from the Liens and security interest created by
the Collateral Agreements pursuant to the provisions of the Collateral
Agreements unless (i) there shall have been delivered to the Collateral Agent
the Officer’s Certificate and Opinion of Counsel required by this
Section 11.04 and (ii) the Collateral Agent and the Trustee have received
all documentation, if any, that may be required by the TIA.  In connection with any release of Collateral,
the Collateral Agent will promptly execute any release documentation with
respect thereto reasonably requested by the Company.  Upon the payment in full of all Note
Obligations of the Company under this Indenture and the Notes, or upon Legal
Defeasance, the Trustee shall, at the request and sole cost and expense of the
Company, deliver a certificate to the Collateral Agent stating that such Note
Obligations have been paid in full, and instruct the Collateral Agent to
release the Liens pursuant to this Indenture and the Collateral Agreements.

(d)             At
any time when a Default or Event of Default shall have occurred and be
continuing and the maturity of the Notes shall have been accelerated (whether
by declaration or otherwise) and the Trustee shall have delivered a notice of
acceleration to the Collateral Agent, no release of Collateral pursuant to the
provisions of the Collateral Agreements shall be effective as against the
Holders.

(e)             The
release of any Collateral from the terms of this Indenture and the Collateral
Agreements shall not be deemed to impair the security under this Indenture in
contravention of the provisions hereof if and to the extent the Collateral is
released pursuant to the terms hereof. 
To the extent applicable, the Company shall cause TIA § 313(b),
relating to reports, and TIA § 314(d), relating to the release of property
or securities from the Lien and security interest of the Collateral Agreements
and relating to the substitution therefor of any property or securities to be
subjected to the Lien and security interest of the Collateral Agreements, to be
complied with.  Any certificate or
opinion required by TIA § 314(d) may be made by an Officer of the Company
except in cases where TIA § 314(d) requires that such certificate or
opinion be made by an independent Person, which Person shall be an independent
engineer, appraiser or other expert selected or approved by the Trustee and the
Collateral Agent in the exercise of reasonable care.

Section 11.05.                  Certificates of the Company.

The Company shall furnish to
the Trustee and the Collateral Agent, prior to each proposed release of
Collateral pursuant to any Collateral Agreements, (i) all documents required by
TIA §314(d) and (ii) an Opinion of Counsel, which may be rendered by internal
counsel to the Company, to the effect that such accompanying documents
constitute all documents required by TIA §314(d).  The Trustee may, to the extent permitted by
Sections 8.01 and 8.02 hereof,

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accept as conclusive evidence of compliance with the
foregoing provisions the appropriate statements contained in such documents and
such Opinion of Counsel.

Section 11.06.                  Certificates of the Trustee.

In the event that the
Company wishes to release Collateral in accordance with the Collateral
Agreements and has delivered the certificates and documents required by the
Collateral Agreements and Sections 11.03 and 11.04 hereof, the Trustee shall
determine whether it has received all documentation required by TIA
§ 314(d) in connection with such release and, based on such determination
and the Opinion of Counsel delivered pursuant to Section 11.05 hereof,
shall deliver a certificate to the Collateral Agent setting forth such
determination.

Section 11.07.                  Authorization of Actions to Be Taken by the Trustee Under the
Collateral Agreements.

Subject to the provisions of
Section 8.01 and 8.02 hereof, and to the Collateral Agreements and the
Intercreditor Agreement, each of the Trustee or the Collateral Agent may, in
its sole discretion and without the consent of the Holders, on behalf of the
Holders, take all actions it deems necessary or appropriate in order to (1)
enforce any of the terms of the Collateral Agreements and the Intercreditor
Agreement and (2) collect and receive any and all amounts payable in respect of
the Collateral in respect of the Obligations of the Company and the Guarantors
hereunder and thereunder.  Subject to the
provisions of the Collateral Agreements and the Intercreditor Agreement, the
Trustee and the Collateral Agent shall each have power to institute and
maintain such suits and proceedings as it may deem expedient to prevent any
impairment of the Collateral by any acts that may be unlawful or in violation
of the Collateral Agreements, the Intercreditor Agreement or this Indenture,
and such suits and proceedings as the Trustee or the Collateral Agent may deem
expedient to preserve or protect its interests and the interests of the Holders
in the Collateral (including power to institute and maintain suits or
proceedings to restrain the enforcement of or compliance with any legislative
or other governmental enactment, rule or order that may be unconstitutional or
otherwise invalid if the enforcement of, or compliance with, such enactment,
rule or order would impair the security interest hereunder or be prejudicial to
the interests of the Holders, the Collateral Agent or the Trustee).

Section 11.08.                  Authorization of Receipt of Funds by the Trustee Under the
Collateral Agreements.

The Trustee is authorized to
receive any funds for the benefit of the Holders distributed under the
Collateral Agreements, and to make further distributions of such funds to the
Holders according to the provisions of this Indenture.

Section 11.09.                  Relative Rights.

Nothing in the Note
Documents will:

(1)          impair, as between the
Company and the Holders, the Company’s obligations to pay the principal of,
premium, if any, and interest on (including Liquidated

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Damages, if any), the Notes
in accordance with the terms of the Notes or any of the Company’s other
obligations or any Guarantor’s obligations;

(2)          affect the relative rights
of Holders as against any of the Company’s or the Guarantors’ other creditors
(other than holders of Working Capital Facility Liens and Pari Passu
Indebtedness Liens);

(3)          restrict the right of any
Holder to sue for payments that are then due and owing (but not enforce any
judgment in respect thereof against any Collateral to the extent specifically prohibited
by the Intercreditor Agreement);

(4)          restrict or prevent any
Holder, the Trustee or the Collateral Agent from exercising any of its rights
or remedies upon a Default or Event of Default not specifically restricted or
prohibited by the Intercreditor Agreement; or

(5)          restrict or prevent any
Holder, the Trustee or the Collateral Agent from taking any lawful action in an
insolvency or liquidation proceeding not specifically restricted or prohibited
by the Intercreditor Agreement.

Section
11.10.                  Limitation on
Duty of Trustee and Collateral Agent as to Collateral; Indemnification.

(a)             Beyond
the exercise of reasonable care in the custody thereof, neither the Trustee nor
the Collateral Agent shall have any duty as to any Collateral in its possession
or control or in the possession or control of any agent or bailee or any income
thereon or as to preservation of rights against prior parties or any other
rights pertaining thereto and neither the Trustee nor the Collateral Agent
shall be responsible for filing any financing or continuation statements or
recording any documents or instruments in any public office at any time or
times or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral.  The Trustee
and Collateral Agent shall be deemed to have exercised reasonable care in the
custody of the Collateral in its or their possession if the Collateral is
accorded treatment substantially equal to that which it or they accord their
own property and shall not be liable or responsible for any loss or diminution
in the value of any of the Collateral, by reason of the act or omission of any
carrier, forwarding agency or other agent or bailee selected by the Trustee or
the Collateral Agent in good faith.

(b)             Neither
the Trustee nor the Collateral Agent shall be responsible for the existence,
genuineness or value of any of the Collateral or for the validity, perfection,
priority or enforceability of the Note Liens in any of the Collateral, whether
impaired by operation of law or by reason of any action or omission to act on
its or their part hereunder, except to the extent such action or omission
constitutes gross negligence, bad faith or willful misconduct on the part of
the Trustee or the Collateral Agent, as applicable, for the validity or
sufficiency of the Collateral or any agreement or assignment contained therein,
for the validity of the title of the Company to the Collateral, for insuring
the Collateral or for the payment of taxes, charges, assessments or Note Liens
upon the Collateral or otherwise as to the maintenance of the Collateral.

(c)             The
Company shall indemnify the Collateral Agent as set forth in the Collateral
Agreements.

 

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ARTICLE 12.

NOTE GUARANTEES

Section 12.01.                  Guarantee.

Subject to this Article 12,
each of the Guarantors hereby, jointly and severally, unconditionally
guarantees to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Indenture, the Notes or the obligations of the
Company hereunder or thereunder, that: 
(a) the principal and Aggregate Accreted Principal Amount of, premium
and Liquidated Damages and interest on the Notes will be promptly paid in full
when due, whether at maturity, by acceleration, redemption, repurchase or
otherwise, and interest on the overdue principal and Aggregate Accreted
Principal Amount of and premium and Liquidated Damages and interest on the
Notes, if any, if lawful, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
Stated Maturity, by acceleration or otherwise. 
Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Guarantors shall be jointly and
severally obligated to pay the same immediately, whether or not such failure to
pay has become an Event of Default which could cause acceleration pursuant to
Article 7 hereof.  Each Guarantor agrees
that this is a guarantee of payment and not a guarantee of collection.

The Guarantors hereby agree
that their obligations hereunder shall be unconditional, irrespective of the
validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
Guarantor.  To the extent permitted by
applicable law, each Guarantor hereby waives and relinquishes diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and
covenant that this Note Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

If any Holder or the Trustee
is required by any court or otherwise to return to the Company, the Guarantors
or any custodian, trustee, liquidator or other similar official acting in
relation to either the Company or the Guarantors, any amount paid by either to
the Trustee or such Holder, this Note Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.

To the extent permitted by
applicable law, each Guarantor agrees that it shall not be entitled to any
right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed
hereby.  Each Guarantor further agrees
that, as between the Guarantors, on the one hand, and the Holders and the
Trustee, on the other hand, to the extent permitted by applicable law (x) the
maturity of the obligations

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guaranteed hereby may be accelerated as provided in
Article 7 hereof for the purposes of this Note Guarantee, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the obligations guaranteed hereby, and (y) in the event of any declaration
of acceleration of such obligations as provided in Article 7 hereof, such
obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantors for the purpose of this Note Guarantee.  The Guarantors shall have the right to seek
contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Note Guarantee.

Section 12.02.                  Limitation on Guarantor Liability.

Each Guarantor, and by its
acceptance of Notes, each Holder, hereby confirms that it is the intention of
all such parties that the Note Guarantee of such Guarantor not constitute a
fraudulent transfer or conveyance for purposes of the Bankruptcy Code, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law to the extent applicable to any Note
Guarantee.  To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of such Guarantor will be limited to the maximum amount as
will, after giving effect to such maximum amount and all other contingent and
fixed liabilities of such Guarantor that are relevant under such laws, and
after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 12, result in the
obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

Section 12.03.                  Execution and
Delivery of Note Guarantee.

To evidence the Note
Guarantee set forth in Section 12.01 hereof, each Guarantor agrees that a
notation of such Note Guarantee substantially in the form of Exhibit E hereto will
be endorsed by an Officer of such Guarantor on each Note authenticated and
delivered by the Trustee and that this Indenture will be executed on behalf of
such Guarantor by one of its Officers.

Each Guarantor hereby agrees
that its Note Guarantee set forth in Section 12.01 hereof shall remain in
full force and effect notwithstanding any failure to endorse on each Note a
notation of such Note Guarantee.

If an Officer whose
signature is on this Indenture no longer holds that office at the time the
Trustee authenticates the Note, the Note Guarantee shall be valid nevertheless.

The delivery of any Note by
the Trustee, after the authentication thereof hereunder, shall constitute due
delivery of the Note Guarantee set forth in this Indenture on behalf of the Guarantors.

In the event that the
Company or any of its Restricted Subsidiaries creates or acquires any Domestic
Restricted Subsidiary after the date of this Indenture, if required by Section
5.18 hereof, the Company and the Guarantors will cause such Domestic Restricted
Subsidiary to comply with the provisions of Section 5.18 hereof and this
Article 12, to the extent applicable.

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Section 12.04.                  Releases Following Sale of Assets.

In the event of a sale or
other disposition of all of the assets of any Guarantor, by way of merger,
consolidation or otherwise, or a sale or other disposition of all the Capital
Stock of any Guarantor, in each case to a Person that is not (either before or
after giving effect to such transactions) the Company or a Restricted Subsidiary
of the Company, then such Guarantor (in the event of a sale or other
disposition, by way of merger, consolidation or otherwise, of all of the
Capital Stock of such Guarantor) or the corporation acquiring the property (in
the event of a sale or other disposition of all or substantially all of the
assets of such Guarantor) shall automatically be released and relieved of any
obligations under its Note Guarantee; provided, however,
that such sale or other disposition (including by way of merger, consolidation
or otherwise) shall be made in compliance with the provisions of this Indenture
applicable thereto, including Section 5.10 and Article 6 hereof.  Upon delivery by the Company to the Trustee
of an Officer’s Certificate and an Opinion of Counsel to the effect that such
sale or other disposition was made by the Company in accordance with the
provisions of this Indenture, including Section 5.10 and Article 6 hereof, the
Trustee shall execute any documents reasonably required in order to evidence
the release of any Guarantor from its obligations under its Note Guarantee.

Upon designation of any
Guarantor as an Unrestricted Subsidiary in accordance with the terms of this
Indenture, such Guarantor will be release and relieved of any obligations under
its Note Guarantee.

Any Guarantor not released
from its obligations under its Note Guarantee shall remain liable for the full
amount of principal and Aggregate Accreted Principal Amount of and interest on
the Notes and for the other obligations of any Guarantor under this Indenture
as provided in this Article 12.

ARTICLE 13.

satisfaction and discharge

Section 13.01.                  Satisfaction and
Discharge.

This Indenture will be
discharged and will cease to be of further effect (except as to surviving
rights or registration or exchange of the Notes, as expressly provided for in
this Indenture) as to all Notes issued hereunder, when:

(1)          either:

A.                         all Notes that
have been authenticated, except lost, stolen or destroyed Notes that have been
replaced or paid and Notes for whose payment money has theretofore been
deposited in trust and thereafter repaid to the Company, have been delivered to
the Trustee for cancellation; or

B.                           all Notes that
have not been delivered to the Trustee for cancellation have become due and
payable by reason of the delivery of a notice of redemption or otherwise or
will become due and payable within one year and the Company or any Guarantor
has irrevocably deposited or caused to be

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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 therof, 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 delivered to the Trustee for cancellation
for principal and Aggregate Accreted Principal Amount, interest and premium and
Liquidated Damages, if any, to the date of maturity or redemption;

(2)          no Default or Event of
Default has occurred and is continuing on the date of such deposit or shall
occur as a result of such deposit (other than a Default or Event of Default
resulting from the borrowing of funds to be applied to such deposit) and the
deposit will not result in a breach or violation of, or constitute a default
under, any material agreement or other instrument to which the Company or any
Guarantor is a party or by which the Company or any Guarantor is bound;

(3)          the Company or any Guarantor
has paid or caused to be paid all sums payable by it under this Indenture, the
Notes and the Note Guarantees; and

(4)          the Company has delivered
irrevocable instructions to the Trustee under this Indenture to apply the
deposited money toward the payment of the Notes at maturity or the redemption
date, as the case may be.

In addition, the Company
must deliver an Officer’s Certificate and an Opinion of Counsel to the Trustee
stating that all conditions precedent to satisfaction and discharge have been
satisfied.

Nothing in this Section
13.01 will be deemed to discharge those provisions of Section 8.07 hereof,
that, by their terms, survive the satisfaction and discharge of this Indenture.

Notwithstanding the
satisfaction and discharge of this Indenture, if money shall have been
deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the provisions of Section 13.02 and Section 9.06 hereof
shall survive.  Further, the Collateral
will be released from the Lien securing the Notes, as provided under Section
11.04 hereof, upon a satisfaction and discharge in accordance with the
provisions described in this Section 13.01.

Section 13.02.                  Application of Trust Money.

Subject to the provisions of
Section 9.06 hereof, all money deposited with the Trustee pursuant to
Section 13.01 hereof shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal and Aggregate Accreted Principal Amount (and premium
and Liquidated Damages, if any) and interest for whose payment such money has
been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.

If the Trustee or Paying
Agent is unable to apply any money or Government Securities in accordance with
Section 13.01 hereof by reason of any legal proceeding or by reason of any

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order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 13.01 hereof; provided that
if the Company has made any payment of principal and Aggregate Accreted
Principal Amount of, premium and Liquidated Damages, if any, or interest on any
Notes because of 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 or Government Securities held by the Trustee or Paying Agent.

ARTICLE 14.

MISCELLANEOUS

Section 14.01.                  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. 
If any provision hereof limits, qualifies or conflicts with a provision
of the TIA that is required under the TIA to be a part of and govern this
Indenture, the latter provision shall control. 
If any provision of this Indenture modifies or excludes any provision of
the TIA that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or excluded, as the case may
be.

Section 14.02.                  Notices.

Any notice or communication
by the Company, any Guarantor or the Trustee to the others is duly given if in
writing and delivered in Person or mailed by first class mail (registered or
certified, return receipt requested), telex, telecopier or overnight air
courier guaranteeing next day delivery, to the others’ address:

If to the Company and/or any Guarantor:

FiberTower Corporation

185 Berry Street, Suite 4800

San Francisco, CA 94107

Fax: 415-659-0007

Attention: Chief Financial Officer

With a copy (which shall not constitute
notice) to:

Andrews Kurth LLP

600 Travis Street, Suite 4200

Houston, TX 77002

Fax: 713-238-7111

Attention:  W. Mark Young, Esq.

If to the Trustee and/or Collateral Agent:

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Wells Fargo Bank, National Association

Corporate Trust Services

1445 Ross Avenue, 2nd Floor

Dallas, TX 75202-2812

Fax:  214-777-4086

Attention:  Patrick T. Giordano

The Company, any Guarantor
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 deemed to have been
duly given: at the time delivered by hand, if personally delivered; five (5)
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if telecopied; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery.

Any notice or communication
to a Holder shall be mailed by first class mail, certified or registered,
return receipt requested, or by overnight air courier guaranteeing next day
delivery 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 a notice or communication
is mailed in the manner provided above within the time prescribed, it is duly
given, whether or not the addressee receives it.

If the Company or a
Guarantor mails a notice or communication to Holders, it shall mail a copy to
the Trustee and each Agent at the same time.

Section 14.03.                  Communication by
Holders of Notes with Other Holders of Notes.

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 Guarantors, the Trustee, the Registrar and anyone else shall have
the protection of TIA § 312(c).

Section 14.04.                  Certificate and
Opinion as to Conditions Precedent.

Upon any request or
application by the Company or a Guarantor to the Trustee to take any action
under this Indenture, the Company or such Guarantor shall furnish to the
Trustee:

(a)           an
Officer’s Certificate in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 14.05
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 14.05 hereof)
stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied.

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Section 14.05.                  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:

(1)          a statement that the Person
making such certificate or opinion has read such covenant or condition;

(2)          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;

(3)          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

(4)          a statement as to whether or
not, in the opinion of such Person, such condition or covenant has been
satisfied.

Section 14.06.                  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.

Section 14.07.                  No Personal
Liability of Directors, Officers, Employees and Stockholders.

No past, present or future
director, officer, employee, incorporator or stockholder of the Company or any
Guarantor, as such, shall have any liability for any obligations of the Company
or such Guarantor under the Notes, the Note Guarantees, this Indenture or the
Collateral Agreements 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.  The waiver may not be effective to waive
liabilities under the federal securities laws.

Section 14.08.                  Governing Law.

THE INTERNAL LAW OF THE
STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE
NOTES AND THE NOTE GUARANTEES 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.

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Section 14.09.                  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 14.10.                  Successors.

All agreements of the
Company in this Indenture  and the
Collateral Agreements and the Notes shall bind its successors.  All agreements of the Trustee in this
Indenture and the Collateral Agreements shall bind its successors.  All agreements of each Guarantor in this
Indenture and the Collateral Agreements shall bind its successors, except as
otherwise provided by Section 12.04.

Section 14.11.                  Severability.

In case any provision in
this Indenture, the Notes or a Note Guarantee 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 14.12.                  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 14.13.                  Benefit of
Indenture.

Nothing in this Indenture or
in the Notes, express or implied, shall give to any Person, other than the
parties hereto, any Paying Agent, any Registrar and their successors and
assigns hereunder, and the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

Section 14.14.                  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]

 

 118

 

 

SIGNATURES

Dated
as of November 9, 2006

	
  

  	
  FiberTower Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas A.
  Scott

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Thomas A. Scott

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  

 

	
  

  	
  FiberTower Network
  Services Corp.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas A.
  Scott

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Thomas A. Scott

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  

 

	
  

  	
  FiberTower Solutions
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas A.
  Scott

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Thomas A. Scott

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  

 

	
  

  	
  ART Leasing Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas A.
  Scott

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Thomas A. Scott

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  

 

	
  

  	
  ART Leasing, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas A.
  Scott

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Thomas A. Scott

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  

 

	
  

  	
  Teligent Services
  Acquisition, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas A.
  Scott

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Thomas A. Scott

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Financial Officer

  

 

 

	
  

  	
  Wells Fargo Bank,
  National Association,as Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Patrick T. Giordano

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Patrick T. Giordano

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  

 

 

 

Exhibit A

[Face of Note]

CUSIP____________

9.00% Convertible Senior Secured Notes due 2012

	
  No. ___

  	
   

  	
  $____________

  
	
   

  	
   

  	
  (principal amount)

  

 

FiberTower
Corporation

promises
to pay to                                                                                                                                                                               

or
registered assigns, 

the
Aggregate Accreted Principal Amount of this Note

on
November 15, 2012.

Interest
Payment Dates:  May 15 and November 15

Record
Dates:  May 1 and November 1

Issue
Date:                                                            

 A-1
 

 

 

IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed.

Dated:                                                    

FiberTower
Corporation

By:                                                                                                          
          Name:  
          Title:

This is one of the Notes referred to

in the within-mentioned Indenture:

Wells Fargo Bank, National Association,
  as Trustee

By:                                                                                  
        Name:  
        Title:

 A-2
 

 

 

[Back of Note]

9.00% Convertible Senior Secured
Notes due 2012

THIS DEBT INSTRUMENT HAS
BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT WITHIN THE MEANING OF SECTION 1273 OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND THE TREASURY REGULATIONS
THEREUNDER.  CONTACT THE CHIEF FINANCIAL
OFFICER OF THE ISSUER AT 415-659-3500 FOR THE ISSUE PRICE, THE AMOUNT OF
ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE AND THE YIELD TO MATURITY OF THIS DEBT
INSTRUMENT.

 [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]

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

1.  INTEREST. 
FiberTower Corporation, a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Note at 9.00% per
annum from                                                              until maturity, and shall pay any Liquidated
Damages payable pursuant to the Indenture, this Note and Section 7 of the
Registration Rights Agreement referred to in the Indenture.

The Company will pay interest semi-annually in arrears on May 15 and
November 15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”).  Interest on this Note 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 May 15, 2007; and provided, further, that if no Default has occurred or is
continuing, then on any or all of the next four Interest Payment Dates after
the fourth Interest Payment Date, the Company may elect to make payments of
interest on this Note in Additional Notes in a principal amount equal to the
amount of interest payable on such Interest Payment Date; provided,
further, that if the Company elects to make any interest payment in
Additional Notes, (1) the interest rate applicable to this Note for the period
to which such interest payment relates shall be 2.0% higher than the interest
rate otherwise payable hereon on such Interest Payment Date, (2) the Company
shall deliver to the Trustee and to the Holders, at least twenty (20) days
prior to the record date for such Interest Payment Date, a written notice
setting forth the extent to which such interest payment will be made in the
form of Additional Notes, and (3) the Company shall deliver to the Trustee, no
later than one Business Day prior to such Interest Payment Date, an order to
authenticate and deliver such Additional Notes. 
Thereafter interest on this Note will only be payable in cash.  Any Additional Note will be identical to this
Note, except that interest on an Additional Note will begin to accrue from the
date it is issued.

 A-3
 

 

 

Pursuant
to the Escrow Agreement, the Company has deposited in the Escrow Account cash
or Government Securities that, upon maturity, will be equal to the amount  sufficient for the Company to fully pay the
initial four interest payments when due.

The
Company shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Code) on overdue principal or Aggregate Accreted Principal
Amount, if any, at the rate equal to 1.0% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; the Company shall
pay interest (including post-petition interest in any proceeding under any
Bankruptcy Code) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.  Interest will be computed on the basis of a
360 day year of twelve 30 day months.

2.  METHOD OF
PAYMENT.  The Company will pay interest on the Notes
(except defaulted interest) to the Persons who are registered Holders at the
close of business on the May 1 or November 1, as the case may be, preceding the
applicable 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 2.12 of the Indenture with respect to defaulted interest.  The Notes will be payable as to principal or
Aggregate Accreted Principal Amount, if any, of, premium and Liquidated
Damages, if any, and interest on, the Notes at the office or agency of the Paying
Agent maintained for such purpose by the Company, or, at the option of the
Company, payment of interest 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 or Aggregate Accreted Principal Amount of, and
interest and premium and Liquidate Damages, if any, on, all Notes, the Holders
of which shall have provided wire transfer instructions to the Company or the
Paying Agent.  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, CONVERSION AGENT, AND REGISTRAR.  Initially, Wells Fargo Bank,
National Association, as the Trustee under the Indenture, will act as Paying
Agent, Conversion Agent and Registrar. 
The Company may change any Paying Agent, Conversion Agent or Registrar
without notice to the Holders.  The
Company shall notify the Trustee in writing of the name and address of any
Agent not a party to the 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.

4.  INDENTURE
AND COLLATERAL AGREEMENTS.  The Company issued the Notes under an
Indenture, dated as of November 9, 2006 (the “Indenture”),
among the Company, the Guarantors party thereto 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 “Trust Indenture Act”). 
The Notes are subject to all such terms, and Holders are referred to the
Indenture and to the Trust Indenture 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 Initial Notes are secured obligations of the Company limited to
$402.5 million

 A-4
 

 

in aggregate principal amount.  The Notes are secured as provided in the
Collateral Agreements referred to in the Indenture.

5.  OPTIONAL REDEMPTION.  The
Notes are not redeemable at the Company’s option prior to November 15,
2010.  The Company may redeem the Notes,
at its option, in whole or in part at any time on or after November 15, 2010,
upon not less than thirty (30) nor more than sixty (60) days’ notice, at 100%
of the Aggregate Accreted Principal Amount, together with accrued and unpaid
interest, including Liquidated Damages, if any, thereon, up to the redemption
date; provided that for twenty (20) of the
preceding thirty (30) consecutive Trading Days, the Common Stock has had (1) a
Closing Sale Price at least equal to 1.50 times the then effective Conversion
Price and (2) a daily trading volume for each such Trading Day, when multiplied
by the Closing Sale Price for such Trading Day, which equals at least $8.0 million.  For so long as at least $215.0 aggregate
principal amount of the Notes remains outstanding, the Company may not redeem
more than 50% of the then outstanding principal amount of Notes in any ninety
(90)-day period.

6.  REDEMPTION
AT MATURITY.  Unless previously redeemed or converted, the
Company will redeem the Notes at 125.411% of their principal amount on November
15, 2012.

7.  MANDATORY
REDEMPTION.  Except as set forth in paragraph 8 below, the
Company shall not be required to make mandatory redemption payments with
respect to the Notes until maturity.

8.  REPURCHASE
AT OPTION OF HOLDER UPON A DESIGNATED EVENT.  If there shall occur a
Designated Event at any time prior to the maturity of the Notes, then each
Holder shall have the right, at such Holder’s option, to require the Company to
repurchase all of such Holder’s Notes, or any portion thereof that is a
multiple of $1,000 principal amount, for cash on a date designated by the
Company (the “Designated Event Repurchase Date”)
that is not less than twenty (20) nor more than thirty (30) days after the date
of the Designated Event Notice for such Designated Event at a repurchase price
equal to 101% of the Aggregate Accreted Principal Amount of the Notes to be
repurchased, plus accrued and unpaid interest, and Liquidated Damages, if any,
up to, but excluding, the Designated Event Repurchase Date.  Notwithstanding the foregoing, if a
Designated Event Repurchase Date falls after an interest payment record date
but on or prior to the corresponding Interest Payment Date, the Company will
pay the full amount of accrued and unpaid interest, and Liquidated Damages, if
any, on such Interest Payment Date to the Holder of record at the close of
business on the corresponding record date. 
Notwithstanding the foregoing, no Notes may be surrendered for
repurchase pursuant to Section 3.08 of the Indenture in connection with a
merger, consolidation or other transaction effected solely for the purpose of
changing the Company’s jurisdiction of incorporation to any other state within
the United States.

If the Company or any Restricted Subsidiary of the Company consummates
any Asset Sale, within five (5) days of each date when the aggregate amount of
Excess Proceeds exceeds $5.0 million, the Company will make an Asset Sale Offer
pursuant to Section 5.10 of the Indenture to all Holders and all holders of
other senior secured Indebtedness that is pari passu in
right of payment and as to security interests with the Notes with respect to
the assets that are the subject of such Asset Sale containing provisions
similar to those set forth in the Indenture with

 A-5
 

 

respect
to offers to purchase or redeem with the proceeds of sales of assets to
purchase the maximum amount of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds in accordance with the
procedures set forth in Section 3.09 of the Indenture.  The offer price for the Notes in any Asset
Sale Offer will be equal to 100% of the Aggregate Accreted Principal Amount of
the Notes, plus accrued and unpaid interest and Liquidated Damages, if any, to
the date of purchase, and will include the Holder’s Pro Rata Amount of the
amounts in the Escrow Account with respect to such Holder’s Notes that are
purchased, with the balance of the purchase price payable in cash. If any
Excess Proceeds remain after consummation of an Asset Sale Offer, the Company
may use those Excess Proceeds for any purpose not otherwise prohibited by the
Indenture.  If the Aggregate Accreted
Principal Amount of Notes and the amount of other pari passu Indebtedness
tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the
Trustee shall select the Notes and such other pari passu Indebtedness
to be purchased on a pro rata basis.  Upon completion of each Asset Sale Offer, the
amount of Excess Proceeds will be reset at zero.

9.  CONVERSION. 
Subject to and upon compliance with the provisions of Article 4 of the
Indenture, at the option of the Holder thereof, any portion of the principal
amount of this Note that is an integral multiple of $1,000 may be converted
into fully paid and non-assessable shares of Common Stock at the Conversion
Rate, determined as provided in the Indenture, in effect at the time of
conversion.  The Holder may surrender
Notes for conversion at the applicable Conversion Rate at any time after ninety
(90) days from the Original Issue Date until the close of business on the
Business Day immediately preceding the final maturity date of the Notes.

Upon surrendering any Note for conversion, the Holder of such Note
shall receive, in respect of each $1,000 principal amount of Notes: shares of
Common Stock at an initial conversion rate of 120.627 shares per $1,000
principal amount of Notes (the “Conversion Rate”),
which is based upon an initial Conversion Price of approximately $8.29 per
share.  If a Holder converts a Note on
any date when the Company is required to pay Liquidated Damages, the Conversion
Rate will be multiplied by 103%.  The
Conversion Rate (and Conversion Price) are subject to adjustment as described
in the Indenture.

If a Holder receives shares of Common Stock upon conversion of a Note,
such Holder will also receive the associated rights under any stockholder
rights plan that the Company may adopt, whether or not the rights have
separated from the Common Stock at the time of conversion unless, prior to
conversion, the rights have expired, terminated or been exchanged.

To convert a Note, a Holder must comply with the procedures for
conversion set out in Section 4.03 of the Indenture.  A Holder may convert a portion of a Note
equal to $1,000 or any integral multiple thereof.

In order to exercise the conversion right: (1) the Holder of any
Definitive Note to be converted must (i) complete and manually sign a notice of
conversion substantially in the form set forth on the reverse of this Note (the
“Conversion Notice”), (ii) deliver the
Conversion Notice and the Definitive Note (and the Certificate of Conversion
& Restricted Transfer, if applicable) to the Conversion Agent and the
Company, and (iii) if required, furnish appropriate endorsements and transfer
documents; or (2) the holder of beneficial interests in any Global Note to be
converted must comply with the Applicable Procedures to cause the beneficial
interests in

 A-6
 

 

such
Global Note to be delivered to the Conversion Agent.  In the case of either (1) or (2), the Holder
of a Definitive Note or holder of beneficial interests in a Global Note will,
if required, pay all transfer or similar taxes and, if required pursuant to
Section 4.03(b) of the Indenture, pay funds equal to the interest payable on
the next Interest Payment Date.

The date on which a Holder of a Definitive Note or holder of a
beneficial interest in a Global Note completes the requirements of Section
4.03(a) of the Indenture shall be deemed to be the date of conversion (the “Conversion Date”) for purposes of Article 4 of the
Indenture.  On and after the Conversion
Date, the conversion by such Holder or holder, as set forth in the Conversion
Notice, shall become irrevocable.

In case of a transaction described in clause (3) of the definition of
Fundamental Change in the Indenture, solely upon receipt by the Conversion
Agent of any Holder’s Conversion Notice on or subsequent to the effective date
of such Fundamental Change and prior to the forty-fifth (45th) day following
such effective date (or, if earlier and to the extent applicable, the close of
business on the second Business Day immediately preceding the Designated Event
Repurchase Date (as specified in the Designated Event Notice)), the Company
shall pay such Holder a make-whole premium within twenty (20) days after the
consummation of such Designated Event. 
This make-whole premium will be equal to the present value on the
effective date of such Fundamental Change of all required interest payments on
the Notes as if paid in cash from the effective date of such Fundamental Change
through November 15, 2010 (including any accrued but unpaid interest), computed
using a discount rate equal to the Reinvestment Yield (the “Designated
Event Make-Whole Amount”). 
Holders will only be eligible to receive the Designated Event Make-Whole
Amount, unless otherwise converting under the voluntary conversion provision
described in Article 4 of the Indenture and eligible for the Conversion
Make-Whole Amount described in Section 4.10 of the Indenture, if the Closing
Sale Price of the Common Stock immediately following the announcement of such
Fundamental Change is equal to or greater than the Closing Sale Price of the
Common Stock on the Original Issue Date and less than three times the Closing
Sale Price of the Common Stock on the Original Issue Date. Such payment shall
include the Holder’s Pro Rata Amount of the amounts in the Escrow Account with
respect to such Holder’s Notes that are converted in the event of conversion
prior to November 15, 2008, with the balance of the payment payable, at the
Company’s option, in (1) cash, (2) shares of Common Stock at a 5.0% discount to
the Current Market Price; provided that
the issuance of shares of Common Stock in payment of this make-whole premium
will be subject to the Nasdaq Marketplace rules, which may require shareholder
approval in certain circumstances, (3) the consideration received triggering
such Designated Event, or (4) a combination of cash, shares and such
consideration.

In the event a Holder elects to exercise its right to convert its Notes
pursuant to Article 4 of the Indenture, and such election occurs prior to
November 15, 2009, such Holder shall be entitled to receive, in addition to any
shares of Common Stock, securities, cash and other property such Holder is
entitled to receive upon conversion, a make-whole premium.  This amount will consist of the present value
of all required interest payments on the Notes as if paid in cash from the
Conversion Date through November 15, 2009 (including any accrued but unpaid
interest), computed using a discount rate equal to the Reinvestment Yield
determined on the Conversion Date (the “Conversion Make-Whole
Amount”), provided that the Conversion Make-Whole Amount shall in no
event be greater than $130.277 per $1,000 principal amount of Notes

 A-7
 

 

so
converted prior to such date.  The
Company shall have thirty (30) days from the Conversion Date to pay the
Conversion Make-Whole Amount.  Such
payment of the Conversion Make-Whole Amount shall include the Holder’s Pro Rata
Amount of the amounts in the Escrow Account with respect to such Holder’s Notes
that are converted in the event of conversion prior to November 15, 2008, with
the balance of the payment payable, at the Company’s option, in cash, shares of
Common Stock or a combination of cash and shares, provided that
the issuance of shares of Common Stock in payment of this Conversion Make-Whole
Amount will be subject to the Nasdaq Marketplace rules, which may require
stockholder approval in certain circumstances. 
Any such shares of Common Stock will be valued at a 5.0% discount to the
Current Market Price.

In the case of any
consolidation or merger of the Company with or into any other Person, any
merger of another Person with or into the Company (other than a merger that
does not result in any reclassification, conversion, exchange or cancellation
of outstanding shares of Common Stock) or any conveyance, sale or transfer of
all or substantially all of the assets of the Company, the Company or the
Person formed by such consolidation or resulting from such merger or which
acquires such assets, as the case may be, shall notify the Trustee and the
Holders at least ten (10) days prior to the record date for such transaction,
or if there is no record date, at least ten (10) Trading Days prior to the
anticipated effective date for such transaction.  The Company, or such successor, purchasing or
transferee corporation, as the case may be, as a condition precedent to such
consolidation, merger, conveyance, sale or transfer, shall execute and deliver
to the Trustee a supplemental indenture providing that the Holder of each Note
then outstanding shall have the right thereafter to convert Notes only into the
kind and amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale or transfer by a holder of the number
of shares of Common Stock into which such Notes might have been converted
immediately prior to such consolidation, merger, conveyance, sale or
transfer.  Such supplemental indenture
shall provide for adjustments of the Conversion Rate and Conversion Price which
shall be as nearly equivalent as may be practicable to the adjustments of the Conversion
Rate and Conversion Price provided for in Article 4 of the Indenture.  If, in the case of any such consolidation,
merger, conveyance, sale or transfer, the securities, cash and other property
receivable thereupon by a holder of Common Stock include shares of stock or
other securities and property of a Person other than the successor, purchasing
or transferee corporation, as the case may be, in such consolidation, merger,
conveyance or sale, then such supplemental indenture shall also be executed by
such other Person and shall contain such additional provisions to protect the
interests of the Holders as the Company’s Board of Directors shall reasonably
consider necessary by reason of the foregoing.

