Document:

Exhibit
10.1

 

REGISTRATION RIGHTS
AGREEMENT

Dated May 16, 2007

Among

QWEST CORPORATION,

as Issuer,

and

J.P.
Morgan Securities Inc.,

As Representative of the Initial Purchasers

 

REGISTRATION RIGHTS
AGREEMENT

This Registration Rights Agreement (this “Agreement”)
is dated as of May 16, 2007, among QWEST CORPORATION, a Colorado corporation
(the “Issuer” or the “Company”), on the one hand, and the several
Initial Purchasers named in Schedule A to the Purchase Agreement as
defined below (each, an “Initial Purchaser” and collectively, the “Initial
Purchasers”), on the other hand, who have each agreed to purchase,
severally and not jointly, pursuant to the Purchase Agreement (as defined below)
a specified amount of newly issued 6.5% Notes due 2017 (the “Securities”).

This Agreement is made pursuant to the Purchase
Agreement, dated as of May 2, 2007 (the “Purchase Agreement”), by and
among the Issuer and the Initial Purchasers (i) for the benefit of the Issuer
and the Initial Purchasers and (ii) for the benefit of the holders form time to
time of the Securities (including the Initial Purchasers). In order to induce
the Initial Purchasers to purchase the Securities, the Issuer has agreed to provide
the registration rights set forth in this Agreement. The execution and delivery
of this Agreement is a condition to the obligations of the Initial Purchasers
set forth in Section 5 of the Purchase Agreement. Capitalized terms used herein
and not otherwise defined shall have the meaning assigned to them in the
Purchase Agreement.

In consideration of the foregoing, the parties hereto
agree as follows for the benefit of each other and for the equal and ratable
benefit of the Holders of the Securities:

1.                                      Definitions.

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

“1933 Act” shall mean the Securities Act of
1933, as amended, or any successor federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect
from time to time.

“1934 Act” shall mean the Securities Exchange
Act of 1934, as amended, or any successor federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect
from time to time.

“Additional Interest” shall have the meaning
set forth in Section 2(d) hereof.

“Affiliate” shall mean with respect to any
Person, any other Person directly or indirectly controlling, controlled by, or
under common control with, such Person; for purposes of this definition,
“control” shall mean the possession, directly or indirectly, of the power to

direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities or
otherwise.

“Broker-Dealer Representative” means J.P. Morgan
Securities Inc.

“Closing Date” shall have the meaning set forth
in the Purchase Agreement.

“Company” shall have the meaning set forth in
the preamble and shall also include the Company’s successors and assigns.

“Effectiveness Target Date” shall have the
meaning set forth in Section 2(a) hereof.

“Exchange Date” shall have the meaning set
forth in Section 2(a)(ii) hereof.

“Exchange Offer” shall mean the exchange offer
by the Issuer of Exchange Securities for Registrable Securities pursuant to Section
2(a) hereof.

“Exchange Offer Registration” shall mean a
registration under the 1933 Act effected pursuant to Section 2(a)
hereof.

“Exchange Offer Registration Statement” shall
mean an exchange offer registration statement on Form S-4 (or, if applicable,
on another appropriate form) and all amendments and supplements to such
registration statement, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

“Exchange Period” shall have the meaning set
forth in Section 2(a) hereof.

“Exchange Securities” shall mean securities,
issued by the Issuer under the Indenture containing terms identical to the
Securities (except that the Exchange Securities will not contain restrictions
on transfer and provisions relating to Additional Interest) and to be offered
to Holders of Securities in exchange for Securities pursuant to the Exchange
Offer.

 “Holder”
shall mean a holder of Registrable Securities, for so long as such holder owns
any Registrable Securities, and each of such holder’s successors, assigns and direct
and indirect transferees who become registered owners of Registrable Securities
under the Indenture or who become beneficial owners of Registrable Securities,
so long as in the case of beneficial owners, such owners have so notified the
Issuer in writing; provided that for purposes of Sections 4
and 5 of this Agreement, the term “Holder” shall include Participating
Broker-Dealers.

“Indenture” shall mean the Indenture relating
to the Securities dated as of October 15, 1999 between the Company
(formerly known as U S WEST Communications, Inc.), as issuer, and The Bank
of New York Trust Company, N.A. (as successor in interest to Bank

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One Trust Company, N.A.), as supplemented by a first
supplemental indenture, dated as of August 19, 2004, between QC and U.S. Bank
National Association, as Trustee, a second supplemental indenture, dated as of
November 23, 2004 between QC and the Trustee, a third supplemental indenture,
dated as of June 17, 2005, between QC and the Trustee, a fourth supplemental
indenture dated as of August 8, 2006, between QC and the Trustee, and a fifth
supplemental indenture to be entered into by and between QC and the Trustee on the
Closing Date.

“Majority Holders” shall mean the Holders of a
majority of the aggregate principal amount of outstanding Registrable
Securities; provided that whenever the consent or approval of Holders of
a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Issuer or any of its Affiliates shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage or amount.

“Participant” shall have the meaning set forth
in Section 5(a) hereof.

“Participating Broker-Dealer” shall have the
meaning set forth in Section 4(a) hereof.

“Person” shall be construed broadly and shall
include, without limitation, an individual, a partnership, a corporation, an
association, a joint stock company, a limited liability company, a trust, a
joint venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

“Prospectus” shall mean the prospectus included
in a Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by any prospectus supplement, including a
prospectus supplement with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Shelf Registration Statement, and by
all other amendments and supplements to such prospectus, and in each case
including all material incorporated by reference therein.

“Registrable Securities” shall mean the
Securities; provided, however, that the Securities shall cease to
be Registrable Securities (i) when, in the case of a Holder of such Securities
who was entitled to participate in the Exchange Offer, an Exchange Offer
Registration Statement with respect to such Securities shall have been declared
effective under the 1933 Act and either (a) such Securities shall have been
exchanged pursuant to the Exchange Offer for Exchange Securities or (b) such
Securities were not tendered by the Holder thereof in the Exchange Offer, (ii)
when a Shelf Registration Statement with respect to such Securities shall have
been declared effective under the 1933 Act and such Securities shall have been
disposed of pursuant to such Shelf Registration Statement, (iii) when such
Securities have been sold to the public pursuant to Rule 144(k) (or any similar
provision then in force, but not Rule 144A)

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under the 1933 Act or are eligible to be sold without
restriction thereunder or (iv) when such Securities shall have ceased to be
outstanding.

“Registration Default” shall have the meaning
set forth in Section 2(d) hereof.

“Registration Expenses” shall mean any and all
expenses incident to performance of or compliance by the Issuer with this
Agreement, including, without limitation: (i) all SEC, New York Stock Exchange
or National Association of Securities Dealers, Inc. registration and filing
fees, (ii) all fees and expenses incurred in connection with compliance with
state securities or blue sky laws (including reasonable fees and disbursements
of one counsel for all underwriters or Holders as a group in connection with
blue sky qualification of any of the Exchange Securities or Registrable
Securities) within the United States (x) where the Holders are located, in
the case of the Exchange Securities, or (y) as provided in Section 3(d)
hereof, in the case of Registrable Securities to be sold by a Holder pursuant
to a Shelf Registration Statement, (iii) all expenses of any Persons in
preparing or assisting in preparing, word processing, printing and distributing
any Registration Statement, any Prospectus, any amendments or supplements
thereto and other documents relating to the performance of and compliance with
this Agreement, (iv) all rating agency fees, (v) all fees and disbursements
relating to the qualification of the Indenture under applicable securities
laws, (vi) the fees and disbursements of the Trustee and its counsel,
(vii) the fees and disbursements of counsel for the Issuer and, in the
case of a Shelf Registration Statement, the fees and disbursements of one counsel
for the Holders (which counsel shall be selected by the Majority Holders) and
(viii) the fees and disbursements of the independent public accountants of the
Issuer, including the expenses of any special audits, agreed-upon procedures or
“cold comfort” letters required by or incident to such performance and
compliance, but excluding fees and expenses of counsel to the underwriters
(other than fees and expenses set forth in clause (ii) above) or the Holders
and underwriting discounts and commissions and out-of-pocket expenses incurred
by the Holders and transfer taxes, if any, relating to the sale or disposition
of Registrable Securities by a Holder.

“Registration Statement” shall mean any
registration statement of any Issuer that covers any of the Exchange Securities
or Registrable Securities pursuant to the provisions of this Agreement and all
amendments and supplements to any such Registration Statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

“SEC” shall mean the Securities and Exchange
Commission.

“Securities” shall have the meaning set forth
in the preamble.

“Shelf Registration” shall mean a registration
effected pursuant to Section 2(b) hereof.

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“Shelf Registration Statement” shall mean a
“shelf” registration statement of the Issuer pursuant to the provisions of Section
2(b) of this Agreement which covers at effectiveness all of the Registrable
Securities (other than Registrable Securities the Holders of which have not
complied with their obligations under Section 2(f) of this
Agreement or have elected not to have their Registrable Securities included in
the Shelf Registration Statement) on an appropriate form under Rule 415 under
the 1933 Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

“TIA” shall have the meaning set forth in Section
3(l) hereof.

“Trustee” shall mean the trustee with respect
to the Securities under the Indenture.

“Underwriters” shall have the meaning set forth
in Section 3 hereof.

“Underwritten Offering” shall mean a
registration in which Registrable Securities are sold to an Underwriter for reoffering
to the public.

