Document:

Exhibit 4.2

 

LEVEL 3 FINANCING, INC.

 

10.00% Senior Notes due 2018

 

REGISTRATION AGREEMENT

 

New York, New York

January 20, 2010

 

To:                              Banc of America
Securities LLC

Citigroup Global Markets Inc.

Morgan Stanley & Co. Incorporated

Credit Suisse Securities (USA) LLC

Deutsche Bank Securities Inc.

Wells Fargo Securities, LLC

 

In care of:

 

Banc of America Securities LLC

One Bryant Park

New York, New York  10036

 

Citigroup Global Markets Inc. 

388 Greenwich Street 

New York, New York 10013

 

Morgan Stanley & Co. Incorporated 

1585 Broadway 

New York, New York 10036

 

Ladies and Gentlemen:

 

Level 3 Financing, Inc., a Delaware
company (the “Issuer”), proposes to issue and sell to certain purchasers (the “Purchasers”),
upon the terms set forth in a purchase agreement dated January 5, 2010
(the “Purchase Agreement”), $640,000,000 aggregate principal amount of its 10%
Senior Notes due 2018 (the “Original Notes”) (such sale, the “Initial Placement”),
to be guaranteed on an unsecured unsubordinated basis by Level 3 Communications, Inc.,
the direct parent company of the Issuer (“Parent”).  As an inducement to the Purchasers to enter
into the Purchase Agreement and in satisfaction of a condition to your
obligations thereunder, the Issuer and Parent jointly and severally agree with
you, (i) for your benefit and the benefit of the other Purchasers and (ii) for
the benefit of the holders from time to time of the Original Notes (including

 

 

you and the other
Purchasers) (each of the foregoing a “Holder” and together the “Holders”), as
follows:

 

1.  Definitions.  Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement.  As used in this Agreement,
the following capitalized defined terms shall have the following meanings:

 

“Affiliate” of any specified person
means any other person which, directly or indirectly, is in control of, is
controlled by, or is under common control with, such specified person.  For purposes of this definition, control of a
person means the power, direct or indirect, to direct or cause the direction of
the management and policies of such person whether by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

 

“Commission” means the Securities and
Exchange Commission.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the
Commission promulgated thereunder.

 

“Exchange Offer Prospectus” means the
prospectus included in the Exchange Offer Registration Statement, as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the New Notes covered by such Exchange Offer
Registration Statement, and all amendments and supplements thereto and all material
incorporated by reference therein.

 

“Exchange Offer Registration Period”
means the 180-day period following the consummation of the Registered Exchange
Offer, exclusive of any period during which any stop order shall be in effect
suspending the effectiveness of the Exchange Offer Registration Statement.

 

“Exchange Offer Registration Statement”
means a registration statement of the Issuer and Parent on an appropriate form
under the Securities Act with respect to the Registered Exchange Offer, all amendments
and supplements to such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

 

“Exchanging Dealer” means any Holder
(which may include the Purchasers) which is a broker-dealer electing to
exchange Original Notes acquired for its own account as a result of
market-making activities or other trading activities for New Notes.

 

“Holder”
has the meaning set forth in the preamble hereto.

 

“Indenture” means the Indenture
relating to the Original Notes and the New Notes, dated as of January 20,
2010, among Parent, the Issuer and The Bank of New 

 

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York Mellon, as trustee, as
the same may be amended from time to time in accordance with the terms thereof.

 

“Initial Placement” has the meaning
set forth in the preamble hereto.

 

“Majority Holders” means the Holders
of a majority of the aggregate principal amount of the Original Notes and the
New Notes registered under a Registration Statement.

 

“Managing Underwriters” means the
investment banker or investment bankers and manager or managers that shall
administer an offering of securities under a Shelf Registration Statement.

 

“New Notes” means debt securities of
the Issuer identical in all material respects to the Original Notes (except
that the interest rate step-up provisions and the transfer restrictions will be
modified or eliminated, as appropriate), to be issued under the Indenture.

 

“Original Notes” has the meaning set
forth in the preamble hereto.

 

“Prospectus” means the prospectus
included in any Registration Statement (including, without limitation, a
prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
or Rule 430B under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Original Notes or the New Notes covered by such Registration Statement,
and all amendments and supplements to the Prospectus, including post-effective
amendments.

 

“Registered Exchange Offer” means the
proposed offer to the Holders to issue and deliver to such Holders, in exchange
for the Original Notes, a like principal amount of the New Notes.

 

“Registration Securities” has the
meaning set forth in Section 3(a) hereof.

 

“Registration Statement” means any
Exchange Offer Registration Statement or Shelf Registration Statement that
covers any of the Original Notes or the New Notes pursuant to the provisions of
this Agreement, all amendments and supplements to such registration statement,
including, without limitation, post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations of the Commission
promulgated thereunder.

 

“Shelf Registration” means a
registration effected pursuant to Section 3 hereof.

 

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“Shelf Registration Period” has the
meaning set forth in Section 3(b) hereof.

 

“Shelf Registration Statement” means a
“shelf” registration statement of Parent and the Issuer pursuant to the
provisions of Section 3 hereof which covers some of or all the Original
Notes or New Notes, as applicable, on an appropriate form under Rule 415
under the Securities Act, or any similar rule that may be adopted by the
Commission, all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by
reference therein.

 

“Trustee” means the trustee with
respect to the Original Notes and the New Notes under the Indenture.

 

“underwriter” means any underwriter of
securities in connection with an offering thereof under a Shelf Registration
Statement.

 

2.  Registered Exchange Offer; Resales of New
Notes by Exchanging Dealers; Private Exchange.

 

(a)  The Issuer and Parent shall prepare
and, not later than July 19, 2010, shall file with the Commission the
Exchange Offer Registration Statement with respect to the Registered Exchange
Offer.  The Issuer and Parent shall use
their commercially reasonable efforts to cause the Exchange Offer Registration
Statement to become effective under the Securities Act by October 17,
2010.

 

(b)  Upon the effectiveness of the
Exchange Offer Registration Statement, the Issuer and Parent shall promptly
commence the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder electing to exchange Original
Notes for New Notes (assuming that such Original Notes do not constitute a
portion of an unsold allotment acquired by such Holder directly from the
Issuer, such Holder is not an Affiliate of the Issuer or Parent, such Holder
acquires the New Notes in the ordinary course of its business and such Holder
has no arrangements with any person to participate in the distribution of the
New Notes) to trade such New Notes from and after their receipt without any
limitations or restrictions under the Securities Act and without material
restrictions under the securities laws of a substantial proportion of the
several states of the United States.

 

(c)  In connection with the Registered
Exchange Offer, the Issuer and Parent shall:

 

(i) 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;

 

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

 

(iii) utilize the services of a
depositary for the Registered Exchange Offer with an address in the Borough of
Manhattan, The City of New York; and

 

(iv) comply in all material
respects with all applicable laws.

