Document:

exv10w6

 

Exhibit 10.6

AMENDED AND RESTATED

SERVICES AGREEMENT

by and between

METROPCS WIRELESS, INC.

and

ROYAL STREET COMMUNICATIONS, LLC

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

 

			
	***	 	Where this marking appears throughout this Exhibit 10.6,
information has been omitted pursuant to a request for confidential
treatment and such information has been filed with the SEC separately.

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Capitalized Terms
	 	 	8	 
	ARTICLE II AUTHORITY
	 	 	8	 
	2.1 Control of Royal Street
	 	 	8	 
	2.2 Specific Limitations
	 	 	8	 
	2.3 Bank Accounts
	 	 	9	 
	2.4 Checks
	 	 	9	 
	2.5 Excluded Services
	 	 	9	 
	ARTICLE III SERVICE AND SUPPORT OBLIGATIONS OF METROPCS
	 	 	10	 
	3.1 General
	 	 	10	 
	3.2 Specific Responsibilities
	 	 	10	 
	ARTICLE IV ASSISTANCE OF METROPCS IN PREPARING BUDGETS AND BUSINESS PLANS
	 	 	11	 
	4.1 General
	 	 	11	 
	4.2 Support With Annual Budgets
	 	 	11	 
	4.3 Support With Business Plans
	 	 	11	 
	ARTICLE V TECHNICAL ASSISTANCE TO BE OFFERED BY METROPCS
	 	 	11	 
	5.1 Build Out
	 	 	11	 
	5.2 Telephone Numbers
	 	 	14	 
	5.3 Reciprocal Roaming Arrangements
	 	 	15	 
	5.4 Interconnection Agreements
	 	 	15	 
	5.5 Interexchange Service
	 	 	16	 
	ARTICLE VI OTHER UNDERSTANDINGS
	 	 	16	 
	6.1 Service Interruptions
	 	 	16	 
	6.2 Customer Relations
	 	 	16	 
	6.3 Calling Plans
	 	 	16	 
	6.4 Performance Standards
	 	 	17	 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VII REPORTS AND AUDITS
	 	 	17	 
	7.1 Alarm Monitoring and Reports
	 	 	17	 
	7.2 Traffic Reports
	 	 	17	 
	7.3 Billing Information
	 	 	17	 
	ARTICLE VIII METROPCS’S PERSONNEL
	 	 	18	 
	8.1 General
	 	 	18	 
	8.2 Independent Contractors
	 	 	18	 
	ARTICLE IX APPROVALS
	 	 	19	 
	9.1 Royal Street Supervisor
	 	 	19	 
	9.2 Time Schedule for Approval
	 	 	19	 
	9.3 Failure to Approve
	 	 	19	 
	ARTICLE X COMPENSATION TO METROPCS
	 	 	20	 
	10.1 Reimbursement
	 	 	20	 
	10.2 Support Services Fees
	 	 	21	 
	10.3 Offsets
	 	 	21	 
	ARTICLE XI ROYAL STREET PROVISION OF WHOLESALE SERVICES TO METROPCS
	 	 	22	 
	11.1 Coordination of System Capacity
	 	 	22	 
	11.2 Expansion of System Capacity
	 	 	22	 
	11.3 Allocation of Capacity
	 	 	22	 
	11.4 Royal Street’s Right to Sell Wholesale PCS Service
	 	 	22	 
	11.5 Royal Street Responsibility for Royal Street Customers
	 	 	23	 
	11.6 MetroPCS Responsibility for MetroPCS
Customers
	 	 	23	 
	ARTICLE XII FEES FOR WHOLESALE SERVICE
	 	 	23	 
	12.1 Wholesale Services Fees
	 	 	23	 
	12.2 Fees Exclusive of Taxes and Other
Assessments
	 	 	24	 
	12.3 Most Favored Nation
	 	 	24	 
	ARTICLE XIII
	 	 	24	 
	13.1 Wholesale Services Payment Procedures
	 	 	24	 
	13.2 MetroPCS Support Services Payment
Procedures
	 	 	25	 
	13.3 Out-Of-Pocket Expenses
	 	 	25	 
	13.4 Disputes
	 	 	25	 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

ii

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	13.5 Suspension of Services
	 	 	25	 
	13.6 Audits
	 	 	25	 
	ARTICLE XIV APPLICABLE TAXES
	 	 	26	 
	14.1 Payment of Taxes
	 	 	26	 
	14.2 Taxes on Royal Street’s Lease of Equipment and
Facilities and MetroPCS’s Pro vision of Services
	 	 	26	 
	14.3 Taxes on MetroPCS’s Purchase of MetroPCS Wholesale Services
	 	 	27	 
	14.4 Cooperation
	 	 	27	 
	ARTICLE XV ACCOUNTING AND REPORTS
	 	 	28	 
	15.1 Books and Records
	 	 	28	 
	ARTICLE XVI TERM AND TERMINATION
	 	 	28	 
	16.1 Term
	 	 	28	 
	16.2 Termination
	 	 	29	 
	16.3 Transition
	 	 	31	 
	16.4 Remedies in Lieu of Termination
	 	 	31	 
	ARTICLE XVII INTELLECTUAL PROPERTY AND TRADEMARKS
	 	 	32	 
	ARTICLE XVIII COMPLIANCE WITH LAWS
	 	 	32	 
	18.1 Compliance with the Communications Act
	 	 	32	 
	18.2 No Violation
	 	 	32	 
	18.3 Preservation of Control
	 	 	32	 
	18.4 Regulatory Submissions
	 	 	32	 
	18.5 Modification or Amendment of this Agreement
	 	 	33	 
	ARTICLE XIX INDEMNIFICATION
	 	 	33	 
	19.1 General
	 	 	33	 
	19.2 Indemnification Procedure
	 	 	34	 
	19.3 Mitigation of Damages
	 	 	35	 
	19.4 Claim of Infringement
	 	 	35	 
	ARTICLE XX REPRESENTATIONS AND WARRANTIES
	 	 	35	 
	20.1 Organization, Standing and Authority
	 	 	35	 
	20.2 No Violation
	 	 	36	 
	20.3 Consents and Approvals
	 	 	36	 
	20.4 Regulatory Compliance of Facilities
	 	 	36	 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

iii

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	20.5 MetroPCS’s Covenant of Workmanlike
Quality
	 	 	36	 
	ARTICLE XXI LIMITATION OF LIABILITY
	 	 	37	 
	21.1 Limitations of Responsibility
	 	 	37	 
	21.2 Limitations of Damages
	 	 	37	 
	21.3 Limitations of Liability
	 	 	37	 
	21.4 Further Limitations
	 	 	38	 
	ARTICLE XXII CONFIDENTIALITY
	 	 	38	 
	22.1 General
	 	 	38	 
	22.2 Obligation to Protect Proprietary
Information
	 	 	38	 
	22.3 Judicial or Administrative Proceedings

	 	 	39	 
	22.4 Loss or Unauthorized Use
	 	 	39	 
	22.5 Nondisclosure Agreements
	 	 	39	 
	22.6 Termination
	 	 	39	 
	22.7 Irreparable Injury by Disclosure to
Competitors
	 	 	39	 
	22.8 Survival of Nondisclosure Obligations
	 	 	40	 
	ARTICLE XXIII GENERAL PROVISIONS
	 	 	40	 
	23.1 Americans With Disabilities Act
	 	 	40	 
	23.2 Amendment
	 	 	40	 
	23.3 Assignment
	 	 	40	 
	23.4 Attachments
	 	 	40	 
	23.5 Cooperation
	 	 	40	 
	23.6 Costs, Expenses and Attorneys’ Fees
	 	 	41	 
	23.7 Dispute Resolution
	 	 	41	 
	23.8 Entire Agreement
	 	 	41	 
	23.9 Execution
	 	 	41	 
	23.10 Force Majeure
	 	 	41	 
	23.11 Good Faith Performance
	 	 	41	 
	23.12 Governing Law
	 	 	42	 
	23.13 Insurance
	 	 	42	 
	23.14 Joint Work Product
	 	 	42	 
	23.15 Labor Relations
	 	 	42	 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

iv

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	23.16 No Waiver
	 	 	42	 
	23.17 Nonexclusive Dealings
	 	 	43	 
	23.18 Notices
	 	 	43	 
	23.19 Publicity
	 	 	44	 
	23.20 Regulatory Filings
	 	 	44	 
	23.21 Relationship of Parties
	 	 	44	 
	23.22 Rules of Construction
	 	 	44	 
	23.23 Severability
	 	 	45	 
	23.24 Third Party Warranties
	 	 	45	 
	23.25 Third Party Beneficiaries
	 	 	45	 
	23.26 Use of Contractors and Agents
	 	 	45	 
	23.27 Venue; Waiver of Jury Trial
	 	 	46	 
	 
	 	 	 	 
	APPENDIX A
	 	 	 	 
	 
	 	 	 	 
	Master Equipment and Facilities Lease Agreement
	 	 	 	 
	 
	 	 	 	 
	APPENDIX B
	 	 	 	 
	 
	 	 	 	 
	Wholesale Services Fees
	 	 	 	 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

v

 

SERVICES AGREEMENT

     This Amended and Restated Services Agreement (this “Agreement”) is executed on December 15,
2005 as of November 24, 2004, by and between Royal Street Communications, LLC, a Delaware limited
liability company, with its principal offices located at 611 Hill Street, Southampton, NY 11968
(“Royal Street”), and MetroPCS Wireless, Inc., a Delaware corporation, with its principal offices
located at 8144 Walnut Hill Lane, Suite 800, Dallas, Texas (“MetroPCS”). Individually, each of
Royal Street and MetroPCS is a “Party” and collectively they are “Parties.”

RECITALS

     WHEREAS, Royal Street and MetroPCS desire to enter into an agreement pursuant to which
MetroPCS agrees, upon request and at all times subject to Royal Street’s oversight, review,
supervision and control, to provide support services in connection with the design, construction,
maintenance and operation of a broadband PCS System that is technically and operationally
compatible with systems owned and operated by MetroPCS in the event that Royal Street is a
Successful Bidder in Auction No. 58;

     WHEREAS, Royal Street has concluded that it is in Royal Street’s best interest to devote a
portion of its network capacity to the sale of PCS Service to MetroPCS on a wholesale basis, and
MetroPCS wishes to enter into an agreement to facilitate this Royal Street plan;

     WHEREAS, the parties desire to amend and restate in its entirety the Services Agreement, which
originally was entered into as of November 24, 2004, by and between Royal Street and MetroPCS;

     WHEREAS, Royal Street and MetroPCS desire to enter into this Agreement on the terms and
conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties hereby
agree as follows:

ARTICLE I

DEFINITIONS

1.1 Definitions

     For purposes of this Agreement, and in addition to the terms defined elsewhere in this
Agreement and in the LLC Agreement, the following terms have the following meanings:

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

 

 

     “Act” or “Communications Act” means the Communications Act of 1934, as amended by, inter alia,
the Telecommunications Act of 1996, codified at 47 U.S.C. § 15l, et seq., as it may be amended in
the future, including the rules, regulations and policies of the FCC.

     “Affiliate” shall mean, with respect to any Person, any Person directly or indirectly
Controlling, Controlled by, or under Common Control with such other Person at any time during the
period for which the determination of affiliation is being made. For the purposes of this
Agreement, “Control” (including the correlative meanings of the terms “Controlled by” and “under
Common Control with”), as used with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of management policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.

     “Agreement” means this Services Agreement entered into between MetroPCS and Royal Street, and
any amendments thereto.

     “Ancillary Agreements” shall mean the Services Agreement, the Credit Agreement and the
related agreements appended thereto.

     “Annual Budget” shall have the meaning set forth in Section 2.9(a) of the LLC Agreement.

     “Applicable Law” means, with respect to any Person, any federal, state, local or foreign law,
statute, ordinance, rule, regulation, judgment, order, injunction, decree, arbitration award,
agency requirement, franchise, license or permit of, or any interpretation or administration of any
of the foregoing by, any Governmental Entity, whether in effect as of the date hereof or
thereafter, and in each case as amended, applicable to such Person or its Affiliates or their
respective assets.

     “Associated MetroPCS CMRS System” means a MetroPCS CMRS System with which the Royal Street
System is compatible.

     “Auction No. 58” means the Broadband PCS Auction conducted by the FCC as described in Public
Notice, DA-04-3005 (rel. Sep. 16, 2004).

     “Auction Process” means the process and procedure through which those Licenses being auctioned
by the FCC in Auction No. 58 were offered to qualified bidders commencing with preparation and
filing of FCC Form 175 for Auction No. 58 through the award of any License for which Royal Street
is the Successful Bidder.

     “Breach Notice” shall have the meaning set forth in Section 16.2(a)(i)(A) of this Agreement.

     “BTS” means a Base Transceiver Station.

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

2

 

     “Budget Officer” shall have the meaning set forth in Section 2.9(a) of the LLC Agreement.

     “Build-Out” means the construction of a Commercial Mobile Radio Service system in accordance
with Applicable Law and the rules and regulations promulgated by the FCC.

     “Business Plan” shall have meaning set forth in Section 2.10(a) of the LLC Agreement.

     “CALEA” means the Communications Assistance for Law Enforcement Act of 1994 (47 U.S.C. § 1001
et seq.).

     “CDMA” shall refer to the Code Division Multiple Access broadband technology.

     “Cell Site” means the physical location of Cell Site Equipment.

     “Cell Site Equipment” means the physical facilities, including, but not limited to, any real
property interests, transmitters, receivers, transceivers, transceiver cabinets, antenna systems,
transmission lines, BTSs, RF combining and filtering equipment, multi-carrier channel amplifiers,
power supplies, outdoor cabinets and/or shelters, environmental conditioning equipment, alarm and
monitoring equipment and other miscellaneous equipment and facilities located at a Cell Site or
BTS, as the case may be, and used to transmit and receive wireless communications in connection
with a CMRS System and to alarm and monitor the CMRS System.

     “Chief Executive Officer” or “CEO” shall refer to the chief executive officer of Royal Street
as designated by the Management Committee pursuant to the LLC Agreement.

     “Claims” shall have the meaning set forth in Section 19.1 of this Agreement.

     “Commercial Mobile Radio Service” or “CMRS” means a commercial mobile radio service as defined
in 47 C.F.R. § 20.3.

     “Commercial Service” shall mean the provision in exchange for consideration of wholesale or
retail PCS service by a licensee to at least one unaffiliated customer or subscriber.

     “Construction Group” shall have the meaning set forth in Section 5.1 (a) of this Agreement.

     “Construction Plan” shall have the meaning set forth in Section 5.1(c) of this Agreement.

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3

 

     “Construction Schedule” shall have the meaning set forth in Section 5.1 (a) of this
Agreement.

     “Credit Agreement” means the Second Amended and Restated Credit Agreement by and between
MetroPCS and Royal Street executed on December 15, 2005 as of December 22, 2004, as that agreement
may be amended from time to time.

     “Effective Date” means the date of the release of a Public Notice by the FCC announcing
that Royal Street was the high bidder on any license or licenses that were subject to auction
in Auction No. 58.

