Document:

Exhibit
10.69

 

EXECUTION
COPY

 

$450,000,000

 

Nextel Partners, Inc.

 

81/8 % Senior Notes Due 2011

 

 

REGISTRATION RIGHTS AGREEMENT

 

 

June 23, 2003

 

CREDIT
SUISSE FIRST BOSTON LLC

MORGAN
STANLEY & CO. INCORPORATED

UBS
SECURITIES LLC

LEGG
MASON WOOD WALKER, INCORPORATED

THOMAS
WEISEL PARTNERS LLC,

c/o
Credit Suisse First Boston LLC,

Eleven Madison Avenue,

New York, N.Y. 10010-3629

 

Ladies and Gentlemen:

 

Nextel Partners, Inc. a Delaware corporation (the “Company”),
proposes to issue and sell to Credit Suisse First Boston LLC, Morgan Stanley
& Co. Incorporated, UBS Securities LLC, Legg Mason Wood Walker,
Incorporated and Thomas Weisel Partners LLC (collectively, the “Initial
Purchasers”), upon the terms set forth in a purchase agreement dated
as of June 16, 2003 (the “Purchase Agreement”), $450,000,000
aggregate principal amount of its Senior Notes (the “Initial Securities”).  The Initial Securities will be issued
pursuant to an Indenture, dated as of the date hereof (the “Indenture”),
among the Company and The Bank of New York, as trustee  (the “Trustee”). 
As an inducement to the Initial Purchasers to enter into the Purchase
Agreement, the Company agrees with the Initial Purchasers, for the benefit of
the Initial Purchasers and the holders of the Securities (as defined below)
(collectively the “Holders”), as follows:

 

1.  Registered
Exchange Offer.  Unless not
permitted by applicable law (after the Company has complied with the ultimate
paragraph of this Section 1), the Company shall prepare and, not later
than 120 days (such 120th day being a “Filing Deadline”) after the
date on which the Initial Purchasers purchase the Initial Securities pursuant
to the Purchase Agreement (the “Closing Date”), file with the Securities
and Exchange Commission (the “Commission”) a registration statement (the
“Exchange
Offer
Registration  Statement”) on an appropriate form under
the Securities Act of 1933, as amended (the “Securities Act”), with
respect to a proposed offer (the “Registered Exchange Offer”) to the Holders
of Transfer Restricted Securities (as defined in Section 6 hereof), who
are not prohibited by any law or policy of the Commission from participating in
the Registered Exchange Offer, to issue and deliver to such Holders, in
exchange for the Initial Securities, a like aggregate principal amount of debt
securities of the Company issued under the Indenture, identical in all material
respects to the Initial Securities and registered under the Securities Act (the
“Exchange
Securities”).  The Company
shall use its best efforts to (i) cause such Exchange Offer Registration
Statement to become effective under the Securities Act within 180 days
after the Closing Date (such 180th day being an “Effectiveness Deadline”)  and (ii)  keep the Exchange Offer
Registration Statement effective for not less than 20 days (or longer, if
required by applicable law)

 

 

after the date notice of the Registered Exchange Offer is mailed to the
Holders (such period being called the “Exchange Offer  Registration Period”).

 

If the Company commences the Registered Exchange
Offer, the Company (i) will be entitled to consummate the Registered
Exchange Offer 30 days after such commencement (provided that the Company
has accepted all the Initial Securities theretofore validly tendered in accordance
with the terms of the Registered Exchange Offer) and (ii) will be required
to consummate the Registered Exchange Offer no later than 30 days after the
date on which the Exchange Offer Registration Statement is declared effective
(such 30th day being the “Consummation Deadline”).

 

Following the declaration of the
effectiveness of the Exchange Offer Registration Statement, the Company shall
promptly commence the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder of Transfer Restricted
Securities electing to exchange the Initial Securities for Exchange Securities
(assuming that such Holder is not an affiliate of the Company within the
meaning of the Securities Act, acquires the Exchange Securities in the ordinary
course of such Holder’s business and has no arrangements with any person to
participate in the distribution of the Exchange Securities and is not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer) to trade such Exchange Securities from and after
their receipt without any limitations or restrictions under the Securities Act
and without material restrictions under the securities laws of the several
states of the United States.

 

The Company acknowledges that, pursuant to current
interpretations by the Commission’s staff of Section 5 of the Securities
Act, in the absence of an applicable exemption therefrom, (i) each Holder which
is a broker-dealer electing to exchange Initial Securities, acquired for its
own account as a result of market making activities or other trading
activities, for Exchange Securities (an “Exchanging Dealer”), is required to deliver
a prospectus containing the information set forth in (a) Annex A hereto on the
cover, (b) Annex B hereto in the “Exchange Offer Procedures” section and the
“Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of
Distribution” section of such prospectus in connection with a sale of any such
Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer and (ii) an Initial Purchaser that elects to sell
Securities (as defined below) acquired in exchange for Initial Securities
constituting any portion of an unsold allotment, is required to deliver a
prospectus containing the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in connection with such
sale.

 

The Company shall use its best efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the
prospectus contained therein, in order to permit such prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however,
that (i) in the case where such prospectus and any amendment or supplement
thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such
period shall be the lesser of 180 days and the date on which all
Exchanging Dealers and the Initial Purchasers have sold all Exchange Securities
held by them (unless such period is extended pursuant to Section 3(j)
below) and (ii) the Company shall make such prospectus and any amendment or
supplement thereto available to any broker-dealer for use in connection with
any resale of any Exchange Securities for a period of not less than
180 days after the consummation of the Registered Exchange Offer.

 

If, upon consummation of the Registered Exchange
Offer, any Initial Purchaser holds Initial Securities acquired by it as part of
its initial distribution, the Company, simultaneously with the delivery of the
Exchange Securities pursuant to the Registered Exchange Offer, shall issue and deliver
to such Initial Purchaser upon the written request of such Initial Purchaser,
in exchange (the “Private Exchange”) for the Initial
Securities held by such Initial Purchaser, a like principal amount of debt
securities of the Company issued under the Indenture and identical in all
material respects to the Initial Securities (the “Private

 

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Exchange
Securities”).  The
Initial Securities, the Exchange Securities and the Private Exchange Securities
are herein collectively called the “Securities”.

 

In connection with the Registered Exchange Offer, the
Company shall:

 

(a) mail to each Holder a
copy of the prospectus forming part of the Exchange Offer Registration
Statement, together with an appropriate letter of transmittal and related
documents;

 

(b) keep the Registered
Exchange Offer open for not less than 20 days (or longer, if required by
applicable law) after the date notice thereof is mailed to the Holders;

 

(c) utilize the services
of a depositary for the Registered Exchange Offer with an address in the
Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee;

 

(d) permit Holders to
withdraw tendered Securities at any time prior to the close of business, New
York time, on the last business day on which the Registered Exchange Offer
shall remain open; and

 

(e) otherwise comply with
all applicable laws.

 

As soon as practicable after the close of the
Registered Exchange Offer or the Private Exchange, as the case may be, the
Company shall:

 

(x) accept for exchange
all the Securities validly tendered and not withdrawn pursuant to the
Registered Exchange Offer and the Private Exchange;

 

(y) deliver to the
Trustee for cancellation all the Initial Securities so accepted for exchange;
and

 

(z) cause the Trustee to
authenticate and deliver promptly to each Holder of the Initial Securities,
Exchange Securities or Private Exchange Securities, as the case may be, equal
in principal amount to the Initial Securities of such Holder so accepted for
exchange.

 

The Indenture will provide that the Exchange
Securities will not be subject to the transfer restrictions set forth in the
Indenture and that all the Securities will vote and consent together on all
matters as one class and that none of the Securities will have the right to
vote or consent as a class separate from one another on any matter.

 

Interest on each Exchange Security and Private
Exchange Security issued pursuant to the Registered Exchange Offer and in the
Private Exchange will accrue from the last interest payment date on which
interest was paid on the Initial Securities surrendered in exchange therefor
or, if no interest has been paid on the Initial Securities, from the date of
original issue of the Initial Securities.

 

Each Holder participating in the Registered Exchange
Offer shall be required to represent to the Company that at the time of the
consummation of the Registered Exchange Offer (i) any Exchange Securities
received by such Holder will be acquired in the ordinary course of business,
(ii) such Holder will have no arrangements or understanding with any
person to participate in the distribution of the Securities or the Exchange
Securities within the meaning of the Securities Act, (iii) such Holder is
not an “affiliate,” as defined in Rule 405 of the Securities Act, of the
Company or if it is an affiliate, such Holder will comply with the registration
and prospectus delivery requirements of the Securities Act to the extent
applicable, (iv) if such Holder is not a broker-dealer, that it is not
engaged in, and does not intend to engage in, the distribution of the Exchange
Securities and (v) if such Holder is a broker-dealer, that it will receive

 

3

 

Exchange Securities for its own account in exchange for Initial
Securities that were acquired as a result of market-making activities or other
trading activities and that it will be required to acknowledge that it will
deliver a prospectus in connection with any resale of such Exchange Securities.

 

Notwithstanding any other provisions hereof, the
Company will ensure that (i) any Exchange Offer Registration Statement and
any amendment thereto and any prospectus forming part thereof and any
supplement thereto complies in all material respects with the Securities Act
and the rules and regulations thereunder, (ii) any Exchange Offer
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an 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 and (iii) any prospectus forming part of any
Exchange Offer Registration Statement, and any supplement to such prospectus,
does not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

 

If following the date hereof there has been announced
a change in Commission policy with respect to exchange offers that in the
reasonable opinion of counsel to the Company raises a substantial question as
to whether the Registered Exchange Offer is permitted by applicable federal law,
the Company will seek a no-action letter or other favorable decision from the
Commission allowing the Company to consummate the Registered Exchange
Offer.  The Company will pursue the
issuance of such a decision to the Commission staff level.  In connection with the foregoing, the
Company will take all such other actions as may be requested by the Commission
or otherwise required in connection with the issuance of such decision,
including without limitation (i) participating in telephonic conferences
with the Commission, (ii) delivering to the Commission staff an analysis
prepared by counsel to the Company setting forth the legal bases, if any, upon
which such counsel has concluded that the Registered Exchange Offer should be
permitted and (iii) diligently pursuing a resolution (which need not be
favorable) by the Commission staff.

 

2.  Shelf
Registration.  If, (i)
because of any change in law or in applicable interpretations thereof by the
staff of the Commission, the Company is not permitted to effect a Registered
Exchange Offer, as contemplated by Section 1 hereof, (ii) the
Registered Exchange Offer is not consummated by the 180th day after the Closing
Date, (iii) any Initial Purchaser so requests with respect to the Initial
Securities (or the Private Exchange Securities) not eligible to be exchanged
for Exchange Securities in the Registered Exchange Offer and held by it
following consummation of the Registered Exchange Offer or (iv) any Holder
(other than an Exchanging Dealer) is not eligible to participate in the
Registered Exchange Offer or, in the case of any Holder (other than an
Exchanging Dealer) that participates in the Registered Exchange Offer, such
Holder does not receive freely tradeable Exchange Securities on the date of the
exchange and any such Holder so requests, the Company shall take the following
actions (the date on which any of the conditions described in the foregoing
clauses (i) through (iv) occur, including in the case of
clauses (iii) or (iv) the receipt of the required notice, being a “Trigger Date”):

 

(a)  The Company shall promptly  (but in no event more than 60 days
after the Trigger Date (such 60th day being a “Filing Deadline”)) file with
the Commission and thereafter use its best efforts to cause to be declared
effective no later than 90 days after the Trigger Date (such 90th day being an
“Effectiveness
Deadline”) a registration statement (the “Shelf Registration  Statement”
and, together with the Exchange Offer Registration Statement, a “Registration
Statement”)
on an appropriate form under the Securities Act relating to the offer and sale
of the Transfer Restricted Securities by the Holders thereof from time to time
in accordance with the methods of distribution set forth in the Shelf
Registration Statement and Rule 415 under the Securities Act (hereinafter,
the “Shelf
Registration”); provided, however, that no Holder
(other than an Initial Purchaser) shall be entitled to have the Securities held
by it covered by such Shelf Registration Statement unless such Holder agrees in
writing to be bound by all the provisions of this Agreement applicable to such
Holder.

 

4

 

(b)  The Company shall use its best efforts to
keep the Shelf Registration Statement continuously effective in order to permit
the prospectus included therein to be lawfully delivered by the Holders of the
relevant Securities, for a period of two years (or for such longer period if
extended pursuant to Section 3(j) below) from the date of its
effectiveness or such shorter period that will terminate when all the
Securities covered by the Shelf Registration Statement (i) have been sold
pursuant thereto or (ii) are no longer restricted securities (as defined in
Rule 144 under the Securities Act, or any successor rule thereof).  The Company shall be deemed not to have used
its best efforts to keep the Shelf Registration Statement effective during the
requisite period if it voluntarily takes any action that would result in
Holders of Securities covered thereby not being able to offer and sell such
Securities during that period, unless such action is required by applicable
law.

 

(c)  Notwithstanding any other provisions of this
Agreement to the contrary, the Company shall cause the Shelf Registration
Statement and the related prospectus and any amendment or supplement thereto,
as of the effective date of the Shelf Registration Statement, amendment or
supplement, (i) to comply in all material respects with the applicable
requirements of the Securities Act and the rules and regulations of the
Commission and (ii) not to contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

 

3.  Registration
Procedures.  In connection
with any Shelf Registration contemplated by Section 2 hereof and, to the
extent applicable, any Registered Exchange Offer contemplated by Section 1
hereof, the following provisions shall apply:

 

(a)  The Company shall (i) furnish to each
Initial Purchaser, prior to the filing thereof with the Commission, a copy of
the Registration Statement and each amendment thereof and each supplement, if
any, to the prospectus included therein and, in the event that an Initial
Purchaser (with respect to any portion of an unsold allotment from the original
offering) is participating in the Registered Exchange Offer or the Shelf
Registration Statement, the Company shall use its best efforts to reflect in
each such document, when so filed with the Commission, such comments as such
Initial Purchaser reasonably may propose; (ii) include the information set
forth in Annex A hereto on the cover, in Annex B hereto in the “Exchange Offer
Procedures” section and the “Purpose of the Exchange Offer” section and in
Annex C hereto in the “Plan of Distribution” section of the prospectus forming
a part of the Exchange Offer Registration Statement and include the information
set forth in Annex D hereto in the Letter of Transmittal delivered pursuant to
the Registered Exchange Offer; (iii) if requested by an Initial Purchaser,
include the information required by Items 507 or 508 of Regulation S-K under
the Securities Act, as applicable, in the prospectus forming a part of the Exchange
Offer Registration Statement; (iv) include within the prospectus contained
in the Exchange Offer Registration Statement a section entitled “Plan of
Distribution,” reasonably acceptable to the Initial Purchasers, which shall
contain a summary statement of the positions taken or policies made by the
staff of the Commission with respect to the potential “underwriter” status of
any broker-dealer that is the beneficial owner (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of
Exchange Securities received by such broker-dealer in the Registered Exchange
Offer (a “Participating
Broker-Dealer”), whether such positions or policies have been
publicly disseminated by the staff of the Commission or such positions or
policies, in the reasonable judgment of the Initial Purchasers based upon
advice of counsel (which may be in-house counsel), represent the prevailing
views of the staff of the Commission; and (v) in the case of a Shelf
Registration Statement, include the names of the Holders who propose to sell
Securities pursuant to the Shelf Registration Statement as selling
securityholders.

 

5

 

(b)  The Company shall give written notice to the
Initial Purchasers, the Holders of the Securities and any Participating
Broker-Dealer from whom the Company has received prior written notice that it
will be a Participating Broker-Dealer in the Registered Exchange Offer (which
notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an
instruction to suspend the use of the prospectus until the requisite changes
have been made):

 

(i) when the Registration
Statement or any amendment thereto has been filed with the Commission and when
the Registration Statement or any post-effective amendment thereto has become
effective;

 

(ii) of any request by
the Commission for amendments or supplements to the Registration Statement or
the prospectus included therein or for additional information;

 

(iii) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceedings for that purpose;

 

(iv) of the receipt by
the Company or its legal counsel of any notification with respect to the
suspension of the qualification of the Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; and

 

(v) of the happening of
any event that requires the Company to make changes in the Registration
Statement or the prospectus in order that the Registration Statement or the
prospectus do not contain an untrue statement of a material fact nor omit to
state a material fact required to be stated therein or necessary to make the
statements therein (in the case of the prospectus, in light of the
circumstances under which they were made) not misleading.

 

(c)  The Company shall make every reasonable
effort to obtain the withdrawal at the earliest possible time, of any order
suspending the effectiveness of the Registration Statement.

 

(d)  The Company shall furnish to each Holder of
Securities included within the coverage of the Shelf Registration, without
charge, at least one copy of the Shelf Registration Statement and any
post-effective amendment thereto, including financial statements and schedules,
and, if the Holder so requests in writing, all exhibits thereto (including
those, if any, incorporated by reference).

 

(e) 
The Company shall deliver to each Exchanging Dealer and each Initial
Purchaser, and to any other Holder who so requests, without charge, at least
one copy of the Exchange Offer Registration Statement and any post-effective
amendment thereto, including financial statements and schedules, and, if any
Initial Purchaser or any such Holder requests, all exhibits thereto (including
those incorporated by reference).

 

(f)  The Company shall, during the Shelf
Registration Period, deliver to each Holder of Securities included within the
coverage of the Shelf Registration, without charge, as many copies of the
prospectus (including each preliminary prospectus) included in the Shelf
Registration Statement and any amendment or supplement thereto as such person
may reasonably request.  The Company
consents, subject to the provisions of this Agreement, to the use of the
prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

 

6

 

(g)  The Company shall deliver to each Initial
Purchaser, any Exchanging Dealer, any Participating Broker-Dealer and such
other persons required to deliver a prospectus following the Registered
Exchange Offer, without charge, as many copies of the final prospectus included
in the Exchange Offer Registration Statement and any amendment or supplement
thereto as such persons may reasonably request.  The Company consents, subject to the provisions of this
Agreement, to the use of the prospectus or any amendment or supplement thereto
by any Initial Purchaser, if necessary, any Participating Broker-Dealer and
such other persons required to deliver a prospectus following the Registered
Exchange Offer in connection with the offering and sale of the Exchange
Securities covered by the prospectus, or any amendment or supplement thereto,
included in such Exchange Offer Registration Statement.

 

(h)  Prior to any public offering of the
Securities pursuant to any Registration Statement the Company shall register or
qualify or cooperate with the Holders of the Securities included therein and
their respective counsel in connection with the registration or qualification
of the Securities for offer and sale under the securities or “blue sky” laws of
such states of the United States as any Holder of the Securities reasonably
requests in writing and do any and all other acts or things necessary or
advisable to enable the offer and sale in such jurisdictions of the Securities
covered by such Registration Statement; provided, however, that
the Company shall not be required to (i) qualify generally to do business
in any jurisdiction where it is not then so qualified or (ii) take any
action which would subject it to general service of process or to taxation in
any jurisdiction where it is not then so subject.

 

(i)  The Company shall cooperate with the Holders
of the Securities to facilitate the timely preparation and delivery of
certificates representing the Securities to be sold pursuant to any
Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders may request a
reasonable period of time prior to sales of the Securities pursuant to such
Registration Statement.

 

(j)  Upon the occurrence of any event
contemplated by paragraphs (ii) through (v) of Section 3(b) above
during the period for which the Company is required to maintain an effective
Registration Statement, the Company shall promptly prepare and file a post-effective
amendment to the Registration Statement or a supplement to the related
prospectus and any other required document so that, as thereafter delivered to
Holders of the Securities or purchasers of Securities, the prospectus will not
contain an untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.  If the Company notifies the Initial
Purchasers, the Holders of the Securities and any known Participating
Broker-Dealer in accordance with paragraphs (ii) through (v) of
Section 3(b) above to suspend the use of the prospectus until the
requisite changes to the prospectus have been made, then the Initial Purchasers,
the Holders of the Securities and any such Participating Broker-Dealers shall
suspend use of such prospectus, and the period of effectiveness of the Shelf
Registration Statement provided for in Section 2(b) above and the Exchange
Offer Registration Statement provided for in Section 1 above shall each be
extended by the number of days from and including the date of the giving
of such notice to and including the date when the Initial Purchasers, the
Holders of the Securities and any known Participating Broker-Dealer shall have
received such amended or supplemented prospectus pursuant to this
Section 3(j).

 

(k)  Not later than the effective date of the
applicable Registration Statement, the Company will provide a CUSIP number for
the Initial Securities, the Exchange Securities or the Private Exchange
Securities, as the case may be, and provide the applicable trustee with printed
certificates for the Initial Securities, the Exchange Securities or the Private
Exchange Securities, as the case may be, in a form eligible for deposit with
The Depository Trust Company.

 

7

 

(l)  The Company will comply with all rules and
regulations of the Commission to the extent and so long as they are applicable
to the Registered Exchange Offer or the Shelf Registration and will make
generally available to its security holders (or otherwise provide in accordance
with Section 11(a) of the Securities Act) an earnings statement satisfying
the provisions of Section 11(a) of the Securities Act, as soon as
practicable after the end of a 12-month period beginning with the first month
of the Company’s first fiscal quarter commencing after the effective date of
the Registration Statement, which statement shall cover such 12-month period.

 

(m)  The Company shall cause the Indenture to be
qualified under the Trust Indenture Act of 1939, as amended, in a timely manner
and containing such changes, if any, as shall be necessary for such
qualification.  In the event that such
qualification would require the appointment of a new trustee under the
Indenture, the Company shall appoint a new trustee thereunder pursuant to the
applicable provisions of the Indenture.

 

(n)  The Company may require each Holder of
Securities to be sold pursuant to the Shelf Registration Statement to furnish
to the Company such information regarding the Holder and the distribution of
the Securities as the Company may from time to time reasonably require for
inclusion in the Shelf Registration Statement, and the Company may exclude from
such registration the Securities of any Holder that unreasonably fails to
furnish such information within a reasonable time after receiving such request.

 

(o)  The Company shall enter into such customary
agreements (including, if requested, an underwriting agreement in customary
form) and take all such other action, if any, as any Holder of the Securities
shall reasonably request in order to facilitate the disposition of the
Securities pursuant to any Shelf Registration.

 

(p)  In the case of any Shelf Registration, the
Company shall (i) make reasonably available for inspection by the Holders
of the Securities, any underwriter participating in any disposition pursuant to
the Shelf Registration Statement and any attorney, accountant or other agent retained
by the Holders of the Securities or any such underwriter all relevant financial
and other records, pertinent corporate documents and properties of the Company
and (ii) cause the Company’s officers, directors, employees, accountants
and auditors to supply all relevant information reasonably requested by the
Holders of the Securities or any such underwriter, attorney, accountant or
agent in connection with the Shelf Registration Statement, in each case, as
shall be reasonably necessary to enable such persons, to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act; provided,
however, that the foregoing inspection and information gathering shall
be coordinated on behalf of the Initial Purchasers by you and on behalf of the
other parties, by one counsel designated by and on behalf of such other parties
as described in Section 4 hereof.

 

(q)  In the case of any Shelf Registration, the
Company, if requested by any Holder of Securities covered thereby, shall cause
(i) its counsel to deliver an opinion and updates thereof relating to the
Securities in customary form addressed to such Holders and the managing
underwriters, if any, thereof and dated, in the case of the initial opinion,
the effective date of such Shelf Registration Statement (it being agreed that
the matters to be covered by such opinion shall include, without limitation,
the due incorporation and good standing of the Company and its subsidiaries;
the qualification of the Company and its subsidiaries to transact business as
foreign corporations; the due authorization, execution and delivery of the
relevant agreement of the type referred to in Section 3(o) hereof; the due
authorization, execution, authentication and issuance, and the validity and
enforceability, of the applicable Securities; the absence of material legal or
governmental proceedings involving the Company and its subsidiaries; the
absence of governmental approvals required to be obtained in connection with
the Shelf Registration

 

8

 

Statement, the offering and sale of the applicable
Securities, or any agreement of the type referred to in Section 3(o)
hereof; the compliance as to form of such Shelf Registration Statement and any
documents incorporated by reference therein and of the Indenture with the
requirements of the Securities Act and the Trust Indenture Act, respectively;
and, as of the date of the opinion and as of the effective date of the Shelf
Registration Statement or most recent post-effective amendment thereto, as the
case may be, the absence from such Shelf Registration Statement and the
prospectus included therein, as then amended or supplemented, and from any
documents incorporated by reference therein of an untrue statement of a material
fact or the omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading (in the case
of any such documents, in the light of the circumstances existing at the time
that such documents were filed with the Commission under the Exchange Act));
(ii) its officers to execute and deliver all customary documents and
certificates and updates thereof requested by any underwriters of the
applicable Securities and (iii) its independent public accountants to
provide to the selling Holders of the applicable Securities and any underwriter
therefor a comfort letter in customary form and covering matters of the type
customarily covered in comfort letters in connection with primary underwritten
offerings, subject to receipt of appropriate documentation as contemplated, and
only if permitted, by Statement of Auditing Standards No. 72.

 

(r)  In the case of the Registered Exchange
Offer, if requested by any Initial Purchaser or any known Participating
Broker-Dealer, the Company shall cause (i) its counsel to deliver to such
Initial Purchaser or such Participating Broker-Dealer a signed opinion in the
form set forth in Section 6(e) of the Purchase Agreement with such changes
as are customary in connection with the preparation of a Registration Statement
and (ii) its independent public accountants to deliver to such Initial
Purchaser or such Participating Broker-Dealer a comfort letter, in customary
form, meeting the requirements as to the substance thereof as set forth in
Section 6(i) of the Purchase Agreement, with appropriate date changes.

 

(s)   If a Registered Exchange Offer or a Private
Exchange is to be consummated, upon delivery of the Initial Securities by
Holders to the Company (or to such other Person as directed by the Company) in
exchange for the Exchange Securities or the Private Exchange Securities, as the
case may be, the Company shall mark, or caused to be marked, on the Initial
Securities so exchanged that such Initial Securities are being canceled in
exchange for the Exchange Securities or the Private Exchange Securities, as the
case may be; in no event shall the Initial Securities be marked as paid or
otherwise satisfied.

 

(t)  The Company will use its best efforts to
(a) if the Initial Securities have been rated prior to the initial sale of
such Initial Securities, confirm such ratings will apply to the Securities
covered by a Registration Statement, or (b) if the Initial Securities were
not previously rated, cause the Securities covered by a Registration Statement
to be rated with the appropriate rating agencies, if so requested by Holders of
a majority in aggregate principal amount of Securities covered by such
Registration Statement, or by the managing underwriters, if any.

 

(u)  In the event that any broker-dealer
registered under the Exchange Act shall underwrite any Securities or
participate as a member of an underwriting syndicate or selling group or
“assist in the distribution” (within the meaning of the Conduct Rules (the “Rules”)
of the National Association of Securities Dealers, Inc. (“NASD”)) thereof, whether as a
Holder of such Securities or as an underwriter, a placement or sales agent or a
broker or dealer in respect thereof, or otherwise, the Company will assist such
broker-dealer in complying with the requirements of such Rules, including,
without limitation, by (i) if such Rules, including Rule 2720, shall
so require, engaging a “qualified independent underwriter” (as defined in
Rule 2720) to participate in the preparation of the Registration Statement
relating to such Securities, to exercise usual standards of due diligence in
respect thereto and, if any portion of the offering contemplated by

 

9

 

such Registration Statement is an underwritten
offering or is made through a placement or sales agent, to recommend the yield
of such Securities, (ii) indemnifying any such qualified independent
underwriter to the extent of the indemnification of underwriters provided in
Section 5 hereof and (iii) providing such information to such
broker-dealer as may be required in order for such broker-dealer to comply with
the requirements of the Rules.

 

(v)  The Company shall use its best efforts to
take all other steps necessary to effect the registration of the Securities
covered by a Registration Statement contemplated hereby.

 

4.  Registration
Expenses.  (a) All expenses
incident to the Company’s performance of and compliance with this Agreement
will be borne by the Company, regardless of whether a Registration Statement is
ever filed or becomes effective, including without limitation;

 

(i)  all registration and filing fees and
expenses;

 

(ii) all fees and
expenses of compliance with federal securities and state “blue sky” or
securities laws;

 

(iii) all expenses
of printing (including printing certificates for the Securities to be issued in
the Registered Exchange Offer and the Private Exchange and printing of
Prospectuses), messenger and delivery services and telephone;

 

(iv) all fees and
disbursements of counsel for the Company;

 

(v) all application
and filing fees in connection with listing the Exchange Securities on a
national securities exchange or automated quotation system pursuant to the
requirements hereof; and

 

(vi) all fees and
disbursements of independent certified public accountants of the Company
(including the expenses of any special audit and comfort letters required by or
incident to such performance).

 

The Company will bear its internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expenses of any annual audit and the fees and
expenses of any person, including special experts, retained by the Company.