 

(d)  As soon as practicable after the
close of the Registered Exchange Offer, the Issuer and Parent shall:

 

(i) accept for exchange all
Original Notes tendered and not validly withdrawn pursuant to the Registered
Exchange Offer;

 

(ii) deliver to the Trustee for
cancellation all Original Notes so accepted for exchange; and

 

(iii) cause the Trustee promptly
to authenticate and deliver to each Holder of Original Notes a principal amount
of New Notes equal to the principal amount of the Original Notes of such Holder
so accepted for exchange.

 

(e)  The Purchasers, the Issuer and
Parent acknowledge that, pursuant to current interpretations by the Commission’s
staff of Section 5 of the Securities Act, and in the absence of an
applicable exemption therefrom, each Exchanging Dealer is required to deliver a
Prospectus in connection with a sale of any New Notes received by such
Exchanging Dealer pursuant to the Registered Exchange Offer in exchange for
Original Notes acquired for its own account as a result of market-making
activities or other trading activities. 
Accordingly, the Issuer and Parent shall:

 

(i) include the information set
forth in Annex A hereto on the cover of the Exchange Offer Registration
Statement, in Annex B hereto in the forepart of the Exchange Offer
Registration Statement in a section setting forth details of the Exchange
Offer, in Annex C hereto in the underwriting or plan of distribution
section of the Prospectus forming a part of the Exchange Offer Registration
Statement, and in Annex D hereto in the Letter of Transmittal delivered
pursuant to the Registered Exchange Offer (it being understood that a Holder’s
participation in the Exchange Offer is conditioned on the Holder, by executing
and returning the Letter of Transmittal, representing in writing to the Issuer
as set forth in Rider B of Annex D hereto); and

 

(ii) use commercially reasonable
efforts to keep the Exchange Offer Registration Statement continuously
effective under the Securities Act during the Exchange Offer Registration
Period for delivery by Exchanging Dealers in connection with sales of New Notes
received pursuant to the Registered Exchange Offer, as contemplated by Section 4(h) below.

 

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(f)  In the event that any Purchaser
determines that it is not eligible to participate in the Registered Exchange
Offer with respect to the exchange of Original Notes constituting any portion
of an unsold allotment, at the request of such Purchaser, the Issuer and Parent
shall issue and deliver to such Purchaser or the party purchasing New Notes
registered under a Shelf Registration Statement as contemplated by Section 3
hereof from such Purchaser, in exchange for such Original Notes, a like
principal amount of New Notes.  The Issuer
and Parent shall seek to cause the CUSIP Service Bureau to issue the same CUSIP
number for such New Notes as for New Notes issued pursuant to the Registered
Exchange Offer.

 

3.  Shelf Registration.  If, (i) because of any change in law or
applicable interpretations thereof by the Commission’s staff, the Issuer and
Parent determine upon advice of outside counsel that they are not permitted to
effect the Registered Exchange Offer as contemplated by Section 2 hereof,
or (ii) for any other reason the Exchange Offer Registration Statement is
not declared effective by October 17, 2010 or the Registered Exchange
Offer is not consummated on or prior to the later of (x) November 16,
2010 and (y) 30 business days following the initial effectiveness date of
the Exchange Offer Registration Statement, or (iii) any Purchaser so
requests with respect to Original Notes (or any New Notes received pursuant to Section 2(f))
not eligible to be exchanged for New Notes in a Registered Exchange Offer or,
in the case of any Purchaser that participates in any Registered Exchange
Offer, such Purchaser does not receive freely tradable New Notes, or (iv) any
Holder (other than a Purchaser) is not eligible to participate in the
Registered Exchange Offer or (v) in the case of any such Holder that
participates in the Registered Exchange Offer, such Holder does not receive
freely tradable New Notes in exchange for tendered securities, other than by
reason of such Holder being an affiliate of the Issuer and Parent within the
meaning of the Securities Act (it being understood that, for purposes of this Section 3,
(x) the requirement that a Purchaser deliver a Prospectus containing the
information required by Items 507 and/or 508 of Regulation S-K under
the Securities Act in connection with sales of New Notes acquired in exchange
for such Original Notes shall result in such New Notes being not “freely
tradeable” but (y) the requirement that an Exchanging Dealer deliver a
Prospectus in connection with sales of New Notes acquired in the Registered
Exchange Offer in exchange for Original Notes acquired as a result of
market-making activities or other trading activities shall not result in such
New Notes being not “freely tradeable”), the following provisions shall apply:

 

(a)  The Issuer and Parent shall as
promptly as practicable (but in no event more than the later of (i) July 19,
2010 or (ii) 45 days after so required or requested pursuant to this Section 3),
file with the Commission and thereafter shall use their commercially reasonable
efforts to cause to become effective under the Securities Act, or, if permitted
by Rule 430B under the Securities Act, otherwise designate an existing
registration statement filed with the Commission as, a Shelf Registration
Statement relating to the offer and sale of the Original Notes or the New
Notes, as applicable, by the Holders from time to time in accordance with the
methods of distribution elected by such Holders and set forth in such Shelf
Registration Statement (such Original Notes or New 

 

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Notes, as applicable, to be sold by such Holders under such Shelf
Registration Statement being referred to herein as “Registration Securities”); provided,
however, that, with respect to New Notes received by a Purchaser in
exchange for Original Notes constituting any portion of an unsold allotment,
the Issuer and Parent may, if permitted by current interpretations by the
Commission’s staff, file a post-effective amendment to the Exchange Offer
Registration Statement containing the information required by Regulation S-K
Items 507 and/or 508, as applicable, in satisfaction of their obligations under
this paragraph (a) with respect thereto, and any such Exchange Offer
Registration Statement, as so amended, shall be referred to herein as, and
governed by the provisions herein applicable to, a Shelf Registration
Statement.  Unless the Shelf Registration
Statement is an automatic shelf registration statement (as defined in Rule 405
under the Securities Act), the Issuer and Parent shall include the information
required by Rule 430B(b)(2)(iii) under the Securities Act.

 

(b)  The Issuer and Parent shall use
their commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective in order to permit the Prospectus forming part thereof
to be usable by Holders for a period of two years from the date the Shelf
Registration Statement becomes effective or is designated as such or such
shorter period that will terminate when all the Original Notes or New Notes, as
applicable, covered by the Shelf Registration Statement have been sold pursuant
to the Shelf Registration Statement (in any such case, such period being called
the “Shelf Registration Period”).  The
Issuer and Parent shall be deemed not to have used their commercially
reasonable efforts to keep the Shelf Registration Statement effective during
the Shelf Registration Period if the Issuer or Parent 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 (i) such
action is required by applicable law or (ii) such action is taken by such
party in good faith and for valid business reasons (not including avoidance of
the obligations of the Issuer and Parent hereunder), including the acquisition
or divestiture of assets, so long as the Issuer and Parent promptly thereafter
comply with the requirements of Section 4(k) hereof, if applicable.