     “Equipment and Facilities” means such equipment, facilities, databases, data processing
services, software, and such other Intellectual Property, hardware, functions, real property, and
services employed in the operation of a CMRS System.

     “Equipment and Facilities Lease Agreement” means the form of Master Equipment and
Facilities Lease Agreement set forth in Appendix A hereto.

     “Failed Services” shall have the meaning set forth in Section 16.4 of this Agreement.

     “FCC” means the Federal Communications Commission created pursuant to the Act, or any
successor agency.

     “Final Order” means an order as to which the time for filing a request for administrative or
judicial relief, or for instituting administrative review sua sponte, shall have
expired without any such filing having been made or notice of review having been issued; or, in the
event of such filing or review sua sponte, as to which such filing or review shall
have been disposed of favorably to the order and the time for seeking further relief with respect
thereto shall have expired without any request for such further relief having been filed.

     “GAAP” shall mean United States generally accepted accounting principles in effect from
time to time.

     “Governmental Entity” means any government or political subdivision thereof, including without
limitation, any state, regional or municipal authority, any governmental department, ministry,
commission, board, bureau, agency, regulatory authority, instrumentality, judicial, or
administrative body, having jurisdiction over the matter or matters in question.

     “Indemnified Party” shall have the meaning set forth in Section 19.1 of this Agreement.

     “Indemnifying Party” shall have the meaning set forth in Section 19.1 of this Agreement.

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4

 

     “Independent Contractor” means a Person unaffiliated with MetroPCS who provides services
involved in operating the Royal Street Systems.

     “Intellectual Property” means ideas, patents, patent applications, copyrights, trade secrets,
software and technology, but specifically excludes trademarks, service marks, trade names, and
brands.

     “LLC Agreement” means the Amended and Restated Limited Liability Company Agreement of Royal
Street Communications, LLC, executed on December 15, 2005 as of November 24, 2004, by and among
MetroPCS Wireless, Inc., GWI PCS1, Inc. and C9 Wireless, LLC, as that agreement may be amended from
time to time.

     “License” means any license for which Royal Street is a Successful Bidder.

     “Licensed Area” means the Cellular Geographic Service Area, the Major Trading Area or the
Basic Trading Area (as those terms are defined in the FCC’s rules) in which Royal Street or
MetroPCS is licensed by the FCC to provide CMRS Service.

     “Management Committee” means the governing committee of Royal Street as set forth in the
LLC Agreement.

     “Market” means the geographic area(s) in which Royal Street is authorized by the FCC to
provide Commercial Mobile Radio Service.

     “MetroPCS Brand Wireless Services” means retail CMRS Services marketed under the MetroPCS
trademark(s), whether by MetroPCS or by Royal Street.

     “MetroPCS CMRS System” means any CMRS System owned or operated by MetroPCS or used by MetroPCS
to provide a MetroPCS Brand Wireless Service, except that it shall not include any of the Royal
Street Systems.

     “MetroPCS Wholesale Service” means the wholesale PCS Service that Royal Street provides to
MetroPCS in the Royal Street Licensed Area.

     “MetroPCS Wholesale Services Fee” shall have the meaning set forth in Section 12.1 of this
Agreement.

     “Monthly Fee” shall have the meaning set forth in Section 10.2(a) of this Agreement.

     “Network” means the telecommunications infrastructure, whether leased or owned, that
Royal Street uses to provide MetroPCS Wholesale Service.

     “Network Service” means the services provided by MetroPCS to Royal Street under this Agreement
that Royal Street uses to provide PCS Service in the Royal Street Licensed Area using the spectrum
licensed by the FCC to Royal Street.

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     “Other Network Service” means the Network Services that Royal Street uses to provide Wholesale
Services to Other Royal Street Customers in the Royal Street Licensed Area.

     “Other Royal Street Customer” means a customer other than MetroPCS to PCS Service provided by
Royal Street on a wholesale basis and a customer other than MetroPCS that has entered into a
contract to take PCS Service from Royal Street on a wholesale basis.

     “Other Wholesale Services” means the Wholesale PCS Services that Royal Street provides
to Other Royal Street Customers in the Royal Street Licensed Area.

     “Out-of-Pocket Expenses” shall have the meaning given in Section 10.1.

     “PCS” or “PCS Service” means the personal communications services and related
telecommunications services authorized by Part 24 of the FCC’s rules.

     “PCS System” means the radio frequency and associated Equipment and Facilities necessary to
permit mobile or portable PCS customer premises equipment to communicate with the PSTN or other
interconnected telecommunications network for the provision of PCS Service.

     “PSTN” means the Public Switched Telephone Network.

     “Party” means either Royal Street or MetroPCS. “Parties” means Royal Street and MetroPCS.

     “Person” means any natural person or any sole proprietorship, corporation, limited liability
corporation or company, partnership, limited partnership, limited liability partnership, joint
venture, or other business entity, but shall not include any Governmental Entity or organization.

     “Planning Group” has the meaning set forth in Section 2.10(a) of the LLC Agreement.

     “Proprietary Information” means information of a confidential and proprietary nature that a
Party has the right to possess, and that the Party maintains in confidence.

     “Remitting” shall have the meaning set forth in Section 14.1 of this Agreement.

     “Royal Street Equipment and Facilities” means the Equipment and Facilities, whether owned or
leased, employed by Royal Street in the operation of its CMRS systems as such Equipment and
Facilities may change from time to time, including, but not limited to, Cell Sites, Cell Site
Equipment, switches, transport facilities, interconnection services and transport service.

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     “Royal Street System(s)” means the CMRS system(s) licensed to, constructed and operated by
Royal Street in each of the Markets.

     “Successful Bidder” means any Person that is awarded one (1) or more license(s) by the FCC
pursuant to the Auction Process related to Auction No. 58.

     “Support Services” means the services provided by MetroPCS to Royal Street to assist in the
construction, maintenance and operation of a broadband PCS System as set forth in greater detail in
Articles I through X of this Agreement.

     “Support Services Fee” shall have the meaning set forth in Section 10.2(a) of this Agreement.

     “System Capacity” means the total number of minutes of use that the Royal Street System
in a Market is designed to provide at the bouncing busy hour, as that capacity may be
determined through Royal Street’s business and budget planning process.

     “Systems Contact” shall have the meaning set forth in Section 8.1 (a) of this Agreement.

     “Tax” means any federal, state, local or foreign income, profits, franchise, gross receipts,
environmental, customs duty, stamp, payroll, sales, employment, disability, use, property,
withholding, excise, production, value added, occupancy or other tax, duty or assessment of any
nature whatsoever, including Universal Service Charge contributions or fees, together with all
interest, penalties and additions imposed with respect to such amounts.

     “Technical Services Plan” shall have the meaning given in Section 5.1(e).

     “Trademark” means trademark, service mark, trade name, logo, brand or similar distinguishing
mark.

     “Unfettered Access” means such physical access by Royal Street as is in accordance with
the rules, regulations and published decisions of the FCC.

     “Voting Securities” means any securities or other interests entitled to vote in the ordinary
course in the election of directors or of Persons serving in similar governing capacity of any
Person, including the voting rights attached to such securities or other interests.

     “Wholesale Commitment” shall have the meaning set forth in Section 11.3 of this Agreement.

     “Wholesale Services” means the provision of PCS Service by Royal Street on a wholesale basis
to MetroPCS or to Other Royal Street Customers.

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1.2 Capitalized Terms

     Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to
such terms in the LLC Agreement.

ARTICLE II

AUTHORITY

2.1 Control of Royal Street

     MetroPCS shall have responsibility for the day-to-day operations of Royal Street subject to
the direction and control of the Management Committee. In accordance with the foregoing, it is the
Parties’ express intention, understanding and agreement that the Management Committee and officers
of Royal Street, acting pursuant to the authority granted them under the LLC Agreement or by the
Management Committee, shall retain authority and ultimate control over the day-to-day operations of
Royal Street; the determination and implementation of policy and business strategy; the preparation
and filing of all materials with the FCC and other Governmental Entities; the employment,
supervision and dismissal of all personnel providing services under this Agreement; the payment of
all financial obligations and operating expenses (except for Out-of-Pocket Expenses); and the
negotiation of all contracts to be entered into by Royal Street. The Parties agree that Royal
Street shall retain Unfettered Access to all Equipment and Facilities associated with the Royal
Street Systems and shall receive all monies and profits and bear the risk of loss from the
operation of the Royal Street Systems.

2.2 Specific Limitations

	 	(a)	 	In addition to those matters elsewhere listed in this Agreement for
which Royal Street’s prior approval is required, MetroPCS shall not have authority to
undertake any of the following actions without Royal Street’s prior written authority:

	 	(i)	 	modify or take actions inconsistent with the
Annual Budget, Business Plan, Construction Schedule, Construction Plan
or Technical Services Plan as approved by the Management Committee;
	 
	 	(ii)	 	establish or alter the terms and conditions upon which
Royal Street offers CMRS;
	 
	 	(iii)	 	initiate or settle any legal action or litigation in
the name of Royal Street or the Royal Street Systems
	 
	 	(iv)	 	prepare any filings with the FCC or any other
Governmental Entity with respect to any Royal Street System.

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	 	(b)	 	In no circumstances shall MetroPCS have authority to undertake any of the
following actions:

	 	(i)	 	sell, trade or surrender any of the Licenses, or
attempt to materially modify any of the Licenses;
	 
	 	(ii)	 	sign or make any filings with the FCC or any other
Governmental Entity with respect to any Royal Street System; or
	 
	 	(iii)	 	cause Royal Street to incur any debt for borrowed
money or to grant a security interest in or to hypothecate any assets of
any Royal Street System.

2.3 Bank Accounts

     All expenses associated with the operation of the Royal Street Systems, except for
Out-of-Pocket Expenses, shall be paid from Royal Street’s accounts. There shall be no commingling
of Royal Street’s and MetroPCS’s funds.

2.4 Checks

     Royal Street may by
 written designation authorize a MetroPCS representative to sign checks or
send wire payments for non-recurring expenses in amounts less than *** and to sign other checks or send other wire payments in amounts
less than *** for recurring expenses, provided all such expenditures are in accordance
with the approved Annual Budget. MetroPCS shall promptly send to Royal Street copies of all such
checks written or wire payments sent for the Royal Street Systems, along with accompanying
invoices.

2.5 Excluded Services

     The Parties acknowledge and agree that Royal Street will be wholesaling certain network
telecommunications services to MetroPCS and that MetroPCS will utilize the purchased services to
provide retail telecommunications services to end users. Royal Street also is reserving certain
system capacity to enable it to wholesale network telecommunications services to Persons other than
MetroPCS and, if the Management Committee so determines, to sell retail services to the public.
This Agreement is not intended and shall not be construed to prevent Royal Street from offering PCS
Service on a retail basis. Royal Street shall ensure that the reserved percentage of the capacity
is available for Other Royal Street Customers. The Parties agree to negotiate in good faith on the
terms and conditions, including price, under which MetroPCS shall, upon request of Royal Street,
provide support services on commercially reasonable terms with respect to Royal Street provision of
capacity to such Other Royal Street Customers, provided that the price agreed to shall not exceed
***.

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ARTICLE III

SERVICE AND SUPPORT OBLIGATIONS OF METROPCS

3.1 General

     MetroPCS shall upon the request of Royal Street, in accordance with directions and guidance
from Royal Street and subject to the limitations on MetroPCS’s authority described in ARTICLE II,
assist Royal Street in the construction and operation of the Royal Street Systems. To this end,
MetroPCS shall, upon request, assist Royal Street by providing or arranging for: (i)
administrative, accounting, billing, credit, collection, insurance, purchasing, clerical and such
other general services as may be necessary to administer the Royal Street Systems; (ii)
operational, engineering, maintenance, repair and such other technical services as may be necessary
to operate the Royal Street Systems; and (iii) if requested by Royal Street in accordance with
Section 2.2 (a)(iv), assistance in the preparation of filings with regulatory authorities. Royal
Street shall compensate MetroPCS for its services in accordance with the terms of ARTICLE X of the
Agreement.

3.2 Specific Responsibilities

     MetroPCS shall, upon request of Royal Street, in accordance with directions and guidance from
Royal Street and the Royal Street-approved Business Plan and Annual Budgets and subject to the
limitations on MetroPCS’s authority described in ARTICLE II, assist Royal Street in supervising,
directly or through agents or subcontractors, day-to-day operations of the Royal Street Systems, and
such additional activities integral to the operation of the Royal Street Systems such as:

	 	(a)	 	negotiating, as agent for Royal Street, such agreements as may be necessary
for the provision of services, supplies, office or other types of space, utilities,
insurance, concessions and the like;
	 
	 	(b)	 	constructing the Royal Street System in accordance with the Technical
Services Plan to be developed by Royal Street;
	 
	 	(c)	 	maintaining the Royal Street Systems and monitoring the performance of the
Royal Street Systems in accordance with MetroPCS’s established procedures and
practices;
	 
	 	(d)	 	implementing roaming agreements; and
	 
	 	(e)	 	at Royal Street’s request assisting Royal Street in accordance with Section
2.2(a)(iv) in the preparation of filings, applications, reports and other matters with
Governmental Entities.

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ARTICLE IV

ASSISTANCE OF METROPCS IN PREPARING

BUDGETS AND BUSINESS PLANS

4.1 General

	 	(a)	 	In developing the Royal Street Systems and the related Annual Budgets, Royal
Street intends to establish Royal Street Systems capable of providing service of high
quality that are fully competitive with any other provider of like Commercial Mobile
Radio Service in each Market.
	 
	 	(b)	 	In connection with the development of the Business Plan and Annual Budgets,
Royal Street shall inform MetroPCS of the nature and type of services that the Royal
Street Systems shall offer, the terms upon which such services shall be offered, and
the prices to be charged with respect to such services.
	 
	 	(c)	 	The services provided by MetroPCS to Royal Street under this Agreement are
based upon Royal Street’s intention to provide wholesale carrier-to- carrier services
rather than retail carrier-to-end user services. If the Management Committee decides
to provide retail services to the public, the Parties shall, upon request of Royal
Street, negotiate in good faith to modify the services provided by MetroPCS
accordingly.

4.2 Support With Annual Budgets

     Upon request of Royal Street, MetroPCS shall provide the Budget Officer with information
useful in his preparation of the initial Annual Budget and subsequent Annual Budgets including, but
not limited to, reports, data and other information.

4.3 Support With Business Plans

     Upon request of Royal Street, MetroPCS shall provide the Planning Group with information
useful in the preparation of the Royal Street Business Plan including, but not limited to, reports,
data, and other information.