Notwithstanding
any other provision of this Note or the Indenture, in no event will the Company
issue more than an aggregate of 28,767,197 shares of Common Stock upon
conversion of the Notes and in payment of any make-whole premium obligations
unless the Company has previously received stockholder approval for issuances
of shares of Common Stock in excess of that number of shares in accordance
with, and to the extent required by, the Nasdaq Marketplace rules, and any
Holder who would otherwise be entitled to receive shares of Common Stock upon
such conversion of the Notes in excess of such number shall instead be entitled
to receive cash in an amount equal to the Current Market Price in lieu of each
share that such Holder would otherwise be entitled to receive in excess of such
number.  If the Company obtains
stockholder

 A-8
 

 

approval for issuances of
shares of Common Stock in excess of such number, to the extent required by the
Nasdaq Marketplace rules, the Company will have the option to either pay
Holders cash or issue shares of Common Stock upon such conversions and payments
of make-whole premiums.

10.  NOTICE OF
REDEMPTION.  At least thirty (30) days but not more than
sixty (60) days before a redemption date, the Company will 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, except that redemption notices
may be mailed more than sixty (60) days prior to a redemption date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction
and discharge of the Indenture pursuant to Articles 9 or 13 of the
Indenture.  Notes in denominations larger
than $1,000 may be repurchased in part but only in whole multiples of $1,000,
unless all of the Notes held by a Holder are to be repurchased.  On and after the redemption date, interest
ceases to accrue on Notes or portions thereof called for redemption.

11.  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.  Neither the Company nor the
Registrar will be required to (1) issue, register the transfer of or exchange
any Notes during a period beginning at the opening of business fifteen (15)
days before the day of any selection of Notes for redemption under
Section 3.02 of the Indenture and ending at the close of business on the
day of selection, (2) register the transfer of or exchange any Note selected
for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part, or (3) register the transfer of or exchange a Note
between a record date and the next succeeding interest payment date.

12.  PERSONS
DEEMED OWNERS.  The Holder of a Note may be treated as its
owner for all purposes.

13.   AMENDMENT, SUPPLEMENT AND WAIVER. 
Subject to certain exceptions in Section 10.02 of the Indenture, the
Company, the Guarantors and the Trustee may amend or supplement the Indenture,
any Collateral Agreement, the Notes and the Note Guarantees with the consent of
the Holders of at least a majority in aggregate principal amount of the Notes
(including Additional Notes, if any) then outstanding voting as a single class
(including consents obtained in connection with a tender offer or exchange
offer for, or purchase of, the Notes and Note Guarantees), and, subject to
Sections 7.04 and 7.07 of the Indenture, any existing Default or Event of
Default (other than a Default or Event of Default in the payment of the
principal and Aggregate Accreted Principal Amount of, premium and 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 the Indenture, any Collateral Agreement or the Notes and Note Guarantees may
be waived with the consent of the Holders of a majority in aggregate principal
amount of the then outstanding Notes (including Additional Notes, if any)
voting as a single class (including consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes).

 

 A-9

 

 

Without the consent of
each Holder affected, an amendment, supplement or waiver under Section 10.02 of
the Indenture may not (with respect to any Notes held by a non-consenting
Holder): (1) reduce the aggregate principal amount of Notes whose Holders must
consent to an amendment, supplement or waiver; (2) reduce the principal or
Aggregate Accreted Principal Amount of or change the fixed maturity of any Note
or alter or waive any of the provisions with respect to the redemption of the
Notes; (3) reduce the rate of or change the time for payment of interest,
including default interest, on any Note; (4) waive a Default or Event of
Default in the payment of principal or Aggregate Accreted Principal Amount of,
or interest on, or premium, if any, 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 (including Additional Notes, if
any) and a waiver of the payment default that resulted from such acceleration);
(5) make any Note payable in money other than that stated in the Notes; (6)
make any change in the provisions of the Indenture relating to waivers of past
Defaults or the rights of Holders to receive payments of principal or Aggregate
Accreted Principal Amount of, or interest on, or premium, if any, on, the
Notes; (7) release any Collateral from the Liens of the pledge and security
agreements, except as contemplated by the pledge and security agreements; (8)
waive a redemption payment or mandatory redemption with respect to any Notes;
(9) adversely affect the conversion rights of the Holders set forth in Article
4 of the Indenture; (10) release any Guarantor from any of its obligations
under its Note Guarantee or the Indenture, except in accordance with the terms
of the Indenture; or (11) make any change in Section 7.04 or 7.07 of the
Indenture or in the provisions relating to amendment, supplement and waiver in
the Indenture.

Without the consent of
any Holder, the Company, the Guarantors and the Trustee may amend or supplement
the Indenture, any Collateral Agreement, the Notes and the Note Guarantees: (1)
to cure any ambiguity, defect or inconsistency; (2) to provide for
uncertificated Notes in addition to or in place of certificated Notes; (3) to
provide for the assumption of the obligations of the Company or any Guarantor
to Holders in the case of a merger or consolidation or sale of all or
substantially all of the Company’s or any Guarantor’s assets in accordance with
the provisions of the Indenture; (4) to effect the release of a Guarantor from
its Note Guarantee and the termination of such Note Guarantee, all in
accordance with the provisions of the Indenture governing such release and
termination; (5) to add any Note Guarantee or to secure the Notes or any Note
Guarantee; (6)  to make any change that
would provide additional rights or benefits to the Holders or that does not
adversely affect the legal rights under the Indenture, the Notes, the Note
Guarantees or any Collateral Agreement of any Holder; (7) to comply with
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the Trust Indenture Act; (8) to provide for the issuance of
Additional Notes in accordance with the limitations set forth in the Indenture;
or (9) to provide for a successor trustee in accordance with the provisions of
the Indenture.

14.   DEFAULTS AND REMEDIES.  Each
of the following is an event of default: 
(1) default for thirty (30) days in the payment when due of interest on,
or Liquidated Damages, if any, with respect to the Notes; (2) default in the
payment when due (at maturity or otherwise) of the principal or Aggregate
Accreted Principal Amount of, or premium, if any, on, the Notes; (3) default in
the Company’s obligation to deliver shares of Common Stock, cash or other
property upon conversion of the Notes as required under the Indenture and such
default continues for a

 A-10
 

 

period of five (5) days; (4) failure by the Company or
any of its Restricted Subsidiaries to comply with the provisions of Sections
3.08, 5.07, 5.09, 5.10 or 6.01 of the Indenture; (5) failure by the Company or
any of its Restricted Subsidiaries for sixty (60) days after notice to the
Company by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes (including Additional Notes, if any) then outstanding
voting as a single class to comply with any of the other agreements in the
Indenture or any Collateral Agreement; provided, however, that with respect to a failure by the Company to
comply with Section 5.03 of the Indenture, such period shall be ninety (90)
days, rather than sixty (60) days; (6) default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company
or any of its Restricted Subsidiaries), whether such Indebtedness or Guarantee
now exists, or is created after the date of the Indenture, if that default (i)
is caused by a Payment Default or (ii) results in the acceleration of such
Indebtedness prior to its express maturity, and, in each case, the principal
amount of any such Indebtedness, together with the principal amount of any other
such Indebtedness under which there has been a Payment Default or the maturity
of which has been so accelerated, aggregates $10.0 million or more; (7) failure
by the Company or any of its Restricted Subsidiaries to pay final judgments
entered by a court or courts of competent jurisdiction aggregating in excess of
$10.0 million, which judgments are not paid, discharged or stayed for a period
of sixty (60) days; (8) (i) any revocation, cancellation or relinquishment,
which action is not subject to further appeal, of the Company’s or its
Restricted Subsidiaries’ (A) 24 GHz FCC Licenses covering a population equal to
or greater than 5.0% of the population covered by all of the Company’s and its
Restricted Subsidiaries’ 24 GHz FCC Licenses or (B) 39 GHz licenses covering a
population equal to or greater than 33 1/3% of the population covered by all of
the Company’s and its Restricted Subsidiaries’ 39 GHz licenses, with the
population in each case determined by the most recent official census conducted
by the U.S. government and (ii) such FCC License revocation, cancellation or
relinquishment, individually or in the aggregate, has a material adverse effect
on the condition (financial or otherwise), results of operations, business or
prospects of the Company and its Restricted Subsidiaries taken as a whole; (9)
the Company or any of its Restricted Subsidiaries, pursuant to or within the
meaning of the Bankruptcy Code (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, receiver, trustee, assignee,
liquidator or similar official under the Bankruptcy Code 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; (10) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Code that (i) is for relief against the Company or any of
its Restricted Subsidiaries in an involuntary case, (ii) appoints a custodian,
receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Code of the Company or any of its Restricted Subsidiaries, or for
all or substantially all of the property of the Company or any of its
Restricted Subsidiaries, or (iii) orders the liquidation of the Company or any
of its Restricted Subsidiaries; (11) any Collateral Agreement at any time for
any reason shall cease to be in full force and effect in all material respects,
or any Collateral Agreement ceases to give the Collateral Agent the Liens
(other than Liens securing Collateral, individually or in the aggregate, having
a Fair Market Value of less than $500,000), rights, powers and privileges
purported to be created thereby, superior to and prior to the rights of all
third Persons other than the holders of Permitted Liens and subject to no other
Liens except as

 A-11
 

 

expressly permitted by any Collateral Agreement or the
Indenture; (12) the Company or any of its Restricted Subsidiaries contest in
any manner the effectiveness, validity, binding nature or enforceability of any
Collateral Agreement; or (13) the Note Guarantee of any Guarantor ceases to be
in full force and effect or is declared to be null and void and unenforceable
or is found to be invalid or any Guarantor denies its liability under its Note
Guarantee (other than by reason of release of a Guarantor in accordance with
the terms of the Indenture).

In the case of an Event of
Default specified in clause (9) or (10) above, with respect to the Company or
any Restricted Subsidiary of the Company, all outstanding Notes plus any
remaining amounts in the Escrow Account and Liquidated Damages, if any, will
become due and payable immediately without further action or notice.  If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes may declare all the Notes, plus any
remaining amounts in the Escrow Account and Liquidated Damages, if any, to be
due and payable immediately.  If the
Notes become due and payable at any time prior to maturity, the amount that
shall become due and payable shall be the Aggregate Accreted Principal Amount
of such Notes.

Holders may not enforce the
Indenture or the Notes except as provided in the Indenture.   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 the Indenture or the Collateral Agreements that the Trustee
determines may be unduly prejudicial to the rights of other Holders or that may
involve the Trustee in personal liability or expense.

Holders
of a majority in aggregate principal amount of the then outstanding Notes by
written notice to the Trustee may, on behalf of the Holders of all of the
Notes, rescind an acceleration or waive any existing Default or Event of
Default and its consequences under the Indenture if the rescission would not
conflict with any judgment or decree and if all existing Events of Default
(except nonpayment of principal or Aggregate Accreted Principal Amount, interest
or premium and Liquidated Damages, if any, that has become due solely because
of the acceleration) have been cured or waived. 
The Trustee may withhold from the Holders of the Notes then outstanding
notice of any continuing Default or Event of Default under the Indenture if it
determines that withholding notice is in their interest, except a Default or
Event of Default under the Indenture relating to the payment of principal or
Aggregate Accreted Principal Amount, interest or premium, if any.  Subject to the provisions of the Indenture
relating to the duties of the Trustee, including, without limitation, Section
8.01 of the Indenture, in case an Event of Default occurs and is continuing,
the Trustee will be under no obligation to exercise any of the rights or powers
under the Indenture at the request or direction of any Holders unless such
Holders have offered to the Trustee reasonable indemnity or security against
any loss, liability or expense.

If
an Event of Default occurs on or prior to November 15, 2010 by reason of any
willful action (or inaction) taken (or not taken) by or on behalf of the
Company or the Guarantors with the intention of avoiding the prohibition on
redemption of the Notes prior to November 15, 2010 or the requirement to pay
the Designated Event Make-Whole Amount, then, upon acceleration of

 A-12
 

 

the Notes, any additional premium shall also become
due and immediately payable, to the extent permitted by law, in an amount equal
to the Designated Event Make-Whole Amount. 
If an Event of Default occurs on or prior to November 15, 2009 by reason
of any willful action (or inaction) taken (or not taken) by or on behalf of the
Company or the Guarantors with the intention of avoiding the requirement to pay
the Conversion Make-Whole Amount, then, upon acceleration of the Notes, any
additional premium shall also become due and be immediately payable, to the
extent permitted by law, in an amount equal to the Conversion Make-Whole
Amount.

The Company and each
Guarantor (to the extent that such Guarantor is so required under the Trust
Indenture Act) shall deliver to the Trustee, within ninety (90) days after the
end of each fiscal year, an Officer’s Certificate, signed by the Company’s
Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer,
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 Officer with a view to determining whether the Company and each obligor
under the Notes and the Indenture has kept, observed, performed and fulfilled
its obligations under the Note Documents, and further stating, as to the
Officer signing such certificate, that to the best of his or her knowledge the
Company and each such obligor has kept, observed, performed and fulfilled each
and every covenant contained in the Note Documents and is not in default in the
performance or observance of any of the terms, provisions and conditions of the
Note Documents (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 or such obligor 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, Aggregate Accreted Principal Amount, if any, 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 or such obligor is taking
or proposes to take with respect thereto.

The Company shall, so long
as any of the Notes are outstanding, deliver to the Trustee, forthwith upon any
Officer becoming aware of any Default or Event of Default, an Officer’s
Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

15.  UNCLAIMED
MONEY.   Any money deposited with the Trustee or any
Paying Agent, or then held by the Company, in trust for the payment of the
principal and Aggregate Accreted Principal Amount of, and interest or premium
and Liquidated Damages, if any, on, any Note and remaining unclaimed for two
years after such principal and Aggregate Accreted Principal Amount, and interest
or premium and Liquidated Damages, if any, has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter 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

 A-13
 

 

unclaimed and that, after a date specified therein,
which shall not be less than thirty (30) days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

16.  TRUSTEE
DEALINGS WITH COMPANY.  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 ninety (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 8.10 and 8.11 of the Indenture.

17.  NO
RECOURSE AGAINST OTHERS.  No past, present or future director, officer,
employee, incorporator or stockholder of the Company or any Guarantor, as such,
shall have any liability for any obligations of the Company or such Guarantor
under the Notes, the Note Guarantees, the Indenture or the Collateral
Agreements 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. 
The waiver may not be effective to waive liabilities under the federal
securities laws.

18.  AUTHENTICATION.  This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

19.   ABBREVIATIONS. 
Customary abbreviations may be used in the name of a Holder or an
assignee, such as:  TEN COM (= tenants in
common), TEN ENT (= 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).

20.   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 or repurchase 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.

20.  GOVERNING LAW.    THE
INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THE
INDENTURE, THIS NOTE AND THE NOTE GUARANTEES 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.

The
Company will furnish to any Holder upon written request and without charge a
copy of the Indenture, the Registration Rights Agreement, the Escrow Agreement
and any Collateral Agreement.  Requests
may be made to:

FiberTower
Corporation

185 Berry Street, Suite 4800

San Francisco, CA 94107

Attention:  Chief Financial Officer

 A-14
 

 

Assignment
Form

To assign this Note, fill in
the form below:

	
  (I) or (we) assign and
  transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’s legal name)

  
	
   

  
	
   

  
	
   

  
	
  (Insert assignee’s soc. sec. 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 (or other signature guarantor acceptable
to the Trustee).

 A-15
 

 

 

CONVERSION NOTICE

To convert this Note into Common Stock of the
Company, check the box:  o

To convert only part of this Note, state the principal amount to be
converted (must be $1,000 or an integral multiple of $1,000):  $                                .

If you want the stock certificate made out in another person’s name,
fill in the form below:

	
  

  
	
  (Insert assignee’s soc. sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and zip
  code)

  
	
   

  

 

	
  

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on

  the other side of this Note)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  *Signature guaranteed by:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

*                                         The signature must be guaranteed by an
institution which is a member of one of the following recognized signature
guaranty programs:  (i) the Securities Transfer Agent Medallion
Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP);
(iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other
guaranty program acceptable to the Trustee.

 A-16
 

 

 

OPTION OF HOLDER TO ELECT REPURCHASE

If you want to elect to have
this Note repurchased by the Company pursuant to Section 3.08 or Section 3.09
of the Indenture, check the appropriate box below:

o 
Section 3.08                                   o 
Section 3.09

If you want to elect to have
only part of the Note repurchased by the Company pursuant to Section 3.08 or
Section 3.09 of the Indenture, state the amount you elect to have repurchased:

$                              

Date:                        

 

	
  

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
  (Sign exactly as
  your name appears on

  the face of this Note)

  	
   

  

 

 

	
  

  	
  Tax
  Identification No.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
				

 

*              Participant in a recognized
Signature Guarantee Medallion Program (or other signature guarantor acceptable
to the Trustee).

 A-17
 

 

SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

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

  Custodian

  

 

 

 A-18

 

Exhibit B

FORM OF CERTIFICATE OF TRANSFER

FiberTower Corporation

185 Berry Street, Suite 4800

San Francisco, CA 94107

Wells Fargo Bank, National Association

Corporate Trust Services

1445 Ross Avenue, 2nd Floor

Dallas, TX 75202-2812

Re:          9.00% Convertible Senior Secured Notes due 2012

Reference is hereby made to
the Indenture, dated as of November 9, 2006 (the “Indenture”),
among FiberTower Corporation, as issuer (the “Company”),
the Guarantors party thereto, and Wells Fargo Bank, National Association, 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 Notes[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:

[CHECK ALL THAT APPLY]

1.             o            Check if Transferee will
take delivery of a beneficial interest in the 144A Global Note or a Restricted
Definitive Note pursuant to Rule 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the 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 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
Restricted 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
Restricted 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 

 B-1
 

 

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 Distribution Compliance
Period under Regulation S, 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 and/or the Restricted Definitive
Note and in the Indenture and the Securities Act.

3.             o            Check and complete if
Transferee will take delivery of a beneficial interest in the IAI Global Note
or a Restricted Definitive Note pursuant to any provision of the Securities Act
other than Rule 144A or Regulation S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial
interests in Restricted Global Notes and Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

(a)           o            such
Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act;

or

(b)           o            such
Transfer is being effected to the Company or a Subsidiary thereof;

or

(c)           o            such
Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act;

or

(d)           o            such
Transfer is being effected to an Institutional Accredited Investor and pursuant
to an exemption from the registration requirements of the Securities Act other
than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby
further certifies that it has not engaged in any general solicitation within
the meaning of Regulation D under the Securities Act and the Transfer complies
with the transfer restrictions applicable to beneficial interests in a
Restricted Global Note or Restricted Definitive Notes and the requirements of
the exemption claimed, which certification is supported by (1) a certificate 

 B-2
 

 

executed by the Transferee
in the form of Exhibit F to the Indenture and (2) if such Transfer is in
respect of a principal amount of Notes at the time of transfer of less than
$250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a
copy of which the Transferor has attached to this certification), to the effect
that such Transfer is in 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 be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on
the IAI Global Note and/or the Restricted Definitive Notes and in the Indenture
and the Securities Act.

4.             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 

 B-3
 

 

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.

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-4
 

 

ANNEX A TO CERTIFICATE OF TRANSFER

1.  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

(iii)           o               IAI
Global Note (CUSIP _________); or

(b)              a
Restricted Definitive Note.

2.  After the Transfer the Transferee will hold:

[CHECK ONE]

(a)               a
beneficial interest in the:

(i)                 o               144A Global Note (CUSIP
_________), or

(ii)              o               Regulation S Global Note (CUSIP
_________), or

(iii)           o               IAI
Global Note (CUSIP _________); or

(iv)          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-5

 

Exhibit C

FORM OF CERTIFICATE OF EXCHANGE

FiberTower Corporation

185 Berry Street, Suite 4800

San Francisco, CA 94107

Wells Fargo Bank, National Association

Corporate Trust Services

1445 Ross Avenue, 2nd Floor

Dallas, TX 75202-2812

Re:          9.00% Convertible Senior Secured Notes due 2012

(CUSIP ____________)

Reference is hereby made to
the Indenture, dated as of November 9, 2006 (the “Indenture”),
among FiberTower Corporation, as issuer (the “Company”),
the Guarantors party thereto, and Wells Fargo Bank, National Association, 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

(a)           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
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.

(b)           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 

 C-1
 

 

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.

(c)           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
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.

(d)           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

(a)           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.

(b)           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] o 144A Global Note, o Regulation S Global Note, o IAI 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 

 C-2
 

 

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:

  	
   

  	
   

  	
   

  
					

 

 C-3

 

Exhibit D

FORM OF
CERTIFICATE OF CONVERSION & RESTRICTED TRANSFER

FiberTower Corporation

185 Berry Street, Suite 4800

San Francisco, CA 94107

Wells Fargo Bank, National Association

Corporate Trust Services

1445 Ross Avenue, 2nd Floor

Dallas, TX 75202-2812

Re:          9.00% Convertible Senior Secured Notes due 2012

Reference is hereby made to
the Indenture, dated as of November 9, 2006 (the “Indenture”),
among FiberTower Corporation, as issuer (the “Company”),
the Guarantors party thereto, and Wells Fargo Bank, National Association, 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 exercise its right of
conversion pursuant to Article 4 of the Indenture with respect to 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, and to request that the
shares of Common Stock issuable upon such conversion (the “Shares”)
be registered in the name of or issued to ___________________________ (the “Transferee”), as further specified in Annex A hereto (such
transaction, the “Conversion & Transfer”). In
connection with the Conversion & Transfer, the Transferor hereby certifies
that:

[CHECK ALL THAT APPLY]

1.             o            Check if Transferee will
take delivery of Shares pursuant to Rule 144A. The Conversion
& Transfer is being effected pursuant to and in accordance with Rule 144A
under the Securities Act of 1933, as amended (the “Securities
Act”), and, accordingly, the Transferor hereby further certifies
that the Shares to be issued upon conversion are being transferred to a Person
that the Transferor reasonably believed and believes is purchasing the Shares
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 Conversion &
Transfer is in compliance with any applicable blue sky securities laws of any
state of the United States.  Upon
consummation of the proposed Conversion & Transfer in accordance with the
terms of the Indenture, the Shares will be subject to the restrictions on
transfer enumerated in the Private Placement Legend set forth in the Indenture
and the Securities Act.

2.             o            Check and complete if
Transferee will take delivery of the Shares pursuant to any provision of the
Securities Act other than Rule 144A. The Conversion &
Transfer is being effected in compliance with the transfer restrictions set
forth in Section 2.06 of 

 D-1
 

 

the Indenture and pursuant to and in accordance with
the Securities Act and any applicable blue sky securities laws of any state of
the United States, and accordingly the Transferor hereby further certifies that
(check one):

(a)           o            such
Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act;

or

(b)           o            such
Transfer is being effected to the Company or a Subsidiary thereof;

or

(c)           o            such
Transfer is being effected pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act.

3.             o            Check if Transferee will
take delivery of Unrestricted Shares.

(a)           o            Check if Conversion & Transfer is pursuant to Rule 144.
(i) The Conversion & 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 Conversion & Transfer in accordance with the
terms of the Indenture, the Shares 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 Conversion & Transfer is Pursuant to Other Exemption.
(i) The Conversion & Transfer is being effected pursuant to and in
compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144 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 Conversion
& Transfer in accordance with the terms of the Indenture, the Shares will
not be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes or Restricted
Definitive Notess and in the Indenture.

 D-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:

  	
   

  

 

 D-3
 

 

ANNEX A TO
CERTIFICATE OF CONVERSION & RESTRICTED TRANSFER

1.  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

(iii)           o               IAI
Global Note (CUSIP); or

(b)              o         a Restricted Definitive Note.

2.  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               IAI
Global Note (CUSIP _________), or

(iv)          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.

	
  

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Social Security
  or other Identification Number, if any.

  	
   

  

 

 D-4

 

Exhibit E

FORM OF
NOTATION OF GUARANTEE

For value received, each
Guarantor (which term includes any successor Person under the Indenture) has,
jointly and severally, unconditionally guaranteed, to the extent set forth in
the Indenture and subject to the provisions in the Indenture, dated as of
November 9, 2006 (the “Indenture”),
among FiberTower Corporation, (the “Company”), the
Guarantors party thereto, and Wells Fargo Bank, National Association, as
trustee (the “Trustee”), (a) the due and
punctual payment of the principal or Aggregate Accreted Principal Amount of,
premium and Liquidated Damages, if any, and interest on, the Notes, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual
payment of interest on overdue principal or Aggregate Accreted Principal Amount
of and interest on the Notes, if any, if lawful, and the due and punctual
performance of all other obligations of the Company to the Holders or the
Trustee all in accordance with the terms of the Indenture and (b) in case of
any extension of time of payment or renewal of any Notes or any of such other
obligations, that the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. The obligations of the Guarantors to
the Holders and to the Trustee pursuant to the Note Guarantees and the
Indenture are expressly set forth in Article 12 of the Indenture and reference
is hereby made to the Indenture for the precise terms of the Note Guarantees.

Capitalized terms used but
not defined herein have the meanings given to them in the Indenture.

	
  

  	
  [Name Of Guarantor(s)]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 E-1

 

Exhibit F

FORM OF
CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

FiberTower Corporation

185 Berry Street, Suite 4800

San Francisco, CA 94107

Wells Fargo Bank, National Association

Corporate Trust Services

1445 Ross Avenue, 2nd Floor

Dallas, TX 75202-2812

Re:          9.00% Convertible Senior Secured Notes due 2012

Reference is hereby made to
the Indenture, dated as of November 9, 2006 (the “Indenture”),
among FiberTower Corporation, as issuer (the “Company”),
the Guarantors party thereto, and Wells Fargo Bank, National Association, as
Trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

In connection with our
proposed purchase of $____________ aggregate principal amount of:

(a)           o            a
beneficial interest in a Global Note, or

(b)           o            a
Definitive Note,

we confirm that:

1.             We understand that any subsequent transfer of the Notes
or any interest therein is subject to certain restrictions and conditions set
forth in the Indenture and the undersigned agrees to be bound by, and not to
resell, pledge or otherwise transfer the Notes or any interest therein except
in compliance with, such restrictions and conditions and the Securities Act of
1933, as amended (the “Securities Act”).

2.             We understand that the offer and sale of the Notes have
not been registered under the Securities Act, and that the Notes and any
interest therein may not be offered or sold except as permitted in the
following sentence. We agree, on our own behalf and on behalf of any accounts
for which we are acting as hereinafter stated, that if we should sell the Notes
or any interest therein, we will do so only (A) to the Company or any
Subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act
to a “qualified institutional buyer” (as defined therein), (C) to an
institutional “accredited investor” (as defined below) that is purchasing for
its own account or for the account of such an institutional “accredited
investor” for investment purposes and not with a view to or for offer or sale
in connection with any distribution in violation of the Securities Act that,
prior to such transfer, furnishes (or has furnished on its behalf by a U.S.
broker-dealer) to the Trustee and to the Company a signed letter 

 F-1
 

 

substantially in the form of this letter and, if such
transfer is in respect of a principal amount of Notes, at the time of transfer
of less than $250,000, an Opinion of Counsel in form reasonably acceptable to
the Company to the effect that such transfer is in compliance with the Securities
Act, (D) outside the United States in accordance with Rule 904 of Regulation S
under the Securities Act, (E) pursuant to the provisions of Rule 144(k) under
the Securities Act or (F) pursuant to an effective registration statement under
the Securities Act, and we further agree to provide to any Person purchasing
the Definitive Note or beneficial interest in a Global Note from the Company in
a transaction meeting the requirements of clauses (A) through (E) of this
paragraph a notice advising such purchaser that resales thereof are restricted
as stated herein.

3.             We understand that, on any proposed resale of the Notes
or beneficial interest therein, we will be required to furnish to the Trustee
and the Company such certifications, legal opinions and other information as
the Trustee and the Company may reasonably require to confirm that the proposed
sale complies with the foregoing restrictions. We further understand that the
Notes purchased by us will bear a legend to the foregoing effect.

4.             We are an institutional “accredited investor” (as
defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
Act) and have such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of our investment in the
Notes, and we and any accounts for which we are acting are each able to bear
the economic risk of our or its investment.

5.             We are acquiring the Notes or beneficial interest
therein purchased by us for our own account or for one or more accounts (each
of which is an institutional “accredited investor”) as to each of which we
exercise sole investment discretion.

The
Trustee and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

	
  

  	
   

  
	
  

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

 F-2

 

 

Exhibt
G

FORM OF INTERCREDITOR
AGREEMENT

This INTERCREDITOR AGREEMENT, dated as of [__________
___, _____], is entered into by and among [WORKING CAPITAL FACILITY COLLATERAL
AGENT], a [____________], in its capacity as [administrative agent/collateral
agent] under the Working Capital Facility Agreement (as hereinafter defined)
for the lenders who are party from time to time thereto (in such capacity,
together with its successors and assigns in such capacity, the “Working
Capital Facility Collateral Agent”), WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, in its capacity as trustee
pursuant to the Indenture (as hereinafter defined) for the Noteholders (as
hereinafter defined) (in such capacity, together with its successors and assigns
in such capacity, the “Trustee”), WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, in its capacity as collateral
agent pursuant to the Noteholder Collateral Agreement (as hereinafter defined)
for the benefit of the Trustee and the Noteholders (in such capacity, together
with its successors and assigns in such capacity, the “Collateral Agent”)
and the [administrative/collateral agent] under the Pari Passu Indebtedness
Documents (as hereinafter defined) which becomes a party hereto by executing
and delivering a Joinder Agreement (in such capacity, together with its
successors and assigns in such capacity, the “Pari Passu Collateral Agent”).

W I T N E S S E T H:

WHEREAS, the Company (as hereinafter defined), the
Guarantors (as hereinafter defined) and the Trustee have entered into the
Indenture, dated as of November 9, 2006, (as such Indenture may be amended,
modified, supplemented, extended, renewed, restated or refinanced, the “Indenture”)
governing the 9.00% Convertible Senior Secured Notes due 2012 (such notes,
including the Initial Notes and any Additional Notes (each, as defined below)
the “Notes”) issued by the Company to the Noteholders (the “Noteholders”);

WHEREAS, after the date of the Indenture, the Company,
certain lenders and the Working Capital Facility Collateral Agent may enter
into a [Credit Agreement], dated as of [__________ ___, _____] (as such
agreement may be amended, modified, supplemented, extended, renewed, restated
or refinanced (as hereinafter defined), the “Working Capital Facility
Agreement”);

WHEREAS, after the date of the Indenture, the Company
may, subject to the terms and conditions of the Secured Debt Documents (as
defined below), incur additional indebtedness that is pari passu with the Note Obligations (the “Pari
Passu Indebtedness”, as
hereinafter further defined) under agreements evidencing such Pari Passu
Indebtedness, which the Company desires to secure on a pari passu basis with the Note Liens.  Such Pari Passu Indebtedness shall be
permitted to be secured by the Pari Passu Collateral if (x) the Secured Debt
Documents do not prohibit such Pari Passu Indebtedness from being secured by
the Pari Passu Collateral and (y) the Pari Passu Collateral Agent, for itself
and on behalf of the Pari Passu Lenders (as hereinafter defined) execute and
deliver a joinder agreement hereto and become a party to this Agreement
pursuant to the requirements of Section 8.7 hereof.

WHEREAS, it is a condition precedent to the
effectiveness of the Working Capital Facility Agreement that the Working
Capital Facility Collateral Agent (for itself and for the benefit of the
lenders under the Working Capital Facility Agreement), the Trustee and the
Collateral Agent (in each case, for itself and for the benefit of the
Noteholders), and, if applicable, the Pari Passu Collateral Agent, for itself
and on behalf of the holders of Pari Passu Indebtedness (or if none, the
holders of Pari Passu Indebtedness), enter into this Agreement;

NOW, THEREFORE, in consideration of the foregoing, the
mutual covenants and obligations herein set forth and for other good and
valuable consideration, the adequacy and receipt of which are

 G-1
 

 

hereby acknowledged, and in reliance upon the
representations, warranties and covenants herein contained, the parties hereto,
intending to be legally bound, hereby agree as follows:

(1)           Definitions.  Unless otherwise specifically stated, any
capitalized terms used in this Agreement which are not otherwise defined herein
shall have the respective meanings ascribed to such terms in the
Indenture.  As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and the plural form of the terms
indicated):

1)             “Additional Notes” means the
aggregate principal amount of Notes (other than the Initial Notes) issued under
the Indenture (i) in lieu of interest payment on the Initial Notes as permitted
by Section 5.09 of the Indenture and paragraph “1. Interest” in the form of
Note attached as Exhibit A thereto or (ii) subject to the satisfaction of all
of the covenants in the Indenture, including, without limitation, Sections 5.09
and 5.12 of the Indenture, in each case in the form of Exhibit A thereto, as
part of the same series as the Initial Notes.

2)             “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,”
as used with respect to any Person, means 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 will be deemed to be control.  For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

3)             “Agreement” means this
Agreement, as amended, supplemented or otherwise modified from time to time in
accordance with the terms hereof.

4)             “asset” means any asset or
property (tangible and intangible).

5)             “Asset Sale” means in a
single transaction or a series of related transactions:  (i) the sale, lease, conveyance or other
disposition of any assets or rights (including by way of a sale and leaseback
transaction), other than the sale, lease, conveyance or other disposition of
all or substantially all of the assets of the Company and its Restricted Subsidiaries
taken as a whole; and (ii) the issuance or sale of Equity Interests of any of
the Company’s Restricted Subsidiaries or the sale of Equity Interests in any of
the Company’s Subsidiaries.  For purposes
of this definition, the term “Asset Sale” shall not include:

a.             any single transaction or series of related transactions
that involves assets having a Fair Market Value of less than $1.0 million;

b.             a transfer of assets between or among the Company and
its wholly-owned Guarantors;

c.             an issuance of Equity Interests by a Restricted
Subsidiary of the Company to the Company or to a wholly-owned Guarantor;

 G-2
 

 

 

d.             the sale or lease of products, services or accounts
receivable in the ordinary course of business or equipment or other assets
pursuant to a program for the maintenance or upgrading of such equipment or
assets including, without limitation, the disposition of equipment that is worn
out or obsolete; and

e.             the sale or other disposition of cash or Cash
Equivalents.

6)             “Average Life” means, as of
the date of determination, with respect to any Indebtedness, the quotient
obtained by dividing:

1.                                       the
sum of the products of the number of years from the date of determination to
the dates of each successive scheduled principal payment of or redemption or
similar payment with respect to such Indebtedness multiplied by the amount of
such payment by

2.                                       the
sum of all such payments.

7)             “Bankruptcy Code” means
Title 11 of the United States Code (11 U.S.C. 101 et seq.), as amended from
time to time, and any successor statute, or if the context so requires, any
similar federal or state law.

8)             “Board of Directors” means
(i) with respect to a corporation, the board of directors of the
corporation or any committee thereof duly authorized to act on behalf of such
board, (ii) with respect to a partnership, the board of directors of the
general partner of the partnership, (iii) with respect to a limited
liability company, the managing member or members or any controlling committee
of managing members thereof and (iv) with respect to any other Person, the
board or committee of such Person serving a similar function.

9)             “Business Day” means any day
other than a Saturday, a Sunday or a day on which banking institutions in The
City of New York, New York or San Francisco, California or at a place of
payment are authorized or required by law, regulation or executive order to
remain closed.

10)           “Capital Lease Obligations”
means, at the time any determination is to be made, the amount of the liability
in respect of a capital lease that would at that time be required to be
capitalized on a balance sheet prepared in accordance with GAAP, and the Stated
Maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may
be prepaid by the lessee without payment of a penalty.

11)           “Capital Stock”
means:

a.             in the case of a corporation, corporate stock;

b.             in the case of an association or business entity, any
and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

 G-3
 

 

 

c.             in the case of a partnership or limited liability
company, partnership interests (whether general or limited) or membership
interests, respectively; and

d.             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, but excluding from all of the
foregoing any debt securities convertible into Capital Stock, whether or not
such debt securities include any right of participation in profits, losses or
distribution of assets with Capital Stock.

12)           “Cash Equivalents”
means:

a.             United States dollars;

b.             securities issued or directly and fully guaranteed or
insured by the United States government or any agency or instrumentality of the
United States government (provided that the full faith and credit of the United
States is pledged in support of those securities) having maturities of not more
than twelve months from the date of acquisition;

c.             certificates of deposit and eurodollar time deposits
with maturities of twelve months or less from the date of acquisition, bankers’
acceptances with maturities not exceeding twelve months and overnight bank
deposits, in each case, with any domestic commercial bank having capital and
surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or
better;

d.             repurchase obligations with a term of not more than
seven (7) days for underlying securities of the types described in clauses (2)
and (3) above entered into with any financial institution meeting the
qualifications specified in clause (3) above;

e.             commercial paper having one of the two highest ratings
obtainable from Moody’s or Standard & Poor’s and, in each case, maturing
within twelve months after the date of acquisition; and

f.              money market funds at least 95% of the assets of which
constitute Cash Equivalents of the kinds described in clauses (1) through (5)
of this definition.