 

4.  Registration Procedures.  In connection with any Shelf Registration
Statement and, to the extent applicable, any Exchange Offer Registration
Statement, the following provisions shall apply:

 

(a) 
(i)  The Issuer and Parent shall furnish to you, prior to the filing
or designation thereof with the Commission, a copy of any Exchange Offer
Registration Statement, each amendment thereof and each amendment or
supplement, if any, to the Prospectus included therein and shall use its
commercially reasonable efforts to reflect in each such document, when so filed
or designated with the Commission, such comments as you reasonably may propose.

 

(ii) The
Issuer and Parent shall furnish to you, prior to the filing or designation
thereof with the Commission, a copy of any Shelf Registration 

 

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Statement, each amendment
thereof and each amendment or supplement, if any, to the Prospectus included
therein and shall use its commercially reasonable efforts to reflect in each
such document, when so filed or designated with the Commission, such comments
as any Holder whose securities are to be included in such Shelf Registration
Statement reasonably may propose.

 

(b) 
The Issuer and Parent shall ensure that (i) any Registration Statement and
any amendment thereto and any Prospectus forming part thereof and any amendment
or supplement thereto complies in all material respects with the Securities Act
and the rules and regulations thereunder, (ii) any Registration
Statement and any amendment thereto does not, when it becomes effective (or, in
the case of a previously
filed registration statement that is effective at the time it is designated as
a Shelf Registration Statement, when it is so designated), 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 Registration Statement, and
any amendment or supplement to such Prospectus, does not include an untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

 

(c) 
(1) The Issuer and Parent shall advise you and, in the case of a Shelf
Registration Statement, the Holders of securities covered thereby, and, if
requested by you or any such Holder, confirm such advice in writing:

 

(i) when a Registration Statement and any
amendment thereto has been filed (or, in the case of a previously filed registration statement
designated as a Shelf Registration Statement, when it is so designated)
with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective (or, in the case of a previously filed
registration statement that is effective at the time it is designated as a
Shelf Registration Statement, when it is so designated); and

 

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

 

(2)  The Issuer and Parent shall advise you and, in the case of a
Shelf Registration Statement, the Holders of securities covered thereby, and,
in the case of an Exchange Offer Registration Statement, any Exchanging Dealer
which has provided in writing to the Issuer a telephone or facsimile number and
address for notices, and, if requested by you or any such Holder or Exchanging
Dealer, confirm such advice in writing:

 

8

 

(i) 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;

 

(ii) of the receipt by the Issuer or Parent of
any notification with respect to the suspension of the qualification of the
securities included therein for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and

 

(iii) of the happening of any event that
requires the making of any changes in the Registration Statement or the
Prospectus so that, as of such date, the statements therein are not misleading
and do not 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 the
light of the circumstances under which they were made) not misleading (which
advice shall be accompanied by an instruction to suspend the use of the
Prospectus until the requisite changes have been made).

 

Each such Holder or Exchanging Dealer agrees
by its acquisition of such securities to be sold by such Holder or Exchanging
Dealer, that, upon being so advised by the Issuer or Parent of any event
described in clause (iii) of this paragraph (c)(2), such Holder
or Exchanging Dealer will forthwith discontinue disposition of such securities
under such Registration Statement or Prospectus, until such Holder’s or
Exchanging Dealer’s receipt of the copies of the supplemented or amended
Prospectus contemplated by paragraph 4(k) hereof, or until it is
advised in writing by the Issuer or Parent that the use of the applicable
Prospectus may be resumed.

 

(d) 
The Issuer and Parent shall use their commercially reasonable efforts to obtain
the withdrawal of any order suspending the effectiveness of any Registration
Statement at the earliest possible time.

 

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

 

(f) 
The Issuer and Parent shall, during the Shelf Registration Period, deliver to
each Holder of securities included within the coverage of any Shelf
Registration Statement, without charge, as many copies of the Prospectus
(including each preliminary Prospectus) included in such Shelf Registration
Statement and any amendment or supplement thereto as such Holder may reasonably
request; and each of the Issuer and Parent hereby consent to the use of the
Prospectus or any amendment or supplement thereto by each of the selling 

 

9

 

Holders of securities in
connection with the offering and sale of the securities covered by the
Prospectus or any amendment or supplement thereto.

 

(g) 
The Issuer and Parent shall furnish to each Exchanging Dealer which 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 the Exchanging Dealer so requests in writing,
any documents incorporated by reference therein and all exhibits thereto
(including those incorporated by reference therein).

 

(h) 
The Issuer and Parent shall, during the Exchange Offer Registration Period,
promptly deliver to each Exchanging Dealer, without charge, as many copies of
the Prospectus included in such Exchange Offer Registration Statement and any
amendment or supplement thereto as such Exchanging Dealer may reasonably
request for delivery by such Exchanging Dealer in connection with a sale of New
Notes received by it pursuant to the Registered Exchange Offer; and the Issuer
and Parent hereby consent to the use of the Prospectus or any amendment or
supplement thereto by any such Exchanging Dealer, as aforesaid.

 

(i) 
Prior to the Registered Exchange Offer or any other offering of securities
pursuant to any Registration Statement, the Issuer shall register or qualify or
cooperate with the Holders of securities included therein and their respective
counsel in connection with the registration or qualification of such securities
for offer and sale under the securities or blue sky laws of such jurisdictions
as any such Holder 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 Issuer will not be required to qualify generally to do business in any
jurisdiction where it is not then so qualified or to take any action which
would subject it to general service of process or to taxation in any such
jurisdiction where it is not then so subject.

 

(j) 
The Issuer and Parent shall cooperate with the Holders of Original Notes to
facilitate the timely preparation and delivery of certificates representing
Original Notes to be sold pursuant to any Registration Statement free of any
restrictive legends and in such denominations and registered in such names as
Holders may request prior to sales of securities pursuant to such Registration
Statement.

 

(k) 
Upon the occurrence of any event contemplated by paragraph (c)(2)(iii) above,
the Issuer and Parent shall promptly prepare a post-effective amendment to any
Registration Statement or an amendment or supplement to the related Prospectus
or file any other required document so that, as thereafter delivered to
purchasers of the securities included therein, the Prospectus will not include
an untrue statement of a material fact or omit to state

 

10

 

any material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

 

(l) 
Not later than the
effective date (or the designation date, in the case of a previously filed
registration statement that is effective at the time it is designated as a
Shelf Registration Statement) of any such Registration Statement hereunder, the
Issuer and Parent shall provide a CUSIP number for each of the
Original Notes or the New Notes, as the case may be, registered under such
Registration Statement, and provide the Trustee with printed certificates for
such Original Notes or New Notes, in a form, if requested by the applicable
Holder or Holder’s counsel, eligible for deposit with The Depository Trust
Company or any successor thereto under the Indenture.