ARTICLE V

TECHNICAL ASSISTANCE TO BE OFFERED BY METROPCS

5.1 Build-Out

	 	(a)	 	Within thirty (30) days of the release of the Public Notice by the
FCC announcing that Royal Street is the Successful Bidder for any license
issued pursuant to Auction No. 58, Royal Street and MetroPCS shall

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	 	 	 	endeavor to meet to discuss plans for the construction of the system or systems that the
FCC has announced will be awarded to Royal Street. The Management Committee shall select a
group of officers and management level persons, (the “Construction Group”), to develop in
accordance with the directions provided by the Management Committee, a schedule for the
construction and installation of the Royal Street Systems in each of the Markets in which
Royal Street is the Successful Bidder, provided that the majority of such persons are
employees of Royal Street or representatives of C9 Wireless and not employees or
representatives of the MetroPCS Parties. Upon the request of Royal Street, MetroPCS shall
provide information to the Construction Group that may be helpful in its preparation of
such schedule including, but not limited to, reports and data. The schedule shall include
(i) the order in which each of the Markets in which Royal Street is the Successful Bidder
will be built and (ii) the date by which the Markets will be ready for testing and ready
for service (“Construction Schedule”). The Construction Schedule shall include appropriate
benchmarks for completion of the construction in each of the Markets in which Royal Street
is the Successful Bidder, but in all events, each of those Markets shall be Built-Out in a
timely fashion as may be required by the FCC rules such that no License is subject to being
reclaimed by the FCC and no penalties may be imposed on Royal Street.
	 
	 	(b)	 	As promptly as practicable after receipt of the Construction Schedule, the Management
Committee shall review the Construction Schedule and approve, modify or return the Schedule to
the Construction Group for modification in accordance with the Management Committee’s
direction. The Construction Group shall revise the Construction Schedule in accordance with
the Management Committee’s directions.
	 
	 	(c)	 	Upon approval of the Construction Schedule, the Construction Group shall develop a
Construction Plan for each Market, which shall set forth the plans for construction of the
specific Market, including (i) the location of the proposed Cell Sites, (ii) the vendors for
switches and base stations, and the facilities and vendors to be used to interconnect the Cell
Sites, (iii) the budget for the construction and implementation, (iv) the manner in which the
system will be interconnected to the landline telephone network, and (v) such other
specifications as the Construction Group may include (the “Construction Plan”). Royal Street
may, in its sole discretion, request that MetroPCS provide information to the Construction
Group that may be useful in its preparation of the Construction Plan. The Construction Plan
for each Market shall be submitted to the Management Committee for its approval in sufficient
time for construction of the system in that Market to be completed in accordance with the
Construction Schedule.

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	 	(d)	 	The Management Committee shall review the Construction Plan as promptly as is
practicable after receipt, and approve, modify or return the Plan to the Construction
Group for modification in accordance with the Management Committee’s direction. The
Construction Group shall resubmit promptly thereafter any returned Proposal to the
Management Committee for approval. As promptly as practicable following receipt of the
revised Construction Plan, the Management Committee shall approve or modify the Plan and
may direct MetroPCS to implement the Construction Plan as specified by the Management
Committee.
	 
	 	(e)	 	The Construction Plan will implement a technical services plan (the “Technical Services
Plan”) to be developed by the Construction Group and the Management Committee. Based upon the
independent technology platform assessment conducted by Royal Street and Royal Street’s
business determination that it is in its interest to maintain nationwide compatibility and
interoperability with other systems owned or operated by MetroPCS, the Plan will be designed
to maximize the benefits that Royal Street and MetroPCS, collectively, may obtain from the
other CMRS systems owned, controlled or operated by MetroPCS. To that end, the Parties agree,
subject to the understandings reflected in this Section 5.1, to cooperate to assure technical
and operational compatibility between the Royal Street Systems and the CMRS systems owned,
controlled or operated by MetroPCS with respect to the following matters, among others:

	 	(i)	 	The technology-based platforms of the Royal Street Systems will be
compatible and interoperable with those of MetroPCS, as the Parties may specify in
each Market, in order to permit nationwide, and where appropriate, worldwide roaming
among the systems;
	 
	 	(ii)	 	The Royal Street Systems will be capable of offering subscribers and
roamers with the services, features, and functions offered by the CMRS systems owned,
controlled or operated by MetroPCS that use the same technology, i.e. CDMA;
	 
	 	(iii)	 	To the extent technically feasible, the digital technology standards
used by the Royal Street Systems will permit seamless interoperation and roaming with
the digital systems owned, controlled or operated by MetroPCS; and
	 
	 	(iv)	 	The Royal Street Systems will satisfy all applicable construction
and other service requirements imposed by the FCC.

	 	(f)	 	The Technical Services Plan also will address matters related to
interconnect fees and standards for coverage, quality of coverage, dropped calls, customer
service and reliability.

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	 	(g)	 	Upon request of Royal Street, MetroPCS will assist in the construction
and installation of the Royal Street Systems to be deployed in the Markets in which
Royal Street is the Successful Bidder. MetroPCS’s performance shall be subject to
review, oversight and direction of the Management Committee.
	 
	 	(h)	 	In order to permit Royal Street to have the benefit of MetroPCS’
discounts from vendors of telecommunications infrastructure, and in order to enhance
the purchasing power of MetroPCS with vendors by increasing the volume of the MetroPCS
purchases from the vendors, the Equipment and Facilities required by Royal Street to
operate the Royal Street Systems in accordance with the Business Plan shall, at Royal
Street’s request, be acquired by MetroPCS and leased to Royal Street pursuant to a
Master Equipment and Facilities Lease Agreement substantially in the form of Appendix
A hereto. The terms of the Master Equipment and Facilities Lease Agreement shall be
commercially reasonable taking into consideration the useful life of the leased
equipment, its salvage value at the end of the lease term, and the parties’
expectation that MetroPCS ***.
Notwithstanding the fact that Royal Street is the lessee rather than the beneficial
owner of the Equipment and Facilities, Royal Street shall have Unfettered Access to
the Equipment and Facilities at all times.

5.2 Telephone Numbers

	 	(a)	 	MetroPCS shall, upon Royal Street’s request, assist Royal Street in acquiring
telephone numbers for any PCS Service that Royal Street sells to MetroPCS and
programming such telephone numbers into the appropriate switch. Except as may
otherwise be agreed to by the Parties pursuant to Section 2.5 of this Agreement,
MetroPCS shall have no responsibility for assisting Royal Street in acquiring
telephone numbers for any PCS Service that Royal Street sells to any Other Royal
Street Customer.
	 
	 	(b)	 	MetroPCS shall, upon Royal Street’s request, program the switches and take
other reasonably necessary actions to permit Other Royal Street Customers to utilize
numbers with NXX Codes assigned to Royal Street or the Other Royal Street Customers in
the Market.
	 
	 	(c)	 	The PCS Service that Royal Street provides in the Markets shall permit each
telephone number to be associated with only one handset, unless Royal Street and
MetroPCS otherwise agree.
	 
	 	(d)	 	MetroPCS shall assist Royal Street to activate a telephone number of any
retail or wholesale customer of any Other Royal Street Customers upon a written
request made by Royal Street. MetroPCS shall fulfill orders to

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	 	 	 	activate numbers for any Other Royal Street Customer in accordance with the same
performance metrics as MetroPCS employs for fulfilling its own orders.
	 
	 	(e)	 	If Royal Street desires to modify or terminate PCS Service to a
telephone number assigned to one of its Other Royal Street Customers, Royal Street
shall provide MetroPCS written or electronic notice, in accordance with such
procedures as the Parties may adopt. If Royal Street reasonably believes that the
telephone number is being used fraudulently or that the handset has been lost or
stolen and electronic notification systems have not been deployed by the Parties to
effect terminations, Royal Street may provide MetroPCS with oral notice of
termination, which shall be confirmed in writing within the earlier of four (4) hours
during normal business hours or twelve (12) hours during other times. MetroPCS shall
modify or terminate service to the notified number as quickly, on average, as it would
do so for itself or any third party, on average, but in any event within the earlier
of four (4) hours during normal business hours or twelve (12) hours during other
times, after receipt of the notice. Notwithstanding the foregoing, Royal Street shall
remain responsible, financially and otherwise, for its Other Royal Street Customers
until the modification or termination of service is complete.

5.3 Reciprocal Roaming Arrangements

	 	(a)	 	Upon request, MetroPCS will make commercially reasonable efforts to help
Royal Street in reaching roaming arrangements that are commercially reasonable and no
less favorable than those offered to or received from similarly situated carriers.
	 
	 	(b)	 	Upon request, MetroPCS will make commercially reasonable efforts to help
Royal Street become a party to roaming arrangements between MetroPCS and other
wireless telecommunications carriers as long as MetroPCS retains an equity interest in
Royal Street.

5.4 Interconnection Agreements

	 	(a)	 	At Royal Street’s request and subject to its approval, MetroPCS will
negotiate on behalf of Royal Street interconnection agreements with the local
exchange carriers in each of the Markets in which Royal Street acquires a license
that will assure interconnection to the landline telecommunications network on
terms and conditions that are at least comparable to those obtained by other
similarly situated CMRS operators in the Market. At Royal Street’s request,
MetroPCS shall administer the interconnection agreement on behalf of Royal Street
and negotiate such modifications or other arrangements for interconnection as the
Management Committee may direct.

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	 	(b)	 	At Royal Street’s request, where a Royal Street System is in a Market in
which MetroPCS owns or operates another CMRS system, MetroPCS shall, to the extent
possible and necessary, arrange for the modification of MetroPCS’s interconnection
agreements with the local exchange carrier to include the Royal Street System
managed by MetroPCS in those interconnection agreements.

5.5 Interexchange Service

	 	(a)	 	MetroPCS will make commercially reasonable efforts to negotiate with
other providers at Royal Street’s request, and obtain on behalf of Royal Street
interexchange telecommunications services for Royal Street and for resale to its
customers which will permit Royal Street to offer interexchange telecommunications
services that are competitive with the interexchange telecommunications of other CMRS
providers in the Market. Any agreements to obtain interexchange telecommunications
services shall be approved by Royal Street prior to their execution.

ARTICLE VI

OTHER UNDERSTANDINGS

6.1 Service Interruptions

     The Parties agree and acknowledge that, given the complex nature of the Royal Street Systems,
service interruptions may occur. The Parties shall use their best efforts to avoid any unnecessary
service interruptions and to work with each other to plan and coordinate necessary service
interruptions so as to minimize disruptions to their customers.

6.2 Customer Relations

     Each Party shall be responsible for its dealings with its customers and shall act in a manner
consistent with the highest standards of honesty, integrity and fair dealings and shall not do
anything that would discredit, dishonor, reflect adversely upon or in any manner injure the
reputation of the other Party or its Affiliates. Each Party shall refrain, and shall cause its
agents to refrain, from any business practices or promotional activity which may be injurious or
detrimental to the other Party or its Affiliates, provided, however, that nothing in this Section
shall be construed to limit each Party’s ability to compete freely with the other to the extent
that MetroPCS and Royal Street are providing competing services.

6.3 Calling Plans

     At Royal Street’s request, MetroPCS shall research and inform Royal Street of any national or
other wide area service plans that Royal Street may choose to offer in its

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markets. Royal Street, at its sole discretion, shall decide whether to cause the Royal Street
Systems or a portion of them to participate in any such plans.

6.4 Performance Standards

     At Royal Street’s request, MetroPCS shall assist Royal Street in developing performance
standards that satisfy the service objectives set by Royal Street for the Royal Street Systems,
with the understanding that Royal Street intends the quality of the products and services offered
by Royal Street to be at least as high as the quality of similar products and services provided by
a majority of the CMRS systems owned, controlled or operated by MetroPCS modified or adjusted as
appropriate for the specific Markets in which Royal Street is the Successful Bidder. Royal Street
may review and adjust these performance standards periodically so that the Royal Street Systems
remain competitive with other CMRS operators in the Market and nationwide.

ARTICLE VII

REPORTS AND AUDITS

7.1 Alarm Monitoring and Reports

     Upon the request of Royal Street, MetroPCS shall monitor the performance of the Royal Street
Systems and shall provide Royal Street periodically, in accordance with such procedures normally
employed by MetroPCS with respect to its CMRS Systems, unless modified by the Parties, a list of
alarms and outages. Upon the request of Royal Street, MetroPCS shall respond to any alarm affecting
Royal Street’s PCS Service in accordance with such procedures as the Parties may agree upon from
time to time consistent with the performance metrics applicable to the Royal Street Systems.

7.2 Traffic Reports

     Upon the request of Royal Street, MetroPCS shall provide Royal Street with monthly reports for
the Royal Street Systems with such operational data and details as Royal Street may request. Those
reports may include such operational data and details as are customarily maintained in the ordinary
course of a PCS business and will permit Royal Street reasonably to evaluate the quality of the
Royal Street Systems and the accuracy of the charges assessed.

7.3 Billing Information

     Upon the request of Royal Street, MetroPCS shall provide Royal Street, at least once per
calendar month on such date as the Parties may agree, detailed call data information in the same
standard electronic format as MetroPCS employs for the MetroPCS CMRS System and as may be
reasonably necessary for Royal Street to issue bills for services to its Other Royal Street
Customers in the Market. Royal Street shall bear the costs of billing its subscribers, including
any costs of converting call data

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information provided by MetroPCS into bills. Upon request of Royal Street, MetroPCS will negotiate
in good faith with Royal Street to provide billing support services on commercially reasonable
terms for the Other Royal Street Customers, provided that the price
agreed to shall not exceed ***.

ARTICLE VIII

METROPCS’S PERSONNEL

8.1 General

	 	(a)	 	Subject to Section 8.1(c), MetroPCS shall designate one or more employees who
are experienced in the construction and operation of CMRS systems to serve as the
point or points of contact responsible for the performance of MetroPCS’s functions
under this Agreement with respect to all the Royal Street Systems or a specific Royal
Street System for each or several Markets (the “Systems Contact”), and may change
these individuals at its discretion and upon written notice to Royal Street.
	 
	 	(b)	 	MetroPCS shall provide Royal Street, upon the Effective Date and on such
periodic basis thereafter as Royal Street may reasonably request, a list of the
individuals employed by MetroPCS in management and supervisory positions in connection
with the services provided in connection with the Royal Street Systems, and shall
provide Royal Street any such information as Royal Street may reasonably require
concerning their qualifications to perform the functions assigned.
	 
	 	(c)	 	Subject to Applicable Law, Royal Street shall have the right to require, upon
reasonable notice, (i) the replacement of any Systems Contact for any Royal Street
System, or (ii) the reassignment of any MetroPCS employee assigned to work on any
Royal Street System such that the employee no longer works on any Royal Street System.
	 
	 	(d)	 	MetroPCS shall provide Royal Street with its personnel policies, which
policies shall include reasonable provisions to assure the honesty, integrity and
character of all of the personnel that MetroPCS assigns to perform its
responsibilities under this Agreement, and shall make such reasonable changes and
modifications in those policies with respect to the Royal Street Systems as Royal
Street may request.

8.2 Independent Contractors

     Upon prior written notice to Royal Street given in sufficient time and detail to allow Royal
Street to object, MetroPCS may engage qualified Independent Contractors to perform specific
services, necessary to construct, maintain, and operate the Royal Street

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Systems. Notwithstanding the foregoing and subject to Applicable Law, Royal Street shall have the
unfettered right, to require that MetroPCS discharge any Independent Contractor performing services
under this Agreement, or to bar MetroPCS from hiring any specific Independent Contractor to perform
services under this Agreement. Royal Street shall indemnify MetroPCS for any wrongful discharge of
an Independent Contractor engaged without objection from Royal Street following proper notice from
MetroPCS in accordance with this Section 8.2, and Royal Street shall, in these circumstances, bear
any costs or expenses lawfully charged by such Independent Contractor associated with such
termination.