 

(b)  In
connection with any Registration Statement required by this Agreement, the
Company will reimburse the Initial Purchasers and the Holders of Transfer
Restricted Securities who are tendering Initial Securities in the Registered
Exchange Offer and/or selling or reselling Securities pursuant to the “Plan of
Distribution” contained in the Exchange Offer Registration Statement or the
Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be chosen by the Holders
of a majority in principal amount of the Transfer Restricted Securities for
whose benefit such Registration Statement is being prepared.

 

5.  Indemnification.  (a) 
The Company agrees to indemnify and hold harmless each Holder of the
Securities, any Participating Broker-Dealer and each person, if any, who
controls such Holder or such Participating Broker-Dealer within the meaning of
the Securities Act or the Exchange Act (each Holder, any Participating
Broker-Dealer and such controlling persons are referred to collectively as the
“Indemnified
Parties”)
from and against any losses, claims, damages or liabilities, joint or several,
or any actions in respect thereof (including, but not limited to, any losses,
claims, damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact

 

10

 

contained in a Registration Statement or prospectus or in any amendment
or supplement thereto or in any preliminary prospectus relating to a Shelf
Registration, or arise out of, or are based upon, the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and shall reimburse,
as incurred, the Indemnified Parties for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action in respect thereof; provided, however,
that (i) the Company shall not be liable in any such case to the extent
that such loss, claim, damage or liability arises out of or is based upon any
untrue statement or alleged untrue statement or omission or alleged omission
made in a Registration Statement or prospectus or in any amendment or
supplement thereto or in any preliminary prospectus relating to a Shelf
Registration in reliance upon and in conformity with written information
pertaining to such Holder and furnished to the Company by or on behalf of such
Holder specifically for inclusion therein and (ii) with respect to any
untrue statement or omission or alleged untrue statement or omission made in
any preliminary prospectus relating to a Shelf Registration Statement, the
indemnity agreement contained in this subsection (a) shall not inure to
the benefit of any Holder or Participating Broker-Dealer from whom the person
asserting any such losses, claims, damages or liabilities purchased the
Securities concerned, to the extent that a prospectus relating to such
Securities was required to be delivered by such Holder or Participating
Broker-Dealer under the Securities Act in connection with such purchase and any
such loss, claim, damage or liability of such Holder or Participating
Broker-Dealer results from the fact that there was not sent or given to such
person, at or prior to the written confirmation of the sale of such Securities
to such person, a copy of the final prospectus if the Company had previously
furnished copies thereof to such Holder or Participating Broker-Dealer; provided
further, however, that this indemnity agreement will be in
addition to any liability which the Company may otherwise have to such
Indemnified Party.  The Company shall
also indemnify underwriters, their officers and directors and each person who
controls such underwriters within the meaning of the Securities Act or the
Exchange Act to the same extent as provided above with respect to the
indemnification of the Holders of the Securities if requested by such Holders.

 

(b)  Each
Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company and each person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act from and against any
losses, claims, damages or liabilities or any actions in respect thereof, to
which the Company or any such controlling person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact necessary to make the statements therein not misleading, but in
each case only to the extent that the untrue statement or omission or alleged
untrue statement or omission was made in reliance upon and in conformity with
written information pertaining to such Holder and furnished to the Company by
or on behalf of such Holder specifically for inclusion therein; and, subject to
the limitation set forth immediately preceding this clause, shall reimburse, as
incurred, the Company for any legal or other expenses reasonably incurred by
the Company or any such controlling person in connection with investigating or
defending any loss, claim, damage, liability or action in respect thereof.  This indemnity agreement will be in addition
to any liability which such Holder may otherwise have to the Company or any of
its controlling persons.

 

(c)  Promptly
after receipt by an indemnified party under this Section 5 of notice of
the commencement of any action or proceeding (including a governmental investigation),
such indemnified party will, if a claim in respect thereof is to be made
against the indemnifying party under this Section 5, notify the
indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability
that it may have under subsection (a) or (b) above except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided further that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under subsection  (a) or (b) above.    In
case any such action is brought against any indemnified party, and it notifies
the

 

11

 

indemnifying party of the commencement thereof, the indemnifying party
will be entitled to participate therein and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party
(who shall not, except with the consent of the indemnified party, be counsel to
the indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof.  No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened action in respect of
which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party unless such settlement (i)
includes an unconditional release of such indemnified party from all liability
on any claims that are the subject matter of such action, and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

 

(d)  If the
indemnification provided for in this Section 5 is unavailable or insufficient
to hold harmless an indemnified party under subsections (a) or (b) above, then
each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to in subsection (a) or (b) above
(i) in such proportion as is appropriate to reflect the relative benefits
received by the indemnifying party or parties on the one hand and the
indemnified party on the other from the exchange of the Securities, pursuant to
the Registered Exchange Offer, 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 clause (i) above but also the relative fault of the indemnifying
party or parties on the one hand and the indemnified party on the other in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof) as well as any
other relevant equitable considerations. 
The relative fault of the parties shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or such Holder
or such other indemnified party, as the case may be, on the other, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. 
The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this
subsection (d).  Notwithstanding
any other provision of this Section 5(d), the Holders of the Securities
shall not be required to contribute any amount in excess of the amount by which
the net proceeds received by such Holders from the sale of the Securities
pursuant to a Registration Statement exceeds the amount of damages which such
Holders have otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities 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 such indemnified party within
the meaning of the Securities Act or the Exchange Act shall have the same rights
to contribution as such indemnified party and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act shall
have the same rights to contribution as the Company.

 

(e)  The
agreements contained in this Section 5 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in full force
and effect, regardless of any termination or cancellation of this Agreement or
any investigation made by or on behalf of any indemnified party.

 

6.  Additional
Interest Under Certain Circumstances.  (a)  Additional Interest (the “Additional Interest”) with
respect to the Securities shall be assessed as follows if any of the following
events occur (each such event in clauses (i) through (iv) below being
herein called a “Registration Default”):

 

12

 

(i)                                     any
Registration Statement required by this Agreement is not filed with the
Commission on or prior to the applicable Filing Deadline;

 

(ii)                                  any
Registration Statement required by this Agreement is  not declared effective by the Commission on or prior to the
applicable Effectiveness Deadline;

 

(iii)                               the
Registered Exchange Offer has not been consummated on or prior to the
Consummation Deadline; or

 

(iv)                              any
Registration Statement required by this Agreement has been declared effective
by the Commission but (A) such Registration Statement thereafter ceases to
be effective or (B) such Registration Statement or the related prospectus
ceases to be usable in connection with resales of Transfer Restricted
Securities during the periods specified herein because either (1) any
event occurs as a result of which the related prospectus forming part of such
Registration Statement would include any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein in the
light of the circumstances under which they were made not misleading, or
(2) it shall be necessary to amend such Registration Statement or
supplement the related prospectus, to comply with the Securities Act or the
Exchange Act or the respective rules thereunder.

 

Each of the foregoing will constitute a Registration Default whatever
the reason for any such event and whether it is voluntary or involuntary or is
beyond the control of the Company or pursuant to operation of law or as a
result of any action or inaction by the Commission.

 

Additional Interest shall accrue on the Securities
over and above the interest set forth in the title of the Securities from and
including the date on which any such Registration Default shall occur to but
excluding the date on which all such Registration Defaults have been cured, in
an amount equal to $.05 per week per $1,000 in principal amount of Transfer
Restricted Securities for each week or portion thereof that the Registration
Default continues for the first 90-day period immediately following the
occurrence of such Registration Default. 
The amount of Additional Interest shall increase by an additional $.05
per week per $1,000 in principal amount of Transfer Restricted Securities with
respect to each subsequent 90-day period until all Registration Defaults have
been cured, up to a maximum amount of additional interest of $.50 per week per
$1,000 in principal amount of Transfer Restricted Securities; provided
that the Company shall in no event be required to pay Additional Interest for
more that one Registration Default at any given time.

 

(b)  A
Registration Default referred to in Section 6(a)(iv) hereof shall be
deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events, with respect
to the Company that would need to be described in such Shelf Registration
Statement or the related prospectus and (ii) in the case of clause (y), the
Company is proceeding promptly and in good faith to amend or supplement such
Shelf Registration Statement and related prospectus to describe such events; provided,
however, that in any case if such Registration Default occurs for a
continuous period in excess of 30 days, Additional Interest shall be
payable in accordance with the above paragraph from the day such
Registration Default occurs until such Registration Default is cured.

 

(c)  “Transfer
Restricted Securities” means each Security until (i) the date
on which such Security has been exchanged by a person other than a
broker-dealer for a freely transferable Exchange Security in the Registered
Exchange Offer, (ii) following the exchange by a broker-dealer in the
Registered Exchange Offer of an Initial Security for an Exchange Note, the date
on which such Exchange Note is sold

 

13

 

to a purchaser who receives from such broker-dealer on or prior to the
date of such sale a copy of the prospectus contained in the Exchange Offer
Registration Statement, (iii) the date on which such Security has been
effectively registered under the Securities Act and disposed of in accordance
with the Shelf Registration Statement or (iv) the date on which such
Security is distributed to the public pursuant to Rule 144 under the
Securities Act or is saleable pursuant to Rule 144(k) under the Securities
Act.

 

7.  Rules 144
and 144A.  The Company shall
use its best efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner and, if at any time the
Company is not required to file such reports, it will, upon the request of any
Holder of Securities, make publicly available other information so long as
necessary to permit sales of their securities pursuant to Rules 144 and
144A.  The Company covenants that it
will take such further action as any Holder of Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including the
requirements of Rule 144A(d)(4)). 
The Company will provide a copy of this Agreement to prospective
purchasers of Initial Securities identified to the Company by the Initial
Purchasers upon request.  Upon the
request of any Holder of Initial Securities, the Company shall deliver to such
Holder a written statement as to whether it has complied with such
requirements.  Notwithstanding the
foregoing, nothing in this Section 7 shall be deemed to require the
Company to register any of its securities pursuant to the Exchange Act.

 

8.  Underwritten
Registrations.  If any of the
Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering (“Managing Underwriters”) will
be selected by the Holders of a majority in aggregate principal amount of such
Transfer Restricted Securities to be included in such offering.

 

No person may participate in any underwritten
registration hereunder unless such person (i) agrees to sell such person’s
Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve
such arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

 

9.  Miscellaneous.

 

(a)  Remedies.  The Company acknowledges and agrees that any
failure by the Company to comply with its obligations under Section 1 and
2 hereof may result in material irreparable injury to the Initial Purchasers or
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, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Company’s obligations
under Sections 1 and 2 hereof.  The
Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

 

(b)  No
Inconsistent Agreements.  The
Company will not on or after the date of this Agreement enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders 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 Company’s securities under any
agreement in effect on the date hereof.

 

(c)  Amendments
and Waivers.  The provisions
of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, except by
the Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement,
waiver or consents.

 

14

 

(d)  Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
first-class mail, facsimile transmission, or air courier which guarantees
overnight delivery:

 

(1)  if to a Holder of the Securities, at the
most current address given by such Holder to the Company.

 

(2)  if to the
Initial Purchasers;

 

Credit Suisse First Boston LLC

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.:  (212)
325-8278

Attention: 
Transactions Advisory Group

 

with a copy to:

 

Latham & Watkins LLP

885 Third Avenue

New York, NY 10022

Fax No.: (212) 751-4864

Attn: Peter M. Labonski

 

 

(3)           if
to the Company, at its address as follows:

 

Nextel Partners, Inc.

400 Carillon Point

Kirkland, WA 98033

Fax No.: (425) 828-8098

Attention: Donald Manning, Esq.

with a copy to:

 

Summit Law Group, PLLC

315 Fifth Avenue, S., Suite 1000

Seattle, WA 98104

Fax No.: (206) 676-7001

Attention: Laura A. Bertin

 

All such notices and communications shall be deemed to
have been duly given:  at the time
delivered by hand, if personally delivered; three business days after
being deposited in the mail, postage prepaid, if mailed; when receipt is
acknowledged by recipient’s facsimile machine operator, if sent by facsimile
transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

 

(e) Third Party Beneficiaries.  The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, 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 may deem such
enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder.

 

(f)  Successors
and Assigns.  This Agreement
shall be binding upon the Company and its successors and assigns.

 

15

 

(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.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAWS.

 

(j)  Severability.  If 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.

 

(k)  Securities
Held by the Company. 
Whenever the consent or approval of Holders of a specified percentage of
principal amount of Securities is required hereunder, Securities held by the
Company or its affiliates (other than subsequent Holders of Securities if such
subsequent Holders are deemed to be affiliates solely by reason of their
holdings of such Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

 

16

 

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to the Company a
counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement among the several Initial Purchasers and the
Company in accordance with its terms.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Nextel Partners, Inc.

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

 

CREDIT SUISSE FIRST BOSTON LLC

MORGAN STANLEY & CO. INCORPORATED

UBS SECURITIES LLC

LEGG MASON WOOD WALKER, INCORPORATED

THOMAS WEISEL PARTNERS LLC

 

	
  By:  CREDIT
  SUISSE FIRST BOSTON LLC

  	
   

  	 

	
   

  	
   

  	 

	
  by

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	 

	
   

  	
  Title:

  	
   

  	 

	
   

  	
   

  	 

	
  By:  MORGAN
  STANLEY & CO. INCORPORATED

  	
   

  	 

	
   

  	
   

  	 

	
  by

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
									

 

17

 

ANNEX A

 

Each broker-dealer that
receives Exchange Securities for its own account pursuant to the Exchange Offer
must acknowledge that it will deliver a prospectus in connection with any
resale of such Exchange Securities.  The
Letter of Transmittal states that by so acknowledging and by delivering a prospectus,
a broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.  This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Securities received
in exchange for Initial Securities where such Initial Securities were acquired
by such broker-dealer as a result of market-making activities or other trading
activities.  The Company has agreed
that, for a period of 180 days after the Expiration Date (as defined
herein), it will make this Prospectus available to any broker-dealer for use in
connection with any such resale.  See
“Plan of Distribution.”

 

18

 

ANNEX B

 

Each broker-dealer that
receives Exchange Securities for its own account in exchange for Initial
Securities, where such Initial Securities were acquired by such broker-dealer
as a result of market-making activities or other trading activities, must
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities.  See “Plan of
Distribution.”

 

19

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each broker-dealer that
receives Exchange Securities for its own account pursuant to the Exchange Offer
must acknowledge that it will deliver a prospectus in connection with any
resale of such Exchange Securities. 
This Prospectus, as it may be amended or supplemented from time to time,
may be used by a broker-dealer in connection with resales of Exchange
Securities received in exchange for Initial Securities where such Initial
Securities were acquired as a result of market-making activities or other
trading activities.  The Company has
agreed that, for a period of 180 days after the Expiration Date, it will
make this prospectus, as amended or supplemented, available to any
broker-dealer for use in connection with any such resale.  In addition, until                    ,
200 , all dealers effecting transactions in the Exchange Securities may be
required to deliver a prospectus.(1)

 

The Company will not
receive any proceeds from any sale of Exchange Securities by
broker-dealers.  Exchange Securities
received by broker-dealers for their own account pursuant to the Exchange Offer
may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of
options on the Exchange Securities or a combination of such methods of resale,
at market prices prevailing at the time of resale, at prices related to such
prevailing market prices or negotiated prices. 
Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities.  Any broker-dealer that
resells Exchange Securities that were received by it for its own account
pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit on any such resale of
Exchange Securities and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities
Act.  The Letter of Transmittal states
that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.

 

For a period of
180 days after the Expiration Date the Company will promptly send
additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any broker-dealer that requests such documents in the Letter of
Transmittal.  The Company has agreed to
pay all expenses incident to the Exchange Offer (including the expenses of one
counsel for the Holders of the Securities) other than commissions or
concessions of any brokers or dealers and will indemnify the Holders of the
Securities (including any broker-dealers) against certain liabilities,
including liabilities under the Securities Act.

 

(1)                                  In
addition, the legend required by Item 502(e) of Regulation S-K will appear on
the back cover page of the Exchange Offer prospectus.

 

20

 

ANNEX D

 

o            CHECK
HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE
PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

Name:                                                                                 

Address:                                                                              

 

 

If the undersigned is not a broker-dealer, the undersigned represents
that it is not engaged in, and does not intend to engage in, a distribution of
Exchange Securities.  If the undersigned
is a broker-dealer that will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities, it acknowledges that it will deliver a
prospectus in connection with any resale of such Exchange Securities; however,
by so acknowledging and by delivering a prospectus, the undersigned will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.

 

21Exhibit 10.70

 

EXECUTION COPY

 

 

                `

NEXTEL PARTNERS, INC.

 

 

THE BANK OF NEW YORK,

as Trustee

 

 

 

INDENTURE

 

 

Dated as of

 

August 6, 2003

 

 

11⁄2% Convertible
Senior Notes Due 2008

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  
	
   

  
	
  DEFINITIONS

  
	
   

  
	
  Section 1.01.  Definitions

  
	
   

  
	
  ARTICLE 2

  
	
   

  
	
  ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

  
	
   

  
	
  Section 2.01.  Designation Amount and Issue of Notes

  
	
  Section
  2.02.  Form of Notes

  
	
  Section
  2.03.  Date and Denomination of Notes;
  Payments of Interest

  
	
  Section
  2.04.  Execution of Notes

  
	
  Section
  2.05.  Exchange and Registration of
  Transfer of Notes; Restrictions on Transfer

  
	
  Section
  2.06.  Mutilated, Destroyed, Lost or
  Stolen Notes

  
	
  Section
  2.07.  Temporary Notes

  
	
  Section
  2.08.  Cancellation of Notes

  
	
  Section
  2.09.  CUSIP Numbers

  
	
   

  
	
  ARTICLE 3

  
	
   

  
	
  REDEMPTION AND REPURCHASE OF NOTES

  
	
   

  
	
  Section
  3.01.  Redemption or Repurchase of Notes

  
	
  Section
  3.02.  [Intentionally left blank]

  
	
  Section
  3.03.  [Intentionally left blank]

  
	
  Section
  3.04.  [Intentionally left blank]

  
	
  Section
  3.05.  Repurchase at Option of Holders
  upon a Fundamental Change

  
	
  Section 3.06.  Repurchase of Notes by the Company at Option of the Holder

  
	
   

  
	
  ARTICLE 4

  
	
   

  
	
  PARTICULAR COVENANTS OF THE COMPANY

  
	
   

  
	
  Section
  4.01.  Payment of Principal and Interest

  
	
  Section
  4.02.  Maintenance of Office or Agency

  
	
  Section
  4.03.  Appointments to Fill Vacancies in
  Trustee’s Office

  
	
  Section
  4.04.  Provisions as to Paying Agent

  
	
  Section
  4.05.  Existence

  
	
  Section
  4.06.  Maintenance of Properties

  

 

 

	
  Section
  4.07.  Payment of Taxes and Other Claims

  
	
  Section
  4.08.  Rule 144A Information Requirement

  
	
  Section
  4.09.  Stay, Extension and Usury Laws

  
	
  Section
  4.10.  Compliance Certificate

  
	
  Section
  4.11.  Liquidated Damages Notice

  
	
   

  
	
  ARTICLE 5

  
	
   

  
	
  NOTEHOLDERS’ LISTS AND REPORTS BY THE
  COMPANY AND THE TRUSTEE

  
	
   

  
	
  Section
  5.01.  Noteholders’ Lists

  
	
  Section
  5.02.  Preservation and Disclosure of
  Lists

  
	
  Section
  5.03.  Reports by Trustee

  
	
  Section
  5.04.  Reports by Company

  
	
   

  
	
  ARTICLE 6

  
	
   

  
	
  REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON
  AN EVENT OF DEFAULT

  
	
   

  
	
  Section
  6.01.  Events of Default

  
	
  Section
  6.02.  Payments of Notes on Default;
  Suit Therefor

  
	
  Section
  6.03.  Application of Monies Collected
  by Trustee

  
	
  Section
  6.04.  Proceedings by Noteholder

  
	
  Section
  6.05.  Proceedings by Trustee

  
	
  Section
  6.06.  Remedies Cumulative and
  Continuing

  
	
  Section
  6.07.  Direction of Proceedings and
  Waiver of Defaults by Majority of Noteholders

  
	
  Section
  6.08.  Notice of Defaults

  
	
  Section
  6.09.  Undertaking to Pay Costs

  
	
   

  
	
  ARTICLE 7

  
	
   

  
	
  THE TRUSTEE

  
	
   

  
	
  Section
  7.01.  Duties and Responsibilities of
  Trustee

  
	
  Section 7.02.  Reliance on Documents, Opinions, Etc.

  
	
  Section
  7.03.  No Responsibility for Recitals,
  Etc.

  
	
  Section
  7.04.  Trustee, Paying Agents,
  Conversion Agents or Registrar May Own Notes

  
	
  Section
  7.05.  Monies to Be Held in Trust

  
	
  Section
  7.06.  Compensation and Expenses of
  Trustee

  
	
  Section
  7.07.  Officers’ Certificate as Evidence

  
	
  Section
  7.08.  Conflicting Interests of Trustee

  
	
  Section
  7.09.  Eligibility of Trustee

  
	
  Section 7.10.  Resignation or Removal of Trustee

  
	
  Section
  7.11.  Acceptance by Successor Trustee

  
	
  Section
  7.12.  Succession by Merger

  
	
  Section
  7.13.  Preferential Collection of Claims

  

 

ii

 

	
  ARTICLE 8

  
	
   

  
	
  THE NOTEHOLDERS

  
	
  Section
  8.01.  Action by Noteholders

  
	
  Section
  8.02.  Proof of Execution by Noteholders

  
	
  Section
  8.03.  Who Are Deemed Absolute Owners

  
	
  Section
  8.04.  Company-owned Notes Disregarded

  
	
  Section
  8.05.  Revocation of Consents, Future
  Holders Bound

  
	
   

  
	
  ARTICLE 9

  
	
   

  
	
  MEETINGS OF NOTEHOLDERS

  
	
  Section
  9.01.  Purpose of Meetings

  
	
  Section
  9.02.  Call of Meetings by Trustee

  
	
  Section
  9.03.  Call of Meetings by Company or
  Noteholders

  
	
  Section
  9.04.  Qualifications for Voting

  
	
  Section
  9.05.  Regulations

  
	
  Section
  9.06.  Voting

  
	
  Section
  9.07.  No Delay of Rights by Meeting

  
	
   

  
	
  ARTICLE 10

  
	
   

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  
	
  Section
  10.01.   Supplemental Indentures Without
  Consent of Noteholders

  
	
  Section
  10.02.   Supplemental Indenture with
  Consent of Noteholders

  
	
  Section
  10.03.   Effect of Supplemental
  Indenture

  
	
  Section
  10.04.   Notation on Notes

  
	
  Section
  10.05.   Evidence of Compliance of
  Supplemental Indenture to Be Furnished to Trustee

  
	
   

  
	
  ARTICLE 11

  
	
   

  
	
  CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

  
	
   

  
	
  Section
  11.01.   Company May Consolidate on
  Certain Terms

  
	
  Section
  11.02.   Successor to Be Substituted

  
	
  Section
  11.03.   Opinion of Counsel to Be Given
  Trustee

  
	
   

  
	
  ARTICLE 12

  
	
   

  
	
  SATISFACTION AND DISCHARGE OF INDENTURE

  
	
   

  
	
  Section
  12.01.   Discharge of Indenture

  
	
  Section
  12.02.   Deposited Monies to Be Held in
  Trust by Trustee

  

 

iii

 

	
  Section
  12.03.   Paying Agent to Repay Monies
  Held

  
	
  Section
  12.04.   Return of Unclaimed Monies

  
	
  Section
  12.05.   Reinstatement

  
	
   

  
	
  ARTICLE 13

  
	
   

  
	
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  
	
   

  
	
  Section
  13.01. Indenture and Notes Solely Corporate Obligations

  
	
   

  
	
  ARTICLE 14

  
	
   

  
	
  CONVERSION OF NOTES

  
	
   

  
	
  Section
  14.01.   Right to Convert

  
	
  Section
  14.02.   Exercise of Conversion
  Privilege; Issuance of Common Stock on Conversion; No Adjustment for Interest
  or Dividends

  
	
  Section
  14.03.   Cash Payments in Lieu of
  Fractional Shares

  
	
  Section
  14.04.   Conversion Rate

  
	
  Section
  14.05.   Adjustment of Conversion Rate

  
	
  Section
  14.06.   Effect of Reclassification,
  Consolidation, Merger or Sale

  
	
  Section
  14.07.   Taxes on Shares Issued

  
	
  Section
  14.08.   Reservation of Shares, Shares
  to Be Fully Paid; Compliance with Governmental Requirements; Listing of
  Common  Stock

  
	
  Section
  14.09.   Responsibility of Trustee

  
	
  Section 14.10.   Notice to Holders Prior to Certain Actions

  
	
  Section
  14.11.   Stockholder Rights Plans

  
	
   

  
	
  ARTICLE 15

  
	
   

  
	
  MISCELLANEOUS PROVISIONS

  
	
   

  
	
  Section
  15.01.   Provisions Binding on Company’s
  Successors

  
	
  Section
  15.02.   Official Acts by Successor
  Corporation

  
	
  Section
  15.03.   Addresses for Notices, Etc.

  
	
  Section
  15.04.   Governing Law

  
	
  Section
  15.05.   Evidence of Compliance with
  Conditions Precedent, Certificates to Trustee

  
	
  Section
  15.06.   Legal Holidays

  
	
  Section
  15.07.   Trust Indenture Act

  
	
  Section
  15.08.   No Security Interest Created

  
	
  Section
  15.09.   Benefits of Indenture

  
	
  Section
  15.10.   Table of Contents, Headings,
  Etc.

  
	
  Section
  15.11.   Authenticating Agent

  
	
  Section
  15.12.   Execution in Counterparts

  
	
  Section
  15.13.   Severability

  

 

iv

 

Exhibit A           Form
of Note

 

v

 

INDENTURE

 

INDENTURE dated as of August 6, 2003 between
Nextel Partners, Inc., a Delaware corporation (hereinafter called the “Company”),
having its principal office at 4500 Carillon Point, Kirkland, Washington 98033,
and The Bank of New York, a New York banking corporation, as trustee hereunder
(hereinafter called the “Trustee”).

 

WITNESSETH:

 

WHEREAS, for its lawful corporate purposes,
the Company has duly authorized the issue of its 11⁄2% Convertible Senior Notes
Due 2008 (hereinafter called the “Notes”), in an aggregate principal amount
not to exceed $125,000,000 (or in the event that the Initial Purchasers, as
defined herein, exercise their option under the Purchase Agreement dated July
29, 2003 (the “Note Purchase Agreement”)
among them and the Company to purchase additional Notes, in an aggregate
principal amount not to exceed $150,000,000) and to provide the terms and
conditions upon which the Notes are to be authenticated, issued and delivered,
the Company has duly authorized the execution and delivery of this Indenture;
and

 

WHEREAS, the Notes, the certificate of
authentication to be borne by the Notes, a form of assignment, a form of option
to elect repayment upon a fundamental change and a form of conversion notice to
be borne by the Notes are to be substantially in the forms hereinafter provided
for; and

 

WHEREAS, all acts and things necessary to make
the Notes, when executed by the Company and authenticated and delivered by the
Trustee or a duly authorized authenticating agent, as in this Indenture
provided, the valid, binding and legal obligations of the Company, and to
constitute this Indenture a valid agreement according to its terms, have been
done and performed, and the execution of this Indenture and the issue hereunder
of the Notes have in all respects been duly authorized,

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

That in order to declare the terms and
conditions upon which the Notes are, and are to be, authenticated, issued and
delivered, and in consideration of the premises and of the purchase and
acceptance of the Notes by the holders thereof, the Company covenants and
agrees with the Trustee for the equal and proportionate benefit of the
respective holders from time to time of the Notes (except as otherwise provided
below), as follows:

 

ARTICLE 1

 

DEFINITIONS

 

Section 1.01.  Definitions.  The
terms defined in this Section 1.01 (except as herein otherwise expressly
provided or unless the context otherwise requires) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective
meanings specified in this Section 1.01. 
All other terms used in this Indenture that are defined in the Trust

 

 

Indenture Act or which are by
reference therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires) shall have the
meanings assigned to such terms in the Trust Indenture Act and in the
Securities Act as in force at the date of the execution of this Indenture.  The words “herein”, “hereof”,
“hereunder”
and words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other Subdivision.  The terms defined in this Article include the plural as well as
the singular.

 

“Accepted Purchased Shares” has the meaning
specified in Section 14.05(f).

 

“Adjustment Event” has the meaning specified
in Section 14.05(k).

 

“Administrative
Agent” means the Administrative Agent under the Credit Facility.

 

“Agent Members” has the meaning specified in
Section 2.05(b).

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  For the purposes of this definition, “control”,
when used with respect to any specified Person, means the power to direct or
cause the direction of the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise, and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Board of Directors” means the Board of
Directors of the Company or a committee of such Board duly authorized to act
for it hereunder.

 

“Business Day” means any day except a
Saturday, Sunday or legal holiday on which banking institutions in The City of
New York are authorized or obligated by law, regulation or executive order to
close.

 

“Capitalized
Lease” means, as applied to any person, any lease of any property
(whether real, personal or mixed) of which the discounted present value of the
rental obligations of such person as lessee, in conformity with GAAP, is
required to be capitalized on the balance sheet of such person.