 

(m) 
The Issuer and Parent shall use their commercially reasonable efforts to comply
with all applicable 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 the security holders of
the Issuer a consolidated earning statement (which need not be audited)
covering a twelve-month period commencing after the effective date (or the designation date, in the case of a
previously filed registration statement that is effective at the time it is
designated as a Shelf Registration Statement) of the Registration
Statement and ending not later than 15 months thereafter, as soon as
practicable after the end of such period, which consolidated earning statement
shall satisfy the provisions of Section 11(a) of the Securities Act.

 

(n) 
The Issuer and Parent shall cause the Indenture to be qualified under the Trust
Indenture Act of 1939, as amended, on or prior to the effective date (or the designation date, in the case of a
previously filed registration statement that is effective at the time it is
designated as a Shelf Registration Statement) of any Shelf Registration
Statement or Exchange Offer Registration Statement.

 

(o) 
The Issuer and Parent may require each Holder of securities to be sold pursuant
to any Shelf Registration Statement to furnish to the Issuer in writing such
information regarding the Holder and the distribution of such securities as the
Issuer may from time to time reasonably require for inclusion in such
Registration Statement.  The Issuer may
exclude from any such Registration Statement the securities of any such Holder
who fails to furnish such information within a reasonable time after receiving
such request.  Each Holder as to which
any Shelf Registration is being effected agrees to furnish promptly to the
Issuer all information required to be disclosed in order to make the
information previously furnished to the Issuer by such Holder not materially
misleading.  Each Holder further agrees
that neither such Holder nor any underwriter participating in any disposition
pursuant to any Shelf Registration Statement on such Holder’s behalf will make
any offer relating to the securities to be sold pursuant to such Shelf
Registration Statement that would constitute an issuer free writing 

 

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prospectus (as defined in Rule 433
under the Securities Act) or that would otherwise constitute a “free writing
prospectus” (as defined in Rule 405 under the Securities Act) required to
be filed by the Issuer and Parent with the Commission or retained by the Issuer
and Parent under Rule 433 of the Securities Act, unless it has obtained
the prior written consent of the Issuer and Parent (and except for as otherwise
provided in any underwriting agreement entered into by the Issuer and Parent
and any such underwriter).

 

(p) 
The Issuer and Parent shall, if requested, promptly incorporate in a Prospectus
supplement or post-effective amendment to a Shelf Registration Statement, such
information as the Managing Underwriters, if any, and the Majority Holders
reasonably agree should be included therein and shall make all required filings
of such Prospectus supplement or post-effective amendment as soon as notified
of the matters to be incorporated in such Prospectus supplement or
post-effective amendment.

 

(q) 
(i)  In the case of any Shelf Registration Statement, the Issuer and
Parent shall enter into such agreements (including underwriting agreements) and
take all other appropriate actions in order to expedite or facilitate the
registration or the disposition of the Original Notes, and in connection
therewith, if an underwriting agreement is entered into, cause the same to
contain indemnification provisions and procedures no less favorable than those
set forth in Section 6 hereof (or such other provisions and procedures
acceptable to the Majority Holders and the Managing Underwriters, if any), with
respect to all parties to be indemnified pursuant to Section 6 hereof.

 

(ii)  Without limiting in any way paragraph (q)(i), no
Holder may participate in any underwritten registration hereunder unless such
Holder (x) agrees to sell such Holder’s securities to be covered by such
registration on the basis provided in any underwriting arrangements approved by
the Majority Holders and the Managing Underwriters and (y) completes and
executes in a timely manner all customary questionnaires, powers of attorney,
underwriting agreements and other documents reasonably required by the Issuer
or the Managing Underwriters in connection with such underwriting arrangements.

 

(r) 
In the case of any Shelf Registration Statement, the Issuer and Parent shall (i) make
reasonably available for inspection by the Holders of securities to be
registered thereunder, any underwriter participating in any disposition
pursuant to such Registration Statement, and any attorney, accountant or other
agent retained by the Holders or any such underwriter all relevant financial
and other records, pertinent corporate documents and properties of Parent and
its subsidiaries reasonably requested by such person; (ii) cause the
officers, directors and employees of the Issuer and Parent to supply all
relevant information reasonably requested by the Holders or any such
underwriter, attorney, accountant or agent in connection with any such
Registration Statement as is customary for 

 

12

 

due diligence examinations
in connection with primary underwritten offerings; provided, however,
that any information that is nonpublic at the time of delivery of such
information shall be kept confidential by the Holders or any such underwriter,
attorney, accountant or agent, unless such disclosure is made in connection
with a court proceeding or required by law, or such information becomes
available to the public generally or through a third party without an
accompanying obligation of confidentiality; (iii) make such
representations and warranties to the Holders of securities registered
thereunder and the underwriters, if any, in form, substance and scope as are
customarily made by an issuer to underwriters in primary underwritten
offerings; (iv) obtain opinions of counsel to the Issuer and Parent (which
counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Managing Underwriters, if any) addressed to each selling
Holder and the underwriters, if any, covering such matters as are customarily
covered in opinions requested in underwritten offerings and such other matters
as may be reasonably requested by such Holders and underwriters; (v) obtain
“cold comfort” letters (or, in the case of any person that does not satisfy the
conditions for receipt of a “cold comfort” letter specified in Statement on
Auditing Standards No. 72 or any successor standard, an “agreed-upon
procedures” letter under Statement on Auditing Standards No. 35 or any
successor standard) and updates thereof from the independent certified public
accountants of Parent (and, if necessary, any other independent certified
public accountants of any subsidiary of Parent or of any business acquired by
Parent for which financial statements and financial data are, or are required
to be, included or incorporated by reference in the Registration Statement),
addressed to each selling Holder of securities registered thereunder and the
underwriters, if any, in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with primary
underwritten offerings; and (vi) deliver such documents and certificates
as may be reasonably requested by the Majority Holders and the Managing
Underwriters, if any, including those to evidence compliance with Section 4(k) and
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Issuer and Parent.  The foregoing actions set forth in clauses
(iii), (iv), (v) and (vi) of this Section 4(r) shall be
performed (A) on the effective date (or the designation date, in the case of a
previously filed registration statement that is effective at the time it is
designated as a Shelf Registration Statement) of such Registration
Statement and each post-effective amendment thereto and (B) at each
closing under any underwriting or similar agreement as and to the extent
required thereunder.