13)           “Collateral”
means all collateral of whatsoever nature purported to be subject to the lien
of any of the Working Capital Facility Security Documents, the Noteholder
Collateral Documents or the Pari Passu Collateral Documents.

14)           “Collateral Agent” means Wells
Fargo Bank, National Association, in its capacity as Collateral Agent under the
Noteholder Collateral Documents, together with any successors in such capacity.

15)           “Company” means FiberTower
Corporation, and its successors and assigns, including, without limitation, any
receiver, trustee or debtor-in-possession on behalf of such person or on behalf
of any successor or assign.

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16)           “Comparable Noteholder Collateral
Document” means, in relation to any Shared Collateral subject to any
Working Capital Facility Security Document, that Noteholder Collateral Document
which creates a security interest in the same Collateral, granted by the same
Obligor or Obligors.

17)           “Comparable Pari Passu Collateral
Document” means, in relation to any Shared Collateral that is also Pari
Passu Collateral, subject to any Working Capital Facility Security Document,
that Pari Passu Collateral Document which creates a security interest in the
same Collateral, granted by the same Obligor or Obligors.

18)           “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 (as such term is defined in the Indenture).

19)           “Discharge of Working Capital
Facility Obligations” means the occurrence of all of the following:

a.             termination or expiration of all commitments to extend
credit that would constitute Working Capital Facility Indebtedness;

b.             payment in full in cash of the principal of and interest
and premium (if any) on all Working Capital Facility Indebtedness (other than
any undrawn letters of credit);

c.             cash collateralization (at the lower of (i) 110% of the
aggregate undrawn amount and (ii) the percentage of the aggregate undrawn
amount required for release of Liens under the terms of the applicable Working
Capital Facility Document), expiration, termination or return to the issuing
bank of all outstanding letters of credit constituting Working Capital Facility
Indebtedness; and

d.             payment in full in cash of all other Working Capital
Facility Obligations that are outstanding and unpaid at the time the Working
Capital Facility Obligations are paid in full in cash (other than any
obligations for taxes, costs, indemnifications, reimbursements, damages and
other liabilities in respect of which no claim or demand for payment has been
made at such time).

20)           “Disqualified Stock” means any
Capital Stock that, by its terms (or by the terms of any security into which it
is convertible, or for which it is exchangeable, in each case, at the option of
the holder of the Capital Stock), 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 of the Capital Stock, in
whole or in part, on or prior to the date that is ninety-one (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 of the Capital Stock
have the right to require the Company to repurchase such Capital Stock upon the
occurrence of a change of control or an asset sale will 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 the covenant described under
Section 5.07 of the Indenture.

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21)           “Equally and Ratably” means,
in reference to sharing Liens or proceeds thereof with respect to Shared
Collateral as between the Junior Secured Parties, that such Liens or proceeds
will be allocated and distributed to the Collateral Agent (for the account of
the Noteholders) and the Pari Passu Collateral Agent (for the account of the
Pari Passu Lenders), ratably in proportion to outstanding Obligations of each
outstanding Series of Secured Debt when the allocation or distribution is made.

22)           “Equity Interests” means
Capital Stock and all warrants, options or other rights to acquire Capital
Stock (but excluding any debt security that is convertible into, or
exchangeable for, Capital Stock).

23)           “Exchange Act”
means the U.S. Securities Exchange Act of 1934, as amended.

24)           “Fair Market Value” means the
value that would be paid by a willing buyer to an unaffiliated willing seller
in a transaction not involving distress or necessity of either party,
determined in good faith by the Board of Directors of the Company (unless
otherwise provided in the Indenture), evidenced by a resolution delivered to
the Trustee.

“FCC” means the
U.S. Federal Communications Commission and any successor agency that is
responsible for regulating the U.S. telecommunications industry.

25)           “FCC License” means any
authorization, license or permit issued by the FCC, together with any
extensions or renewals thereof.

26)           “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 such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in
effect from time to time.

27)           “Guarantor” means each
Domestic Restricted Subsidiary of the Company on the date of the Indenture, and
each other Domestic Restricted Subsidiary of the Company that executes a Note
Guarantee in accordance with the provisions of the Indenture, in each case,
together with their respective successors and assigns, unless and until the
Note Guarantee of such Person has been released in accordance with the
provisions of the Indenture.

28)           “Hedging Obligations” means,
with respect to any Person, the obligations of such Person, incurred in the
ordinary course of business to protect against interest rate and foreign
currency exchange rate fluctuations, under:

a.             interest rate swap agreements, interest rate cap
agreements and interest rate collar agreements;

b.             other agreements or arrangements designed to manage
interest rates or interest rate risk; and

c.             other agreements or arrangements designed to protect such
Person against fluctuations in currency exchange rates or commodity prices.

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29)           “Indebtedness”
means, with respect to any specified Person, any indebtedness of such Person
(excluding accrued expenses and trade payables), whether or not contingent:

a.             in respect of borrowed money;

b.             evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect
thereof);

c.             in respect of banker’s acceptances;

d.             representing Capital Lease Obligations;

e.             representing the balance deferred and unpaid of the
purchase price of any property or services due more than six months after such
property is acquired or such services are completed; or

f.              representing any Hedging Obligations;

if and to the extent any of the preceding items (other
than letters of credit and Hedging Obligations) would appear as a liability
upon a balance sheet of the specified Person prepared in accordance with GAAP
and also includes, to the extent not otherwise included, the amount of all obligations
of such Person with respect to the redemption, repayment or other repurchase of
any Disqualified Stock or, with respect to any Subsidiary of such Person, the
liquidation preference with respect to any preferred Equity Interests.  In addition, the term “Indebtedness” includes
all Indebtedness of others secured by a Lien on any asset of the specified
Person (whether or not such Indebtedness is assumed by the specified Person)
and, to the extent not otherwise included, the guarantee by the specified Person
of any Indebtedness of any other Person.

30)           “Initial Notes” means $402.5
million aggregate principal amount of Notes issued under the Indenture on the
Original Issue Date.

31)           “Insolvency Proceeding” means,
as to any Person, any of the following: (a) any case or proceeding with respect
to such Person under the Bankruptcy Code or any other federal or state
bankruptcy, insolvency, reorganization, arrangement, composition or
readjustment of the obligations and Indebtedness of such Person; (b) any proceeding
seeking the appointment of any trustee, receiver, liquidator, custodian or
other insolvency official with similar powers with respect to such Person or
any of its assets; (c) any proceeding for liquidation, dissolution or other
winding up of the business of such Person; or (d) any assignment for the
benefit of creditors or any marshaling of assets of such Person.

32)           “Investments”
means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the form of loans (including
Guarantees or other obligations), advances or capital contributions (excluding
commission, travel and similar advances to officers and employees made 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 such that, after giving
effect to any such sale or disposition, such

 G-7
 

 

Person is no longer a Restricted Subsidiary of the
Company, the Company or such Restricted Subsidiary will be deemed to have made
an Investment on the date of any such sale or disposition in such Restricted
Subsidiary. The acquisition by the Company or any Restricted Subsidiary of the
Company of a Person that holds an Investment in a third Person will be deemed
to be an Investment by the Company or such Restricted Subsidiary in such third
Person.

33)           “Junior Secured Parties”
means, collectively, (i) the Collateral Agent and the Noteholders, (ii) the
Pari Passu Collateral Agent and the Pari Passu Lenders and (iii) each other
Person that from time to time holds any Pari Passu Indebtedness.

34)           “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 UCC (or equivalent
statutes) of any jurisdiction.

35)           “Liquidated Damages” means all
liquidated damages then owing pursuant to the Registration Rights Agreement.

36)           “Moody’s” means Moody’s
Investors Service, Inc.

37)           “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 (1) the direct costs relating to such Asset
Sale, including, without limitation, legal, accounting and investment banking
fees, sales commissions, relocation expenses incurred as a result of the Asset
Sale, and taxes paid or payable as a result of the Asset Sale after taking into
account any available tax credits or deductions and any tax sharing
arrangements, (2) amounts required to be applied to the repayment of
Indebtedness, other than Indebtedness under a Working Capital Facility, secured
by a Lien on the asset or assets that were the subject of such Asset Sale, and
(3) any reserve for adjustment in respect of the sale price of such asset or
assets established in accordance with GAAP.

38)           “Note Documents” means the
Indenture, the Notes, the Note Guarantees, the Noteholder Collateral Documents,
the Purchase Agreement, the Registration Rights Agreement and any other
agreements governing, securing or relating to any Note Obligations.

39)           “Note Guarantee” means the
guarantee by each Guarantor of the Company’s payment obligations under the
Indenture.

40)           “Note Indebtedness” means (1)
the Initial Notes and the Note Guarantees issued on the Original Issue Date and
(2) any Additional Notes and Note Guarantees thereon issued pursuant to the
Indenture.

41)           “Note Lien” means a Lien
granted by a Noteholder Collateral Document to the Collateral Agent (or any
other holder, or representative of holders, of Note Obligations), at any time,
upon any assets of the Company or any Guarantor to secure Note Obligations.

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42)           “Note Obligations” means Note
Indebtedness and all other Obligations in respect thereof.

43)           “Notes” shall have the meaning
set forth in the recitals hereto.

44)           “Noteholder Collateral” means all
of the assets of any Obligor, whether real, personal or mixed, with respect to
which a Lien is granted as security for any Note Obligations.

45)           “Noteholder Collateral Agreement”
means the Pledge and Security Agreement, dated as of November 9, 2006, among
the Obligors party thereto and the Collateral Agent, as the same may be
amended, modified, supplemented, extended, renewed, or restated from time to
time.

46)           “Noteholder Collateral Documents”
means this Agreement, the Noteholder Collateral Agreement, the Noteholder
Mortgages, and any other document or instrument executed and delivered at any
time pursuant to any Note Document or otherwise, pursuant to which a Lien is
granted by an Obligor to secure any Note Obligations or under which rights or
remedies with respect to any such Lien are governed, as the same may be
amended, modified, supplemented, extended, renewed, or restated from time to
time.

47)           “Noteholder Mortgages” means a
collective reference to each mortgage, deed of trust and any other document or
instrument under which any Lien on real property owned or leased by any Obligor
is granted to secure any Note Obligations or under which rights or remedies
with respect to any such Liens are governed, as the same may be amended,
modified, supplemented, extended, renewed, or restated from time to time.

48)           “Noteholders” means the
Persons holding Note Indebtedness.

49)           “Obligations” means (1) with
respect to Note Indebtedness, any principal, premium, if any, accrued and
unpaid interest, including Liquidated Damages, if any, or monetary penalty, or
damages, due by the Company or any Guarantor under the terms of the Notes or
the Indenture, (2) with respect to Working Capital Facility Indebtedness, any
principal (including reimbursement obligations with respect to letters of
credit whether or not drawn), interest (including, to the extent legally
permitted, all interest accrued thereon after the commencement of any
insolvency or liquidation proceeding at the rate, including any applicable
post-default rate, specified in the Working Capital Facility Documents, even if
such interest is not enforceable, allowable or allowed as a claim in such
proceeding), premium (if any), fees, indemnifications, reimbursements, expenses
and other liabilities payable by the Company or any guarantor of the Working
Capital Facility Indebtedness and (3) with respect to Pari Passu Indebtedness,
any principal (including reimbursement obligations with respect to letters of
credit whether or not drawn), interest (including, to the extent legally
permitted, all interest accrued thereon after the commencement of any
insolvency or liquidation proceeding at the rate, including any applicable
post-default rate, specified in the Pari Passu Indebtedness Documents, even if
such interest is not enforceable, allowable or allowed as a claim in such
proceeding), premium (if any), fees, indemnifications, reimbursements, expenses
and other liabilities payable by the Company or any guarantor of the Pari Passu
Indebtedness.

50)           “Obligor” means the Company
and any Guarantor.

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51)           “Officer” means, with respect
to any Person, the Chairman of the Board, the Vice 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.

52)           “Officers’ Certificate” means
a certificate signed on behalf of the Company by an Officer of the Company, who
must be the Chief Executive Officer, the Chief Financial Officer, the Treasurer
or the Chief Accounting Officer of the Company.

53)           “Original Issue
Date” means November 9, 2006.

54)           “Pari Passu
Collateral Agent” means, at any time, the Person serving at such time as
the “Collateral Agent” under the agreement governing any Pari Passu
Indebtedness or any other representative then most recently designated in
accordance with the applicable provisions of any such agreement, together with
its successors in such capacity.

55)           “Pari Passu Collateral” means
all of the assets of any Obligor (other than the Capital Stock or assets of
Guarantors that hold the Company’s 24 GHz or 39 GHz FCC Licenses), whether
real, personal or mixed, with respect to which a Lien is granted as security
for any Pari Passu Obligations.

56)           “Pari Passu Collateral Documents”
means this Agreement and any other document or instrument executed and
delivered at any time pursuant to any Pari Passu Indebtedness Document or
otherwise, pursuant to which a Lien is granted by an Obligor to secure any Pari
Passu Obligations or under which rights or remedies with respect to any such
Lien are governed, as the same may be amended, modified, supplemented,
extended, renewed, or restated from time to time.

57)           “Pari Passu Indebtedness”
means Indebtedness permitted by clause (2) of the second paragraph of Section
5.09 of the Indenture.

58)          “Pari Passu Indebtedness
Cap” means the principal amount outstanding under any Pari Passu
Indebtedness in an aggregate principal amount not to exceed $250.0 million.

59)           “Pari Passu Indebtedness Documents”
means the Pari Passu Collateral Documents, and any other documents, instruments
and agreements executed by or on behalf of any Obligor which is or becomes a
party to any Pari Passu Indebtedness Document and delivered to or for the Pari
Passu Collateral Agent, securing or relating to any Pari Passu Obligations, and
any other transaction contemplated by the Pari Passu Indebtedness Documents,
all as amended, restated, supplemented or modified from time to time.

60)           “Pari Passu Lenders” means the
Persons holding Pari Passu Indebtedness, including, without limitation, the
Pari Passu Collateral Agent.

61)           “Pari Passu Lien” means a Lien
granted to the Pari Passu Collateral Agent (or any other holder, or
representative of holders, of Pari Passu Indebtedness), at any time, upon any
assets of the Company or any Guarantor to secure the Pari Passu Obligations.

 

 G-10

 

 

62)           “Pari Passu Obligations” means
the Pari Passu Indebtedness and all other Obligations in respect Pari Passu
Indebtedness.

63)           “Person” or “person”
means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability
company or government or other entity.

64)           “Purchase Agreement” means the
purchase agreement, dated October 25, 2006, among the Company, the Guarantors
and the initial purchasers of the Initial Notes identified therein, as such
agreement may be amended, modified or supplemented from time to time in
accordance with its terms.

65)           “Qualified Indemnification Claim”
means any claim for indemnification which the Working Capital Facility
Collateral Agent or any Senior Lender has against any Obligor pursuant to the
indemnification obligations of the Company and the other Obligors under the
Working Capital Facility Documents as set forth in the Indemnification Claim
Notice (as defined below); provided, that (a) within five (5)
Business Days following delivery by the Collateral Agent or the Pari Passu
Collateral Agent, as applicable, of an Exercise Notice (as defined herein), the
Collateral Agent or Pari Passu Collateral Agent, as applicable, is provided
with (i) a reasonably detailed description of such claim, including the
approximate amount (if any) of such claim, if known (the “Indemnification
Claim Notice”), and (ii) copies of all correspondence, if any, with any
Obligor in respect of such claim, or notices, if any, delivered to any Obligor
in respect of such claim, and (b) promptly following a request therefor by the
Collateral Agent or Pari Passu Collateral Agent, as applicable, on or after the
date on which the Exercise Notice is delivered by the Collateral Agent or Pari
Passu Collateral Agent, as applicable, deliver such other information as may be
reasonably requested by the Collateral Agent or Pari Passu Collateral Agent, as
applicable, in respect of such claim to the extent that the Working Capital
Facility Collateral Agent or any Senior Lender has such information in its
actual possession or control.

66)           “refinance” means to
refinance, repay, prepay, replace, renew or refund.

67)           “Registration Rights Agreement”
means the registration rights agreement, dated as of the date of the Indenture,
among the Company, the Guarantors and the initial purchasers of the Initial
Notes identified therein, as such agreement may be amended, modified or
supplemented from time to time in accordance with its terms.

68)           “Required Junior Secured Parties”
means, at any time, those Noteholders and Pari Passu Lenders who, in the
aggregate, hold more than 50% of the aggregate principal amount of all Note
Indebtedness and Pari Passu Indebtedness then outstanding.  For purposes of this definition, Note
Indebtedness and Pari Passu Indebtedness registered in the name of, or
beneficially owned by, any Obligor or any of its Affiliates will be deemed not
to be outstanding.

69)           “Required Senior Lenders”
means, as applicable, those Senior Lenders required under the terms of the
Working Capital Facility Documents to approve any amendment or modification of
a Working Capital Facility Document, or any termination or waiver of any

 G-11
 

 

provision of a Working Capital Facility Document, or
any consent or departure by any of the Obligors therefrom.

70)           “Required Noteholders” means,
as applicable, the holders of an aggregate principal amount of all Note
Indebtedness then outstanding required to approve any amendment or modification
of a Note Document, or any termination or waiver of any provision of a Note
Document, or any consent or departure by any of the Obligors therefrom.  For purposes of this definition, Note
Indebtedness registered in the name of, or beneficially owned by, any Obligor
or any of its Affiliates will be deemed not to be outstanding.

71)           “Required Pari Passu Lenders”
means, as applicable, the holders of an aggregate principal amount of all Pari
Passu Indebtedness then outstanding required to approve any amendment or
modification of a Pari Passu Indebtedness Document, or any termination or
waiver of any provision of a Pari Passu Indebtedness Document, or any consent
or departure by any of the Obligors therefrom. For purposes of this definition,
Pari Passu Indebtedness registered in the name of, or beneficially owned by,
any Obligor or any of its Affiliates will be deemed not to be outstanding.

72)           “Restricted Subsidiary” of any
Person means any Subsidiary of such Person which at the time of determination
is not an Unrestricted Subsidiary.

73)           “Secured Debt Documents”
means, collectively, the Note Documents, the Working Capital Facility Documents
and any Pari Passu Indebtedness Documents.

74)           “Senior Lender Debt Cap” means
the principal amount outstanding under the Working Capital Facility in an
aggregate principal amount not to exceed 110% of the amount at any one time
outstanding under clause (1) of Section 5.09 of the Indenture (with
letters of credit being deemed to have a principal amount equal to the maximum
potential liability of the Company thereunder) not to exceed
$50.0 million, less the aggregate amount of all Net Proceeds of Asset
Sales applied by the Company to repay any Indebtedness under the Working
Capital Facility and effect a corresponding permanent commitment reduction
thereunder pursuant to Section 5.10 of the Indenture.

75)           “Senior Lenders” means the
Persons holding Working Capital Facility Indebtedness.

76)           “Series of Secured Debt”
means, severally, each of Working Capital Facility Indebtedness, Note
Indebtedness and Pari Passu Indebtedness.

77)           “Shared Collateral” means
Collateral that secures each of the Working Capital Facility Obligations, the
Note Obligations and any Pari Passu Obligations, provided that the Shared
Collateral with respect to Pari Passu Indebtedness shall not include the assets
and Capital Stock of Guarantors that hold the Company’s 24 GHz or 39 GHz FCC
Licenses.

78)           “Standard & Poor’s” means
Standard & Poor’s Corporation.

 G-12
 

 

 

79)           “Subsidiary”
means, with respect to any specified Person:

a.             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 and after giving
effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) to vote in the election of directors, managers or
trustees of the corporation, association or other business entity is at the
time owned or controlled, directly or indirectly, by that Person or one or more
of the other Subsidiaries of that Person (or a combination thereof); and

b.             any partnership (a) the sole general partner or the
managing general partner of which is such Person or a subsidiary of such Person
or (b) the only general partners of which are such Person or of one or more
Subsidiaries of such Person (or any combination thereof).

80)           “Trustee” shall include, in
addition to the Trustee referred to in the recitals hereto, the then acting
collateral agent under the Indenture and any successor thereto exercising
substantially the same rights and powers, or if there is no acting collateral
agent under the Indenture, the Noteholders holding a majority in principal
amount of Note Indebtedness then outstanding.

81)           “UCC” means the Uniform
Commercial Code as in effect in the State of New York or any other applicable
jurisdiction

82)           “Unrestricted Subsidiary”
means any Subsidiary of the Company that is designated by the Board of
Directors of the Company as an Unrestricted Subsidiary pursuant to a resolution
of the Board of Directors, but only to the extent such Subsidiary:

a.             has no Indebtedness other than Non-Recourse
Indebtedness;

b.             except as permitted by Section 5.11 to the
Indenture, is not a 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 other than
those that might be obtained at the time from Persons who are not Affiliates of
the Company or any Restricted Subsidiary;

c.             is a Person with respect to which neither the Company
nor any of its Restricted Subsidiaries has any direct or indirect obligation
(A) to subscribe for additional Equity Interests or (B) to maintain or preserve
such Person’s financial condition or to cause such Person to achieve any
specified levels of operating results; and

d.             has not guaranteed or otherwise directly or indirectly
provided credit support for any Indebtedness of the Company or any of its
Restricted Subsidiaries.

83)           “Voting Stock” of any
specified Person as of any date means the Capital Stock of such Person that is
at the time entitled to vote in the election of the Board of Directors of such
Person.

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84)           “Working Capital Facility”
means, one or more debt facilities, up to an aggregate principal amount of
$50.0 million, with banks or other institutional lenders providing for
revolving credit 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 (whether upon or
after termination or otherwise) or refinanced (including by means of sales of
debt securities to institutional investors) in whole or in part from time to
time.

85)           “Working Capital Facility
Collateral” means all of the assets of any Obligor, whether real, personal
or mixed, with respect to which a Lien is granted as security for any Working
Capital Facility Obligations.

86)           “Working Capital Facility
Collateral Agent” means, at any time, the Person serving at such time as
the “Collateral Agent” under the Working Capital Facility or any other
representative then most recently designated in accordance with the applicable
provisions of the Working Capital Facility, together with its successors in
such capacity.

87)           “Working Capital Facility
Documents” means the Working Capital Facility, the Working Capital Facility
Security Documents, and all agreements governing or relating to any Working
Capital Facility Obligations.

88)           “Working Capital Facility
Indebtedness” means:

a.             Indebtedness of the Company, the Guarantors and the
guarantors under the Working Capital Facility Agreement that was permitted to
be incurred and secured under each applicable Secured Debt Document (or as to
which the lenders under the Working Capital Facility Agreement obtained an
Officers’ Certificate at the time of incurrence to the effect that such
Indebtedness was permitted to be incurred and secured by all applicable Secured
Debt Documents); and

b.             Hedging Obligations incurred to hedge or manage interest
rate risk with respect to Working Capital Facility Indebtedness; provided,
that:

i.              such
Hedging Obligations are secured by a Working Capital Facility Lien on all of
the assets that secure Indebtedness under the Working Capital Facility
Agreement; and

ii.             such
Working Capital Facility Lien is senior to or on a parity with the Working
Capital Facility Liens securing Indebtedness under the Working Capital Facility
Agreement.

89)           “Working Capital Facility Lien”
means a Lien granted by a Working Capital Facility Security Document to the
Working Capital Facility Collateral Agent (or any Senior Lender or other
representative of the Senior Lenders), at any time, upon any assets of the
Company, any Guarantor or any guarantor under the Working Capital Facility
Agreement to secure Working Capital Facility Obligations.

 G-14
 

 

 

90)           “Working Capital Facility Obligations”
means the Working Capital Facility Indebtedness and all other Obligations in
respect of Working Capital Facility Indebtedness.

91)           “Working Capital Facility Security
Documents” means this Agreement and all security agreements, pledge
agreements, collateral assignments, mortgages, deeds of trust, collateral
agency agreements, control agreements or other grants or transfers for security
executed and delivered by the Company or any Guarantor creating (or purporting
to create) a Working Capital Facility Lien upon collateral in favor of the
Working Capital Facility Collateral Agent, in each case, as amended, modified,
renewed, restated or replaced, in whole or in part, from time to time, in
accordance with its terms.

(2)           Lien Priorities.

a.             Acknowledgment of Liens.

i.              The Working Capital Facility Collateral Agent hereby
acknowledges that (i) the Collateral Agent, acting for and on behalf of the
Noteholders, has been granted Liens upon the Noteholder Collateral pursuant to
the Note Documents to secure the Note Obligations and (ii) to the extent any
Pari Passu Indebtedness is outstanding, the Pari Passu Collateral Agent, acting
for and on behalf of the Pari Passu Lenders, has been granted Liens upon the
Pari Passu Collateral pursuant to the Pari Passu Indebtedness Documents to
secure the Pari Passu Obligations (subject to the principal amount thereof not
exceeding the Pari Passu Indebtedness Cap).

ii.             The Collateral Agent hereby
acknowledges that (i) the Working Capital Facility Collateral Agent, acting for
and on behalf of Senior Lenders, has been granted Liens upon the Working
Capital Facility Collateral pursuant to the Working Capital Facility Documents
to secure the Working Capital Facility Obligations (subject to the principal
amount thereof not exceeding the Senior Lender Debt Cap) and (ii) to the extent
any Pari Passu Indebtedness is outstanding, the Pari Passu Collateral Agent,
acting for and on behalf of the Pari Passu Lenders, has been granted Liens upon
the Pari Passu Collateral pursuant to the Pari Passu Indebtedness Documents to
secure the Pari Passu Obligations (subject to the principal amount thereof not
exceeding the Pari Passu Indebtedness Cap).

iii.            The Pari Passu Collateral Agent
hereby acknowledges that (i) the Working Capital Facility Collateral Agent,
acting for and on behalf of Senior Lenders, has been granted Liens upon the
Working Capital Facility Collateral pursuant to the Working Capital Facility
Documents to secure the Working Capital Facility Obligations (subject to the
principal amount thereof not exceeding the Senior Lender Debt Cap) and (ii) the
Collateral Agent, acting for and on behalf of the Noteholders, has been granted
Liens upon the Noteholder Collateral pursuant to the Note Documents to secure
the Note Obligations.

b.             Subordination. 
Notwithstanding the order or time of attachment, or the order, time or
manner of perfection, or the order or time of filing or recordation of any
document or instrument, or other method of perfecting a Lien in favor of the
Working Capital Facility Collateral Agent or any Senior Lender in any Shared
Collateral, and notwithstanding any conflicting provisions, terms or conditions
of the UCC or any other applicable law or the Note

 G-15
 

 

Documents, the Pari Passu Indebtedness Documents or
the Working Capital Facility Documents or any other circumstance whatsoever,
the Collateral Agent (on behalf of itself and the Noteholders) and the Pari
Passu Collateral Agent (on behalf of the Pari Passu Lenders) each hereby agree
that: (a) any Lien on the Shared Collateral securing any or all of the Working
Capital Facility Obligations (subject to the principal amount thereof not
exceeding the Senior Lender Debt Cap) now or hereafter held by the Working
Capital Facility Collateral Agent or any of the Senior Lenders shall be senior
and prior to any Lien on the Shared Collateral securing any or all of the Note
Obligations or Pari Passu Obligations; and (b) any Lien on the Shared
Collateral now or hereafter held by the Collateral Agent or any of the
Noteholders, or the Pari Passu Collateral Agent or any of the Pari Passu
Lenders, regardless of how acquired, shall be junior and subordinate in all
respects to all Liens on the Shared Collateral securing any or all of the
Working Capital Facility Obligations (subject to the principal amount thereof
not exceeding the Senior Lender Debt Cap). 
All Liens on the Shared Collateral securing any or all of the Working
Capital Facility Obligations (subject to the principal amount thereof not
exceeding the Senior Lender Debt Cap) shall be and remain senior to all Liens
on the Shared Collateral securing any or all of the Note Obligations or Pari
Passu Obligations for all purposes, whether or not any such Liens securing any
of the Working Capital Facility Obligations are subordinated to any Lien securing
any other obligation of the Company or any Guarantor, in each case, on the
terms and in the manner set forth in this Agreement.

c.             Pari Passu Liens. 
Notwithstanding the order or time of attachment, or the order, time or
manner of perfection, or the order or time of filing or recordation of any
document or instrument, or other method of perfecting a Lien in favor of the
Collateral Agent or any of the Noteholders in any Shared Collateral, and
notwithstanding any conflicting provisions, terms or conditions of the UCC or
any other applicable law or the Note Documents or the Pari Passu Indebtedness
Documents or any other circumstance whatsoever, the Collateral Agent (on behalf
of itself and the Noteholders) and the Pari Passu Collateral Agent (on behalf of
itself and the Pari Passu Lenders) each hereby agree that any Lien on the
Shared Collateral securing any or all of the Pari Passu Obligations (subject to
the principal amount thereof not exceeding the Pari Passu Indebtedness Cap) now
or hereafter held by the Pari Passu Collateral Agent or any Pari Passu Lender
or securing any or all of the Note Obligations now or hereafter held by the
Collateral Agent or any Noteholder, will to be pari passu to
one another, in each case, regardless of the time or order of attachment or
perfection, and otherwise on the terms and in the manner set forth in this
Agreement

d.             Prohibition on Contesting Liens.  Each of the Collateral Agent (for itself and
on behalf of each Noteholder), the Pari Passu Collateral Agent (for itself and
on behalf of each Pari Passu Lender) and the Working Capital Facility
Collateral Agent (for itself and on behalf of each Senior Lender for which it
is the Working Capital Facility Collateral Agent), agrees that it shall not
(and hereby waives any right to) contest or support any other Person in
contesting, in any proceeding (including, without limitation, any Insolvency
Proceeding), the priority, validity or enforceability of a Lien held by (x) the
Working Capital Facility Collateral Agent or any of the Senior Lenders in any
of the Working Capital Facility Collateral, (y) the Collateral Agent or any of
the Noteholders in any of the Noteholder Collateral or (z) the Pari Passu
Collateral Agent or any of the Pari Passu Lenders in any of the Pari Passu Collateral.

 G-16
 

 

 

e.             No New Liens. 
Until the Discharge of Working Capital Facility Obligations, (a) the
Collateral Agent agrees, for itself and on behalf of each Noteholder, that the
Collateral Agent and each Noteholder shall not demand or receive any Lien upon any
assets or properties of any Obligor unless the Working Capital Facility
Collateral Agent has been granted a Lien on such assets or properties which is
senior and prior to the Liens thereon of the Collateral Agent and the
Noteholders; (b) the Pari Passu Collateral Agent agrees, for itself and on
behalf of each Pari Passu Lender, that the Pari Passu Collateral Agent and each
Pari Passu Lender shall not demand or receive any Lien upon any assets or
properties of any Obligor unless the Working Capital Facility Collateral Agent
has been granted a Lien on such assets or properties which is senior and prior
to the Liens thereon of the Pari Passu Collateral Agent and the Pari Passu
Lenders; and (c) the parties hereto agree that, to the extent that the foregoing
provisions of this Section 2.5 are not complied with for any reason,
after the date hereof, any amounts received by or distributed to the Collateral
Agent and/or the Noteholders, or the Pari Passu Collateral Agent and/or the
Pari Passu Lenders, or any of them pursuant to or as a result of Liens granted
in contravention of this Section 2.5 shall be subject to Section 4.2.

(3)           Enforcement.

a.             Exercise of Remedies.

i.              Except as expressly set forth in Section 3.1(e)
below, prior to the Discharge of Working Capital Facility Obligations, whether
or not any Insolvency Proceeding has been commenced by or against any Obligor,
the Junior Secured Parties will not (i) exercise or seek to exercise any rights
or remedies (including setoff) with respect to any Shared Collateral, or
institute any action or proceeding with respect to such rights or remedies,
including, without limitation, any action of foreclosure, (ii) contest, protest
or object to any foreclosure proceeding or action brought by the Working
Capital Facility Collateral Agent or any Senior Lender in respect of the Shared
Collateral, or any exercise of any right under any cash management agreement,
landlord waiver or bailee’s letter or similar agreement or arrangement, in each
case applicable to Shared Collateral, or of any rights and remedies relating to
the Shared Collateral under the Working Capital Facility Documents or
otherwise, or (iii) object to the forbearance by the Working Capital Facility
Collateral Agent and the Senior Lenders or any of them from bringing or
pursuing any foreclosure proceeding or action or any other exercise of any
rights or remedies relating to the Shared Collateral.  Subject to Section 3.1(e) below, prior
to the Discharge of Working Capital Facility Obligations, the Working Capital Facility
Collateral Agent and the Senior Lenders shall have the exclusive right to
enforce rights, exercise remedies (including, without limitation, setoff and
the right to credit bid their debt) and make determinations regarding release,
disposition, or restrictions with respect to the Shared Collateral without any
consultation with or the consent of the Trustee, the Collateral Agent or the
Pari Passu Collateral Agent.  The
Collateral Agent agrees, for itself and on behalf of the Noteholders, and the
Pari Passu Collateral Agent agrees, for itself and on behalf of the Pari Passu
Lenders, that, unless and until the Discharge of Working Capital Facility
Obligations has occurred: (A) the Collateral Agent and the Noteholders, and the
Pari Passu Collateral Agent and the Pari Passu Lenders, will not commence, or
join with any Person (other than the Senior Lenders and the Working Capital
Facility Collateral Agent upon the request thereof) in commencing any
Insolvency Proceeding against any Obligor or any enforcement, collection,
execution, levy or foreclosure action or proceeding with respect to any Lien
held by it on the Shared Collateral

 G-17
 

 

under any of the Note Documents, the Pari Passu
Indebtedness Documents or otherwise; and (B) the Collateral Agent and the
Noteholders, and the Pari Passu Collateral Agent and the Pari Passu Lenders,
will not take any action that would hinder any exercise of remedies undertaken
by the Working Capital Facility Collateral Agent or any Senior Lender in
respect of the Shared Collateral under any of the Working Capital Facility
Documents, including any sale, lease, exchange, transfer, or other disposition
of any Shared Collateral, whether by foreclosure or otherwise.

ii.             Notwithstanding the foregoing,
however, the Collateral Agent or the Trustee, on the one hand, and the Pari
Passu Collateral Agent, on the other hand, may:

1.        file a claim or statement of interest with respect to the
Note Obligations or Pari Passu Obligations, as applicable, in any Insolvency
Proceeding commenced by or against one or more Obligors;

2.        take any action (not adverse to the priority status of the
Liens on the Shared Collateral securing the Working Capital Facility
Obligations, or the rights of the Working Capital Facility Collateral Agent or
the Senior Lenders to exercise remedies in respect thereof) in order to create,
perfect, preserve or protect its Lien on the Shared Collateral;

3.        file any necessary responsive or defensive pleadings in
opposition to any motion, claim, adversary proceeding or other pleading made by
any person objecting to or otherwise seeking the disallowance of the claims of
the Collateral Agent or the Noteholders, on the one hand, and the Pari Passu
Collateral Agent and the Pari Passu Lenders, on the other hand, including any
claims secured by the Collateral, if any, in each case in accordance with the
terms of this Agreement;

4.        vote on any plan of reorganization, file any proof of claim,
make other filings and make any arguments and motions that are, in each case,
in accordance with the terms of this Agreement, with respect to the Note
Obligations and the Shared Collateral, on the one hand, and the Pari Passu
Obligations and Pari Passu Collateral, on the other hand; or

5.        exercise any of its rights or remedies with respect to the
Collateral or commence an Insolvency Proceeding against any Obligor after the
termination of the 180-day period specified in Section 3.1(e) to the
extent permitted by Section 3.1(e).

iii.            Subject to Section 3.1(e)
below, in exercising rights and remedies with respect to the Shared Collateral,
the Working Capital Facility Collateral Agent and the Senior Lenders or any of
them may enforce the provisions of the Working Capital Facility Documents and
exercise remedies thereunder, all in such order and in such manner as they may
determine in the exercise of their sole discretion.  Such exercise and enforcement shall include,
without limitation, the rights of an agent appointed by them to sell or
otherwise dispose of Shared Collateral upon foreclosure, to incur expenses in connection
with such sale or disposition, and to exercise all the rights and remedies of a
secured party under the UCC of any applicable jurisdiction and of a secured
creditor under the Bankruptcy Code or similar laws of any applicable
jurisdiction.  Without limiting the
generality of the foregoing, unless and until the Discharge of Working Capital
Facility Obligations has occurred, except as expressly provided

 G-18
 

 

above in Sections 3.1(b)
or in Section 6.4(b), the sole right of the
Collateral Agent and the Noteholders, and the Pari Passu Collateral Agent and
the Pari Passu Lenders, with respect to the Shared Collateral is to hold a Lien
on the Shared Collateral pursuant to the Note Documents or the Pari Passu
Indebtedness Documents, as applicable, for the period and to the extent granted
therein and to receive a share of the proceeds thereof, if any, after the
Discharge of Working Capital Facility Obligations has occurred.

iv.            Subject to Section 3.1(e)
below, each of the Collateral Agent (for itself and on behalf of the
Noteholders) and the Pari Passu Collateral Agent (for itself and on behalf of
the Pari Passu Lenders), hereby waives any and all rights it or any of the
Noteholders or Pari Passu Lenders, as applicable, may have as a junior lien
creditor or otherwise to object to the manner in which the Working Capital
Facility Collateral Agent or any of the Senior Lenders seek to enforce or
collect any Working Capital Facility Obligations or any Liens granted in any of
the Shared Collateral.

v.             Notwithstanding anything to the contrary set forth
herein, in the event of the failure of the Company to make any payment in
respect of (i) the Note Indebtedness in accordance with the terms of the Note
Documents or upon the occurrence of any other Event of Default under the Note
Documents and for so long as such Event of Default under the Note Documents is
continuing, subject at all times to the provisions of Sections 2.2 and 4.2
hereof, or (ii) the Pari Passu Indebtedness in accordance with the terms of the
Pari Passu Indebtedness Documents or upon the occurrence of any other Event of
Default under the Pari Passu Indebtedness Documents and for so long as such
Event of Default under the Pari Passu Indebtedness Documents is continuing,
subject at all times to the provisions of Sections 2.2 and 4.2
hereof, in each case, commencing one hundred eighty (180) days after the
receipt by the Working Capital Facility Collateral Agent of the declaration by
the Trustee or the Collateral Agent, on the one hand, or Pari Passu Collateral
Agent, on the other hand, of such Event of Default under the Note Documents or
Pari Passu Indebtedness Documents, as applicable, and of the written demand by
the Trustee or the Collateral Agent, on the one hand, or the Pari Passu
Collateral Agent, on the other hand, to the Company for the accelerated payment
of all Note Obligations or Pari Passu Obligations, as applicable (unless any
Obligor is subject to an Insolvency Proceeding by reason of which such
declaration and the making of such demand is stayed, in which case, commencing
on the date of the commencement of such Insolvency Proceeding), the Trustee or
the Collateral Agent, on the one hand, or the Pari Passu Collateral Agent, on
the other hand, may take any action described in Section 3.1(a) above
with respect to its Liens on the Collateral but only so long as the Working
Capital Facility Collateral Agent is not already diligently pursuing the
exercise of its enforcement rights or remedies against, or diligently
attempting to vacate any stay or enforcement of its Liens on, all or any
material portion of the Shared Collateral, in the case of the Collateral Agent
and the Noteholders, and the Pari Passu Collateral, in the case of the Pari
Passu Collateral Agent and the Pari Passu Lenders (including, without limitation,
any of the following: subject to applicable laws, the solicitation of bids from
third parties to conduct the liquidation of all or any material portion of the
Shared Collateral, the engagement or retention of sales brokers, marketing
agents, investment bankers, accountants, auctioneers or other third parties for
the purpose of valuing, marketing, promoting and selling a material portion of
the Shared Collateral, the notification of account debtors to make payments to
the Working Capital Facility Collateral Agent or its agent, any action to take
possession of all or any material portion of the Shared Collateral or
commencement of any legal

 G-19
 

 

proceedings or actions against or with respect to all
or any material portion of the Shared Collateral).