 

“Capitalized
Lease Obligations” means the discounted present value of the rental
obligations under a Capitalized Lease.

 

“Certificate
of Incorporation” means the Company’s Restated Certificate of
Incorporation filed with the Secretary of the State of Delaware on February 24,
2000.

 

“Closing Sale Price” of the shares of Common
Stock on any date means the closing sale price per share (or, if no closing
sale price is reported, the average of the closing bid and ask prices or, if
more than one in either case, the average of the average closing bid and the
average closing ask prices) on such date as reported in composite transactions
for the principal United States securities exchange on which shares of Common
Stock are traded or, if the shares of Common Stock are not listed on a United
States national or regional securities exchange, as

 

2

 

reported by the Nasdaq National
Market or by the National Quotation Bureau Incorporated.  In the absence of such quotations, the
Company shall be entitled to determine the Closing Sale Price on the basis it
considers appropriate.  The Closing Sale
Price shall be determined without reference to extended or after hours trading.

 

“Commission” means the Securities and
Exchange Commission, as from time to time constituted, created under the
Exchange Act, or, if at any time after the execution of this Indenture such
Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

 

“Common Stock” means any stock of any class
of the Company which has no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution
or winding up of the Company and which is not subject to repurchase by the
Company.  Subject to the provisions of
Section 14.06, however, shares issuable on conversion of Notes shall include
only shares of the class designated as common stock of the Company at the date of
this Indenture (namely, the Class A Common Stock, par value $0.001) or shares
of any class or classes resulting from any reclassification or
reclassifications thereof and which have no preference in respect of dividends
or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and which are not subject to
repurchase (other than as provided in the Shareholders’ Agreement and the
Certificate of Incorporation) by the Company; provided that if at any
time there shall be more than one such resulting class, the shares of each such
class then so issuable on conversion shall be substantially in the proportion
which the total number of shares of such class resulting from all such
reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

 

“Company” means the corporation named as the
“Company”
in the first paragraph of this Indenture, and, subject to the provisions of
Article 11 and Section 14.06, shall include its successors and assigns.

 

“Conversion Price” as of any day will equal
$1,000 divided by the Conversion Rate as of such date.

 

“Conversion Rate” has the meaning specified
in Section 14.04.

 

“Corporate Trust Office”, or other similar
term, means the designated office of the Trustee at which at any particular
time its corporate trust business as it relates to this Indenture shall be
administered, which office is, at the date as of which this Indenture is dated,
located at 101 Barclay Street, New York, New York 10286.

 

“Credit
Facility” means (a) the Amended and Restated Credit Agreement dated
as of September 9, 1999, among Nextel Partners Operating Corp., a Delaware
corporation, the Lenders defined therein, Bank of Montreal, as administrative
agent for the Lenders thereunder, The Bank of New York, as documentation agent,
DLJ Capital Funding, Inc., as syndication agent, and Donaldson, Lufkin &
Jenrette Securities Corporation, as lead arranger and sole book running
manager, as amended by a first amendment dated as of March 10, 2000, a second

 

3

 

amendment dated as of January
25, 2001, a third amendment dated as of January 21, 2002, and a fourth
amendment dated as of April 17, 2003, as such agreement is further amended,
supplemented, extended, restated, renewed or otherwise modified from time to
time, and any refinancing, replacement or substitution thereof or therefor, or
of or for any previous refinancing, replacement or substitution and (b) the
other Loan Documents (as defined in the Credit Facility) and any other document
or instrument entered into in connection therewith.

 

“Current Market Price” has the meaning
specified in Section 14.05(g).

 

“Custodian” means The Bank of New York, as
custodian with respect to the Notes in global form, or any successor entity
thereto.

 

“default” means any event that is, or after
notice or passage of time, or both, would be, an Event of Default.

 

“Defaulted Interest” has the meaning
specified in Section 2.03.

 

“Depositary” means the clearing agency
registered under the Exchange Act that is designated to act as the Depositary
for the Global Notes.  The Depository
Trust Company shall be the initial Depositary, until a successor shall have
been appointed and become such pursuant to the applicable provisions of this
Indenture, and thereafter “Depositary” shall mean or include such
successor.

 

“Determination Date” has the meaning
specified in Section 14.05(k).

 

“Event of Default” means any event specified
in Section 6.01 as an Event of Default.

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder,
as in effect from time to time.

 

“Expiration Time” has the meaning specified
in Section 14.05(e).

 

“Fair Market Value” has the meaning
specified in Section 14.05(g).

 

“Fundamental Change” means the occurrence of
any transaction or event (whether by means of an exchange offer, liquidation,
tender offer, consolidation, merger, combination, reclassification,
recapitalization or otherwise) in connection with which all or substantially
all of the Common Stock shall be exchanged for, converted into, acquired for or
constitutes solely the right to receive, consideration which is not all or
substantially all common stock that is listed on, or immediately after the
transaction or event will be listed on, a United States national securities
exchange, or is approved, or immediately after the transaction or event will be
approved, for quotation on the NASDAQ National Market or any similar United
States system of automated dissemination of quotations of securities prices.

 

“Fundamental Change Expiration Time” has the
meaning specified in Section 3.05(b).

 

“Fundamental Change Notice” has the meaning
specified in Section 3.05(b).

 

4

 

“Fundamental Change Repurchase Date” has the
meaning specified in Section 3.05(a).

 

“Global Note” has the meaning specified in
Section 2.02.

 

“Indenture” means this instrument as
originally executed or, if amended or supplemented as herein provided, as so
amended or supplemented.

 

“Initial Purchasers” means Wachovia Capital
Markets, LLC and Credit Suisse First Boston LLC.

 

“interest” means, when used with reference
to the Notes, any interest payable under the terms of the Notes, and Liquidated
Damages, if any, payable under the terms of the Registration Rights Agreement.

 

“Lien”
means any pledge, mortgage, lien, security interest, hypothecation, assignment
for security interest or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof, any
agreement to give a security interest or any Capitalized Lease).

 

“Liquidated Damages” has the meaning
specified for “Liquidated Damages Amount” in Section 2(e) of the Registration
Rights Agreement.

 

“Liquidated Damages Notice” has the meaning
specified in Section 4.11.

 

“non-electing share” has the meaning
specified in Section 14.06.

 

“Note” or “Notes” means any Note or
Notes, as the case may be, authenticated and delivered under this Indenture,
including any Global Note.

 

“Note
Purchase Agreement” has the meaning ascribed to such term in the
preamble to this Indenture.

 

“Note register” has the meaning specified in
Section 2.05.

 

“Note registrar” has the meaning specified
in Section 2.05.

 

“Noteholder” or “holder” as applied to any
Note, or other similar terms (but excluding the term “beneficial holder”), means
any Person in whose name at the time a particular Note is registered on the
Note registrar’s books.

 

“Offer Expiration Time” has the meaning
specified in Section 14.05(f).

 

“Officers’ Certificate”, when used with
respect to the Company, means a certificate signed by the Chairman of the
Board, the Chief Executive Officer, the President or any Vice President
(whether or not designated by a number or numbers or word or words added before
or after the title “Vice President”), the Treasurer or any
Assistant Treasurer, or the Secretary of the Company.

 

5

 

“Opinion of Counsel” means an opinion in writing
signed by legal counsel, who may be an employee of or counsel to the Company,
or other counsel reasonably acceptable to the Trustee.

 

“outstanding”, when used with reference to
Notes and subject to the provisions of Section 8.04, means, as of any particular
time, all Notes authenticated and delivered by the Trustee under this
Indenture, except:

 

(a)           Notes theretofore canceled by the
Trustee or delivered to the Trustee for cancellation;

 

(b)           Notes, or portions thereof, (i) for
the repurchase of which monies in the necessary amount shall have been
deposited in trust with the Trustee or with any paying agent (other than the
Company) or (ii) which shall have been otherwise defeased in accordance with
Article 12;

 

(c)           Notes in lieu of which, or in
substitution for which, other Notes shall have been authenticated and delivered
pursuant to the terms of Section 2.06; and

 

(d)           Notes converted into Common Stock
pursuant to Article 14 and Notes deemed not outstanding pursuant to Article 3.

 

“Person” means a corporation, an
association, a partnership, a limited liability company, an individual, a joint
venture, a joint stock company, a trust, an unincorporated organization or a
government or an agency or a political subdivision thereof.

 

“Portal Market” means The Portal Market
operated by the National Association of Securities Dealers, Inc. or any
successor thereto.

 

“Predecessor Note” of any particular Note
means every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note, and, for the purposes of this definition,
any Note authenticated and delivered under Section 2.06 in lieu of a lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the lost,
destroyed or stolen Note that it replaces.

 

“Purchased Shares” has the meaning specified
in Section 14.05(e).

 

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

 

“record date”, with respect to any interest
payment date, has the meaning specified in Section 2.03.

 

“Record Date” has the meaning specified in
Section 14.05(g).

 

“Registration Rights Agreement” means the
Registration Rights Agreement, dated as of August 6, 2003, between the Company
and the Initial Purchasers, as amended from time to time in accordance with its
terms.

 

6

 

“Responsible Officer” means, when used with
respect to the Trustee, any officer within the corporate trust department of
the Trustee, including any vice president, assistant vice president, assistant
secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of, and
familiarity with, the particular subject and who shall have direct
responsibility for the administration of this Indenture.

 

“Restricted Securities” has the meaning
specified in Section 2.05(c).

 

“Rule 144A” means Rule 144A as promulgated
under the Securities Act.

 

“Securities” has the meaning specified in
Section 14.05(d).

 

“Securities Act” means the Securities Act of
1933, as amended, and the rules and regulations promulgated thereunder, as in
effect from time to time.

 

“Shareholders’
Agreement” means the Amended and Restated Shareholders’ Agreement
dated as of February 18, 2000 by and among the Company and the stockholders
named therein, as amended.

 

“Significant Subsidiary” means, as of any
date of determination, a Subsidiary of the Company that would constitute a “significant
subsidiary” as such term is defined under Rule 1-02(w) of Regulation
S-X of the Commission as in effect on the date of this Indenture.

 

“Subsidiary” means, with respect to any
Person, (i) any corporation, association or other business entity of which more
than 50% of the total voting power of shares of capital stock or other equity
interest entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof is at the time owned
or controlled, directly or indirectly, by such Person or one or more of the
other subsidiaries of that Person (or a combination thereof) and (ii) any
partnership (a) the sole general partner or managing general partner of which
is such Person or a subsidiary of such Person or (b) the only general partners
of which are such Person or one or more subsidiaries of such Person (or any
combination thereof).

 

“Trading Day” has the meaning specified in
Section 14.05(g).

 

“Trading Price” means, on any date, the
average of the secondary market bid quotations for the Notes obtained by the
Trustee for $10,000,000 principal amount of Notes at approximately 3:30 p.m.,
New York City time, on such date from three independent nationally recognized
securities dealers in The City of New York (none of which shall be an Affiliate
of the Company) selected by the Company; provided that if at least three such bids
cannot reasonably be obtained by the Trustee, but two bids are obtained, then the
average of the two bids shall be used, and if only one such bid can reasonably
be obtained by the Trustee, one bid shall be used; and provided further that if the Trustee
cannot reasonably obtain at least one bid for $10,000,000 principal amount of
Notes from a nationally recognized securities dealer or, in the Company’s
reasonable judgment, the bid quotations are not indicative of the secondary
market value of the Notes, then the Trading Price per $1,000 principal amount
of Notes shall be deemed to the

 

7

 

product of (a) the Conversion
Rate in effect as of such determination date and (b) the average Closing Sale
Price of the Common Stock for the five Trading Days ending on such
determination date, appropriately adjusted to take into account the occurrence,
during the period commencing on the first of such Trading Days during such five
Trading Day period and ending on such determination date, of any event
described in Sections 14.05 and 14.06.

 

“Trigger Event” has the meaning specified in
Section 14.05(d).

 

“Trust Indenture Act” means the Trust
Indenture Act of 1939, as amended, as it was in force at the date of this
Indenture, except as provided in Sections 10.03 and 15.07; provided that if the Trust
Indenture Act of 1939 is amended after the date hereof, the term “Trust
Indenture Act” shall mean, to the extent required by such amendment,
the Trust Indenture Act of 1939 as so amended.

 

“Trustee” means The Bank of New York, and
its successors and any corporation resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee at the time serving as successor trustee hereunder.

 

ARTICLE 2

 

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE
OF NOTES

 

Section 2.01.  Designation
Amount and Issue of Notes.  The
Notes shall be designated as “11⁄2% Convertible
Senior Notes Due 2008”. 
Notes not to exceed the aggregate principal amount of $125,000,000, or
in the event that the Initial Purchasers exercise their option under the Note
Purchase Agreement to purchase additional Notes, in an aggregate principal
amount not to exceed $150,000,000 (except pursuant to Sections 2.05, 2.06, 3.05
and 14.02 hereof) upon the execution of this Indenture, or from time to time
thereafter, may be executed by the Company and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and deliver said
Notes to or upon the written order of the Company, signed by its Chairman of
the Board, Chief Executive Officer, President or any Vice President (whether or
not designated by a number or numbers or word or words added before or after
the title “Vice President”), the Treasurer or any Assistant Treasurer or
the Secretary, without any further action by the Company hereunder.

 

Section 2.02. 
Form of Notes.  The Notes and the Trustee’s
certificate of authentication to be borne by such Notes shall be substantially
in the form set forth in Exhibit A.  The
terms and provisions contained in the form of Note attached as Exhibit A hereto
shall constitute, and are hereby expressly made, a part of this Indenture and,
to the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.

 

Any of the Notes may have such letters,
numbers or other marks of identification and such notations, legends,
endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not
inconsistent with the provisions of this Indenture, or as may be required by
the Custodian, the

 

8

 

Depositary or by the National
Association of Securities Dealers, Inc. in order for the Notes to be tradable
on The Portal Market or as may be required for the Notes to be tradable on any
other market developed for trading of securities pursuant to Rule 144A or as
may be required to comply with any applicable law or with any rule or regulation
made pursuant thereto or with any rule or regulation of any securities exchange
or automated quotation system on which the Notes may be listed, or to conform
to usage, or to indicate any special limitations or restrictions to which any
particular Notes are subject.

 

So long as the Notes are eligible for
book-entry settlement with the Depositary, or unless otherwise required by law,
or otherwise contemplated by Section 2.05(a), all of the Notes will be
represented by one or more Notes in global form registered in the name of the
Depositary or the nominee of the Depositary (a “Global Note”).  The transfer and exchange of beneficial
interests in any such Global Note shall be effected through the Depositary in
accordance with this Indenture and the applicable procedures of the
Depositary.  Except as provided in
Section 2.05(a), beneficial owners of a Global Note shall not be entitled to
have certificates registered in their names, will not receive or be entitled to
receive physical delivery of certificates in definitive form and will not be
considered holders of such Global Note.

 

Any Global Note shall represent such of the
outstanding Notes as shall be specified therein and shall provide that it shall
represent the aggregate amount of outstanding Notes from time to time endorsed
thereon and that the aggregate amount of outstanding Notes represented thereby
may from time to time be increased or reduced to reflect repurchases,
conversions, transfers or exchanges permitted hereby.  Any endorsement of a Global Note to reflect the amount of any
increase or decrease in the amount of outstanding Notes represented thereby
shall be made by the Trustee or the Custodian, at the direction of the Trustee,
in such manner and upon instructions given by the holder of such Notes in
accordance with this Indenture.  Payment
of principal of and interest on any Global Note shall be made to the holder of
such Note.

 

Section 2.03. 
Date and Denomination of Notes;
Payments of Interest.  The
Notes shall be issuable in registered form without coupons in denominations of
$1,000 principal amount and integral multiples thereof.  Each Note shall be dated the date of its
authentication and shall bear interest from the date specified on the face of
the form of Note attached as Exhibit A hereto. 
Interest on the Notes shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.

 

The Person in whose name any Note (or its
Predecessor Note) is registered on the Note register at the close of business
on any record date with respect to any interest payment date shall be entitled
to receive the interest payable on such interest payment date, except that the
interest payable upon repurchase will be payable to the Person to whom
principal is payable pursuant to such repurchase (unless the repurchase date is
an interest payment date, in which case the semi-annual payment of interest
becoming due on such date shall be payable to the holders of such Notes
registered as such on the applicable record date).  Notwithstanding the foregoing, if any Note (or portion thereof)
is converted into Common Stock during the period after a record date for the
payment of interest to, but excluding, the next succeeding interest payment
date and such Note (or portion thereof) has been called or tendered for
repurchase on a repurchase date which occurs during such period, the Company
shall not be required to pay interest on such interest

 

9

 

payment date in respect of any
such Note (or portion thereof).  The
Company shall pay interest (i) on any Notes in certificated form by check
mailed to the address of the Person entitled thereto as it appears in the Note
register; provided that if any
holder of Notes with an aggregate principal amount in excess of $2.0 million
shall request in writing, the Company shall pay interest on such holder’s Notes
by wire transfer of immediately available funds to the account designated by
such holder, or (ii) on any Global Note by wire transfer of immediately
available funds to the account of the Depositary or its nominee.  The term “record date” with respect to
any interest payment date shall mean the May 1 or November 1 preceding the
applicable May 15 or November 15 interest payment date, respectively.

 

Any interest on any Note which is payable, but
is not punctually paid or duly provided for, on any May 15 or November 15
(herein called “Defaulted Interest”) shall forthwith cease to be payable to
the Noteholder on the relevant record date by virtue of his having been such
Noteholder, and such Defaulted Interest shall be paid by the Company, at its
election in each case, as provided in clause (1) or (2) below:

 

(1)           The Company may elect to make payment
of any Defaulted Interest to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on a special record
date for the payment of such Defaulted Interest, which shall be fixed in the
following manner.  The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Note and the date of the proposed payment (which shall be not
less than twenty-five (25) days after the receipt by the Trustee of such
notice, unless the Trustee shall consent to an earlier date), and at the same time
the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the
date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this
clause provided.  Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest
which shall be not more than fifteen (15) days and not less than ten (10) days
prior to the date of the proposed payment, and not less than ten (10) days
after the receipt by the Trustee of the notice of the proposed payment.  The Trustee shall promptly notify the
Company of such special record date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the special record date therefor to be mailed, first-class postage prepaid,
to each holder at his address as it appears in the Note register, not less than
ten (10) days prior to such special record date.  Notice of the proposed payment of such Defaulted Interest and the
special record date therefor having been so mailed, such Defaulted Interest shall
be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on such special
record date and shall no longer be payable pursuant to the following clause (2)
of this Section 2.03.

 

(2)           The Company may make payment of any
Defaulted Interest in any other lawful manner not inconsistent with the
requirements of any securities exchange or automated quotation system on which
the Notes may be listed or designated for issuance, and upon such notice as may
be required by such exchange or automated quotation

 

10

 

system, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.

 

Section 2.04. 
Execution of Notes.  The Notes shall be signed in the
name and on behalf of the Company by the manual or facsimile signature of its
Chairman of the Board, Chief Executive Officer, President or any Vice President
(whether or not designated by a number or numbers or word or words added before
or after the title “Vice President”).  Only such Notes as shall bear thereon a certificate of
authentication substantially in the form set forth on the form of Note attached
as Exhibit A hereto, manually executed by the Trustee (or an authenticating
agent appointed by the Trustee as provided by Section 15.11), shall be entitled
to the benefits of this Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee (or such an
authenticating agent) upon any Note executed by the Company shall be conclusive
evidence that the Note so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this
Indenture.

 

In case any officer of the Company who shall
have signed any of the Notes shall cease to be such officer before the Notes so
signed shall have been authenticated and delivered by the Trustee, or disposed
of by the Company, such Notes nevertheless may be authenticated and delivered
or disposed of as though the person who signed such Notes had not ceased to be
such officer of the Company, and any Note may be signed on behalf of the
Company by such persons as, at the actual date of the execution of such Note,
shall be the proper officers of the Company, although at the date of the
execution of this Indenture any such person was not such an officer.

 

Section 2.05. 
Exchange and Registration of Transfer
of Notes; Restrictions on Transfer.  (a)  The Company shall cause to be kept at the
Corporate Trust Office a register (the register maintained in such office and
in any other office or agency of the Company designated pursuant to Section
4.02 being herein sometimes collectively referred to as the “Note
register”) in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the registration of Notes and of
transfers of Notes.  The Note register
shall be in written form or in any form capable of being converted into written
form within a reasonably prompt period of time.  The Trustee is hereby appointed “Note registrar” for the
purpose of registering Notes and transfers of Notes as herein provided.  The Company may appoint one or more
co-registrars in accordance with Section 4.02.

 

Upon surrender for registration of transfer of
any Note to the Note registrar or any co-registrar, and satisfaction of the
requirements for such transfer set forth in this Section 2.05, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Notes of any
authorized denominations and of a like aggregate principal amount and bearing
such restrictive legends as may be required by this Indenture.

 

Notes may be exchanged for other Notes of any
authorized denominations and of a like aggregate principal amount, upon
surrender of the Notes to be exchanged at any such office or agency maintained
by the Company pursuant to Section 4.02. 
Whenever any Notes are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and

 

11

 

deliver, the Notes which the
Noteholder making the exchange is entitled to receive bearing registration numbers
not contemporaneously outstanding.

 

All Notes issued upon any registration of
transfer or exchange of Notes shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or
exchange.

 

All Notes presented or surrendered for
registration of transfer or for exchange, repurchase or conversion shall (if so
required by the Company or the Note registrar) be duly endorsed, or be accompanied
by a written instrument or instruments of transfer in form satisfactory to the
Company, and the Notes shall be duly executed by the Noteholder thereof or his
attorney duly authorized in writing.

 

No service charge shall be made to any holder
for any registration of, transfer or exchange of Notes, but the Company may
require payment by the holder of a sum sufficient to cover any tax, assessment
or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Notes.

 

Neither the Company nor the Trustee nor any
Note registrar shall be required to exchange or register a transfer of (a) any
Notes for a period of fifteen (15) days next preceding any selection of Notes
to be repurchased, (b) any Notes or portions thereof surrendered for conversion
pursuant to Article 14 or (c) any Notes or portions thereof tendered for
repurchase (and not withdrawn) pursuant to Section 3.05.

 

(b)   The
following provisions shall apply only to Global Notes:

 

(i)            Each Global Note authenticated under
this Indenture shall be registered in the name of the Depositary or a nominee
thereof and delivered to such Depositary or a nominee thereof or Custodian
therefor, and each such Global Note shall constitute a single Note for all
purposes of this Indenture.

 

(ii)           Notwithstanding any other provision
in this Indenture, no Global Note may be exchanged in whole or in part for
Notes registered, and no transfer of a Global Note in whole or in part may be
registered, in the name of any Person other than the Depositary or a nominee
thereof unless (A) the Depositary (i) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Note and a
successor depositary has not been appointed by the Company within ninety days
or (ii) has ceased to be a clearing agency registered under the Exchange Act,
(B) an Event of Default has occurred and is continuing or (C) the Company, in
its sole discretion, notifies the Trustee in writing that it no longer wishes
to have all the Notes represented by Global Notes.  Any Global Note exchanged pursuant to clause (A) or (B) above
shall be so exchanged in whole and not in part and any Global Note exchanged
pursuant to clause (C) above may be exchanged in whole or from time to time in
part as directed by the Company.  Any
Note issued in exchange for a Global Note or any portion thereof shall be a
Global Note;
provided that any such Note so issued that is registered in the name
of a Person other than the Depositary or a nominee thereof shall not be a
Global Note.

 

12

 

(iii)          Securities issued in exchange for a
Global Note or any portion thereof pursuant to clause (ii) above shall be
issued in definitive, fully registered form, without interest coupons, shall
have an aggregate principal amount equal to that of such Global Note or portion
thereof to be so exchanged, shall be registered in such names and be in such
authorized denominations as the Depositary shall designate and shall bear any
legends required hereunder.  Any Global
Note to be exchanged in whole shall be surrendered by the Depositary to the
Trustee, as Note registrar.  With regard
to any Global Note to be exchanged in part, either such Global Note shall be so
surrendered for exchange or, if the Trustee is acting as Custodian for the
Depositary or its nominee with respect to such Global Note, the principal
amount thereof shall be reduced, by an amount equal to the portion thereof to
be so exchanged, by means of an appropriate adjustment made on the records of
the Trustee.  Upon any such surrender or
adjustment, the Trustee shall authenticate and make available for delivery the
Note issuable on such exchange to or upon the written order of the Depositary
or an authorized representative thereof.

 

(iv)          In the event of the occurrence of any
of the events specified in clause (ii) above, the Company will promptly make
available to the Trustee a reasonable supply of certificated Notes in
definitive, fully registered form, without interest coupons.

 

(v)           Neither any members of, or
participants in, the Depositary (“Agent Members”) nor any other Persons on
whose behalf Agent Members may act shall have any rights under this Indenture
with respect to any Global Note registered in the name of the Depositary or any
nominee thereof, and the Depositary or such nominee, as the case may be, may be
treated by the Company, the Trustee and any agent of the Company or the Trustee
as the absolute owner and holder of such Global Note for all purposes
whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depositary or such nominee, as
the case may be, or impair, as between the Depositary, its Agent Members and
any other Person on whose behalf an Agent Member may act, the operation of
customary practices of such Persons governing the exercise of the rights of a
holder of any Note.

 

(vi)          At such time as all interests in a
Global Note have been repurchased, converted, canceled or exchanged for Notes
in certificated form, such Global Note shall, upon receipt thereof, be canceled
by the Trustee in accordance with standing procedures and instructions existing
between the Depositary and the Custodian. 
At any time prior to such cancellation, if any interest in a Global Note
is repurchased, converted, canceled or exchanged for Notes in certificated
form, the principal amount of such Global Note shall, in accordance with the
standing procedures and instructions existing between the Depositary and the
Custodian, be appropriately reduced, and an endorsement shall be made on such
Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to
reflect such reduction.

 

(c)   Every
Note that bears or is required under this Section 2.05(c) to bear the legend
set forth in this Section 2.05(c) (together with any Common Stock issued upon
conversion of the Notes and required to bear the legend set forth in this
Section 2.05(c), collectively, the

 

13

 

“Restricted Securities”) shall
be subject to the restrictions on transfer set forth in this Section 2.05(c)
(including those set forth in the legend below) unless such restrictions on
transfer shall be waived by written consent of the Company, and the holder of
each such Restricted Security, by such Note holder’s acceptance thereof, agrees
to be bound by all such restrictions on transfer.  As used in Sections 2.05(c) and 2.05(d), the term “transfer”
encompasses any sale, pledge, loan, transfer or other disposition whatsoever of
any Restricted Security or any interest therein.

 

Until the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or any
successor provision), any certificate evidencing such Note (and all securities
issued in exchange therefor or substitution thereof, other than Class A Common
Stock, if any, issued upon conversion thereof, which shall bear the legend set
forth in this Section 2.05(c), if applicable) shall bear a legend in
substantially the following form, unless such Note has been sold pursuant to a
registration statement that has been declared effective under the Securities
Act (and which continues to be effective at the time of such transfer), or
unless otherwise agreed by the Company in writing, with written notice thereof
to the Trustee:

 

THE NOTE EVIDENCED HEREBY HAS
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE.  BY
ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT); (2) AGREES THAT IT WILL NOT,
PRIOR TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS NOTE
UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), RESELL
OR OTHERWISE TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS NOTE EXCEPT (A) TO NEXTEL PARTNERS, INC. OR ANY SUBSIDIARY THEREOF, (B) TO
A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY
RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR
TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (2)(D) ABOVE), IT
WILL FURNISH TO THE BANK OF NEW YORK, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS
APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THE
TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (4) AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND.  THIS
LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS NOTE PURSUANT
TO CLAUSE (2)(D) ABOVE OR UPON ANY TRANSFER OF THIS NOTE UNDER RULE 144(K) UNDER
THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).  THE INDENTURE CONTAINS A PROVISION

 

14

 

REQUIRING THE TRUSTEE TO REFUSE
TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING
RESTRICTION.

 

Any Note (or security issued in exchange or
substitution therefor) as to which such restrictions on transfer shall have
expired in accordance with their terms or as to conditions for removal of the
foregoing legend set forth therein have been satisfied may, upon surrender of
such Note for exchange to the Note registrar in accordance with the provisions
of this Section 2.05, be exchanged for a new Note or Notes, of like tenor and
aggregate principal amount, which shall not bear the restrictive legend
required by this Section 2.05(c).  If
the Restricted Security surrendered for exchange is represented by a Global
Note bearing the legend set forth in this Section 2.05(c), the principal amount
of the legended Global Note shall be reduced by the appropriate principal
amount and the principal amount of a Global Note without the legend set forth
in this Section 2.05(c) shall be increased by an equal principal amount.  If a Global Note without the legend set
forth in this Section 2.05(c) is not then outstanding, the Company shall
execute and the Trustee shall authenticate and deliver an unlegended Global
Note to the Depositary.