2.                                      Registration
Under the 1933 Act.

(a)                                  To
the extent not prohibited by any applicable law or applicable interpretation of
the Staff of the SEC, the Issuer shall file an Exchange Offer Registration Statement
covering the offer by the Issuer to the Holders to exchange all of the
Registrable Securities for Exchange Securities in a like aggregate principal
amount and to use its commercially reasonable efforts to cause the Exchange
Offer Registration Statement to be declared effective by 315 days after the
date of this Agreement (the “Effectiveness Target Date”) and to have
such Registration Statement remain effective until the closing of the Exchange
Offer. The Issuer shall commence the Exchange Offer as promptly as practicable
after the Exchange Offer Registration Statement has been declared effective by
the SEC and use its commercially reasonable efforts to have the Exchange Offer
consummated not later than 45 days after the earlier of the date on which the
Exchange Offer Registration Statement is declared effective and the
Effectiveness Target Date (such 45-day period being the “Exchange Period”).

The Issuer shall commence the Exchange Offer by
mailing the related exchange offer Prospectus and accompanying documents to
each Holder stating, in addition to such other disclosures as are required by
applicable law:

(i)                                     that
the Exchange Offer is being made pursuant to this Registration Rights Agreement
and that all Registrable Securities validly tendered will be accepted for exchange;

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(ii)                                  the
date of acceptance for exchange (which shall be a period of at least 20
business days (or longer if required by applicable law) from the date such
notice is mailed (the “Exchange Date”);

(iii)                               that
any Registrable Security not tendered by a Holder who was eligible to
participate in the Exchange Offer will remain outstanding and continue to
accrue interest, but will not retain any rights under this Registration Rights
Agreement;

(iv)                              that
Holders electing to have a Registrable Security exchanged pursuant to the
Exchange Offer will be required to surrender such Registrable Security, together
with the enclosed letters of transmittal, to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the
notice prior to the close of business on the Exchange Date; and

(v)                                 that
Holders will be entitled to withdraw their election, not later than the close
of business, New York City time, on the Exchange Date, by sending to the
institution and at the address (located in the Borough of Manhattan, The City
of New York) specified in the notice, a facsimile transmission or letter
setting forth the name of such Holder, the principal amount of Registrable
Securities delivered for exchange and a statement that such Holder is
withdrawing his election to have such Securities exchanged.

As soon as practicable after the Exchange Date, the
Issuer shall:

(vi)                              accept
for exchange Registrable Securities or portions thereof validly tendered and
not properly withdrawn pursuant to the Exchange Offer; and

(vii)                           deliver,
or cause to be delivered, to the Trustee for cancellation all Registrable
Securities or portions thereof so accepted for exchange by the Issuer and
issue, and cause the Trustee to promptly authenticate and mail to each Holder,
an Exchange Security equal in principal amount to the principal amount of the
Registrable Securities surrendered by such Holder; provided that, in the
case of any Registrable Securities held in global form by a depositary,
authentication and delivery to such depositary of one or more Exchange
Securities in global form in an equivalent principal amount thereto for the
account of such Holders in accordance with the Indenture shall satisfy such
authentication and delivery requirement.

Each Holder (including, without limitation, each
Participating Broker-Dealer (as defined)) who participates in the Exchange
Offer will be required to represent to the Issuer, in writing (which may be
contained in the applicable letter of transmittal) that: (1) any Exchange
Securities acquired in exchange for Registrable Securities tendered are being acquired
in the ordinary course of business of the Person receiving such Exchange Securities,
whether or not such recipient is a Holder of Registrable Securities, (2)
neither such Holder

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nor, to the actual knowledge of such Holder, any other
Person receiving Exchange Securities from such Holder has an arrangement or
understanding with any Person to participate in the distribution of the
Exchange Securities in violation of the provisions of the 1933 Act, (3) the
Holder is not an Affiliate of any Issuer or, if it is an Affiliate, it will
comply with the registration and prospectus delivery requirements of the 1933
Act to the extent applicable, (4) if such Holder is not a Participating
Broker-Dealer, it has not engaged in, and does not intend to engage in, the
distribution of Exchange Securities, (5) if such Holder is a Participating
Broker-Dealer, such Holder acquired the Registrable Securities as a result of
market-making activities or other trading activities, it will deliver a
prospectus in connection with any resale of the Exchange Securities and it will
comply with the applicable provisions of the 1933 Act with respect to resale of
any Exchange Securities and (6) such Holder has full power and authority to
transfer the Registrable Securities in exchange for the Exchange Securities.

The Issuer shall comply with the applicable requirements
of the 1933 Act, the 1934 Act and other applicable laws and regulations in
connection with the Exchange Offer. The Exchange Offer shall not be subject to
any conditions, other than (1) that the Exchange Offer does not violate applicable
law or any applicable interpretation of the Staff of the SEC, (2) that no action
or proceeding shall have been instituted or threatened in any court or by any
governmental agency with respect to the Exchange Offer and no material adverse
development shall have occurred with respect to any Issuer, (3) that all
governmental approvals shall have been obtained that the Issuer deems necessary
for the consummation of the Exchange Offer, (4) that the conditions precedent
to the Issuer’s obligations under this Agreement shall have been fulfilled and
(5) such other conditions as shall be deemed necessary or appropriate by the
Issuer in its reasonable judgment.

(b)                                 In
the event that (i) the Issuer determines that the Exchange Offer Registration
provided for in Section 2(a) above is not available or may not be
consummated as soon as practicable after the Exchange Date because it would
violate applicable law or the applicable interpretations of the Staff of the
SEC, (ii) the Exchange Offer Registration Statement is not declared effective
by the Effectiveness Target Date, (iii) any Holder of Securities notifies
the Issuer after the commencement of the Exchange Offer that due to a change in
applicable law or SEC policy it is not entitled to participate in the Exchange
Offer, or (iv) if any Holder that participates in the Exchange Offer (and
tenders its Registrable Securities prior to the expiration thereof), does not
receive Exchange Securities on the date of the exchange that may be sold
without restriction under state and federal securities laws (other than due
solely to the status of such Holder as an Affiliate of the Issuer or as a
Participating Broker-Dealer), the Issuer shall cause to be filed as soon as
practicable a Shelf Registration Statement providing for the sale by the
Holders of all of the Registrable Securities and shall use its commercially
reasonable efforts to have such Shelf Registration Statement declared effective
by the SEC. In the event the Issuer is required to file a Shelf Registration
Statement solely as a result of the matters referred to in clause (iii) of the
preceding sentence, the Issuer shall file and use its commercially reasonable
efforts to have declared effective by the SEC both an

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Exchange Offer Registration Statement pursuant to Section
2(a) with respect to all Registrable Securities and a Shelf Registration
Statement (which may be a combined Registration Statement with the Exchange
Offer Registration Statement) with respect to offers and sales of Registrable
Securities held by such other Holders after completion of the Exchange Offer.
The Issuer agrees, except as set forth herein, to use its commercially
reasonable efforts to keep the Shelf Registration Statement continuously
effective until the date that is two years after the Closing Date (or such
shorter periods as may hereafter be referred to in Rule 144(k) under the
Securities Act (or similar successor rule)) with respect to the Registrable
Securities or such shorter period that will terminate when all of the
Registrable Securities covered by the Shelf Registration Statement have been
sold pursuant to the Shelf Registration Statement. The Issuer further agrees to
supplement or amend the Shelf Registration Statement if required by the rules,
regulations or instructions applicable to the registration form used by the
Issuer for such Shelf Registration Statement or by the 1933 Act or by any other
rules and regulations thereunder for shelf registration or if reasonably
requested by a Holder with respect to information relating to such Holder, and
to use its commercially reasonable efforts to cause any such amendment to
become effective and such Shelf Registration Statement to become usable as soon
as thereafter practicable. The Issuer agrees to furnish to the Holders of
Registrable Securities, upon request, copies of any such supplement or
amendment promptly after its being used or filed with the SEC. Notwithstanding
the foregoing, the Issuer shall not be required to file more than one
post-effective amendment to the Shelf Registration Statement in any fiscal
quarter, such timing to be determined in the reasonable discretion of the
Issuer, to add one or more Holders to the “Selling Securityholders” table of
the Shelf Registration Statement or to update any information in such table. Notwithstanding
anything to the contrary contained herein, if any exchange offer is
consummated after the Exchange Date, any obligations of the Issuer arising as a result
of clauses (ii) and (iii) above shall terminate and such exchange offer shall
be deemed an Exchange Offer pursuant to Section 2(a).

(c)                                  The
Issuer shall pay all Registration Expenses in connection with the registration
pursuant to Section 2(a) or Section 2(b). Each Holder shall pay
all underwriting discounts and commissions and transfer taxes, if any, relating
to the registration of such Holder’s Registrable Securities pursuant to the Exchange
Offer Registration Statement or the Shelf Registration Statement.