ARTICLE IX

APPROVALS

9.1 Royal Street Supervisor

     In order to facilitate Royal Street’s oversight, supervision and ultimate control of the Royal
Street Systems, Royal Street specifies its Chief Executive Officer as the individual to whom
MetroPCS shall report and request approvals required under this Agreement, unless the CEO delegates
such responsibility to another officer or employee of Royal Street. Royal Street may change these
individuals at any time by prior written notice to MetroPCS. Where the CEO delegates the
responsibilities under this Section 9.1 to another officer or employee, MetroPCS may rely on any
approvals or consents given by such delegatee.

9.2 Time Schedule for Approval

	 	(a)	 	Royal Street shall notify MetroPCS in writing as soon as practicable, after
Royal Street receives a request for an approval required to be obtained under this
Agreement, whether Royal Street approves or disapproves the request. Any disapproval
shall include an explanation why Royal Street has rejected the recommendation such
that MetroPCS may address Royal Street’s concerns.
	 
	 	(b)	 	Royal Street acknowledges that time may be of the essence in connection with
certain filings, including FCC applications, reports and other filings, and hereby
covenants and agrees that it will exercise appropriate diligence to prepare, execute
and file FCC applications and reports in a timely fashion and that the CEO or his
delegatee will be available to consult with and assist MetroPCS in connection with any
such applications, reports, and other filings which Royal Street has requested in
writing that MetroPCS assist Royal Street to prepare.

9.3 Failure to Approve

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	 	(a)	 	In the event that a request of MetroPCS for approval is time sensitive, has not
been acted upon by Royal Street on a timely basis, and the failure to act may have
an adverse effect on the business, MetroPCS may so notify Royal Street and request
that Royal Street act upon the request for approval within a specified time frame
that is reasonably related to the deadline. Any such MetroPCS request under this
section that Royal Street act within a specified time frame shall be in writing.
	 
	 	(b)	 	MetroPCS shall be indemnified and held harmless with respect to any damages
or injury resulting from the failure of Royal Street to act in a timely manner upon a
request of MetroPCS for approval, provided that Royal Street has actual notice of the
time sensitive nature of the request.

ARTICLE X

COMPENSATION TO METROPCS

10.1 Reimbursement

     Except as provided in Section 10.1(c), Royal Street shall reimburse MetroPCS at cost for all
expenses reasonably incurred by MetroPCS in the performance of its responsibilities under this
Agreement which are agreed by the Parties to be Out-of-Pocket Expenses (“Out-of-Pocket Expenses”).

	 	(a)	 	Out-of-Pocket Expenses include, but are not limited to, costs incurred by
MetroPCS in the execution and fulfillment of its obligations under this Agreement,
such as: (i) administrative, accounting, billing, credit, collection, insurance,
purchasing, clerical and such other general services as may be necessary to administer
the Royal Street Systems; (ii) operational, engineering, maintenance, repair and such
other technical services as may be necessary to operate the Royal Street Systems;
(iii) occupancy; (iv) the salary and associated expenses of the Systems Contact of any
Royal Street System to the extent their services relate to the construction and
operation of the Royal Street System as provided in Section 8.1(a); (v) Independent
Contractors; and (vi) MetroPCS’s non- managerial and non-supervisory employees. A more
specific categorization of Out-of-Pocket Expenses, including which categories of
employees are non-managerial and non-supervisory, shall be set forth in the Annual
Budget.
	 
	 	(b)	 	With respect to costs of services for non-managerial and non-supervisory
employees of MetroPCS who devote a portion, but not all, of their time to performing
MetroPCS’s obligations under this Agreement, such costs shall
include ***. Such costs shall be calculated at hourly rates determined on
the basis of the individual

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	 	 	 	employees’ annual salaries, taxes, insurance and benefits, plus an additional
*** of those amounts to cover administrative overhead and other
compensation associated with such employees.
	 
	 	(c)	 	The Parties acknowledge and agree that MetroPCS is not obligated to
provide at cost under this Agreement the additional services in support of Other
Royal Street Customers that are contemplated by Section 2.5. Rather, MetroPCS shall
be obligated to provide such services, upon request, ***.

10.2 Support Services Fees

	 	(a)	 	Subject to such adjustments negotiated by the Parties in good faith as may be
appropriate in light of the number of Licenses (if any) that Royal Street may acquire
and the amount of spectrum represented by such Licenses and in addition to
Out-of-Pocket Expenses, Royal Street shall pay MetroPCS an additional services fee
(the “Support Services Fee”) for the performance of its responsibilities under this
Agreement in an amount equal to *** (collectively, the “Monthly Fee”)
beginning with the License grant date and continuing up to the commencement of Support
Services, at which time the Support Services Fee shall become the greater of the
Monthly Fee or ***.
	 
	 	(b)	 	The Support Services Fee shall be payable in equal monthly installments due
on the last business day of each month beginning on the License grant date.
	 
	 	(c)	 	The Parties will review the Support Services Fee specified in Section 10.2(a)
after the close of Auction No. 58 with a view to revising the fee, as may be
appropriate, in light of the results of the auction. Among the factors to be
considered with respect to any adjustment in the Support Services Fee are the number
of Markets in which Royal Street is the Successful Bidder, the number of POPs and the
amount of spectrum involved, the number of Markets acquired by Royal Street in which
MetroPCS owns or operates CMRS systems and the number of Markets in which MetroPCS
does not own or operate such systems.

10.3 Offsets

     Each Party agrees that notwithstanding anything contained herein to the contrary, the other
Party may offset any amounts due from such other Party, or its Affiliates, with any amounts due to
such other Party, or its Affiliates.

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ARTICLE XI

ROYAL STREET PROVISION OF

WHOLESALE SERVICES TO METROPCS

11.1 Coordination of System Capacity

     The Parties shall consult, in connection with Royal Street’s budgeting and business planning
process or such other processes as the Parties may mutually adopt, so that the Royal Street Systems
have sufficient capacity to meet, to the extent commercially reasonable, both MetroPCS’s
projections of its demand for Wholesale Service from Royal Street and Royal Street’s projections of
its demand for services from Other Royal Street Customers. The Parties shall, in developing these
plans for each Market, consult to avoid building excessive capacity in any Market.

11.2 Expansion of System Capacity

     The Parties shall consult, in connection with Royal Street’s budgeting and business planning
process or such other processes as the Parties may adopt, with respect to the expansion of the
Royal Street Systems capacity in any Market in order to meet the reasonable projected demands of
Royal Street. Where Royal Street reasonably believes that, when taking into account the Wholesale
Commitment, its needs for Other Network Service in any Market will exceed the capacity of the
existing or planned network, whether because of volume constraints, location, or otherwise,
MetroPCS shall, upon request of Royal Street, take commercially reasonable steps to provide such
additional Equipment and Facilities as is necessary to meet such projected demand and to provide
such Equipment and Facilities to Royal Street ***. For the purpose of
this Section 11.2, the provision of such additional Equipment
and Facilities on terms ***.

11.3 Allocation of Capacity

     The Parties shall cooperate in the development of a network plan for each Market that will
enable MetroPCS to utilize *** of the System Capacity of each Royal Street
System in each Market in which Royal Street has commenced providing (or has commenced planning in
connection with the budgeting and business planning process to provide) PCS Service, as those Royal
Street Systems may be expanded from time to time (“Wholesale Commitment”). Royal Street will retain
the right to utilize *** of the System Capacity in each Market, as those Royal
Street Systems may be expanded from time to time, to provide Wholesale Services to carriers other
than MetroPCS, or if authorized by the Management Committee, retail services to Other Royal Street
Customers.

11.4 Royal Street’s Right to Sell Wholesale PCS Service

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     Subject to Royal Street’s meeting the Wholesale Commitment, nothing in this Agreement shall
preclude Royal Street from selling Wholesale Service in any Market to Other Royal Street Customers;
provided, however, that prior to Royal Street offering Wholesale Services in any Market to Other
Royal Street Customers, Royal Street and MetroPCS shall enter into a technical capacity sharing
agreement specifying how the Parties will utilize their respective capacity of the Royal Street
Systems without interfering with the other Party’s right to the capacity set forth in Section 11.3.

11.5 Royal Street Responsibility for Royal Street Customers

     Royal Street shall be solely responsible for relations, financial and otherwise, with its
Other Royal Street Customers, including sole responsibility for any and all payments due from such
Other Royal Street Customers. Upon activation of any telephone number for such Other Royal Street
Customers and until the earlier of four (4) hours after receipt by MetroPCS during normal business
hours, or twelve (12) hours after receipt during other times, of notice from Royal Street to
discontinue the provision of PCS Service to that telephone number, Royal Street shall be solely
responsible for any and all fees or charges associated with that telephone number, including, but
not limited to, any fixed or recurring charges for roamer charges, toll charges, directory
assistance and operator charges and any charges occasioned by a fraudulent use. Nothing in this
Agreement shall create any contractual or other obligation on the part of MetroPCS to any Other
Royal Street Customer or for MetroPCS to provide any services to Royal Street to support such Other
Royal Street Customers.

11.6 MetroPCS Responsibility for MetroPCS Customers

     MetroPCS shall be solely responsible for relations, financial and otherwise, with its
customers, including sole responsibility for any and all payments due from such customers. Upon
activation of a telephone number by MetroPCS and until the discontinuance of the provision of PCS
Service to that telephone number, MetroPCS shall be solely responsible for any and all fees or
charges associated with that telephone number, including, but not limited to, any fixed or
recurring charges for Wholesale Services, roamer charges, toll charges, directory assistance and
operator charges and any charges occasioned by a fraudulent use. Nothing in this Agreement shall
create any contractual or other obligation on the part of Royal Street to any customer of MetroPCS.

ARTICLE XII

FEES FOR WHOLESALE SERVICE

12.1 Wholesale Services Fees

     Subject to such adjustments negotiated by the Parties in good faith as may be appropriate in
light of the number of Licenses (if any) that Royal Street may acquire and the amount of spectrum
represented by such Licenses, MetroPCS shall pay Royal Street on a monthly basis the fees set forth
in Appendix B for the MetroPCS Wholesale

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Services (the “MetroPCS Wholesale Services Fees”). Unless otherwise agreed by the Parties, the
MetroPCS Wholesale Services Fees shall commence in each Market as of
***. The
fees set forth in Appendix B shall, unless otherwise adjusted by mutual consent of the Parties,
remain in effect for an initial period of ***. After that initial period, the fees will
be reviewed during Royal Street’s annual budgeting process and may be adjusted to reflect changes
in wholesale wireless capacity pricing in comparable markets, provided, however, that the MetroPCS
Wholesale Services Fees shall not be adjusted more than once during
each successive *** period and may not be increased by more than ***.

12.2 Fees Exclusive of Taxes and Other Assessments

     The MetroPCS Wholesale Services Fees are exclusive of any applicable Taxes (other than general
income or property taxes), whether charged to or against MetroPCS or Royal Street, associated with
MetroPCS Wholesale Services. All such Taxes shall be in addition to all other charges provided for
under this Agreement.

12.3 Most Favored Nation.

     Royal Street agrees that it shall offer to
provide Wholesale Services to MetroPCS on a most
favored nation basis. ***

ARTICLE XIII

PAYMENT PROCEDURES

13.1 Wholesale Services Payment Procedures

     Royal Street shall provide MetroPCS with a monthly invoice for all fees due under this
Agreement not later than the thirtieth (30th) day after the monthly billing cycle in
which the usage is recorded. Such invoice shall be due and payable within thirty (30) days after
receipt of the invoice. Any undisputed amount not paid by the due date will bear interest at the
lesser of one and one-half percent (1.5%) per month or the maximum rate permitted by Applicable
Law.

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13.2 MetroPCS Support Services Payment Procedures

     MetroPCS shall provide Royal Street with a monthly invoice for all service fees due to
MetroPCS under this Agreement not later than the thirtieth (30th) day after the close of
each month. Such invoice shall be due and payable within thirty (30) days after receipt of the
invoice. Any undisputed amount not paid by the due date will bear interest at the lesser of one and
one-half percent (1.5%) per month or the maximum rate permitted by Applicable Law.

13.3 Out-Of-Pocket Expenses

     Following the Effective Date, MetroPCS shall, within thirty (30) days of the last day of each
month in which the Agreement is in effect, provide to Royal Street a statement of Out-of-Pocket
Expenses incurred during that month, together with such documentation for the Out-of-Pocket
Expenses as Royal Street may reasonably request. In addition, within thirty (30) days of the last
day of each month in which the Agreement is in effect, MetroPCS shall provide to Royal Street a
statement of total receipts for the Royal Street Systems during that month. Such invoice shall be
due and payable within thirty (30) days after receipt of the invoice.

13.4 Disputes

     If either Party disputes the amount of an invoice, it shall notify the other Party in writing
before payment is due, and if the matter cannot be resolved informally between the Parties, either
Party may invoke the dispute resolution provisions referenced in ARTICLE 17 of the LLC Agreement.

13.5 Suspension of Services

     If either Party does not receive payment in full of undisputed amounts from the other Party
within sixty (60) days following the due date for any payment, the unpaid Party shall have the
right, in addition to whatever other rights it may have under this Agreement or at law and in
equity, to suspend its provision of all or any portion of the services for which it has not been
paid on ten (10) days written notice, except that neither Party shall have the right to suspend
service under this Section 13.5 if the failure to pay is attributable to any act or omission of the
unpaid Party.

13.6 Audits

     Where either Party believes that the other Party has improperly charged it under this
Agreement, the charged Party shall have the right, if the Parties cannot resolve the matter
amicably without resort to the dispute resolution provisions in this Agreement, to request (but not
more than once per calendar year) an independent audit of the applicable books and records to
verify the accuracy of the charges assessed. The Parties shall appoint an independent auditor
mutually agreeable to both Parties and shall specify the scope and define the terms of the
auditor’s engagement. Royal Street shall reasonably

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cooperate with the auditor and its representatives in connection with any audit, providing
reasonable access to any and all relevant books and records and causing its employees, accountants
and other representatives and agents to cooperate with the auditor. The cost of the audit shall be
borne by the charged Party unless the audit indicates that the charging Party has overcharged the
charged Party by more than five percent (5%) of the total dollar amount of billings covered by the
audit, in which event, the charging Party shall pay for the audit and shall give the charged Party
a credit in the amount of any overcharge.

ARTICLE XIV

APPLICABLE TAXES

14.1 Payment of Taxes

     Except as otherwise provided in this Agreement, each Party shall be fully responsible for
calculating and remitting any Taxes that Applicable Law requires such Party to pay, including
filing all returns, submitting such information as Applicable Law may require and responding to
inquires concerning such Taxes (“Remitting”).

	14.2	 	Taxes on Royal Street’s Lease of Equipment and Facilities and MetroPCS’s Provision
of Services

	 	(a)	 	MetroPCS shall be responsible for Remitting any Taxes imposed in connection
with MetroPCS’s receipt of payments from Royal Street for the lease of Equipment and
Facilities and MetroPCS’s provision of services.
	 