 

(d)   (i)  Until the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or any
successor provision), any stock certificate representing Common Stock issued
upon conversion of any Note shall bear a legend in substantially the following
form, unless such Common Stock has been sold pursuant to a registration
statement that has been declared effective under the Securities Act (and which
continues to be effective at the time of such transfer) or such Common Stock
has been issued upon conversion of Notes that have been transferred pursuant to
a registration statement that has been declared effective under the Securities
Act, or unless otherwise agreed by the Company in writing with written notice
thereof to the transfer agent:

 

THE CLASS A COMMON STOCK
EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE.  THE HOLDER HEREOF AGREES THAT, UNTIL THE
EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE CLASS A COMMON
STOCK EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION), (1) IT WILL NOT RESELL OR OTHERWISE TRANSFER THE COMMON
STOCK EVIDENCED HEREBY EXCEPT (A) TO NEXTEL PARTNERS, INC. OR ANY SUBSIDIARY
THEREOF, (B) TO A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN COMPLIANCE WITH RULE 144A, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (D) PURSUANT TO
A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (2)
PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (1)(D) ABOVE),
IT WILL FURNISH TO MELLON INVESTOR SERVICES LLC, AS TRANSFER AGENT (OR A SUCCESSOR
TRANSFER AGENT, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER

 

15

 

INFORMATION AS SUCH TRANSFER
AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (3) IT WILL DELIVER TO
EACH PERSON TO WHOM THE COMMON STOCK EVIDENCED HEREBY IS TRANSFERRED (OTHER
THAN A TRANSFER PURSUANT TO CLAUSE (1)(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND.  THIS LEGEND WILL
BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THE CLASS A COMMON STOCK
EVIDENCED HEREBY PURSUANT TO CLAUSE (1)(D) ABOVE OR UPON ANY TRANSFER OF THE
COMMON STOCK EVIDENCED HEREBY AFTER THE EXPIRATION OF THE HOLDING PERIOD
APPLICABLE TO SALES OF THE SECURITY EVIDENCED HEREBY UNDER RULE 144(K) UNDER
THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).

 

Any such Common Stock as to which such
restrictions on transfer shall have expired in accordance with their terms or
as to which the conditions for removal of the foregoing legend set forth
therein have been satisfied may, upon surrender of the certificates
representing such shares of Common Stock for exchange in accordance with the
procedures of the transfer agent for the Common Stock, be exchanged for a new
certificate or certificates for a like number of shares of Common Stock, which
shall not bear the restrictive legend required by this Section 2.05(d).

 

(ii)           Any
stock certificate representing Common Stock issued upon conversion of any Note
shall, pursuant to the Certificate of Incorporation, bear a legend in
substantially the following form:

 

THE CLASS A COMMON STOCK EVIDENCED HEREBY IS
SUBJECT TO PROVISIONS OF THE COMPANY’S RESTATED CERTIFICATE OF INCORPORATION
THAT ALLOW AN ENTITY TO PURCHASE OR CAUSE THE COMPANY TO REDEEM ALL OF THE
OUTSTANDING CLASS A COMMON STOCK OR ALLOW A MAJORITY OF THE CLASS A COMMON
STOCKHOLDERS TO CAUSE SUCH ENTITY TO PURCHASE OR CAUSE THE COMPANY TO REDEEM
ALL OF THE OUTSTANDING CLASS A COMMON STOCK, IN EACH SUCH INSTANCE AT A
PURCHASE PRICE DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF THE RESTATED
CERTIFICATE OF INCORPORATION.  COPIES OF
THE RESTATED CERTIFICATE OF INCORPORATION ARE AVAILABLE AT THE PRINCIPAL OFFICE
OF THE CORPORATION AND WILL BE FURNISHED WITHOUT COST TO STOCKHOLDERS ON
REQUEST.

 

(e)   Any
Note or Common Stock issued upon the conversion of a Note that, prior to the
expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision), is purchased or owned by
the Company or any Affiliate thereof may not be resold by the Company or such
Affiliate unless registered under the Securities Act or resold pursuant to an
exemption from the registration requirements of the Securities Act in a
transaction which results in such Notes or Common Stock, as the case may be, no
longer being “restricted securities” (as defined under Rule 144).

 

16

 

(f)    The
Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions or transfer imposed under this Indenture or
under applicable law with respect to any transfer of any interest in any Note
(including any transfers between or among Agent Members or beneficial owners of
interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by the terms of, this Indenture,
and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

 

Section 2.06. 
Mutilated, Destroyed, Lost or Stolen
Notes.  In case any Note
shall become mutilated or be destroyed, lost or stolen, the Company in its
discretion may execute, and upon its written request the Trustee or an
authenticating agent appointed by the Trustee shall authenticate and make
available for delivery, a new Note, bearing a number not contemporaneously outstanding,
in exchange and substitution for the mutilated Note, or in lieu of and in
substitution for the Note so destroyed, lost or stolen.  In every case, the applicant for a
substituted Note shall furnish to the Company, to the Trustee and, if
applicable, to such authenticating agent such security or indemnity as may be
required by them to save each of them harmless for any loss, liability, cost or
expense caused by or connected with such substitution, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company, to
the Trustee and, if applicable, to such authenticating agent evidence to their
satisfaction of the destruction, loss or theft of such Note and of the
ownership thereof.

 

Following receipt by the Trustee or such
authenticating agent, as the case may be, of satisfactory security or indemnity
and evidence, as described in the preceding paragraph, the Trustee or such
authenticating agent may authenticate any such substituted Note and make
available for delivery such Note.  Upon
the issuance of any substituted Note, the Company may require the payment by
the holder of a sum sufficient to cover any tax, assessment or other
governmental charge that may be imposed in relation thereto and any other
expenses connected therewith.  In case
any Note which has matured or is about to mature or has been tendered for
repurchase upon a Fundamental Change (and not withdrawn) or is to be converted
into Common Stock shall become mutilated or be destroyed, lost or stolen, the
Company may, instead of issuing a substitute Note, pay or authorize the payment
of or convert or authorize the conversion of the same (without surrender
thereof except in the case of a mutilated Note), as the case may be, if the
applicant for such payment or conversion shall furnish to the Company, to the
Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any
loss, liability, cost or expense caused by or in connection with such
substitution, and, in every case of destruction, loss or theft, the applicant
shall also furnish to the Company, the Trustee and, if applicable, any paying
agent or conversion agent evidence to their satisfaction of the destruction,
loss or theft of such Note and of the ownership thereof.

 

Every substitute Note issued pursuant to the
provisions of this Section 2.06 by virtue of the fact that any Note is
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Company, whether or not the destroyed, lost or stolen Note shall be
found at any time, and shall be entitled to all the benefits of (but shall be
subject to all the limitations set forth in) this Indenture equally and
proportionately with any and all other Notes duly issued

 

17

 

hereunder.  To the extent permitted by law, all Notes
shall be held and owned upon the express condition that the foregoing
provisions are exclusive with respect to the replacement or payment or
conversion or repurchase of mutilated, destroyed, lost or stolen Notes and
shall preclude any and all other rights or remedies notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the
replacement or payment or conversion or repurchase of negotiable instruments or
other securities without their surrender.

 

Section 2.07. 
Temporary Notes.  Pending
the preparation of Notes in certificated form, the Company may execute and the
Trustee or an authenticating agent appointed by the Trustee shall, upon the
written request of the Company, authenticate and deliver temporary Notes
(printed or lithographed).  Temporary
Notes shall be issuable in any authorized denomination, and substantially in
the form of the Notes in certificated form, but with such omissions, insertions
and variations as may be appropriate for temporary Notes, all as may be
determined by the Company.  Every such
temporary Note shall be executed by the Company and authenticated by the
Trustee or such authenticating agent upon the same conditions and in
substantially the same manner, and with the same effect, as the Notes in
certificated form. Without unreasonable delay, the Company will execute and
deliver to the Trustee or such authenticating agent Notes in certificated form
and thereupon any or all temporary Notes may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to
Section 4.02 and the Trustee or such authenticating agent shall authenticate
and make available for delivery in exchange for such temporary Notes an equal
aggregate principal amount of Notes in certificated form.  Such exchange shall be made by the Company
at its own expense and without any charge therefor.  Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits and subject to the same limitations under this
Indenture as Notes in certificated form authenticated and delivered hereunder.

 

Section 2.08. 
Cancellation of Notes.  All
Notes surrendered for the purpose of payment, repurchase, conversion, exchange
or registration of transfer shall, if surrendered to the Company or any paying
agent or any Note registrar or any conversion agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall
be promptly canceled by it, and no Notes shall be issued in lieu thereof except
as expressly permitted by any of the provisions of this Indenture.  The Trustee shall dispose of such canceled
Notes in accordance with its customary procedures.  If the Company shall acquire any of the Notes, such acquisition
shall not operate as a repurchase or satisfaction of the indebtedness
represented by such Notes unless and until the same are delivered to the
Trustee for cancellation.

 

Section 2.09. 
CUSIP Numbers.  The
Company in issuing the Notes may use “CUSIP” numbers (if then generally in use),
and, if so, the Trustee shall use “CUSIP” numbers in notices of repurchase as
a convenience to Noteholders; provided that any such notice may state
that no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of a repurchase and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such repurchase shall not be affected by any defect in or
omission of such numbers.  The Company
will promptly notify the Trustee of any change in the “CUSIP” numbers.

 

18

 

Section 2.10. 
Global Securities.  Neither the Trustee nor any Agent shall have
any responsibility for any actions taken or not taken by the Depositary.

 

ARTICLE 3

 

REDEMPTION AND REPURCHASE OF NOTES

 

Section 3.01. 
Redemption or Repurchase of Notes.  Except
as otherwise provided in Section 3.05, the Company may not redeem or repurchase
any Notes prior to maturity.

 

Section 3.02. 
[Intentionally left blank]

 

Section 3.03. 
[Intentionally left blank]

 

Section 3.04. 
[Intentionally left blank]

 

Section 3.05. 
Repurchase at Option of Holders upon
a Fundamental Change.  (a) 
If there shall occur a Fundamental Change at any time prior to maturity
of the Notes, then each Noteholder shall have the right, at such holder’s
option, to require the Company to repurchase all of such holder’s Notes, or any
portion thereof that is an integral multiple of $1,000 principal amount, on the
date (the “Fundamental Change Repurchase  Date”)
that is thirty (30) days after the date of the Fundamental Change Notice (as
defined in Section 3.05(b)) of such Fundamental Change (or, if such 30th day is
not a Business Day, the next succeeding Business Day) at a repurchase price
equal to 100% of the principal amount thereof, together with accrued interest
to, but excluding, the Fundamental Change Repurchase Date; provided that if such
Fundamental Change Repurchase Date is an interest payment date, then the
interest payable on such interest payment date shall be paid to the holders of
record of the Notes on the applicable record date instead of the holders
surrendering the Notes for repurchase on such date.

 

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

 

(b)   On
or before the tenth day after the occurrence of a Fundamental Change, the
Company or at its written request (which must be received by the Trustee at
least five (5) Business Days prior to the date the Trustee is requested to give
notice as described below, unless the Trustee shall agree in writing to a
shorter period), the Trustee, in the name of and at the expense of the Company,
shall mail or cause to be mailed to all holders of record on the date of the
Fundamental Change a notice (the “Fundamental
Change Notice”) of the occurrence of such Fundamental Change and of
the repurchase right at the option of the holders arising as a result
thereof.  Such mailing shall be by first
class mail.  The notice, if mailed in
the manner herein provided, shall be conclusively presumed to have been duly
given, whether or not the holder receives such notice.  If the Company shall give such notice, the
Company shall also deliver a copy of the Fundamental Change Company Notice to
the Trustee at such time as it is

 

19

 

mailed to Noteholders.  Concurrently with the mailing of any
Fundamental Change Notice, the Company shall issue a press release announcing
such Fundamental Change referred to in the Fundamental Change Notice, the form
and content of which press release shall be determined by the Company in its
sole discretion.  The failure to issue
any such press release or any defect therein shall not affect the validity of
the Fundamental Change Notice or any proceedings for the repurchase of any Note
which any Noteholder may elect to have the Company repurchase as provided in
this Section 3.05.

 

Each Fundamental Change Notice shall specify
the circumstances constituting the Fundamental Change, the Fundamental Change
Repurchase Date, the price at which the Company shall be obligated to
repurchase Notes, that the holder must exercise the repurchase right on or
prior to the close of business on the Fundamental Change Repurchase Date (the “Fundamental Change Expiration Time”), that the
holder shall have the right to withdraw any Notes surrendered prior to the
Fundamental Change Expiration Time, a description of the procedure which a
Noteholder must follow to exercise such repurchase right and to withdraw any
surrendered Notes, the place or places where the holder is to surrender such
holder’s Notes, the amount of interest accrued on each Note to the Fundamental
Change Repurchase Date and the CUSIP number or numbers of the Notes (if then
generally in use).

 

No failure of the Company to give the
foregoing notices and no defect therein shall limit the Noteholders’ repurchase
rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 3.05.

 

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

 

(d)   On
or prior to the Fundamental Change Repurchase Date, the Company will deposit
with the Trustee or with one or more paying agents (or, if the Company is
acting as its own paying agent, set aside, segregate and hold in trust as
provided in Section 4.04) an amount of money sufficient to repurchase on the
Fundamental Change Repurchase Date all the Notes to be repurchased on such date
at the appropriate repurchase price, together with accrued interest to, but
excluding, the Fundamental Change Repurchase Date; provided that if such
payment is made on the Fundamental Change Repurchase Date it must be received
by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City
time, on such date. Payment for Notes surrendered for repurchase (and not
withdrawn) prior to the Fundamental Change Expiration Time will be made
promptly (but in no event more than five (5) Business Days) following the
Fundamental Change Repurchase Date by mailing checks for the amount payable to
the holders of such Notes entitled thereto as they shall appear in the Note
register.

 

20

 

(e)   In
the case of a reclassification, change, consolidation, merger, combination, sale
or conveyance to which Section 14.06 applies, in which the Common Stock of the
Company is changed or exchanged as a result into the right to receive stock,
securities or other property or assets (including cash), which includes shares
of Common Stock of the Company or shares of common stock of another Person that
are, or upon issuance will be, traded on a United States national securities
exchange or approved for trading on an established automated over-the-counter
trading market in the United States and such shares constitute at the time such
change or exchange becomes effective in excess of 50% of the aggregate fair
market value of such stock, securities or other property or assets (including
cash) (as determined by the Company, which determination shall be conclusive
and binding), then the Person formed by such consolidation or resulting from
such merger or which acquires such assets, as the case may be, shall execute
and deliver to the Trustee a supplemental indenture (accompanied by an Opinion
of Counsel that such supplemental indenture complies with the Trust Indenture
Act as in force at the date of execution of such supplemental indenture)
modifying the provisions of this Indenture relating to the right of holders of
the Notes to cause the Company to repurchase the Notes following a Fundamental
Change, including without limitation the applicable provisions of this Section
3.05 and the definitions of Common Stock and Fundamental Change, as
appropriate, as determined in good faith by the Company (which determination
shall be conclusive and binding), to make such provisions apply to such other
Person if different from the Company and the common stock issued by such Person
(in lieu of the Company and the Common Stock of the Company).

 

(f)    The
Company will comply with the provisions of Rule 13e-4 and any other tender
offer rules under the Exchange Act to the extent then applicable in connection
with the repurchase rights of the holders of Notes in the event of a
Fundamental Change.

 

Section 3.06.  Repurchase
of Notes by the Company at Option of the Holder.  Except as otherwise provided in Section
3.05, the Holder may not require the Company to repurchase the Notes.

 

ARTICLE 4

 

PARTICULAR COVENANTS OF THE COMPANY

 

Section 4.01. 
Payment of Principal and Interest.  The
Company covenants and agrees that it will duly and punctually pay or cause to
be paid the principal of (including the repurchase price upon repurchase
pursuant to Article 3), and interest, on each of the Notes at the places, at
the respective times and in the manner provided herein and in the Notes.  The Company will pay Liquidated Damages, if
any, in the same manner on the dates and in the amounts set forth in the
Registration Rights Agreement.

 

Section 4.02. 
Maintenance of Office or Agency.  The
Company will maintain an office or agency in the Borough of Manhattan, The City
of New York, where the Notes may be surrendered for registration of transfer or
exchange or for presentation for payment or for conversion or repurchase and
where notices and demands to or upon the Company in respect of the Notes and
this Indenture may be served.  The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency not designated

 

21

 

or appointed by the
Trustee.  If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office or the
principal corporate trust office of the Trustee in the Borough of Manhattan
which office is located as of the date hereof at 101 Barclay Street, New York,
New York 10286.

 

The Company may also from time to time
designate co-registrars and one or more offices or agencies where the Notes may
be presented or surrendered for any or all such purposes and may from time to
time rescind such designations.  The
Company will give prompt written notice of any such designation or rescission
and of any change in the location of any such other office or agency.

 

The Company hereby initially designates the
Trustee as paying agent, Note registrar, Custodian and conversion agent and
each of the Corporate Trust Office and the office of agency of the Trustee in
the Borough of Manhattan, shall be considered as one such office or agency of
the Company for each of the aforesaid purposes.

 

So long as the Trustee is the Note registrar,
the Trustee agrees to mail, or cause to be mailed, the notices set forth in
Section 7.10(a) and the third paragraph of Section 7.11.  If co-registrars have been appointed in
accordance with this Section, the Trustee shall mail such notices only to the
Company and the holders of Notes it can identify from its records.

 

Section 4.03. 
Appointments to Fill Vacancies in
Trustee’s Office.  The Company, whenever necessary
to avoid or fill a vacancy in the office of Trustee, will appoint, in the
manner provided in Section 7.10, a Trustee, so that there shall at all times be
a Trustee hereunder.

 

Section 4.04. 
Provisions as to Paying Agent. 
(a)  If the Company shall
appoint a paying agent other than the Trustee, or if the Trustee shall appoint
such a paying agent, the Company will cause such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section 4.04:

 

(1)           that it will hold all sums held by it
as such agent for the payment of the principal of or interest on the Notes
(whether such sums have been paid to it by the Company or by any other obligor
on the Notes) in trust for the benefit of the holders of the Notes;

 

(2)           that it will give the Trustee notice
of any failure by the Company (or by any other obligor on the Notes) to make
any payment of the principal of or interest on the Notes when the same shall be
due and payable; and

 

(3)           that at any time during the
continuance of an Event of Default, upon request of the Trustee, it will
forthwith pay to the Trustee all sums so held in trust.

 

The Company shall, on or before each due date
of the principal of or interest on the Notes, deposit with the paying agent a
sum (in funds which are immediately available on the due date for such payment)
sufficient to pay such principal or interest, and (unless such paying agent is
the Trustee) the Company will promptly notify the Trustee of any failure to
take such action;

 

22

 

provided that if
such deposit is made on the due date, such deposit shall be received by the
paying agent by 10:00 a.m. New York City time, on such date.

 

(b)   If
the Company shall act as its own paying agent, it will, on or before each due
date of the principal of or interest on the Notes, set aside, segregate and
hold in trust for the benefit of the holders of the Notes a sum sufficient to
pay such principal or interest so becoming due and will promptly notify the
Trustee of any failure to take such action and of any failure by the Company (or
any other obligor under the Notes) to make any payment of the principal of or
interest on the Notes when the same shall become due and payable.

 

(c)   Anything
in this Section 4.04 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this
Indenture, or for any other reason, pay or cause to be paid to the Trustee all
sums held in trust by the Company or any paying agent hereunder as required by
this Section 4.04, such sums to be held by the Trustee upon the trusts herein
contained and upon such payment by the Company or any paying agent to the
Trustee, the Company or such paying agent shall be released from all further
liability with respect to such sums.

 

(d)   Anything
in this Section 4.04 to the contrary notwithstanding, the agreement to hold
sums in trust as provided in this Section 4.04 is subject to Sections 12.03 and
12.04.

 

The Trustee shall not be responsible for the
actions of any other paying agents (including the Company if acting as its own
paying agent) and shall have no control of any funds held by such other paying
agents.

 

Section 4.05. 
Existence.  Subject
to Article 11, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and rights (charter
and statutory); provided that the Company shall not be required to preserve
any such right if the Company shall determine that the preservation thereof is
no longer desirable in the conduct of the business of the Company and that the
loss thereof is not disadvantageous in any material respect to the Noteholders.

 

Section 4.06. 
Maintenance of Properties.  The
Company will cause all properties used or useful in the conduct of its business
or the business of any Significant Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided that nothing in
this Section shall prevent the Company from discontinuing the operation or
maintenance of any of such properties if such discontinuance is, in the
judgment of the Company, desirable in the conduct of its business or the
business of any subsidiary and not disadvantageous in any material respect to
the Noteholders.

 

Section 4.07. 
Payment of Taxes and Other Claims.  The
Company will pay or discharge, or cause to be paid or discharged, before the
same may become delinquent, (i) all taxes, assessments and governmental charges
levied or imposed upon the Company or any

 

23

 

Significant Subsidiary or upon
the income, profits or property of the Company or any Significant Subsidiary,
(ii) all claims for labor, materials and supplies which, if unpaid, might by
law become a lien or charge upon the property of the Company or any Significant
Subsidiary and (iii) all stamp taxes and other duties, if any, which may be
imposed by the United States or any political subdivision thereof or therein in
connection with the issuance, transfer, exchange, conversion or repurchase of
any Notes or with respect to this Indenture; provided that, in the case of clauses (i)
and (ii), the Company shall not be required to pay or discharge or cause to be
paid or discharged any such tax, assessment, charge or claim (A) if the failure
to do so will not, in the aggregate, have a material adverse impact on the
Company, or (B) if the amount, applicability or validity is being contested in
good faith by appropriate proceedings.

 

Section 4.08. 
Rule 144A Information Requirement.  Within
the period prior to the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any successor
provision), the Company covenants and agrees that it shall, during any period
in which it is not subject to Section 13 or 15(d) under the Exchange Act, make
available to any holder or beneficial holder of Notes or any Common Stock
issued upon conversion thereof which continue to be Restricted Securities in
connection with any sale thereof and any prospective purchaser of Notes or such
Common Stock designated by such holder or beneficial holder, the information
required pursuant to Rule 144A(d)(4) under the Securities Act upon the request
of any holder or beneficial holder of the Notes or such Common Stock and it will
take such further action as any holder or beneficial holder of such Notes or
such Common Stock may reasonably request, all to the extent required from time
to time to enable such holder or beneficial holder to sell its Notes or Common
Stock without registration under the Securities Act within the limitation of
the exemption provided by Rule 144A, as such Rule may be amended from time to
time.  Upon the request of any holder or
any beneficial holder of the Notes or such Common Stock, the Company will deliver
to such holder a written statement as to whether it has complied with such
requirements.

 

Section 4.09. 
Stay, Extension and Usury Laws.  The
Company covenants (to the extent that it may lawfully do so) that it shall not
at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the
principal of or interest on the Notes as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture and the Company (to the extent it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been
enacted.

 

Section 4.10.  Compliance Certificate.  The
Company shall deliver to the Trustee, within one hundred twenty (120) days
after the end of each fiscal year of the Company, a certificate signed by
either the principal executive officer, principal financial officer or principal
accounting officer of the Company, stating whether or not to the best knowledge
of the signer thereof the Company is in default in the performance and
observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement

 

24

 

of notice provided hereunder)
and, if the Company shall be in default, specifying all such defaults and the
nature and the status thereof of which the signer may have knowledge.

 

The Company will deliver to the Trustee,
forthwith upon becoming aware of (i) any default in the performance or
observance of any covenant, agreement or condition contained in this Indenture,
or (ii) any Event of Default, an Officers’ Certificate specifying with
particularity such default or Event of Default and further stating what action
the Company has taken, is taking or proposes to take with respect thereto.

 

Any notice required to be given under this
Section 4.10 shall be delivered to a Responsible Officer of the Trustee at its
Corporate Trust Office.

 

Section 4.11. 
Liquidated Damages Notice.  In
the event that the Company is required to pay Liquidated Damages to holders of
Notes pursuant to the Registration Rights Agreement, the Company will provide
written notice (“Liquidated Damages Notice”) to the Trustee of its obligation
to pay Liquidated Damages no later than fifteen (15) days prior to the proposed
payment date for the Liquidated Damages, and the Liquidated Damages Notice
shall set forth the amount of Liquidated Damages to be paid by the Company on
such payment date.  The Trustee shall
not at any time be under any duty or responsibility to any holder of Notes to
determine the Liquidated Damages, or with respect to the nature, extent or calculation
of the amount of Liquidated Damages when made, or with respect to the method
employed in such calculation of the Liquidated Damages.

 

ARTICLE 5

 

NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

 

Section 5.01. 
Noteholders’ Lists.  The
Company covenants and agrees that it will furnish or cause to be furnished to
the Trustee, semiannually, not more than fifteen (15) days after each May 1 and
November 1 in each year beginning with November 15, 2003, and at such other
times as the Trustee may request in writing, within thirty (30) days after
receipt by the Company of any such request (or such lesser time as the Trustee
may reasonably request in order to enable it to timely provide any notice to be
provided by it hereunder), a list in such form as the Trustee may reasonably
require of the names and addresses of the holders of Notes as of a date not
more than fifteen (15) days (or such other date as the Trustee may reasonably
request in order to so provide any such notices) prior to the time such
information is furnished, except that no such list need be furnished by the
Company to the Trustee so long as the Trustee is acting as the sole Note
registrar.

 

Section 5.02. 
Preservation and Disclosure of Lists. 
(a)  The Trustee shall
preserve, in as current a form as is reasonably practicable, all information as
to the names and addresses of the holders of Notes contained in the most recent
list furnished to it as provided in Section 5.01 or maintained by the Trustee
in its capacity as Note registrar or co-registrar in respect of the Notes, if
so acting.  The Trustee may destroy any
list furnished to it as provided in Section 5.01 upon receipt of a new list so
furnished.

 

25

 

(b)   The
rights of Noteholders to communicate with other holders of Notes with respect
to their rights under this Indenture or under the Notes, and the corresponding
rights and duties of the Trustee, shall be as provided by the Trust Indenture
Act.

 

(c)   Every
Noteholder, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of
them shall be held accountable by reason of any disclosure of information as to
names and addresses of holders of Notes made pursuant to the Trust Indenture
Act.

 

Section 5.03. 
Reports by Trustee. 
(a)  Within sixty (60)
days after May 15 of each year commencing with the year 2004, the Trustee shall
transmit to holders of Notes such reports dated as of May 15 of the year in which
such reports are made concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto.

 

(b)   A
copy of such report shall, at the time of such transmission to holders of
Notes, be filed by the Trustee with each stock exchange and automated quotation
system upon which the Notes are listed and with the Company.  The Company will promptly notify the Trustee
in writing when the Notes are listed on any stock exchange or automated
quotation system or delisted therefrom.

 

Section 5.04. 
Reports by Company.  The
Company shall file with the Trustee (and the Commission if at any time after
the Indenture becomes qualified under the Trust Indenture Act), and transmit to
holders of Notes, such information, documents and other reports and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at
the times and in the manner provided pursuant to such Act, whether or not the
Notes are governed by such Act; provided that any such information,
documents or reports required to be filed with the Commission pursuant to
Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within
fifteen (15) days after the same is so required to be filed with the
Commission.  Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s
Certificate).

 

ARTICLE 6

 

REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

 

Section 6.01. 
Events of Default.  In
case one or more of the following Events of Default (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body) shall have occurred and be continuing:

 

26

 

(a)           default in the
payment of any installment of interest (including Liquidated Damages) upon any
of the Notes,  as and when the same
shall become due and payable, and continuance of such default for a period of
thirty (30) days; or

 

(b)           default in the
payment of the principal of any of the Notes as and when the same shall become
due and payable either at maturity or in connection with any repurchase or
otherwise, pursuant to Article 3, by acceleration or otherwise; or

 

(c)           default in the
payment of principal when due or a default resulting in acceleration of any of
the Company’s other indebtedness for borrowed money where the aggregate
principal amount with respect to which the default or acceleration has occurred
exceeds $10 million, and such acceleration has not been rescinded or annulled
within a period of thirty (30) days; or

 

(d)           failure on the part
of the Company duly to observe or perform any other of the covenants or
agreements on the part of the Company in the Notes or in this Indenture (other
than a covenant or agreement a default in whose performance or whose breach is
elsewhere in this Section 6.01 specifically dealt with) continued for a period
of sixty (60) days after the date on which written notice of such failure,
requiring the Company to remedy the same, shall have been given to the Company
by the Trustee, or the Company and a Responsible Officer of the Trustee by the
holders of at least twenty-five percent (25%) in aggregate principal amount of
the Notes at the time outstanding determined in accordance with Section 8.04;
or

 

(e)           the Company shall
commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to the Company or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company or any substantial part of the property of the
Company, or shall consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding
commenced against the Company, or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become
due; or

 

(f)            an involuntary case
or other proceeding shall be commenced against the Company seeking liquidation,
reorganization or other relief with respect to the Company or its debts under
any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company or any substantial part of the property of the
Company, and such involuntary case or other proceeding shall remain undismissed
and unstayed for a period of ninety (90) consecutive days;

 

then, and in each and every
such case (other than an Event of Default specified in Section 6.01(e) or
6.01(f)), unless the principal of all of the Notes shall have already become
due and payable, either the Trustee or the holders of not less than twenty-five
percent (25%) in aggregate principal amount of the Notes then outstanding
hereunder determined in accordance with Section 8.04, by

 

27

 

notice in writing to the
Company (and to the Trustee if given by Noteholders), may declare the principal
of all the Notes and the interest accrued thereon to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, anything in this Indenture or in the Notes
contained to the contrary notwithstanding. 
If an Event of Default specified in Section 6.01(e) or 6.01(f) occurs,
the principal of all the Notes and the interest accrued thereon shall be
immediately and automatically due and payable without necessity of further
action.  This provision, however, is
subject to the conditions that if, at any time after the principal of the Notes
shall have been so declared due and payable, and before any judgment or decree
for the payment of the monies due shall have been obtained or entered as
hereinafter provided, the Company shall pay or shall deposit with the Trustee a
sum sufficient to pay all matured installments of interest upon all Notes and
the principal of any and all Notes which shall have become due otherwise than
by acceleration (with interest on overdue installments of interest (to the
extent that payment of such interest is enforceable under applicable law) and
on such principal at the rate borne by the Notes, to the date of such payment
or deposit) and amounts due to the Trustee pursuant to Section 7.06, and if any
and all defaults under this Indenture, other than the nonpayment of principal
of, and accrued interest on, Notes which shall have become due by acceleration,
shall have been cured or waived pursuant to Section 6.07, then and in every
such case the holders of a majority in aggregate principal amount of the Notes
then outstanding, by written notice to the Company and to the Trustee, may
waive all defaults or Events of Default and rescind and annul such declaration
and its consequences; but no such waiver or rescission and annulment shall
extend to or shall affect any subsequent default or Event of Default, or shall
impair any right consequent thereon. 
The Company shall notify in writing a Responsible Officer of the Trustee,
promptly upon becoming aware thereof, of any Event of Default.