(4)           Payments.

a.             Application of Proceeds.  Until the Discharge of Working Capital
Facility Obligations has occurred, all cash proceeds of Shared Collateral
received in connection with any exercise of remedies by the Working Capital
Facility Collateral Agent, including any sale or other disposition of, or
collection or other realization on, such Shared Collateral (except for payments
in respect of the Notes or the Pari Passu Obligations made in accordance with
any provision of the Working Capital Facility Agreement expressly permitting
such payments) shall be paid to the Working Capital Facility Collateral Agent
and shall be applied by the Working Capital Facility Collateral Agent to the
Working Capital Facility Indebtedness (subject to the principal amount thereof
not exceeding the Senior Lender Debt Cap) in accordance with the Working
Capital Facility Documents.  Promptly
following the Discharge of Working Capital Facility Obligations, the Working
Capital Facility Collateral Agent shall deliver to the Collateral Agent any
Shared Collateral and any proceeds of Shared Collateral held by it in the same
form as received, with any necessary or reasonably requested endorsements or as
a court of competent jurisdiction may otherwise direct.  The Collateral Agent agrees to hold any
Shared Collateral so received from the Working Capital Facility Collateral
Agent in its possession or control as bailee for the Pari Passu Collateral
Agent, and to use the same degree of care with respect to such Shared
Collateral as the Collateral Agent uses for similar property pledged to it as
collateral for indebtedness generally.

b.             Payments Over. 
Until the Discharge of Working Capital Facility Obligations, any Shared
Collateral or proceeds thereof received by any Junior Secured Party at any time
prior to the Discharge of Working Capital Facility Obligations (except for
payments in respect of the Notes or Pari Passu Obligations made in accordance
with any provision of the Working Capital Facility Agreement expressly
permitting such payments) shall be segregated and held in trust by the
Collateral Agent or Pari Passu Collateral Agent, as applicable.  The Collateral Agent or Pari Passu Collateral
Agent, as applicable, shall promptly send written notice to the Working Capital
Facility Collateral Agent upon receipt of such Shared Collateral or proceeds
and if directed by the Working Capital Facility Collateral Agent within ten
(10) Business Days after receipt by such the Working Capital Facility
Collateral Agent of such written notice, shall pay over such Shared Collateral
or proceeds to the Working Capital Facility Collateral Agent in the same form
as received for distribution, with any necessary or reasonably requested
endorsements, or as a court of competent jurisdiction may otherwise direct.  The Working Capital Facility Collateral Agent
is hereby authorized to make any such endorsements as the Working Capital
Facility Collateral Agent for the Collateral Agent, any such Noteholder, the
Pari Passu Collateral Agent, or any such Pari Passu Lender.  This authorization is coupled with an
interest and shall be irrevocable.

(5)           Other Agreements.

a.             Releases.

 

 G-20

 

 

i.              If, in connection with the exercise of the Working
Capital Facility Collateral Agent’s remedies in respect of the Shared
Collateral provided for in Section 3.1 or after the occurrence of an “Event
of Default” under the Working Capital Facility Documents, any Disposition in
lieu of foreclosure or other exercise of remedies on any of Shared Collateral
by any Obligor at the written direction, or with the approval, of the requisite
Senior Lenders or the Working Capital Facility Collateral Agent, as the case
may be, the Working Capital Facility Collateral Agent, for itself or on behalf
of any of the Senior Lenders, releases any of Working Capital Facility Lien on
any part of the Shared Collateral, then both the Note Liens and the Pari Passu
Liens on such Shared Collateral shall be automatically, unconditionally and
simultaneously released.

ii.             If in connection with any sale,
lease, exchange, transfer or other disposition of any Shared Collateral
(collectively, a “Disposition”) permitted under the terms of each of the
Working Capital Facility Documents, the Note Documents and the Pari Passu
Indebtedness Documents (other than in connection with the exercise of the
Working Capital Facility Collateral Agent’s remedies in respect of the Shared
Collateral provided for in Section 3.1), the Working Capital Facility
Collateral Agent, for itself or on behalf of any of the Senior Lenders,
releases its Liens on any of the Shared Collateral, other than in connection
with the Discharge of Working Capital Facility Obligations, then the Note Liens
and the Pari Passu Liens on such Shared Collateral shall be automatically,
unconditionally and simultaneously released; provided, that the
Note Liens upon the Shared Collateral securing the Note Obligations shall not
be released if the Disposition is subject to Section 6.01 of the
Indenture.

iii.            If (i) the Required Senior Lenders,
the Required Noteholders under the Note Documents and the Required Pari Passu
Lenders under the Pari Passu Indebtedness Documents consent to a release of any
or all of the Shared Collateral, and (ii) the Company delivers an Officers’
Certificate to the Working Capital Facility Collateral Agent, the Collateral
Agent and the Pari Passu Collateral Agent certifying that all such necessary
consents have been obtained, the Working Capital Facility Collateral Agent, for
itself and for the benefit of the Senior Lenders, the Collateral Agent, for
itself and for the benefit of the Noteholders, and the Pari Passu Collateral
Agent, for itself and for the benefit of the Pari Passu Lenders, shall
unconditionally and simultaneously release their Liens on such Shared
Collateral.

iv.            If the guarantee of the Note
Indebtedness by a Guarantor is released in accordance with the Note Documents,
the Note Liens on the Shared Collateral of such Guarantor shall be
automatically, unconditionally and simultaneously released.

v.             If the guarantee of the Working Capital Facility
Indebtedness by a Guarantor is released in accordance with the Working Capital
Facility Documents, the Working Capital Facility Liens on the Shared Collateral
of such Guarantor shall be automatically, unconditionally and simultaneously
released.

vi.            If the guarantee of the Pari Passu
Indebtedness by a Guarantor is released in accordance with the Pari Passu
Indebtedness Documents, the Pari Passu Liens on the Shared Collateral of such
Guarantor shall be automatically, unconditionally and simultaneously released.

 G-21
 

 

 

provided,
that, in each case, the
Collateral Agent and the Trustee have received all documentation, if any, that
may be required by the Trust Indenture Act in connection therewith.  In connection with any release of Collateral
as provided for above, the Collateral Agent will promptly execute any release
documentation with respect thereto reasonably requested by the Company.

vii.           Until the Discharge of Working
Capital Facility Obligations, each of the Collateral Agent, for itself and on
behalf of the Noteholders, and the Pari Passu Collateral Agent, for itself and
on behalf of the Pari Passu Lenders, hereby irrevocably constitutes and
appoints the Working Capital Facility Collateral Agent and any officer or agent
of the Working Capital Facility Collateral Agent, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of the Collateral Agent or such
Noteholder, on the one hand, and the Pari Passu Collateral Agent or such Pari
Passu Lender, on the other hand, or in the Working Capital Facility Collateral
Agent’s name, from time to time in the Working Capital Facility Collateral
Agent’s discretion, for the purpose of carrying out the terms of this Section
5.1, to take any and all appropriate action and to execute any and all
documents and instruments which may be necessary or desirable to accomplish the
purposes of this Section 5.1, including, without limitation, any
financing statement amendments, endorsements or other instruments or transfer
or release.  This power is coupled with
an interest and shall be irrevocable.

b.             Insurance. 
Until the Discharge of Working Capital Facility Obligations, the Working
Capital Facility Collateral Agent and the Senior Lenders shall have the sole
and exclusive right, subject to the rights of the Company under the relevant
Working Capital Facility Documents, to adjust settlement for any insurance
policy covering any Collateral in the event of any loss thereunder and to
approve any award granted in any condemnation or similar proceeding affecting
any Shared Collateral.  Until the
Discharge of Working Capital Facility Obligations, all proceeds of any such
policy and any such award shall be paid to the Working Capital Facility
Collateral Agent for the benefit of the Senior Lenders to the extent required
under the Working Capital Facility Agreement and the other Working Capital
Facility Documents and thereafter to be distributed to the Trustee or the
Collateral Agent (for the benefit of the Noteholders) to the extent required
under the Note Documents or the Pari Passu Indebtedness Documents.  If any Junior Secured Party shall, at any
time, receive any proceeds of any such insurance policy or any such award in
contravention of this Agreement, it shall pay such proceeds over to the Working
Capital Facility Collateral Agent in accordance with the terms of Section
4.2.  The Collateral Agent agrees to
hold any proceeds of any such policy and any such award so received from the
Working Capital Facility Collateral Agent in its possession or control as
bailee for the Pari Passu Collateral Agent and, promptly following receipt
thereof, to share such proceeds Equally and Ratably with the Pari Passu
Collateral Agent.

c.             Amendments to Working Capital
Facility Documents.

i.              The Working Capital Facility Documents may be amended,
supplemented or otherwise modified in accordance with their terms and the
Working Capital Facility Agreement may be refinanced, in each case, without
notice to, or the consent of any of the Junior Secured Parties, all without
affecting the lien subordination or other provisions of this Agreement; provided,
that the holders of such refinancing debt bind themselves in a writing
addressed to each of the Junior Secured Parties to the terms of this Agreement.

 G-22
 

 

 

ii.             The Company agrees that each
Noteholder Collateral Document shall include the following language:

“The security interests
securing the indebtedness and other obligations under the Indenture, dated as
of November 9, 2006, by and among the Company, the Guarantors named therein and
Wells Fargo Bank, National Association (the “Indenture”), the Notes and the Note
Guarantees (each, as defined in the Indenture) will be subordinated to the
security interests securing any future indebtedness and other obligations under
certain senior secured Working Capital Facility that the Company may enter into
after the date of the Indenture.  A copy
of the form of Intercreditor Agreement governing such subordination is
available from the Company upon written request.”

iii.            The Company agrees that each Pari
Passu Collateral Document shall include the following language:

“The security interests
securing the indebtedness and other obligations under the [Indenture/Credit
Agreement], dated as of _________ ___, ____, by and among the Company, the
Guarantors named therein, the Pari Passu Collateral Agent and the Pari Passu
Lenders (the [“Indenture”][“Credit Agreement”]) and the Guarantees (as defined
in the [Indenture/Credit Agreement]) will be subordinated to the security
interests securing any future indebtedness and other obligations under certain
senior secured Working Capital Facility that the Company may enter into after
the date of the [Indenture/Credit Agreement]. 
A copy of the form of Intercreditor Agreement governing such
subordination is available from the Company upon written request.”

provided, however, that if
the jurisdiction in which any such Noteholder Collateral Document or Pari Passu
Collateral Document will be filed prohibits the inclusion of the language above
or would prevent a document containing such language from being recorded, the
Working Capital Facility Collateral Agent and the Collateral Agent, on the one
hand, and the Working Capital Facility Collateral Agent and the Pari Passu
Collateral Agent, on the other hand, agree, prior to such Noteholder Collateral
Document or Pari Passu Collateral Document being entered into, to negotiate in
good faith replacement language stating that the Liens granted under such
Noteholder Collateral Document or Pari Passu Collateral Document is subject to
the provisions of this Agreement.

In addition, the Collateral Agent agrees that each
Noteholder Mortgage covering any Shared Collateral shall contain such other
language as the Working Capital Facility Collateral Agent may reasonably
request to reflect the subordination of such Noteholder Mortgage to the Working
Capital Facility Collateral Agent’s mortgages covering such Collateral.

iv.            In the event the Working Capital
Facility Collateral Agent or the Senior Lenders and the relevant Obligor enter
into any amendment, waiver or consent in respect of any of the Working Capital
Facility Security Documents for the purpose of adding to, or deleting from, or
waiving or consenting to any departures from any provisions of, any Working
Capital Facility Security Document or changing in any manner the rights of the
Working Capital Facility Collateral Agent, such Senior Lenders or any Obligor
thereunder, then such amendment, waiver or consent shall apply automatically to
any comparable provision of the Comparable Noteholder Collateral Document and
Comparable Pari Passu Collateral Document without the consent of any Junior
Secured Party and without any action by the Collateral Agent, the Pari Passu
Collateral Agent, or any Obligor; provided, that:

1.        no such amendment, waiver or consent shall have the effect
of:

 G-23
 

 

 

i.              removing assets subject to the Lien
of the Noteholder Collateral Documents or the Pari Passu Collateral Documents,
except to the extent that a release of such Lien is permitted or required by Section
5.1;

ii.             imposing duties on the Collateral
Agent without its consent or the Pari Passu Collateral Agent with its consent;

iii.            permitting other Liens on the Shared
Collateral not permitted under the terms of the Note Documents, the Pari Passu
Indebtedness Documents or Section 6; and

2.        notice of such amendment, waiver or consent shall have been
given to the Collateral Agent and the Pari Passu Collateral Agent within ten
(10) Business Days after the effective date of such amendment, waiver or
consent.

d.             Rights as Unsecured Creditors.  Notwithstanding anything to the contrary in
this Agreement, each Junior Secured Party may exercise rights and remedies as
an unsecured creditor against any Obligor in accordance with the terms of the
Note Documents or Pari Passu Indebtedness Documents, as applicable, and
applicable law.  For the avoidance of
doubt, nothing in this Agreement shall prohibit the receipt by a Junior Secured
Party of the required payments of interest on and principal of the Notes or
Pari Passu Obligations, as applicable, so long as such receipt is not the
direct or indirect result of the exercise by the Collateral Agent or any
Noteholder, on the one hand, or the Pari Passu Collateral Agent or any Pari
Passu Lender, on the other hand, of rights or remedies as a secured creditor or
enforcement of any Lien held by any of them in contravention of this
Agreement.  In the event that a Junior
Secured Party becomes a judgment lien creditor in respect of Collateral as a
result of its enforcement of its rights as an unsecured creditor, such judgment
lien shall be subordinated to the Liens securing Working Capital Facility
Obligations on the same basis as the other Liens securing the Note Obligations
and the Pari Passu Obligations are so subordinated to such Working Capital
Facility Obligations under this Agreement.

e.             Bailee for Perfection.

i.              The Working Capital Facility Collateral Agent agrees to
hold all of the Shared Collateral in its possession or control (or in the
possession or control of its agents or bailees) for the benefit of and on
behalf of the Collateral Agent and the Pari Passu Collateral Agent solely for
the purpose of perfecting the security interest granted in such Shared
Collateral pursuant to the Noteholder Collateral Documents and the Pari Passu
Collateral Documents (such provision being intended, among other things, to
satisfy the requirements of Sections 8-301(a)(2) and 9-313(c) of
the UCC), subject to the terms and conditions of this Section 5.5.

ii.             Until the Discharge of Working
Capital Facility Obligations, the Working Capital Facility Collateral Agent
shall be entitled to deal with the Shared Collateral in its possession or
control in accordance with the terms of the Working Capital Facility Documents
as if the Lien of the Collateral Agent under the Noteholder Collateral
Documents and the Lien of the Pari Passu Collateral Agent under the Pari Passu
Collateral Documents did not exist.  The
rights of the Collateral Agent and the Pari Passu Collateral Agent shall at all
times be subject to

 G-24
 

 

the terms of this Agreement and to the Working Capital Facility
Collateral Agent’s rights under the Working Capital Facility Documents.

iii.            The Working Capital Facility
Collateral Agent shall not have any obligation whatsoever to any Junior Secured
Party to assure that the Shared Collateral in the Working Capital Facility
Collateral Agent’s possession or control is genuine or owned by any Obligor or
to preserve rights or benefits of any Person except as expressly set forth in
this Section 5.5.  The duties or
responsibilities of the Working Capital Facility Collateral Agent under this Section
5.5 shall be limited solely to holding the Shared Collateral in its
possession or control as bailee for the Collateral Agent or the Pari Passu
Collateral Agent, as applicable, for purposes of perfecting the Lien held by
the Collateral Agent or Pari Passu Collateral Agent, and to using the same
degree of care with respect to such Shared Collateral as the Working Capital
Facility Collateral Agent uses for similar property pledged to it as collateral
for indebtedness generally.  The Working
Capital Facility Collateral Agent shall not be liable to any Junior Secured
Party for any action taken or omitted by it hereunder or in connection
herewith, except to the extent of the Working Capital Facility Collateral Agent’s
own gross negligence or willful misconduct as determined by a court of
competent jurisdiction.

iv.            The Working Capital Facility
Collateral Agent shall not have, by reason of the Note Documents, the Pari
Passu Indebtedness Documents or this Agreement or any other document a
fiduciary relationship in respect of any Junior Secured Party.

v.             Upon the Discharge of Working Capital Facility
Obligations, the Working Capital Facility Collateral Agent shall deliver to the
Collateral Agent the Shared Collateral in its possession or control (or in the
possession or control of its agents or bailees) together with any necessary or
reasonably requested endorsements (or otherwise allow the Collateral Agent to
obtain control of such Shared Collateral), or as a court of competent
jurisdiction may otherwise direct.  The
Collateral Agent agrees to hold any Shared Collateral so received from the
Working Capital Facility Collateral Agent in its possession or control as
bailee for the Pari Passu Collateral Agent, and to use the same degree of care
with respect to such Shared Collateral as the Collateral Agent uses for similar
property pledged to it as collateral for indebtedness generally.

f.              Purchase Option.

i.              Upon the occurrence and during the continuance of an
Event of Default or an event of default under the Working Capital Facility
Documents that is not cured or waived within thirty (30) days, the Collateral
Agent on behalf of Noteholders, and the Pari Passu Collateral Agent on behalf
of the Pari Passu Lenders, after written demand by the Trustee or the
Collateral Agent, on the one hand, and/or the Pari Passu Collateral Agent, on
the other hand, to the Company for the accelerated payment of all Note
Obligations or Pari Passu Obligations, as applicable, shall have the option at
any time upon five (5) Business Days’ prior written notice to the Working
Capital Facility Collateral Agent to elect to purchase a portion of the Working
Capital Facility Indebtedness from the Senior Lenders, ratably in proportion to
the outstanding Obligations of each outstanding Series of Secured Debt (in each
case, the “Purchasable Portion”). 
Such notice (an “Exercise Notice”) from the Collateral Agent or
Pari Passu Collateral Agent, as applicable, to the Working Capital Facility
Collateral Agent shall be irrevocable; provided, that the
Collateral Agent or Pari Passu Collateral Agent, as applicable, shall have the

 G-25
 

 

right within ten (10) days following receipt of the information
required to be delivered pursuant to clauses (a) and (b) of the definition of “Qualified
Indemnification Claim” to revoke such election to purchase such portion of the
Working Capital Facility Indebtedness; provided, further, that such
revocation is in writing duly signed by the Collateral Agent or Pari Passu
Collateral Agent, as applicable, and is received by the Working Capital
Facility Collateral Agent prior to the expiration of such ten-day period.

ii.             On the date specified by the
Collateral Agent or Pari Passu Collateral Agent in its respective Exercise
Notice (which shall not be less than five (5) Business Days, nor more than the
later of (i) thirty (30) days after the receipt by the Working Capital Facility
Collateral Agent of the Exercise Notice, and (ii) ten (10) days after receipt
by the Collateral Agent or Pari Passu Collateral Agent, as applicable, of the
information required to be delivered pursuant to clauses (a) and (b) of the
definition of “Qualified Indemnification Claim” (the later of such dates, the “Outside
Closing Date”)), the Working Capital Facility Collateral Agent and Senior
Lenders shall sell to the Collateral Agent and/or the Pari Passu Collateral
Agent, and the Collateral Agent and/or the Pari Passu Collateral Agent shall
purchase from the Working Capital Facility Collateral Agent and Senior Lenders,
the respective Purchasable Portion; provided, that (A) the
Working Capital Facility Collateral Agent and Senior Lenders shall retain all
rights to be indemnified or held harmless by any Obligor in accordance with the
terms of the Working Capital Facility Documents as to actions or events that
occurred or did not occur prior to the closing of the of the sale of the
Working Capital Facility Indebtedness to the Collateral Agent and/or the Pari
Passu Collateral Agent, but shall not retain any rights to the security
therefor, and (B) nothing contained in clause (A) above shall restrict or limit
the indemnification rights of the Trustee, the Collateral Agent, the
Noteholders, the Pari Passu Collateral Agent or the Pari Passu Lenders pursuant
to the Working Capital Facility Documents assumed as a result of the purchase
of the Working Capital Facility Indebtedness. 
The Working Capital Facility Collateral Agent hereby represents and
warrants that, as of the date hereof, no approval of any court or other
regulatory or governmental authority is required for such sale.

iii.            Upon the date of such purchase and
sale, the Collateral Agent and/or the Pari Passu Collateral Agent, as
applicable, shall (i) pay to the Working Capital Facility Collateral Agent, for
the benefit of Senior Lenders, as the purchase price therefore, the full amount
of the respective Purchasable Portion of all the Working Capital Facility
Indebtedness then outstanding and unpaid (including principal, interest, fees
and expenses, including reasonable attorneys’ fees and legal expenses but
excluding any early termination fee or prepayment penalty or premium payable
pursuant to the Working Capital Facility Agreement or any other Working Capital
Facility Document), (ii) furnish cash collateral to the Working Capital
Facility Collateral Agent in such amounts as the Working Capital Facility
Collateral Agent determines is reasonably necessary to secure the Working
Capital Facility Collateral Agent and Senior Lenders in connection with any
issued and outstanding letters of credit provided by the Working Capital Facility
Collateral Agent or Senior Lenders (or letters of credit that the Working
Capital Facility Collateral Agent has arranged to be provided by third parties
pursuant to the financing arrangements under the Working Capital Facility
Documents of the Working Capital Facility Collateral Agent and Senior Lenders
with the Company or any Obligor) to the Company or any Obligor (but not in any
event in an amount greater than 110% of the aggregate undrawn face amount of
such letters of credit), (iii) agree to reimburse the Working Capital Facility
Collateral Agent and Senior Lenders for any checks or other payments
provisionally credited to the

 G-26
 

 

Working Capital Facility Indebtedness, and/or as to which the Working
Capital Facility Collateral Agent or Senior Lenders has not yet received final
payment and (iv) agree to reimburse the Working Capital Facility Collateral
Agent and Senior Lenders in respect of Qualified Indemnification Claims which
in fact result in any loss, cost, damage or expense (including reasonable attorneys’
fees and legal expenses) to the Working Capital Facility Collateral Agent and
Senior Lenders; provided, that (A) in no event will the
Collateral Agent or Noteholders, on the one hand, or the Pari Passu Collateral
Agent or Pari Passu Lenders, on other other hand, have any liability for such
amounts in excess of the cash proceeds of Shared Collateral received by the
Collateral Agent or the Pari Passu Collateral Agent, as applicable, net of (1)
the reasonable costs of collection (including reasonable attorneys’ fees and
legal expenses) incurred by or on behalf of the Working Capital Facility
Collateral Agent or the Senior Lenders in respect of such Shared Collateral and
(2) any amounts that are required to be turned over to the Working Capital
Facility Collateral Agent or the Senior Lenders under this Agreement, including
pursuant to Section 6.6, (B) in no event shall the Collateral Agent or
any Noteholder, on the one hand, or the Pari Passu Collateral Agent or any Pari
Passu Lender, on the other hand, have any such liability for or in respect of
any indemnification claims (other than the Qualified Indemnification Claims),
(C) in no event shall the Collateral Agent or the Pari Passu Collateral Agent
have any such liability for any such losses, costs, damages or expenses to the
extent caused by or resulting from the gross negligence or willful misconduct
of the Working Capital Facility Collateral Agent, as determined by a final
non-appealable order of a court of competent jurisdiction, and (D) any amounts reimbursed
by the Collateral Agent or the Pari Passu Collateral Agent pursuant to this
clause (c)(iv) shall constitute Working Capital Facility Obligations.  Such purchase price and cash collateral shall
be remitted by wire transfer in federal funds to such bank account of the
Working Capital Facility Collateral Agent in New York, New York, as the Working
Capital Facility Collateral Agent may designate in writing to the Collateral
Agent and Pari Passu Collateral Agent for such purpose not less than three (3) Business
Days prior to the date on which such amounts are to be so remitted.  Interest shall be calculated to but excluding
the Business Day on which such purchase and sale shall occur if the amounts so
paid by the Collateral Agent and/or the Pari Passu Collateral Agent, as
applicable, to the bank account designated by the Working Capital Facility
Collateral Agent are received in such bank account prior to 1:00 p.m. (New York
City time) and interest shall be calculated to and including such Business Day
if the amounts so paid by the Collateral Agent and/or Pari Passu Collateral
Agent, as applicable, to the bank account designated by the Working Capital
Facility Collateral Agent are received in such bank account later than 1:00
p.m. (New York City time).

iv.            Such purchase shall be expressly
made without representation or warranty of any kind by the Working Capital
Facility Collateral Agent and Senior Lenders as to the Working Capital Facility
Indebtedness or otherwise and without recourse to the Working Capital Facility
Collateral Agent or Senior Lenders, except that the Working Capital Facility
Collateral Agent and Senior Lenders shall represent and warrant: (i) the amount
of the Working Capital Facility Indebtedness being purchased, (ii) that the
Working Capital Facility Collateral Agent and Senior Lenders own the Working
Capital Facility Indebtedness free and clear of any Liens or encumbrances and
(iii) the Working Capital Facility Collateral Agent and Senior Lenders have the
right to assign the Working Capital Facility Indebtedness and the assignment is
duly authorized.

 

 G-27

 

v.             The Working Capital Facility Collateral Agent agrees
that it shall give the Collateral Agent and the Pari Passu Collateral Agent
five (5) Business Days prior written notice of its intention to commence the
exercise of any enforcement right or remedy against the Shared Collateral.  In the event that during such five Business
Day period, the Collateral Agent and the Pari Passu Collateral Agent shall send
to the Working Capital Facility Collateral Agent the irrevocable notice of the
Collateral Agent’s and the Pari Passu Collateral Agent’s intention to exercise
the purchase option given by the Working Capital Facility Collateral Agent to
the Collateral Agent and Pari Passu Collateral Agent under this Section 5.6,
the Working Capital Facility Collateral Agent shall not commence any
foreclosure or other action to sell or otherwise realize upon the Shared
Collateral or immediately desist from taking any further action; provided,
that the purchase and sale with respect to the Working Capital Facility
Indebtedness provided for herein shall have closed by the Outside Closing Date
and the Working Capital Facility Collateral Agent shall have received payment
in full of the Working Capital Facility Indebtedness as provided for herein on
or before the Outside Closing Date. 
Nothing contained in this Section 5.6(e) shall restrict or
prohibit the Working Capital Facility Collateral Agent from taking action to
the extent that the Working Capital Facility Collateral Agent, in its good
faith judgment, deems such action to be necessary to preserve or protect the
Shared Collateral.

g.             Escrow.  In
connection with the issuance of any Series of Secured Debt, any Obligor may
enter into an escrow agreement (each, an “Escrow Agreement”) with an
escrow agent (each, an “Escrow Agent”), which may be the Collateral
Agent, the Working Capital Facility Collateral Agent or any Pari Passu
Collateral Agent pursuant to which such Obligor may deposit with such Escrow
Agent, from the proceeds of such Series of Secured Debt, an amount equal to that
amount of interest payments on the Series of Secured Debt specified in the
applicable Working Capital Facility Security Document, Note Collateral Document
or Pari Passu Collateral Document (the “Escrowed Interest”) and may
grant a security interest to the applicable Escrow Agent in such Escrowed
Interest to secure all Obligations under such Series of Secured Debt.  Notwithstanding anything to the contrary set
forth in this Agreement, the Escrowed Interest (and any earnings thereon) for a
Series of Secured Debt shall not secure any Series of Secured Debt other than
the Obligations under the Series of Secured Debt to which it is pledged and
shall be applied to payment of the Series of Secured Debt it secures in
accordance with the terms of the respective Escrow Agreement and the other
Working Capital Facility Documents, Note Documents or Pari Passu Indebtedness
Documents, as applicable.

h.             Collateral Shared Equally and Ratably Among Junior
Secured Parties.  Unless otherwise
agreed in writing by the Collateral Agent and the Pari Passu Collateral Agent,
the Junior Secured Parties hereby agree that the payment and satisfaction of
all of the Note Obligations and the Pari Passu Obligations will be secured
Equally and Ratably by the security interests in the Shared Collateral
established in favor of the Collateral Agent (for itself and for the benefit of
the Noteholders) and the Pari Passu Collateral Agent (for itself and for the
benefit of the Pari Passu Lenders).  It
is understood and agreed that nothing in this Section 5.8 is intended to
alter the priorities among the Junior Secured Parties and the Working Capital
Facility Collateral Agent and Senior Lenders as provided in Section 2
hereof.

i.              Voting.  Following the Discharge of Working Capital
Facility Obligations, (a) in connection with any decision by the Junior Secured
Parties under this Agreement, the votes of each Series of Secured Debt entitled
to vote thereon shall be cast in the manner provided by, and 

 G-28
 

 

in accordance with the
decision of the holders of such Series of Secured Debt made pursuant to the
terms of the corresponding Secured Debt Documents.  Following and in accordance with the outcome
of the applicable vote under its Secured Debt Documents, the Collateral Agent
and the Pari Passu Collateral Agent will cast all of its votes as a block in
respect of any vote under this Agreement; and (b) the Shared Collateral shall
be distributed as directed by the Required Junior Secured Parties.

j.              Intercreditor Decisions.

i.              No amendment or supplement to any Note Document or Pari
Passu Indebtedness Document that changes the date, amount or method of
calculation of the payment of principal of, or interest or premium (if any) on
the Note Indebtedness or the Pari Passu Indebtedness, in an a way that
adversely affects the rights of any holder of Note Indebtedness or the Pari
Passu Indebtedness, will become effective without the consent of the Collateral
Agent and Pari Passu Collateral Agent.

ii.             Except as set forth in clause (a)
above or in any other provision of this Agreement, the Collateral Agent and the
Noteholders, on the one hand, and the Pari Passu Collateral Agent and the Pari
Passu Lenders, on the other hand, may, at any time and from time to time,
without the consent of or notice to any other Junior Secured Party and without
impairing or releasing the obligations of any person under this Agreement, (i)
amend any agreement related solely to such Series of Secured Debt in accordance
with the terms thereof, (ii) release anyone liable in any manner under or in
respect of the obligations owing in connection with such Series of Secured Debt
(but only in respect of such obligations), and (iii) waive any provisions of
any agreement related solely to such Series of Secured Debt.