	 	(b)	 	Royal Street shall pay to MetroPCS an amount equal to all Taxes that MetroPCS
is required to Remit in connection with Royal Street’s lease of Equipment and
Facilities and MetroPCS’s provision of services (other than general income or property
taxes). MetroPCS shall state all such Taxes as separate items on its invoices and
shall indicate the jurisdiction imposing the Taxes.
	 
	 	(c)	 	Royal Street shall not be required to pay to MetroPCS any Tax described in
this Section if Royal Street provides MetroPCS with a certificate evidencing exemption
from payment for liability for such Tax. If Applicable Law provides an exemption from
any Tax described in this Section, but does not also provide a procedure for issuing
exemption certificates, then MetroPCS shall not collect such Tax if Royal Street
furnishes MetroPCS a letter from an officer, a senior level management official of
Royal Street or outside counsel describing the exemption, identifying the provision of
Applicable Law that both allows such exemption and does not provide for an exemption
certificate, and

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certifying that Royal Street has complied with the requirements of Applicable
Law in order to avail itself of the exemption.

14.3 Taxes on MetroPCS’s Purchase of MetroPCS Wholesale Services

	 	(a)	 	Royal Street shall be responsible for Remitting any Taxes imposed in
connection with Royal Street’s receipt of payments from MetroPCS for MetroPCS
Wholesale Services.
	 
	 	(b)	 	MetroPCS shall pay to Royal Street an amount equal to all Taxes that Royal
Street is required to Remit in connection with MetroPCS’s purchase of MetroPCS
Wholesale Services (other than general income or property taxes). Royal Street shall
state all such Taxes as separate items on its invoices and shall indicate the
jurisdiction imposing the Taxes.
	 
	 	(c)	 	MetroPCS shall not be required to pay to Royal Street any Tax described in
this section if MetroPCS provides Royal Street with a certificate evidencing exemption
from payment for liability for such Tax. If Applicable Law provides an exemption from
any Tax described in this section, but does not also provide a procedure for issuing
exemption certificates, then Royal Street shall not collect such Tax if MetroPCS
furnishes Royal Street a letter from an officer, a senior level management official of
MetroPCS or from outside counsel describing the exemption, identifying the provision
of Applicable Law that both allows such exemption and does not provide for an
exemption certificate, and certifying that MetroPCS has complied with the requirements
of Applicable Law in order to avail itself of the exemption.

14.4 Cooperation

     The Parties shall cooperate with respect to any planning to minimize Taxes, and with respect
to any Tax audit, Tax controversy, Tax refund matter, claim, action or similar proceeding by a
Governmental Entity. The degree of cooperation contemplated by this Section is to enable any tax
inquiry or controversy to be resolved expeditiously and includes, but is not limited to, assisting
with responses to audit inquiries and producing documents and information. A Party receiving a Tax
audit inquiry from a Governmental Entity shall promptly notify the other Party. The Party Remitting
any Tax shall be responsible for managing any Tax audit associated with that Tax.

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ARTICLE XV

ACCOUNTING AND REPORTS

15.1 Books and Records

     MetroPCS shall, upon request, provide to Royal Street on a timely basis such information
concerning the operation of the Royal Street Systems pursuant to the Agreement that is in its
possession and that will enable Royal Street to fulfill its duties with respect to the books and
records of the Royal Street Systems.

15.2 Meetings

     Representatives of Royal Street and MetroPCS shall meet periodically to discuss the status of
the operation of the Royal Street Systems. During the first twelve (12) months after the Effective
Date, such meeting shall be held monthly; thereafter, such meetings shall be held at least every
other month. Such meetings may be conducted by teleconference.

15.3 Cooperation of MetroPCS’s Employees

     The employees of MetroPCS shall cooperate with and respond to any inquiries made by Royal
Street’s designated representatives concerning the operation of the Royal Street Systems, and the
Systems Contact for each of the Royal Street Systems shall respond to directions from Royal
Street’s designated representatives. In the event any Systems Contact for a Royal Street System
believes that the directions of Royal Street’s representatives are not in the best interests of
Royal Street, the Systems Contact shall consult with Royal Street’s CEO, or delegatee, in order to
resolve the matter. If they cannot resolve the matter, it shall be referred to the Management
Committee of Royal Street for resolution.

15.4
Taxes, Fees and Filings

     Upon Royal Street’s written request, MetroPCS shall provide Royal Street with reasonable
support in connection with the timely preparation of any Federal, state and local tax returns, and
any returns relating to other fees and assessments, including any fees imposed by the FCC, as well
as any applications and filings required to be submitted to the FCC. It being agreed and understood
that all filings by Royal Street with any Governmental Entity shall be made by Royal Street or C9
Wireless and not by MetroPCS on behalf of Royal Street.

ARTICLE XVI

TERM AND TERMINATION

16.1 Term

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     Subject to the termination
provisions set forth in Section 16.2, this Agreement shall have an
initial term commencing on the Effective Date and ending on ***. After the initial term, this Agreement will automatically
renew for successive *** terms on the same terms and conditions unless either Party gives
notice of its intention not to renew in accordance with this Section 16.1. Either Party must give
written notice of an intention not to renew no less than twenty-four (24) months prior to the end
of the initial term and no less than twelve (12) months prior to the end of a renewal term.

16.2 Termination

     In addition to their other rights at law or equity, this Agreement may be
terminated in the following circumstances:

	 	(a)	 	Either Party may terminate this Agreement:

	 	(i)	 	on thirty (30) days written notice, if there has been
a material non-monetary breach of this Agreement by the non-terminating party
which has not been cured by the conclusion of the following dispute resolution
process:

	 	(A)	 	     The terminating party shall notify the
non-terminating party in writing (“Breach Notice”) of the events
which it reasonably believes constitute a material non-monetary
breach and representatives of the parties shall meet promptly in a
good faith effort to resolve the dispute in a mutually acceptable
fashion.
	 
	 	(B)	 	     In the event the discussions between the
Parties required by Section 16.2(a)(i)(A) have failed to resolve the
dispute within 20 days, either of the Parties may request, in
writing, that such matter be referred to the CEO (or his or her
management level delegatee other than the representative previously
involved in the discussions) of each of the Parties for an
appropriate negotiated resolution. Upon such a request, the CEOs of
each of the Parties (or their delegatees) shall meet in a good faith
effort to resolve the dispute in a mutually agreeable fashion within
10 days following the referral to the CEOs.
	 
	 	(C)	 	     In the event that the CEOs are unable to
resolve the dispute in accordance with the procedure contemplated by
Section 16.2(a)(i)(B), the terminating party may notify the
non-terminating party in writing (the “Cure Notice”) that the Breach
Notice remains unresolved and that the non-

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	 	 	 	terminating party has thirty (30) days to cure the alleged breach.

	 	(ii)	 	on thirty (30) days notice if a party is in material default under any
monetary obligation of this Agreement and such non-terminating party has not cured
such monetary default within ten (10) days of written notice;
	 
	 	(iii)	 	on five (5) days written notice, in the event the non-terminating party:
(A) ceases to do business as a going concern; (B) is unable or admits in writing its
inability to pay its debts as they become due; (C) commences or authorizes a voluntary
case or other proceeding seeking liquidation, reorganization, suspension of payments
or other relief with respect to itself 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 in an involuntary
case or other proceeding commenced against it, or makes a general assignment for the
benefit of creditors, or fails to pay a substantial portion of its debts as they
become due, or takes any corporate action to authorize any of the foregoing, is
insolvent, bankrupt or the subject of a receivership; or (D) has any substantial part
of its property subjected to any levy, seizure, assignment or sale for or by any
creditor or governmental agency without such levy, seizure, assignment or sale being
released, lifted, reversed or satisfied within ten (10) days; and
	 
	 	(iv)	 	in accordance with the provisions of Section 18.5.

	 	(b)	 	Royal
Street may terminate this Agreement:

	 	(i)	 	on thirty (30) days written notice in the event of an FCC Final
Order revoking, terminating or canceling any material License or refusing to
renew such License due to any act or omission by MetroPCS;
	 
	 	(ii)	 	In addition to its other rights at law and in equity, Royal Street may
terminate this Agreement on sixty (60) days written notice if MetroPCS deploys or
announces its intention to deploy equipment or facilities that will preclude Royal
Street from providing seamless and interoperable PCS Service in a Market, will cause
interference to the operation of the Royal Street System, or will materially degrade
the quality of Royal Street PCS Service.

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	 	(iii)	 	on five (5) days notice, if MetroPCS is found by the FCC in a
Final Order to lack the qualifications to be the licensee of a Commercial
Mobile Radio Service system;

	 	(c)	 	Royal Street may terminate the Support Services at will on *** advance written notice and, upon the effective date of such termination, Royal
Street will be relieved of the obligation to pay the compensation to MetroPCS set
forth in Article X. The termination of Support Services pursuant to this paragraph
shall not alter the obligation of Royal Street to provide Wholesale Services to
MetroPCS pursuant to this Agreement.

     Notwithstanding anything contained herein to the contrary, during any notice or cure period
provided in (a) through (c) above, both Parties shall continue to perform their obligations
hereunder.

16.3 Transition

	 	(a)	 	After receipt of written notice of termination, but prior to the effective
date of such termination, the Parties hereby agree to cooperate in developing and
implementing an orderly and efficient transition plan of the termination on the
ability of end users to continue to receive uninterrupted service. The obligation to
cooperate during the transition shall not be construed to require either party of
continue to provide services for which the party is not being paid. Each party will
act in good faith to minimize any adverse effects associated with transition to a new
provider for the terminated services, including, among other things, (i) to provide
the new provider with such operational and other information as the new provider may
require, (ii) to provide the new provider access to the equipment and facilities,
(iii) to assist in the transfer of such data, including billing and operating
information, as may be reasonably necessary to permit the new provider to assume
operation of the systems, and (iv) otherwise assist in a reasonable manner in
effecting an orderly transition that will permit end users to continue receiving
quality service.
	 
	 	(b)	 	MetroPCS shall be entitled to all amounts accrued for Support Services Fees,
Out-of-Pocket Expenses, and any other charges for services related to Support Services
provided to Royal Street for Other Royal Street Customers pursuant to section 2.5 that
are due and payable prior to the effective date of termination, including expenses
incurred in connection with implementing the transition plan. Royal Street shall be
entitled to all amounts accrued for Wholesale Services Fees.

16.4 Remedies in Lieu of Termination

     If MetroPCS fails to provide any of the services required under this Agreement and fails to
cure the non-performance within sixty (60) days after written notice of its

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non-performance from Royal Street (“Failed Services”), Royal Street may, in addition to all other
remedies it may have under this Agreement or at law and in equity, take any and all action
necessary to cause the Failed Services to be performed, including retaining third parties to
provide the Failed Services, or otherwise. In that event, MetroPCS shall reimburse Royal Street any
and all reasonable charges, fees, costs and expenses incurred by Royal Street in obtaining the
Failed Services. In addition, MetroPCS shall refund to Royal Street any and all charges, fees,
costs and expenses paid to MetroPCS for performance of the Failed Services.

ARTICLE XVII

INTELLECTUAL PROPERTY AND TRADEMARKS

     Nothing in this Agreement shall grant or convey to either Party any rights or
license under any present or future Intellectual Property or Trademarks disclosed or arising
pursuant to this Agreement.

ARTICLE XVIII

COMPLIANCE WITH LAWS

18.1 Compliance with the Communications Act

     The Parties acknowledge that the activities and relationships addressed by this Agreement are
subject to Applicable Law, including without limitation the Communications Act and the regulations
promulgated by the FCC.

18.2 No Violation

     Nothing in this Agreement will obligate a Party to take any action that violates Applicable
Law. In no event will a Party be obligated to perform any acts or to abstain from performing any
act if, in the Party’s reasonable legal and/or business judgment, after consulting with the other
Party, performance or non-performance will violate the Act or any Applicable Law, any regulation,
Final Order or policy of the FCC, any antitrust laws or any other Federal or state law or
regulation.

18.3 Preservation of Control

     Nothing in this Agreement permits, or will be deemed to permit, MetroPCS to exercise de facto
or de jure control over Royal Street or its operations.

18.4 Regulatory Submissions

     In the event that either Party reasonably concludes that it is necessary or advisable to file
this Agreement with a Governmental Entity or that a Governmental Entity is required to approve or
review this Agreement or the arrangement between the Parties, the

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other Party will cooperate fully in the preparation and filing of any regulatory filings which may
be necessary or appropriate, including, without limitation, providing such information as may
reasonably be necessary or which is requested by the Governmental Entity. Where one Party believes
that information to be filed with a Governmental Entity is proprietary or sensitive business
information, the Parties will cooperate to obtain such confidential treatment from the Governmental
Entity as may reasonably be secured.

18.5 Modification or Amendment of this Agreement

     In the event a Governmental Entity with jurisdiction over a Party or both Parties or over this
Agreement determines that one or more provisions of this Agreement are unlawful, contrary to public
policy or otherwise unenforceable, the Parties will negotiate in good faith to amend the Agreement
in order to comply with any such applicable regulatory requirements or policies while preserving
the business objectives of both Parties. In the event the Parties cannot reach agreement as to new
or revised provisions that will comply with the applicable regulatory requirements or policies and
preserve their business objectives, this Agreement will terminate upon ninety (90) days written
notice from one Party to the other, subject to the transition provisions of Section 16.3. Either
Party may, without the consent of the other Party, appeal or seek reconsideration of any decision
or Final Order which holds one or more provisions of this Agreement unlawful, contrary to public
policy or otherwise unenforceable, but such appeal or request for reconsideration will not affect
the obligations of the Parties under this Section to negotiate in good faith, unless a stay of the
decision or Final Order is obtained and the terms and conditions of the stay are acceptable to both
Parties. In such event, the obligations of the Parties to negotiate under this Section will attach
at such time as the stay is lifted and the adverse decision or Final Order is reinstated or becomes
effective or the stay is modified in a manner that a Party reasonably finds unsatisfactory.

ARTICLE XIX

INDEMNIFICATION

19.1 General

     Each Party (the “Indemnifying Party”) will defend, indemnify and hold harmless the other
Party, including any of its Affiliates, officers, directors, shareholders, employees and agents
(the “Indemnified Party”), from and against any and all claims, damages, losses, liabilities
whatsoever, including reasonable legal fees and any damages, (“Claims”) arising out of, caused by,
related to or based upon a Claim (a) by a third party for physical property damage, personal
injury, or wrongful death, whether sounding in tort or contract, claim of defamation, invasion of
privacy or similar claim based on any act or omission of the other Party, its employees, agents or
contractors in connection with this Agreement, (b) that the Indemnifying Party’s products or
services infringe or violate any copyright, trade secret, trademark or service mark, United States
patent or other proprietary right of a third party, or (c) that the claimant was “slammed” or
“crammed,”

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as those terms are understood in the industry, except where such Claims arise out of the
willful misconduct, gross negligence or fraud of the Party seeking indemnification.