 

In case the Trustee shall have proceeded to
enforce any right under this Indenture and such proceedings shall have been
discontinued or abandoned because of such waiver or rescission and annulment or
for any other reason or shall have been determined adversely to the Trustee,
then and in every such case the Company, the holders of Notes, and the Trustee
shall be restored respectively to their several positions and rights hereunder,
and all rights, remedies and powers of the Company, the holders of Notes, and
the Trustee shall continue as though no such proceeding had been taken.

 

Section 6.02. 
Payments of Notes on Default; Suit
Therefor.  The Company covenants that (a) in
case default shall be made in the payment of any installment of interest upon
any of the Notes as and when the same shall become due and payable, and such
default shall have continued for a period of thirty (30) days, or (b) in case
default shall be made in the payment of the principal of any of the Notes as
and when the same shall have become due and payable, whether at maturity of the
Notes or in connection with any repurchase of the Notes, by acceleration or
otherwise, then, upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the holders of the Notes, the whole amount that
then shall have become due and payable on all such Notes for principal or
interest, as the case may be, with interest upon the overdue principal and (to
the extent that payment of such interest is enforceable under applicable law)
upon the overdue installments of interest at the rate borne by the Notes, plus
1% and, in addition thereto, such further amount as shall be sufficient to
cover the costs and expenses of collection, including reasonable compensation
to the Trustee, its agents, attorneys

 

28

 

and counsel, and all other
amounts due the Trustee under Section 7.06. 
Until such demand by the Trustee, the Company may pay the principal of,
and interest on, the Notes to the registered holders, whether or not the Notes
are overdue.

 

In case the Company shall fail forthwith to
pay such amounts upon such demand, the Trustee, in its own name and as trustee
of an express trust, shall be entitled and empowered to institute any actions
or proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company
or any other obligor on the Notes and collect in the manner provided by law out
of the property of the Company or any other obligor on the Notes wherever
situated the monies adjudged or decreed to be payable.

 

In case there shall be pending proceedings for
the bankruptcy or for the reorganization of the Company or any other obligor on
the Notes under Title 11 of the United States Code, or any other applicable
law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Company or such other obligor, the property of the
Company or such other obligor, or in the case of any other judicial proceedings
relative to the Company or such other obligor upon the Notes, or to the
creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Notes shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand pursuant to the provisions of
this Section 6.02, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal and interest owing and unpaid in respect of the Notes, and,
in case of any judicial proceedings, to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the
claims of the Trustee and of the Noteholders allowed in such judicial
proceedings relative to the Company or any other obligor on the Notes, its or
their creditors, or its or their property, and to collect and receive any
monies or other property payable or deliverable on any such claims, and to
distribute the same after the deduction of any amounts due the Trustee under
Section 7.06, and any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar official is hereby authorized
by each of the Noteholders to make such payments to the Trustee, and, in the
event that the Trustee shall consent to the making of such payments directly to
the Noteholders, to pay to the Trustee any amount due it for reasonable
compensation, expenses, advances and disbursements, including counsel fees and
expenses incurred by it up to the date of such distribution.  To the extent that such payment of
reasonable compensation, expenses, advances and disbursements out of the estate
in any such proceedings shall be denied for any reason, payment of the same
shall be secured by a lien on, and shall be paid out of, any and all
distributions, dividends, monies, securities and other property which the
holders of the Notes may be entitled to receive in such proceedings, whether in
liquidation or under any plan of reorganization or arrangement or otherwise.

 

All rights of action and of asserting claims
under this Indenture, or under any of the Notes, may be enforced by the Trustee
without the possession of any of the Notes, or the production thereof at any
trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express

 

29

 

trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the holders of the Notes.

 

In any proceedings brought by the Trustee (and
in any proceedings involving the interpretation of any provision of this
Indenture to which the Trustee shall be a party) the Trustee shall be held to
represent all the holders of the Notes, and it shall not be necessary to make
any holders of the Notes parties to any such proceedings.

 

Section 6.03. 
Application of Monies Collected by
Trustee.  Any monies collected by the
Trustee pursuant to this Article 6 shall be applied in the order following, at
the date or dates fixed by the Trustee for the distribution of such monies,
upon presentation of the several Notes, and stamping thereon the payment, if
only partially paid, and upon surrender thereof, if fully paid:

 

FIRST: To the
payment of all amounts due the Trustee under Section 7.06;

 

SECOND: In case
the principal of the outstanding Notes shall not have become due and be unpaid,
to the payment of interest on the Notes in default in the order of the maturity
of the installments of such interest, with interest (to the extent that such interest
has been collected by the Trustee) upon the overdue installments of interest at
the rate borne by the Notes, such payments to be made ratably to the Persons
entitled thereto;

 

THIRD: In case
the principal of the outstanding Notes shall have become due, by declaration or
otherwise, and be unpaid to the payment of the whole amount then owing and
unpaid upon the Notes for principal and interest, with interest on the overdue
principal and (to the extent that such interest has been collected by the Trustee)
upon overdue installments of interest at the rate borne by the Notes, and in
case such monies shall be insufficient to pay in full the whole amounts so due
and unpaid upon the Notes, then to the payment of such principal and interest
without preference or priority of principal, over interest, or of interest over
principal, or of any installment of interest over any other installment of
interest, or of any Note over any other Note, ratably to the aggregate of such
principal and accrued and unpaid interest; and

 

FOURTH: To the
payment of the remainder, if any, to the Company or any other Person lawfully
entitled thereto.

 

Section 6.04. 
Proceedings by Noteholder.  No
holder of any Note shall have any right by virtue of or by reference to any
provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture, or for the
appointment of a receiver, trustee, liquidator, custodian or other similar
official, or for any other remedy hereunder, unless such holder previously
shall have given to the Trustee written notice of an Event of Default and of
the continuance thereof, as hereinbefore provided, and unless also the holders
of not less than twenty-five percent (25%) in aggregate principal amount of the
Notes then outstanding shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
and shall have offered to the Trustee such

 

30

 

reasonable security or
indemnity as it may require against the costs, expenses and liabilities to be
incurred therein or thereby, and the Trustee for sixty (60) days after its
receipt of such notice, request and offer of indemnity, shall have neglected or
refused to institute any such action, suit or proceeding and no direction
inconsistent with such written request shall have been given to the Trustee
pursuant to Section 6.07; it being understood and intended, and being expressly
covenanted by the taker and holder of every Note with every other taker and
holder and the Trustee, that no one or more holders of Notes shall have any
right in any manner whatever by virtue of or by reference to any provision of
this Indenture to affect, disturb or prejudice the rights of any other holder
of Notes, or to obtain or seek to obtain priority over or preference to any
other such holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
holders of Notes (except as otherwise provided herein).  For the protection and enforcement of this
Section 6.04, each and every Noteholder and the Trustee shall be entitled to
such relief as can be given either at law or in equity.

 

Notwithstanding any other provision of this
Indenture and any provision of any Note, the right of any holder of any Note to
receive payment of the principal of (including the repurchase price upon
repurchase pursuant to Article 6), and accrued interest on such Note, on or
after the respective due dates expressed in such Note or in the event of
repurchase, or to institute suit for the enforcement of any such payment on or
after such respective dates against the Company shall not be impaired or
affected without the consent of such holder.

 

Anything in this Indenture or the Notes to the
contrary notwithstanding, the holder of any Note, without the consent of either
the Trustee or the holder of any other Note, in its own behalf and for its own
benefit, may enforce, and may institute and maintain any proceeding suitable to
enforce, its rights of conversion as provided herein.

 

Section 6.05. 
Proceedings by Trustee.  In
case of an Event of Default, the Trustee may, in its discretion, proceed to
protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as are necessary to protect and enforce any of
such rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant
or agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

 

Section 6.06. 
Remedies Cumulative and Continuing.  Except
as provided in Section 2.06, all powers and remedies given by this Article 6 to
the Trustee or to the Noteholders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any thereof or of any other powers and
remedies available to the Trustee or the holders of the Notes, by judicial
proceedings or otherwise, to enforce the performance or observance of the
covenants and agreements contained in this Indenture, and no delay or omission
of the Trustee or of any holder of any of the Notes to exercise any right or
power accruing upon any default or Event of Default occurring and continuing as
aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or any acquiescence therein, and, subject to the
provisions of Section 6.04, every power and remedy given by this Article 6 or
by law to the Trustee or to the

 

31

 

Noteholders may be exercised
from time to time, and as often as shall be deemed expedient, by the Trustee or
by the Noteholders.

 

Section 6.07.  Direction of
Proceedings and Waiver of Defaults by Majority of Noteholders.  The
holders of a majority in aggregate principal amount of the Notes at the time
outstanding determined in accordance with Section 8.04 shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee;
provided that (a) such direction shall not be in conflict with any
rule of law or with this Indenture, (b) the Trustee may take any other action
which is not inconsistent with such direction and (c) the Trustee may decline
to take any action that would benefit some Noteholder to the detriment of other
Noteholders.  The holders of a majority
in aggregate principal amount of the Notes at the time outstanding determined
in accordance with Section 8.04 may, on behalf of the holders of all of the
Notes, waive any past default or Event of Default hereunder and its
consequences except (i) a default in the payment of interest on, or the
principal of, the Notes, (ii) a failure by the Company to convert any Notes
into Common Stock, (iii) a default in the payment of the repurchase price
pursuant to Article 3, or (iv) a default in respect of a covenant or provisions
hereof which under Article 10 cannot be modified or amended without the consent
of the holders of each or all Notes then outstanding or affected thereby.  Upon any such waiver, the Company, the
Trustee and the holders of the Notes shall be restored to their former
positions and rights hereunder; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.  Whenever any default or Event
of Default hereunder shall have been waived as permitted by this Section 6.07,
said default or Event of Default shall for all purposes of the Notes and this
Indenture be deemed to have been cured and to be not continuing; but no such
waiver shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.

 

Section 6.08. 
Notice of Defaults.  The
Trustee shall, within ninety (90) days after a Responsible Officer of the
Trustee has knowledge of the occurrence of a default, mail to all Noteholders,
as the names and addresses of such holders appear upon the Note register,
notice of all defaults known to a Responsible Officer, unless such defaults
shall have been cured or waived before the giving of such notice; provided
that except in the case of default in the payment of the principal of, or
interest on, any of the Notes, the Trustee shall be protected in withholding
such notice if and so long as a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Noteholders.

 

Section 6.09. 
Undertaking to Pay Costs.  All
parties to this Indenture agree, and each holder of any Note by his acceptance
thereof shall be deemed to have agreed, that any court may, in its discretion,
require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken or omitted
by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; provided
that the provisions of this Section 6.09 (to the extent permitted by law) shall
not apply to any suit instituted by the Trustee, to any suit instituted by any
Noteholder, or group of Noteholders, holding in the aggregate more than

 

32

 

ten percent in principal amount
of the Notes at the time outstanding determined in accordance with Section
8.04, or to any suit instituted by any Noteholder for the enforcement of the
payment of the principal of, or interest on, any Note on or after the due date
expressed in such Note or to any suit for the enforcement of the right to
convert any Note in accordance with the provisions of Article 14.

 

ARTICLE 7

 

THE TRUSTEE

 

Section 7.01. 
Duties and Responsibilities of
Trustee.  The Trustee, prior to the
occurrence of an Event of Default and after the curing of all Events of Default
which may have occurred, undertakes to perform such duties and only such duties
as are specifically set forth in this Indenture.  In case an Event of Default has occurred (which has not been
cured or waived), the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his own affairs.

 

No provision of this Indenture shall be
construed to relieve the Trustee from liability for its own negligent action,
its own negligent failure to act or its own willful misconduct, except that:

 

(a)           prior to the
occurrence of an Event of Default and after the curing or waiving of all Events
of Default which may have occurred:

 

(i)            the duties and obligations of the
Trustee shall be determined solely by the express provisions of this Indenture
and the Trust Indenture Act, and the Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in
this Indenture and no implied covenants or obligations shall be read into this
Indenture and the Trust Indenture Act against the Trustee; and

 

(ii)           in the absence of bad faith and
willful misconduct on the part of the Trustee, the Trustee may conclusively
rely as to the truth of the statements and the correctness of the opinions
expressed therein, upon any certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture; but, in the case of any
such certificates or opinions which by any provisions hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the requirements
of this Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein);

 

(b)           the Trustee shall not
be liable for any error of judgment made in good faith by a Responsible Officer
or Officers of the Trustee, unless the Trustee was negligent in ascertaining
the pertinent facts;

 

33

 

(c)           the Trustee shall not
be liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the written direction of the holders of not less than
a majority in principal amount of the Notes at the time outstanding determined
as provided in Section 8.04 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture;

 

(d)           whether or not
therein provided, every provision of this Indenture relating to the conduct or
affecting the liability of, or affording protection to, the Trustee shall be
subject to the provisions of this Section;

 

(e)           the Trustee shall not
be liable in respect of any payment (as to the correctness of amount,
entitlement to receive or any other matters relating to payment) or notice
effected by the Company or any paying agent or any records maintained by any
co-registrar with respect to the Notes;

 

(f)            if any party fails
to deliver a notice relating to an event the fact of which, pursuant to this
Indenture, requires notice to be sent to the Trustee, the Trustee may
conclusively rely on its failure to receive such notice as reason to act as if
no such event occurred; and

 

(g)           the Trustee shall not
be deemed to have knowledge of any Event of Default hereunder unless a
Responsible Officer of the Trustee shall have been notified in writing of such
Event of Default by the Company or the holders of at least 10% in aggregate
principal amount of the Notes and such notice references the Notes and this
Indenture.

 

None of the provisions contained in this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

Section 7.02.  Reliance
on Documents, Opinions, Etc.  Except
as otherwise provided in Section 7.01:

 

(a)           the Trustee may
conclusively rely and shall be protected in acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, bond, debenture, note, coupon or other paper or document (whether in its
original or facsimile form) believed by it in good faith to be genuine and to
have been signed or presented by the proper party or parties;

 

(b)           any request,
direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in
respect thereof be herein specifically prescribed); and any resolution of the Board
of

 

34

 

Directors may
be evidenced to the Trustee by a copy thereof certified by the Secretary or an
Assistant Secretary of the Company;

 

(c)           the Trustee may
consult with counsel of its own selection and any advice or Opinion of Counsel
shall be full and complete authorization and protection in respect of any
action taken or omitted by it hereunder in good faith and in accordance with
such advice or Opinion of Counsel;

 

(d)           the Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request, order or direction of any of the Noteholders
pursuant to the provisions of this Indenture, unless such Noteholders shall
have offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities which may be incurred therein or
thereby;

 

(e)           the Trustee shall not
be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture or other paper or document,
but the Trustee may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney at the
sole cost of the Company and shall incur no liability or additional liability
of any kind by reason of such inquiry or investigation;

 

(f)            the Trustee may
execute any of the trusts or powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys and the Trustee shall not
be responsible for any misconduct or negligence on the part of any agent or
attorney appointed by it with due care hereunder;

 

(g)           the Trustee shall not
be liable for any action taken, suffered or omitted to be taken by it in good
faith and reasonably believed by it to be authorized or within the discretion
or rights or powers conferred upon it by this Indenture;

 

(h)           the rights,
privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder; and

 

(i)            the Trustee may
request that the Company deliver an Officers’ Certificate setting forth the names
of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any person authorized to sign an Officers’ Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded.

 

Section 7.03. 
No Responsibility for Recitals, Etc.  The recitals contained herein and
in the Notes (except in the Trustee’s certificate of authentication) shall be
taken as the

 

35

 

statements of the Company, and
the Trustee assumes no responsibility for the correctness of the same.  The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Notes.  The Trustee shall not be accountable for the
use or application by the Company of any Notes or the proceeds of any Notes
authenticated and delivered by the Trustee in conformity with the provisions of
this Indenture.

 

Section 7.04. 
Trustee, Paying Agents, Conversion
Agents or Registrar May Own Notes.  The Trustee, any
paying agent, any conversion agent or Note registrar, in its individual or any
other capacity, may become the owner or pledgee of Notes with the same rights
it would have if it were not Trustee, paying agent, conversion agent or Note
registrar.

 

Section 7.05. 
Monies to Be Held in Trust.  Subject
to the provisions of Section 12.04, all monies received by the Trustee shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received.  Money held by
the Trustee in trust hereunder need not be segregated from other funds except
to the extent required by law.  The
Trustee shall be under no liability for interest on any money received by it hereunder
except as may be agreed in writing from time to time by the Company and the
Trustee.

 

Section 7.06. 
Compensation and Expenses of Trustee.  The
Company covenants and agrees to pay to the Trustee from time to time, and the
Trustee shall be entitled to, such compensation for all services rendered by it
hereunder in any capacity (which shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust) as mutually
agreed to from time to time in writing between the Company and the Trustee, and
the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances reasonably incurred or made by
the Trustee in accordance with any of the provisions of this Indenture (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all Persons not regularly in its employ) except any such expense,
disbursement or advance as may arise from its negligence, willful misconduct or
bad faith.  The Company also covenants
to indemnify the Trustee and any predecessor Trustee (or any officer, director
or employee of the Trustee), in any capacity under this Indenture and its
agents and any authenticating agent for, and to hold them harmless against, any
and all loss, liability, damage, claim or expense including taxes (other than
taxes based on the income of the Trustee) incurred without negligence, willful
misconduct or bad faith on the part of the Trustee or such officers, directors,
employees and agent or authenticating agent, as the case may be, and arising
out of or in connection with the acceptance or administration of this trust or
in any other capacity hereunder, including the costs and expenses of defending
themselves against any claim (whether asserted by the Company, any holder or
any other Person) of liability in the premises.  The obligations of the Company under this Section 7.06 to
compensate or indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall be secured by a lien prior to that
of the Notes upon all property and funds held or collected by the Trustee as
such, except funds held in trust for the benefit of the holders of particular
Notes.  The obligation of the Company
under this Section shall survive the satisfaction and discharge of this
Indenture.

 

When the Trustee and its agents and any
authenticating agent incur expenses or render services after an Event of
Default specified in Section 6.01(d) or (e) with respect to the Company

 

36

 

occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any bankruptcy, insolvency or similar laws.

 

Section 7.07. 
Officers’ Certificate as Evidence.  Except
as otherwise provided in Section 7.01, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable
that a matter be proved or established prior to taking or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of bad faith or willful misconduct
on the part of the Trustee, be deemed to be conclusively proved and established
by an Officers’ Certificate delivered to the Trustee.

 

Section 7.08. 
Conflicting Interests of Trustee.  If
the Trustee has or shall acquire a conflicting interest within the meaning of
the Trust Indenture Act, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.

 

Section 7.09. 
Eligibility of Trustee.  There
shall at all times be a Trustee hereunder which shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000 (or if such Person is a member of a
bank holding company system, its bank holding company shall have a combined
capital and surplus of at least $50,000,000). 
If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 7.09, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

 

Section 7.10.  Resignation
or Removal of Trustee. 
(a)  The Trustee may at any time
resign by giving written notice of such resignation to the Company and to the
holders of Notes.  Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
by written instrument, in duplicate, executed by order of the Board of
Directors, one copy of which instrument shall be delivered to the resigning
Trustee and one copy to the successor trustee. 
If no successor trustee shall have been so appointed and have accepted
appointment sixty (60) days after the mailing of such notice of resignation to
the Noteholders, the resigning Trustee may, upon ten (10) Business Days’ notice
to the Company and the Noteholders, appoint a successor identified in such
notice or may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor trustee, or, if any Noteholder
who has been a bona fide holder of a Note or Notes for at least six (6) months
may, subject to the provisions of Section 6.09, on behalf of himself and all
others similarly situated, petition any such court for the appointment of a
successor trustee.  Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
appoint a successor trustee.

 

(b)   In
case at any time any of the following shall occur:

 

37

 

(i)            the Trustee shall fail to comply
with Section 7.08 after written request therefor by the Company or by any
Noteholder who has been a bona fide holder of a Note or Notes for at least six
(6) months; or

 

(ii)           the Trustee shall cease to be
eligible in accordance with the provisions of Section 7.09 and shall fail to
resign after written request therefor by the Company or by any such Noteholder;
or

 

(iii)          the Trustee shall become incapable of
acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation;

 

then, in any such case, the Company may
remove the Trustee and appoint a successor trustee by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, subject to the provisions of Section 6.09, any
Noteholder who has been a bona fide holder of a Note or Notes for at least six
(6) months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor trustee; provided that if no successor Trustee
shall have been appointed and have accepted appointment sixty (60) days after
either the Company or the Noteholders has removed the Trustee, or the Trustee
resigns, the Trustee so removed may petition, at the expense of the Company,
any court of competent jurisdiction for an appointment of a successor
trustee.  Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee.

 

(c)   The
holders of a majority in aggregate principal amount of the Notes at the time
outstanding may at any time remove the Trustee and nominate a successor trustee
which shall be deemed appointed as successor trustee unless, within ten (10)
days after notice to the Company of such nomination, the Company objects
thereto, in which case the Trustee so removed or any Noteholder, or if such
Trustee so removed or any Noteholder fails to act, the Company, upon the terms
and conditions and otherwise as in this Section 7.10(a) provided, may petition
any court of competent jurisdiction for an appointment of a successor trustee.

 

(d)   Any
resignation or removal of the Trustee and appointment of a successor trustee
pursuant to any of the provisions of this Section 7.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section
7.11.

 

Section 7.11. 
Acceptance by Successor Trustee.  Any
successor trustee appointed as provided in Section 7.10 shall execute,
acknowledge and deliver to the Company and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, duties and obligations of its predecessor hereunder,
with like effect as if originally named as trustee herein; but, nevertheless,
on the written request of the Company or of the successor trustee, the trustee
ceasing to act shall, upon payment of any amount then due it

 

38

 

pursuant to the provisions of
Section 7.06, execute and deliver an instrument transferring to such successor
trustee all the rights and powers of the trustee so ceasing to act.  Upon request of any such successor trustee,
the Company shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor trustee all such rights
and powers.  Any trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or
collected by such trustee as such, except for funds held in trust for the
benefit of holders of particular Notes, to secure any amounts then due it
pursuant to the provisions of Section 7.06.

 

No successor trustee shall accept appointment
as provided in this Section 7.11 unless, at the time of such acceptance, such
successor trustee shall be qualified under the provisions of Section 7.08 and
be eligible under the provisions of Section 7.09.

 

Upon acceptance of appointment by a successor
trustee as provided in this Section 7.11, the Company (or the former trustee,
at the written direction of the Company) shall mail or cause to be mailed
notice of the succession of such trustee hereunder to the holders of Notes at
their addresses as they shall appear on the Note register.  If the Company fails to mail such notice
within ten (10) days after acceptance of appointment by the successor trustee,
the successor trustee shall cause such notice to be mailed at the expense of
the Company.

 

Section 7.12. 
Succession by Merger.  Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee (including any trust created by this Indenture), shall be the successor
to the Trustee hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that in the case
of any corporation succeeding to all or substantially all of the corporate
trust business of the Trustee, such corporation shall be qualified under the
provisions of Section 7.08 and shall be eligible under the provisions of
Section 7.09.

 

In case at the time such successor to the
Trustee shall succeed to the trusts created by this Indenture, any of the Notes
shall have been authenticated but not delivered, any such successor to the
Trustee may adopt the certificate of authentication of any predecessor trustee
or authenticating agent appointed by such predecessor trustee, and deliver such
Notes so authenticated; and in case at that time any of the Notes shall not
have been authenticated, any successor to the Trustee or any authenticating
agent appointed by such successor trustee may authenticate such Notes in the
name of the successor trustee; and in all such cases such certificates shall
have the full force that is provided in the Notes or in this Indenture; provided
that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Notes in the name of any predecessor Trustee shall
apply only to its successor or successors by merger, conversion or
consolidation.

 

Section 7.13. 
Preferential Collection of Claims.  If
and when the Trustee shall be or become a creditor of the Company (or any other
obligor upon the Notes), the Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of the claims against the Company
(or any such other obligor).

 

39

 

ARTICLE 8

 

THE NOTEHOLDERS

 

Section 8.01. 
Action by Noteholders.  Whenever
in this Indenture it is provided that the holders of a specified percentage in
aggregate principal amount of the Notes may take any action (including the
making of any demand or request, the giving of any notice, consent or waiver or
the taking of any other action), the fact that at the time of taking any such
action, the holders of such specified percentage have joined therein may be
evidenced (a) by any instrument or any number of instruments of similar tenor
executed by Noteholders in person or by agent or proxy appointed in writing, or
(b) by the record of the holders of Notes voting in favor thereof at any
meeting of Noteholders duly called and held in accordance with the provisions
of Article 9, or (c) by a combination of such instrument or instruments and any
such record of such a meeting of Noteholders. 
Whenever the Company or the Trustee solicits the taking of any action by
the holders of the Notes, the Company or the Trustee may fix in advance of such
solicitation, a date as the record date for determining holders entitled to
take such action.  The record date shall
be not more than fifteen (15) days prior to the date of commencement of
solicitation of such action.

 

Section 8.02. 
Proof of Execution by Noteholders.  Subject
to the provisions of Sections 7.01, 7.02 and 9.05, proof of the execution of
any instrument by a Noteholder or its agent or proxy shall be sufficient if
made in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee.  The holding of Notes shall be
proved by the registry of such Notes or by a certificate of the Note registrar.

 

The record of any Noteholders’ meeting shall
be proved in the manner provided in Section 9.06.

 

Section 8.03. 
Who Are Deemed Absolute Owners.  The
Company, the Trustee, any authenticating agent, any paying agent, any
conversion agent and any Note registrar may deem the Person in whose name such
Note shall be registered upon the Note register to be, and may treat it as, the
absolute owner of such Note (whether or not such Note shall be overdue and
notwithstanding any notation of ownership or other writing thereon made by any
Person other than the Company or any Note registrar) for the purpose of
receiving payment of or on account of the principal of and interest on such
Note, for conversion of such Note and for all other purposes; and neither the
Company nor the Trustee nor any authenticating agent nor any paying agent nor
any conversion agent nor any Note registrar shall be affected by any notice to
the contrary.  All such payments so made
to any holder for the time being, or upon his order, shall be valid, and, to
the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for monies payable upon any such Note.

 

Section 8.04. 
Company-owned Notes Disregarded.  In
determining whether the holders of the requisite aggregate principal amount of
Notes have concurred in any direction, consent, waiver or other action under
this Indenture, Notes which are owned by the Company or any other obligor on
the Notes or any Affiliate of the Company or any other obligor on the Notes
shall be disregarded and deemed not to be outstanding for the purpose of any
such determination;

 

40

 

provided that for
the purposes of determining whether the Trustee shall be protected in relying
on any such direction, consent, waiver or other action, only Notes which a
Responsible Officer knows are so owned shall be so disregarded.  Notes so owned which have been pledged in
good faith may be regarded as outstanding for the purposes of this Section 8.04
if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s
right to vote such Notes and that the pledgee is not the Company, any other
obligor on the Notes or any Affiliate of the Company or any such other
obligor.  In the case of a dispute as to
such right, any decision by the Trustee taken upon the advice of counsel shall
be full protection to the Trustee.  Upon
request of the Trustee, the Company shall furnish to the Trustee promptly an
Officers’ Certificate listing and identifying all Notes, if any, known by the
Company to be owned or held by or for the account of any of the above described
Persons, and, subject to Section 7.01, the Trustee shall be entitled to accept
such Officers’ Certificate as conclusive evidence of the facts therein set
forth and of the fact that all Notes not listed therein are outstanding for the
purpose of any such determination.