 

(s) 
In the case of any Exchange Offer Registration Statement, the Issuer and Parent
shall (i) make reasonably available for inspection by each Purchaser, and
any attorney, accountant or other agent retained by such Purchaser, all
relevant financial and other records, pertinent corporate documents and
properties of Parent and its subsidiaries reasonably requested by such person; (ii) cause
the officers, directors and employees of the Issuer and Parent to supply all
relevant information reasonably requested by such Purchaser or any such
attorney, 

 

13

 

accountant or agent in
connection with any such Registration Statement as is customary for due
diligence examinations in connection with primary underwritten offerings; provided,
however, that any information that is nonpublic at the time of delivery
of such information shall be kept confidential by such Purchaser or any such
attorney, accountant or agent, unless such disclosure is made in connection
with a court proceeding or required by law, or such information becomes
available to the public generally or through a third party without an
accompanying obligation of confidentiality; (iii) make such
representations and warranties to such Purchaser, in form, substance and scope
as are customarily made by an issuer to underwriters in primary underwritten
offerings; (iv) obtain opinions of counsel to the Issuer and Parent (which
counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to such Purchaser and its counsel), addressed to such Purchaser,
covering such matters as are customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by
such Purchaser or its counsel; (v) obtain “cold comfort” letters and
updates thereof from the independent certified public accountants of Parent
(and, if necessary, any other independent certified public accountants of any
subsidiary of Parent or of any business acquired by Parent for which financial
statements and financial data are, or are required to be, included or
incorporated by reference in the Registration Statement), addressed to such
Purchaser, in customary form and covering matters of the type customarily
covered in “cold comfort” letters in connection with primary underwritten
offerings, or if requested by such Purchaser or its counsel in lieu of a “cold
comfort” letter, an agreed-upon procedures letter under Statement on Auditing
Standards No. 35 or any successor standard, covering matters requested by
such Purchaser or its counsel; and (vi) deliver such documents and
certificates as may be reasonably requested by such Purchaser or its counsel,
including those to evidence compliance with Section 4(k) and with
conditions customarily contained in underwriting agreements.  The foregoing actions set forth in clauses
(iii), (iv), (v) and (vi) of this Section 4(s) shall be
performed (A) at the close of the Registered Exchange Offer and (B) on
the effective date of any post-effective amendment to the Exchange Offer
Registration Statement.

 

5.  Registration Expenses.  The Issuer and Parent shall jointly and
severally bear all expenses incurred in connection with the performance of
their obligations under Sections 2, 3 and 4 hereof and, in the event of
any Shelf Registration Statement, will reimburse the Holders for the reasonable
fees and disbursements of one firm or counsel (in addition to one local counsel
in each relevant jurisdiction) designated by the Majority Holders to act as
counsel for the Holders in connection therewith.  Notwithstanding the foregoing, the Holders of
the securities being registered shall pay all agency or brokerage fees and
commissions and underwriting discounts and commissions attributable to the sale
of such securities and the fees and disbursements of any counsel or other
advisors or experts retained by such Holders (severally or jointly), other than
the counsel and experts specifically referred to above in this Section 5,
transfer taxes on resale of any of the securities by such Holders and any
advertising 

 

14

 

expenses incurred by or on
behalf of such Holders in connection with any offers they may make.

 

6.  Indemnification and Contribution.  (a)  In connection with any Registration
Statement, the Issuer and Parent jointly and severally agree to indemnify and
hold harmless each Holder of securities covered thereby (including each
Purchaser and, with respect to any Prospectus delivery as contemplated in Section 4(h) hereof,
each Exchanging Dealer), the directors, officers, employees and agents of each
such Holder and each other person, if any, who controls any such Holder within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act against any and all losses, claims, damages or liabilities, joint
or several, to which they or any of them may become subject under the
Securities Act, the Exchange Act or other Federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained
in the Registration Statement as originally filed or in any amendment thereof,
or in any preliminary Prospectus or Prospectus, or in any amendment thereof or
supplement thereto, or in any issuer free writing prospectus approved for use
by the Issuer and Parent, 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 agrees to
reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Issuer and Parent will not be liable in any case to the extent that
any such loss, claim, damage or liability arises out of or is based upon any
such untrue statement or alleged untrue statement or omission or alleged
omission made therein in reliance upon and in conformity with written
information furnished to the Issuer or Parent by or on behalf of any such
Holder specifically for inclusion therein. 
This indemnity agreement will be in addition to any liability which the
Issuer and Parent may otherwise have.

 

The Issuer and Parent also jointly and severally
agree to indemnify or contribute to Losses (as defined below) of, as provided
in Section 6(d), any underwriters of Original Notes or New Notes
registered under a Shelf Registration Statement, their officers, directors,
employees and agents and each person who controls such underwriters on
substantially the same basis as that of the indemnification of the Purchasers
and the selling Holders provided in this Section 6(a) and shall, if
requested by any Holder, enter into an underwriting agreement reflecting such
agreement, as provided in Section 4(q) hereof.

 

(b)  Each Holder of securities covered
by a Registration Statement (including each Purchaser and, with respect to any
Prospectus delivery as contemplated in Section 4(h) hereof, each
Exchanging Dealer) severally and not jointly agrees to indemnify and hold
harmless the Issuer, Parent, each of their directors and officers and each
other person, if any, who controls the Issuer or Parent within the meaning of 

 

15

 

Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the foregoing indemnity from the Issuer and
Parent to each such Holder, but only with reference to written information
relating to such Holder furnished to the Issuer by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing
indemnity.  This indemnity agreement will
be in addition to any liability which any such Holder may otherwise have.

 

(c)  Promptly after receipt by an
indemnified party under this Section 6 of notice of the commencement of
any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 6, notify the
indemnifying party in writing of the commencement thereof; but the failure so
to notify the indemnifying party (i) will not relieve it from liability
under paragraph (a) or (b) above unless and to the extent it did
not otherwise learn of such action and such failure results in the forfeiture
by the indemnifying party of substantial rights and defenses and (ii) will
not, in any event, relieve the indemnifying party from any obligations to any
indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. 
The indemnifying party shall be entitled to appoint counsel of the
indemnifying party’s choice at the indemnifying party’s expense to represent
the indemnified party in any action for which indemnification is sought (in
which case the indemnifying party shall not thereafter be responsible for the
fees and expenses of any separate counsel retained by the indemnified party or
parties except as set forth below); provided, however, that such
counsel shall be reasonably satisfactory to the indemnified party.  Notwithstanding the indemnifying party’s
election to appoint counsel to represent the indemnified party in an action,
the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel (and local counsel) if (i) the
use of counsel chosen by the indemnifying party to represent the indemnified
party would present such counsel with a conflict of interest, (ii) the
actual or potential defendants in, or targets of, any such action include both
the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that there may be legal defenses available to
it and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, (iii) the indemnifying party
shall not have employed counsel reasonably satisfactory to the indemnified
party to represent the indemnified party within a reasonable time after notice
of the institution of such action or (iv) the indemnifying party shall
authorize the indemnified party to employ separate counsel at the expense of
the indemnifying party.  An indemnifying
party will not, without the prior written consent of the indemnified parties,
settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding.  It is understood,
however, that the Issuer and Parent shall, in connection with any one such
action or separate but substantially similar or related actions in the same
jurisdiction arising out of the same general allegations or 

 

16

 

circumstances, be liable for the reasonable fees and expenses of only
one separate firm of attorneys (in addition to any local counsel) at any time
for all such Holders and controlling persons. 
An indemnifying party shall not be liable under this Section 6 to
any indemnified party regarding any settlement or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise
or consent is consented to by such indemnifying party, which consent shall not
be unreasonably withheld.