19.2 Indemnification Procedure

     In any case under this Agreement where one party has indemnified the other against any Claim
or legal action, indemnification shall be conditioned on compliance with the procedure outlined
below:

	 	(a)	 	Provided that prompt notice is given of a Claim or suit for which
indemnification might be claimed, unless the failure to provide such notice does not
actually and materially prejudice the interests of the party to whom such notice is to
be provided, the indemnifying party promptly will defend, contest, or otherwise
protect against any such Claim or suit at its own cost and expense. Such notice shall
describe the Claim or suit in reasonable detail and shall indicate the amount
(estimated, if necessary) of the loss that has been or may be suffered by the
indemnified party.
	 
	 	(b)	 	The indemnified party may, but will not be obligated to, participate at its
own expense in a defense thereof by counsel of its own choosing, but the indemnifying
party shall be entitled to control the defense unless the indemnified party has
relieved the indemnifying party from liability with respect to the particular matter,
provided that the indemnifying party may only settle or compromise the matter subject
to indemnification without the consent of the indemnified party if such settlement
includes a complete release of all indemnified parties as to the matters in dispute
and provided further that the indemnified party will not unreasonably withhold consent
to any settlement or compromise that requires its consent.
	 
	 	(c)	 	In the event the indemnifying party fails to timely defend, contest or
otherwise protect against any such Claim or suit, the indemnified party may, but will
not be obligated to, defend, contest or otherwise protect against the same, and make
any compromise or settlement thereof and recover the entire costs thereof from the
indemnifying party, including reasonable attorneys’ fees, disbursements and all
amounts paid as a result of such Claim or suit or the compromise or settlement
thereof; provided, however, that if the indemnifying party undertakes the defense of
such matter, the indemnified party shall not be entitled to recover from the
indemnifying party for its costs incurred in the defense thereof other than the
reasonable costs of investigation undertaken by the indemnified party and reasonable
costs of providing assistance.
	 
	 	(d)	 	The indemnified party shall cooperate and provide such assistance as the
indemnifying party may reasonably request in connection with the defense of the matter
subject to indemnification and in connection with recovering from any third parties
amounts that the indemnifying party may pay or be

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	 	 	 	required to pay by way of indemnification hereunder. The indemnified party shall
take commercially reasonable steps to protect its position with respect to any
matter that may be the subject of indemnification hereunder in the same manner as
it would any similar matter where no indemnification is available.

19.3 Mitigation of Damages

     An indemnified party shall, to the extent practicable and reasonably within its control and at
the expense of the indemnifying party, make commercially reasonable efforts to mitigate any damages
of which it has adequate notice, provided that the indemnified party shall not be obligated to act
in contravention of Applicable Law or in contravention of reasonable and customary practices of a
prudent person in similar circumstances. The indemnifying party shall have the right, but not the
obligation, and shall be afforded the opportunity by the indemnified party to the extent reasonably
possible, to make commercially reasonable efforts to minimize damages before such damages actually
are incurred by the indemnified party.

19.4 Claim of Infringement

     In the case of a Claim of infringement of any Intellectual Property or Trademark right, where
a court of competent jurisdiction finds such infringement, the Indemnifying Party will, at its
option and expense, use all reasonable efforts either (a) to procure for the Indemnified Party the
right to continue to use the product, service or other item as provided for herein, (b) to modify
the infringing product, service or other item so that it is noninfringing, without materially
altering its performance or function, (c) to replace the infringing product, service or other item
with a substantially equivalent noninfringing item, or (d) to refund the price paid for the use of
such Intellectual Property or Trademark right, less a reasonable charge for the use prior to the
infringement.

ARTICLE XX

REPRESENTATIONS AND WARRANTIES

     Each Party hereby represents and warrants to the other Party as of November 24, 2004 as
follows:

20.1 Organization, Standing and Authority

     The Party is a limited liability company duly organized, validly existing and in good standing
under the laws of the jurisdiction where it is formed, that it has all requisite power and
authority to enter into this Agreement and to consummate the transactions contemplated herein, that
all acts and other proceedings required to be taken to authorize the execution, delivery and
performance hereof and the consummation of the transactions contemplated herein have been duly and
properly taken, and that this Agreement has been duly executed and delivered by it and constitutes
the legal, valid and binding obligation

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of the Party, enforceable against it in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles.

20.2 No Violation

     The execution and delivery by the Party of this Agreement and the consummation of the
transactions contemplated hereby and compliance with the terms hereof will not (a) conflict with or
result in any violation of any provision of the organizational documents of the Party, (b) conflict
with, result in a violation or breach of, or constitute a default, or give rise to any right of
termination, revocation, cancellation, or acceleration, under, any material contract, concession or
permit issued to the Party, except for any such conflict, violation, breach, default or right which
is not reasonably likely to have a material adverse effect on the ability of the Party to
consummate the transactions contemplated by this Agreement, (c) conflict with or result in a
violation of any judgment, order, decree, writ, injunction, statute, law, ordinance, concession,
permit, rule or regulation applicable to the Party or to the property or assets of the Party,
except for any such conflict or violation which is not reasonably likely to have such a material
adverse effect, or (d) violate any existing contractual arrangement to which the Party is a party
or give rise to a Claim against any other Party for inducing a breach of contract or interfering
with contractual or other rights, or similar Claim.

20.3 Consents and Approvals

     No consent, approval, license, permit, order or authorization of, registration, declaration or
filing with, or notice to, any Governmental Entity is required to be obtained or made by or with
respect to any Party in connection with the execution and delivery hereof or the consummation of
the transactions contemplated hereby, other than those filings that are necessary in order for
Royal Street to participate in the Auction Process and prosecute the applications where it is the
Successful Bidder. The Parties have or will obtain all necessary consents, approvals,
authorizations and permits necessary to perform fully hereunder.

20.4 Regulatory Compliance of Facilities

     Any equipment, facilities and services provided pursuant to this Agreement, including the
attachments hereto, comply or will comply with all applicable rules or standards adopted by the FCC
or other Governmental Entities including but not limited to those with respect to E-911, number
portability, number conservation, CALEA, RF radiation hazard standards, universal service, privacy
methodologies and access by persons with disabilities.

20.5 MetroPCS’s Covenant of Workmanlike Quality

     MetroPCS hereby covenants and agrees that it will exercise reasonable care in performing the
services performed pursuant to this Agreement and that such services will

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be performed in a diligent, professional, commercially reasonably and workmanlike manner,
consistent with industry standards for the wireless telecommunications industry. This covenant is
given in lieu of any other warranty, express or implied, including without limitation, implied with
warranties of merchantability or fitness for a particular purpose. Notwithstanding anything
contained herein to the contrary, Royal Street’s sole remedy for a breach of this Agreement shall
be (a) Royal Street’s right to have MetroPCS re-perform the services in a workmanlike manner and
(b) Royal Street’s right to terminate the Agreement as set forth in Section 16.

ARTICLE XXI

LIMITATION OF LIABILITY

21.1 Limitations of Responsibility

     Each Party will be responsible only for services and facilities which are provided by that
Party, its Affiliates, authorized agents, subcontractors or others retained by such persons, and no
Party will bear any responsibility for the services and facilities provided by the other Party, the
other Party’s Affiliates, agents, subcontractors or other persons retained by such Persons. No
Party will be liable for any act or omission of another telecommunications carrier (other than an
Affiliate) providing a portion of a service.

21.2 Limitations of Damages

     The Parties will not be liable to each other for any indirect, incidental consequential,
reliance or special damages (including, without limitation, damages for harm to business, lost
revenues, lost savings or lost profits suffered by such other parties), regardless of the form of
action, whether in contract, warranty, strict liability, or tort, including without limitation
negligence of any kind whether active or passive, and regardless of whether the Parties knew of the
possibility that such damages could result. The Parties hereby release each other and their
respective Affiliates, officers, directors, employees, and agents from any such Claim. Nothing
contained in this section will limit one Party’s liability to another Party for (i) willful or
intentional misconduct (including gross negligence) or (ii) bodily injury, death, or damage to
tangible real or tangible personal property proximately caused by a Party’s negligent act or
omission or that of their respective agents, subcontractors or employees, nor will anything
contained in this section limit the Parties’ indemnification obligations under this Agreement.

21.3 Limitations of Liability

     Notwithstanding anything contained in this Agreement to the contrary, neither Party shall be
(i) liable to the other Party for the failure to perform an obligation under this Agreement (nor
shall either Party be in default or in breach of any provision of this Agreement) where the failure
to perform is the result of the other Party’s failure to perform its obligations under this
Agreement, nor (ii) required to perform its obligations under this Agreement when such Party’s
performance is contingent upon the other

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Party’s performance and the other Party fails to perform its obligations under this
Agreement.

21.4 Further Limitations

	 	(a)	 	The Parties hereto waive as against each other any claims to consequential,
special, exemplary or punitive damages except to the extent consequential, special,
exemplary or punitive damages are awarded to a third party against an indemnified
party in circumstances in which such indemnified party is entitled to indemnification
hereunder. ***
	 
	 	(b)	 	In calculating any Damages to be paid under ARTICLE XIX or XXI, there shall
be deducted ***.

ARTICLE XXII

CONFIDENTIALITY

22.1 General

     Each Party will hold in confidence and withhold from third parties (other than as permitted
below) any and all Proprietary Information received pursuant to this Agreement, and all Proprietary
Information used in the preparation and negotiation of this Agreement. Each Party will use such
Proprietary Information only to fulfill its obligations or enforce its rights hereunder and for no
other purposes unless the disclosing Party will otherwise agree in writing.

22.2 Obligation to Protect Proprietary Information

     Each Party will use commercially reasonable efforts to safeguard any Proprietary Information
received pursuant to this Agreement from theft, loss or disclosure to others, and to limit access
to Proprietary Information to those officers, directors and employees within the receiving Party’s
organization, and subcontractors, consultants, investors, advisors, attorneys, service providers,
business partners and others who reasonably require access in order to accomplish the aforesaid
purposes. Proprietary Information will be protected hereunder only if it is in written or other
permanent form and identified as proprietary when provided. Any such information in other than
written or other permanent form when disclosed will be considered Proprietary Information that is
protected hereunder, unless the Party disclosing such information advises the other Party that it
is not Proprietary. The receiving Party will not be liable for unauthorized use or

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disclosure of any such Proprietary Information if it can establish that the same: (i) is or becomes
public knowledge or part of the knowledge or literature within the telecommunications industry
without breach of this Agreement by the receiving Party; (ii) is known to the receiving Party
without restriction as to further disclosure when received; (iii) is independently developed by the
receiving Party as demonstrated by written records; or (iv) is or becomes known to the receiving
Party from a third party who had a lawful right to disclose it without breach of its contractual
obligations. Specific Proprietary Information will not be deemed to be available to the public or
in the possession of the receiving Party merely because it is included within more general
information so available or in the receiving Party’s possession.

22.3 Judicial or Administrative Proceedings

     Should the receiving Party be faced with judicial or administrative governmental action to
disclose Proprietary Information received hereunder, said receiving Party will use commercially
reasonable efforts to notify the originating Party in sufficient time to permit the disclosing
Party to intervene in response to such action.

22.4 Loss or Unauthorized Use

     The receiving Party agrees promptly to notify the disclosing Party of the loss or unauthorized
use or disclosure of any Proprietary Information.

22.5 Nondisclosure Agreements

     Each Party will have any third party or Person to whom it provides the Proprietary Information
of any other Party agree in writing to be bound to protect such Proprietary Information on the same
conditions as set forth herein.

22.6 Termination

     Upon termination of this Agreement for any reason, the Parties will cease use of all
Proprietary Information furnished by any other Party and will, at the direction of the furnishing
Party, return or destroy all such Proprietary Information, together with all copies made hereof,
except to the extent that the receiving Party retains a license to use such Proprietary
Information. Upon request, the receiving Party will send the other Party a destruction certificate.

22.7 Irreparable Injury by Disclosure to Competitors

     Specifically, but without limiting the foregoing, each Party agrees and acknowledges that the
disclosure by a Party of any Proprietary Information to any competitor of a Party could cause
irreparable harm to such Party, and agrees not to make such a disclosure. Each Party will have the
right to enforce the provision of this Section by injunctive relief, including specific
performance. Personnel of one Party or its Affiliates present at the premises of one of the other
Parties or its Affiliates will refrain

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from obtaining access to information that is proprietary to the customers of such other Party or
its Affiliates. Such personnel will comply with the other Party’s or its Affiliates’ reasonable
measures established to restrict such access.

22.8 Survival of Nondisclosure Obligations

     The obligations set forth in this ARTICLE XXII will survive the termination of this Agreement
for ***.

ARTICLE XXIII

GENERAL PROVISIONS

23.1 Americans With Disabilities Act

     The Parties agree to coordinate any activities taken collectively which may be subject to the
requirements of the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.) and with the
network disclosure rules adopted by the FCC in proceedings to implement that Act or any amendments
to that Act.

23.2 Amendment

     No amendment of this Agreement will be valid or binding on the Parties unless such amendment
will be in writing and duly executed by an authorized representative of each Party.

23.3 Assignment

     No Party may assign or delegate any of its rights or obligations under this Agreement,
provided, that (a) MetroPCS may subcontract its rights and obligations to an Affiliate without the
consent of Royal Street, so long as MetroPCS remains responsible for compliance with the rights and
obligations under this Agreement, (b) MetroPCS may assign its rights and obligation to an Affiliate
with the consent of Royal Street, which consent shall not be unreasonably withheld, delayed or
conditioned and (c) MetroPCS may assign its rights and obligations under this Agreement to an
assignee or transferee of all or a substantial portion of the MetroPCS CMRS Systems provided that
the licensee qualifications of the assignee or transferee have been approved by the FCC.

23.4 Attachments

     Any attachments to this Agreement are incorporated into the Agreement and governed by the
terms hereof. In the event of any conflict between an attachment and this Agreement, the attachment
will control.

23.5 Cooperation

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     Each Party will use its respective commercially reasonable efforts to perform all actions or
refrain from performing any action, in either case as reasonably requested by any other Party, in
connection with the performance of the activities contemplated by this Agreement.

23.6 Costs, Expenses and Attorneys’ Fees

     Each Party will be responsible for its own expenses arising under this Agreement, including
the preparation of this Agreement, except as set forth herein.

23.7 Dispute Resolution

     All disputes will be resolved as provided for in ARTICLE 17 of the LLC Agreement.

23.8 Entire Agreement

     This Agreement, the LLC Agreement and Ancillary Agreements referenced in the LLC Agreement
constitute the entire agreement and understanding of the Parties hereto with respect to the subject
matters contained therein. To the extent there is a conflict between this Agreement and the LLC
Agreement, the LLC Agreement will control.

23.9 Execution

     This Agreement may be executed in counterparts each of which copies will be deemed an
original.

23.10 Force Majeure

     Neither Party will be liable for any delay or failure in performance of any part of this
Agreement from any cause beyond its control and without its fault or negligence including, without
limitation, acts of nature, acts of civil or military authority, government regulations, embargoes,
epidemics, terrorist acts, riots, insurrections, fires, explosions, earthquakes, nuclear accidents,
floods, work stoppages, failures by common carriers or suppliers, equipment failure, cable cuts,
power blackouts, volcanic action, other major environmental disturbances or unusually severe
weather conditions. In such event, the Party affected will, upon giving prompt notice to the other
Party, be excused from such performance on a day-to-day basis to the extent of such interference
(and the other Party will likewise be excused from performance of its obligations on a day-to-day
basis to the extent such Party’s obligations are related to the performance so interfered with).
Good Faith Performance

23.11 Good Faith Performance

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     Each Party will act in good faith in its performance under this Agreement and, in each case in
which a Party’s consent or agreement is required or requested hereunder, such Party will not
unreasonably withhold or delay such consent or agreement.