 

Section 8.05. 
Revocation of Consents, Future
Holders Bound.  At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 8.01, of the
taking of any action by the holders of the percentage in aggregate principal
amount of the Notes specified in this Indenture in connection with such action,
any holder of a Note which is shown by the evidence to be included in the Notes
the holders of which have consented to such action may, by filing written
notice with the Trustee at its Corporate Trust Office and upon proof of holding
as provided in Section 8.02, revoke such action so far as concerns such
Note.  Except as aforesaid, any such
action taken by the holder of any Note shall be conclusive and binding upon
such holder and upon all future holders and owners of such Note and of any
Notes issued in exchange or substitution therefor, irrespective of whether any
notation in regard thereto is made upon such Note or any Note issued in
exchange or substitution therefor.

 

ARTICLE 9

 

MEETINGS OF NOTEHOLDERS

 

Section 9.01. 
Purpose of Meetings.  A
meeting of Noteholders may be called at any time and from time to time pursuant
to the provisions of this Article 9 for any of the following purposes:

 

(1)           to give any notice to the Company or
to the Trustee or to give any directions to the Trustee permitted under this
Indenture, or to consent to the waiving of any default or Event of Default
hereunder and its consequences, or to take any other action authorized to be
taken by Noteholders pursuant to any of the provisions of Article 6;

 

(2)           to remove the Trustee and nominate a
successor trustee pursuant to the provisions of Article 7;

 

(3)           to consent to the execution of an
indenture or indentures supplemental hereto pursuant to the provisions of
Section 10.02; or

 

41

 

(4)           to take any other action authorized to
be taken by or on behalf of the holders of any specified aggregate principal
amount of the Notes under any other provision of this Indenture or under applicable
law.

 

Section 9.02. 
Call of Meetings by Trustee.  The
Trustee may at any time call a meeting of Noteholders to take any action
specified in Section 9.01, to be held at such time and at such place as the
Trustee shall determine.  Notice of
every meeting of the Noteholders, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting
and the establishment of any record date pursuant to Section 8.01, shall be
mailed to holders of Notes at their addresses as they shall appear on the Note
register.  Such notice shall also be
mailed to the Company.  Such notices
shall be mailed not less than twenty (20) nor more than ninety (90) days prior
to the date fixed for the meeting.

 

Any meeting of Noteholders shall be valid
without notice if the holders of all Notes then outstanding are present in
person or by proxy or if notice is waived before or after the meeting by the
holders of all Notes outstanding, and if the Company and the Trustee are either
present by duly authorized representatives or have, before or after the
meeting, waived notice.

 

Section 9.03. 
Call of Meetings by Company or
Noteholders.  In case at any time the Company,
pursuant to a resolution of its Board of Directors, or the holders of at least
ten percent (10%) in aggregate principal amount of the Notes then outstanding,
shall have requested the Trustee to call a meeting of Noteholders, by written
request setting forth in reasonable detail the action proposed to be taken at
the meeting, and the Trustee shall not have mailed the notice of such meeting
within twenty (20) days after receipt of such request, then the Company or such
Noteholders may determine the time and the place for such meeting and may call
such meeting to take any action authorized in Section 9.01, by mailing notice
thereof as provided in Section 9.02.

 

Section 9.04. 
Qualifications for Voting.  To
be entitled to vote at any meeting of Noteholders a person shall (a) be a
holder of one or more Notes on the record date pertaining to such meeting or
(b) be a person appointed by an instrument in writing as proxy by a holder of
one or more Notes on the record date pertaining to such meeting.  The only persons who shall be entitled to be
present or to speak at any meeting of Noteholders shall be the persons entitled
to vote at such meeting and their counsel and any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

 

Section 9.05. 
Regulations.  Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Noteholders, in regard
to proof of the holding of Notes and of the appointment of proxies, and in
regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall think
fit.

 

The Trustee shall, by an instrument in
writing, appoint a temporary chairman of the meeting, unless the meeting shall
have been called by the Company or by Noteholders as provided in Section 9.03,
in which case the Company or the Noteholders calling the meeting, as

 

42

 

the case may be, shall in like
manner appoint a temporary chairman.  A
permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the holders of a majority in principal amount of the Notes represented
at the meeting and entitled to vote at the meeting.

 

Subject to the provisions of Section 8.04, at
any meeting each Noteholder or proxyholder shall be entitled to one vote for
each $1,000 principal amount of Notes held or represented by him; provided
that no vote shall be cast or counted at any meeting in respect of any Note
challenged as not outstanding and ruled by the chairman of the meeting to be
not outstanding.  The chairman of the
meeting shall have no right to vote other than by virtue of Notes held by him
or instruments in writing as aforesaid duly designating him as the proxy to
vote on behalf of other Noteholders. 
Any meeting of Noteholders duly called pursuant to the provisions of
Section 9.02 or 9.03 may be adjourned from time to time by the holders of a
majority of the aggregate principal amount of Notes represented at the meeting,
whether or not constituting a quorum, and the meeting may be held as so
adjourned without further notice.

 

Section 9.06. 
Voting.  The
vote upon any resolution submitted to any meeting of Noteholders shall be by
written ballot on which shall be subscribed the signatures of the holders of
Notes or of their representatives by proxy and the outstanding principal amount
of the Notes held or represented by them. 
The permanent chairman of the meeting shall appoint two inspectors of
votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their
verified written reports in duplicate of all votes cast at the meeting.  A record in duplicate of the proceedings of
each meeting of Noteholders shall be prepared by the secretary of the meeting
and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one
or more persons having knowledge of the facts setting forth a copy of the
notice of the meeting and showing that said notice was mailed as provided in
Section 9.02.  The record shall show the
principal amount of the Notes voting in favor of or against any
resolution.  The record shall be signed
and verified by the affidavits of the permanent chairman and secretary of the
meeting and one of the duplicates shall be delivered to the Company and the
other to the Trustee to be preserved by the Trustee, the latter to have
attached thereto the ballots voted at the meeting.

 

Any record so signed and verified shall be
conclusive evidence of the matters therein stated.

 

Section 9.07. 
No Delay of Rights by Meeting.  Nothing
contained in this Article 9 shall be deemed or construed to authorize or
permit, by reason of any call of a meeting of Noteholders or any rights
expressly or impliedly conferred hereunder to make such call, any hindrance or
delay in the exercise of any right or rights conferred upon or reserved to the
Trustee or to the Noteholders under any of the provisions of this Indenture or
of the Notes.

 

43

 

ARTICLE 10

 

SUPPLEMENTAL INDENTURES

 

Section 10.01. 
Supplemental Indentures Without
Consent of Noteholders.  The Company, when authorized by
the resolutions of the Board of Directors, and the Trustee may, from time to
time, and at any time enter into an indenture or indentures supplemental hereto
for one or more of the following purposes:

 

(a)           make provision with
respect to the conversion rights of the holders of Notes pursuant to the
requirements of Section 14.06 and the repurchase obligations of the Company
pursuant to the requirements of Section 3.05(e);

 

(b)           to convey, transfer,
assign, mortgage or pledge to the Trustee as security for the Notes, any
property or assets;

 

(c)           to evidence the
succession of another Person to the Company, or successive successions, and the
assumption by the successor Person of the covenants, agreements and obligations
of the Company pursuant to Article 11;

 

(d)           to add to the
covenants of the Company such further covenants, restrictions or conditions as
the Board of Directors and the Trustee shall consider to be for the benefit of
the holders of Notes, and to make the occurrence, or the occurrence and
continuance, of a default in any such additional covenants, restrictions or
conditions a default or an Event of Default permitting the enforcement of all
or any of the several remedies provided in this Indenture as herein set forth; provided
that in respect of any such additional covenant, restriction or condition, such
supplemental indenture may provide for a particular period of grace after
default (which period may be shorter or longer than that allowed in the case of
other defaults) or may provide for an immediate enforcement upon such default
or may limit the remedies available to the Trustee upon such default;

 

(e)           to provide for the
issuance under this Indenture of Notes in coupon form (including Notes registrable
as to principal only) and to provide for exchangeability of such Notes with the
Notes issued hereunder in fully registered form and to make all appropriate
changes for such purpose;

 

(f)            to cure any
ambiguity or to correct or supplement any provision contained herein or in any
supplemental indenture that may be defective or inconsistent with any other
provision contained herein or in any supplemental indenture, or to make such
other provisions in regard to matters or questions arising under this Indenture
that shall not materially adversely affect the interests of the holders of the
Notes;

 

(g)           to evidence and
provide for the acceptance of appointment hereunder by a successor Trustee with
respect to the Notes;

 

44

 

(h)           to modify, eliminate
or add to the provisions of this Indenture to such extent as shall be necessary
to effect the qualifications of this Indenture under the Trust Indenture Act,
or under any similar federal statute hereafter enacted; or

 

(i)            to make any other
change that does not adversely affect any right of the holders of Notes under
this Indenture.

 

Upon the written request of the Company,
accompanied by a copy of the resolutions of the Board of Directors certified by
its Secretary or Assistant Secretary authorizing the execution of any
supplemental indenture, the Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, to make any
further appropriate agreements and stipulations that may be therein contained
and to accept the conveyance, transfer and assignment of any property
thereunder, but the Trustee shall not be obligated to, but may in its
discretion, enter into any supplemental indenture that affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental indenture authorized by the
provisions of this Section 10.01 may be executed by the Company and the Trustee
without the consent of the holders of any of the Notes at the time outstanding,
notwithstanding any of the provisions of Section 10.02.

 

Notwithstanding any other provision of the
Indenture or the Notes, the Registration Rights Agreement and the obligation to
pay Liquidated Damages thereunder may be amended, modified or waived in
accordance with the provisions of the Registration Rights Agreement.

 

Section 10.02. 
Supplemental Indenture with Consent
of Noteholders.  With the consent (evidenced as
provided in Article 8) of the holders of at least a majority in aggregate
principal amount of the Notes at the time outstanding, the Company, when
authorized by the resolutions of the Board of Directors, and the Trustee may,
from time to time and at any time, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or any
supplemental indenture or of modifying in any manner the rights of the holders
of the Notes; provided that no such supplemental indenture shall (i)
extend the fixed maturity of any Note, or reduce the rate or extend the time of
payment of interest thereon, or reduce the principal amount thereof, or reduce
any amount payable on repurchase thereof, or impair the right of any Noteholder
to institute suit for the payment thereof, or make the principal thereof or
interest thereon payable in any coin or currency other than that provided in
the Notes, or change the obligation of the Company to repurchase any Note on a
repurchase date in a manner adverse to the holders of Notes, or change the
obligation of the Company to repurchase any Note upon the happening of a
Fundamental Change in a manner adverse to the holders of Notes, or impair the
right to convert the Notes into Common Stock subject to the terms set forth
herein, including Section 14.06, without the consent of the holder of each Note
so affected, or modify any of the provisions of this Section 10.02 or Section
6.07, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the holder of each Note so affected, or change any obligation of the Company
to maintain an office or agency in the places and for the purposes set forth in
Section 4.02, or reduce the quorum or voting requirements set forth in Article
9 or (ii) reduce the aforesaid

 

45

 

percentage of Notes, the
holders of which are required to consent to any such supplemental indenture,
without the consent of the holders of all Notes then outstanding.

 

Upon the written request of the Company,
accompanied by a copy of the resolutions of the Board of Directors certified by
its Secretary or Assistant Secretary authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Noteholders as aforesaid, the Trustee shall join with the Company in
the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such supplemental indenture.

 

It shall not be necessary for the consent of
the Noteholders under this Section 10.02 to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.

 

Section 10.03. 
Effect of Supplemental Indenture.  Any
supplemental indenture executed pursuant to the provisions of this Article 10
shall comply with the Trust Indenture Act provided that this Section 10.03
shall not require such supplemental indenture or the Trustee to be qualified
under the Trust Indenture Act prior to the time such qualification is in fact
required under the terms of the Trust Indenture Act or the Indenture has been
qualified under the Trust Indenture Act, nor shall it constitute any admission
or acknowledgment by any party to such supplemental indenture that any such
qualification is required prior to the time such qualification is in fact
required under the terms of the Trust Indenture Act or the Indenture has been
qualified under the Trust Indenture Act. 
Upon the execution of any supplemental indenture pursuant to the provisions
of this Article 10, this Indenture shall be and be deemed to be modified and
amended in accordance therewith and the respective rights, limitation of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Company and the holders of Notes shall thereafter be determined, exercised
and enforced hereunder, subject in all respects to such modifications and
amendments and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

 

Section 10.04. 
Notation on Notes.  Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article 10 may bear a notation in form approved
by the Trustee as to any matter provided for in such supplemental
indenture.  If the Company or the
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may, at the Company’s
expense, be prepared and executed by the Company, authenticated by the Trustee
(or an authenticating agent duly appointed by the Trustee pursuant to Section
15.10) and delivered in exchange for the Notes then outstanding, upon surrender
of such Notes then outstanding.

 

Section 10.05. 
Evidence of Compliance of
Supplemental Indenture to Be Furnished to Trustee.  Prior
to entering into any supplemental indenture, the Trustee shall be provided with
an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that
any

 

46

 

supplemental indenture executed
pursuant hereto complies with the requirements of this Article 10.

 

ARTICLE 11

 

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

 

Section 11.01. 
Company May Consolidate on Certain
Terms.  Subject to the provisions of
Section 11.02, the Company shall not consolidate or merge with or into any
other Person or Persons (whether or not affiliated with the Company), nor shall
the Company or its successor or successors be a party or parties to successive
consolidations or mergers, nor shall the Company sell, convey, transfer or
lease the property and assets of the Company substantially as an entirety, to
any other Person (whether or not affiliated with the Company), unless: (i) the
Company is the surviving Person, or the resulting, surviving or transferee
Person is a corporation organized and existing under the laws of the United States
of America, any state thereof or the District of Columbia;  (ii) upon any such
consolidation, merger, sale, conveyance, transfer or lease, the due and
punctual payment of the principal of and interest on all of the Notes,
according to their tenor and the due and punctual performance and observance of
all of the covenants and conditions of this Indenture to be performed by the
Company, shall be expressly assumed, by supplemental indenture satisfactory in
form to the Trustee, executed and delivered to the Trustee by the Person (if
other than the Company) formed by such consolidation, or into which the Company
shall have been merged, or by the Person that shall have acquired or leased
such property, and such supplemental indenture shall provide for the applicable
conversion rights set forth in Section 14.06; and (iii) immediately after
giving effect to the transaction described above, no Event of Default, and no
event which, after notice or lapse of time or both, would become an Event of
Default, shall have happened and be continuing.

 

Section 11.02. 
Successor to Be Substituted.  In
case of any such consolidation, merger, sale, conveyance, transfer or lease and
upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the due and punctual payment of the principal of and interest on all of the
Notes and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Company, such successor
Person shall succeed to and be substituted for the Company, with the same
effect as if it had been named herein as the party of this first part.  Such successor Person thereupon may cause to
be signed, and may issue either in its own name or in the name of Nextel
Partners, Inc. any or all of the Notes, issuable hereunder that theretofore
shall not have been signed by the Company and delivered to the Trustee; and,
upon the order of such successor Person instead of the Company and subject to
all the terms, conditions and limitations in this Indenture prescribed, the
Trustee shall authenticate and shall deliver, or cause to be authenticated and
delivered, any Notes that previously shall have been signed and delivered by
the officers of the Company to the Trustee for authentication, and any Notes
that such successor Person thereafter shall cause to be signed and delivered to
the Trustee for that purpose.  All the
Notes so issued shall in all respects have the same legal rank and benefit under
this Indenture as the Notes theretofore or thereafter issued in accordance with
the terms of this Indenture as though all of such Notes had been issued at the
date of the execution hereof.  In the
event of any such consolidation, merger, sale, conveyance, transfer or lease,
the Person named as the

 

47

 

“Company” in the first
paragraph of this Indenture or any successor that shall thereafter have become
such in the manner prescribed in this Article 11 may be dissolved, wound up and
liquidated at any time thereafter and such Person shall be released from its
liabilities as obligor and maker of the Notes and from its obligations under
this Indenture.

 

In case of any such consolidation, merger,
sale, conveyance, transfer or lease, such changes in phraseology and form (but
not in substance) may be made in the Notes thereafter to be issued as may be
appropriate.

 

Section 11.03. 
Opinion of Counsel to Be Given
Trustee.  The Trustee shall receive an
Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any
such consolidation, merger, sale, conveyance, transfer or lease and any such
assumption complies with the provisions of this Article 11.

 

ARTICLE 12

 

SATISFACTION AND DISCHARGE OF INDENTURE

 

Section 12.01. 
Discharge of Indenture.  When
(a) the Company shall deliver to the Trustee for cancellation all Notes
theretofore authenticated (other than any Notes that have been destroyed, lost
or stolen and in lieu of or in substitution for which other Notes shall have
been authenticated and delivered) and not theretofore canceled, or (b) all the
Notes not theretofore canceled or delivered to the Trustee for cancellation
shall have become due and payable, or are by their terms to become due and
payable within one year or are to be called for repurchase within one year
under arrangements satisfactory to the Trustee for the giving of notice of
repurchase, and the Company shall deposit with the Trustee, in trust, funds
sufficient to pay at maturity or upon repurchase of all of the Notes (other
than any Notes that shall have been mutilated, destroyed, lost or stolen and in
lieu of or in substitution for which other Notes shall have been authenticated
and delivered) not theretofore canceled or delivered to the Trustee for
cancellation, including principal and interest due or to become due to such
date of maturity or repurchase date, as the case may be, accompanied by a
verification report, as to the sufficiency of the deposited amount, from an
independent certified accountant or other financial professional satisfactory
to the Trustee, and if the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company, then this Indenture shall cease to be of
further effect (except as to (i) remaining rights of registration of transfer,
substitution and exchange and conversion of Notes, (ii) rights hereunder of
Noteholders to receive payments of principal of and interest on, the Notes and
the other rights, duties and obligations of Noteholders, as beneficiaries
hereof with respect to the amounts, if any, so deposited with the Trustee and
(iii) the rights, obligations and immunities of the Trustee hereunder), and the
Trustee, on written demand of the Company accompanied by an Officers’ Certificate
and an Opinion of Counsel as required by Section 15.04 and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture; the Company, however, hereby
agrees to reimburse the Trustee for any costs or expenses thereafter reasonably
and properly incurred by the Trustee and to compensate the Trustee for any
services thereafter reasonably and properly rendered by the Trustee in
connection with this Indenture or the Notes.

 

48

 

Section 12.02. 
Deposited Monies to Be Held in Trust
by Trustee.  Subject to Section 12.04, all
monies deposited with the Trustee pursuant to Section 12.01 shall be held in
trust for the sole benefit of the Noteholders, and such monies shall be applied
by the Trustee to the payment, either directly or through any paying agent
(including the Company if acting as its own paying agent), to the holders of
the particular Notes for the payment or repurchase of which such monies have
been deposited with the Trustee, of all sums due and to become due thereon for
principal and interest.

 

Section 12.03. 
Paying Agent to Repay Monies Held.  Upon
the satisfaction and discharge of this Indenture, all monies then held by any
paying agent of the Notes (other than the Trustee) shall, upon written request
of the Company, be repaid to it or paid to the Trustee, and thereupon such
paying agent shall be released from all further liability with respect to such
monies.

 

Section 12.04. 
Return of Unclaimed Monies.  Subject
to the requirements of applicable law, any monies deposited with or paid to the
Trustee for payment of the principal of or interest on Notes and not applied
but remaining unclaimed by the holders of Notes for two years after the date
upon which the principal of or interest on such Notes, as the case may be,
shall have become due and payable, shall be repaid to the Company by the
Trustee on demand and all liability of the Trustee shall thereupon cease with
respect to such monies; and the holder of any of the Notes shall thereafter
look only to the Company for any payment that such holder may be entitled to
collect unless an applicable abandoned property law designates another Person.

 

Section 12.05. 
Reinstatement.  If
the Trustee or the paying agent is unable to apply any money in accordance with
Section 12.02 by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 12.01 until
such time as the Trustee or the paying agent is permitted to apply all such
money in accordance with Section 12.02; provided that if the Company makes any
payment of interest on or principal of any Note following the reinstatement of
its obligations, the Company shall be subrogated to the rights of the holders
of such Notes to receive such payment from the money held by the Trustee or
paying agent.

 

ARTICLE 13

 

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

Section 13.01. 
Indenture and Notes Solely Corporate
Obligations.  No recourse for the payment of
the principal of or interest on any Note, or for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in this Indenture or in any supplemental
indenture or in any Note, or because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder,
employee, agent, officer, director or subsidiary, as such, past, present or
future, of the Company or of any successor corporation, either directly or
through the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of

 

49

 

law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly understood that all
such liability is hereby expressly waived and released as a condition of, and
as a consideration for, the execution of this Indenture and the issue of the
Notes.

 

ARTICLE 14

 

CONVERSION OF NOTES

 

Section 14.01. 
Right to Convert.  (a)  Subject to and upon
compliance with the provisions of this Indenture, at any time prior to 5:00
p.m. (New York City time) on November 15, 2008, the holder of any Note shall
have the right, at such holder’s option, to convert the principal amount of the
Note, or any portion of such principal amount which is an integral multiple of
$1,000, into fully paid and non-assessable shares of Common Stock (as such
shares shall then be constituted) at the Conversion Rate in effect at such
time, by surrender of the Note so to be converted in whole or in part, together
with any required funds, under the circumstances described in this Section
14.01 and in the manner provided in Section 14.02.

 

(b)   A
Note in respect of which a holder is electing to exercise its option to require
repurchase upon a Fundamental Change pursuant to Section 3.05 may be converted
only if such holder withdraws its election in accordance with Section
3.05(b).  A holder of Notes is not
entitled to any rights of a holder of Common Stock until such holder has converted
his Notes to Common Stock, and only to the extent such Notes are deemed to have
been converted to Common Stock under this Article 14.

 

Section 14.02. 
Exercise of Conversion Privilege;
Issuance of Common Stock on Conversion; No Adjustment for Interest or Dividends.  In
order to exercise the conversion privilege with respect to any Note in
certificated form, the Company must receive at the office or agency of the
Company maintained for that purpose or, at the option of such holder, the
Corporate Trust Office, such Note with the original or facsimile of the form
entitled “Conversion
Notice” on the reverse thereof, duly completed and manually signed,
together with such Notes duly endorsed for transfer, accompanied by the funds,
if any, required by the penultimate paragraph of this Section 14.02.  Such notice shall also state the name or
names (with address or addresses) in which the certificate or certificates for
shares of Common Stock which shall be issuable on such conversion shall be
issued, and shall be accompanied by transfer or similar taxes, if required
pursuant to Section 14.07.

 

In order to exercise the conversion privilege
with respect to any interest in a Global Note, the beneficial holder must
complete, or cause to be completed, the appropriate instruction form for
conversion pursuant to the Depositary’s book-entry conversion program, deliver,
or cause to be delivered, by book-entry delivery an interest in such Global
Note, furnish appropriate endorsements and transfer documents if required by
the Company or the Trustee or conversion agent, and pay the funds, if any,
required by this Section 14.02 and any transfer taxes if required pursuant to
Section 14.07.

 

As promptly as practicable after satisfaction
of the requirements for conversion set forth above, subject to compliance with
any restrictions on transfer if shares issuable on conversion

 

50

 

are to be issued in a name
other than that of the Noteholder (as if such transfer were a transfer of the
Note or Notes (or portion thereof) so converted), the Company shall issue and
shall deliver to such Noteholder at the office or agency maintained by the
Company for such purpose pursuant to Section 4.02, a certificate or
certificates for the number of full shares of Common Stock issuable upon the
conversion of such Note or portion thereof as determined by the Company in
accordance with the provisions of this Article 14 and a check or cash in
respect of any fractional interest in respect of a share of Common Stock
arising upon such conversion, calculated by the Company as provided in Section
14.03.  In case any Note of a
denomination greater than $1,000 shall be surrendered for partial conversion,
and subject to Section 2.03, the Company shall execute and the Trustee shall
authenticate and deliver to the holder of the Note so surrendered, without
charge to him, a new Note or Notes in authorized denominations in an aggregate
principal amount equal to the unconverted portion of the surrendered Note.

 

Each conversion shall be deemed to have been
effected as to any such Note (or portion thereof) on the date on which the
requirements set forth above in this Section 14.02 have been satisfied as to
such Note (or portion thereof), and the Person in whose name any certificate or
certificates for shares of Common Stock shall be issuable upon such conversion
shall be deemed to have become on said date the holder of record of the shares
represented thereby; provided that any such surrender on any
date when the stock transfer books of the Company shall be closed shall
constitute the Person in whose name the certificates are to be issued as the
record holder thereof for all purposes on the next succeeding day on which such
stock transfer books are open, but such conversion shall be at the Conversion
Rate in effect on the date upon which such Note shall be surrendered.

 

Any Note or portion thereof surrendered for
conversion during the period from the close of business on the record date for
any interest payment date to the close of business on the Business Day preceding
the following interest payment date that has not been called for repurchase
during such period shall be accompanied by payment, in immediately available
funds or other funds acceptable to the Company, of an amount equal to the
interest otherwise payable on such interest payment date on the principal
amount being converted; provided that no such payment need be
made to the extent that there shall exist at the time of conversion a default
in the payment of interest on the Notes. 
Except as provided above in this Section 14.02, no payment or other
adjustment shall be made for interest accrued on any Note converted or for
dividends on any shares issued upon the conversion of such Note as provided in
this Article 14.

 

Upon the conversion of an interest in a Global
Note, the Trustee (or other conversion agent appointed by the Company), or the
Custodian at the direction of the Trustee (or other conversion agent appointed
by the Company), shall make a notation on such Global Note as to the reduction
in the principal amount represented thereby. 
The Company shall notify the Trustee in writing of any conversions of
Notes effected through any conversion agent other than the Trustee.

 

Upon the conversion of a Note, that portion of
the accrued but unpaid interest with respect to the converted Note shall not be
cancelled, extinguished or forfeited, but rather shall be deemed to be paid in
full to the holder thereof through delivery of the Common Stock (together with
the cash payment, if any, in lieu of fractional shares) in exchange for the
Note being

 

51

 

converted pursuant to the
provisions hereof; and the fair market value of such shares of Common Stock
(together with any such cash payment in lieu of fractional shares) shall be
treated as issued, to the extent thereof, first in exchange for and in
satisfaction of our obligation to pay the principal amount of the converted
Note, the accrued but unpaid interest, and the balance, if any, of such fair
market value of such Common Stock (and any such cash payment) shall be treated
as issued in exchange for and in satisfaction of the right to convert the Note
being converted pursuant to the provisions hereof.

 

Section 14.03. 
Cash Payments in Lieu of Fractional
Shares.  No fractional shares of Common
Stock or scrip certificates representing fractional shares shall be issued upon
conversion of Notes.  If more than one
Note shall be surrendered for conversion at one time by the same holder, the
number of full shares that shall be issuable upon conversion shall be computed
on the basis of the aggregate principal amount of the Notes (or specified
portions thereof to the extent permitted hereby) so surrendered.  If any fractional share of stock would be
issuable upon the conversion of any Note or Notes, the Company shall make an
adjustment and payment therefor in cash at the current market price thereof to
the holder of Notes.  The current market
price of a share of Common Stock shall be the Closing Sale Price on the last
Trading Day immediately preceding the day on which the Notes (or specified
portions thereof) are deemed to have been converted.

 

Section 14.04. 
Conversion Rate.  Each
$1,000 principal amount of the Notes shall be convertible into the number of
shares of Common Stock specified in the form of Note (herein called the “Conversion
Rate”) attached as Exhibit A hereto, subject to adjustment as
provided in this Article 14.

 

Section 14.05. 
Adjustment of Conversion Rate.  The
Conversion Rate shall be adjusted from time to time by the Company as follows:

 

(a)   In
case the Company shall hereafter issue Class A Common Stock as a dividend or
distribution on its Class A Common Stock, the Conversion Rate shall be
increased so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect at the opening of business on the date following the
date fixed for the determination of stockholders entitled to receive such
dividend or other distribution by a fraction,

 

(i)            the numerator of which shall be the
sum of the number of shares of Class A Common Stock outstanding at the
close of business on the date fixed for the determination of stockholders
entitled to receive such dividend or other distribution plus the total number
of shares of Common Stock constituting such dividend or other distribution; and

 

(ii)           the denominator of which shall be the
number of shares of Class A Common Stock outstanding at the close of business
on the date fixed for such determination,

 

such increase to become
effective immediately after the opening of business on the day following the
date fixed for such determination.  For
the purpose of this paragraph (a), the

 

52

 

number of shares of Class A
Common Stock at any time outstanding shall not include shares held in the
treasury of the Company.  The Company
will not pay any dividend or make any distribution on shares of Common Stock
held in the treasury of the Company.  If
any dividend or distribution of the type described in this Section 14.05(a) is
declared but not so paid or made, the Conversion Rate shall again be adjusted
to the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.