 

(d)  In the event that the indemnity
provided in paragraph (a) or (b) of this Section 6 is
unavailable to or insufficient to hold harmless an indemnified party for any
reason, then the Issuer, Parent and the Holders, in lieu of indemnifying such
indemnified party, shall have a joint and several obligation to contribute to
the aggregate losses, claims, damages and liabilities (including legal or other
expenses reasonably incurred in connection with investigating or defending
same) (collectively “Losses”) to which the Issuer, Parent and the Holders may
be subject in such proportion as is appropriate to reflect the relative
benefits received by the Issuer and Parent, on the one hand, and by the
Holders, on the other hand, from the Initial Placement and the Registration
Statement which resulted in such Losses; provided, however, that
in no case shall any Purchaser or any subsequent Holder of any Original Note or
New Note be responsible, in the aggregate, for any amount in excess of the
purchase discount or commission applicable to such Original Note, or in the
case of a New Note, applicable to the security which was exchangeable into such
New Note, as set forth in the Final Memorandum and in the Purchase Agreement,
nor shall any underwriter be responsible for any amount in excess of the
underwriting discount or commission applicable to the securities purchased by
such underwriter under the Registration Statement which resulted in such
Losses.  If the allocation provided by
the immediately preceding sentence is unavailable for any reason, the Issuer,
Parent and the Holders severally shall contribute in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of the Issuer and Parent, on the one hand, and the Holders, on the other
hand, in connection with the statements or omissions which resulted in such
Losses as well as any other relevant equitable considerations.  Benefits received by the Issuer and Parent
shall be deemed to be equal to the sum of (x) the total net proceeds from
the Initial Placement (before deducting expenses) as set forth in the Final
Memorandum and in the Purchase Agreement and (y) the total amount of
additional interest which the Issuer was not required to pay as a result of
registering the securities covered by the Registration Statement which resulted
in such Losses.  Benefits received by the
Purchasers shall be deemed to be equal to the total purchase discounts and
commissions as set forth in the Final Memorandum and in the Purchase Agreement,
and benefits received by any other Holders shall be deemed to be equal to the
value of receiving Original Notes or New Notes, as applicable, registered under
the Securities Act.  Benefits received by
any underwriter shall be deemed to be equal to the total underwriting discounts
and commissions, as set forth on the cover page of the Prospectus forming
a part of the Registration Statement which resulted in such Losses.  Relative fault shall be determined 

 

17

 

by reference to whether any alleged untrue statement or omission
relates to information provided by the Issuer and Parent, on the one hand, or
by Holders, on the other hand.  The
parties agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation which does
not take account of the equitable considerations referred to above.  Notwithstanding the provisions of this
paragraph (d), 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 Section 6,
each person who controls a Holder within the meaning of either the Securities
Act or the Exchange Act and each director, officer, employee and agent of such
Holder shall have the same rights to contribution as such Holder, and each
person who controls the Issuer or Parent within the meaning of either the Securities
Act or the Exchange Act, each of their officers who shall have signed the
Registration Statement and each of their directors shall have the same rights
to contribution as the Issuer and Parent, subject in each case to the
applicable terms and conditions of this paragraph (d).

 

(e)  The provisions of this Section 6
will remain in full force and effect, regardless of any investigation made by
or on behalf of any Purchaser, any other Holder, the Issuer and Parent or any
underwriter or any of the officers, directors or controlling persons referred
to in this Section 6, and will survive the sale by a Holder of securities
covered by a Registration Statement.

 

7.  Miscellaneous.

 

(a)  No Inconsistent Agreements.  None of the Issuer or Parent has, as of the
date hereof, entered into, nor shall it, on or after the date hereof, enter
into, any agreement with respect to its securities that limits the rights
granted to the Holders herein or otherwise conflicts with the provisions
hereof.

 

(b)  Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, qualified, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Issuer has obtained the written consent of the
Holders of at least a majority of the then outstanding aggregate principal
amount of Original Notes (or, after the consummation of any Exchange Offer in
accordance with Section 2 hereof, of New Notes); provided that,
with respect to any matter that directly or indirectly affects the rights of
any Purchaser hereunder, the Issuer shall obtain the written consent of each
such Purchaser against which such amendment, qualification, supplement, waiver
or consent is to be effective.  Notwithstanding
the foregoing (except the foregoing proviso), a waiver or consent to departure
from the provisions hereof with respect to a matter that relates exclusively to
the rights of Holders whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by the Majority Holders, determined on the
basis of securities being sold rather than registered under such Registration
Statement.

 

18

 

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

 

(1) if to a Holder, at the most current address given by such
Holder to the Issuer in accordance with the provisions of this Section 7(c),
which address initially is, with respect to each Holder, the address of such
Holder maintained by the registrar under the Indenture, with a copy in like
manner to Banc of America Securities LLC by facsimile (212-901-7897), Citigroup
Global Markets Inc. by facsimile (212-816-7219) and Morgan Stanley &
Co. Incorporated by facsimile (212-404-9359), and confirmed by mail to them at
Banc of America Securities LLC, One Bryant Park, New York, New York 10036,
Attention: Internal Origination Counsel; Citigroup Global Markets Inc., 388
Greenwich Street, New York, New York 10013, Attention: Legal Department; and
Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, New York
10036, Attention: Leveraged & Acquisition Finance;

 

(2) if to you, initially at the address set forth in the Purchase
Agreement; and

 

(3) if to the Issuer or Parent, initially at the address set forth
in the Purchase Agreement.

 

All such notices and communications shall be
deemed to have been duly given when received.

 

The Purchasers or the Issuer by notice to the
other may designate additional or different addresses for subsequent notices or
communications.

 

(d)  Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties,
including, without the need for an express assignment or any consent by the
Issuer and Parent or subsequent Holders of Original Notes and/or New
Notes.  The Issuer and Parent hereby
agree to extend the benefits of this Agreement to any Holder of Original Notes
and/or New Notes and any such Holder may specifically enforce the provisions of
this Agreement as if an original party hereto.

 

(e)  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.

 

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

 

19

 

(g)  Governing Law.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS
THEREOF).

 

(h)  Severability.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstances,
is held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired
or affected thereby, it being intended that all the rights and privileges of
the parties shall be enforceable to the fullest extent permitted by law.

 

(i)  Securities Held by the Issuer or
Parent, etc.  Whenever the consent or
approval of Holders of a specified percentage of principal amount of Original
Notes or New Notes is required hereunder, Original Notes or New Notes, as
applicable, held by the Issuer, Parent or their Affiliates (other than
subsequent Holders of Original Notes or New Notes if such subsequent Holders
are deemed to be Affiliates solely by reason of their holdings of such Original
Notes or New Notes) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

 

(j)  Termination.  This Agreement shall automatically terminate,
without any further action on the part of the Issuer and Parent or the
Purchasers, upon the termination or cancellation of the Purchase Agreement
prior to the Closing Date.

 

20

 

Please
confirm that the foregoing correctly sets forth the agreement among Parent, the
Issuer and you.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Level
  3 Financing, Inc. 