(d)                                 An
Exchange Offer Registration Statement pursuant to Section 2(a) hereof or
a Shelf Registration Statement pursuant to Section 2(b) hereof will not
be deemed to have become effective unless it has been declared effective by the
SEC; provided, however, that, if, after it has been declared
effective, the offering of Registrable Securities pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or
other order or requirement of the SEC or any other governmental agency or
court, such Registration Statement will be deemed not to be effective during
the period of such interference until the offering of Registrable Securities
pursuant to such Registration Statement may legally resume. As

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provided for in the Indenture, the annual interest
rate on the Securities will be increased (the “Additional Interest”)
under the following condition:

subject to Sections
2(f) and 2(g) if (A) the Issuer has not exchanged Exchange
Securities for all Securities validly tendered in accordance with the terms of
the Exchange Offer on or prior to the end of the Exchange Period (and the Shelf
Registration Statement has not been declared effective), (B) the Exchange Offer
Registration Statement or, if applicable, the Shelf Registration Statement has
not been declared effective by the SEC on or prior to the Effectiveness Target
Date or (C) if applicable, the Shelf Registration Statement is filed and
declared effective but shall thereafter cease to be effective or usable
(1) as a result of an order suspending the effectiveness of the Shelf
Registration Statement or otherwise, or (2) if related to the events or
circumstances set forth in Section 2(g) below, for more than 60
days (whether or not consecutive) in any twelve month period (each such event
referred to in clauses (A) through (C), a “Registration Default”), then
Additional Interest shall accrue on the principal amount of the Registrable
Securities at a rate of 0.25% per annum commencing (x) at the end of the
Exchange Period, in the case of (A) above, (y) on the Effectiveness Target Date
in the case of (B) above, or (z) on the day such Shelf Registration Statement
ceases to be effective in the case of (C)(1) above or the 61st day the
Prospectus ceases to be usable for resales in the case of (C)(2) above, and
such Additional Interest rate shall continue to, but excluding, the earlier of
(1) the date on which all Registration Defaults have been cured or (2) the date
that is two years after the Closing Date (or such shorter period as may
hereafter be referenced to in Rule 144(k) under the Securities Act (or
similar successor rule)) (it being understood and agreed that, notwithstanding
any provision to the contrary, so long as any Securities not registered under
an Exchange Offer Registration Statement by the Effectiveness Target Date or
validly tendered on or prior to the end of the Exchange Period, (y) have
been provided the opportunity to be tendered in an Exchange Offer that closes
after the Exchange Period or (z) are then covered by an effective Shelf
Registration Statement, no Additional Interest shall accrue on such Securities);

provided,
however, that upon the exchange of Exchange Securities for all
Securities tendered (in the case of clause (A) above), upon the earlier of (1)
effectiveness of the Shelf Registration Statement (in the case of
clause (B) above) and (2) the exchange of Exchange Securities for all
securities tendered in an Exchange Offer (in the case of clause (B) above) or
upon the effectiveness of the Shelf Registration Statement which had ceased to
remain effective (in the case of clause (C) above), Additional Interest on the
Securities as a result of such clause (or the relevant subclause thereof), as
the case may be, shall cease to accrue; provided, further, however,
that in the case of clauses (B) and (C) above, it is expressly understood that

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Additional Interest should be payable only with
respect to the Registrable Securities so requested to be registered pursuant to
Section 2(b)(iii) hereof; and provided, further, however,
that if a Registration Default under clause (C) above occurs because of
the filing of a post-effective amendment to such Registration Statement to
incorporate annual audited financial information with respect to the Issuer or
to add Holders to the “Selling Securityholders” table (or to update any
information in such table) where such post-effective amendment is not yet effective
and needs to be declared effective to permit Holders to use the related
Prospectus, it is expressly understood that Additional Interest shall be payable
only from and after the date such Registration Default continues for at least
30 days.

Notwithstanding the foregoing, (1) the amount of
Additional Interest payable shall not increase because more than one Registration
Default has occurred and is pending and (2) a Holder of Registrable Securities
or Exchange Securities who is not entitled to the benefits of the Shelf
Registration Statement (i.e., such Holder has not elected to include
information) shall not be entitled to Additional Interest with respect to a
Registration Default that pertains to the Shelf Registration Statement.

(e)                                  Without
limiting the remedies available to the Holders, the Issuer acknowledges that
any failure by the Issuer to comply with its obligations under Section 2(a)
and Section 2(b) hereof may result in material irreparable injury
to the Holders for which there is no adequate remedy at law, that it will not
be possible to measure damages for such injuries precisely and that, in the
event of any such failure, any Holder may obtain such relief as may be required
to specifically enforce the Issuer’s obligations under Section 2(a)
and Section 2(b) hereof.

(f)                                    No
Holder of Registrable Securities may include any of its Registrable Securities
in any Shelf Registration unless and until such Holder furnishes to the Issuer,
in writing within 15 days after receipt of a request therefor, the information
with respect to such Holder specified in Regulation S-K under the 1933 Act and
any other applicable rules, regulations or policies of the SEC for use in
connection with any Shelf Registration or Prospectus included therein, on a
form to be provided by the Issuer. Each selling Holder agrees to furnish
promptly to the Issuer additional information to be disclosed so that the
information previously furnished to the Issuer by such Holder does not contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading. No Holder of Registrable Securities shall be entitled to Additional
Interest pursuant to Section 2(d) hereof unless and until such
Holder shall have provided all such information.

(g)                                 The
Issuer may delay the filing or the effectiveness of an Exchange Offer
Registration Statement or a Shelf Registration Statement (including any
post-effective amendment thereto) for a period of up to 30 days during any 90
day period if (i) there occur material events or developments with respect to
the Issuer that would need to be described in

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such Registration Statement or the related Prospectus,
and the effectiveness of such Registration Statement is reasonably required to
be suspended while such Registration Statement and related Prospectus are
amended or supplemented to reflect such events or developments, (ii) there
occur material events or developments with respect to the Issuer or any of its
Affiliates, the disclosure of which the Issuer determines in good faith would
have a material adverse effect on the business, operations or prospects of the
Issuer, or (iii) the Issuer does not wish to disclose publicly a pending
material business transaction that has not yet been publicly disclosed; provided,
however, that any delay period with respect to Registration Defaults
arising under this Section 2(g) will not alter the obligations of the
Issuer to pay Additional Interest with respect to a Registration Default
subject to the limitations and exceptions set forth in Section 2(d) above.

(h)                                 Additional
Interest due on the Securities pursuant to Section 2(d) hereof will be
payable in cash semiannually in arrears on the same interest payment dates as
the Securities, commencing with the first interest payment date occurring after
any such Additional Interest commences to accrue.

3.                                      Registration
Procedures.

In connection with the obligations of the Issuer with
respect to the Registration Statements pursuant to Section 2(a) and
Section 2(b) hereof, the Issuer shall:

(a)                                  prepare and file with
the SEC a Registration Statement on the appropriate form under the 1933 Act,
which form (x) shall be selected by the Issuer and (y) shall, in the case
of a Shelf Registration, be available for the sale of the Registrable
Securities by the selling Holders thereof and (z) shall comply as to form in
all material respects with the requirements of the applicable form and include
all financial statements required by the SEC to be filed therewith, and use its
commercially reasonable efforts to cause such Registration Statement to become
effective and remain effective in accordance with Section 2 hereof;

(b)                                 prepare
and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period and, except for such periods as to which
such action is not required pursuant to Section 2(g) hereof, cause each
Prospectus to be supplemented by any prospectus supplement required by
applicable law and, as so supplemented, to be filed pursuant to Rule 424
under the 1933 Act; to keep each Prospectus current during the period described
under Section 4(3) and Rule 174 under the 1933 Act that is applicable to
transactions by brokers or dealers with respect to the Registrable Securities
or Exchange Securities;

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(c)                                  in the case of a
Shelf Registration, furnish to each Holder of Registrable Securities, to
counsel for the Holders and to each Underwriter of an Underwritten Offering of
Registrable Securities, if any, without charge, as many copies of each Prospectus,
including each preliminary Prospectus, and any amendment or supplement thereto
and such other documents as such Holder or Underwriter may reasonably request,
in order to facilitate the public sale or other disposition of the Registrable
Securities; and, except for the periods set forth in Section 2(g) herein, the
Issuer consents to the use of such Prospectus and any amendment or supplement
thereto in accordance with applicable law by each of the selling Holders of
Registrable Securities and any such Underwriters in connection with the
offering and sale of the Registrable Securities covered by and in the manner
described in such Prospectus or any amendment or supplement thereto in accordance
with applicable law;

(d)                                 use
its commercially reasonable efforts to register or qualify the Registrable
Securities under all applicable state securities or “blue sky” laws of such
jurisdictions as any Holder of Registrable Securities covered by a Registration
Statement shall reasonably request in writing by the time the applicable
Registration Statement is declared effective by the SEC, to cooperate with such
Holders in connection with any filings required to be made with the New York
Stock Exchange and the National Association of Securities Dealers, Inc. and do
any and all other acts and things which may be reasonably necessary or
advisable to enable such Holder to consummate the disposition in each such
jurisdiction of such Registrable Securities owned by such Holder; provided,
however, that the Issuer shall not be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(d),
(ii) file any general consent to service of process or (iii) subject
itself to taxation in any such jurisdiction if it is not so subject;

(e)                                  in the case of a
Shelf Registration, notify each Holder of Registrable Securities and counsel
for the Holders promptly and, if requested by any such Holder or counsel,
confirm such advice in writing (i) when a Registration Statement has become
effective and when any post-effective amendment thereto has been filed and becomes
effective, (ii) of any request by the SEC or any state securities authority for
amendments and supplements to a Registration Statement and Prospectus or for
additional information after the Registration Statement has become effective,
(iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose, (iv) if, between the effective
date of a Registration Statement and the closing of any sale of Registrable
Securities covered thereby, the representations and warranties of the Issuer
contained in any underwriting agreement, securities sales agreement or other
similar agreement, if any, relating to the offering cease to be true and
correct

 12
 

in all material respects or if the Issuer
receives any notification with respect to the suspension of the qualification
of the Registrable Securities for sale in any jurisdiction or the initiation of
any proceeding for such purpose, (v) of the happening of any event during
the period a Shelf Registration Statement is effective which makes any statement
made in such Registration Statement or the related Prospectus untrue in any material
respect or which requires the making of any changes in such Registration Statement
or Prospectus in order to make the statements therein not misleading and (vi)
of any determination by the Issuer that a post-effective amendment to a
Registration Statement (other than an amendment that does nothing more substantive
than add one or more Holders to the “Selling Securityholders” table of such
Registration Statement or to update any information set forth in such table)
would be appropriate except, in the case of clauses (iv), (v) and (vi), with
respect to any event, development or transaction permitted to be kept confidential
under Section 2(g) hereof, the Issuer shall not be required to
describe such event, development or transaction in the written notice provided;

(f)                                    make commercially
reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement as promptly as practicable and
provide reasonably prompt notice to each Holder of the withdrawal of any such order;