 

(b)   In
case the Company shall issue rights or warrants to all holders of its
outstanding shares of Common Stock entitling them (for a period expiring within
forty-five (45) days after the date fixed for determination of stockholders
entitled to receive such rights or warrants) to subscribe for or purchase
shares of Common Stock at a price per share less than the Current Market Price
on the date fixed for determination of stockholders entitled to receive such
rights or warrants, the Conversion Rate shall be increased so that the same
shall equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the date fixed for determination of stockholders entitled
to receive such rights or warrants by a fraction,

 

(i)            the numerator of which shall be the
number of shares of Common Stock outstanding on the date fixed for
determination of stockholders entitled to receive such rights or warrants plus
the total number of additional shares of Common Stock offered for subscription
or purchase, and

 

(ii)           the denominator of which shall be the
sum of the number of shares of Common Stock outstanding at the close of
business on the date fixed for determination of stockholders entitled to
receive such rights or warrants plus the number of shares that the aggregate
offering price of the total number of shares so offered would purchase at such
Current Market Price.

 

Such adjustment shall be successively made
whenever any such rights or warrants are issued, and shall become effective
immediately after the opening of business on the day following the date fixed
for determination of stockholders entitled to receive such rights or
warrants.  To the extent that shares of
Common Stock are not delivered after the expiration of such rights or warrants,
the Conversion Rate shall be readjusted to the Conversion Rate that would then
be in effect had the adjustments made upon the issuance of such rights or
warrants been made on the basis of delivery of only the number of shares of
Common Stock actually delivered.  If
such rights or warrants are not so issued, the Conversion Rate shall again be
adjusted to be the Conversion Rate that would then be in effect if such date
fixed for the determination of stockholders entitled to receive such rights or
warrants had not been fixed.  In
determining whether any rights or warrants entitle the holders to subscribe for
or purchase shares of Common Stock at less than such Current Market Price, and
in determining the aggregate offering price of such shares of Common Stock,
there shall be taken into account any consideration received by the Company for
such rights or warrants and any amount payable on exercise or conversion
thereof, the value of such consideration, if other than cash, to be determined
by the Board of Directors.

 

(c)   In
case outstanding shares of Class A Common Stock shall be subdivided into a
greater number of shares of Class A Common Stock, the Conversion Rate in effect
at the

 

53

 

opening of business on the day
following the day upon which such subdivision becomes effective shall be proportionately
increased, and conversely, in case outstanding shares of Class A Common
Stock shall be combined into a smaller number of shares of Class A Common
Stock, the Conversion Rate in effect at the opening of business on the day
following the day upon which such combination becomes effective shall be
proportionately reduced, such increase or reduction, as the case may be, to
become effective immediately after the opening of business on the day following
the day upon which such subdivision or combination becomes effective.

 

(d)   In
case the Company shall, by dividend or otherwise, distribute to all holders of
its Common Stock shares of any class of capital stock of the Company or
evidences of its indebtedness or assets (including cash or securities, but excluding
any rights or warrants referred to in Section 14.05(b), and excluding any
dividend or distribution referred to in Section 14.05(a) (any of the foregoing
hereinafter in this Section 14.05(d) called the “Securities”)), then, in each
such case (unless the Company elects to reserve such Securities for
distribution to the Noteholders upon the conversion of the Notes so that any
such holder converting Notes will receive upon such conversion, in addition to
the shares of Common Stock to which such holder is entitled, the amount and
kind of such Securities which such holder would have received if such holder
had converted its Notes into Common Stock immediately prior to the Record
Date), the Conversion Rate shall be increased so that the same shall be equal
to the rate determined by multiplying the Conversion Rate in effect on the
Record Date with respect to such distribution by a fraction,

 

(i)            the numerator of which shall be the
Current Market Price on such Record Date; and

 

(ii)           the denominator of which shall be the
Current Market Price on such Record Date less the fair market value (as
determined by the Board of Directors, whose determination shall be conclusive,
and described in a resolution of the Board of Directors) on the Record Date of
the portion of the Securities so distributed applicable to one share of Common
Stock,

 

such adjustment to become effective
immediately prior to the opening of business on the day following such Record
Date;
provided that if the then fair market value (as so determined) of
the portion of the Securities so distributed applicable to one share of Common
Stock is equal to or greater than the Current Market Price on the Record Date,
in lieu of the foregoing adjustment, adequate provision shall be made so that
each Noteholder shall have the right to receive upon conversion the amount of
Securities such holder would have received had such holder converted each Note
on the Record Date.  If such dividend or
distribution is not so paid or made, the Conversion Rate shall again be adjusted
to be the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.  If
the Board of Directors determines the fair market value of any distribution for
purposes of this Section 14.05(d) by reference to the actual or when issued
trading market for any securities, it must in doing so consider the prices in
such market over the same period used in computing the Current Market Price on
the applicable Record Date.

 

Notwithstanding
the foregoing:

 

54

 

(A)          In case the Company pays a dividend or
makes a distribution to all holders of its Common Stock consisting of capital
stock of any class or series, or similar equity interests, of or relating to a
Subsidiary or other business unit of the Company, then the Conversion Rate
shall be increased so that the same shall be equal to the rate determined by
multiplying the Conversion Rate in effect on the Record Date with respect to
such distribution by a fraction,

 

(i)            the numerator of which shall be the
sum of (1) the average of the Closing Sale Prices of the Common Stock for the
ten (10) Trading Days commencing on and including the fifth Trading Day after
the date on which “ex-dividend trading” commences for such dividend or distribution
on the Nasdaq National Market or such other national or regional exchange or
market which such securities are then listed or quoted (the “Ex-Dividend Date”) plus (2) the fair market value of the
securities distributed in respect of each share of Common Stock for which this
Section 14.05(d)(A) applies and shall equal the number of securities
distributed in respect of each share of Common Stock multiplied by the average
of the closing sale prices of those securities distributed for the ten (10) Trading
Days commencing on and including the fifth Trading Day after the Ex-Dividend
Date or, if there is no trading market for such distributed securities, the per
share price determined in good faith by the Board of Directors; and

 

(ii)           the denominator of which shall be the
average of the Closing Sale Prices of the Common Stock for the ten (10) Trading
Days commencing on and including the fifth Trading Day after the Ex-Dividend
Date,

 

such adjustment to become effective
immediately prior to the opening of business on the day following the fifteenth
Trading Day after the Ex-Dividend Date; provided
that if (x) the average of the Closing Sale Prices of the Common
Stock for the ten (10) Trading Days commencing on and including the fifth
Trading Day after the Ex-Dividend Date minus
(y) the fair market value of the securities distributed in respect of each
share of Common Stock for which this Section 14.05(d)(A) applies (as calculated
in Section 14.05(d)(A)(i)(2) above) is less than $1.00, then the adjustment
provided by for by this Section 14.05(d)(A) shall not be made and in lieu
thereof the provisions of Section 14.06 shall apply to such distribution.

 

(B)           In case the Company pays a dividend
or makes a distribution to all holders of its Common Stock consisting of cash,
then, in such case, the Conversion Rate shall be increased so that the same
shall equal the rate determined by multiplying the Conversion Rate in effect on
the Record Date with respect to such distribution by a fraction,

 

(i)            the numerator of which shall be the
Current Market Price on such Record Date; and

 

(ii)           the denominator of which shall be the
Current Market Price on such Record Date less the amount of the distribution
applicable to one share of Common Stock.

 

55

 

such adjustment to be effective immediately
prior to the opening of business on the day following the Record Date; provided
that if the portion of the cash so distributed applicable to one share of
Common Stock is equal to or greater than the Current Market Price on the Record
Date, in lieu of the foregoing adjustment, adequate provision shall be made so
that each Noteholder shall have the right to receive upon conversion the amount
of cash such holder would have received had such holder converted each Note on
the Record Date.  If such dividend or
distribution is not so paid or made, the Conversion Rate shall again be
adjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared.

 

Rights or warrants distributed by the Company
to all holders of Common Stock entitling the holders thereof to subscribe for
or purchase shares of the Company’s capital stock (either initially or under
certain circumstances), which rights or warrants, until the occurrence of a
specified event or events (“Trigger Event”):  (i) are deemed to be transferred with such shares of Common
Stock; (ii) are not exercisable; and (iii) are also issued in respect of future
issuances of Common Stock, shall be deemed not to have been distributed for
purposes of this Section 14.05 (and no adjustment to the Conversion Rate under
this Section 14.05 will be required) until the occurrence of the earliest
Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed
and an appropriate adjustment (if any is required) to the Conversion Rate shall
be made under this Section 14.05(d).  If
any such right or warrant, including any such existing rights or warrants
distributed prior to the date of this Indenture, are subject to events, upon
the occurrence of which such rights or warrants become exercisable to purchase
different securities, evidences of indebtedness or other assets, then the date
of the occurrence of any and each such event shall be deemed to be the date of
distribution and record date with respect to new rights or warrants with such
rights (and a termination or expiration of the existing rights or warrants
without exercise by any of the holders thereof).  In addition, in the event of any distribution (or deemed
distribution) of rights or warrants, or any Trigger Event or other event (of
the type described in the preceding sentence) with respect thereto that was
counted for purposes of calculating a distribution amount for which an
adjustment to the Conversion Rate under this Section 14.05 was made, (1) in the
case of any such rights or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Rate shall
be readjusted upon such final redemption or repurchase to give effect to such
distribution or Trigger Event, as the case may be, as though it were a cash
distribution, equal to the per share redemption or repurchase price received by
a holder or holders of Common Stock with respect to such rights or warrants
(assuming such holder had retained such rights or warrants), made to all
holders of Common Stock as of the date of such redemption or repurchase, and
(2) in the case of such rights or warrants that shall have expired or been
terminated without exercise by any holders thereof, the Conversion Rate shall
be readjusted as if such rights and warrants had not been issued.

 

No adjustment of the Conversion Rate shall be
made pursuant to this Section 14.05(d) in respect of rights or warrants
distributed or deemed distributed on any Trigger Event to the extent that such
rights or warrants are actually distributed, or reserved by the Company for
distribution to holders of Notes upon conversion by such holders of Notes to
Common Stock.

 

56

 

For purposes of this Section 14.05(d) and
Sections 14.05(a) and (b), any dividend or distribution to which this Section
14.05(d) is applicable that also includes shares of Common Stock, or rights or
warrants to subscribe for or purchase shares of Common Stock (or both), shall
be deemed instead to be (1) a dividend or distribution of the evidences of
indebtedness, assets or shares of capital stock other than such shares of
Common Stock or rights or warrants (and any Conversion Rate adjustment required
by this Section 14.05(d) with respect to such dividend or distribution shall
then be made) immediately followed by (2) a dividend or distribution of such
shares of Common Stock or such rights or warrants (and any further Conversion
Rate adjustment required by Sections 14.05(a) and 14.05(b) with respect to such
dividend or distribution shall then be made), except (A) the Record Date of
such dividend or distribution shall be substituted as “the date fixed for the
determination of stockholders entitled to receive such dividend or other
distribution”, “the date fixed for the determination of stockholders entitled
to receive such rights or warrants” and “the date fixed for such determination”
within the meaning of Sections 14.05(a) and 14.05(b) and (B) any shares of
Common Stock included in such dividend or distribution shall not be deemed
“outstanding at the close of business on the date fixed for such determination”
within the meaning of Section 14.05(a).

 

(e)   In
case a tender or exchange offer made by the Company or any Subsidiary for all
or any portion of the Class A Common Stock shall expire and such tender or
exchange offer (as amended upon the expiration thereof) shall require the
payment to stockholders of consideration per share of Class A Common Stock
having a Fair Market Value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a resolution of the Board of
Directors) that as of the last time (the “Expiration Time”) tenders or exchanges may
be made pursuant to such tender or exchange offer (as it may be amended)
exceeds the Closing Sale Price of a share of Class A Common Stock on the
Trading Day next succeeding the Expiration Time, the Conversion Rate shall be
increased so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to the Expiration Time by a
fraction,

 

(i)            the numerator of which shall be the
sum of (x) the Fair Market Value (determined as aforesaid) of the aggregate
consideration payable to stockholders based on the acceptance (up to any
maximum specified in the terms of the tender or exchange offer) of all shares
validly tendered or exchanged and not withdrawn as of the Expiration Time (the
shares deemed so accepted up to any such maximum, being referred to as the “Purchased
Shares”) and (y) the product of the number of shares of Class A
Common Stock outstanding (less any Purchased Shares) at the Expiration Time and
the Closing Sale Price of a share of Class A Common Stock on the Trading Day
next succeeding the Expiration Time, and

 

(ii)           the denominator of which shall be the
number of shares of Class A Common Stock outstanding (including any tendered or
exchanged shares) at the Expiration Time multiplied by the Closing Sale Price
of a share of Class A Common Stock on the Trading Day next succeeding the
Expiration Time,

 

such adjustment to become effective
immediately prior to the opening of business on the day following the
Expiration Time.  If the Company is
obligated to purchase shares pursuant to any such tender or exchange offer, but
the Company is permanently prevented by applicable law

 

57

 

from effecting any such
purchases or all such purchases are rescinded, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such
tender or exchange offer had not been made.

 

(f)    In
case of a tender or exchange offer made by a Person other than the Company or
any Subsidiary for an amount that increases the offeror’s ownership of Common
Stock to more than twenty-five percent (25%) of the Common Stock outstanding
and shall involve the payment by such Person of consideration per share of
Common Stock having a Fair Market Value (as determined by the Board of
Directors, whose determination shall be conclusive, and described in a
resolution of the Board of Directors) that as of the last time (the “Offer
Expiration Time”) tenders or exchanges may be made pursuant to such
tender or exchange offer (as it shall have been amended) exceeds the Closing
Price of a share of Common Stock on the Trading Day next succeeding the Offer
Expiration Time, and in which, as of the Offer Expiration Time the Board of
Directors is not recommending rejection of the offer, the Conversion Rate shall
be increased so that the same shall equal the rate determined by multiplying
the Conversion Rate in effect immediately prior to the Offer Expiration Time by
a fraction,

 

(i)            the numerator of which shall be the
sum of (x) the Fair Market Value (determined as aforesaid) of the aggregate
consideration payable to stockholders based on the acceptance (up to any
maximum specified in the terms of the tender or exchange offer) of all shares
validly tendered or exchanged and not withdrawn as of the Offer Expiration Time
(the shares deemed so accepted, up to any such maximum, being referred to as
the “Accepted
Purchased Shares”) and (y) the product of the number of shares of
Common Stock outstanding (less any Accepted Purchased Shares) at the Offer
Expiration Time and the Closing Sale Price of a share of Common Stock on the
Trading Day next succeeding the Offer Expiration Time, and

 

(ii)           the denominator of which shall be the
number of shares of Common Stock outstanding (including any tendered or
exchanged shares) at the Offer Expiration Time multiplied by the Closing Sale
Price of a share of Common Stock on the Trading Day next succeeding the Offer
Expiration Time,

 

such adjustment to become effective
immediately prior to the opening of business on the day following the Offer
Expiration Time.  If such Person is
obligated to purchase shares pursuant to any such tender or exchange offer, but
such Person is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such
tender or exchange offer had not been made. 
Notwithstanding the foregoing, the adjustment described in this Section
14.05(f) shall not be made if, as of the Offer Expiration Time, the offering
documents with respect to such offer disclose a plan or intention to cause the
Company to engage in any transaction described in Article 11.

 

(g)   For
purposes of this Section 14.05, the following terms shall have the meaning
indicated:

 

58

 

(i)            “Current Market Price” shall
mean the average of the daily Closing Sale Prices per share of Common Stock for
the ten consecutive Trading Days ending on the earlier of such date of
determination and the day before the “ex” date with respect to the issuance,
distribution, subdivision or combination requiring such computation immediately
prior to the date in question.  For
purpose of this paragraph, the term “ex” date, (1) when used with respect to any
issuance or distribution, means the first date on which the Common Stock
trades, regular way, on the relevant exchange or in the relevant market from
which the Closing Sale Price was obtained without the right to receive such
issuance or distribution, and (2) when used with respect to any subdivision or
combination of shares of Common Stock, means the first date on which the Common
Stock trades, regular way, on such exchange or in such market after the time at
which such subdivision or combination becomes effective.

 

If another
issuance, distribution, subdivision or combination to which Section 14.05
applies occurs during the period applicable for calculating “Current
Market Price” pursuant to the definition in the preceding paragraph,
“Current
Market Price” shall be calculated for such period in a manner
determined by the Board of Directors to reflect the impact of such issuance,
distribution, subdivision or combination on the Closing Sale Price of the
Common Stock during such period.

 

(ii)           “Fair Market Value” shall mean the amount
which a willing buyer would pay a willing seller in an arm’s-length
transaction.

 

(iii)          “Record Date” shall mean, with respect to
any dividend, distribution or other transaction or event in which the holders
of Common Stock have the right to receive any cash, securities or other
property or in which the Common Stock (or other applicable security) is
exchanged for or converted into any combination of cash, securities or other
property, the date fixed for determination of stockholders entitled to receive
such cash, securities or other property (whether such date is fixed by the
Board of Directors or by statute, contract or otherwise).

 

(iv)          “Trading Day” shall mean (x) if the
applicable security is quoted on the Nasdaq National Market, a day on which
trades may be made thereon or (y) if the applicable security is listed or
admitted for trading on the New York Stock Exchange or another national
securities exchange, a day on which the New York Stock Exchange or another
national securities exchange is open for business or (z) if the applicable
security is not so listed, admitted for trading or quoted, any day other than a
Saturday or Sunday or a day on which banking institutions in the State of New
York are authorized or obligated by law or executive order to close.

 

(h)   The
Company may make such increases in the Conversion Rate, in addition to those
required by Section 14.05(a), (b), (c), (d), (e) or (f) as the Board of
Directors considers to be advisable to avoid or diminish any income tax to
holders of Common Stock or rights to purchase Common Stock resulting from any
dividend or distribution of stock (or rights to acquire stock) or from any
event treated as such for income tax purposes.

 

59

 

To the extent permitted by applicable law, the
Company from time to time may increase the Conversion Rate by any amount for
any period of time if the period is at least twenty (20) days, the increase is
irrevocable during the period and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company,
which determination shall be conclusive. 
Whenever the Conversion Rate is increased pursuant to the preceding
sentence, the Company shall mail to holders of record of the Notes a notice of
the increase at least fifteen (15) days prior to the date the increased
Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect.

 

(i)    No
adjustment in the Conversion Rate shall be required unless such adjustment
would require an increase or decrease of at least one percent (1%) in such
rate;
provided that any adjustments that by reason of this Section
14.05(i) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. 
All calculations under this Article 14 shall be made by the Company and
shall be made to the nearest cent or to the nearest one-ten thousandth
(1/10,000) of a share, as the case may be. 
No adjustment need be made for rights to purchase Common Stock pursuant
to a Company plan for reinvestment of dividends or interest or for any issuance
of Common Stock or convertible or exchangeable securities or rights to purchase
Common Stock or convertible or exchangeable securities.  To the extent the Notes become convertible
into cash, assets, property or securities (other than capital stock of the
Company), no adjustment need be made thereafter as to the cash, assets,
property or such securities.  Interest
will not accrue on any cash into which the Notes are convertible.

 

(j)    Whenever
the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any conversion agent other than the Trustee an
Officers’ Certificate setting forth the Conversion Rate after such adjustment
and setting forth a brief statement of the facts requiring such
adjustment.  Unless and until a Responsible
Officer of the Trustee shall have received such Officers’ Certificate, the
Trustee shall not be deemed to have knowledge of any adjustment of the
Conversion Rate and may assume that the last Conversion Rate of which it has
knowledge is still in effect.  Promptly
after delivery of such certificate, the Company shall prepare a notice of such
adjustment of the Conversion Rate setting forth the adjusted Conversion Rate
and the date on which each adjustment becomes effective and shall mail such
notice of such adjustment of the Conversion Rate to the holder of each Note at
his last address appearing on the Note register provided for in Section 2.05 of
this Indenture, within twenty (20) days after execution thereof.  Failure to deliver such notice shall not affect
the legality or validity of any such adjustment.

 

(k)    In
any case in which this Section 14.05 provides that an adjustment shall become
effective immediately after (1) a record date or Record Date for an event, (2)
the date fixed for the determination of stockholders entitled to receive a dividend
or distribution pursuant to Section 14.05(a), (3) a date fixed for the
determination of stockholders entitled to receive rights or warrants pursuant
to Section 14.05(b), (4) the Expiration Time for any tender or exchange offer
pursuant to Section 14.05(e), or (5) the Offer Expiration Time for a tender or
exchange offer pursuant to Section 14.05(f)(i) (each a “Determination Date”), the
Company may elect to defer until the occurrence of the applicable Adjustment
Event (as hereinafter defined) (x) issuing to the holder of any Note converted
after such Determination Date and before the occurrence of

 

60

 

such Adjustment Event, the
additional shares of Common Stock or other securities issuable upon such conversion
by reason of the adjustment required by such Adjustment Event over and above
the Common Stock issuable upon such conversion before giving effect to such
adjustment and (y) paying to such holder any amount in cash in lieu of any
fraction pursuant to Section 14.03.  For
purposes of this Section 14.05(k), the term “Adjustment Event” shall mean:

 

(i)            in any case referred to in clause
(1) hereof, the occurrence of such event,

 

(ii)           in any case referred to in clause (2)
hereof, the date any such dividend or distribution is paid or made,

 

(iii)          in any case referred to in clause (3)
hereof, the date of expiration of such rights or warrants, and

 

(iv)          in any case referred to in clause (4)
or clause (5) hereof, the date a sale or exchange of Common Stock pursuant to
such tender or exchange offer is consummated and becomes irrevocable.

 

(l)    For
purposes of this Section 14.05, the number of shares of Common Stock at any
time outstanding shall not include shares held in the treasury of the Company
but shall include shares issuable in respect of scrip certificates issued in
lieu of fractions of shares of Common Stock. 
The Company will not pay any dividend or make any distribution on shares
of Common Stock held in the treasury of the Company.

 

Section 14.06. 
Effect of Reclassification,
Consolidation, Merger or Sale.  If any of the following events
occur, namely (i) any reclassification or change of the outstanding shares of
Class A Common Stock (other than a subdivision or combination to which Section
14.05(c) applies), (ii) any consolidation, merger or combination of the Company
with another Person as a result of which holders of Class A Common Stock shall
be entitled to receive stock, other securities or other property or assets
(including cash) with respect to or in exchange for such Class A Common Stock,
or (iii) any sale or conveyance of all or substantially all of the properties
and assets of the Company to any other Person as a result of which holders of
Class A Common Stock shall be entitled to receive stock, other securities or
other property or assets (including cash) with respect to or in exchange for
such Class A Common Stock, then the Company or the successor or purchasing
Person, as the case may be, shall execute with the Trustee a supplemental
indenture (which shall comply with the Trust Indenture Act as in force at the
date of execution of such supplemental indenture) providing that each Note
shall be convertible into the kind and amount of shares of stock, other
securities or other property or assets (including cash) receivable upon such
reclassification, change, consolidation, merger, combination, sale or
conveyance by a holder of a number of shares of Class A Common Stock issuable
upon conversion of such Notes (assuming, for such purposes, a sufficient number
of authorized shares of Class A Common Stock are available to convert all such
Notes) immediately prior to such reclassification, change, consolidation,
merger, combination, sale or conveyance assuming such holder of Class A Common
Stock did not exercise his rights of election, if any, as to the kind or amount
of stock, other securities or other property or assets (including cash)
receivable upon such reclassification, change, consolidation, merger,

 

61

 

combination, sale or conveyance
(provided that, if the kind or amount of stock, other securities or other
property or assets (including cash) receivable upon such reclassification,
change, consolidation, merger, combination, sale or conveyance is not the same
for each share of Class A Common Stock in respect of which such rights of
election shall not have been exercised (“non-electing
share”), then for the purposes of this Section 14.06 the kind and
amount of stock, other securities or other property or assets (including cash)
receivable upon such reclassification, change, consolidation, merger,
combination, sale or conveyance for each non-electing share shall be deemed to
be the kind and amount so receivable per share by a plurality of the
non-electing shares).  Such supplemental
indenture shall provide for adjustments which shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Article 14.

 

The Company shall cause notice of the
execution of such supplemental indenture to be mailed to each holder of Notes,
at its address appearing on the Note register provided for in Section 2.05 of
this Indenture, within twenty (20) days after execution thereof.  Failure to deliver such notice shall not
affect the legality or validity of such supplemental indenture.

 

The above provisions of this Section shall
similarly apply to successive reclassifications, changes, consolidations,
mergers, combinations, sales and conveyances.

 

If this Section 14.06 applies to any event or
occurrence, Section 14.05 shall not apply.

 

Section 14.07. 
Taxes on Shares Issued.  The
issue of stock certificates on conversions of Notes shall be made without
charge to the converting Noteholder for any documentary, stamp or similar issue
or transfer tax in respect of the issue thereof.  The Company shall not, however, be required to pay any such tax
which may be payable in respect of any transfer involved in the issue and
delivery of stock in any name other than that of the holder of any Note
converted, and the Company shall not be required to issue or deliver any such
stock certificate unless and until the Person or Persons requesting the issue
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.

 

Section 14.08. 
Reservation of Shares, Shares to Be
Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock.  The
Company shall provide, free from preemptive rights, out of its authorized but
unissued shares or shares held in treasury, sufficient shares of Common Stock
to provide for the conversion of the Notes from time to time as such Notes are
presented for conversion.

 

Before taking any action which would cause an
adjustment increasing the Conversion Rate to an amount that would cause the
Conversion Price to be reduced below the then par value, if any, of the shares
of Common Stock issuable upon conversion of the Notes, the Company will take
all corporate action which may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue shares of such Common
Stock at such adjusted Conversion Rate.

 

62

 

The Company covenants that all shares of
Common Stock which may be issued upon conversion of Notes will upon issue be
fully paid and non-assessable by the Company and free from all taxes, liens and
charges with respect to the issue thereof.

 

The Company covenants that, if any shares of
Common Stock to be provided for the purpose of conversion of Notes hereunder
require registration with or approval of any governmental authority under any
federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible, to the extent
then permitted by the rules and interpretations of the Commission (or any
successor thereto), endeavor to secure such registration or approval, as the
case may be.

 

The Company further covenants that, if at any
time the Common Stock shall be listed on the Nasdaq National Market or any
other national securities exchange or automated quotation system, the Company
will, if permitted by the rules of such exchange or automated quotation system,
list and keep listed, so long as the Common Stock shall be so listed on such
exchange or automated quotation system, all Common Stock issuable upon
conversion of the Notes; provided that if the rules of such
exchange or automated quotation system permit the Company to defer the listing
of such Common Stock until the first conversion of the Notes into Common Stock
in accordance with the provisions of this Indenture, the Company covenants to
list such Common Stock issuable upon conversion of the Notes in accordance with
the requirements of such exchange or automated quotation system at such time.

 

Section 14.09. 
Responsibility of Trustee.  The
Trustee and any other conversion agent shall not at any time be under any duty
or responsibility to any holder of Notes to determine the Conversion Rate or
whether any facts exist which may require any adjustment of the Conversion
Rate, or with respect to the nature or extent or calculation of any such
adjustment when made, or with respect to the method employed, or herein or in
any supplemental indenture provided to be employed, in making the same.  The Trustee and any other conversion agent
shall not be accountable with respect to the validity or value (or the kind or
amount) of any shares of Common Stock, or of any securities or property, which
may at any time be issued or delivered upon the conversion of any Note; and the
Trustee and any other conversion agent make no representations with respect
thereto.  Neither the Trustee nor any
conversion agent shall be responsible for any failure of the Company to issue,
transfer or deliver any shares of Common Stock or stock certificates or other
securities or property or cash upon the surrender of any Note for the purpose
of conversion or to comply with any of the duties, responsibilities or
covenants of the Company contained in this Article 14.  Without limiting the generality of the
foregoing, neither the Trustee nor any conversion agent shall be under any
responsibility to determine the correctness of any provisions contained in any
supplemental indenture entered into pursuant to Section 14.06 relating either
to the kind or amount of shares of stock or securities or property (including
cash) receivable by Noteholders upon the conversion of their Notes after any
event referred to in such Section 14.06 or to any adjustment to be made with
respect thereto, but, subject to the provisions of Section 7.01, may accept as
conclusive evidence of the correctness of any such provisions, and shall be
protected in relying upon, the Officers’ Certificate (which the Company shall
be obligated to file with the Trustee prior to the execution of any such
supplemental indenture) with respect thereto.