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas C. Stortz

  
	
   

  	
  Name:
  Thomas C. Stortz 

  
	
   

  	
  Title:
  Executive Vice President and Chief Legal Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Level
  3 Communications, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Neil J. Eckstein

  
	
   

  	
  Name:
  Neil J. Eckstein 

  
	
   

  	
  Title:
  Senior Vice President and Assistant General Counsel

  
				

 

21

 

The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.

 

 

	
  By: 

  	
  Banc of America Securities LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ John M. Rote

  	
   

  
	
  Name: John M. Rote

  	
   

  
	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  Citigroup Global Markets
  Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Stuart G. Dickson

  	
   

  
	
  Name: Stuart G. Dickson

  	
   

  
	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  Morgan Stanley & Co. Incorporated

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ James E. Bonetti

  	
   

  
	
  Name: James E. Bonetti

  	
   

  
	
  Title: Authorized
  Signatory

  	
   

  
								

 

22

 

ANNEX A

 

Each broker-dealer that receives New Notes
for its own account pursuant to the Registered Exchange Offer must acknowledge
that it will deliver a prospectus in connection with any resale of such New
Notes.  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 New Notes received in exchange for Original Notes
where such New Notes were acquired by such broker-dealer as a result of
market-making activities or other trading activities.  The Issuer and Parent have agreed that, starting
on the date hereof (the “Expiration Date”) and ending on the close of business
on the day that is 180 days following the Expiration Date, it will make this
Prospectus available to any broker-dealer for use in connection with any such
resale.  See “Plan of Distribution.”

 

 

ANNEX B

 

Each broker-dealer that receives New Notes
for its own account in exchange for Original Notes, where such Original Notes
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 New Notes. 
See “Plan of Distribution.”

 

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each broker-dealer that receives New Notes
for its own account pursuant to the Registered Exchange Offer must acknowledge
that it will deliver a prospectus in connection with any resale of such New
Notes.  The Prospectus, as it may be
amended or supplemented from time to time, may be used by a broker-dealer in
connection with resales of New Notes received in exchange for Original Notes
where such Original Notes were acquired as a result of market-making activities
or other trading activities.  Each of the
Issuer and Parent has agreed that, starting on the Expiration Date and ending
on the close of business on the day that is 180 days following 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            , 2010, all dealers effecting
transactions in the Exchange Securities may be required to deliver a
prospectus.*

 

Neither the Issuer nor Parent will receive
any proceeds from any sale of New Notes by broker-dealers.  New Notes 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 New Notes 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 and/or the
purchasers of any such New Notes.  Any
broker-dealer that resells New Notes that were received by it for its own
account pursuant to the Registered Exchange Offer and any broker or dealer that
participates in a distribution of such New Notes may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit of any such resale of
New Notes and any commissions 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 Issuer and Parent 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 Issuer and Parent have agreed to pay all
expenses incident to the Exchange Offer (other than the expenses of counsel for
the Holders of the Original Notes) other than commissions or concessions of any
brokers or

 

* 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.

 

 

dealers and will indemnify the Holders of the
Original Notes (including any broker-dealers) against certain liabilities,
including liabilities under the Securities Act.

 

[If
applicable, add information required by Regulation S-K Items 507 and/or
508.]

 

2

 

ANNEX D

 

Rider A

 

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:

 

 

Rider B

 

If the undersigned is not a broker-dealer,
the undersigned represents that it acquired the New Notes in the ordinary
course of its business, it is not engaged in, and does not intend to engage in,
a distribution of New Notes and it has no arrangements or understandings with
any person to participate in a distribution of the New Notes.  If the undersigned is a broker-dealer that
will receive New Notes for its own account in exchange for Original Notes, it
represents that the Original Notes to be exchanged for New Notes were acquired
by it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with any resale of
such New Notes; 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.Exhibit 4.3

 

	
   

  	
   

  

 

 

LEVEL
3 COMMUNICATIONS, INC.,

 

as
Guarantor,

 

LEVEL
3 COMMUNICATION, LLC.,

 

as
Guarantor,

 

LEVEL
3 FINANCING, INC.

 

as
Issuer,

 

and

 

THE
BANK OF NEW YORK MELLON,

 

as
Trustee

 

 

Supplemental
Indenture

 

Dated
as of January 20, 2010

 

 

 

12.25% Senior Notes Due 2013

 

	
   

  	
   

  

 

 

SUPPLEMENTAL INDENTURE

 

SUPPLEMENTAL INDENTURE
(this “Supplemental Indenture”), dated as of January 20, 2010, by and
among LEVEL 3 FINANCING, INC., a Delaware corporation (the “Issuer”), LEVEL 3
COMMUNICATIONS, INC., a Delaware corporation (“Parent”), LEVEL 3
COMMUNICATIONS, LLC, a Delaware limited liability company (“Level 3 LLC” and,
together with Parent, the “Guarantors”), and THE BANK OF NEW YORK MELLON, a New
York banking corporation (the “Trustee”), as Trustee under the Indenture (as
hereinafter defined).

 

WHEREAS, the Issuer,
Parent and the Trustee have as of March 14, 2006 entered into an
Indenture, as supplemented by (i) a supplemental indenture, dated as of October 12,
2006, by and among the Issuer, Level 3 LLC and the Trustee, (ii) a
supplemental indenture, dated as of October 12, 2006, by and among the
Issuer, Parent, Level 3 LLC and the Trustee; (iii) a supplemental
indenture, dated as of January 4, 2007, by and among the Issuer, Parent,
Level 3 LLC, Broadwing Financial Services, Inc. (“Broadwing”) and the
Trustee and (iv) a supplemental indenture, dated as of February 23,
2007, by and among the Issuer, Parent, Level 3 LLC, Broadwing and the Trustee
(as supplemented, the “Indenture”), providing for the issuance by the Issuer
from time to time of its 12.25% Senior Notes due 2013 (the “Outstanding
Securities”);

 

WHEREAS, Section 902
of the Indenture provides, among other things, that the Issuer, the Guarantors
and the Trustee, with the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities, may enter into one or more
supplemental indentures for the purpose of adding provisions to or changing or
eliminating certain of the provisions of the Indenture;

 

WHEREAS, the Issuer has
received the written consents of the Holders of a majority of the aggregate
principal amount of the Outstanding Securities to amend the Indenture as
provided herein and enter into this Supplemental Indenture;

 

WHEREAS, the Issuer
represents that the consents of the Holders of a majority of the aggregate
principal amount of the Outstanding Securities is sufficient to effect the
amendments contained herein;

 

WHEREAS, the Issuer
desires to enter into this Supplemental Indenture, and has duly authorized the execution
and delivery of this Supplemental Indenture to modify the Indenture;

 

WHEREAS, concurrent with
the execution hereof, the Issuer has delivered to the Trustee an Officers’
Certificate and has caused its counsel to deliver to the Trustee an Opinion of
Counsel; and

 

WHEREAS, all conditions
and requirements of the Indenture necessary to make this Supplemental Indenture
a valid, binding and legal instrument in accordance with its terms have been
performed and fulfilled by the parties hereto and the execution and delivery
thereof have been in all respects duly authorized by the parties hereto.