(g)                                 in the case of a Shelf
Registration, furnish to each Holder of Registrable Securities, without charge,
at least one conformed copy of each Registration Statement and any
post-effective amendment thereto (without documents incorporated therein by
reference or exhibits thereto, unless requested);

(h)                                 in the case of a Shelf
Registration, cooperate with the selling Holders of Registrable Securities to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and
enable such Registrable Securities to be in such denominations (consistent with
the provisions of the Indenture) and registered in such names as the selling
Holders may reasonably request at least one business day prior to the closing
of any sale of Registrable Securities;

(i)                                     in
the case of a Shelf Registration, upon the occurrence of any event contemplated
by Section 3(e)(v) hereof, as promptly as practicable prepare and
file with the SEC a supplement or post-effective amendment to a Registration
Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of the Registrable Securities, such Prospectus will not
contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of

 13

the circumstances under which they were made,
not misleading; the Issuer agrees to notify the Holders to suspend use of the
Prospectus as promptly as practicable after the occurrence of such an event,
and the Holders hereby agree to suspend use of the Prospectus until the Issuer
has amended or supplemented the Prospectus to correct such misstatement or
omission and expressly agree to maintain the information contained in such
notice confidential (except that such information may be disclosed to its
counsel) until it has been publicly disclosed by the Issuer; notwithstanding
the foregoing, the Issuer shall not be required to amend or supplement a
Registration Statement, any related Prospectus or any document incorporated or
deemed to be incorporated therein by reference if (i) an event occurs and is
continuing as a result of which the Shelf Registration, any related Prospectus
or any document incorporated or deemed to be incorporated therein by reference,
would, in the Issuer’s good faith judgment, contain an untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein not misleading (with respect to such a Prospectus only, in
the light of the circumstances under which they were made), and (ii) (a) the Issuer
determines in its good faith judgment that the disclosure of such event at such
time would have a material adverse effect on the business, operations or
prospects of the Issuer, or (b) the disclosure otherwise relates to a pending
material business transaction that has not yet been publicly disclosed;

(j)                                     in
the case of a Shelf Registration Statement, a reasonable time prior to the
filing of any Registration Statement, any Prospectus, any amendment to a Registration
Statement or amendment or supplement to a Prospectus, provide copies of such
document to, the Holders and their counsel and make such of the representatives
of the Issuer as shall be reasonably requested by the Holders or their counsel
available for discussion of such document, and shall not at any time file or
make any amendment to the Registration Statement, any Prospectus or any
amendment of or supplement to a Registration Statement or a Prospectus, of
which the Holders and their counsel shall not have previously been advised and
furnished a copy or to which the Holders or their counsel shall reasonably
object on a timely basis, except for any Registration Statement or amendment
thereto or related Prospectus or supplement thereto (a copy of which has been
previously furnished as provided in the preceding sentence) which counsel to
the Issuer has advised the Issuer in writing is required to be filed in order
to comply with applicable law; provided, however, that the foregoing
procedures shall be coordinated on behalf of the Holders by a representative
designated by the majority in aggregate principal amount of the Holders selling
Registrable Securities;

(k)                                  obtain
a CUSIP number for all Exchange Securities or Registrable Securities, as the
case may be, not later than the effective date of a Registration Statement;

 14
 

(l)                                     cause
the Indenture to be qualified under the Trust Indenture Act of 1939, as amended
(the “TIA”), in connection with the registration of the Exchange Securities
or Registrable Securities, as the case may be, cooperate with the Trustee and
the Holders to effect such changes to the Indenture as may be required for the
Indenture to be so qualified in accordance with the terms of the TIA and
execute, and use its commercially reasonable efforts to cause the Trustee to
execute, all documents as may be required to effect such changes and all other
forms and documents required to be filed with the SEC to enable the Indenture
to be so qualified in a timely manner;

(m)                               in
the case of an Underwritten Offering pursuant to a Shelf Registration, make
available for inspection upon written request by a representative of the
Holders of the Registrable Securities, any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, and attorneys and
accountants designated by the Holders, at reasonable times and in a reasonable
manner, all pertinent financial and other records, pertinent documents and
properties of the Issuer as shall be reasonably necessary to enable them to
exercise any applicable due diligence responsibilities, and cause the
respective officers, directors and employees of the Issuer to supply all
information reasonably requested by any such representative, Underwriter,
attorney or accountant in connection with their due diligence responsibilities
under a Shelf Registration Statement; provided that records and
information that the Issuer determines in good faith to be confidential and so
notifies such representative, Underwriter, attorney or accountant are
confidential shall not be disclosed to any such representative, Underwriter,
attorney or accountant unless (i) the disclosure of such information is
necessary to avoid or correct a material misstatement or material omission in
an effective Registration Statement or Prospectus, (ii) the release of
such information is ordered pursuant to a subpoena or other order from a court
of competent jurisdiction or (iii) the information has been made generally
available to the public other than by any of such persons or an Affiliate of
any such persons, provided that if any such information has been
disclosed to any such representative, Underwriter, attorney or accountant,
prior notice shall be provided as soon as practicable to the Issuer of the potential
disclosure of any information by such person under the circumstances described
in clause (i) or (ii) of this sentence in order to permit the Issuer to obtain
a protective order; provided  further, that if such records and
information are determined to be confidential, the Issuer shall
(a) provide summaries of such information to counsel for such Underwriter
or (b) provide other means as reasonably requested by the Underwriter to
enable such Underwriter to satisfy its due diligence requirements without
compromising the confidentiality of such information;

(n)                                 if
reasonably requested by any Holder of Registrable Securities covered by a
Registration Statement, (i) subject to Section 2(b) of this
Agreement, promptly incorporate in a Prospectus supplement or post-effective
amendment such information

 15
 

with respect to such Holder as such Holder
reasonably requests to be included therein and (ii) subject to Section 2(b)
of this Agreement, make all required filings of such Prospectus supplement or
such post-effective amendment as soon as the Issuer has received notification
of the matters to be incorporated in such filing; and

(o)                                 in
the case of an Underwritten Offering pursuant to a Shelf Registration, enter
into such customary agreements and take all such other actions in connection
therewith (including those requested by the Holders of a majority of the
Registrable Securities being sold) in order to expedite or facilitate the
disposition of such Registrable Securities and in connection therewith, (i) to
the extent possible, make such representations and warranties to any Underwriters
of such Registrable Securities with respect to the business of the Issuer and
its subsidiaries, the Registration Statement, Prospectus and documents
incorporated by reference or deemed incorporated by reference, if any, in each
case, in form, substance and scope as are customarily made by issuers to
underwriters in underwritten offerings and confirm the same in writing if and
when requested, (ii) obtain opinions of counsel to the Issuer (which counsel
and opinions, in form, scope and substance, shall be reasonably satisfactory to
such Underwriters and their respective counsel) addressed to each Underwriter
of Registrable Securities, covering the matters customarily covered in opinions
requested in underwritten offerings, (iii) obtain “cold comfort” letters
from the independent certified public accountants of the Issuer (and, if
necessary, any other certified public accountant of any subsidiary of the
Issuer, or of any business acquired by the Issuer for which financial
statements and financial data are or are required to be included in the
Registration Statement) addressed to each Underwriter of Registrable
Securities, such letters to be in customary form and covering matters of the
type customarily covered in “cold comfort” letters in connection with underwritten
offerings, (iv) if an underwriting agreement is entered into, include in such
underwriting agreement indemnification provisions and procedures no less
favorable to the selling Holders and underwriters, if any, than those set forth
in Section 5 hereof (or such other provisions and procedures acceptable
to Holders of a majority in aggregate principal amount of Registrable Securities
covered by such Registration Statement and the underwriters (if any), and (v) deliver
such documents and certificates as may be reasonably requested by the Underwriters,
and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of the Issuer made
pursuant to clause (i) above and to evidence compliance with any customary
conditions contained in an underwriting agreement.

In the case of a
Shelf Registration Statement, the Issuer may require each Holder of Registrable
Securities to furnish to the Issuer such information regarding the Holder and
the proposed distribution by such Holder of such Registrable Securities as the
Issuer may from time to time reasonably request in writing. The Issuer may

 16
 

exclude from such
registration the Registrable Securities of any seller so long as such seller
fails to furnish such information within a reasonable time after receiving such
request. Each seller as to which any Shelf Registration is being effected
agrees to furnish promptly to the Issuer all information required to be
disclosed in order to make the information previously furnished to the Issuer
by such seller not materially misleading.

In the case of a
Shelf Registration Statement or if Participating Broker-Dealers who have
notified the Issuer that they will be utilizing the Prospectus contained in the
Exchange Offer Registration Statement as provided in this Section 3(o)
are seeking to sell Exchange Securities and are required to deliver
Prospectuses, each Holder agrees that, upon receipt of any notice from the
Issuer of the happening of any event of the kind described in Section
3(e)(v) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(i) hereof, and, if so directed by the Issuer, such Holder will
deliver to the Issuer (at its expense) all copies in its possession, other than
permanent file copies then in such Holder’s possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such
notice. If the Issuer shall give any such notice to suspend the disposition of
Registrable Securities pursuant to a Registration Statement, the Issuer shall
extend the period during which the Registration Statement shall be maintained
effective pursuant to this Agreement by the number of days during the period
from and including the date of the giving of such notice to and including the
date when the Holders shall have received copies of the supplemented or amended
Prospectus necessary to resume such dispositions.

The Holders of Registrable Securities covered by a
Shelf Registration Statement who desire to do so may sell such Registrable
Securities in an Underwritten Offering. In any such Underwritten Offering, the
investment banker or investment bankers and manager or managers (the “Underwriters”)
that will administer the offering will be selected by the Majority Holders of
the Registrable Securities included in such offering.