(6)           Insolvency Proceedings.

a.             Insolvency Proceedings Generally.  This Agreement shall be applicable both
before and after the filing of any petition by or against any Obligor under the
Bankruptcy Code or the commencement of any other Insolvency Proceedings and all
converted or succeeding cases in respect thereof, and all references herein to
any Obligor shall be deemed to apply to the trustee for any Obligor and any
Obligor as debtor-in-possession.  The
relative rights of the Working Capital Facility Collateral Agent, the
Collateral Agent and the Pari Passu Collateral Agent in or to any distributions
from or in respect of any Shared Collateral or proceeds of Collateral shall
continue after the filing of such petition on the same basis as prior to the
date of the petition, subject to any court order approving the financing of, or
use of cash collateral by, any Obligor as debtor-in-possession.

b.             Financing Issues. 
Until the Discharge of Working Capital Facility Obligations, if any
Obligor shall be subject to any Insolvency Proceeding and the Working Capital
Facility Collateral Agent or any Senior Lender shall desire (i) to permit the
use of “Cash Collateral” (as such term is defined in Section 363(a) of
the Bankruptcy Code) constituting Shared Collateral or (ii) to permit any
Obligor to obtain financing under Section 364 of the Bankruptcy Code (“DIP
Financing”), then the Collateral Agent, on behalf of itself and the
Noteholders, and the Pari Passu Collateral Agent, on behalf of the Pari Passu
Lenders, will raise no objection to such Cash Collateral use or DIP Financing
and to the extent the Liens securing the Working Capital Facility 

 G-29
 

 

Obligations (subject to the principal amount thereof not exceeding the
Senior Lender Debt Cap) are subordinated to or pari passu
with such DIP Financing, the Collateral Agent and the Pari Passu Collateral
Agent will subordinate their respective Liens on the Shared Collateral to the
Liens securing such DIP Financing (and all obligations relating thereto) and
will not request adequate protection or any other relief in connection
therewith (except, as expressly agreed by the Working Capital Facility
Collateral Agent or to the extent permitted by this Section 6.2 or by Section
6.4(b)); provided, that (i) the aggregate principal amount of
the DIP Financing plus the aggregate outstanding
principal amount of Working Capital Facility Indebtedness plus
the aggregate face amount of any letters of credit issued and not reimbursed
under the Working Capital Facility Agreement does not exceed the Senior Lender
Debt Cap and (ii) the Collateral Agent and the Noteholders, and the Pari Passu
Collateral Agent and the Pari Passu Lenders, retain the right to object to any
ancillary agreements or arrangements regarding Cash Collateral use or the DIP
Financing that are materially prejudicial to their interests.

c.             Relief from the Automatic Stay.  Each of the Collateral Agent (on behalf of
itself and the Noteholders) and the Pari Passu Collateral Agent (on behalf of
the Pari Passu Lenders) agree that, until the Discharge of Working Capital
Facility Obligations, none of them shall seek relief from the automatic stay or
any other stay in any Insolvency Proceeding in respect of the Shared
Collateral, without the prior written consent of the Working Capital Facility
Collateral Agent and the Required Senior Lenders.

d.             Adequate Protection.

i.              Subject to Section 6.2, each of the Collateral Agent
(on behalf of itself and the Noteholders) and the Pari Passu Collateral Agent
(on behalf of the Pari Passu Lenders), agree that none of them shall contest
(or support any other Person contesting):

1.        any request by the Working Capital Facility Collateral Agent
or the Senior Lenders for adequate protection; or

2.        any objection by the Working Capital Facility Collateral
Agent or the Senior Lenders to any motion, relief, action or proceeding based
on the Working Capital Facility Collateral Agent or the Senior Lenders claiming
a lack of adequate protection.

ii.             Notwithstanding the foregoing
provisions in this Section 6.4, in any Insolvency Proceeding:

1.        if the Working Capital Facility Collateral Agent or the
Senior Lenders (or any subset thereof) are granted adequate protection in the
form of additional collateral in connection with any Cash Collateral use or DIP
Financing, then the Collateral Agent (on behalf of itself or any of the
Noteholders) and the Pari Passu Collateral Agent (on behalf of itself or any of
the Pari Passu Lenders) may seek or request adequate protection in the form of
a Lien on such additional collateral, which Lien will be subordinated to the
Liens securing the Working Capital Facility Obligations (subject to the
principal amount thereof not exceeding the Senior Lender Debt Cap) and such
Cash Collateral use or DIP Financing (and all obligations relating thereto) on
the same basis as the other Note Liens or Pari Passu Liens, as applicable, are 

 G-30
 

 

so subordinated to the Working Capital Facility Obligations (subject to
the principal amount thereof not exceeding the Senior Lender Debt Cap) under
this Agreement; and

2.        in the event the Collateral Agent (on behalf of itself or any
of the Noteholders) or the Pari Passu Collateral Agent (on behalf of itself or
any of the Pari Passu Lenders) seeks or requests adequate protection in respect
of Note Obligations or Pari Passu Obligations, as applicable, and such adequate
protection is granted in the form of additional collateral, then the Collateral
Agent (on behalf of itself or any of the Noteholders) or the Pari Passu
Collateral Agent (on behalf of itself or any of the Pari Passu Lenders), as
applicable, agrees that the Working Capital Facility Collateral Agent shall
also be granted a senior Lien on such additional collateral as security for the
Working Capital Facility Obligations (subject to the principal amount thereof
not exceeding the Senior Lender Debt Cap) and for any Cash Collateral use or
DIP Financing provided by the Senior Lenders and that any Note Lien on such
additional collateral shall be subordinated to the Lien on such collateral
securing the Working Capital Facility Obligations (subject to the principal
amount thereof not exceeding the Senior Lender Debt Cap) and any such DIP
Financing provided by the Senior Lenders (and all obligations relating thereto)
and to any other Liens granted to the Senior Lenders as adequate protection on
the same basis as the other Note Liens or other Pari Passu Liens, as
applicable, are so subordinated to such Working Capital Facility Obligations
(subject to the principal amount thereof not exceeding the Senior Lender Debt
Cap) under this Agreement.  Except as
otherwise expressly set forth in Section 6.2 or Section 6.8 or in
connection with the exercise of remedies with respect to the Shared Collateral,
nothing herein shall limit the rights of any Junior Secured Party from seeking
adequate protection with respect to their rights in the Shared Collateral in
any Insolvency Proceeding (including adequate protection in the form of a cash
payment, periodic cash payments or otherwise) and the Working Capital Facility
Collateral Agent and the Senior Lenders agree that none of them will contest
(or support any other person contesting) any such request for adequate
protection that complies with and seeks relief not prohibited by the provisions
of this Section 6.

e.             No Waiver. 
Subject to Sections 3.1(a), (e) and Section 6.4(b)(ii),
nothing contained herein shall prohibit or in any way limit the Working Capital
Facility Collateral Agent or any Senior Lender from objecting in any Insolvency
Proceeding or otherwise to any action taken by any Junior Secured Party,
including, without limitation, action by a Junior Secured Party seeking
adequate protection with respect to its rights in the Shared Collateral in any
Insolvency Proceeding (including adequate protection in the form of a cash
payment, periodic cash payments or otherwise) or asserting any of its rights
and remedies under the Note Documents or Pari Passu Indebtedness Documents, as
applicable, or otherwise.

f.              Avoidance Recoveries.  If the Working Capital Facility Collateral
Agent or any Senior Lender; or Collateral Agent or any Noteholder; or Pari
Passu Collateral Agent or any Pari Passu Lender is required in any Insolvency
Proceeding or otherwise to turn over or otherwise pay to the estate of any
Obligor any amount (a “Recovery”), then the relevant Working Capital
Facility Indebtedness, Note Indebtedness, or Pari Passu Indebtedness shall be
reinstated from and after the Notice Delivery Date to the extent of such
Recovery and the Working Capital Facility Collateral Agent or any Senior
Lender, or Collateral Agent or any Noteholder, or Pari Passu Collateral Agent
or any Pari Passu Lender shall be entitled to all of the rights and remedies
with respect to such Recovery under the Working Capital Facility Documents,
Note Documents, Pari 

 G-31
 

 

Passu Indebtedness Documents or otherwise that it would have had if it
had not received the payment that formed the basis for such Recovery.  If this Agreement shall have been terminated
prior to such Recovery, this Agreement shall be reinstated in full force and
effect from and after the date (the “Notice Delivery Date”) on which the
Working Capital Facility Collateral Agent or any Senior Lender, or Collateral
Agent or any Noteholder, or Pari Passu Collateral Agent or any Pari Passu
Lender delivers a written notice to the Collateral Agent and the Pari Passu
Collateral Agent or Working Capital Facility Collateral Agent, as the case may
be, advising the Collateral Agent and the Pari Passu Collateral Agent or the
Working Capital Facility Collateral Agent, as the case may be, of such
Recovery, and such prior termination shall not diminish, release, discharge,
impair or otherwise affect the obligations of the parties hereto from and after
the Notice Delivery Date.

g.             Reorganization Securities.  If, in any Insolvency Proceeding, debt
obligations of the reorganized debtor secured by Liens upon any assets of the
reorganized debtor are distributed pursuant to a plan of reorganization or
similar dispositive restructuring plan, on account of the Working Capital
Facility Obligations, the Note Obligations and the Pari Passu Obligations,
then, to the extent the debt obligations distributed on account of the Working
Capital Facility Obligations (subject to the principal amount thereof not
exceeding the Senior Lender Debt Cap), the Note Obligations and the Pari Passu
Obligations are secured by Liens on the same assets, the provisions of this
Agreement will survive the distribution of such debt obligations pursuant to
such plan and will apply with like effect to the Liens securing such debt
obligations.

h.             Asset Sales in Bankruptcy.  Each of the Collateral Agent (for itself and
each of the Noteholders) and the Pari Passu Collateral Agent (for itself and
each of the Pari Passu Lenders) agree that none of them shall object to or
oppose a sale or other disposition of any Collateral free and clear of security
interests, liens or other claims under Section 363 of the Bankruptcy
Code if the Working Capital Facility Collateral Agent has consented to such
sale or disposition of such assets, and such motion does not impair the rights
of the Noteholders or the Pari Passu Lenders under Section 363(k) of the
Bankruptcy Code; provided, that the Senior Lender Debt Cap shall
be reduced by an amount equal to the net cash proceeds of such sale or other
disposition which are used to pay the principal or face amount of the Working
Capital Facility Indebtedness.

(7)           Reliance; Waivers: etc.

a.             Reliance.

i.              The consent by the Senior Lenders to the Lien on the
Shared Collateral granted to the Collateral Agent on behalf of the Noteholders,
and to the Pari Passu Collateral Agent on behalf of the Pari Passu Lenders, and
all loans and other extensions of credit made or deemed made on and after the
date hereof by the Working Capital Facility Collateral Agent or any of the
Senior Lenders to the Obligors, shall be deemed to have been given and made in
reliance upon this Agreement.  Each of
the Collateral Agent (on behalf of itself and the Noteholders) and the Pari
Passu Collateral Agent (on behalf of itself and the Pari Passu Lenders)
acknowledge that it and the Noteholders and Pari Passu Lenders, as applicable,
have, independently and without reliance on the Working Capital Facility
Collateral Agent or any Senior Lender, and based on documents and information
deemed by them appropriate, made 

 G-32
 

 

their own credit analysis and decision to enter into the Indenture or
the Pari Passu Indebtedness Documents, as applicable, this Agreement and the
transactions contemplated hereby and thereby, and they will continue to make
their own credit decision in taking or not taking any action under the
Indenture or the Pari Passu Indebtedness Documents, as applicable, or this
Agreement.

ii.             The Junior Secured Parties hereby
acknowledge, confirm and agree that, for the purposes of determining the Senior
Lender Debt Cap, the Working Capital Facility Collateral Agent and the Senior
Lenders shall be entitled to conclusively rely, and shall be fully protected in
conclusively relying, upon, without further inquiry, each certificate duly
executed by the president, the chief executive officer, the chief financial
officer, the treasurer, or the principal accounting officer of the Company in
the form established by the Working Capital Facility Agreement certifying that
such principal or face amount of Working Capital Facility Indebtedness is, at
the time of its incurrence, not greater than the Senior Lender Debt Cap, taking
into account the principal or face amount of any other Working Capital Facility
Indebtedness that will remain outstanding immediately following the incurrence
of such additional Working Capital Facility Indebtedness.  Such certificate shall be addressed to and
delivered to the Collateral Agent substantially concurrently with the delivery
of such certificate to the Working Capital Facility Collateral Agent and/or the
Senior Lenders; provided, that the Working Capital Facility
Collateral Agent’s and Senior Lenders’ ability to rely on such certificate
shall not be conditioned on the receipt of such certificate by the Collateral
Agent or the Pari Passu Collateral Agent.

iii.            The Working Capital Facility
Collateral Agent, the Senior Lenders, the Collateral Agent and the Noteholders
hereby acknowledge, confirm and agree that, for the purposes of determining the
Pari Passu Indebtedness Cap, the Pari Passu Collateral Agent and the Pari Passu
Lenders shall be entitled to conclusively rely, and shall be fully protected in
conclusively relying, upon, without further inquiry, each certificate duly
executed by the president, the chief executive officer, the chief financial
officer, the treasurer, or the principal accounting officer of the Company in
the form established by the applicable Pari Passi Indebtedness Document
certifying that such principal or face amount of Pari Passu Indebtedness is, at
the time of its incurrence, not greater than the Pari Passu Indebtedness Cap,
taking into account the principal or face amount of any other Pari Passu
Indebtedness that will remain outstanding immediately following the incurrence
of such additional Pari Passu Indebtedness. 
Such certificate shall be addressed to and delivered to the Collateral
Agent and the Working Capital Facility Collateral Agent substantially
concurrently with the delivery of such certificate to the Pari Passu Collateral
Agent and/or the Pari Passu Lenders; provided, that the Pari
Passu Collateral Agent’s and Pari Passu Lenders’ ability to rely on such
certificate shall not be conditioned on the receipt of such certificate by the
Collateral Agent or the Working Capital Facility Collateral Agent.

b.             No Warranties or Liability.  Each of the Collateral Agent (on behalf of
itself and the Noteholders) and the Pari Passu Collateral Agent (on behalf of
itself and the Pari Passu Lenders) acknowledges and agrees that neither the
Working Capital Facility Collateral Agent nor any Senior Lender has made any
express or implied representation or warranty, including, without limitation,
with respect to the execution, validity, legality, completeness,
collectibility, or enforceability of any of the Working Capital Facility
Obligations or the Working Capital Facility Documents.  The Working Capital Facility Collateral Agent
and the Senior Lenders will 

 G-33
 

 

be entitled to manage and supervise their respective loans and
extensions of credit to the Company in accordance with law and as they may
otherwise, in their sole discretion, deem appropriate, and the Working Capital
Facility Collateral Agent and the Senior Lenders may manage their loans and
extensions of credit without regard to any rights or interests that any of the
Junior Secured Parties have in the Shared Collateral or otherwise, except as
otherwise expressly provided in this Agreement. 
Neither the Working Capital Facility Collateral Agent nor any Senior
Lender shall have any duty to any of the Junior Secured Parties to act or
refrain from acting in a manner which allows, or results in, the occurrence or
continuance of an event of default or default under any agreements with any
Obligor (including, without limitation, the Note Documents and the Pari Passu
Indebtedness Documents), regardless of any knowledge thereof which they may
have or be charged with.

c.             No Waiver of Lien Priorities.

i.              No right of the Senior Lenders, the Working Capital
Facility Collateral Agent or any of them to enforce any provision of this
Agreement shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of any Obligor or by any act or failure to act by
any Senior Lender or the Working Capital Facility Collateral Agent, or by any
noncompliance by any Person with the terms, provisions and covenants of this
Agreement, any of the Working Capital Facility Documents, any of the Note
Documents or any of the Pari Passu Indebtedness Documents, regardless of any
knowledge thereof which the Working Capital Facility Collateral Agent or the
Senior Lenders, or any of them, may have or be otherwise charged with.

ii.             Without in any way limiting the
generality of the foregoing paragraph (but subject to the rights of the
Obligors under the Working Capital Facility Documents and subject to the
provisions of Section 5.3(a)), the Senior Lenders, the Working Capital
Facility Collateral Agent or any of one or more of them may, at any time and
from time to time, without the consent of, or notice to, any Junior Secured
Party, without incurring any liabilities to any Junior Secured Party and
without impairing or releasing the lien priorities and other benefits provided
in this Agreement (even if any right of subrogation or other right or remedy of
any Junior Secured Party is affected, impaired or extinguished thereby) do any one
or more of the following:

1.        change the manner, place or terms of payment or change or
extend the time of payment of, or renew, exchange, amend, increase or alter,
the terms of any of the Working Capital Facility Indebtedness or any Lien in
any Working Capital Facility Collateral or guaranty thereof or any liability of
any Obligor or any other Person to any of the Senior Lenders or the Working
Capital Facility Collateral Agent (including, without limitation, any increase
in or extension of any of the Working Capital Facility Indebtedness, without
any restriction as to the amount, tenor or terms of any such increase or
extension, subject to the principal amount thereof not exceeding the Senior
Lender Debt Cap) or otherwise amend, renew, exchange, extend, modify or
supplement in any manner any of the Working Capital Facility Documents;

2.        sell, exchange, release, surrender, realize upon, enforce or
otherwise deal with in any manner and in any order any part of the Working
Capital Facility Collateral or any liability of any Obligor or any other Person
to any of the Senior Lenders or the 

 G-34
 

 

Working Capital Facility Collateral Agent, or any liability incurred
directly or indirectly in respect thereof;

3.        settle or compromise any Working Capital Facility Obligations
or any other liability of any Obligor or any other Person or any Lien therefor
or any liability incurred directly or indirectly in respect thereof and apply
any sums by whomsoever paid and however realized to any liability (including,
without limitation, any of the Working Capital Facility Indebtedness) in any
manner or order; and

4.        exercise or delay in or refrain from exercising any right or
remedy against any Obligor or any other Person or any Working Capital Facility
Collateral or any Lien therefor, elect any remedy and otherwise deal freely
with any Obligor or any other Person or any Working Capital Facility Collateral
or any Lien therefor.

iii.            Each of the Collateral Agent (on
behalf of itself and the Noteholders) and the Pari Passu Collateral Agent (on
behalf of itself and the Pari Passu Lenders) also agrees that the Senior
Lenders and the Working Capital Facility Collateral Agent shall have no
liability to the Collateral Agent or any Noteholder, on the one hand, and the
Pari Passu Collateral Agent or any Pari Passu Lender, on the other hand, and
each of the Collateral Agent (on behalf of itself and the Noteholders) and the
Pari Passu Collateral Agent (on behalf of itself and the Pari Passu Lenders),
hereby waives any claim against any Senior Lender or the Working Capital
Facility Collateral Agent, arising out of any and all actions which any of the
Senior Lenders or the Working Capital Facility Collateral Agent may take or
permit or omit to take with respect to: (i) any of the Working Capital Facility
Documents, (ii) the collection of any of the Working Capital Facility
Obligations or (iii) the foreclosure upon, or sale, liquidation or other
disposition of, any of the Working Capital Facility Collateral.  Each of the Collateral Agent (on behalf of itself
and the Noteholders) and the Pari Passu Collateral Agent (on behalf of itself
and the Pari Passu Lenders), agrees that the Senior Lenders and the Working
Capital Facility Collateral Agent has no duty to them in respect of the
maintenance or preservation of the Working Capital Facility Collateral, the
Working Capital Facility Obligations or otherwise.

iv.            Each of the Collateral Agent (on
behalf of itself and the Noteholders) and the Pari Passu Collateral Agent (on
behalf of itself and the Pari Passu Lenders) agrees not to assert and hereby
waives, to the fullest extent permitted by law, any right to demand, request,
plead or otherwise assert or otherwise claim the benefit of, any marshalling,
appraisal, valuation or other similar right that may otherwise be available
under applicable law or any other similar rights a junior secured creditor may
have under applicable law.

d.             Obligations Unconditional.  All rights, interests, agreements and
obligations of the Working Capital Facility Collateral Agent and the Senior
Lenders, the Collateral Agent and the Noteholders, and the Pari Passu
Collateral Agent and the Pari Passu Lenders, respectively, hereunder shall
remain in full force and effect irrespective of:

i.              any lack of validity or enforceability of any Working
Capital Facility Document, any Note Document or any Pari Passu Indebtedness
Document;

 G-35
 

 

ii.             any change in the time, manner or
place of payment of, or in any other terms of, all or any of the Working
Capital Facility Obligations, Note Obligations or Pari Passu Obligations, or
any amendment or waiver or other modification (including, without limitation,
any increase in the amount thereof, whether by course of conduct or otherwise)
of the terms of (i) the Working Capital Facility Agreement or any other Working
Capital Facility Document, (ii) the Indenture or any other Note Document, or
(iii) any Pari Passu Indebtedness Document;

iii.            any amendment, waiver or other
modification, whether in writing or by course of conduct or otherwise, of all
or any of the Working Capital Facility Obligations, Note Obligations or Pari
Passu Obligations or any guarantee thereof;

iv.            the commencement of any Insolvency
Proceeding in respect of any Obligor; or

v.             any other circumstances which otherwise might constitute
a defense available to, or a discharge of, any Obligor in respect of any of the
Working Capital Facility Obligations, or of any Junior Secured Party in respect
of this Agreement.

vi.            Nothing in this Section 7.4
shall be construed as a consent or waiver by the Working Capital Facility
Collateral Agent or any Senior Lender to any action by the Collateral Agent or
the Noteholders or under any of the Note Documents, or any action by the Pari
Passu Collateral Agent and the Pari Passu Lenders under any of the Pari Passu
Indebtedness Documents, that is not otherwise permitted under the Working
Capital Facility Documents.

(8)           Miscellaneous.

a.             Conflicts. 
In the event of any conflict between the provisions of this Agreement
and the provisions of any of the Working Capital Facility Documents, the Note
Documents or the Pari Passu Indebtedness Documents, the provisions of this
Agreement shall govern.  In the event of
any conflict between any instruction, request or direction given by the Working
Capital Facility Collateral Agent to the Trustee or any Junior Secured Party
pursuant to, and in accordance with, this Agreement and any instruction,
request or direction given by any Senior Lender to the Trustee or any Junior
Secured Party pursuant to, and in accordance with, this Agreement, the
instruction, request or direction given by the Working Capital Facility
Collateral Agent shall govern.

b.             Continuing Nature of this Agreement.  This Agreement shall continue to be effective
until only one Series of Secured Debt remains outstanding.  This is a continuing agreement of lien
subordination, and the Working Capital Facility Collateral Agent and Senior
Lenders may continue, at any time and without notice to any Junior Secured
Party, to extend credit and other financial accommodations and lend monies to
or for the benefit of the Obligors in reliance on this Agreement.  Each of the Collateral Agent, on behalf of
itself and, to the extent permitted by applicable law, the Noteholders, and the
Pari Passu Collateral Agent, on behalf of itself and, to the extent permitted
by applicable law, the Pari Passu Lenders, hereby waives any right it may have
under applicable law to revoke this Agreement or any of the provisions of this
Agreement.  The terms of this Agreement
shall survive, and shall continue in full force and effect, in any Insolvency
Proceeding.

 G-36

 

 

c.             Amendments; Waivers.  No amendment, modification or waiver of any
of the provisions of this Agreement shall be deemed to be made unless the same
shall be in writing signed by the Collateral Agent, the Pari Passu Collateral
Agent and the Working Capital Facility Collateral Agent and each waiver, if
any, shall be a waiver only with respect to the specific instance involved and
shall in no way impair the rights of the parties making such waiver or the
obligations of the other parties to such party in any other respect or at any
other time.  The Company and any other
Obligor shall not have any right to amend, modify or waive any provision of
this Agreement, nor shall any consent or signed writing be required of any of them
to effect any amendment, modification or waiver of any provision of this
Agreement.

d.             Information Concerning Financial Condition of the
Company and its Subsidiaries.  The
Working Capital Facility Collateral Agent and the Senior Lenders, in the first
instance, the Collateral Agent and the Noteholders, in the second instance, and
the Pari Passu Collateral Agent and the Pari Passu Lenders, in the third
instance, shall each be responsible for keeping themselves informed of (a) the
financial condition of the Company and its subsidiaries and all Obligors in
respect of the Working Capital Facility Obligations or the Note Obligations, as
the case may be, and (b) all other circumstances bearing upon the risk of
nonpayment of the Working Capital Facility Obligations, the Note Obligations or
the Pari Passu Obligations.  The Working
Capital Facility Collateral Agent and the Senior Lenders shall have no duty to
advise any Junior Secured Party of information known to it or them regarding
such condition or any such circumstances or otherwise.  In the event the Working Capital Facility
Collateral Agent or any of the Senior Lenders, in its or their sole discretion,
undertakes at any time or from time to time to provide any such information to
any Junior Secured Party, it or they shall be under no obligation (i) to
provide any additional information or to provide any such information on any
subsequent occasion, (ii) to undertake any investigation or (iii) to disclose
any information which, pursuant to accepted or reasonable commercial finance
practices, such party wishes to maintain confidential, so long as the failure
to disclose such information will not render information which was disclosed
materially misleading.  None of the
Junior Secured Parties shall have a duty to advise the Working Capital Facility
Collateral Agent or any Senior Lender of information known to it or them
regarding such condition or any such circumstances or otherwise.  In the event any Junior Secured Party, in its
or their sole discretion, undertakes at any time or from time to time to provide
any such information to the Working Capital Facility Collateral Agent or any
Senior Lender, it or they shall be under no obligation (i) to provide any
additional information or to provide any such information on any subsequent
occasion, (ii) to undertake any investigation or (iii) to disclose any
information which, pursuant to accepted or reasonable commercial finance
practices, such party wishes to maintain confidential, so long as the failure
to disclose such information will not render information which was disclosed
materially misleading.

e.             Application of Payments.  As among the Working Capital Facility
Collateral Agent and the Senior Lenders, in the first instance, and the
Collateral Agent and the Noteholders, in the second instance, and the Pari
Passu Collateral Agent and the Pari Passu Lenders, in the third instance, all
payments received by the Working Capital Facility Collateral Agent or the
Senior Lenders may be applied, reversed and reapplied, in whole or in part, to
such part of the Working Capital Facility Indebtedness (subject to the
principal amount thereof not exceeding the Senior Lender Debt Cap) as the
Working Capital Facility Collateral Agent and/or the Senior Lenders, in their
sole discretion, deem appropriate.  The
Collateral Agent (on behalf of itself and

 G-37
 

 

the Noteholders) and the Pari Passu Collateral Agent (on behalf of
itself and the Pari Passu Lenders) assents to any extension or postponement of
the time of payment of the Working Capital Facility Indebtedness or any part
thereof and to any other indulgence with respect thereto, to any substitution,
exchange or release of any Shared Collateral which may at any time secure any
part of the Working Capital Facility Obligations and to the addition or release
of any other Person primarily or secondarily liable therefor.

f.              Notices. 
All notices to the Noteholders, the Pari Passu Lenders and the Senior
Lenders permitted or required under this Agreement may be sent to the
Collateral Agent, the Pari Passu Collateral Agent and the Working Capital
Facility Collateral Agent, respectively. 
Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and
may be personally served, telecopied, electronically mailed or sent by courier
service or U.S. mail and shall be deemed to have been given when delivered in
person or by courier service, upon receipt of a telecopy or electronic mail or
four (4) Business Days after deposit in the U.S. mail (registered or certified,
with postage prepaid and properly addressed). 
For the purposes hereof, the addresses of the parties hereto shall be as
set forth below each party’s name on the signature pages hereto, or, as to each
party, at such other address as may be designated by such party in a written
notice to all of the other parties.

g.             Joinder of Pari Passu Lenders.  The Pari Passu Collateral Agent and the Pari
Passu Lenders may, upon compliance with the relevant provisions of the Secured
Debt Documents, become “Junior Secured Parties” hereunder by executing and
delivering to each of the Working Capital Facility Collateral Agent and the
Collateral Agent (a) a joinder agreement in the form attached hereto as Exhibit
A (“Joinder Agreement”) and (b) a copy of the agreements evidencing
such Pari Passu Indebtedness to which such Person is a party. Upon the
execution and delivery of any such copy of this Agreement by any such Person,
such Person, shall, upon delivery thereof to each of the Working Capital
Facility Collateral Agent and the Collateral Agent, thereafter become a Junior
Secured Party for all purposes of this Agreement.

h.             Further Assurances.

i.              The Working Capital Facility Collateral Agent (on
behalf of itself and the Senior Lenders), the Collateral Agent (on behalf of
itself and the Noteholders), the Pari Passu Collateral Agent (on behalf of
itself and the Pari Passu Lenders) and the Company, agree that each of them
shall take such further action and shall execute and deliver such additional
documents and instruments (in recordable form, if requested) as the Working
Capital Facility Collateral Agent, the Collateral Agent or the Pari Passu
Collateral Agent may reasonably request to effectuate the terms of and the Lien
priorities contemplated by this Agreement.

i.              Governing Law. 
This Agreement has been delivered and accepted at and shall be deemed to
have been made at New York, New York and shall be governed by and construed and
enforced in accordance with the laws of the State of New York.

j.              Binding on Successors and Assigns.  This Agreement shall be binding upon the
Working Capital Facility Collateral Agent, the Senior Lenders, the Trustee, the
Collateral Agent, the Noteholders, the Pari Passu Collateral Agent, the Pari
Passu Lenders, and their respective permitted successors and assigns.

 G-38
 

 

 

k.             Specific Performance.  Each of the Working Capital Facility
Collateral Agent and the Senior Lenders, in the first instance, the Collateral
Agent and the Noteholders, in the second instance, and the Pari Passu
Collateral Agent and the Pari Passu Lenders, in the third instance, may demand
specific performance of this Agreement. 
The Working Capital Facility Collateral Agent (on behalf of itself and
the Senior Lenders), the Collateral Agent (on behalf of itself and the
Noteholders) and the Pari Passu Collateral Agent (on behalf of itself and the
Pari Passu Lenders) hereby irrevocably waive any defense based on the adequacy
of a remedy at law and any other defense which might be asserted to bar the
remedy of specific performance in any action which may be brought by the
Collateral Agent or the Noteholders, the Working Capital Facility Collateral
Agent or the Senior Lenders, or the Pari Passu Collateral Agent or the Pari
Passu Lenders, as the case may be.

l.              Section Titles: Time Periods; Capacities.  The section titles contained in this
Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of this Agreement.  In the computation of time periods, unless
otherwise specified, the word “from” means “from and including” and each of the
words “to” and “until” means “to but excluding” and the word “through” means “to
and including”.  All references to the
Company or any Guarantor shall include the Company or such Guarantor as an
obligor under the Working Capital Facility Documents, the Note Documents or the
Pari Passu Indebtedness Documents, regardless of its capacity as a Company or
guarantor thereunder.

m.            Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall be an original and all of which shall together constitute one and
the same document.  Delivery of an
executed counterpart of this Agreement by facsimile or electronic transmission
shall be equally as effective as delivery of an original executed counterpart of
this Agreement.  Any party delivering an
executed counterpart of this Agreement by facsimile or electronic transmission
also shall deliver an original executed counterpart of this Agreement, but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Agreement.

n.             Authorization. 
By its signature, each Person executing this Agreement on behalf of a
party hereto represents and warrants to the other parties hereto that it is
duly authorized to execute this Agreement.

o.             No Third Party Beneficiaries.  This Agreement and the rights and benefits
hereof shall inure to the benefit of each of the parties hereto and its
respective successors and assigns and shall inure to the benefit of each of the
Senior Lenders, the Noteholders and the Pari Passu Lenders.  Nothing in this Agreement shall impair, as
between the Obligors and the Working Capital Facility Collateral Agent and the
Senior Lenders, or as between the Obligors and the Trustee, the Collateral
Agent and the Noteholders, or as between the Obligors and the Pari Passu
Collateral Agent and the Pari Passu Lenders, the obligations of the Obligors to
pay principal, interest, fees and other amounts as provided in the Working
Capital Facility Documents, the Note Documents and the Pari Passu Indebtedness
Documents, respectively.

p.             Subrogation. 
With respect to the value of any payments or distributions in cash or
other assets that any of the Noteholders or the Collateral Agent, on the one
hand, or any of the Pari Passu Lenders or the Pari Passu Collateral Agent, on
the other hand, pays over to the

 G-39
 

 

Working Capital Facility Collateral Agent or the Senior Lenders under
the terms of this Agreement (including, without limitation, any payments
pursuant to Section 5.6(b)), the Noteholders and the Collateral Agent,
on the one hand, and the Pari Passu Lenders and the Pari Passu Collateral
Agent, on the other hand, shall be subrogated to the rights of the Working
Capital Facility Collateral Agent and the Senior Lenders; provided, that
the Collateral Agent (on behalf of itself and the Noteholders) and the Pari
Passu Collateral Agent (on behalf of itself and the Pari Passu Lenders) hereby
agrees not to assert or enforce all such rights of subrogation it may acquire
as a result of any payment hereunder until the Discharge of Working Capital
Facility Obligations.  The Company
acknowledges and agrees that the value of any payments or distributions in
cash, property or other assets received by the Collateral Agent, the
Noteholders, the Pari Passu Collateral Agent or the Pari Passu Lenders that are
paid over to the Working Capital Facility Collateral Agent or the Senior
Lenders pursuant to this Agreement shall not reduce any of the Note
Indebtedness or the Pari Passu Indebtedness, as applicable.

q.             Certain Regulatory Requirements.  Notwithstanding any provision to the contrary
in this Intercreditor Agreement, no party to this Intercreditor Agreement will
take any action hereunder in contravention of Section 7.18 of the
Noteholder Collateral Agreement.

[The
remainder of this page has been intentionally left blank.]

 G-40
 

 

 

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

[                                                                                       ]
  as the Working Capital Facility Collateral
Agent for the Senior Lenders

By:                                                                                                  
        Name:
        Title:

Address:

[                                                                       ]

[                                                                       ]

Attention: [                                   ]

Telecopy No.: [                                             ]

email address: [                                             ]

[                                                                                       ],
  as Trustee

By:                                                                                                  

        Name: [                                   ]
        Title: [                                     ]

Address:

[                                                                       ]

[                                                                       ]

Attention: [                                   ]

Telecopy No.: [                                             ]

email address: [                                             ]

[                                                                                       ],
  as Collateral Agent

By:                                                                                                  

Name: [                                                     ]
        Title: [                                                     ]

Address:

[                                                                       ]

[                                                                       ]

Attention: [                                   ]

Telecopy No.: [                                             ]

email address: [                                             ]

[                                                                                       ],
  as Pari Passu Collateral Agent

 G-41
 

 

 

By:                                                                                                  

Name: [                                                     ]
        Title: [                                                     ]

Address:

[                                                                       ]

[                                                                       ]

Attention: [                                   ]

Telecopy No.: [                                             ]

email address: [                                             ]

 G-42
 

 

 

OBLIGOR ACKNOWLEDGMENT

Each of the undersigned hereby acknowledges and agrees
to the foregoing terms and provisions. 
By its signature below, the undersigned agrees that it will, together
with its successors and assigns, be bound by the provisions of the within and
foregoing Intercreditor Agreement.

Each of the undersigned agrees that the Working
Capital Facility Collateral Agent possessing or controlling Shared Collateral
does so as bailee (such bailment being intended, among other things, to satisfy
the requirements of Sections 8-301(a)(2) and 9-313(c) of the UCC)
for the Collateral Agent and the Pari Passu Collateral Agent, to the extent
each has a Lien on such Shared Collateral, and is hereby authorized to and may
turn over such Shared Collateral to the Collateral Agent or the Pari Passu
Collateral Agent, in accordance with the foregoing Intercreditor Agreement,
after the Discharge of Working Capital Facility Obligations.

Each of the undersigned acknowledges and agrees that:
(i) although it may sign this Obligor Acknowledgment to the Intercreditor
Agreement it is not a party thereto and does not and will not receive any
right, benefit, priority or interest under or because of the existence of the
foregoing Intercreditor Agreement and (ii) it will execute and deliver such
additional documents and take such additional action as may be necessary or
desirable in the reasonable opinion of the Working Capital Facility Collateral
Agent, the Collateral Agent or the Pari Passu Collateral Agent to effectuate
the provisions and purposes of the foregoing Intercreditor Agreement.

FIBERTOWER CORPORATION

FIBERTOWER NETWORK SERVICES CORP.

ART LEASING, INC.

ART LICENSING, INC.

TELIGENT SERVICES ACQUISITION, INC.

FIBERTOWER SOLUTIONS CORPORATION

By:                                                                                                  

Name: 

Title:

Address:

[                                                                   ]

[                                                                   ]

Attention: [                                               ]

Telecopy No.: [                                         ]

email address: [                                         ]

 

 G-43Exhibit
10.1

$350,000,000

FiberTower Corporation

9.00% Convertible Senior Secured Notes due 2012

PURCHASE AGREEMENT

October 25, 2006

JEFFERIES & COMPANY, INC.

DEUTSCHE BANK SECURITIES INC.

c/o JEFFERIES & COMPANY, INC.

      520 Madison Avenue

      New York, New York 10022

Ladies and Gentlemen:

FiberTower Corporation, a
Delaware corporation (the “Company”), and each of the Guarantors (as
hereinafter defined)  hereby agree with
you as follows:

1.             Issuance of Offered Securities and PIK
Additional Securities.   Subject to the terms and
conditions herein contained, the Company proposes to issue and sell to
Jefferies & Company, Inc. and Deutsche Bank Securities Inc. (the “Initial Purchasers”), $350,000,000
aggregate principal amount (each a “Firm Note” and, collectively, the “Firm
Notes” and, together with the Guarantees (as hereinafter defined) thereon,
the “Firm Securities”) of 9.00% Convertible Senior Secured Notes of the
Company due 2012 (each a “Note” and, collectively, the “Notes”
and, together with the Guarantees thereon, the “Securities”).  In addition, the Company has granted to the
Initial Purchasers an option to purchase up to $52,500,000 aggregate principal
amount of  additional Notes (each an “Optional
Additional Note” and, collectively, the “Optional Additional Notes”
and, together with the Guarantees thereon, the “Optional Additional
Securities”), all as provided in Section 3 hereof.  The Firm Notes and, if and to the extent
issued, the Optional Additional Notes, are collectively called the “Offered
Notes” and the Firm Securities and, if and to the extent issued, the
Optional Additional Securities, are collectively called the “Offered
Securities.”  The Offered Securities
will be issued pursuant to an indenture (the “Indenture”), to be dated as of the First Closing Date (as
hereinafter defined), by and among the Company, the Guarantors party thereto,
and Wells Fargo  Bank, National
Association, as trustee (the “Trustee”).  Pursuant to the terms of the Indenture and
the Notes, interest on the Notes is payable in cash or, if no Default has
occurred and is continuing, then on any or all of the four interest payment
dates after the fourth interest payment date, the Company may elect to make
payments of interest in additional Notes in a principal amount equal to such interest
amount (each a “PIK Additional Note” and, collectively, the “PIK
Additional Notes” and, together with the Guarantees thereon, the “PIK
Additional Securities”).  Jefferies
& Company, Inc. has agreed to act as representative of the several Initial
Purchasers (in such capacity, the “Representative”) in connection with
the offering and sale of the Offered Securities.  Capitalized terms used, but not defined
herein, shall have the meanings set forth in the “Description of the Notes”
section of the Time of Sale Document (as hereinafter defined) and the Final
Offering Memorandum (as hereinafter defined).

 

The Offered Securities
and the PIK Additional Securities will be convertible into shares of the
Company’s capital stock, par value $0.001 per share (the “Common Stock”),
in accordance with the terms of the Securities and the Indenture.  The shares of Common Stock issuable upon
conversion of the Offered Securities and the PIK Additional Securities are
herein referred to as the “Shares.”

The Offered Securities
will be offered and sold to the Initial Purchasers pursuant to an exemption
from the registration requirements under the Securities Act of 1933, as amended
(the “Act”). Upon
original issuance thereof, and until such time as the same is no longer
required under the applicable requirements of the Act, the Securities shall
bear the legends set forth in the final offering memorandum, dated the date
hereof (the “Final Offering Memorandum”).  In connection with the offer and sale of the
Offered Securities (the “Offering”),  at or prior to the time when sales of the
Offered Securities were first made (the “Time of Sale”), the Company
prepared (i) a preliminary offering memorandum, dated October 23, 2006 (the “Preliminary Offering Memorandum”)
and (ii) a pricing term sheet, attached hereto as Schedule I, which
includes pricing terms and other information with respect to the Offered
Securities (the “Pricing Supplement”). The Preliminary Offering
Memorandum and the Pricing Supplement are collectively referred to herein as
the “Time of Sale Document.”