23.12 Governing Law

     This Agreement will be construed in accordance with and governed by the laws of the State of
Delaware without regard to choice of law provisions.

23.13 Insurance

     At all times during the term of this Agreement each Party will keep and maintain in force at
its own expense, and covering the other Party as an additional insured, all insurance required by
Applicable Law, including, but not limited to, workers’ compensation insurance, and general
liability insurance in an amount to be determined promptly following the Effective Date for
personal injury or death, property damage, and automobile liability with coverage for bodily injury
and property damage. Upon request by the other Party, a Party will provide to the other Party
evidence of such insurance (which may be provided through a program of self-insurance). Each Party
must give the other Party at least thirty (30) days prior written notice of termination of any of
the foregoing insurance policies.

23.14 Joint Work Product

     This Agreement is the joint work product of the Parties and has been negotiated by the Parties
and their respective counsel and will be fairly interpreted in accordance with its terms. In the
event of any ambiguities, no inferences will be drawn against either Party.

23.15 Labor Relations

     Each Party will be responsible for labor relations with its own employees. Each Party agrees
to notify the other Party as soon as practicable whenever such Party has knowledge that a labor
dispute concerning its employees is delaying or threatens to delay such Party’s timely performance
of its obligations under this Agreement and will minimize impairment of service to the other Party
(e.g., by using its management personnel to perform work or by other means) to the extent permitted
by Applicable Law.

23.16 No Waiver

     The failure of any Party to insist upon or enforce strict performance by any other Party of
any provision of this Agreement or to exercise any right under this Agreement will not be construed
as a waiver or relinquishment to any extent of such Party’s right to assert or rely upon any such
provision or right in that or any other instance; rather, the same will be and remain in full force
and effect.

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23.17 Nonexclusive Dealings

     This Agreement does not prevent either Party from operating Commercial Mobile Radio
Service systems on its own, or with other Persons.

23.18 Notices

     Any notice, request, instruction or other document to be given hereunder by any Party to
any other Party under any section of this Agreement will be in writing and will be deemed
given upon receipt if delivered personally or by telex or facsimile, the next day if by
express mail or three (3) days after being sent by registered or certified mail, return
receipt requested, postage prepaid to the following addresses (or at such other address for a
Party as will be specified by like notice provided that such notice will be effective only
after receipt thereof):

	 	 	 
	If to MetroPCS:

	 	MetroPCS Wireless, Inc.
	 

	 	8144 Walnut Hill Lane
	 

	 	Suite 800
	 

	 	Dallas, Texas 75231
	 

	 	Attention: Vice President, General Counsel and Secretary
	 

	 	Telephone: 214-265-2550
	 
	 	 
	With a copy (which will not

	 	Paul, Hastings, Janofsky & Walker LLP
	constitute notice) to:

	 	875 15th Street N.W.
	 

	 	Twelfth Floor
	 

	 	Washington, DC 20005
	 

	 	Attention: Carl. W. Northrop
	 

	 	Telephone: 202-551-1725
	 
	 	 
	If to Royal Street:

	 	Royal Street Communications, LLC
	 

	 	PO Box 2365
	 

	 	Southampton, NY 11969
	 

	 	Attention: Robert Gerard
	 

	 	Telephone: 631-283-9153
	 
	 	 
	With a copy (which will not

	 	Schulte, Roth & Zabel LLP
	constitute notice) to:

	 	919 Third Avenue
	 

	 	New York, NY 10022
	 

	 	Attention: Paul N. Roth, Michael R. Littenberg
	 

	 	Telephone: 212-593-5955

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23.19 Publicity

     The Parties agree to cooperate in the preparation and dissemination of publicity concerning
this Agreement. No Party will make a public announcement about this Agreement or the Parties’
discussions related to any aspect of it, without the written consent of the other Party, which
consent will not be unreasonably refused, delayed, or conditioned. Any Party may at any time make
announcements which are required by Applicable Law, regulatory bodies, or stock exchange or stock
association rules, so long as the Party so required to make the announcement notifies in advance
the other Party of such requirement and promptly discusses with the other Party in good faith the
wording of any such announcement.

23.20 Regulatory Filings

     Each Party will cooperate to the extent reasonably practicable in the preparation and filing
of any regulatory filings necessary or advisable to permit the performances and operations set
forth in this Agreement, including, without limitation, the provision of any information as may
reasonably be necessary therefore.

23.21 Relationship of Parties

     Each Party shall perform services hereunder as an independent contractor and nothing herein
shall be construed as creating any other relationship between the Parties. The relationship
established by this Agreement will not be construed to create a partnership, joint venture or any
other form of legal entity, nor establish any fiduciary relationship among the Parties or any
affiliate of any Party. The provision of the services described in this Agreement does not
establish any joint undertaking, joint venture, pooling arrangement, partnership, fiduciary
relationship or formal business organization of any kind. Except as provided in this Agreement, no
Party shall act as or hold itself out as agent for the other Party or create or attempt to create
liabilities for any other Party.

23.22 Rules of Construction

     For purposes of this Agreement, except as otherwise expressly provided or unless the context
otherwise requires, (a) words used in this Agreement, regardless of the gender and number
specifically used, will be deemed and construed to include any other gender and any other number as
the context requires; (b) as used in this Agreement, the word “including” is not limiting, and the
word “or” is not exclusive; (c) except as specifically otherwise provided in this Agreement in a
particular instance, a reference to a Section, Schedule, Attachment, Appendix or Exhibit is a
reference to a Section of this Agreement or a Schedule, Attachment, Appendix or Exhibit hereto, and
the terms “this Agreement,” “hereof,” “herein,” and other like terms refer to this Agreement as a
whole, including the Schedules, Attachments, Appendices and Exhibits to this Agreement, and not
solely to any particular part of this Agreement; (d) the descriptive headings in this Agreement are
inserted for convenience of reference only and are not intended to be part of or to affect the
meaning or interpretation of this Agreement; (e) this Agreement will be construed to

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refer to the provision of services in the United States of America; and (f) as used in this
Agreement, unless otherwise specifically noted herein, the word “day” or “days” means a calendar
day or days, respectively, including weekends and holidays.

23.23 Severability

     In case any one or more of the provisions contained in this Agreement is for any reason be
held to be invalid, illegal or unenforceable in any respect by a court or other authority of
competent jurisdiction, such invalidity, illegality or unenforceability will not affect any other
provision hereof and the Agreement will be construed as if such invalid, illegal or unenforceable
provision had never been contained herein and, in lieu of each such illegal, invalid or
unenforceable provision, there will be added automatically as a part of the Agreement a provision
as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable, it being the intent of the Parties to maintain the benefit of the
bargain for all Parties. If any provision of this Agreement, or the application thereof to any
Person or any circumstance, is found by the FCC to violate applicable FCC rules, regulations or
policies, the Parties shall negotiate in good faith to agree on a suitable and equitable provision
to be substituted therefore in order to preserve the benefits to the respective Parties
contemplated by and the purposes of this Agreement.

23.24 Third Party Warranties

     Each Party will enforce any rights, warranties, licenses, terms and conditions and other
benefits accruing to it under each of its agreements with third parties participating in or
providing equipment, software or other services used in connection with the provision of services
under the Agreement wherever and whenever such Party’s failure to enforce any such rights,
warranties, licenses, terms, conditions and other benefits could materially impair its ability to
provide such services in accordance with the terms and conditions of the Agreement.

23.25 Third Party Beneficiaries

     This Agreement is for the sole benefit of the Parties and their permitted assigns, and nothing
herein expressed or implied will create or be construed to create any third-party beneficiary
rights hereunder, other than to permitted assigns. Except as specifically provided in this
Agreement, nothing in this Agreement will constitute a Party as a legal representative or agent of
the other Party, nor will a Party have the right or authority to assume, create or incur any
liability or any obligation of any kind, express or implied, against or in the name or on behalf of
the other Party unless otherwise expressly permitted by such other Party.

23.26 Use of Contractors and Agents

     Each Party will be fully responsible for the actions and conduct of their contractors,
subcontractors, consultants, agents and others employed to undertake or

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perform any act or function under this Agreement as if the Party undertook or performed the act or
function through its directors, officers and employees.

23.27 Venue; Waiver of Jury Trial

	 	(a)	 	THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF
THE COURTS OF THE STATE OF DELAWARE AND THE FEDERAL
COURT OF THE UNITED STATES OF AMERICA LOCATED IN THE
STATE OF DELAWARE SOLELY IN RESPECT OF THE
INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF
THIS AGREEMENT AND OF THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT, AND WAIVE, AND
AGREE NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT
OR PROCEEDING FOR THE INTERPRETATION OR
ENFORCEMENT OF THIS AGREEMENT OR OF ANY SUCH
DOCUMENT, THAT IT IS NOT SUBJECT THERETO OR THAT
SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT
OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT THE
VENUE THEREOF MAY NOT BE APPROPRIATE OR THAT THIS
AGREEMENT OR ANY SUCH DOCUMENT MAY NOT BE
ENFORCED IN OR BY SUCH COURTS, AND THE PARTIES
IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO
SUCH ACTION OR PROCEEDING SHALL BE HEARD AND
DETERMINED IN SUCH A DELAWARE STATE OR FEDERAL
COURT. THE PARTIES CONSENT TO AND GRANT ANY SUCH
COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES
AND OVER THE SUBJECT MATTER OF SUCH DISPUTE.
	 
	 	(b)	 	EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT
IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES,
AND THEREFORE EACH SUCH PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER
VOLUNTARILY, AND (IV) EACH PARTY HAS BEEN INDUCED TO

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	 	 	 	ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 23.27.

[signatures follow on next page]

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

47

 

          IN WITNESS WHEREOF, the Parties hereto have caused this Services
Agreement to be executed by their respective authorized representatives as of the
date and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	METROPCS WIRELESS, INC.	 	 	 	ROYAL STREET
COMMUNICATIONS, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Roger D. Linquist
	 	 	 	By:	 	/s/ Robert A. Gerard	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Roger D. Linquist
	 	 	 	Name:	 	ROBERT A. GERARD	 	 	 
	Title:

	 	President and CEO
	 	 	 	Title:	 	CHIEF EXECUTIVE OFFICER	 	 	 

 

 

APPENDIX A

Master Equipment and Facilities Lease Agreement

CONFIDENTIAL AND PROPRIETARY INFORMATION OF GWI PCS1, METROPCS, C9 WIRELESS AND ROYAL STREET
COMMUNICATIONS NOT TO BE DISCLOSED EXCEPT BY WRITTEN AGREEMENT OF SUCH PARTIES

 

 

MASTER EQUIPMENT AND FACILITIES LEASE AGREEMENT

by and between

METROPCS WIRELESS, INC. and ROYAL STREET COMMUNICATIONS, LLC

	 	 	 
	LESSEE:

	 	Royal Street Communications, LLC
	Address:

	 	PO Box 2365
	 

	 	Southampton, NY 11969
	 
	 	 
	LESSOR:

	 	MetroPCS Wireless, Inc.
	Address:

	 	8144 Walnut Hill Lane
	 

	 	Suite 800
	 

	 	Dallas, TX 75231

Lease Number:                     

     1. AGREEMENT. Lessor agrees to lease to Lessee and Lessee agrees to lease from
Lessor the Equipment and Facilities as more fully described in any schedule (individually
a “Schedule” and collectively the “Schedules”) that is or are incorporated by reference into
this Master Equipment and Facilities Lease Agreement (the “Agreement”). Each Schedule shall be
incorporated by reference into this Agreement by listing the above-referenced Lease Number
thereon and shall upon such incorporation be deemed to become part of a single integrated
agreement governed by the terms and conditions of this Agreement, as well as by the terms
and conditions set forth in the applicable Schedule. Each Schedule, when taken with this
Agreement and all other Schedules, shall constitute the entire agreement. All capitalized terms
herein which are not defined herein shall have the meanings ascribed to them in the Services Agreement,
dated as of November 24, 2004, between MetroPCS Wireless, Inc. and Royal Street Communications,
LLC (the “Services Agreement”).

     2. APPOINTMENT OF LESSOR AS PURCHASING AGENT. Lessee has delivered
to Lessor copies of the Construction Plan and Technical Services Plan (collectively, the
“Plans”) that have been duly approved by the Management Committee of Royal Street. Together, the
Plans specify the Equipment and Facilities to be utilized in the construction and operation of
the Royal Street Systems. Lessee authorizes Lessor to act as Lessee’s agent to issue a purchase
order to any third party for the Equipment and Facilities (each, a “Seller”) and for necessary related
goods and services in accordance with the Plans. Such purchase order shall be subject to this
Section 2 and all references in this Agreement to Purchase Documents shall include such purchase order. By
executing the applicable Schedule, Lessee represents and warrants that Lessee has
reviewed, approved and received a copy of the applicable Purchase Documents.

     3. DELIVERY; ACCEPTANCE. Lessor shall cause the Equipment and Facilities to be
delivered, at Lessee’s expense, to Lessee at the Equipment and Facilities Location (as
specified in the applicable Schedule) and Lessee shall accept the Equipment and Facilities upon the
later of (a) the installation of the Equipment and Facilities or (b) the satisfaction of the acceptance
criteria, if

 

 

any, specified in the applicable Purchase Documents. In any event, Lessee shall evidence its
acceptance of the Equipment and Facilities and commencement of this Agreement with respect thereto
by executing and delivering to Lessor a commencement certificate (the “Commencement Certificate”)
in a form acceptable to Lessor within five (5) business days after delivery. By executing and
delivering a Commencement Certificate to Lessor, Lessee represents and warrants that it has
irrevocably accepted such Equipment and Facilities under this Agreement. Lessee shall reimburse
Lessor for any late payment, interest on late payment or any other similar fee or charge imposed by
Seller as the result of Lessee’s failure to timely furnish its acceptance and all pertinent lease
documentation.

     4. PURCHASE OF EQUIPMENT AND FACILITIES. Provided that no Event of Default (as defined
in Section 18) exists, and no event has occurred and is continuing that with notice or the lapse of
time or both would constitute an Event of Default, Lessor shall be obligated to purchase the
Equipment and Facilities from Seller and to lease the Equipment and Facilities to Lessee if and
only if Lessor receives on or before the Latest Commencement Date (as specified in the applicable
Schedule) the related Commencement Certificate and Schedule executed by Lessee, and such other
documents or assurances as Lessor may reasonably request.