4.                                      Participation
of Broker-Dealers in Exchange Offer.

(a)                                  The
Staff of the SEC has taken the position that any broker-dealer that receives
Exchange Securities for its own account in the Exchange Offer in exchange for
Securities that were acquired by such broker-dealer as a result of
market-making or other trading activities (a “Participating Broker-Dealer”),
may be deemed to be an “underwriter” within the meaning of the 1933 Act and
must deliver a prospectus meeting the requirements of the 1933 Act in
connection with any resale of such Exchange Securities.

 17
 

The Issuer understands that it is the Staff’s position
that if the Prospectus contained in the Exchange Offer Registration Statement
includes a plan of distribution containing a statement to the above effect and
the means by which Participating Broker-Dealers may resell the Exchange
Securities, without naming the Participating Broker-Dealers or specifying the
amount of Exchange Securities owned by them, such Prospectus may be delivered
by Participating Broker-Dealers to satisfy their prospectus delivery obligation
under the 1933 Act in connection with resales of Exchange Securities for their
own accounts, so long as the Prospectus otherwise meets the requirements of the
1933 Act.

(b)                                 In
light of the above, notwithstanding the other provisions of this Agreement, the
Issuer agrees that the provisions of this Agreement as they relate to a Shelf
Registration shall also apply to an Exchange Offer Registration to the extent,
and with such reasonable modifications thereto as may be, reasonably requested
by one or more Participating Broker-Dealers as provided in clause (ii)
below, in order to expedite or facilitate the disposition of any Exchange
Securities by Participating Broker-Dealers consistent with the positions of the
Staff recited in Section 4(a) above; provided that:

(i)                                     the
Issuer shall not be required to keep the Exchange Offer Registration Statement
effective, as would otherwise be contemplated by Section 2(b) for a period
exceeding 90 days after the date on which such Exchange Offer Registration
Statement is declared effective (as such period may be extended pursuant to the
penultimate paragraph of Section 3 of this Agreement as applied to
such Exchange Offer Registration Statement);

(ii)                                  the
Issuer shall not be required to amend or supplement the Prospectus contained in
the Exchange Offer Registration Statement, as would otherwise be contemplated
by Section 3(i), for a period exceeding 90 days after the date on
which such Exchange Offer Registration Statement is declared effective (as such
period may be extended pursuant to the penultimate paragraph of Section 3
of this Agreement as applied to such Exchange Offer Registration Statement) and
Participating Broker-Dealers shall not be authorized by the Issuer to deliver
and shall not deliver such Prospectus after such period in connection with the
resales contemplated by this Section 4; and

(iii)                               the
application of the Shelf Registration procedures set forth in Section 3
of this Agreement to an Exchange Offer Registration, to the extent not required
by the positions of the Staff of the SEC or the 1933 Act and the rules and
regulations thereunder, will be in conformity with the reasonable request in
writing to the Issuer by one or more broker-dealers who certify to the Issuer
in writing that they anticipate that they will be Participating Broker-Dealers;
and provided, further, that, in connection with such application
of the Shelf Registration procedures set forth in Section 3 to an
Exchange Offer Registration, the Issuer shall be obligated (x) to deal only
with the

 18
 

Broker-Dealer
Representatives and (y) to pay the fees and expenses of only one counsel
representing the Participating Broker-Dealers.

5.                                      Indemnification
and Contribution.

(a)                                  The
Issuer hereby agrees to indemnify and hold harmless each Holder of Registrable
Securities and each Participating Broker-Dealer selling Exchange Securities
during the applicable period, and each Person, if any, who controls such Person
or its affiliates within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act (each, a “Participant”) from and against any
and all losses, claims, damages, liabilities or expenses (whether direct or
indirect, in contract, tort or otherwise) whatsoever, as incurred (including
the cost of any investigation or preparation) arising out of or based upon:

(i)                                     any
untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement (or any amendment thereto) or Prospectus (as amended
or supplemented if the Issuer shall have furnished any amendments or supplements
thereto) or any preliminary prospectus; or

(ii)                                  the
omission or alleged omission to state, in any Registration Statement (or any
amendment thereto) or Prospectus (as amended or supplemented if the Issuer
shall have furnished any amendments or supplements thereto) or any preliminary
prospectus or any other document or any amendment or supplement thereto, a
material fact necessary to make the statements made therein, in the light of
the circumstances under which they were made, not misleading;

provided,
however, the Issuer will not be liable in any such case to the extent
that any such loss, claim, damage, liability or expense arises out of or is
based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in any Registration Statement (or any amendment thereto)
or Prospectus (as amended or supplemented if the Issuer shall have furnished
any amendments or supplements thereto) or any preliminary prospectus or any
amendment or supplement thereto of a material fact necessary in order to make
the statements made therein, in the light of the circumstances under with they
were made, not misleading, if in any case such statement or omission relates to
such Participant and was made in reliance upon and in conformity with
information furnished in writing to the Issuer by such Participant expressly
for use therein. The indemnity provided for in this Section 5 will be in
addition to any liability that the Issuer may otherwise have to the indemnified
parties. The Issuer shall not be liable under this Section 5 for any
settlement of any claim or action effected without its prior written consent,
which shall not be unreasonably withheld. No Participant shall, without the
prior written consent of the Issuer, effect any settlement or compromise of any
pending or threatened proceeding in respect of which such Issuer is or could
have been a party, or indemnity could have been sought hereunder by such
Issuer, unless such settlement (A) includes an unconditional release of
such Issuer, from all liability in any way related to or arising out of

 19
 

such litigation or proceeding and (B) does not
impose any actual or potential liability or any other obligation upon any
Issuer and does not contain any factual or legal admission of fault,
culpability or a failure to act by or with respect to any Issuer.

Each Participant, severally and not jointly, agrees to
hold the Issuer harmless and to indemnify the Issuer (including any of its
respective affiliated companies and any director, officer, agent or employee of
the Issuer or any such affiliated company) and any director, officer, or other
person controlling (within the meaning of Section 15 of the 1933 Act or
Section 20(a) of the 1934 Act) the Issuer (including any of the Issuer’s
affiliated companies) from and against any and all losses, claims, damages, liabilities
or expenses (whether direct or indirect, in contract, tort or otherwise)
whatsoever, as incurred (including the cost of any investigation and
preparation) arising out of or based upon (i) any untrue statement or
alleged untrue statement of a material fact contained in any Registration
Statement or Prospectus, any amendment or supplement thereto, or any
preliminary prospectus, or (ii) the omission or the alleged omission to
state therein a material fact necessary to make the statements made 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 relates to such
Participant and was made in reliance upon and in conformity with information
furnished in writing by such Participant, expressly for use therein. The
indemnity provided for in this Section 5 will be in addition to any liability
that the Participants may otherwise have to the indemnified parties. The Participants
shall not be liable under this Section 5 for any settlement of any claim or
action effected without their consent, which shall not be unreasonably withheld.
The Issuer shall not, without the prior written consent of such Participant,
effect any settlement or compromise of any pending or threatened proceeding in
respect of which such Participant is or could have been a party, or indemnity
could have been sought hereunder by such Participant, unless such settlement
(A) includes an unconditional release of such Participant, from all
liability in any way related to or arising out of such litigation or proceeding
and (B) does not impose any actual or potential liability or any other
obligation upon any such Participant and does not contain any factual or legal
admission of fault, culpability or a failure to act by or with respect to any
such Participant.

If a claim is made against any indemnified party as to
which such indemnified party may seek indemnity under this Section 5, such
indemnified person shall notify the indemnifying party promptly after any
written assertion of such claim threatening to institute an action or
proceeding with respect thereto and shall notify the indemnifying party
promptly of any action commenced against such indemnified party within a
reasonable time after such indemnified party shall have been served with a
summons or other first legal process giving information as to the nature and basis
of the claim. Failure to so notify the indemnifying party shall not, however,
relieve the indemnifying party from any liability which it may have on account
of the indemnity under this Section 5, except to the extent such failure
results in the forfeiture by the indemnifying party of material rights and
defenses. The indemnifying party

 20
 

shall have the right to assume the defense of any such
litigation or proceeding, including the engagement of counsel reasonably
satisfactory to the indemnified party. In any such litigation or proceeding the
defense of which the indemnifying party shall have so assumed, any indemnified
party shall have the right to participate in such litigation or proceeding and
to retain its own counsel, but the fees and expenses of such counsel shall be
at the expense of such indemnified party unless (i) the indemnifying party
shall have failed promptly to assume the defense thereof and employ counsel as
provided above, or (ii) counsel to the indemnified party reasonably
determines that representation of such indemnified party by the indemnifying
party’s counsel would present the indemnifying party’s counsel with a conflict
of interest. It is understood that the indemnifying party shall not, in
connection with any litigation or proceeding or related litigation or
proceeding in the same jurisdiction, be liable under this Agreement for the
fees and expenses of more than one separate firm (in addition to any local
counsel) for all such indemnified parties and that all such fees and expenses shall
be reimbursed as they are incurred. Such separate firm shall be designated by
the indemnified party.

To the extent the indemnity provided for in the
foregoing paragraphs of this Section 5 is for any reason held unenforceable
although otherwise applicable in accordance with its terms with respect to an
indemnified party in respect of any losses, claims, damages, liabilities or
expenses referred to therein, then the indemnifying party agrees to contribute
to the amount paid or payable by such indemnified person as a result of such
losses, claims, damages, liabilities or expenses (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying
party, on the one hand, and by such indemnified party, on the other, from the
offering of the Securities or (ii) if the allocation provided by the foregoing
clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in the
foregoing clause (i), but also the relative fault of the indemnifying party, on
the one hand, and of such indemnified party, on the other, in connection with
the statements, actions or omissions which resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative benefits received by the Issuer, on the one hand,
and by such Participant, on the other, shall be deemed in the same proportion
as the total proceeds from the offering (before deducting expenses) of the Securities
received by the Issuer bear to the total net profit received by such
Participant in connection with the sale of the Securities. Relative fault shall
be determined by reference to, among other things, whether any alleged untrue
statement or omission or any other alleged conduct relates to information
provided by the Issuer or other conduct by the Issuer (or its employees or
other agents), on the one hand, or by such Participants, on the other hand.