2.             Terms of Offering.   The Initial
Purchasers have advised the Company, and the Company understands, that the
Initial Purchasers will make offers to sell (the “Exempt Resales”) some or all of the Offered Securities
purchased by the Initial Purchasers hereunder on the terms set forth in the
Final Offering Memorandum, as amended or supplemented, to persons (the “Subsequent Purchasers”) whom the
Initial Purchasers (i) reasonably believe to be “qualified institutional buyers”
(“QIBs”) as defined in
Rule 144A under the Act, as such may be amended from time to time, (ii)
reasonably believe (based upon written representations made by such persons to
the Initial Purchasers) to be institutional “accredited investors” as defined
in Rule 501(a)(1), (2), (3) or (7) under the Act (“Accredited Investors”) or
(iii) reasonably believe to be non-U.S. persons in reliance upon Regulation S
under the Act.

Pursuant to the Indenture, all existing and future
Domestic Restricted Subsidiaries of the Company shall fully and unconditionally
guarantee, on a senior secured basis, to each holder of the Notes and the
Trustee, the payment and performance of the Company’s obligations under the
Indenture and the Notes (each such subsidiary being referred to herein as a “Guarantor” and each such guarantee being referred
to herein as a “Guarantee”).  

Pursuant to the terms of the Collateral Agreements,
all of the obligations under the Securities and the Indenture will initially be
secured, to the extent permitted by law, by a first priority lien and security
interest in substantially all of the assets of the Company and its existing and
future Domestic Restricted Subsidiaries, other than the Excluded Assets
(subject to a prior ranking lien by the lenders under the Working Capital
Facility and pari passu liens on Subsidiaries
that do not hold the Company’s 24GHz or 39GHz FCC licenses securing any Pari
Passu Indebtedness), and a first priority lien and security interest in the
capital stock of the  Company’s existing
and future Domestic Restricted Subsidiaries (subject to a prior ranking lien by
the lenders under the Working Capital Facility and pari passu liens
on Subsidiaries that do not hold the Company’s 24GHz or 39GHz FCC licenses
securing any Pari Passu Indebtedness). 
In addition, the Offered Securities will be secured by a first priority
lien and security interest in amounts deposited in the Escrow Account (as
hereinafter defined), which lien and security interest will secure no
indebtedness other than the Securities. 
The PIK Additional Securities, if and to the extent issued, will be
secured, equally and ratably, with the Securities.

Holders of the Offered Securities and PIK Additional
Securities (including Subsequent Purchasers) will have the registration rights
set forth in a registration rights agreement applicable to the Offered
Securities and the PIK Additional Securities (the “Registration Rights Agreement”), to be executed and delivered
by the Company and the Guarantors on the First Closing Date.  Pursuant to the Registration Rights
Agreement, the Company and the Guarantors will agree, among other things, to 

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(i) file with the Securities and Exchange Commission
(the “SEC”), under the
circumstances set forth in the Registration Rights Agreement, a shelf
registration statement pursuant to Rule 415 under the Act (the “Shelf Registration Statement”),
relating to the resale of the Offered Securities and any PIK Additional
Securities that could be issued by the Company pursuant to the terms of the
Securities and the Shares that may be issued upon the conversion of the Offered
Securities and the PIK Additional Securities, and (ii) use their commercially
reasonable efforts to cause such Shelf Registration Statement to be declared
effective.  If the Company fails to
satisfy its obligations under the Registration Rights Agreement, it will be
required to pay liquidated damages to the holders of the Offered Securities and
the PIK Additional Securities under certain circumstances.

This Agreement, the Indenture, the Collateral
Agreements, the Registration Rights Agreement, the Escrow Agreement (as defined
below), the Offered Securities and all agreements ancillary thereto are
collectively referred to herein as the “Documents.”

3.             Purchase, Sale and Delivery.

(a) The Firm Securities;
First Closing Date.   On the basis of the representations,
warranties, agreements and covenants herein contained and subject to the terms
and conditions herein set forth, the Company and the Guarantors, jointly and
severally, agree to issue and sell to the Initial Purchasers, and the Initial
Purchasers agree, severally and not jointly, to purchase from the Company and
the Guarantors, the respective aggregate principal amount of Firm Securities
set forth opposite the Initial Purchasers’ names on Schedule II attached
hereto at a purchase price of 97.0% of the aggregate principal amount thereof,
plus accrued interest, if any, from the First Closing Date.  Delivery to the Initial Purchasers of and
payment for the Firm Securities shall be made at a closing to be held at 10:00
a.m., New York time on November 9, 2006 at the New York offices of Paul,
Hastings, Janofsky & Walker LLP or such other time and date not later than
five business days thereafter as the Representative and the Company shall agree
upon (the time and date of such closing are called the “First Closing Date”).  The Company and the Guarantors hereby
acknowledge that circumstances under which the Representative may provide
notice to postpone the First Closing Date as originally scheduled include, but
are in no way limited to, any determination by the Company or the
Representative to recirculate to the public copies of an amended or
supplemented Time of Sale Document or Final Offering Memorandum or a delay as
contemplated by the provisions of Section 11.

(b)  The Optional Additional Securities; Option Closing Date.   In
addition, on the basis of the representations, warranties and agreements herein
contained, and upon the terms but subject to the conditions herein set forth,
the Company and the Guarantors, jointly and severally, hereby grant an option
to the several Initial Purchasers to purchase, severally and not jointly, up to
$52,500,000 aggregate principal amount of the Optional Additional Securities
from the Company and the Guarantors at the purchase price equal to 97.0% of the
aggregate principal amount thereof, plus accrued interest if any, from the
First Closing Date.  The option granted
hereunder may be exercised at any time and from time to time in whole or in
part upon notice by the Representative to the Company,  which notice may be given at any time within
30 days from the date of this Agreement. 
Such notice shall set forth (i) the aggregate principal amount of
Optional Additional Securities as to which the Initial Purchasers are
exercising the option, (ii) the names and denominations in which the
certificates for the Optional Additional Securities are to be registered and
(iii) the time, date and place at which such certificates will be
delivered (which time and date may be simultaneous with, but not earlier than,
the First Closing Date; and in the event that such time and date are
simultaneous with the First Closing Date, the term “First Closing Date”
shall refer to the time and date of delivery of certificates for the Firm
Securities and such Optional Additional Securities ).  Any such time and date of delivery, if
subsequent to the First Closing Date, is called an “Option Closing Date”
and shall be determined by the Representative and shall not be earlier than
three nor later than five full business days after delivery of such notice of
exercise.  The First Closing Date and the
Option Closing Date are each referred to herein as a “Closing Date.”  If any Optional Additional  

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Securities are to be purchased, (a) each Initial
Purchaser agrees, severally and not jointly, to purchase the respective
aggregate principal amount of Optional Additional Securities that bears the
same proportion to the total aggregate principal amount of Optional Additional
Securities to be purchased as the aggregate principal amount of Firm Securities
set forth on Schedule II attached hereto opposite the name of such
Initial Purchaser bears to the total aggregate principal amount of Firm
Securities and (b) the Company and the Guarantors, jointly and severally,
agree to sell such Optional Additional Securities to the Initial Purchasers.  The Representative may cancel the option at
any time prior to its expiration by giving written notice of such cancellation
to the Company.

(c) Payment for the Offered
Securities.   The Company shall deliver to the Initial
Purchasers one or more certificates representing the Offered Securities in
definitive form, registered in such names and denominations as the Initial
Purchasers may request, against payment by the Initial Purchasers of the
purchase price therefor by immediately available Federal funds bank wire
transfer to such bank account or accounts as the Company shall designate to the
Initial Purchasers at least two business days prior to the applicable Closing
Date.  The certificates representing the
Offered Securities in definitive form shall be made available to the Initial
Purchasers for inspection at the New York offices of Paul, Hastings, Janofsky
& Walker LLP (or such other place as shall be reasonably acceptable to the
Initial Purchasers) not later than 10:00 a.m. one business day immediately
preceding the applicable Closing Date. 
Offered Securities to be represented by one or more definitive global
securities in book-entry form will be deposited on the applicable Closing Date,
by or on behalf of the Company, with The Depository Trust Company (“DTC”)
or its designated custodian, and registered in the name of Cede & Co.

On each applicable Closing Date, the Company will
deposit a portion of the net proceeds realized from the sale of the Offered
Securities into an escrow account (the “Escrow Account”) pursuant to the
terms of an Escrow Agreement (the “Escrow Agreement”) to be entered into
by and among the Company, the Guarantors and an escrow agent, to be held by
such escrow agent for the benefit of the holders of the Offered Securities in
an amount that, together with the proceeds from the investment thereof, will be
sufficient to make the first four interest payments on the Offered Securities
being sold on such Closing Date.  The
escrowed interest may only be used to make such interest payments, or to make
such other payments as required by the Indenture.

4.             Representations and Warranties of the Company and the Guarantors.  The Company and the Guarantors, jointly and
severally, represent and warrant to the Initial Purchasers that, as of the Time
of Sale, as of the date hereof, as of the First Closing Date and as of each
Option Closing Date, if any:

(a)                                  (i)
Neither the Time of Sale Document, nor any amendment or supplement thereto, as
of the Time of Sale, as of the date hereof and at all times subsequent thereto
up to each Closing Date, contained, contains or will contain any untrue
statement of a material fact or omitted, omits or will omit to state a material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and (ii) the Final
Offering Memorandum, as of the date hereof and at all times subsequent thereto
up to each Closing Date, as then amended or supplemented by the Company, if
applicable, does not and will not contain any untrue statement of a material
fact or omits or will omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made,
not misleading, except that the representations and warranties set forth in
this Section 4(a) do not apply to statements or omissions made in reliance upon
and in conformity with information relating to the Initial Purchasers and
furnished to the Company in writing by the Representative expressly for use in
the Preliminary Offering Memorandum or the Final Offering Memorandum or any
amendment or supplement thereto.  No injunction or order has been issued that
either (i) asserts that any of the transactions contemplated by the Documents
is subject to the registration 

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requirements
of the Act or (ii) would prevent or suspend the issuance or sale of any of the
Offered Securities or the use of the Time of Sale Document, the Final Offering
Memorandum or any amendment or supplement thereto, in any jurisdiction. No
statement of material fact included in the Final Offering Memorandum has been
omitted from the Time of Sale Document and no statement of material fact
included in the Time of Sale Document that is required to be included in the
Final Offering Memorandum has been omitted therefrom.  The Company and the Guarantors have not
distributed, and will not distribute, prior to the later of the last possible
Closing Date and the completion of the Initial Purchasers’ distribution of the
Offered Securities, any offering material in connection with the offering and
sale of the Securities other than the Time of Sale Document and the Final
Offering Memorandum.

(b)                                 (i) The Company’s  Annual Report on Form 10-K most recently
filed with the SEC (the “Annual Report”) and (ii) each subsequent report
filed with the SEC pursuant to the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), as of their respective dates, as of the
Time of Sale, as of the date hereof and as of each Closing Date, did not, does
not and will not include any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.  Such documents, when they were filed with the
SEC, conformed in all material respects to the requirements of the Exchange Act
and the rules and regulations of the SEC thereunder (including Regulation S-X).  Since the date of the filing of the Annual Report
with the SEC, the Company has made all filings with the SEC required to be made
by the Company under the Exchange Act.

(c)                                  Each
corporation, partnership, or other entity in which the Company, directly or
indirectly through any of its subsidiaries, owns more than fifty percent (50%)
of any class of equity securities or interests is listed on Schedule III
attached hereto (the “Subsidiaries”). 
Each Subsidiary that is not a Domestic Restricted Subsidiary has an
asterisk (“*”) next to its name on such schedule.

(d)                                 The
Company and each of the Subsidiaries (i) has been duly organized or formed, as
the case may be, is validly existing and is in good standing under the laws of
its jurisdiction of organization, (ii) has all requisite power and authority to
carry on its business and to own, lease and operate its properties and assets,
and (iii) is duly qualified or licensed to do business and is in good standing
as a foreign corporation, partnership or other entity as the case may be,
authorized to do business in each jurisdiction in which the nature of such
businesses or the ownership or leasing of such properties requires such
qualification, except where the failure to be so qualified would not,
individually or in the aggregate, have a material adverse effect on (A) the
properties, business, prospects, operations, earnings, assets, liabilities or
condition (financial or otherwise) of the Company and the Subsidiaries, taken
as a whole, (B) the ability of the Company and the Guarantors to perform their
respective obligations in all material respects under any Document, (C) the
validity or enforceability of any Document, (D) the attachment, perfection or
priority of any of the Liens (as hereinafter defined) or security interests
intended to be created by the Collateral Agreements, or (E) the consummation of
any of the transactions contemplated under any of the Documents (each, a “Material Adverse Effect”).

(e)                                  All
of the issued and outstanding shares of the capital stock of the Company have
been duly authorized and validly issued, are fully paid and nonassessable, and
were not issued in violation of, and are not subject to, any preemptive or
similar rights.  The table (including the
footnotes thereto) under the heading “Pro Forma Combined” under the caption “Capitalization”
in the Time of Sale Document and the Final Offering Memorandum sets forth, as
of its date, the capitalization of the Company on a pro forma combined
basis.  The table (including the
footnotes thereto) under the heading “Pro Forma As Adjusted” under the caption “Capitalization”
in the Time of Sale Document and the Final Offering Memorandum sets forth the
capitalization of the Company as of 

 5
 

 

June 30, 2006, on a pro
forma adjusted basis after giving effect to the merger between First Avenue
Networks, Inc. and FiberTower Network Services Corp. on August 29, 2006 and the
Offering.  All of the outstanding shares
of capital stock or other equity interests of each of the Subsidiaries are
owned, directly or indirectly, by the Company, free and clear of all liens,
security interests, mortgages, pledges, charges, equities, claims or
restrictions on transferability or encumbrances of any kind (collectively, “Liens),
other than those imposed by the Act and the securities or “Blue Sky” laws of
certain domestic or foreign jurisdictions and Permitted Liens described in the
Time of Sale Document and the Final Offering Memorandum. Except as disclosed in
the Time of Sale Document and the Final Offering Memorandum and options granted
to employees of the Company after the date of the Preliminary Offering
Memorandum pursuant to option plans described in the Time of Sale Document and
the Final Offering Memorandum and 30,000 shares of common stock of the Company
to be issued to a consultant after the Preliminary Offering Memorandum, none of
which could materially alter the Company’s capital stock, there are no
outstanding (A) options, warrants or other rights to purchase from the Company
or any of the Subsidiaries, (B) agreements, contracts, arrangements or other
obligations of the Company or any of the Subsidiaries to issue or (C) other
rights to convert any obligation into or exchange any securities for, in the
case of each of clauses (A) through (C), shares of capital stock of or other
ownership or equity interests in the Company or any of the Subsidiaries.

(f)                                    No
holder of securities of the Company or any of the Subsidiaries will be entitled
to have such securities (other than the Offered Securities and the PIK
Additional Securities and the Shares issuable upon conversion thereof)
registered under the Shelf Registration Statement required to be filed by the
Company and the Guarantors with respect to the Offered Securities and the PIK
Additional Securities and the Shares issuable upon conversion thereof pursuant
to the Registration Rights Agreement.

(g)                                 The
Company and each of the Guarantors that are corporations have all requisite
corporate power and authority, and the Company and each of the Guarantors that
are limited partnerships or limited liability companies have all the requisite
partnership or other power and authority, to execute, deliver and perform their
respective obligations under the Documents to which they are a party and to
consummate the transactions contemplated thereby.

(h)                                 This
Agreement has been duly and validly authorized, executed and delivered by the
Company and the Guarantors.  Each of the
Indenture and the Collateral Agreements have been duly and validly authorized
by the Company and the Guarantors.  Each
of the Indenture and the Collateral Agreements, when executed and delivered by
the Company and the Guarantors, will constitute a legal, valid and binding
obligation of each of the Company and Guarantors, enforceable against each of
the Company and the Guarantors in accordance with its terms, except that the
enforcement thereof may be subject to (i) bankruptcy, insolvency,
reorganization, receivership, moratorium, fraudulent conveyance or other
similar laws now or hereafter in effect relating to creditors’ rights generally
and (ii) general principles of equity (whether applied by a court of law or
equity) and the discretion of the court before which any proceeding therefor
may be brought.

(i)                                     The
Registration Rights Agreement and the Escrow Agreement have been duly and
validly authorized by the Company and the Guarantors.  The Registration Rights Agreement and the
Escrow Agreement, when executed and delivered by the Company and the
Guarantors, will constitute a legal, valid and binding obligations of the
Company and the Guarantors, enforceable against the Company and the Guarantors
in accordance with their terms, except that (A) the enforcement thereof may be
subject to (i) bankruptcy, insolvency, reorganization, receivership,
moratorium, fraudulent conveyance or other similar laws now or hereafter in
effect relating to creditors’ rights generally and (ii) general principles of
equity (whether applied by a court of law or equity) and the discretion of the
court before which any proceeding therefor may be brought

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and (B) any rights to
indemnity or contribution thereunder may be limited by federal and state
securities laws and public policy considerations.

(j)                                     The
Offered Notes and the PIK Additional Notes, when issued, will be in the form
contemplated by the Indenture.  When
executed and delivered by the Company and the Guarantors, the Indenture will
meet the requirements for qualification under the Trust Indenture Act of 1939,
as amended (the “TIA”).  The
Offered Notes have been, and prior to any issuance thereof, the PIK Additional
Notes will have been, duly and validly authorized by the Company and, when the
Offered Notes are delivered to and paid for by the Initial Purchasers and any
PIK Additional Notes are delivered to the holders of the Offered Notes, all in
accordance with the terms of this Agreement and the Indenture, will have been
duly executed, issued and delivered and will be legal, valid and binding
obligations of the Company, entitled to the benefit of the Indenture, the
Collateral Agreements and the Registration Rights Agreement, and enforceable against
the Company in accordance with their terms, except that the enforcement thereof
may be subject to (i) bankruptcy, insolvency, reorganization, receivership,
moratorium, fraudulent conveyance or other similar laws now or hereafter in
effect relating to creditors’ rights generally and (ii) general principles of
equity (whether applied by a court of law or equity) and the discretion of the
court before which any proceeding therefor may be brought.

(k)                                  Upon
issuance and delivery of the Offered Securities, in accordance with this
Agreement and the Indenture and the issuance and delivery of all of the PIK
Additional Securities that could be issued pursuant thereto assuming the
Company elected to issue all of the PIK Additional Securities that it is
entitled to pursuant to the terms of the Indenture and the Offered Securities,
the Offered Securities and the PIK Additional Securities will be convertible at
the option of the holder thereof into Shares in accordance with the terms of
the Indenture and the Offered Securities. 
The Shares (up to an aggregate of 28,767,197 Shares (the “Share Cap”))
issuable upon such conversion of the Offered Securities and the PIK Additional
Securities have been duly authorized and reserved for issuance upon such
conversion by all necessary corporate action and such Shares, when issued upon
such conversion in accordance with the terms of the Offered Securities and the
PIK Additional Securities, will be validly issued, fully paid and
non-assessable, and will not be issued in violation of, or subject to, any
preemptive or similar rights.  The Shares
in excess of the Share Cap, if any, issuable upon such conversion of the
Offered Securities and the PIK Additional Securities will have been duly
authorized and reserved for issuance upon such conversion by all necessary
corporate action prior to any such issuance and such Shares, when issued upon
such conversion in accordance with the terms of the Offered Securities and the
PIK Additional Securities, will be validly issued, fully paid and non-assessable,
and will not be issued in violation of, or subject to, any preemptive or
similar rights.  No holder of any such
Shares will be subject to personal liability by reason of being such holder.  All such Shares issuable upon conversion of
the Offered Securities and the PIK Additional Securities will conform to the
descriptions thereof incorporated by reference into the Time of Sale Document
and the Final Offering Memorandum.

(l)                                     The
Guarantees of the Offered Notes have been, and prior to any issuance thereof,
the PIK Additional Notes will have been, duly and validly authorized by the
Guarantors and, when executed by the Guarantors, will have been duly executed,
issued and delivered and will be legal, valid and binding obligations of the
Guarantors, entitled to the benefit of the Indenture, the Collateral
Agreements, and the Registration Rights Agreement, and enforceable against the
Guarantors in accordance with their terms, except that the enforcement thereof
may be subject to (i) bankruptcy, insolvency, reorganization, receivership,
moratorium, fraudulent conveyance or other similar laws now or hereafter in
effect relating to creditors’ rights generally and (ii) general principles of
equity (whether applied by a court of law or equity) and the discretion of the
court before which any proceeding therefor may be brought.

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(m)                               Neither
the Company nor any of the Subsidiaries is in violation of its certificate of
incorporation, by-laws or other organizational documents (the “Charter Documents”).  Neither the Company nor any of the
Subsidiaries is (i) in violation of any Federal, state, local or foreign
statute, law (including, without limitation, common law) or ordinance, or any
judgment, decree, rule, regulation or order (collectively, “Applicable Law”) of any federal,
state, local and other governmental authority, governmental or regulatory
agency or body, court, arbitrator or self-regulatory organization, domestic or
foreign (each, a “Governmental
Authority”) applicable to any of them or any of their respective
properties, or (ii) in breach of or default under any bond, debenture, note or
other evidence of indebtedness, indenture, mortgage, deed of trust, lease or
any other agreement or instrument to which any of them is a party or by which
any of them or their respective property is bound (collectively, “Applicable Agreements”), except
for such violations, breaches or defaults that would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.  All Applicable Agreements are in full force
and effect and are legal, valid and binding obligations, other than as
disclosed in the Time of Sale Document and the Final Offering Memorandum,
except where the failure to be in full force and effect or to be legal, valid
and binding would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.  There
exists no condition that, with the passage of time or otherwise, would
constitute (a) a violation of such Charter Documents or Applicable Laws, (b) a
breach of or default under any Applicable Agreement or (c) result in the
imposition of any penalty or the acceleration of any indebtedness other than,
with respect to clause (b) or (c), such breach, default, penalty or
acceleration as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

(n)                                 Neither
the execution, delivery or performance of the Documents nor the consummation of
any transactions contemplated therein will conflict with, violate, constitute a
breach of or a default (with the passage of time or otherwise) under, require
the consent of any person (other than consents already obtained and in full
force and effect) under, result in the imposition of a Lien on any assets of
the Company or any of its respective Subsidiaries (except for Liens pursuant to
the Collateral Agreements), or result in an acceleration of indebtedness under
or pursuant to (i) the Charter Documents, (ii) any Applicable Agreement, or
(iii) any Applicable Law.  After
consummation of the Offering and transactions contemplated in the Documents, no
Default or Event of Default will exist.

(o)                                 When
executed and delivered, the Documents will conform in all material respects to
the descriptions thereof in the Time of Sale Document and the Final Offering
Memorandum.

(p)                                 No
consent, approval, authorization or order of any Governmental Authority, or
third party is required (i) for the issuance and sale by the Company of the
Offered Securities to the Initial Purchasers or the issuance of the Shares upon
conversion by the holders of the Offered Securities and any PIK Additional
Securities, (ii) the issuance by the Guarantors of the Guarantees of the
Offered Notes and any PIK Additional Notes or (iii) the consummation by the
Company and the Guarantors of the other transactions contemplated hereby,
except such as have been obtained and such as may be required under state
securities or “Blue Sky” laws in connection with the purchase and resale of the
Offered Securities by the Initial Purchasers.

(q)                                 There
is no action, claim, suit, demand, hearing, notice of violation or deficiency,
or proceeding, domestic or foreign (collectively, “Proceedings”), pending or, to the knowledge of the Company or
any of the Subsidiaries, threatened, that either (i) seeks to restrain, enjoin,
prevent the consummation of, or otherwise challenge any of the Documents or any
of the transactions contemplated therein, or (ii) would, individually or in the
aggregate, have a Material Adverse Effect. 
The Company is not subject to any judgment, order, decree, rule or
regulation of any 

 8
 

 

Governmental Authority
that would, individually or in the aggregate, have a Material Adverse Effect.

(r)                                    Each
of the Company and the Subsidiaries possess all licenses, permits,
certificates, consents, orders, approvals and other authorizations from, and
has made all declarations and filings with, all Governmental Authorities,
presently required or necessary to own or lease, as the case may be, and to
operate their respective properties and to carry on their respective businesses
as now or proposed to be conducted as set forth in the Time of Sale Document
and the Offering Memorandum (“Permits”), and each Permit is in full
force and effect, except in each as would not, individually or in the
aggregate, have a Material Adverse Effect; each of the Company and each of its
Subsidiaries has fulfilled and performed all of its obligations with respect to
such Permits and is in compliance with all applicable laws, rules, regulations,
ordinances, directives, judgments, decrees and orders; no event has occurred
which allows, or after notice or lapse of time would allow, revocation or
termination thereof or results in any other material impairment of the rights
of the holder of any Permit; no Permit contains a materially burdensome
restriction not adequately disclosed in the Time of Sale Document and the Final
Offering Memorandum; and none of the Company or any of its Subsidiaries has
received any notice of any proceeding that would cause the termination,
suspension, cancellation, nonrenewal or modification of any such Permit, or the
imposition of any penalty or fine, except in each case as described in the Time
of Sale Document and the Final Offering Memorandum or as would not,
individually or in the aggregate, have a Material Adverse Effect.

(s)                                  Each
of the Company and its Subsidiaries has good and marketable title to all real
property owned by it and good title to all personal property owned by it and
good and indefeasible title to all leasehold estates in real and personal
property being leased by it that are material to the respective businesses of
the Company and the Subsidiaries and, as of the Time of Sale, as of the date
hereof and as of each Closing Date, was, is and will be free and clear of all
Liens (other than Permitted Liens).

(t)                                    All
Tax returns required to be filed by the Company and each of the Subsidiaries
have been filed, except where the failure to file such return would not result
in a Material Adverse Effect and the Company has provided adequate reserves in
accordance with generally accepted accounting principles of the United States,
consistently applied (“GAAP”)
in its Financial Statements (as hereinafter defined), and all such returns are
true, complete, and correct in all material respects.  All material Taxes that are due from the
Company and its respective Subsidiaries have been paid other than those (i)
currently payable without penalty or interest or (ii) being contested in good
faith and by appropriate proceedings and for which adequate reserves have been
established in accordance with GAAP, consistently applied. To the best
knowledge of the Company, there are no actual or proposed Tax assessments
against the Company or any of the Subsidiaries that would, individually or in
the aggregate, have a Material Adverse Effect. The accruals and reserves on the
books and records of the Company and its respective Subsidiaries in respect of
any material Tax liability for any period not finally determined are adequate
to meet any assessments of Tax for any such period. For purposes of this
Agreement, the term “Tax” and “Taxes” shall mean all Federal, state, local and
foreign taxes, and other assessments of a similar nature (whether imposed
directly or through withholding), including any interest, additions to tax, or
penalties applicable thereto.

(u)                                 Each
of the Company and the Subsidiaries owns, or is licensed under, and has the
right to use, all patents, patent rights, licenses, inventions, copyrights,
know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures), trademarks,
service marks and trade names (collectively, “Intellectual Property”) necessary for the conduct of its
businesses except where such failure to own or have such right 

 9
 

 

would not, individually
or in the aggregate, have a Material Adverse Effect and, as of the Time of
Sale, as of the date hereof and as of each Closing Date, was, is and will be
free and clear of all Liens, other than Permitted Liens.  No claims or notices of any potential claim
have been asserted by any person challenging the use of any such Intellectual
Property by the Company or any of the Subsidiaries or questioning the validity
or effectiveness of the Intellectual Property or any license or agreement
related thereto (other than any claims that, if successful, would not,
individually or in the aggregate, have a Material Adverse Effect).  The use of such Intellectual Property by the
Company or any of the Subsidiaries will not infringe on the Intellectual
Property rights of any other person except where any such infringement would
not, individually or in the aggregate, have a Material Adverse Effect.

(v)                                 The
Company maintains a system of internal accounting controls sufficient to
provide reasonable assurance that (i) material transactions are executed in
accordance with management’s general or specific authorization, (ii) material
transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP, and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management’s general or
specific authorization and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any material differences.

(w)                               The
audited consolidated financial statements and related notes of the Company and
its consolidated subsidiaries contained in the Time of Sale Document and the
Final Offering Memorandum (the “Financial
Statements”) present fairly the financial position, results of
operations and cash flows of the Company and its consolidated subsidiaries, as
of the respective dates and for the respective periods to which they apply and
have been prepared in accordance with GAAP and the requirements of Regulation
S-X of the Act.  The historical financial
data set forth under “Summary Historical and Pro Forma Financial and Operating
Data” and “Selected Historical Financial and Operating Data” included in the
Time of Sale Document and the Final Offering Memorandum has been prepared on a
basis consistent with that of the Financial Statements and presents fairly the
financial position and results of operations of the Company and its
consolidated subsidiaries as of the respective dates and for the respective
periods indicated. The unaudited pro forma financial information and related
notes of the Company contained in the Time of Sale Document and the Final
Offering Memorandum has been prepared in accordance with the requirements of
Regulation S-X and give effect to assumptions used in the preparation therof on
a reasonable basis and in good faith based on information as of the date
hereof.  All other financial, statistical,
and market and industry-related data included in the Time of Sale Document and
the Final Offering Memorandum are fairly and accurately presented and are based
on or derived from sources that the Company believes to be reliable and
accurate.

(x)                                   Subsequent
to the respective dates as of which information is given in the Time of Sale
Document and the Final Offering Memorandum, except as disclosed in the Time of
Sale Document and the Final Offering Memorandum, (i) neither the Company nor
any of the Subsidiaries has incurred any liabilities, direct or contingent,
that are material, individually or in the aggregate, to the Company, or has
entered into any transactions not in the ordinary course of business, (ii)
there has not been any material change in the Common Stock or any material
increase in long-term indebtedness or any material increase in short-term
indebtedness of the Company, or any payment of or declaration to pay any
dividends or any other distribution with respect to the Company, and (iii)
there has not been any material adverse change in the properties, business,
prospects, operations, earnings, assets, liabilities or condition (financial or
otherwise) of the Company and the Subsidiaries in the aggregate (each of
clauses (i), (ii) and (iii), a “Material
Adverse Change”).  To the
knowledge of the Company after reasonable inquiry, no event has occurred, which
would, individually or in the aggregate, have a Material Adverse Effect.

 

 10

 

(y)                                 No
“nationally recognized statistical rating organization” (as such term is
defined for purposes of Rule 436(g)(2) under the Act) (i) has imposed (or has
informed the Company that it is considering imposing) any condition (financial
or otherwise) on the Company retaining any rating assigned to the Company or
any of the Subsidiaries or to any securities of 
the Company or any of the Subsidiaries, or (ii) has indicated to the
Company that it is considering (A) the downgrading, suspension, or withdrawal
of, or any review for a possible change that does not indicate the direction of
the possible change in any rating so assigned, or (B) any negative change in
the outlook for any rating of the Company or any of the Subsidiaries or any
securities of the Company or any of the Subsidiaries.

(z)                                   All
indebtedness represented by the Offered Securities and any PIK Additional
Securities that may be issued is being incurred for proper purposes and in good
faith. On the Closing Date, after giving pro forma effect to the Offering and
the use of proceeds therefrom as indicated in the “Use of Proceeds” section of
the Time of Sale Document and the Final Offering Memorandum, the Company and
each Guarantor (i) will be solvent, (ii) will have sufficient capital for
carrying on its business and (iii) will be able to pay its debts as they
mature.  As used in this paragraph, the
term “Solvent” means, with respect to a particular date, that on such
date (i) the present fair market value (or present fair saleable value) of
the assets of  the Company and each
Guarantor is not less than the total amount required to pay the liabilities of
the Company and each Guarantor on its total existing debts and liabilities
(including contingent liabilities) as they become absolute and matured;
(ii) the Company and each Guarantor is able to pay its debts and other
liabilities, contingent obligations and commitments as they mature and become
due in the normal course of business; (iii) assuming consummation of the
issuance of the Offered Securities and any PIK Additional Securities that may
be issued as contemplated by this Agreement and the Time of Sale Document and
the Final Offering Memorandum, neither the Company nor any Guarantor is
incurring debts or liabilities beyond its ability to pay as such debts and
liabilities mature; (iv) neither the Company nor any Guarantor is engaged
in any business or transaction, and does not propose to engage in any business
or transaction, for which its property would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the
industry in which the Company or any Guarantor is engaged; and
(v) neither  the Company nor any
Guarantor is otherwise insolvent under the standards set forth in applicable
laws.

(aa)                            The
Company has not, and no one acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in, or that has
constituted or which might reasonably be expected to constitute, the
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Offered Securities, (ii) sold, bid
for, purchased, or paid anyone any compensation for soliciting purchases of,
any of the Offered Securities, or (iii) except as disclosed in the  Time of Sale Document and the Final Offering
Memorandum, paid or agreed to pay to any person any compensation for soliciting
another to purchase any other securities of the Company.

(bb)                          Without
limiting any provision herein, no registration under the Act and no qualification
of the Indenture under the TIA is required for the sale of the Offered
Securities to the Initial Purchasers as contemplated hereby or for the Exempt
Resales or for the issuance or sale of any PIK Additional Securities that may
be issued, assuming (i) that the purchasers in the Exempt Resales are QIBs or
Accredited Investors or non-U.S. persons (as defined under Regulation S of the
Act) and (ii) the accuracy of the Initial Purchasers’ representations contained
herein regarding the absence of general solicitation in connection with the
sale of the Offered Securities to the Initial Purchasers and in the Exempt
Resales.

(cc)                            The
Offered Securities and any PIK Additional Securities that may be issued are
eligible for resale pursuant to Rule 144A under the Act and no other securities
of the Company are of the 

 11
 

 

same class (within the
meaning of Rule 144A under the Act) as the Offered Securities and any PIK
Additional Securities that may be issued and listed on a national securities
exchange registered under Section 6 of the Exchange Act, or quoted in a U.S.
automated inter-dealer quotation system. 
No securities of the Company of the same class as the Offered Securities
and any PIK Additional Securities that may be issued have been offered, issued
or sold by the Company or any of its respective Affiliates within the six-month
period immediately prior to the date hereof in a transaction that could be
integrated with the Offering.

(dd)                          Neither
of the Company nor any of its respective affiliates or other person acting on
behalf of the Company has offered or sold the Offered Securities or any PIK
Additional Securities that may be issued by means of any general solicitation
or general advertising within the meaning of Rule 502(c) under the Act or, with
respect to Offered Securities or any PIK Additional Securities that may be
issued, sold outside the United States to non-U.S. persons (as defined in Rule
902 under the Act), by means of any directed selling efforts within the meaning
of Rule 902 under the Act, and the Company, any affiliate of the Company and
any person acting on behalf of the Company have complied with and will
implement the “offering restrictions” within the meaning of such Rule 902; provided,
that no representation is made in this subsection with respect to the actions
of the Initial Purchasers.

(ee)                            Each
of the Company, the Subsidiaries, and each ERISA Affiliate (as hereinafter
defined) has fulfilled its obligations, if any, under the minimum funding
standards of Section 302 of the United States Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) with respect to each “pension
plan” (as defined in Section 3(2) of ERISA), subject to Section 302 of ERISA
which the Company, the Subsidiaries, or any ERISA Affiliate sponsors or maintains,
or with respect to which it has (or within the last three years had) any
obligation to make contributions, and each such plan is in compliance in all
material respects with the presently applicable provisions of ERISA and the
Internal Revenue Code of 1986, as amended (the “Code”).  Neither the Company, the Subsidiaries, nor
any ERISA Affiliate has incurred any unpaid liability to the Pension Benefit
Guaranty Corporation (other than for the payment of premiums in the ordinary
course) or to any such plan under Title IV of ERISA.  “ERISA Affiliate” means a corporation,
trade or business that is, along with the Company or any Subsidiary, a member
of a controlled group of corporations or a controlled group of trades or
businesses, as described in Section 414 of the Code or Section 4001 of ERISA.

(ff)                                (i)
Neither the Company nor any of the Subsidiaries is party to or bound by any
collective bargaining agreement with any labor organization; (ii) there is no
union representation question existing with respect to the employees of the
Company or the Subsidiaries, and, to the best knowledge of the Company, no
union organizing activities are taking place that, could, individually or in
the aggregate, have a Material Adverse Effect; (iii) to the Company’s best
knowledge, no union organizing or decertification efforts are underway or
threatened against the Company or the Subsidiaries; (iv) no labor strike, work
stoppage, slowdown, or other material labor dispute is pending against the
Company or the Subsidiaries, or, to the best knowledge of the Company,
threatened against the Company or the Subsidiaries; (v) there is no worker’s
compensation liability, experience or matter that could be reasonably expected
to have a Material Adverse Effect; (vi) to the best knowledge of the Company,
there is no threatened or pending liability against the Company or the
Subsidiaries pursuant to the Worker Adjustment Retraining and Notification
Act  of 1988, as amended, or any similar
state or local law; (vii) there is no employment-related charge, complaint,
grievance, investigation, unfair labor practice claim, or inquiry of any kind,
pending against the Company or the Subsidiaries that could, individually or in
the aggregate, have a Material Adverse Effect; (viii) to the best knowledge of
the Company, no employee or agent of the Company or the Subsidiaries has
committed any act or omission giving rise to liability for any violation
identified in subsection (vii) and (viii) above, other than such 

 12
 

 

acts or omissions that
would not, individually or in the aggregate, have a Material Adverse Effect;
and (ix) no term or condition of employment exists through arbitration awards,
settlement agreements, or side agreement that is contrary to the express terms
of any applicable collective bargaining agreement.