 

63

 

Section 14.10.  Notice to
Holders Prior to Certain Actions. 
In case:

 

(a)           the Company shall
declare a dividend (or any other distribution) on its Common Stock that would
require an adjustment in the Conversion Rate pursuant to Section 14.05; or

 

(b)           the Company shall
authorize the granting to the holders of all or substantially all of its Common
Stock of rights or warrants to subscribe for or purchase any share of any class
or any other rights or warrants; or

 

(c)           of any
reclassification or reorganization of the Common Stock of the Company (other
than a subdivision or combination of its outstanding Common Stock, or a change
in par value, or from par value to no par value, or from no par value to par
value), or of any consolidation or merger to which the Company is a party and
for which approval of any stockholders of the Company is required, or of the
sale or transfer of all or substantially all of the assets of the Company; or

 

(d)           of the voluntary or
involuntary dissolution, liquidation or winding up of the Company;

 

the Company shall cause to be filed with the
Trustee and to be mailed to each holder of Notes at his address appearing on
the Note register provided for in Section 2.05 of this Indenture, as promptly
as possible but in any event at least ten (10) days prior to the applicable
date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of such dividend, distribution or rights or
warrants, or, if a record is not to be taken, the date as of which the holders
of Common Stock of record to be entitled to such dividend, distribution or
rights are to be determined, or (y) the date on which such reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up
is expected to become effective or occur, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange
their Common Stock for securities or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up.  Failure to
give such notice, or any defect therein, shall not affect the legality or
validity of such dividend, distribution, reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding up.

 

Section 14.11. 
Rights Issued in Respect of Common
Stock Issued Upon Conversions.  Each share of Common Stock issued upon
conversion of Securities pursuant to this Article 14 shall be entitled to
receive the appropriate number of common stock or preferred stock purchase
rights, as the case may be (the “Rights”),
if any, that shares of Common Stock are entitled to receive and the
certificates representing the Common Stock issued upon such conversion shall
bear such legends, if any, in each case as may be provided by the terms of any
shareholder rights agreement adopted by the Company, as the same may be amended
from time to time (in each case, a “Rights
Agreement”). Provided that such Rights Agreement requires that each
share of Common Stock issued upon conversion of Securities at any time prior to
the distribution of separate certificates representing the Rights be entitled
to receive such Rights, then, notwithstanding anything else to the contrary in
this Article 14, there shall not be any

 

64

 

adjustment to the conversion
privilege as a result of the issuance of Rights, but an adjustment to the
conversion rate shall be made pursuant to Section 14.05(d) upon the separation
of the Rights from the Common Stock.

 

ARTICLE 15

 

MISCELLANEOUS PROVISIONS

 

Section 15.01. 
Provisions Binding on Company’s
Successors.  All the covenants, stipulations,
promises and agreements by the Company contained in this Indenture shall bind
its successors and assigns whether so expressed or not.

 

Section 15.02. 
Official Acts by Successor
Corporation.  Any act or proceeding by any
provision of this Indenture authorized or required to be done or performed by
any board, committee or officer of the Company shall and may be done and
performed with like force and effect by the like board, committee or officer of
any Person that shall at the time be the lawful sole successor of the Company.

 

Section 15.03. 
Addresses for Notices, Etc.  Any
notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the holders of Notes on
the Company shall be deemed to have been sufficiently given or made, for all
purposes, if given or served by being deposited postage prepaid by registered
or certified mail in a post office letter box or sent by telecopier
transmission addressed as follows:  to
Nextel Partners, Inc., 4500 Carillon Point, Kirkland, Washington 98033,
Telecopier No.:  (425) 576-3650,
Attention:  General Counsel.  Any notice, direction, request or demand
hereunder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or served by being deposited, postage
prepaid, by registered or certified mail in a post office letter box or sent by
telecopier transmission addressed as follows: 
The Bank of New York, 101 Barclay Street, New York, New York 10286,
Telecopier No.: (212) 815-5707, Attention: Corporate Trust Administration.

 

The Trustee, by notice to the Company, may
designate additional or different addresses for subsequent notices or
communications.

 

Any notice or communication mailed to a
Noteholder shall be mailed to him by first class mail, postage prepaid, at his
address as it appears on the Note register and shall be sufficiently given to
him if so mailed within the time prescribed.

 

Failure to mail a notice or communication to a
Noteholder or any defect in it shall not affect its sufficiency with respect to
other Noteholders.  If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

 

Section 15.04. 
Governing Law.  This
Indenture and each Note shall be deemed to be a contract made under the laws of
the State of New York, and for all purposes shall be construed in accordance
with the laws of the State of New York, without regard to conflicts of laws
principles thereof.

 

65

 

Section 15.05. 
Evidence of Compliance with
Conditions Precedent, Certificates to Trustee.  Upon any
application or demand by the Company to the Trustee to take any action under
any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officers’ Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with, and an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.

 

Each certificate or opinion provided for in
this Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture shall include:  (1) a statement that the person making such
certificate or opinion has read such covenant or condition; (2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statement or opinion contained in such certificate or opinion is
based; (3) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

 

Section 15.06.  Legal Holidays.  In any case in
which the date of maturity of interest on or principal of the Notes or the
repurchase date of any Note will not be a Business Day, then payment of such
interest on or principal of the Notes need not be made on such date, but may be
made on the next succeeding Business Day with the same force and effect as if
made on the date of maturity or the repurchase date, and no interest shall
accrue for the period from and after such date.

 

Section 15.07. 
Trust Indenture Act.  This
Indenture is hereby made subject to, and shall be governed by, the provisions
of the Trust Indenture Act required to be part of and to govern indentures
qualified under the Trust Indenture Act; provided that unless otherwise required
by law, notwithstanding the foregoing, this Indenture and the Notes issued
hereunder shall not be subject to the provisions of subsections (a)(1), (a)(2),
and (a)(3) of Section 314 of the Trust Indenture Act as now in effect or as
hereafter amended or modified; provided further that this Section 15.07
shall not require this Indenture or the Trustee to be qualified under the Trust
Indenture Act prior to the time such qualification is in fact required under
the terms of the Trust Indenture Act, nor shall it constitute any admission or
acknowledgment by any party to the Indenture that any such qualification is
required prior to the time such qualification is in fact required under the
terms of the Trust Indenture Act.  If
any provision hereof limits, qualifies or conflicts with another provision
hereof which is required to be included in an indenture qualified under the
Trust Indenture Act, such required provision shall control.

 

Section 15.08. 
No Security Interest Created.  Nothing
in this Indenture or in the Notes, expressed or implied, shall be construed to
constitute a security interest under the Uniform Commercial Code or similar
legislation, as now or hereafter enacted and in effect, in any jurisdiction in
which property of the Company or its subsidiaries is located.

 

Section 15.09. 
Benefits of Indenture.  Nothing
in this Indenture or in the Notes, express or implied, shall give to any
Person, other than the parties hereto, any paying agent, any

 

66

 

authenticating agent, any Note
registrar and their successors hereunder and the holders of Notes any benefit
or any legal or equitable right, remedy or claim under this Indenture.

 

Section 15.10. 
Table of Contents, Headings, Etc.  The
table of contents and the titles and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.

 

Section 15.11. 
Authenticating Agent.  The
Trustee may appoint an authenticating agent that shall be authorized to act on
its behalf, and subject to its direction, in the authentication and delivery of
Notes in connection with the original issuance thereof and transfers and
exchanges of Notes hereunder, including under Sections 2.04, 2.05, 2.06, 2.07,
3.03 and 3.05, as fully to all intents and purposes as though the
authenticating agent had been expressly authorized by this Indenture and those
Sections to authenticate and deliver Notes. 
For all purposes of this Indenture, the authentication and delivery of
Notes by the authenticating agent shall be deemed to be authentication and
delivery of such Notes “by the Trustee” and a certificate of authentication
executed on behalf of the Trustee by an authenticating agent shall be deemed to
satisfy any requirement hereunder or in the Notes for the Trustee’s certificate
of authentication.  Such authenticating
agent shall at all times be a Person eligible to serve as trustee hereunder
pursuant to Section 7.09.

 

Any corporation into which any authenticating
agent may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, consolidation or conversion to which any
authenticating agent shall be a party, or any corporation succeeding to the
corporate trust business of any authenticating agent, shall be the successor of
the authenticating agent hereunder, if such successor corporation is otherwise
eligible under this Section 15.11, without the execution or filing of any paper
or any further act on the part of the parties hereto or the authenticating
agent or such successor corporation.

 

Any authenticating agent may at any time
resign by giving written notice of resignation to the Trustee and to the
Company.  The Trustee may at any time
terminate the agency of any authenticating agent by giving written notice of
termination to such authenticating agent and to the Company.  Upon receiving such a notice of resignation
or upon such a termination, or in case at any time any authenticating agent shall
cease to be eligible under this Section, the Trustee shall either promptly
appoint a successor authenticating agent or itself assume the duties and
obligations of the former authenticating agent under this Indenture and, upon
such appointment of a successor authenticating agent, if made, shall give
written notice of such appointment of a successor authenticating agent to the
Company and shall mail notice of such appointment of a successor authenticating
agent to all holders of Notes as the names and addresses of such holders appear
on the Note register.

 

The Company agrees to pay to the
authenticating agent from time to time such reasonable compensation for its
services as shall be agreed upon in writing between the Company and the
authenticating agent.

 

67

 

The provisions of Sections 7.02, 7.03, 7.04
and 8.03 and this Section 15.11 shall be applicable to any authenticating
agent.

 

Section 15.12. 
Execution in Counterparts.  This
Indenture may be executed in any number of counterparts, each of which shall be
an original, but such counterparts shall together constitute but one and the
same instrument.

 

Section 15.13. 
Severability.  In
case any provision in this Indenture or in the Notes shall be invalid, illegal
or unenforceable, then (to the extent permitted by law) the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

The Bank of New York hereby accepts the trusts
in this Indenture declared and provided, upon the terms and conditions herein
above set forth.

 

68

 

IN WITNESS
WHEREOF, the parties hereto have caused this Indenture to be duly executed.

 

	
   

  	
  NEXTEL
  PARTNERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Chapple

  
	
   

  	
   

  	
  Title:

  	
  President, Chief
  Executive

  Officer and Chairman of the

  Board

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

EXHIBIT A

 

NEXTEL
PARTNERS, INC. 

11⁄2% CONVERTIBLE SENIOR NOTE DUE 2008

 

[Include only for Global Notes:]

 

[UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITARY”,
WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES) TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE, OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

 

[Include only for Notes that
are Restricted Securities:]

 

[THE NOTE EVIDENCED HEREBY HAS
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET
FORTH IN THE FOLLOWING SENTENCE.  BY ITS
ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT); (2) AGREES THAT IT WILL NOT,
PRIOR TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE NOTE
EVIDENCED HEREBY UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), RESELL OR OTHERWISE TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE
UPON CONVERSION OF THIS NOTE EXCEPT (A) TO NEXTEL PARTNERS, INC. OR ANY
SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR
(D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF
SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO
CLAUSE (2)(D) ABOVE), IT WILL FURNISH TO THE BANK OF NEW YORK, AS TRUSTEE (OR A
SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS THE TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER
IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT

 

69

 

SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT; AND (4) AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND.  THIS LEGEND WILL BE
REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS NOTE PURSUANT TO CLAUSE (2)(D)
ABOVE OR UPON ANY TRANSFER OF THIS NOTE UNDER RULE 144(K) UNDER THE SECURITIES
ACT (OR ANY SUCCESSOR PROVISION).  THE
INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY
TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION.]

 

A-2

 

NEXTEL
PARTNERS, INC. 

 

11⁄2%
CONVERTIBLE SENIOR NOTE DUE 2008

 

CUSIP: 
[            ]

 

No. 1                                                                                                                                                                       $                       

 

Nextel Partners, Inc., a corporation duly
organized and validly existing under the laws of the State of Delaware (herein
called the “Company”, which term includes any successor corporation under
the Indenture referred to on the reverse hereof), for value received hereby
promises to pay to CEDE & CO. or its registered assigns, [the principal sum
of
                        
DOLLARS] [the principal sum set forth on Schedule I hereto](1) on November 15,
2008 at the office or agency of the Company maintained for that purpose in
accordance with the terms of the Indenture, in such coin or currency of the
United States of America as at the time of payment shall be legal tender for
the payment of public and private debts, and to pay interest, semiannually on
May 15 and November 15 of each year, commencing November 15, 2003, on said
principal sum at said office or agency, in like coin or currency, at the rate
per annum of 11⁄2%, from the May 15 or November 15, as the case may be, next preceding
the date of this Note to which interest has been paid or duly provided for,
unless the date hereof is a date to which interest has been paid or duly
provided for, in which case from the date of this Note, or unless no interest
has been paid or duly provided for on the Notes, in which case from August 6,
2003 until payment of said principal sum has been made or duly provided
for.  Notwithstanding the foregoing, if
the date hereof is after any May 1 or November 1, as the case may be, and
before the following May 15 or November 15, this Note shall bear interest from
such May 15 or November 15.  Except as
otherwise provided in the Indenture, the interest payable on the Note pursuant
to the Indenture on any May 15 or November 15 will be paid to the Person
entitled thereto as it appears in the Note register at the close of business on
the record date, which shall be the May 1 or November 1 (whether or not a
Business Day) next preceding such May 15 or November 15, as provided in the
Indenture;
provided that any such interest not punctually paid or duly provided
for shall be payable as provided in the Indenture.   The Company shall pay interest (i) on any Notes in certificated
form by check mailed to the address of the Person entitled thereto as it
appears in the Note register or (ii) on any Global Note by wire transfer of
immediately available funds to the account of the Depositary or its nominee.

 

The Company promises to pay interest at the
rate of 21⁄2% per annum on overdue principal and (to the extent that payment of
such interest is enforceable under applicable law) interest on the Notes.

 

Reference is made to the further provisions of
this Note set forth on the reverse hereof, including, without limitation,
provisions giving the holder of this Note the right to convert this Note into
Class A Common Stock of the Company on the terms and subject to the limitations

 

(1) For Global
Notes only.

 

A-3

 

referred to on the reverse
hereof and as more fully specified in the Indenture.  Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

 

This Note shall be deemed to be a contract
made under the laws of the State of New York, and for all purposes shall be
construed in accordance with and governed by the laws of the State of New York,
without regard to conflicts of laws principles thereof.

 

This Note shall not be valid or become
obligatory for any purpose until the certificate of authentication hereon shall
have been manually signed by the Trustee or a duly authorized authenticating
agent under the Indenture.

 

A-4

 

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

 

	
   

  	
  NEXTEL
  PARTNERS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Notes
described in the within-named Indenture.

 

Dated:

 

	
  THE BANK OF
  NEW YORK, as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
                                                     ,
  or

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  As
  Authenticating Agent

  (if different from Trustee)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  

 

A-5

 

FORM OF REVERSE OF NOTE

 

NEXTEL PARTNERS, INC. 

 

11⁄2% CONVERTIBLE SENIOR NOTE 2008

 

 

This Note is one of a duly authorized issue of
Notes of the Company, designated as its 11⁄2% Convertible Senior Notes Due 2008
(herein called the “Notes”), limited in aggregate principal
amount to $125,000,000 (or in the event that the Initial Purchasers exercise
their option under the Note Purchase Agreement to purchase additional Notes, to
an aggregate principal amount not to exceed $150,000,000) issued and to be
issued under and pursuant to an Indenture dated as of August 6, 2003 (herein
called the “Indenture”), between the Company and The Bank of New York, as
trustee (herein called the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of
the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the holders of the Notes.

 

In case an Event of Default shall have
occurred and be continuing, the principal of and accrued interest on all Notes
may be declared by either the Trustee or the holders of not less than 25% in
aggregate principal amount of the Notes then outstanding, and upon said
declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

 

The Indenture contains provisions permitting
the Company and the Trustee, with the consent of the holders of at least a
majority in aggregate principal amount of the Notes at the time outstanding, to
execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the Notes;
provided that no such supplemental indenture shall (i) extend the
fixed maturity of any Note, or reduce the rate or extend the time of payment of
interest thereon, or reduce the principal amount thereof, or reduce any amount
payable upon repurchase thereof, or impair the right of any Noteholder to
institute suit for the payment thereof, or make the principal thereof or
interest thereon payable in any coin or currency other than that provided in
the Notes, or change the obligation of the Company to repurchase any Note on a
repurchase date in a manner adverse to the holders of Notes, or change the obligation
of the Company to repurchase any Note upon the happening of a Fundamental
Change in a manner adverse to the holder of the Notes, or impair the right to
convert the Notes into Common Stock subject to the terms set forth in the
Indenture, including Section 14.06 thereof, without the consent of the holder
of each Note so affected, or modify any of the provisions of Section 10.02 or
Section 6.07 thereof, except to increase any such percentage or to provide that
certain other provisions of the Indenture cannot be modified or waived without
the consent of the holder of each Note so affected, or change any obligation of
the Company to maintain an office or agency in the places and for the purposes
set forth in Section 4.02 thereof, or reduce the quorum or voting requirements
set forth in Article 9 or (ii) reduce the aforesaid percentage of Notes, the
holders of which are required to consent to any such supplemental indenture,
without the consent of the holders of all Notes then outstanding.  Subject to the provisions of the Indenture,
the holders of a majority in aggregate principal amount of the Notes

 

A-6

 

at the time outstanding may on
behalf of the holders of all of the Notes waive any past default or Event of
Default under the Indenture and its consequences except (A) a default in
the payment of interest on, or the principal of, any of the Notes, (B) a
failure by the Company to convert any Notes into Class A Common Stock of the
Company, (C) a default in the payment of the repurchase price pursuant to
Article 3 of the Indenture, or (D) a default in respect of a covenant or
provisions of the Indenture which under Article 10 of the Indenture cannot be
modified or amended without the consent of the holders of each or all Notes
then outstanding or affected thereby. 
Any such consent or waiver by the holder of this Note (unless revoked as
provided in the Indenture) shall be conclusive and binding upon such holder and
upon all future holders and owners of this Note and any Notes which may be
issued in exchange or substitution hereof, irrespective of whether or not any
notation thereof is made upon this Note or such other Notes.

 

No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of
and interest, on this Note at the place, at the respective times, at the rate
and in the coin or currency herein prescribed.

 

Interest on the Notes shall be computed on the
basis of a 360-day year of twelve 30-day months.

 

The Notes are issuable in fully registered
form, without coupons, in denominations of $1,000 principal amount and any
integral multiple of $1,000.  At the
office or agency of the Company referred to on the face hereof, and in the
manner and subject to the limitations provided in the Indenture, without
payment of any service charge but with payment of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection
with any registration or exchange of Notes, Notes may be exchanged for a like
aggregate principal amount of Notes of any other authorized denominations.

 

Except upon the occurrence of a Fundamental
Change, the Company may not redeem or repurchase any Notes prior to
maturity.  The Notes are not subject to
repurchase through the operation of any sinking fund.

 

If a Fundamental Change occurs at any time
prior to maturity of the Notes, this Note will be subject to repurchase on a Fundamental
Change Repurchase Date, that is 30 days after notice of the Fundamental Change,
at the option of the holder of this Note at a repurchase price equal to 100% of
the principal amount thereof, together with accrued interest to (but excluding)
the Fundamental Change Repurchase Date; provided that if such Fundamental Change
Repurchase Date is a May 15 or November 15, the interest payable on such date
shall be paid to the holder of record of this Note on the preceding May 1 or
November 1, respectively.  The Notes
will be repurchased in integral multiples of $1,000 principal amount.  The Company shall mail to all holders of
record of the Notes a notice of the occurrence of a Fundamental Change and of
the repurchase right arising as a result thereof on or before the 10th day
after the occurrence of such Fundamental Change.  For a Note to be so repurchased at the option of the holder, the
Company must receive at the office or agency of the Company maintained for that
purpose in accordance with the terms of the Indenture or, at the option of such
holder, the Corporate Trust Office, such Note with the form entitled “Option to
Elect Repayment upon a Fundamental
Change” on

 

A-7

 

the reverse thereof duly
completed, together with such Note, duly endorsed for transfer, on or before
the 30th day after the date of such notice of a Fundamental Change (or if such
30th day is not a Business Day, the immediately succeeding Business Day).

 

Subject to and in compliance with the
provisions of the Indenture, at any time prior to 5:00 p.m. (New York City
time) on the final maturity date of the Notes, the holder hereof has the right,
at its option, to convert each $1,000 principal amount of the Notes into
78.3085 shares of the Company’s Common Stock, as such shares shall be
constituted at the date of conversion and subject to adjustment from time to
time as provided in the Indenture, upon surrender of this Note with the form
entitled “Conversion
Notice” on the reverse thereof duly completed, to the Company at the
office or agency of the Company maintained for that purpose in accordance with
the terms of the Indenture, or at the option of such holder, the Corporate
Trust Office, and, unless the shares issuable on conversion are to be issued in
the same name as this Note, duly endorsed by, or accompanied by instruments of
transfer in form satisfactory to the Company duly executed by, the holder or by
his duly authorized attorney.

 

No adjustment in respect of interest on any
Note converted or dividends on any shares issued upon conversion of such Note
will be made upon any conversion except as set forth in the next sentence.  If this Note (or portion hereof) is
surrendered for conversion during the period from the close of business on any
record date for the payment of interest to the close of business on the
Business Day preceding the following interest payment date, this Note (or
portion hereof being converted) must be accompanied by payment, in immediately
available funds or other funds acceptable to the Company, of an amount equal to
the interest otherwise payable on such interest payment date on the principal
amount being converted; provided that no such payment shall be
required if there shall exist at the time of conversion a default in the
payment of interest on the Notes.

 

No fractional shares will be issued upon any
conversion, but an adjustment and payment in cash will be made, as provided in
the Indenture, in respect of any fraction of a share which would otherwise be
issuable upon the surrender of any Note or Notes for conversion.

 

A Note in respect of which a holder is
exercising its right to require repurchase upon a Fundamental Change may be
converted only if such holder withdraws its election to exercise such right in
accordance with the terms of the Indenture.

 

Upon due presentment for registration of
transfer of this Note at the office or agency of the Company maintained for
that purpose or, at the option of the holder, the Corporate Trust Office, in
accordance with the terms of the Indenture, a new Note or Notes of authorized
denominations for an equal aggregate principal amount will be issued to the
transferee in exchange thereof, subject to the limitations provided in the
Indenture, without charge except for any tax, assessment or other governmental
charge imposed in connection therewith.

 

The Company, the Trustee, any authenticating
agent, any paying agent, any conversion agent and any Note registrar may deem
and treat the registered holder hereof as the absolute owner of this Note
(whether or not this Note shall be overdue and notwithstanding any notation of
ownership or other writing hereon made by anyone other than the Company or any
Note

 

A-8

 

registrar) for the purpose of
receiving payment hereof, or on account hereof, for the conversion hereof and
for all other purposes, and neither the Company nor the Trustee nor any other
authenticating agent nor any paying agent nor other conversion agent nor any
Note registrar shall be affected by any notice to the contrary.  All payments made to or upon the order of
such registered holder shall, to the extent of the sum or sums paid, satisfy
and discharge liability for monies payable on this Note.

 

No recourse for the payment of the principal
of or interest on this Note, or for any claim based hereon or otherwise in
respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any supplemental indenture or in
any Note, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, employee, agent, officer or
director or subsidiary, as such, past, present or future, of the Company or of
any successor corporation, either directly or through the Company or any
successor corporation, whether by virtue of any constitution, statute or rule
of law or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

 

This Note shall be deemed to be a contract
made under the laws of New York, and for all purposes shall be construed in
accordance with the laws of New York, without regard to conflicts of laws
principles thereof.

 

Terms used in this Note and defined in the
Indenture are used herein as therein defined.

 

A-9

 

ABBREVIATIONS

 

The following abbreviations, when used in the
inscription of the face of this Note, shall be construed as though they were
written out in full according to applicable laws or regulations.

 

	
  TEN COM -

  	
   

  	
  as tenants in common

  	
   

  	
  UNIF GIFT MIN ACT -
       Custodian      

  
	
  TEN ENT -

  	
   

  	
  as tenant by the
  entireties

  	
   

  	
  (Cust)(Minor)

  
	
  JT TEN -

  	
   

  	
  as joint tenants with
  right of survivorship and not as tenants in common

  	
   

  	
  under Uniform Gifts to
  Minors Act
                                             

                (State)

  

 

Additional
abbreviations may also be used though not in the above list.

 

 

CONVERSION NOTICE

 

TO:                            NEXTEL
PARTNERS, INC.

THE BANK OF NEW YORK

 

The undersigned registered owner of this Note
hereby irrevocably exercises the option to convert this Note, or the portion
thereof (which is $1,000 or an integral multiple thereof) below designated,
into shares of Common Stock of Nextel Partners, Inc. in accordance with the
terms of the Indenture referred to in this Note, and directs that the shares
issuable and deliverable upon such conversion, together with any check in
payment for fractional shares and any Notes representing any unconverted
principal amount hereof, be issued and delivered to the registered holder
hereof unless a different name has been indicated below.  Capitalized terms used herein but not
defined shall have the meanings ascribed to such terms in the Indenture.  If shares or any portion of this Note not
converted are to be issued in the name of a person other than the undersigned,
the undersigned will provide the appropriate information below and pay all
transfer taxes payable with respect thereto. 
Any amount required to be paid by the undersigned on account of
interest, accompanies this Note.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)
  must be guaranteed by an “eligible guarantor institution” meeting
  the requirements of the Note registrar, which requirements include membership
  or participation in the Security Transfer Agent Medallion Program (“STAMP”)
  or such other “signature guarantee program” as may be determined by the
  Note registrar in addition to, or in substitution for, STAMP, all in
  accordance with the Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature
  Guarantee

  

 

Fill in the registration of shares of Common
Stock if to be issued, and Notes if to be delivered, other than to and in the
name of the registered holder:

 

(Name)

 

 

(Street Address)

 

 

(City, State and Zip Code)

 

 

Please print name and address

Principal amount to be
converted
 (if less than all):

$                                                      

 

Social Security or Other
Taxpayer
 Identification Number:

 

 

OPTION TO
ELECT REPAYMENT

UPON A FUNDAMENTAL CHANGE

 

TO:                            NEXTEL
PARTNERS, INC.

THE BANK OF NEW YORK

 

The undersigned registered owner of this Note
hereby irrevocably acknowledges receipt of a notice from Nextel Partners, Inc. (the
“Company”)
as to the occurrence of a Fundamental Change with respect to the Company and
requests and instructs the Company to repurchase the entire principal amount of
this Note, or the portion thereof (which is $1,000 or an integral multiple
thereof) below designated, in accordance with the terms of the Indenture
referred to in this Note at the price of 100% of such entire principal amount
or portion thereof, together with accrued interest to, but excluding, the
Fundamental Change Repurchase Date, to the registered holder hereof.  Capitalized terms used herein but not
defined shall have the meanings ascribed to such terms in the Indenture.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: The
  above signatures of the holder(s) hereof must correspond with the name as
  written upon the face of the Note in every particular without alteration or
  enlargement or any change whatever.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Principal
  amount to be repaid (if less than all):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social
  Security or Other Taxpayer Identification

  Number

  

 

 

ASSIGNMENT

 

For value received
                                                      hereby
sell(s) assign(s) and transfer(s) unto
                                                                        
(Please insert social security or other Taxpayer Identification Number of
assignee) the within Note, and hereby irrevocably constitutes and appoints
                                                                          
attorney to transfer said Note on the books of the Company, with full power of
substitution in the premises.

 

In connection with any transfer of the Note
prior to the expiration of the holding period applicable to sales thereof under
Rule 144(k) under the Securities Act (or any successor provision) (other than
any transfer pursuant to a registration statement that has been declared
effective under the Securities Act), the undersigned confirms that such Note is
being transferred:

 

o                                    To
Nextel Partners, Inc. or a subsidiary thereof; or

 

o                                    To
a “qualified
institutional buyer” in compliance with Rule 144A under the
Securities Act of 1933, as amended; or

 

o                                    Pursuant
to and in compliance with Rule 144 under the Securities Act of 1933, as
amended; or

 

o                                    Pursuant
to a Registration Statement which has been declared effective under the
Securities Act of 1933, as amended, and which continues to be effective at the
time of transfer;

 

and unless the Note has been
transferred to Nextel Partners, Inc. or a subsidiary thereof, the undersigned
confirms that such Note is not being transferred to an “affiliate” of the Company as
defined in Rule 144 under the Securities Act of 1933, as amended.

 

Unless one of the boxes is checked, the Trustee will refuse to register
any of the Notes evidenced by this certificate in the name of any person other
than the registered holder thereof.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)
  must be guaranteed by an “eligible guarantor institution” meeting
  the requirements of the Note registrar, which requirements include membership
  or participation in the Security Transfer Agent Medallion Program (“STAMP”)
  or such other “signature guarantee program” as may be determined by the
  Note registrar in addition to, or in substitution for, STAMP, al in
  accordance 

  

 

 

	
   

  	
   

  	
  with the
  Securities Exchange Act of 1934, as amended.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature
  Guarantee

  

 

NOTICE:  The signature on the Conversion Notice, the
Option to Elect Repayment upon a Fundamental Change or the Assignment must
correspond with the name as written upon the face of the Note in every particular
without alteration or enlargement or any change whatever.

 

 

Schedule I

 

[Include Schedule I only for a Global Note]

 

 

NEXTEL PARTNERS, INC. 

11⁄2% Convertible Senior Note Due 2008

 

No. 
            

 

 

	
  Date

  	
   

  	
  Principal Amount

  	
   

  	
  Notation Explaining Principal

  Amount Recorded

  	
   

  	
  Authorized Signature

  of Trustee or

  Custodian

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