The parties agree that it would not be equitable if
the amount of such contribution 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 previous
paragraph. Notwithstanding any other provision of the previous paragraph, no
Participant shall be obligated to make contributions hereunder that in the aggregate
exceed the

 21
 

total net profit received by such Participant in connection
with the sale of the Securities, less the aggregate amount of any damages that
such Participant has 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, and no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of 1933 Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. For
purposes of this paragraph (d), each person, if any, who controls a Participant
within the meaning of Section 15 of 1933 Act or Section 20 of the
1934 Act shall have the same rights to contribution as the Participants, and
each director of any Issuer, each officer of any Issuer and each person, if
any, who controls any Issuer within the meaning of Section 15 of 1933 Act
or Section 20 of the 1934 Act, shall have the same rights to contribution
as the Issuer.

6.                                      Miscellaneous.

(a)                                  No
Inconsistent Agreements. The Issuer has not entered into, and on or after
the date of this Agreement will not enter into, any agreement which is
inconsistent with the rights granted to the Holders of Registrable Securities
in this Agreement or otherwise conflicts with the provisions hereof. The rights
granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Issuer’s other
issued and outstanding securities under any such agreements.

(b)                                 Amendments
and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given unless the Issuer
has obtained the written consent of Holders of at least a majority in aggregate
principal amount of the outstanding Registrable Securities affected by such
amendment, modification, supplement, waiver or consent; provided, however,
that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against
any Holder of Registrable Securities unless consented to in writing by such
Holder. Notwithstanding the foregoing sentence, (i) a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders of Registrable Securities whose securities
are being sold pursuant to a Registration Statement and that does not directly
or indirectly affect, impair, limit or compromise the rights of other Holders
of Registrable Securities may be given by Holders of at least a majority in
aggregate principal amount of Registrable Securities being sold pursuant to
such Registration Statement, (ii) this Agreement may be amended, without
the consent of any Holder of Registrable Securities, by written agreement signed
by the Issuer and the Initial Purchasers, to cure any ambiguity, correct or
supplement any provision of this Agreement that may be inconsistent with any
other provision of this Agreement or to make any other provisions with respect
to matters or questions arising under this Agreement which shall not be
inconsistent with other provisions of this Agreement, (iii) this Agreement
may be amended, modified or supplemented, and waivers and consents to
departures from the provisions hereof may be given, by written

 22
 

agreement signed by the Issuer and the Initial
Purchasers to the extent that any such amendment, modification, supplement,
waiver or consent is, in their reasonable judgment, necessary or appropriate to
comply with applicable law (including any interpretation of the Staff of the
SEC) or any change therein and (iv) to the extent any provision of this
Agreement relates to an Initial Purchaser, such provision may be amended,
modified or supplemented, and waivers or consents to departures from such provisions
may be given, by written agreement signed by such Initial Purchaser and the
Issuer.

(c)                                  Notices.
All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telex, telecopier,
or any courier guaranteeing overnight delivery (i) if to a Holder, at the most
current address given by such Holder to the Issuers by means of a notice given
in accordance with the provisions of this Section 6(c); (ii) if to the
Issuer, initially at the Issuer’s address set forth in the Indenture and
thereafter at such other address, notice of which is given in accordance
with the provisions of this Section 6(c); and (iii) if to the Trustee,
initially at the Trustee’s address set orth in the Indenture and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c).

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

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

(d)                                 Successors
and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors, assigns and transferees of each of the parties, including,
without limitation and without the need for an express assignment, subsequent
Holders; provided that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Registrable Securities in
violation of the terms of the Indenture. If any transferee of any Holder shall
acquire Registrable Securities, in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities
such Person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement and such Person shall
be entitled to receive the benefits hereof. The Trustee (in its capacity as
Trustee under the Indenture or acting on behalf of the Holders pursuant to this
Agreement) shall have no liability or obligation to either (i) the Issuer with
respect to any failure by a Holder to comply with, or any breach by any Holder
of, any of the obligations of such Holder under this Agreement or (ii) any
Holder with respect to any failure

 23
 

by the Issuer to comply with, or any breach by the
Issuer of, any of the obligations of the Issuer under this Agreement.

(e)                                  Entire
Agreement. This Agreement contains the entire agreement among the parties
hereto with respect to the subject matter hereof and supersedes and replaces
all other prior agreements, written or oral, among the parties hereto with
respect to the subject matter hereof.

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

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

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

(i)                                     Governing
Law. The internal laws of the State of New York shall govern the
enforceability and validity of this Agreement, the construction of its terms
and the interpretation of the rights and duties of the parties hereto without
giving effect to conflicts of laws, rules or principles.

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

 24
 

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

	
  

  	
  QWEST CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 25
 

 

	
  

  	
  J.P. MORGAN SECURITIES INC.,

  
	
   

  	
  As Representative of the Initial Purchasers

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  J.P. MORGAN SECURITIES INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 26EXHIBIT 10.1

EXECUTION COPY

VOTING AGREEMENT

VOTING AGREEMENT, dated as of May 14, 2007 (this “Agreement”),
by and between Pearson Education, Inc., a Delaware corporation (“Parent”),
on the one hand, and the stockholders of the Company (as defined below) set
forth on the signature page hereto (collectively, the “Stockholders”),
on the other hand.

W I T N E S S E T H:

WHEREAS, Parent, Epsilon Acquisition Corp., a Delaware corporation and
a wholly-owned subsidiary of Parent (“Merger Sub”), and eCollege.com, a
Delaware corporation (the “Company”), have entered into an Agreement and
Plan of Merger, dated as of the date hereof (as it may be amended, the “Merger
Agreement”; terms defined in the Merger Agreement and not otherwise
defined herein being used herein as therein defined), pursuant to which, among
other things, Merger Sub will merge with and into the Company (the “Merger”)
and each issued and outstanding share of common stock, par value $0.01 per
share, of the Company (the “Common Stock”) (other than shares cancelled
pursuant to Section 2.1(b) of the Merger Agreement and Dissenting Shares) will
be converted into the right to receive the Merger Consideration.

WHEREAS, as of the date of this Agreement, the Stockholders owned of
record and beneficially an aggregate of 4,618,154 shares of Common Stock and
each Stockholder owned the number of such shares set forth beside such
Stockholder’s name on the signature page hereto (such Common Stock (the “Existing
Shares”), together with any other Common Stock acquired by any Stockholder
after the date hereof, whether acquired directly or indirectly, by purchase,
stock dividend, distribution, split-up, recapitalization, combination, exchange
of shares or the like, or upon the receipt, vesting or exercise, as applicable,
of Equity Incentives or otherwise, in each case from the date of this Agreement
through the term of this Agreement, are collectively referred to herein as the
Stockholders’ “Subject Shares”).

WHEREAS, as a condition and inducement to Parent’s and Merger Sub’s
willingness to enter into the Merger Agreement, Parent has requested that the
Stockholders agree, and each of the Stockholders has agreed, to enter into this
Agreement.

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

ARTICLE I

VOTING AGREEMENT; GRANT OF PROXY

SECTION 1.01.      Agreement to
Vote.  Each Stockholder hereby agrees
to take (or cause to be taken) the following actions (whether in person, by
proxy or by written consent):

(i)        to appear at any meeting of the
stockholders of the Company, however called, and at any adjournment or
postponement thereof at which the Merger Agreement and the Merger are submitted
for the consideration and vote of the stockholders of the Company or otherwise
cause the Subject Shares owned beneficially or of record by the Stockholders to
be counted as present thereat for purposes of calculating a quorum; and

(ii)       to vote (or cause to be voted), in person
or by proxy, or if applicable by execution of a written consent, all the
Subject Shares owned by such Stockholder, and any other voting securities of
the Company (whenever acquired), that are owned beneficially or of record by
such Stockholder or as to which such Stockholder has, directly or indirectly,
the right to vote or direct the voting, (A) in favor of adoption of the Merger
Agreement and any other action of the Company’s Stockholders requested in furtherance
thereof, (B) against any action or agreement submitted for approval of the
stockholders of the Company that would reasonably be expected to result in a
breach of any covenant, representation or warranty or any other obligation or
agreement of the Company contained in the Merger Agreement or of the
Stockholders contained in this Agreement; (C) against any action, agreement or
transaction submitted for approval to the Stockholders of the Company that
would reasonably be expected to prevent, materially delay or materially impede
the timely consummation of the Merger or would reasonably be expected to result
in any condition to the consummation of the Merger contained in Article VII of
the Merger Agreement not being satisfied; (D) against any other action,
agreement or transaction submitted for approval to the stockholders of the
Company that would constitute an Acquisition Proposal; and (E) against any
extraordinary dividend or distribution by the Company or any subsidiary and any
change in the capital structure of the Company or any subsidiary (other than
pursuant to the Merger Agreement).

The
obligations of the Stockholders set forth in this Section 1.01 shall apply
whether or not the Company breaches any of its representations, warranties,
covenants or agreements set forth in the Merger Agreement.

SECTION 1.02.      Irrevocable
Proxy.  Each Stockholder hereby
irrevocably and unconditionally revokes any and all previous proxies granted
with respect to its Subject Shares.  By
entering into this Agreement, each Stockholder hereby irrevocably and
unconditionally grants a proxy appointing Parent as such Stockholder’s
attorney-in-fact and proxy, with full power of substitution, for and in such
Stockholder’s name, to vote or execute consents in the manner contemplated by
Section 1.01.  The proxy granted by such
Stockholder pursuant to this Article I is coupled with an interest, is
irrevocable and is granted in consideration of Parent and Merger Sub entering
into this Agreement and the Merger Agreement and incurring certain related fees
and expenses.  Each Stockholder shall
perform such further acts and execute such further documents as may be required
to vest in Parent the sole power to vote such Stockholder’s Subject Shares in
the manner contemplated by Section 1.01. 
Notwithstanding the foregoing, the proxy granted by each Shareholder
shall be revoked upon termination of this Agreement in accordance with its
terms.