 

NOW, THEREFORE:

 

For and in consideration
of the mutual premises and agreements herein contained, the Issuer, the
Guarantors and the Trustee covenant and agree, for the equal and proportionate
benefit of all Holders of the Outstanding Securities, as follows:

 

 

ARTICLE I.

 

EFFECTIVENESS AND EFFECT

 

Section 1.1            Effectiveness
and Effect.

 

This Supplemental
Indenture shall take effect on the date hereof, provided, however, that the
amendments provided for in Article Two hereof shall only become operative
if an aggregate principal amount of the Outstanding Securities exceeding
$275,000,000 is accepted by the Issuer for payment on the Initial Payment Date
(as defined in that certain Offer to Purchase and Consent Solicitation
Statement of the Issuer, dated January 5, 2010), and such amendments
provided for in Article Two hereof shall have no force or effect prior to
the operative time specified in this Section. 
Subject to the foregoing, the provisions set forth in this Supplemental
Indenture shall be deemed to be, and shall be construed as part of, the
Indenture.  All references to the
Indenture in the Indenture or in any other agreement, document or instrument
delivered in connection therewith or pursuant thereto shall be deemed to refer
to the Indenture as amended by this Supplemental Indenture.  Except as amended hereby, the Indenture shall
remain in full force and effect.

 

ARTICLE II.

 

AMENDMENT OF THE INDENTURE

 

Section 2.1            Deletion
of Definitions and Related References

 

Section 101 of the
Indenture is hereby amended to delete in their entirety all terms and their
respective definitions for which all references are eliminated in the Indenture
as a result of the amendments set forth in Section 2.2 of this
Supplemental Indenture.

 

Section 2.2            Amendments
to Indenture.

 

The Indenture is hereby amended by deleting the following sections of
the Indenture and all references thereto in the Indenture in their entirety and
replacing each such section with the term “INTENTIONALLY OMITTED”:

 

Section 1004
(Corporate Existence);

Section 1005 (Maintenance of Properties);

Section 1006 (Insurance);

Section 1007 (Reports);

Section 1008 (Statement by Officers as to Default);

Section 1010 (Limitation on Consolidated Debt);

Section 1011 (Limitation on Debt of the Issuer and Issuer Restricted
Subsidiaries);

Section 1012 (Limitation on Restricted Payments);

Section 1013 (Limitation on Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries);

Section 1014 (Limitation on Liens);

Section 1015 (Limitation on Sale and Leaseback Transactions);

Section 1016 (Limitation on Asset Dispositions);

Section 1017 (Limitation on Issuance and Sales of Capital Stock of
Restricted Subsidiaries);

Section 1018
(Transactions with Affiliates);

Section 1019
(Limitation on Designations of Unrestricted Subsidiaries);

Section 1021
(Covenant Suspension);

Section 501(4),
(6) and (7) (Events of Default);

Section 801(3) and
(4) (Parent May Consolidate, etc., Only on Certain Terms);

Section 803(3) and
(4) (Issuer May Consolidate, etc., Only on Certain Terms); and

Section 1204(4) (Conditions
to Defeasance or Covenant Defeasance).

 

 

ARTICLE III.

 

MISCELLANEOUS

 

Section 3.1            Counterparts.

 

This Supplemental Indenture may be
executed in counterparts, each of which when so executed shall be deemed to be
an original, but all such counterparts shall together constitute one and the
same instrument.

 

Section 3.2            Severability.

 

In
the event that any provision in this Supplemental Indenture shall be held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 3.3            Headings.

 

The article and section
headings herein are for convenience only and shall not affect the construction
hereof.

 

Section 3.4            Successors
and Assigns.

 

Any covenants and
agreements in this Supplemental Indenture by the Issuer and the Trustee shall
bind their successors and assigns, whether so expressed or not.

 

Section 3.5            Governing
Law.

 

THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAW OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 3.6            Effect
of Supplemental Indenture.

 

Except as amended by this Supplemental Indenture, the
terms and provisions of the Indenture shall remain in full force and effect.

 

Section 3.7            Trustee.

 

The Issuer hereby
acknowledges and agrees to comply with its reporting obligations under the
Trust Indenture Act of 1939.  The Trustee
assumes no responsibility for the correctness of the recitals herein contained,
which shall be taken as the statements of the Issuer, and the Trustee shall not
be responsible or accountable in any way whatsoever for or with respect to the
validity or execution or sufficiency of this Supplemental Indenture, and the
Trustee makes no representation with respect thereto.

 

Section 3.8            Endorsement and Change of Form of
Securities.

 

Any Securities authenticated and delivered after the
close of business on the date that this Supplemental Indenture becomes
effective may be affixed to, stamped, imprinted or otherwise legended by the
Trustee, with a notation as follows:

 

“Effective as of January 20,
2010, certain restrictive covenants of the Indenture and certain of the Events
of Default have been eliminated, as provided in the Supplemental Indenture,
dated as of January 20, 2010.

 

 

Reference is hereby made
to said Supplemental Indenture, copies of which are on file with the Trustee,
for a description of the amendments made therein.”

 

Section 3.9            Benefits of Supplemental Indenture.

 

Nothing
contained in this Supplemental Indenture shall or shall be construed to confer
upon any person other than a Holder of the Outstanding Securities, the Issuer,
the Guarantors and the Trustee any right or interest to avail itself or
himself, as the case may be, of any benefit under any provision of the
Indenture or the Supplemental Indenture.

 

Section 3.10         Definitions.

 

Capitalized terms used
but not defined herein shall have the respective meanings ascribed to them in
the Indenture.

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be duly executed by
their respective officers hereunto duly authorized, all as of the day and year
first above written.

 

	
   

  	
  LEVEL 3 FINANCING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas C. Stortz

  
	
   

  	
   

  	
  Name:  Thomas C. Stortz

  
	
   

  	
   

  	
  Title:  Executive Vice President and Chief Legal
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEVEL 3 COMMUNICATIONS,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas C. Stortz

  
	
   

  	
   

  	
  Name:  Thomas C. Stortz

  
	
   

  	
   

  	
  Title:  Executive Vice President and Chief Legal
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LEVEL 3 COMMUNICATIONS,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Neil J. Eckstein

  
	
   

  	
   

  	
  Name:  Neil J. Eckstein

  
	
   

  	
   

  	
  Title:    Assistant Secretary

  

 

[Signature Page to Supplemental
Indenture]

 

 

	
   

  	
   

  	
  THE BANK OF NEW YORK
  MELLON, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Geovanni Barris

  
	
   

  	
   

  	
  Name:  Geovanni Barris

  
	
   

  	
   

  	
  Title:  Vice President

  

 

[Signature
Page to Supplemental Indenture]

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