(gg)                          None of
the transactions contemplated in the Documents or the application of the
proceeds by the Company or any of the Subsidiaries of the proceeds of the
Offered Securities will violate or result in a violation by the Company or any
of the Subsidiaries of Section 7 of the Exchange Act, (including, without
limitation, Regulation T (12 C.F.R. Part 220), Regulation U (12 C.F.R. Part
221) or Regulation X (12 C.F.R. Part 224) of the Board of Governors of the
Federal Reserve System).

(hh)                          Neither
the Company nor any of the Subsidiaries is an open-end investment company, unit
investment trust or face-amount certificate company that is or is required to
be registered under Section 8 of the United States Investment Company Act of
1940 (the “Investment Company Act”); and neither the Company nor any of
the Subsidiaries, after giving effect to the Offering and sale of the Offered
Securities and the application of the proceeds thereof as described in the Time
of Sale Document and the Final Offering Memorandum, will be an “investment
company” as defined in the Investment Company Act.

(ii)                                  The
Company has not engaged any broker, finder, commission agent or other person
(other than the Initial Purchasers) in connection with the Offering or any of
the transactions contemplated in the Documents, and the Company is not under
any obligation to pay any broker’s fee or commission in connection with such
transactions (other than commissions or fees to the Initial Purchasers).

(jj)                                  Each
of the Company and the Subsidiaries is (i) in compliance with any and all
applicable foreign, federal, state and local laws and regulations relating to
the protection of the environment or hazardous or toxic substances of wastes,
pollutants or contaminants (“Environmental Laws”), (ii) has
received and is in compliance with all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct its respective
business and (iii) has not received notice of any actual or potential liability
for the investigation or remediation of any disposal or release of hazardous or
toxic substances or wastes, pollutants or contaminants, in each case except
where such non-compliance with Environmental Laws, failure to receive and
comply with required permits, licenses or other approvals, or liability would
not, individually or in the aggregate, have a Material Adverse Effect, whether or not arising from transactions
in the ordinary course of business. 
Neither the Company nor any of the Subsidiaries has been named as a “potentially
responsible party” under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended.

(kk)                            Except
as disclosed in the Time of Sale Document and the Final Offering Memorandum, as
of the Closing Date, there will be no encumbrances or restrictions, on the
ability of any Subsidiary of the Company (x) to pay dividends or make other
distributions on such Subsidiary’s capital stock or to pay any indebtedness to
the Company or any other Subsidiary of the Company, (y) to make loans or
advances or pay any indebtedness to, or investments in, the Company or any
other Subsidiary of the Company or (z) to transfer any of its property or
assets to the Company or any other Subsidiary of the Company.

(ll)                                  Each
certificate signed by any officer of the Company, or any Subsidiary thereof,
delivered to the Initial Purchasers shall be deemed a representation and
warranty by the Company or any such Subsidiary thereof (and not individually by
such officer) to the Initial Purchasers with respect to the matters covered
thereby.  All information certified by an
officer of the Company in the 

 13
 

 

Perfection Certificate,
dated as of the First Closing Date, and delivered by such officer on behalf of
the Company, is and will be true and correct as of any Closing Date.

(mm)                      Each of the
Company and each of its respective Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as the Company believes are prudent and customary in the businesses in
which they are engaged.  All policies of
insurance insuring the Company or any of its respective Subsidiaries or their
respective businesses, assets, employees, officers and directors are in full
force and effect.  The Company and the
Subsidiaries are in compliance with the terms of such policies and instruments
in all material respects, and there are no material claims by the Company or
any of the Subsidiaries under any such policy or instrument as to which any
insurance company is denying liability or defending under a reservation of
rights clause.  Neither the Company nor
any such Subsidiary has been refused any insurance coverage sought or applied
for, and neither the Company nor any such Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as
may be necessary to continue its business at a cost that would not,
individually or in the aggregate, have a Material Adverse Effect.

(nn)                          To the
extent required by the Exchange Act, each of the Company and each of its
Subsidiaries has established and maintains and evaluates “disclosure controls
and procedures” (as such term is defined in Rule 13a-15 and 15d-15 under the
Exchange Act) and “internal control over financial reporting” (as such term is
defined in Rule 13a-15 and 15d-15 under the Exchange Act); such disclosure
controls and procedures and internal control over financial reporting are
designed to ensure that material information relating to the Company, including
its consolidated subsidiaries, is made known to each of the Company’s chief
executive officer and chief financial officer by others within the Company, and
such disclosure controls and procedures and internal control over financial
reporting are effective to perform the functions for which they were
established; the Company’s independent auditors and audit committee have been
advised of: (i) all significant deficiencies, if any, in the design or
operation of internal control over financial reporting which could adversely
affect the Company’s ability to record, process, summarize and report financial
data and (ii) all fraud, if any, whether or not material, that involves
management or other employees who have a role in the Company’s internal control
over financial reporting; all material weaknesses, if any, in internal control
over financial reporting have been identified to the Company’s independent
auditors and audit committee; since the date of the most recent evaluation of
such disclosure controls and procedures and internal control over financial
reporting, there have been no significant changes in internal control over
financial reporting or in other factors that could significantly affect
internal control over financial reporting, except for any corrective actions
with regard to significant deficiencies and material weaknesses disclosed in
the Time of Sale Document and the Final Offering Memorandum; the principal
executive officers (or their equivalents) and principal financial officers (or
their equivalents) of the Company have made all certifications required by the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and any related
rules and regulations promulgated by the SEC, and the statements contained in
each such certification are complete and correct; and the Company, its
Subsidiaries and the Company’s board of directors and officers are each in
compliance in all material respects with all applicable effective provisions of
the Sarbanes-Oxley Act and the rules and regulations of the SEC promulgated
thereunder.

(oo)                          Ernst
& Young LLP and KBA Group LLP, who have each audited the Financial
Statements contained in the Time of Sale Document and the Final Offering
Memorandum, are each independent registered public accounting firms with
respect to the Company and its predecessor and their Subsidiaries within the
applicable rules and regulations adopted by the SEC and the Public Accounting
Oversight Board (United States) and as required by the Securities Act.

 14
 

 

(pp)                          Each of
the Collateral Agreements, once executed and delivered, will be effective to
create in favor of the Collateral Agent for the benefit of the secured parties
named therein, legal, valid and enforceable liens on, and security interests
in, all property pledged or granted as collateral pursuant to the Collateral
Agreements (the “Collateral”) and, when (i) financing statements and
other filings in appropriate form are filed in the offices specified on Schedule
7 to the Perfection Certificate and (ii) upon the taking of possession or
control by the Collateral Agent of the Collateral with respect to which a
security interest may be perfected only by possession or control (which
possession or control shall be given to the Collateral Agent to the extent
possession or control by the Collateral Agent is required by the applicable
Collateral Agreement), the liens created by the Collateral Agreements shall
constitute fully perfected liens on, and security interests in, all right,
title and interest of the grantors in the Collateral, in each case subject to
no liens other than Permitted Liens. 
Each Collateral Agreement delivered after the First Closing Date
pursuant to the Indenture will, upon execution and delivery thereof, be
effective to create in favor of the Collateral Agent, for the benefit of the
secured parties named therein, legal, valid and enforceable liens on, and
security interests in, all of the applicable Guarantors’ right, title and
interest in and to the Collateral thereunder, and (i) when all appropriate
filings or recordings are made in the appropriate offices as may be required
under applicable law and (ii) upon the taking of possession or control by the
Collateral Agent of such Collateral with respect to which a security interest
may be perfected only by possession or control (which such possession or
control shall be given to the Collateral Agent to the extent required by such
Collateral Agreement), such Collateral Agreement will constitute fully
perfected liens on, and security interests in, all right, title and interest of
the Guarantors in the Collateral thereunder, in each case subject to no liens
other than the applicable Permitted Liens set forth in such Collateral
Agreement.

5.             Covenants of the Company and the Guarantors.   Each
of the Company and the Guarantors jointly and severally agrees:

(a)                                  To
(i) advise the Initial Purchasers promptly after obtaining knowledge (and, if
requested by the Initial Purchasers, confirm such advice in writing) of (A) the
issuance by any state securities commission of any stop order suspending the
qualification or exemption from qualification of any of the Offered Securities
for offer or sale in any jurisdiction, or the initiation of any proceeding for
such purpose by any state securities commission or other regulatory authority,
or (B) the happening of any event that makes any statement of a material fact
made in the Time of Sale Document or the Final Offering Memorandum untrue or
that requires the making of any additions to or changes in the Time of Sale
Document or the Final Offering Memorandum in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, (ii) use its commercially reasonable efforts to prevent the
issuance of any stop order or order suspending the qualification or exemption
from qualification of any of the Offered Securities under any state securities
or Blue Sky laws, and (iii) if, at any time, any state securities commission or
other regulatory authority shall issue an order suspending the qualification or
exemption from qualification of any of the Offered Securities under any such
laws, use its reasonable best efforts to obtain the withdrawal or lifting of
such order at the earliest possible time.

(b)                                 To
(i) furnish the Initial Purchasers, without charge, as many copies of the Time
of Sale Document and the  Final Offering
Memorandum, and any amendments or supplements thereto, as the Initial
Purchasers may reasonably request, and (ii) promptly prepare, upon the Initial
Purchasers’ reasonable request, any amendment or supplement to the Time of Sale
Document and the Final Offering Memorandum that the Initial Purchasers, upon
advice of legal counsel, determines may be necessary in connection with Exempt
Resales (and the Company hereby consents to the use of the Time of Sale
Document and the  Final Offering
Memorandum, and any 

 15
 

 

amendments and
supplements thereto, by the Initial Purchasers in connection with Exempt
Resales).

(c)                                  Not
to amend or supplement the Time of Sale Document or the  Final Offering Memorandum prior to the last
possible Closing Date, or at any time prior to the completion of the resale by
the Initial Purchasers of all the Securities purchased by the Initial
Purchasers, unless the Initial Purchasers shall previously have been advised
thereof and shall have been given reasonable opportunity to comment thereon and
shall not have objected thereto.

(d)                                 Prior
to the time the Initial Purchasers have completed their distribution of the
Offered Securities and for so long as the Initial Purchasers shall hold any of
the Securities, (i) if any event shall occur as a result of which, in the
reasonable judgment of the Company or the Initial Purchasers, it becomes
necessary or advisable to amend or supplement the Time of Sale Document or
the  Final Offering Memorandum in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading, or if it is necessary to amend or supplement
the Time of Sale Document or the  Final
Offering Memorandum to comply with Applicable Law, to prepare, at the expense
of the Company, an appropriate amendment or supplement to the Time of Sale
Document or the  Final Offering
Memorandum (in form and substance reasonably satisfactory to the Initial
Purchasers) so that (A) as so amended or supplemented, the Time of Sale
Document and the  Final Offering
Memorandum will not include an untrue statement of material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, and (B)
the Time of Sale Document and the  Final
Offering Memorandum will comply with Applicable Law and (ii) if in the
reasonable judgment of the Company it becomes necessary or advisable to amend
or supplement the Time of Sale Document or the 
Final Offering Memorandum so that the Time of Sale Document and the  Final Offering Memorandum will contain all of
the information specified in, and meet the requirements of, Rule 144A(d)(4) of
the Act, to prepare an appropriate amendment or supplement to the Time of Sale
Document or the  Final Offering
Memorandum (in form and substance reasonably satisfactory to the Initial
Purchasers) so that the Time of Sale Document and the  Final Offering Memorandum, as so amended or
supplemented, will contain the information specified in, and meet the
requirements of, Rule 144A(d)(4) of the Act.

(e)                                  To
cooperate with the Initial Purchasers and their counsel in connection with the
qualification of the Offered Securities under the securities or Blue Sky laws
of such jurisdictions as the Initial Purchasers may request and continue such
qualification in effect so long as reasonably required for Exempt Resales.

(f)                                    Whether
or not any of the Offering or the transactions contemplated by the Documents
are consummated or this Agreement is terminated, to pay (i) all costs,
expenses, fees and taxes incident to and in connection with: (A) the
preparation, printing and distribution of the Time of Sale Document and the  Final Offering Memorandum and all amendments
and supplements thereto (including, without limitation, financial statements
and exhibits), and all other agreements, memoranda, correspondence and other
documents prepared and delivered in connection herewith, (B) the negotiation,
printing, processing and distribution (including, without limitation, word
processing and duplication costs) and delivery of each of the Documents, (C)
the preparation, issuance and delivery of the Offered Securities and any PIK
Additional Securities that may be issued, (D) the qualification of the Offered
Securities and any PIK Additional Securities that may be issued for offer and
sale under the securities or Blue Sky laws of the several states (including,
without limitation, the fees and disbursements of counsel to the Initial
Purchasers relating to such registration or qualification), (E) furnishing such
copies of the Time of Sale Document and the 
Final Offering Memorandum, and all amendments and supplements thereto,
as may reasonably be requested for use by the Initial Purchasers and (F) the
performance 

 16
 

 

of the Company’s and the
Guarantors’ obligations under the Registration Rights Agreement, including, but
not limited to, (i) the preparation and filing with the SEC of the Shelf
Registration Statement, (ii) all fees and expenses of the counsel, accountants
and any other experts or advisors retained by the Company and the Guarantors,
(iii) all expenses and listing fees in connection with the application for
quotation of the Offered Securities and any PIK Additional Securities that may
be issued on the Private Offerings, Resales and Trading Automated Linkages (“PORTAL”) Market, (iv) all fees and
expenses (including fees and expenses of counsel) of the Company in connection
with approval of the Offered Securities and any PIK Additional Securities that
may be issued by DTC for “book-entry” transfer, (v) all fees and expenses
(including reasonable fees and expenses of counsel) of the Trustee and all
collateral agents, (vi) all costs and expenses in connection with the creation
and perfection of the Collateral Agreements (including without limitation,
filing and recording fees, search fees, taxes and costs of title policies), and
(vii) all reasonable fees, disbursements and out-of-pocket expenses incurred by
the Initial Purchasers in connection with their services to be rendered
hereunder including, without limitation, the fees and disbursements of Paul,
Hastings, Janofsky & Walker LLP, counsel to the Initial Purchasers, travel
and lodging expenses, word processing charges, messenger and duplicating
services, facsimile expenses and other customary expenditures.

(g)                                 To
use the proceeds of the Offering in the manner described in the Time of Sale
Document and the  Final Offering
Memorandum under the caption “Use of Proceeds.”

(h)                                 To
do and perform all things required to be done and performed under the Documents
prior to and after any Closing Date.

(i)                                     Not
to, and to ensure that no affiliate (as defined in Rule 501(b) of the Act) of
the Company will, sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any “security” (as defined in the Act) that would be
integrated with the sale of the Offered Securities in a manner that would
require the registration under the Act of the sale to the Initial Purchasers or
to the Subsequent Purchasers of the Offered Securities.

(j)                                     For
so long as any of the Offered Securities and any PIK Additional Securities that
may be issued remain outstanding, during any period in which the Company is not
subject to Section 13 or 15(d) of the Exchange Act, to make available, upon
request, to any owner of the Offered Securities and any PIK Additional
Securities that may be issued in connection with any sale thereof and any
prospective Subsequent Purchasers of such Offered Securities and any PIK
Additional Securities that may be issued from such owner, the information
required by Rule 144A(d)(4) under the Act.

(k)                                  To
comply with the representation letter of the Company to DTC relating to the
approval of the Offered Securities and any PIK Additional Securities that may
be issued by DTC for “book entry” transfer.

(l)                                     To
use its best efforts to effect the inclusion of the Offered Securities and any
PIK Additional Securities that may be issued in the PORTAL Market.

(m)                               For
so long as any of the Offered Securities and any PIK Additional Securities that
may be issued remain outstanding, the Company will furnish to the Initial
Purchasers copies of all reports and other communications (financial or
otherwise) furnished by the Company to the Trustee or to the holders of the
Offered Securities and any PIK Additional Securities that may be issued and, as
soon as available, copies of any reports or financial statements furnished to
or filed by the Company with the SEC or any national securities exchange on
which any class of securities of the Company may be listed.

 17
 

 

(n)                                 Except
in connection with the filing of the Shelf Registration Statement, not to, and
not to authorize or permit any person acting on its behalf to, (i) distribute
any offering material in connection with the offer and sale of the Offered
Securities or any PIK Additional Securities that may be issued other than the
Time of Sale Document and the Final Offering Memorandum and any amendments and
supplements to the Final Offering Memorandum prepared in compliance with this
Agreement, or (ii) solicit any offer to buy or offer to sell the Offered
Securities or any PIK Additional Securities that may be issued by means of any
form of general solicitation or general advertising (including, without
limitation, as such terms are used in Regulation D under the Act) or in any
manner involving a public offering within the meaning of Section 4(2) of the
Act.

(o)                                 During
the two year period after the last possible Closing Date (or such shorter
period as may be provided for in Rule 144(k) under the Act, as the same may be
in effect from time to time), to not, and to not permit any current or future
Subsidiaries of either the Company or any other affiliates (as defined in Rule
144A under the Act) controlled by the Company to, resell any of the Offered
Securities and any PIK Additional Securities that may be issued which
constitute “restricted securities” under Rule 144 that have been reacquired by
the Company, any current or future Subsidiaries or any other “affiliates” (as
defined in Rule 144A under the Act) controlled by the Company, except pursuant
to an effective registration statement under the Act.

(p)                                 The
Company shall pay all stamp, documentary and transfer taxes and other duties,
if any, which may be imposed by the United States or any political subdivision
thereof or taxing authority thereof or therein with respect to the issuance of
the Offered Securities and any PIK Additional Securities that may be issued or
the sale thereof to the Initial Purchasers.

(q)                                 To
file, on a timely basis, with the SEC and the Nasdaq Global Market all reports
and documents required to be filed under the Exchange Act.

(r)                                    To
use its best efforts to:  (i) obtain a
letter from the Nasdaq Global Market to the effect that the Nasdaq Global
Market concurs with the Company’s view that the issuance of the Securities
pursuant to the terms hereof and of the Securities and the Indenture does not
require shareholder approval, (ii) obtain the approval by the Nasdaq Global
Market of the Company’s listing application for the Shares up to the Share Cap
to be issued upon conversion of the Securities and the approval of such Shares
for quotation on the Nasdaq Global Market and (iii) maintain the inclusion and
quotation of its shares of Common Stock, including the Shares, on the Nasdaq
Global Market or another national securities exchange.

(s)                                  To
comply with all of their agreements set forth in the Registration Rights
Agreement.

(t)                                    Until
the Initial Purchasers shall have notified the Company of the completion of the
resales of the Securities, not to, and not to permit any of their affiliated
purchasers (as such term is defined in Regulation M under the Exchange Act) to,
either alone or with one or more other persons, bid for or purchase for any
account in which they or any of their affiliated purchasers has a beneficial
interest in any Securities or shares of the Common Stock of the Company in
violation of Regulation M; and none of the Company or any of its affiliated
purchasers will make bids or purchases for the purpose of creating actual, or
apparent, active trading in, or of raising the price of, the Securities or the
shares of Common Stock of the Company.

(u)                                 The Company will reserve and keep available at all
times, free of preemptive or other similar rights and liens and adverse claims,
sufficient shares of Common Stock to satisfy its obligation to issue such
Shares upon conversion of the Offered Securities and all of the PIK Additional 

 18
 

 

Securities
that the Company may elect to issue pursuant to the Offered Securities and the
Indenture.

(v)                                 The Company shall use its best efforts to obtain, as
promptly as practical, the required approval of its shareholders of the terms
of the Securities and the issuance of the Shares in excess of the Share Cap
upon the conversion thereof pursuant to the terms of the Securities and the
Indenture and to obtain the approval by the Nasdaq Global Market or such other
national securities exchange on which the Company’s Common Stock is then listed
of the Company’s listing application for the Shares in excess of the Shares Cap
to be issued upon conversion of the Securities and the approval of such Shares
for quotation on the Nasdaq Global Market or such other national securities
exchange.

6.             Representations and Warranties
of the Initial Purchasers.   Each of the Initial
Purchasers, severally and not jointly, represents and warrants (as to itself
only) that:

(a)                                  It
is a QIB as defined in Rule 144A under the Act and it will offer the Offered
Securities for resale only upon the terms and conditions set forth in this
Agreement and in the Time of Sale Document and the  Final Offering Memorandum.

(b)                                 It
is not acquiring the Offered Securities with a view to any distribution thereof
that would violate the Act or the securities laws of any state of the United States
or any other applicable jurisdiction.  In
connection with the Exempt Resales, it will solicit offers to buy the Offered
Securities only from, and will offer and sell the Offered Securities only to,
(A) persons reasonably believed by it to be QIBs or (B) persons reasonably
believed to be Accredited Investors or (C) persons reasonably believed by it to
be non-U.S. persons referred to in Regulation S under the Act; provided,
however, that in purchasing such Offered Securities, such persons are
deemed to have represented and agreed as provided under the caption “Notice to
Investors” contained in the Time of Sale Document and the  Final Offering Memorandum.

(c)                                  No
form of general solicitation or general advertising in violation of the Act has
been or will be used nor will any offers in any manner involving a public
offering within the meaning of Section 4(2) of the Act or, with respect to
Offered Securities to be sold in reliance on Regulation S, by means of any
directed selling efforts be made by such Initial Purchaser or any of its
representatives in connection with the offer and sale of any of the Offered
Securities.

7.             Conditions.   The
obligations of the Initial Purchasers to purchase and pay for the Offered
Securities as provided for under this Agreement on the First Closing Date and,
with respect to the Optional Additional Securities, each Option Closing Date,
are subject to the performance by the Company and each of the Guarantors of
their respective covenants and obligations hereunder and the satisfaction of
each of the following conditions:

(a)                                  All
the representations and warranties of the Company and the Guarantors contained
in this Agreement and in each of the Documents shall be true and correct as of
the date hereof and at the First Closing Date as though then made and, with
respect to the Optional Additional Securities, as of each Option Closing Date
as though then made.  On or prior to the
First Closing Date and, with respect to the Optional Additional Securities,
each Option Closing Date, the Company and the Guarantors and each other party
to the Documents (other than the Initial Purchasers) shall have performed or
complied with all of the agreements and satisfied all conditions on their
respective parts to be performed, complied with or satisfied pursuant to the
Documents, including, without limitation, all of the conditions set forth below
(other than conditions to be satisfied by such other parties, which the failure
to so satisfy would not, individually or in the aggregate, have a Material
Adverse Effect).

 

 19

 

(b)                                 No
injunction, restraining order or order of any nature by a Governmental
Authority shall have been issued as of the First Closing Date and, with respect
to the Optional Additional Securities, each Option Closing Date, that would
prevent or materially interfere with the consummation of the Offering or any of
the transactions contemplated under the Documents; and no stop order suspending
the qualification or exemption from qualification of any of the Securities in
any jurisdiction shall have been issued and no Proceeding for that purpose
shall have been commenced or, to the knowledge of the Company, after due
inquiry, be pending or contemplated as of the First Closing Date and, with
respect to the Optional Additional Securities, each Option Closing Date.

(c)                                  No
action shall have been taken and no Applicable Law shall have been enacted,
adopted or issued that would, as of the First Closing Date and, with respect to
the Optional Additional Securities, each Option Closing Date, prevent the
consummation of the Offering or any of the transactions contemplated under the
Documents. No Proceeding shall be pending or, to the knowledge of the Company,
after due inquiry, threatened other than Proceedings that (A) if adversely
determined would not, individually or in the aggregate, adversely affect the
issuance or marketability of the Securities or the issuance of the Shares upon
conversion of the Offered Securities at the option of the holders thereof, and
(B) would not, individually or in the aggregate, have a Material Adverse
Effect.  The Company shall not have
amended or supplemented the Time of Sale Document or the Final Offering
Memorandum unless the Initial Purchasers shall previously have been advised of
such proposed amendment or supplement at least two business days prior to the
proposed use, and shall not have reasonably objected to such amendment or
supplement.

(d)                                 Subsequent
to the respective dates as of which data and information is given in the Time
of Sale Document and the Final Offering Memorandum, there shall not have been
any Material Adverse Change.

(e)                                  The
Nasdaq Global Market shall have issued a letter concurring with the Company’s
view that the issuance of the Securities pursuant to the terms hereof and of
the Securities and the Indenture does not require shareholder approval.  The Nasdaq Global Market shall have approved
the Company’s listing application for the Shares to be issued upon conversion
of the Securities and the Shares shall have been approved for quotation on the
Nasdaq Global Market.  The Company’s
Common Stock shall not have been suspended by the SEC or the Nasdaq Global
Market.

(f)                                    The
Securities shall have been designated PORTAL securities in accordance with the
rules and regulations adopted by the National Association of Securities Dealers,
Inc. relating to trading in the PORTAL Market and all agreements set forth in
the representation letter of the Company and the Guarantors to DTC relating to
the approval of the Securities by DTC for “book-entry” transfer shall have been
complied with.

(g)                                 On
or after the date hereof, (i) there shall not have occurred any downgrading,
suspension or withdrawal of, nor shall any notice have been given of any
potential or intended downgrading, suspension or withdrawal of, or of any
review (or of any potential or intended review) for a possible change that does
not indicate the direction of the possible change in, any rating of the Company
or any securities of the Company (including, without limitation, the placing of
any of the foregoing ratings on credit watch with negative or developing
implications or under review with an uncertain direction) by any “nationally
recognized statistical rating organization” as such term is defined for
purposes of Rule 436(g)(2) under the Act, (ii) there shall not have occurred
any change, nor shall any notice have been given of any potential or intended
change, in the outlook for any rating of the Company or any securities of the
Company by any such rating 

 20
 

 

organization and (iii) no such rating organization
shall have given notice that it has assigned (or is considering assigning) a
lower rating to the Notes than that on which the Notes were marketed.

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

(i)                                     certificates
dated the First Closing Date and, with respect to the Optional Additional
Securities, each Option Closing Date, signed by (1) the Chief Executive Officer
and (2) the principal financial or accounting officer of the Company, on behalf
of the Company and the Guarantors, to the effect that (a) the representations
and warranties set forth in Section 4 hereof, in each of the Documents and the
Perfection Certificate are true and correct in all material respects with the
same force and effect as though expressly made at and as of the First Closing
Date and, with respect to the Optional Additional Securities, each Option
Closing Date, (b) the Company and the Guarantors have performed and complied
with all agreements and satisfied all conditions in all material respects on
their part to be performed or satisfied at or prior to the First Closing Date
and, with respect to the Optional Additional Securities, each Option Closing
Date, (c) at the First Closing Date and, with respect to the Optional
Additional Securities, each Option Closing Date, since the date hereof or since
the date of the most recent financial statements in the Time of Sale Document
and the Final Offering Memorandum (exclusive of any amendment or supplement
thereto after the date hereof), no event or events have occurred, no information
has become known nor does any condition exist that, individually or in the
aggregate, would have a Material Adverse Effect, (d) since the date of the most
recent financial statements in the Time of Sale Document and the Final Offering
Memorandum (exclusive of any amendment or supplement thereto after the date
hereof), other than as described in the Time of Sale Document and the Final
Offering Memorandum or contemplated hereby, neither the Company nor any
Subsidiary of the Company has incurred any liabilities or obligations, direct
or contingent, not in the ordinary course of business, that are material to the
Company and the Subsidiaries, taken as a whole, or entered into any
transactions not in the ordinary course of business that are material to the
business, condition (financial or otherwise) or results of operations or
prospects of the Company and the Subsidiaries, taken as a whole, and there has
not been any change in the capital stock or long-term indebtedness of the
Company or any Subsidiary of the Company that is material to the business,
condition (financial or otherwise) or results of operations or prospects of the
Company and the Subsidiaries, taken as a whole, (e) there shall have been no
dividend or distribution of any kind declared, paid or made by the Company on
any class of its Common Stock, and (f) the sale of the Securities has not been
enjoined (temporarily or permanently).

(ii)                                  a
certificate, dated the First Closing Date and, with respect to the Optional
Additional Securities, each Option Closing Date, executed by the Secretary of
the Company and each Guarantor, certifying such matters as the Initial
Purchasers may reasonably request.

(iii)                               a
certificate of solvency, dated the First Closing Date and, with respect to the
Optional Additional Securities, each Option Closing Date, executed by the
principal financial or accounting officer of the Company substantially in the
form previously approved by the Initial Purchasers or their counsel.

(iv)                              evidence
satisfactory to the Initial Purchasers and the Collateral Agent that the
insurance policies required by the Indenture and any Collateral Agreement are
in full force and effect together with, in respect of those insurance policies
maintained with respect to the properties of the Guarantors, (A) endorsements
naming the Collateral Agent, on behalf of the secured parties, as an additional
insured and/or loss payee and (B) a provision that 

 21
 

 

cancellation, material
addition in amount or material change in coverage shall not be effective until
30 days after written notice to the Collateral Agent.

(v)                                 evidence
acceptable to the Initial Purchasers of payment or arrangements for payment by
the Guarantors of all applicable recording taxes, fees, charges, costs and
expenses required for the recording of the Collateral Agreements.

(vi)                              all
certificates, agreements or instruments representing or evidencing Capital
Stock pledged to the Collateral Agent (the “Pledged Shares”) accompanied
by instruments of transfer and stock powers undated and endorsed in blank.

(vii)                           the
opinion of Andrews Kurth LLP, counsel to the Company and the Guarantors, dated
the First Closing Date and, with respect to the Optional Additional Securities,
each Option Closing Date, in form and substance reasonably satisfactory to the
Initial Purchasers.

(viii)                        the
opinion of Willkie Farr & Gallagher LLP, regulatory counsel to the Company,
dated the First Closing Date and, with respect to the Optional Additional
Securities, each Option Closing Date, reasonably satisfactory to the Initial
Purchasers in substantially the form of Exhibit A attached hereto.

(ix)                                the
FCC opinion of Willkie Farr & Gallagher LLP, regulatory counsel to the
Company, dated the First Closing Date and, with respect to the Optional
Additional Securities, each Option Closing Date, reasonably satisfactory to the
Initial Purchasers in substantially the form of Exhibit B attached
hereto.

(x)                                   an
opinion, dated the First Closing Date and, with respect to the Optional
Additional Securities, each Option Closing Date, of Paul, Hastings, Janofsky
&Walker LLP, counsel to the Initial Purchasers, in form and substance
satisfactory to the Initial Purchasers covering such matters as are customarily
covered in such opinions.

(i)                                     The
Initial Purchaser shall have received from Ernst & Young LLP, independent
registered public accounting firm, and KBA Group LLP, independent registered
public accounting firm, with respect to the Company and its predecessor, (A) a
customary comfort letter, dated the date hereof, in form and substance
reasonably satisfactory to the Initial Purchasers and their counsel, with
respect to the financial statements and certain financial information contained
in the Preliminary Offering Memorandum and the Final Offering Memorandum (in
the case of Ernst & Young LLP) and the Time of Sale Document (in the case
of KBA Group LLP), and (B) a customary comfort letter, dated the First Closing
Date and, with respect to the Optional Additional Securities, each Option
Closing Date, in form and substance reasonably satisfactory to the Initial
Purchasers and its counsel, to the effect that Ernst& Young LLP and KBA
Group LLP reaffirm the statements made in their letters furnished pursuant to
clause (A) with respect to the financial statements and certain financial
information contained in the Time of Sale Document and the Final Offering
Memorandum.

(j)                                     Each
of the Documents shall have been executed and delivered by all parties thereto
(other than the Initial Purchasers), and the Initial Purchasers shall have
received a fully executed original of each Document.

 22
 

 

(k)                                  The
Initial Purchasers shall have received copies of all opinions, certificates,
letters and other documents delivered under or in connection with the Offering
or any transaction contemplated in the Documents.

(l)                                     The
terms of each Document shall conform in all material respects to the
description thereof in the Time of Sale Document and the Final Offering
Memorandum.

(m)                               The
Collateral Agent shall have received (with a copy for each of the Initial
Purchasers) on the First Closing Date:

(i)                                     appropriately
completed copies of Uniform Commercial Code financing statements naming the
Company and each Guarantor as a debtor and the Collateral Agent as the secured
party, or other similar instruments or documents to be filed under the UCC of
all jurisdictions as may be necessary or, in the reasonable opinion of the
Collateral Agent and its counsel, desirable to perfect the security interests
of the Collateral Agent pursuant to the Collateral Agreements;

(ii)                                  appropriately
completed copies of Uniform Commercial Code Form UCC-3 termination
statements, if any, necessary to release all Liens (other than Permitted Liens)
of any Person in any collateral described in any security agreement previously
granted by any Person;

(iii)                               certified
copies of Uniform Commercial Code Requests for Information or Copies (Form UCC-11),
or a similar search report certified by a party acceptable to the Collateral
Agent, dated a date reasonably near to the First Closing Date, listing all
effective financing statements which name the Company or any Guarantor (under
its present name and any previous names) as the debtor, together with copies of
such financing statements (none of which shall cover any collateral described
in any Collateral Agreement, other than such financing statements that evidence
Permitted Liens);

(iv)                              such
other approvals, opinions, or documents as the Collateral Agent may reasonably
request in form and substance reasonably satisfactory to the Collateral Agent;
and

(v)                                 the
Collateral Agent and its counsel shall be reasonably satisfied that (i) the Lien granted to the Collateral Agent, for the
benefit of the secured parties in the collateral described above is of the
priority described in the Time of Sale Document and the Final Offering
Memorandum; and (ii) no Lien exists on any of the
collateral described above other than the Lien created in favor of the
Collateral Agent, for the benefit of the secured parties, pursuant to a
Collateral Agreement, in each case subject to the Permitted Liens.

(n)                                 The
Company’s shareholders, holding a sufficient number of shares of the Company’s
Common Stock to approve the terms of the Securities and the issuance of the
Shares upon the conversion thereof pursuant to the terms of the Securities and
the Indenture, shall have irrevocably agreed to vote in favor of a resolution
to approve the terms of the Securities and such issuance of Shares.

8.             Indemnification and Contribution.

(a)                                  The
Company and each of the Guarantors jointly and severally agree to indemnify and
hold harmless each Initial Purchaser, the directors, officers and employees of
each Initial Purchaser, and each person, if any, who controls either Initial
Purchaser within the meaning of the Act or the Exchange Act, against any
losses, claims, damages or liabilities of any kind to which the Initial 

 23
 

 

Purchaser, director, officer, employee or such
controlling person may become subject under the Act, the Exchange Act or other
federal or state statutory law or regulation, or at common law or otherwise
(including in settlement of any litigation, if such settlement is effected with
the written consent of the Company (not to be unreasonably withheld, delayed or
conditioned)), insofar as any such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon:

(i)                                     any
untrue statement or alleged untrue statement of a material fact contained in
the Time of Sale Document or the Final Offering Memorandum, or any amendment or
supplement thereto;

(ii)                                  the
omission or alleged omission to state, in the Time of Sale Document or the
Final Offering Memorandum or any amendment or supplement thereto, a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading; or

(iii)                               any
breach by the Company or any of the Guarantors of their respective
representations, warranties and agreements set forth herein or of applicable
law;

and, subject to the provisions hereof, will reimburse, as incurred, each
Initial Purchaser, director, officer, employee and each such controlling person
for any legal or other expenses incurred by them in connection with
investigating, defending against or appearing as a third-party witness in
connection with any such loss, claim, damage, liability or action in respect
thereof; provided, however, the Company and the Guarantors will
not be liable in any such case to the extent (but only to the extent) that a
court of competent jurisdiction shall have determined by a final, unappealable
judgment that such loss, claim, damage or liability resulted solely from any
untrue statement or alleged untrue statement or omission or alleged omission
made in the Time of Sale Document or the Final Offering Memorandum or any
amendment or supplement thereto in reliance upon and in conformity with written
information concerning any Initial Purchaser furnished to the Company by the
Representative specifically for use therein, it
being understood and agreed that the only such information furnished by any
Initial Purchaser to the Company consists of the information described in
Section 12 hereof.  The indemnity
agreement set forth in this Section 8 shall be in addition to any liability
that the Company and the Guarantors may otherwise have to the indemnified parties.

(b)                                 Each
Initial Purchaser, severally and not jointly, agrees to indemnify and hold
harmless each of the Company, each of the Guarantors and their respective
directors, officers and each person, if any, who controls the Company within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act against
any losses, claims, damages or liabilities to which the Company, any of the
Guarantors or any such director, officer or controlling person may become
subject under the Act, the Exchange Act or otherwise, insofar as a court of
competent jurisdiction shall have determined by a final, unappealable judgment
that such losses, claims, damages or liabilities (or actions in respect
thereof) have resulted solely from (i) any untrue statement or alleged untrue
statement of any material fact contained in the Time of Sale Document or the
Final Offering Memorandum or any amendment or supplement thereto or (ii) the
omission or the alleged omission to state therein a material fact required to
be stated in the Time of Sale Document or the Final Offering Memorandum or any
amendment or supplement thereto or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, in each
case to the extent (but only to the extent) that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information concerning such Initial
Purchaser, furnished to the Company or its agents by the Representative
specifically for use therein; and, subject to the limitation set forth
immediately 

 24
 

 

preceding this
clause, will reimburse, as incurred, any legal or other expenses incurred by
the Company, each of the Guarantors or any such director, officer or controlling
person in connection with any such loss, claim, damage, liability or action in
respect thereof.  This indemnity
agreement will be in addition to any liability that the Initial Purchasers may
otherwise have to the indemnified parties.