 2
 

SECTION 1.03.      Appraisal
Rights.  Each Stockholder hereby
consents to and approves the actions taken by the board of directors of the
Company in approving the Merger Agreement, this Agreement, the Merger and the
transactions contemplated by the Merger Agreement.  Each Stockholder hereby waives, and agrees
not to exercise or assert, any appraisal or similar rights under Section 262 of
the General Corporation Law of the State of Delaware or other applicable law in
connection with the Merger.

ARTICLE II
                 REPRESENTATIONS AND
WARRANTIES

Each Stockholder hereby represents and warrants to Parent as follows:

SECTION 2.01.      Authorization.  If such Stockholder is not an individual, the
execution, delivery and performance by such Stockholder of this Agreement and
the consummation by such Stockholder of the transactions contemplated hereby
are within the corporate or similar powers of such Stockholder and have been
duly authorized by all necessary corporate or similar action.  If this Agreement is being executed in a
representative or fiduciary capacity, the person signing this Agreement has
full power and authority to enter into and perform this Agreement.  This Agreement constitutes a valid and
binding agreement of such Stockholder. 
If such Stockholder is a natural person and is married, and such
Stockholder’s Subject Shares constitute community property or otherwise need
spousal or other approval for this Agreement to be legal, valid and binding,
this Agreement has been duly authorized, executed and delivered by, and
constitutes a valid and binding agreement of, the Stockholder’s spouse,
enforceable against such spouse in accordance with its terms.  No trust of which such Stockholder is a
trustee requires the consent of any beneficiary to the execution and delivery
of this Agreement or to the consummation of the transactions contemplated
hereby. 

SECTION 2.02.      Non-Contravention.  The execution, delivery and performance by
such Stockholder of this Agreement and the consummation by such Stockholder of
the transactions contemplated hereby do not and shall not (i) if such
Stockholder is not an individual, violate any organizational documents of such
Stockholder, (ii) violate any applicable law, rule, regulation, judgment,
injunction, order or decree, (iii) require any consent or other action by any
person under, constitute a default under, or give rise to any right of termination,
cancellation or acceleration or to a loss of any benefit to which such
Stockholder is entitled under any provision of any agreement or other
instrument binding on such Stockholder, (iv) result in the imposition of any
lien on any asset of Stockholder or (v) violate any other agreement,
arrangement or instrument to which such Stockholder is a party or by which such
Stockholder (or any of its assets) is bound.   

SECTION 2.03.      Ownership of
Subject Shares.  Such Stockholder is
the record and beneficial owner of the Subject Shares set forth beside such
Stockholder’s name on the signature page hereto, free and clear of any lien and
any other limitation or restriction (including any restriction on the right to
vote or otherwise dispose of the Subject Shares), other than pursuant to this
Agreement and such Stockholder has good and valid title to such Subject
Shares.  Except for this Agreement, none
of the Subject Shares is subject to any voting trust or other agreement, arrangement
or instrument with respect to the voting of such shares.

 3
 

SECTION 2.04.      Total
Subject Shares.  Except for the
Subject Shares set forth beside such Stockholder’s name on the signature page
hereto and except for any Equity Incentives referred to in the immediately
following sentence, such Stockholder does not beneficially own any (i) shares
of capital stock or voting securities of the Company, (ii) securities of the
Company convertible into or exchangeable for shares of capital stock or voting
securities of the Company or (iii) Options, Equity Incentives or other rights
to acquire from the Company any capital stock, voting securities or securities
convertible into or exchangeable for capital stock or voting securities of the
Company.  As of the date of this
Agreement, each Stockholder owns Options to acquire the number of shares of
capital stock of the Company and the other Equity Incentives set forth opposite
such Stockholder’s name on the signature page hereto.  

SECTION 2.05.      Reliance by
Parent and Merger Sub.  Such
Stockholder understands and acknowledges that Parent and Merger Sub are
entering into the Merger Agreement in reliance upon such Stockholder’s
execution and delivery of this Agreement.

ARTICLE III

OTHER COVENANTS

Each Stockholder hereby covenants and agrees that:

SECTION 3.01.      No Transfers.

(a)   Except pursuant to the terms
of this Agreement, such Stockholder shall not, without the prior written
consent of Parent or Merger Sub which may be withheld in their sole discretion,
directly or indirectly, (i) grant any proxies or enter into any voting trust or
other agreement or arrangement with respect to the voting of any Subject
Shares, (ii) voluntarily take any action that would or is reasonably likely to
(A) make any representation or warranty contained herein untrue or incorrect in
any material respect or (B) have the effect in any material respect of
preventing such Stockholder from performing its obligations under this
Agreement or (iii) sell, assign, transfer, pledge, encumber, distribute,
gift  or otherwise dispose of (including by
merger or otherwise by operation of law) (collectively , a “Transfer”)
or enter into any contract, option or other arrangement or understanding with
respect to any Transfer of any Subject Shares during the term of this Agreement
except for Transfers solely for estate planning purposes to any person or
entity who becomes party to and bound by the terms of this Agreement as a
Stockholder.  For purposes of this
Section 3.01, the term “sell” or “sale” or any derivatives thereof shall
include (i) a sale, Transfer or disposition of record or beneficial ownership,
or both and (ii) a short sale with respect to Common Stock or substantially
identical property, entering into or acquiring an offsetting derivative
contract with respect to Common Stock or substantially identical property,
entering into or acquiring a futures or forward contract to deliver Common
Stock or substantially identical property or entering into any transaction that
has the same effect as any of the foregoing. 
The Stockholders further agree that they shall fully cooperate with
Parent, as and to the extent reasonably requested by Parent, to effect the
transactions contemplated hereby including the Offer and the Merger.

 4
 

(b)            Each of the
Stockholders agrees, while this Agreement is in effect, to notify Parent
promptly in writing of the number of any additional shares of Common Stock or
any Equity Incentives acquired by such Stockholder, if any, after the date
hereof.

SECTION 3.02.      Other
Transactions.  Each of the
Stockholders agrees that it will not, directly or indirectly:  (i) solicit, initiate, induce, facilitate or
encourage (including by way of furnishing information or providing access to
its properties, books, records or personnel) any inquiries regarding, or the
making, submission or announcement of any proposal or offer that constitutes,
or could reasonably be expected to result in, an Acquisition Proposal; (ii)
participate in any discussions or negotiations regarding, or take any other
action to facilitate or encourage any inquiries or the making of any proposal
that constitutes or would be reasonably expected to lead to, an Acquisition
Proposal (other than with Parent and its representatives); or (iii) enter into
any letter of intent, acquisition agreement or any similar agreement or understanding
relating to an Acquisition Proposal. 
Each of the Stockholders will, and will cause their respective and
representatives to, immediately cease and cause to be terminated any and all
existing activities, discussions or negotiations (including any such
activities, discussions or negotiations conducted by affiliates, directors,
officers, employees, agents and representatives of the Company or any of its
subsidiaries) with any third parties conducted heretofore with respect to
consideration of any Acquisition Proposal. 
The Stockholders shall promptly (and in any event no later than 24
hours) notify Parent of the receipt of any Acquisition Proposal or any inquiry,
proposal or offer that is reasonably likely to lead to an Acquisition Proposal
after the date hereof , which notice shall include the identity of the Person
making such Acquisition Proposal or other inquiry, proposal or offer and the
material terms and conditions thereof, and will keep Parent promptly and
reasonably apprised of any related material developments, discussions and
negotiations related thereto.

SECTION 3.03.      RESERVED.  

SECTION 3.04.      Further
Assurances.  Parent, Merger Sub and
each Stockholder shall each execute and deliver, or cause to be executed and
delivered, all further documents and instruments and use its reasonable best
efforts to take, or cause to be taken, all actions and to do, or cause to be
done, all things necessary, proper or advisable under applicable laws and
regulations, to consummate and make effective the transactions contemplated by
this Agreement.

ARTICLE IV

MISCELLANEOUS

SECTION 4.01.      Termination.  This Agreement shall terminate automatically,
without any action on the part of any party hereto, upon the earlier to occur
of (a) the Effective Time and (b) the termination of the Merger Agreement
pursuant to its terms.  Upon such
termination, no party shall have any further obligations or liabilities
hereunder except that (i) the obligations of the Stockholders this Article IV shall
survive termination and (ii) such termination shall not relieve any party from
liability for any willful breach of this Agreement prior to such termination.

SECTION 4.02.      No Ownership
Interest.  Nothing contained in this
Agreement shall be deemed to vest in Parent any direct or indirect ownership or
incidence of ownership of 

 5
 

or with respect to any Subject Shares.  All rights, ownership and economic benefits
of and relating to the Subject Shares shall remain vested in and belong to the
Stockholders, and Parent shall have no authority to manage, direct,
superintend, restrict, regulate, govern or administer any of the policies or
operations of the Company or exercise any power or authority to direct the
Stockholders in the voting of any of the Subject Shares, except as otherwise
provided herein.

SECTION 4.03.      Stockholder
Capacity.  No person executing this
Agreement, or any officer, director, partner, employee, agent or representative
of such person, who is or becomes during the term of this Agreement a director
or officer of the Company shall be deemed to make any agreement or
understanding in this Agreement in such person’s capacity as a director or
officer.  Each Stockholder is entering
into this Agreement solely in his capacity as the record holder or beneficial
owner of, or the trustee of a trust whose beneficiaries are the beneficial
owners of, such Stockholder’s Shares and nothing herein shall limit or affect
any actions taken by a Stockholder in his capacity as a director or officer of
the Company.

SECTION 4.04.      Notices.  All notices, requests, claims, demands and
other communications hereunder shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person, by
facsimile or by registered or certified mail (postage prepaid, return receipt
requested) (a) if to the Stockholders, to the address or facsimile set forth on
the signature pages hereto (or at such other address for a party as shall be
specified by like notice) with an additional copy (which shall not constitute
notice) to:

Patterson Belknap Webb & Tyler LLP

1133 Avenue of the Americas

New York, New York 10036

Attention:  John P. Schmitt, Esq.

Facsimile:  212-336-2442

or (b) if to Parent at
the following addresses (or at such other address for a party as shall be
specified by like notice):

Pearson Education, Inc.

c/o Pearson Inc.

1330 Avenue if the Americas

New York, NY  10019

Attention:  Philip J. Hoffman

Facsimile:  212-641-2532

with an additional copy (which shall not constitute
notice) to:

Morgan, Lewis & Bockius,
LLP

101 Park Avenue

New York, NY  10178-0600

Attention:  Charles E. Engros, Esq.  

Facsimile:  212-309-6001

SECTION 4.05.      Interpretation.  When reference is made in this Agreement to
an Article or Section, such reference shall be to an Article or Section of this
Agreement unless 

 6
 

otherwise indicated. 
Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without
limitation.”  The words “hereof,” “herein,”
“hereby” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement.  The word “or”
will be inclusive and not exclusive unless the context requires otherwise.  Unless the context requires otherwise, any
agreements, documents, instruments or laws defined or referred to in this
Agreement will be deemed to mean or refer to such agreements, documents,
instruments or laws as from time to time amended, modified or supplemented,
including (i) in the case of agreements, documents or instruments, by waiver or
consent and (ii) in the case of laws, by succession of comparable successor
statutes. All references in this Agreement to any particular law will be deemed
to refer also to any rules and regulations promulgated under that law.  This Agreement shall be construed without
regard to any presumption or rule requiring construction or interpretation
against the party drafting or causing any instrument to be drafted.

SECTION 4.06.      Counterparts.  This Agreement may be executed and delivered
(including by facsimile or other electronic transmission) in one or more
counterparts, and by the different parties hereto in separate counterparts,
each of which when executed shall be deemed to be an original but all of which
taken together shall constitute one and the same agreement

SECTION 4.07.      Entire
Agreement.  This Agreement (together
with the Merger Agreement) constitute the entire agreement among the parties
with respect to the subject matter hereof and supersede all prior agreements
and undertakings, both written and oral, among the parties, or any of them,
with respect to the subject matter hereof.

SECTION 4.08.      Governing
Law.  This Agreement, the rights of
the parties and all actions arising in whole or in part hereunder or in
connection herewith, shall be governed by, and construed in accordance with,
the domestic substantive laws of the State of Delaware (without giving effect
to any choice or conflict of law provision or rule that would cause the application
of the laws of any other jurisdiction).

SECTION 4.09.      Specific
Performance; Jurisdiction; Waiver of Jury Trial.  The parties agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise
breached.  It is accordingly agreed that
the parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement in the Court of Chancery of the State of Delaware or, if
under applicable law exclusive jurisdiction over such matter is vested in the
federal courts, any court of the United States located in the State of
Delaware, this being in addition to any other remedy to which such party is
entitled at law or in equity.  In
addition, each of the parties hereto (i) consents to submit itself to the
personal jurisdiction of the Court of Chancery of the State of Delaware or any
court of the United States located in the State of Delaware in the event any
dispute arises out of this Agreement or any of the transactions contemplated by
this Agreement, (ii) agrees that it will not attempt to deny or defeat such
personal jurisdiction by motion or other request for leave from any such court,
(iii) agrees that it will not bring any action relating to this Agreement or
any of the transactions contemplated by this Agreement in any court other than
the Court of Chancery of the State of Delaware or, if under applicable law exclusive
jurisdiction over such matter is 

 7
 

vested in the federal courts, any court of the United
States located in the State of Delaware and (iv) consents to service being made
through the notice procedures set forth in Section 4.04.  Each of the parties hereto hereby agrees that
service of any process, summons, notice or document by U.S. registered mail to
the respective addresses set forth in Section 4.04 shall be effective service
of process for any suit or proceeding in connection with this Agreement or the
transactions contemplated hereby.  Each
of the parties hereto hereby waives to the fullest extent permitted by
applicable law any right it may have to a trial by jury with respect to any
litigation directly or indirectly arising out of, under or in connection with
this Agreement or the Merger.

SECTION 4.10.      Amendment.  This Agreement may not be amended except by
an instrument in writing signed on behalf of each of the parties hereto.

SECTION 4.11.      Severability.  If any term or other provision of this Agreement
is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party.  Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner to the end that the transactions contemplated
hereby are fulfilled to the fullest extent possible.

SECTION 4.12.      Assignment;
Parties in Interest.  This Agreement
shall not be assigned by any of the Stockholders by operation of law or
otherwise without the prior written consent of each of Parent.  Subject to the preceding sentence, this
Agreement shall be binding upon, inure to the benefit of and be enforceable by
the parties and their respective successors and permitted assigns, and nothing
in this Agreement, express or implied, is intended to or shall confer upon any
other person any rights, benefits or remedies of any nature whatsoever under or
by reason of this Agreement.  Each
Stockholder agrees that this Agreement and the obligations hereunder shall
attach to such Stockholder’s Subject Shares and shall be binding upon any
person to whom legal or beneficial ownership of such Subject Shares shall pass,
whether by operation of law or otherwise, including such Stockholder’s heirs,
guardians, administrators or successors. 
This Agreement is not intended to confer upon any person other than the
parties hereto any rights or remedies hereunder.

SECTION 4.13.      No Waiver.  The terms and provisions hereof may not be
waived except by an instrument signed on behalf of the party waiving
compliance.  The failure or delay of any
party to assert any rights or remedies shall not constitute a waiver of such
rights or remedies.

SECTION 4.14.      Consents and
Waivers.  The Stockholders hereby
give any consents or waivers that are reasonably required for the consummation
of the Merger under the terms of any agreements to which any Stockholder is a
party or pursuant to any rights the Stockholders may have.

SECTION 4.15.      Legends.  Each Stockholder shall cause the Shares to
bear a legend, stating that they are subject to the terms of this Agreement.

 8
 

[Remainder of Page Left Blank Intentionally]

 9
 

IN WITNESS WHEREOF, Parent and Stockholders have
caused this Agreement to be executed as of the date first written above by
their respective officers thereunto duly authorized.

	
  

  	
  PARENT:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PEARSON EDUCATION, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip J. Hoffman

  
	
   

  	
   

  	
  Name:

  	
  Philip J. Hoffman

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SHAREHOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oakleigh Thorne

  
	
   

  	
   

  	
  Name:

  	
  Oakleigh Thorne

  
	
   

  	
   

  	
  Shares:

  	
  909,070

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  OAKLEIGH B. THORNE 2006 3-YEAR ANNUITY TRUST

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oakleigh Thorne

  
	
   

  	
   

  	
  Name:

  	
  Oakleigh Thorne

  
	
   

  	
   

  	
  Title:

  	
  Trustee

  
	
   

  	
   

  	
  Shares:

  	
  722,222

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  

 

 10
 

 

	
  

  	
  BLUMENSTEIN/THORNE INFORMATION PARTNERS I, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Blumenstein

  
	
   

  	
   

  	
  Name:

  	
  Jack Blumenstein

  
	
   

  	
   

  	
  Title:

  	
  Co-President

  
	
   

  	
   

  	
  Shares: 

  	
  2,595,307

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oakleigh Thorne

  
	
   

  	
   

  	
  Name:

  	
  Oakleigh Thorne

  
	
   

  	
   

  	
  Title:

  	
  Co-President

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  OAKLEIGH THORNE IRREVOCABLE GST DATED 8/10/98

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Merrill H. Smith

  
	
   

  	
   

  	
  Name:

  	
  Merrill H. Smith

  
	
   

  	
   

  	
  Title:

  	
  Co-Trustee

  
	
   

  	
   

  	
  Shares:

  	
  75,955

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oakleigh Thorne

  
	
   

  	
   

  	
  Name:

  	
  Oakleigh B. Thorne

  
	
   

  	
   

  	
  Title:

  	
  Co-Trustee

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  

 

 11
 

 

	
  

  	
  OAKLEIGH THORNE GST III DATED 1/31/2005

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Blumenstein

  
	
   

  	
   

  	
  Name:

  	
  Jack Blumenstein

  
	
   

  	
   

  	
  Title:

  	
  Co-Trustee

  
	
   

  	
   

  	
  Shares:

  	
  68,500

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eliza Thorne Blue

  
	
   

  	
   

  	
  Name:

  	
  Eliza Thorne Blue

  
	
   

  	
   

  	
  Title:

  	
  Co-Trustee

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  OAKLEIGH L. THORNE TRUST UNDER AGREEMENT DATED
  12/15/76

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oakleigh Thorne

  
	
   

  	
   

  	
  Name:

  	
  Oakleigh Thorne

  
	
   

  	
   

  	
  Title:

  	
  Co-Trustee

  
	
   

  	
   

  	
  Shares:

  	
  247,100

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Felicitas Thorne

  
	
   

  	
   

  	
  Name:

  	
  Felicitas Thorne

  
	
   

  	
   

  	
  Title:

  	
  Co-Trustee

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Potter Palmer

  
	
   

  	
   

  	
  Name:

  	
  Potter Palmer

  
	
   

  	
   

  	
  Title:

  	
  Co-Trustee

  
	
   

  	
   

  	
  Address:

  	
  270 E. Westminster

  
	
   

  	
   

  	
   

  	
  Lake Forest, IL

  

 

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]