(c)                                  As
promptly as reasonably practicable after receipt by an indemnified party under
this Section 8 of notice of the commencement of any action for which such
indemnified party is entitled to indemnification under this Section 8, such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party of the
commencement thereof in writing; but the omission to so notify the indemnifying
party (i) will not relieve such indemnifying party from any liability under
paragraph (a) or (b) above unless and only to the extent it is materially
prejudiced as a result thereof and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraphs (a) and (b) above.  In case any such action is brought against
any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein
and, to the extent that it may elect,
jointly with any other indemnifying party similarly notified, to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified
party; provided, however, that if (i) the use of counsel chosen
by the indemnifying party to represent the indemnified party would present such
counsel with a conflict of interest, (ii) the defendants in any such action
include both the indemnified party and the indemnifying party, and the
indemnified party shall have concluded that a
conflict may arise between the positions of the indemnifying party and the
indemnified party in conducting the defense of any such action or that
there may be one or more legal defenses available to it and/or other
indemnified parties that are different from or additional to those available to
the indemnifying party, or (iii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after receipt by the indemnifying
party of notice of the institution of such action, then, in each such case, the
indemnifying party shall not have the right to direct the defense of such
action on behalf of such indemnified party or parties and such indemnified
party or parties shall have the right to select separate counsel to defend such
action on behalf of such indemnified party or parties at the expense of the
indemnifying party.  After notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof and approval by such indemnified party of counsel appointed
to defend such action, the indemnifying party will not be liable to such
indemnified party under this Section 8 for any legal or other expenses, other than
reasonable costs of investigation, subsequently incurred by such indemnified
party in connection with the defense thereof, unless (i) the indemnified party
shall have employed separate counsel in accordance with the proviso to the
immediately preceding sentence (it being understood, however, that in
connection with such action the indemnifying party shall not be liable for the
expenses of more than one separate counsel (in addition to local counsel) in
any one action or separate but substantially similar actions in the same
jurisdiction arising out of the same general allegations or circumstances,
designated by the Initial Purchasers in the case of paragraph (a) of this
Section 8 or the Company in the case of paragraph (b) of this Section 8,
representing the indemnified parties under such paragraph (a) or paragraph (b),
as the case may be, who are parties to such action or actions), (ii) the
indemnifying party has authorized in writing the employment of counsel for the
indemnified party at the expense of the indemnifying party or (iii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of commencement of the action, in
each of which cases the fees and expenses of counsel shall be at the expense of
the indemnifying party and shall be paid as they are incurred.  After such notice from the indemnifying party
to such indemnified party, the indemnifying party will not be liable for the
costs and expenses of any settlement of such action effected by such 

 25
 

 

indemnified party without the prior written consent of
the indemnifying party (which consent shall not be unreasonably withheld)
unless such indemnified party waived in writing its rights under this Section
8, in which case the indemnified party may effect such a settlement without
such consent.

(d)                                 No
indemnifying party shall be liable under this Section 8 for any settlement of
any claim or action (or threatened claim or action) effected without its
written consent, which shall not be unreasonably withheld, but if a claim or
action settled with its written consent, or if there be a final judgment for
the plaintiff with respect to any such claim or action, each indemnifying party
jointly and severally agrees, subject to the exceptions and limitations set
forth above, to indemnify and hold harmless each indemnified party from and
against any and all losses, claims, damages or liabilities (and legal and other
expenses as set forth above) incurred by reason of such settlement or
judgment.  No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement or compromise of any pending or threatened proceeding in respect of which
the indemnified party is or could have been a party, or indemnity could have
been sought hereunder by the indemnified party, unless such settlement (A)
includes an unconditional written release of the indemnified party, in form and
substance satisfactory to the indemnified party, from all liability on claims
that are the subject matter of such proceeding and (B) does not include any
statement as to an admission of fault, culpability or failure to act by or on
behalf of the indemnified party.

(e)                                  In
circumstances in which the indemnity agreement provided for in the preceding
paragraphs of this Section 8 is unavailable to, or insufficient to hold
harmless, an indemnified party in respect of any losses, claims, damages or
liabilities (or actions in respect thereof), each indemnifying party, in order
to provide for just and equitable contributions, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect (i) the relative benefits received by the indemnifying
party or parties, on the one hand, and the indemnified party, on the other,
from the Offering or (ii) if the allocation provided by the foregoing clause
(i) is not permitted by applicable law, not only such relative benefits but
also the relative fault of the indemnifying party or parties, on the one hand,
and the indemnified party, on the other, in connection with the statements or
omissions or alleged statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof).  The relative benefits received by the
Company, on the one hand, and the Initial Purchasers, on the other, shall be
deemed to be in the same proportion as the total proceeds from the Offering
(before deducting expenses) received by the Company bear to the total discounts
and commissions received by the Initial Purchasers.  The relative fault of the parties shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company or any of
the Guarantors, on the one hand, or either of the Initial Purchasers, on the
other, the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission or alleged
statement or omissions, and any other equitable considerations appropriate in
the circumstances.

(f)                                    The
Company, the Guarantors and the Initial Purchasers agree that it would not be
equitable if the amount of such contribution determined pursuant to the
immediately preceding paragraph (e) were determined by pro rata or per capita
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the first sentence of the
immediately preceding paragraph (e). 
Notwithstanding any other provision of this Section 8, no Initial
Purchaser shall be obligated to make contributions hereunder that in the
aggregate exceed the total discounts, commissions and other compensation
received by such Initial Purchaser under this Agreement, less the aggregate
amount of any damages that such Initial Purchaser have 

 26
 

 

otherwise been required to pay by reason of the untrue
or alleged untrue statements or the omissions or alleged omissions to state a
material fact.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  For
purposes of the immediately preceding paragraph (e), each director, officer and
employee of the Initial Purchasers and each person, if any, who controls any
Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act shall have the same rights to contribution as the Initial
Purchasers, and each director of the Company and the Guarantors, each officer
of the Company and the Guarantors and each person, if any, who controls either
of the Company or the Guarantors within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act, shall have the same rights to contribution as
the Company and the Guarantors.

9.             Termination.   The Initial Purchasers
may terminate this Agreement at any time prior to a Closing Date by written
notice to the Company if any of the following has occurred:

(a)                                  since
the date hereof, any Material Adverse Effect or development involving or
expected to result in a prospective Material Adverse Effect that could, in the
Initial Purchasers’ reasonable judgment, be expected to (i) make it
impracticable or inadvisable to proceed with the offering or delivery of the
Offered Securities on the terms and in the manner contemplated in the Time of
Sale Document and the Final Offering Memorandum, or (ii) materially impair the
investment quality of any of the Offered Securities;

(b)                                 the
failure of the Company or the Guarantors to satisfy the conditions contained in
Section 7(a) hereof on or prior to any Closing Date;

(c)                                  any
outbreak or escalation of hostilities or other national or international
calamity or crisis, including acts of terrorism, or material adverse change or
disruption in economic conditions in, or in the financial markets of, the
United States (it being understood that any such change or disruption shall be
relative to such conditions and markets as in effect on the date hereof), if
the effect of such outbreak, escalation, calamity, crisis, act or material
adverse change in the economic conditions in, or in the financial markets of,
the United States could be reasonably expected to make it, in the Initial
Purchasers’ judgment, impracticable or inadvisable to market or proceed with
the offering or delivery of the Offered Securities on the terms and in the
manner contemplated in the Time of Sale Document and the Final Offering
Memorandum or to enforce contracts for the sale of any of the Offered
Securities;

(d)                                 the
Nasdaq Global Market shall not concur with the Company’s view that the issuance
of the Securities pursuant to the terms hereof and of the Securities and the
Indenture does not require shareholder approval or the Nasdaq Global Market
shall not have approved the Company’s listing application for the Shares to be
issued upon conversion of the Securities up to the Share Cap or the Shares up
to the Share Cap shall not have been approved for quotation on the Nasdaq
Global Market; trading in the Company’s Common Stock shall have been suspended
by the SEC or the NASDAQ Global Market or the suspension or limitation of
trading generally in securities on the New York Stock Exchange, the American
Stock Exchange or the NASDAQ Global Market or any setting of limitations on
prices for securities on any such exchange or NASDAQ Global Market;

(e)                                  the
enactment, publication, decree or other promulgation after the date hereof of
any Applicable Law that in the Initial Purchasers’ counsel’s reasonable opinion
materially and adversely affects, or could be reasonably expected to materially
and adversely affect, the properties, business, prospects, operations,
earnings, assets, liabilities or condition (financial or otherwise) of the
Company and the Subsidiaries, taken as a whole;

 

 27

 

(f)                                    any
securities of the Company or the any of the Guarantors shall have been
downgraded or placed on any “watch list” for possible downgrading by any “nationally
recognized statistical rating organization,” as such term is defined for
purposes of Rule 436(g)(2) under the Act; or

(g)                                 the
representation and warranty contained in Section 4(a) of this Agreement is
incorrect in any way; or

(h)                                 the
declaration of a banking moratorium by any Governmental Authority, or the
taking of any action by any Governmental Authority after the date hereof in
respect of its monetary or fiscal affairs that in the Initial Purchasers’
opinion could reasonably be expected to have a material adverse effect on the
financial markets in the United States or elsewhere.

10.          Survival of Representations and Indemnities.   The representations
and warranties, covenants, indemnities and contribution and expense
reimbursement provisions and other agreements, representations and warranties
of the Company and the Guarantors set forth in or made pursuant to this
Agreement shall remain operative and in full force and effect, and will
survive, regardless of (i) any investigation, or statement as to the results
thereof, made by or on behalf of any Initial Purchaser, (ii) acceptance of the Offered
Securities, and payment for them hereunder, and (iii) any termination of this
Agreement.

11.          Default by an Initial Purchaser.   If
either Initial Purchaser shall breach its obligations to purchase the Offered
Securities that it has agreed to purchase hereunder on any Closing Date, then
the other Initial Purchaser may, but shall not be required to, purchase such
Offered Securities or may make arrangements satisfactory to the Company for the
purchase of the Offered Securities by other persons.  If such non-defaulting Initial Purchaser does
not elect to purchase such Offered Securities and arrangements satisfactory to
the Company for the purchase of such Offered Securities are not made within 36
hours after such default, this Agreement shall terminate with respect to such
defaulting Initial Purchaser without liability on the part of the Company.  Nothing herein shall relieve the Initial
Purchaser from liability for its default.

12.          Information Supplied by the Initial Purchaser.   The statements set forth on
the cover page with respect to the price and the names of the Initial
Purchasers and in the first sentence of the third paragraph and the tenth
paragraph under the heading “Plan of Distribution” in the  Time of Sale Document and the Final Offering
Memorandum (to the extent such statements relate to the Initial Purchasers)
constitute the only information furnished by the Initial Purchasers to the
Company or the Subsidiaries for the purposes of Sections 4(a) and 8 hereof.

13.          No Fiduciary Relationship.   The
Company and the Guarantors hereby acknowledge that each of the Initial
Purchasers is acting solely as an initial purchaser in connection with the
purchase and sale of the Offered Securities. The Company and the Guarantors further
acknowledge that each of the Initial Purchasers is acting pursuant to a
contractual relationship created solely by this Agreement entered into on an
arm’s length basis, and in no event do the parties intend that any Initial
Purchaser act or be responsible as a fiduciary to the Company or any of the
Subsidiaries or their respective management, stockholders or creditors or any
other person in connection with any activity that any Initial Purchaser may
undertake or have undertaken in furtherance of the purchase and sale of the Offered
Securities, either before or after the date hereof.  Each of the Initial Purchasers hereby
expressly disclaims any fiduciary or similar obligations to the Company or any
of the Subsidiaries or their respective management, stockholders or creditors
or any other person, either in connection with the transactions contemplated by
this Agreement or any matters leading up to such transactions, and the Company and
the Guarantors hereby confirm their understanding and agreement to that effect.
The Company and the Guarantors and each of the Initial Purchasers agree that
they are each responsible for 

 28
 

 

making their own independent judgments with respect to
any such transactions and that any opinions or views expressed by any Initial
Purchaser to the Company or the Subsidiaries regarding such transactions,
including, but not limited to, any opinions or views with respect to the price
or market for the Offered Securities, do not constitute advice or
recommendations to the Company or the Subsidiaries. The Company and the
Guarantors hereby waive and release, to the fullest extent permitted by law,
any claims that either of the Company or any of the Guarantors may have against
any Initial Purchaser with respect to any breach or alleged breach of any
fiduciary or similar duty to the Company or the Subsidiaries in connection with
the transactions contemplated by this Agreement or any matters leading up to
such transactions.

14.          Miscellaneous.

(a)                                  Notices
given pursuant to any provision of this Agreement shall be addressed as
follows: (i) if to the Company, to: FiberTower Corporation, 185 Berry Street,
Suite 4800, San Francisco, CA 94107, Attention: Thomas A. Scott, with a copy
to: Andrews Kurth LLP, 600 Travis, Suite 4200, Houston, TX 77002, Attention: W.
Mark Young, Esq., and (ii) if to the Initial Purchasers, to: Jefferies &
Company, Inc., 520 Madison Avenue, New York, NY 10022, with a copy to: Paul,
Hastings, Janofsky & Walker LLP, 75 East 55th Street, New York, NY 10022-3205,
Attention: William F. Schwitter, Esq., (or in any case to such other address as
the person to be notified may have requested in writing).

(b)                                 This
Agreement has been and is made solely for the benefit of and shall be binding
upon the Company and the Guarantors, the Initial Purchasers and, to the extent
provided in Section 8 hereof, the controlling persons, officers, directors,
partners, employees, representatives and agents referred to in Section 8, and
their respective heirs, executors, administrators, successors and assigns, all
as and to the extent provided in this Agreement, and no other person shall
acquire or have any right under or by virtue of this Agreement. The term “successors
and assigns” shall not include a purchaser of any of the Securities from any Initial
Purchaser merely because of such purchase. 
Notwithstanding the foregoing, it is expressly understood and agreed
that each purchaser who purchases Securities from any Initial Purchaser is
intended to be a beneficiary of the covenants of the Company and the Guarantors
contained in the Registration Rights Agreement to the same extent as if the Securities
were sold and those covenants were made directly to such purchaser by the
Company and the Guarantors, and each such purchaser shall have the right to
take action against the Company and the Guarantors to enforce, and obtain
damages for any breach of, those covenants.

(c)                                  THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND
THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND TO BE PERFORMED WHOLLY THEREIN, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAW.

(d)                                 EACH
OF THE COMPANY AND EACH GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY (I) SUBMITS
TO THE NON-EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS SITTING IN
THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN ANY SUIT OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY;
AND (II) WAIVES (A) ITS RIGHT TO A TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF THE INITIAL PURCHASERS AND FOR ANY COUNTERCLAIM RELATED
TO ANY OF THE 

 29
 

 

FOREGOING AND (B) ANY OBLIGATION WHICH IT MAY HAVE OR
HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY
SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

(e)                                  This
Agreement may be signed in various counterparts, which together shall
constitute one and the same instrument.

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

(g)                                 If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

(h)                                 This
Agreement may be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may be given, provided that the same are
in writing and signed by all of the signatories hereto.

 

 30

Please confirm that the foregoing correctly sets forth
the agreement between the Company, the Guarantors and the Initial Purchasers.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FiberTower Corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Scott

  
	
   

  	
   

  	
  Name: Thomas Scott

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FiberTower Network Services Corp.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Scott

  
	
   

  	
   

  	
  Name: Thomas Scott

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FiberTower Solutions Corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Scott

  
	
   

  	
   

  	
  Name: Thomas Scott

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ART Licensing Corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Scott

  
	
   

  	
   

  	
  Name: Thomas Scott

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ART Leasing, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Scott

  
	
   

  	
   

  	
  Name: Thomas Scott

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Teligent Services Acquisition, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Scott

  
	
   

  	
   

  	
  Name: Thomas Scott

  
	
   

  	
   

  	
  Title:   Chief Financial Officer

  

 

 

Accepted and
Agreed to:

JEFFERIES & COMPANY, INC.

DEUTSCHE BANK
SECURITIES INC.

JEFFERIES &
COMPANY, INC.

	
  By:

  	
  /s/ Michael Henkin

  	
   

  
	
   

  	
  Name: Michael Henkin

  	
   

  
	
   

  	
  Title:   Managing Director

  	
   

  

 

Acting on behalf of
itself and as the Representative

of Deutsche Bank Securities Inc.

 

 

SCHEDULE
I

	
  PRICING SUPPLEMENT

  	
  CONFIDENTIAL

  

 

$350,000,000

FiberTower
Corporation

9.00%
Convertible Senior Secured Notes due 2012

This is the Pricing Supplement to the Preliminary Offering Memorandum
dated October 23, 2006 (the “Preliminary Offering Memorandum”) of FiberTower
Corporation (“FiberTower”), relating to the 9.00% Convertible Senior Secured
Notes due 2012 (the “notes”).

We are issuing this
Pricing Supplement to reflect the pricing terms for the notes.  The information in this Pricing Supplement
hereby amends, supplements, modifies and becomes part of, as of the date
hereof, the Preliminary Offering Memorandum and supersedes the information in
the Preliminary Offering Memorandum to the extent different from the information
in the Preliminary Offering Memorandum. 
Terms that are defined in the Preliminary Offering Memorandum and used
in this Pricing Supplement shall have the respective meanings given them in the
Preliminary Offering Memorandum.  You
should read this Pricing Supplement together with the Preliminary Offering
Memorandum before investing in the notes.

We have
not registered the notes, the guarantees or the common stock into which the
notes are convertible under the Securities Act of 1933, as amended (the “Securities
Act”), or under the securities laws of any other jurisdiction.  Unless they are registered, the securities
may be offered only in transactions exempt from or not subject to registration
under the Securities Act, or any other state securities laws.  Therefore, we are only offering these
securities to qualified institutional buyers as defined in Rule 144A under the
Securities Act and to persons outside the United States under Regulation S of
the Securities Act.

	
  Sole Book-Running Manager

  	
   

  	
   

  
	
  Jefferies & Company

  	
   

  	
  Deutsche Bank Securities

  

 

The date of this pricing supplement is
October 25, 2006

 

 

 

	
  Issuer

  	
   

  	
  FiberTower Corporation (“FiberTower” or the
  “Company”).

  
	
  Securities Offered

  	
   

  	
  Convertible Senior
  Secured Notes (the “Notes”).

  
	
  Distribution

  	
   

  	
  144A / Regulation S —
  with registration rights.

  
	
  Principal Amount

  	
   

  	
  $350 million (plus an
  additional $52.5 million principal amount is available for purchase by the
  initial purchasers).

  
	
  Gross Proceeds

  	
   

  	
  $350 million (plus an
  additional $52.5 million principal amount is available for purchase by the
  initial purchasers).

  
	
  Coupon

  	
   

  	
  9.00% payable
  semi-annually.

  
	
  Maturity Date

  	
   

  	
  November 15, 2012.

  
	
  Issue Price

  	
   

  	
  100%.

  
	
  Interest Payment Dates

  	
   

  	
  November 15 and May 15;
  beginning May 15, 2007.

  
	
  Interest

  	
   

  	
  Interest payable for
  the interest payment dates of May 15, 2007, November 15, 2007, May 15, 2008
  and November 15, 2008 is payable in cash. The Company may elect to pay
  interest in kind (PIK) for the interest payable on May 15, 2009, November 15,
  2009, May 15, 2010 and November 15, 2010, at a rate of 11.00% in lieu of cash
  interest payments. Interest is payable in cash thereafter.

  
	
  Escrowed Interest

  	
   

  	
  On the closing date,
  the Company will deposit funds in an escrow account. Funds in the escrow
  account (the amount of which will be determined prior to the closing date)
  together with the proceeds from the investment thereof, will be sufficient to
  make the first four interest payments on the Notes.

  
	
  Conversion Price /
  Premium

  	
   

  	
  15.0%, representing an
  initial conversion price of $8.29 per share.

  
	
  Redemption at Maturity

  	
   

  	
  Unless the Notes are
  previously redeemed or converted, the Company will redeem the Notes at
  125.411% of their principal amount on the maturity date, representing an
  annual internal rate of return of 12.00%, assuming that all interest payments
  are made in cash.

  
	
  Trade Date

  	
   

  	
  Thursday, October 26,
  2006.

  
	
  Settlement Date

  	
   

  	
  Thursday, November 9,
  2006 (T+10).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  QIB

  	
   

  	
  Reg S

  
	
  CUSIP Numbers

  	
   

  	
  31567R AA 8

  	
   

  	
  U31353 AA 0

  
	
  Conversion

  	
   

  	
  You may convert the
  Notes into shares of common stock at an initial conversion rate equal to
  120.627 shares of common stock per $1,000 principal amount of Notes
  (representing an initial conversion price of $8.29 per share) at any time
  after 90 days from the initial issue date of the Notes until the final
  maturity date. Upon conversion, the Company will deliver shares of common
  stock and cash in respect of any fractional shares.

  
	
  Conversion Prior to
  November 15, 2009

  	
   

  	
  If you convert your
  Notes prior to November 15, 2009, you will be entitled to receive a
  make-whole premium within 30 days of the conversion date. This amount will
  consist of the present value of all required interest payments on the Notes
  as if paid in cash from the date of such conversion through November 15, 2009
  (including accrued but unpaid interest), computed using a discount rate equal
  to the reinvestment yield determined on the date of conversion, provided that
  this make-whole premium will not exceed $130.277 per $1,000 principal amount
  of the Notes.

  
	
  Optional Redemption

  	
   

  	
  The Notes are not
  redeemable before November 15, 2010. If the Company’s common stock has traded
  at or above 150% of the then effective conversion price for 20 of any 30
  consecutive trading days and the daily trading volume for each such trading
  day, when multiplied by the closing sale price for such trading day, equals
  at least $8.0 million, the 

  

 

 

 

	
   

  	
   

  	
  Company may redeem any of the Notes, in whole or in
  part at any time on or after November 15, 2010. Upon any redemption, the
  Company will pay a redemption price equal to 100% of the aggregate accreted
  principal amount of the Notes, plus accrued and unpaid interest, and liquidated
  damages, if any, to the redemption date.

  

 

	
  Initial Purchasers

  	
   

  	
  Name

  	
   

  	
  Principal Amount

  of Notes:

  
	
   

  	
   

  	
  Jefferies & Company, Inc.

  	
   

  	
  $

  	
  210,000,000

  
	
   

  	
   

  	
  Deutsche Bank Securities

  	
   

  	
  140,000,000

  
	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  350,000,000

  

The “Description of the
Notes” section of the Preliminary Offering Memorandum is hereby supplemented,
amended and modified as follows:

1.               To add Wells Fargo Bank, National
Association, as the trustee.

2.               To reflect throughout that the over-allotment
option will be structured as an option to purchase additional notes, rather
than an over-allotment option.

3.               To reflect that the record date for the Notes
will be the November 1 and May 1 immediately preceding the interest payment
date.

4.               To delete and replace the second sentence of
the third paragraph under the heading “—Conversion of the Notes” on page 101
with:  “Delivery of the conversion shares
and cash in lieu of fractional shares, if any, will be deemed to satisfy our
obligation to pay the Aggregate Accreted Principal Amount of the Notes plus all
accrued and unpaid interest and Liquidated Damages, if any, on the Notes.”

5.               To reflect that the Company will not issue
more than an aggregate of 28,767,197 shares of its common stock upon
conversions of the Notes and in payment of make-whole premium obligations.

6.               To reflect that conversions of Notes on or
prior to November 15, 2010 in connection with a fundamental change related to
consolidations and mergers will entitle Holders of the Notes to a make-whole
premium in certain circumstances.

7.               To reflect that the return in the definition
of “Accretion Premium” under the heading “—Certain Definitions” on page 127
will be 12.00%.

8.               To
delete and replace the definition of “Aggregate Accreted Principal Amount”
under the heading “—Certain Definitions” beginning on page 128 with:  “Aggregate Accreted Principal Amount” means
an amount as calculated by the Company equal to 100% of the principal amount of
the Notes redeemed or repurchased or otherwise due plus the Accretion Premium
on the principal amount of such Notes. The applicable Aggregate Accreted
Principal Amount, as of any specified date (the “Specified Date”)  for each $1,000 principal amount of Notes if
the Specified Date is one of the following dates (each a “Semi-Annual Date”),
the amount set forth opposite such date below:

	
  Semi-Annual Date

  	
   

  	
  Aggregate

  Accreted

  Principal

  Amount($)

  	
   

  
	
  Original Issue
  Date

  	
   

  	
  1,000.00000

  	
   

  
	
  May 15, 2007

  	
   

  	
  1,015.56084

  	
   

  
	
  November 15,
  2007

  	
   

  	
  1,031.49449

  	
   

  
	
  May 15, 2008

  	
   

  	
  1,048.38415

  	
   

  
	
  November 15,
  2008

  	
   

  	
  1,066.28720

  	
   

  
	
  May 15, 2009

  	
   

  	
  1,085.26444

  	
   

  
	
  November 15,
  2009

  	
   

  	
  1,105.38030

  	
   

  
	
  May 15, 2010

  	
   

  	
  1,126.70312

  	
   

  
	
  November 15,
  2010

  	
   

  	
  1,149.30531

  	
   

  
	
  May 15, 2011

  	
   

  	
  1,173.26363

  	
   

  
	
  November 15,
  2011

  	
   

  	
  1,198.65944

  	
   

  
	
  May 15, 2012

  	
   

  	
  1,225.57901

  	
   

  
	
  November 15, 2012

  	
   

  	
  1,254.11375

  	
   

  

 

 

If the Specified Date occurs
between two Semi-Annual Dates the Aggregate Accreted Principal amount shall be,
the sum of (A) the Aggregate Accreted Principal Amount for the Semi-Annual Date
immediately preceding the Specified Date and (B) an amount equal to the product
of (a) the difference of (x) the Aggregate Accreted Principal Amount for the
immediately following Semi-Annual Date and (y) the Aggregate Accreted Principal
Amount for the immediately preceding Semi-Annual Date and (b) a fraction, the
numerator of which is the number of days elapsed from the immediately preceding
Semi-Annual Date to the Specified Date, calculated on a basis of a 360 day year
comprised of twelve 30 day months, and the denominator of which is 180 days,
except for the period from the Original Issue Date to the first Semi- Annual
Date immediately succeeding the Original Issue Date, which is 186 days.

9.               To revise the Uniform Commercial Code
Sections in the definition of “Excluded Assets” under the heading “—Certain
Definitions” beginning on page 135 to refer to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code and
to add leased real property to the definition of “Excluded Assets.”

10.         To add any
Notes and Guarantees issued upon the exercise by the initial purchasers of
their option to purchase additional Notes in this offering to the
definition of “Note Indebtedness” under the heading “—Certain Definitions” on
page 138.

11.         To reflect October 25, 2006 as the date of
the Offering Memorandum in the definition of “Permitted Business” under the heading
“—Certain Definitions” on page 139.

12.         To reflect in the definition of “Reinvestment
Yield” under the heading “—Certain Definitions” on page 142 that the
reinvestment yield will be calculated by reference to securities having a
maturity closest to November 15, 2009 (in the case of the make-whole premium
for conversions prior to November 15, 2009) and November 15, 2010 (in the case
of the make-whole premium for conversions upon a fundamental change relating to
consolidations and mergers).

The “Shares Eligible For Future Sale” section of the Preliminary
Offering Memorandum is hereby supplemented, amended and modified to delete and
replace the third paragraph under the heading “—Registration Rights Agreements”
on page 156 with “The above-referenced restricted shares within the meaning of
Rule 144 under the Securities Act were issued in prior private placement
transactions.  We entered into
registration rights agreements with the holders of those shares and have filed
a registration statement on Form S-3 with the SEC for the resale of those
shares.  The restricted shares are freely
tradeable under the registration statement on Form S-3.”

 

SCHEDULE
II

INITIAL
PURCHASERS

	
  Initial Purchasers

  	
   

  	
  Aggregate Principal

  Amount of Firm

  Securities to

  be Purchased

  	
   

  
	
  Jefferies &
  Company, Inc.

  	
   

  	
  $

  	
  210,000,000

  	
   

  
	
  Deutsche Bank Securities Inc.

  	
   

  	
  140,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  350,000,000

  	
   

  

 

 

SCHEDULE III

LIST
OF SUBSIDIARIES

FiberTower
Network Services Corp.

FiberTower
Solutions Corporation

ART
Licensing Corp.

ART
Leasing, Inc.

Teligent
Services Acquisition, Inc.

 

EXHIBIT
A

FORM OF OPINIONS OF
WILLKIE FARR & GALAGHER LLP

                  , 2006

Jefferies & Company,
Inc.

Deutsche Bank Securities Inc.,

As Initial Purchasers

c/o Jefferies & Company, Inc.

520 Madison Avenue,

12th Floor

New York, New York 10022

Re:          FiberTower Corporation—Offering of    % Convertible Senior Secured Notes      
due 2012

Ladies
and Gentlemen:

We have acted as special FCC counsel for
FiberTower Corporation, a Delaware corporation (“FiberTower” or the “Company”),
in connection with the Purchase Agreement, dated as of            , 2006 (the “Purchase Agreement”), among
FiberTower Corporation, a Delaware corporation (the “Issuer”), the guarantors
party thereto and Jefferies & Company, Inc. and Deutsche Bank Securities
Inc. (collectively, the “Initial Purchasers”).  
Reference is also made to the Preliminary Offering Memorandum of the
Issuer, dated October 23, 2006 (the “Preliminary Offering Memorandum”), the
Pricing Supplement to the Preliminary Offering Memorandum, dated October 25,
2006 (the “Pricing Supplement”), and the Offering Memorandum of the Issuer,
dated October 25, 2006 (the “Final Offering Memorandum”), each relating to the
issue and sale by the Issuer and the purchase by the Initial Purchasers of
$350,000,000 aggregate principal amount of the Issuer’s   % Convertible Senior Secured Notes due 2013
(the “Notes”).  All capitalized terms
used herein but not otherwise defined shall have the respective meanings
ascribed thereto in the Purchase Agreement.

This letter and the statements contained
herein are limited to our representation of the Company with respect to the
Communications Act of 1934, as amended, the rules and regulations of the
Federal Communications Commission (“FCC”), and written orders, policies, and
decisions of the FCC and the courts’ interpretation of them (herein defined
collectively as the “Communications Act”).  
This letter does not address any other laws, statutes, rules or
regulations, or facts that may be relevant with respect to any other laws,
statutes, rules or regulations.

In connection with the preparation of the
Preliminary Offering Memorandum, the Pricing Supplement and the Final Offering
Memorandum, we have participated in certain conversations with counsel for the
Initial Purchasers and with the officers, counsel, and other representatives of
the Issuer at which the contents of the Preliminary Offering Memorandum, the
Pricing Supplement and the Final Offering Memorandum and related matters were
discussed.  We also reviewed and relied
upon, without independent verification, certain corporate records and
documents, letters from counsel and accountants, and oral and written
statements of officers and other representatives of the Issuer and others as to
the existence and consequence of certain factual and other matters.  We have relied upon originals or copies
certified or otherwise identified to our satisfaction, of such 

 

instruments, documents, and records as we have
deemed relevant and necessary.  In
examining such instruments, documents, and records, we have assumed the
genuineness of all signatures on instruments, documents and records, the
authenticity of all instruments, documents and records submitted to us as
originals, and the conformity to authentic originals of all instruments,
documents and records submitted to us as copies.

As used herein, the term “knowledge”
shall mean the actual knowledge (that is, the conscious awareness of facts or
other information) of attorneys in our firm who have devoted substantive
attention to the matters addressed in this letter.  Such term does not include any knowledge of
other attorneys within our firm or any constructive or imputed notice of any
matters or items of information.   We
have not been asked to undertake nor have we undertaken any independent
investigation to determine the existence or absence of any fact, and no
inference as to our knowledge of the existence or absence of any fact should be
drawn from our representation of FiberTower, as described above, or from the
statements set forth herein.

Subject to the foregoing, we confirm to
you that, on the basis of the information we gained in the course of performing
the services referred to above, we have no knowledge of any fact that leads us
to believe that the “Risk Factors” and “Regulatory Environment” sections within
the Preliminary Offering Memorandum, taken together with the Pricing
Supplement, as of the time of execution of the Purchase Agreement by the
parties thereto, or the “Risk Factors” and “Regulatory Environment” sections
within the Final Offering Memorandum, at the date of such Final Offering
Memorandum or at the date hereof, contained or contains an untrue statement of
a material fact or omitted or omits to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided that we do
not assume any responsibility, explicitly or implicitly, for the accuracy,
completeness or fairness of the statements contained in the “Risk Factors” and “Regulatory
Environment” sections within Preliminary Offering Memorandum, the Pricing
Supplement or the Final Offering Memorandum and we express no view with respect
to any information of a financial or accounting nature included in, or omitted
from, the “Risk Factors” and “Regulatory Environment” sections within
Preliminary Offering Memorandum, the Pricing Supplement or the Final Offering
Memorandum.

This letter is rendered solely to you in
connection with the issuance and delivery of the Notes.  This letter may not be relied upon by you for
any other purpose or delivered to or relied upon by any other person without
our express prior written consent (including, without limitation, (a) any
person that acquires the Notes from the Initial Purchasers or (b) any purchaser
of the Notes procured by the Initial Purchasers); except that you may furnish a
copy of this letter for information (but not reliance) (i) to your independent
auditors and your attorneys, (ii) pursuant to order or legal process of any
court or governmental agency and (iii) in connection with any legal action to
which you are a party arising out of the issuance and delivery of the Notes.

 

This letter is rendered to you as of the
date hereof and is not to be deemed to have been reissued by any subsequent
delivery as permitted above, and we assume no obligation to advise you or any
other person hereafter with regard to any change after the date hereof in the
circumstances or the law that may bear on the matters set forth herein even
though the change may affect the legal analysis or a legal conclusion or other
matters in this letter.

Very truly yours,

Willkie Farr &
Gallagher LLP

 

EXHIBIT
B

FORM OF FCC OPINION OF
WILLKIE FARR & GALAGHER LLP

1.             Except as set forth in the
FiberTower Letter, the Company or a Subsidiary of the Company (each such
Subsidiary, a “Company Subsidiary”) holds the FCC Licenses identified as being
held by the Company or such Company Subsidiary in Exhibit 1 enclosed with the
FiberTower Letter (“Exhibit 1”).  The FCC
Licenses are in full force and effect.

2.             The execution and delivery by the
Company and each Company Subsidiary of the Transaction Documents to which it is
a party do not violate any of the terms or provisions of, or constitute a
default under, the Communications Act. 
No consent, approval, authorization, order, or waiver from, or filing
with, the FCC is required under the Communications Act for the execution and
delivery by the Company and each Company Subsidiary of each Transaction
Document to which it is a party, except that (i) the exercise of any rights or
remedies under the Transaction Documents which involve or result in a change of
control, assignment, or transfer of title, or disposition of FiberTower or its
affiliates or property may require additional prior notice to, consent of,
order of, or filing with the FCC; and (ii) any substantive amendment to the
Transaction Documents may require additional prior notice to, consent of, order
of, or filing with the FCC.

3.             To our knowledge, (i) there is no
outstanding decree, order, or other ruling that has been issued by the FCC
specifically directed against the Company, any Company Subsidiary, or the FCC
Licenses, and (ii) there is no complaint, notice of violation, notice of
apparent liability, or other administrative proceeding pending by or before, or
overtly threatened by, the FCC against the Company, any Company Subsidiary, or
the FCC Licenses that proposes the cancellation, termination, or revocation of
the FCC Licenses, in each case other than proceedings of general applicability
to the holders of FCC authorizations similar to the FCC Licenses.  To our knowledge, except as set forth in the
FiberTower Letter, there are no license renewal proceedings (other than
applications for renewal filed in the ordinary course) pending for the FCC
Licenses.

4.             To our knowledge, except as set
forth in the FiberTower Letter, there is no order, judgment, decree, notice of
apparent liability, order of forfeiture, investigation, complaint, or other
proceeding pending before the FCC against the FCC Licenses that would
reasonably be expected to result in the termination, revocation, suspension, or
denial of renewal of the FCC Licenses, except for rule making and other similar
proceedings generally applicable to holders of FCC authorizations similar to
the FCC Licenses.

5.             The statements in the Offering
Memorandum under the captions “Offering Memorandum Summary,” “Risk Factors,” “Business,”
and “Regulatory Environment,” insofar as they constitute summaries of the
Communications Laws, fairly summarize the matters therein described and are
accurate in all material respects.

6.             The Communications Act does not
prohibit the Company from making cash payments in respect of the Notes or, when
executed and delivered in accordance with the terms and conditions of the
Registration Rights Agreement and the Indenture, the Exchange Securities
(assuming due authentication and delivery of the Exchange Securities by the
Trustee in accordance with the Indenture), in accordance with their respective
terms.

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