     5. TERM. The initial term of each Schedule shall begin on the date specified as the
Commencement Date on the Commencement Certificate with respect to such Schedule and shall, unless
otherwise specified in the Schedule, continue for a period of *** (the “Initial Term”)
with *** renewal terms (each a “Renewal Term”), at Royal Street’s written election,
beginning on the expiration of, as applicable, the Initial Term or any preceding Renewal Term
(collectively, the “Term”). At any time after *** following the Commencement
Date of a Schedule, Lessee may terminate such Schedule prior to the end of its Term upon ninety
(90) days prior written notice to Lessor (“Termination Notice”) provided that no such Termination
Notice shall be effective unless, prior to or on the effective date of such Termination Notice,
Lessee shall have paid Lessor the Lessor’s Return (as hereinafter defined) for the Equipment and
Facilities set forth in such Schedule. Lessee’s failure to pay the Lessor’s Return prior to or on
the effective date of such Termination Notice shall render such Termination Notice ineffective and
Lessee shall continue to make the Rental Payments set forth in such Schedules.

     6. RENT; LATE CHARGES. Lessee shall pay Lessor the first Rental Payment (as specified in the
applicable Schedule) for the Equipment and Facilities on or before the Commencement Date of the
applicable Schedule and shall pay Lessor the remaining periodic Rental Payments on or before the
periodic payment dates specified in the applicable Schedule. If, pursuant to this Agreement or the
applicable Schedule, the Term is extended, Lessee shall also pay all Rental Payments required with
respect thereto. In the case of a breach or an Event of Default on the part of Lessee under this
Agreement or any Schedule, all Rental Payments shall become immediately due and payable by Lessee
without demand or notice, without any court order or other process of law and without liability to
Lessee for any damages occasioned by such action, and all Equipment and Facilities are to be
immediately returned to Lessor’s possession in the same condition provided to the Lessee, less
reasonable wear and tear. Lessor is under no duty to mitigate any damages caused by Lessee’s breach
or Event of Default. All Rental Payments will be sent to Lessor’s above-referenced address, or to
such other address as specified by Lessor in writing. Lessee agrees to pay Lessor interest at the
rate of *** per month (or such lesser rate as is the

 

 

maximum rate allowable under applicable law) on any Rental Payment (or other amount due
hereunder) that is not paid within ten (10) days of its due date.

     7. INSURANCE. At its own expense, Lessee shall provide and maintain the following insurance:
(a) insurance against the loss or theft of or damage to the Equipment and Facilities for the
greater of the Stipulated Loss Value (computed as described in the applicable Schedule) or full
replacement value thereof, naming Lessor as a loss payee; and (b) public liability and third-party
property damage insurance, naming Lessor as an additional insured. Such insurance shall be in a
form, amount and with companies reasonably satisfactory to Lessor, shall contain the insurer’s
agreement to give Lessor thirty (30) days’ prior written notice before cancellation or material
change thereof, and shall be payable to Lessor regardless of any act, omission or breach by Lessee.
Lessee shall deliver to Lessor the insurance policies or copies thereof or certificates of such
insurance on or before the Commencement Date of the applicable Schedule, and at such other times as
Lessor may reasonably request. If no Event of Default exists, and no event has occurred and is
continuing that with notice or the lapse of time or both would constitute an Event of Default, the
proceeds of any insurance required under clause (a) hereof that have been paid to Lessor shall be
applied against Lessee’s obligations to Lessor under Section 12 hereof.

     8. TAXES. Lessee shall reimburse Lessor for (or pay directly, but only if instructed by
Lessor) all taxes, fees, and assessments that may be imposed by any taxing authority on the
Equipment and Facilities, on its purchase, ownership, delivery, possession, operation, rental,
lease, return to Lessor or its purchase by Lessee (collectively, “Taxes”); provided,
however, that Lessee shall not be liable for any such Taxes (whether imposed by the United
States of America or by any other domestic or foreign taxing authority) imposed on or measured by
Lessor’s net income or tax preference items. Lessee’s obligation includes, but is not limited to,
the obligation to pay all license and registration fees and all sales, use, excise, personal
property and other taxes and governmental charges, together with any penalties, fines and interest
thereon, that may be imposed during the Term of the applicable Schedule. Lessee is liable for these
Taxes whether they are imposed upon Lessor, Lessee, the Equipment and Facilities, this Agreement or
the applicable Schedule. If Lessee is required by law or administrative practice to make any report
or return with respect to such Taxes, Lessee shall promptly advise Lessor thereof in writing and
shall cooperate with Lessor to ensure that such reports are properly filed and accurately reflect
Lessor’s interest in the Equipment and Facilities. Lessor has no obligation to contest any such
Taxes; however, Lessee may do so provided that: (a) Lessee does so in its own name and at its own
expense; (b) the contest does not and will not result in any lien attaching to any Equipment and
Facilities or otherwise jeopardize Lessor’s right to any Equipment and Facilities; and (c) Lessee
indemnifies, defends, and holds harmless Lessor for all expenses (including legal fees and costs),
liabilities and losses that Lessor incurs as a result of any such contest.

     9. REPAIRS; USE; LOCATION; LABELS. Lessee shall: (a) at its own expense, keep the Equipment
and Facilities in good repair, condition and working order and maintained in accordance with the
manufacturer’s recommended engineering and maintenance standards by personnel certified to work on
such Equipment and Facilities; (b) use the Equipment and Facilities lawfully and exclusively in
connection with its business operations and for the purpose for which the Equipment and Facilities
was designed and intended; and (c) without Lessor’s prior written consent, not move the Equipment
and Facilities from the Equipment and Facilities Location. If

 

 

Lessor supplies Lessee with labels stating that the Equipment and Facilities is owned by Lessor,
Lessee shall affix such labels to the Equipment and Facilities pursuant to Lessor’s instructions.

     10. ACCESS; MAINTENANCE; INSPECTION; ALTERATIONS. Lessee shall have Unfettered Access to the
Equipment and Facilities. At its own expense, Lessee shall: (a) enter into and maintain a
maintenance agreement for the Equipment and Facilities with the manufacturer or other party
certified to maintain such Equipment and Facilities who is acceptable to Lessor; (b) maintain the
Equipment and Facilities in the same condition as when delivered, subject only to ordinary wear and
tear, and in good operating order and appearance; (c) make all alterations or additions to the
Equipment and Facilities that may be required or supplied by the Seller, the manufacturer,
applicable regulatory agencies, or which is otherwise legally necessary; and (d) make no other
alterations or additions to the Equipment and Facilities (except for alterations or additions that
will not impair the value or performance of the Equipment and Facilities and that are readily
removable without damage to the Equipment and Facilities). Any modifications, alterations, repairs,
or additions that Lessee makes to the Equipment and Facilities (except as permitted by Section
10(d) above) shall become Lessor’s property and shall also be deemed to be Equipment and
Facilities. Upon request, Lessor, or any party designated by Lessor, shall have the right to
inspect the Equipment and Facilities and Lessee’s applicable maintenance agreement and records at
any reasonable time.

     11. PERSONAL PROPERTY; LIENS AND ENCUMBRANCES; TITLE. The Equipment and Facilities shall at
all times remain personal property, notwithstanding that the Equipment and Facilities, or any part
thereof, may be (or becomes) affixed or attached to real property or any improvements thereon.
Except for the interest of Lessor, Lessee shall keep the Equipment and Facilities free and clear of
all levies, liens and encumbrances of any nature whatsoever. Except as expressly set forth in this
Agreement, the Equipment and Facilities shall at all times remain the property of Lessor and Lessee
shall have no right, title or interest therein.

     12. RISK OF LOSS. As between Lessor and Lessee, Lessee shall bear the entire risk of loss,
theft, destruction or damage to the Equipment and Facilities from any cause whatsoever or
requisition of the Equipment and Facilities by any governmental entity or the taking of title to
the Equipment and Facilities by eminent domain or otherwise (collectively, a “Loss”). Lessee shall
advise Lessor in writing within ten (10) days of any such Loss. Except as provided below, no such
Loss shall relieve Lessee of the obligation to pay Lessor Rental Payments and all other amounts
owed hereunder. In the event of any such Loss, Lessor, at its option, may: (a) if the Loss has not
materially impaired the Equipment and Facilities (in Lessor’s reasonable judgment), require Lessee,
upon Lessor’s demand, to place the Equipment and Facilities in good condition and repair reasonably
satisfactory to Lessor; or (b) if the Loss has materially impaired the Equipment and Facilities (in
Lessor’s reasonable judgment), require Lessee, upon
Lessor’s demand, to pay Lessor ***. Upon Lessor’s full receipt of such Lessor’s Return: (y) the applicable Schedule shall
terminate, and except as provided in Section 24, Lessee shall be relieved of all

 

 

obligations under the applicable Schedule; and (z) Lessor shall transfer all of its interest in the
Equipment and Facilities to Lessee “AS IS, WHERE IS,” and without any warranty, express or implied
from Lessor, other than the absence of any liens or claims by, through, or under Lessor.
Notwithstanding clause (b) in this Section 12, Lessor may, at its option, elect to have Lessee
continue Rental Payments under the applicable Schedule, without interruption, and replace the
damaged Equipment and Facilities with Equipment and Facilities of identical model, manufacturer and
condition (“Replacement Equipment and Facilities”), in which case Lessee shall cause the
Replacement Equipment and Facilities to be delivered to a location acceptable to Lessor and shall
convey title (lien free) to the Lessor whereupon the Replacement Equipment and Facilities shall be
subject to all of the terms and conditions of this Agreement and the applicable Schedule.

     13. NON-CANCELABLE NET LEASE. Except as provided in Section 5 hereof, all leases hereunder
shall be non-cancelable net leases, and Lessee agrees that it has an unconditional obligation to
pay all rental payments and other amounts when due. Lessee may abate or reduce rental payments or
any other amounts due, or may set off any charges against those amounts, provided, such abatement,
reduction or set off is for obligations between Lessor and Lessee. Lessee is not entitled to
recoupments, cross-claims, counterclaims or any other defenses to any rental payments or other
amounts due hereunder, whether those defenses arise out of claims by Lessee against Lessor, Seller,
this Agreement, any schedule or otherwise. Neither defects in Equipment and Facilities, damage to
it, nor its loss, destruction or late delivery, shall terminate this Agreement or any schedule, or
affect Lessee’s obligations hereunder. Unless Lessee’s obligation to pay rental payments and other
amounts has been terminated pursuant to the express terms of this Agreement, all rental payments
and other amounts shall continue to be due and payable hereunder.

     14. LESSOR DISCLAIMERS; LIMITATION OF REMEDIES. It is specifically understood and agreed that:
(a) Lessor shall not be deemed to have made any representation, warranty or promise made by Seller,
neither Seller nor Lessor shall act as, or be deemed to be, an agent of the other, and Lessor shall
not be bound by, or liable for, any representation or promise made by Seller; (b) Lessor shall not
be liable for any failure of any Equipment and Facilities or any delay in its delivery or
installation; (c) Lessor shall not be liable for any breach of any warranty that Seller may have
made; (d) Lessee has selected all Equipment and Facilities; (e) Lessor is not a manufacturer of any
Equipment and Facilities; and (f) the Equipment and Facilities are provided by Lessor “AS-IS”
without any warranties of any kind from Lessor and Lessor has not made and does not now make any
representation or warranty, express or implied, with respect to the design, compliance with
specifications, operation, or condition of any Equipment and Facilities (or any part thereof), the
merchantability or fitness of Equipment and Facilities for a particular purpose, or issues
regarding patent infringement, title and the like. It is further agreed that Lessor shall have no
liability to Lessee, Lessee’s customers, or any third parties for any direct, indirect, special,
punitive, treble, or consequential damages arising out of this Agreement or any schedule or
concerning any Equipment and Facilities, or for any damages based on strict or absolute tort
liability; provided, however, that nothing in this Agreement shall deprive Lessee of any
rights it may have against any person other than Lessor. Lessee shall look solely to Seller for any
and all claims and warranties relating to the Equipment and Facilities. Lessor hereby assigns to
Lessee for the term of the applicable schedule the right to enforce, provided no Event of Default
then exists under this Agreement and such enforcement is pursued in Lessee’s name, any
representations, warranties and agreements made by Seller pursuant to the purchase documents, and
Lessee may retain any

 

 

recovery resulting from any such enforcement efforts. To the extent permitted by applicable law,
Lessee waives any and all rights and remedies conferred upon a Lessee by Article 2a of the UCC and
any rights now or hereinafter conferred by statute or otherwise that may limit or modify Lessor’s
rights as described in this section or other sections of this Agreement. In the event of any breach
of any warranty or obligation under this Agreement, Lessee’s sole remedy shall be for Lessor to
reperform the obligation hereunder. LESSEE’S SOLE REMEDIES AGAINST LESSOR OR LESSOR’S SUPPLIERS FOR
LOSS OR DAMAGE RESULTING FROM, ARISING IN CONNECTION WITH, OR CAUSED BY, EITHER DIRECTLY OR
INDIRECTLY, DEFECTIVE ITEMS OF EQUIPMENT OR FACILITIES, OR PARTIAL OR TOTAL FAILURE OF THE
EQUIPMENT OR FACILITIES REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING BUT
NOT LIMITED TO NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, SHALL BE LESSEE’S RIGHT TO RECEIVE THE
SELLER’S REPAIR OR REPLACEMENT SERVICE DESCRIBED IN ITS LIMITED WARRANTY. The foregoing shall be
Lessee’s sole and exclusive remedies at law or in equity, except for Lessee’s right to claim
damages for bodily injury to any person caused by the negligence of Lessor. The parties further
agree that the foregoing allocation of risk shall, in the event of Seller’s inability, despite good
faith efforts, to meet its warranty obligations hereunder, remain in effect regardless of whether
the exclusive remedies provided for under this Section 14 then satisfy the essential purposes for
which they were intended, or otherwise provide Lessee with a fair quantum of relief.

     15. LESSEE WARRANTIES. Lessee represents, warrants and covenants to Lessor that: (a)
Lessee is duly organized, validly existing and in good standing under applicable law; (b) Lessee
has the power and authority to enter into this Agreement, all Schedules and all other related
instruments or documents hereunder (collectively, the “Fundamental Agreements”); (c) such
Fundamental Agreements are enforceable against Lessee in accordance with their terms and do not
violate or create a default under any instrument or agreement binding on Lessee; (d) there are no
pending or threatened actions or proceedings before any court or administrative agency that would
have a material adverse effect on Lessee or any Fundamental Agreement, unless such actions are
disclosed to Lessor and consented to in writing by Lessor; (e) Lessee shall comply in all material
respects with all Federal, state and municipal laws and regulations the violation of which could
have a material adverse effect upon the Equipment and Facilities or Lessee’s performance of its
obligations under any Fundamental Agreement; (f) Lessee shall obtain all governmental approvals
necessary for it to enter into and perform each Fundamental Agreement; (g) each Fundamental
Agreement shall be effective against all creditors of Lessee under applicable law, including
fraudulent conveyance and bulk transfer laws, and shall raise no presumption of fraud; (h)
financial statements and other related information furnished by Lessee shall be prepared in
accordance with generally accepted accounting principles and shall present Lessee’s financial
position as of the dates given on such statements; (i) Lessee shall furnish Lessor with its
certified financial statements, opinions of counsel, resolutions, and such other information and
documents as Lessor may reasonably request; (j) all Equipment and Facilities is leased for business
purposes only, and not for personal, family or household purposes; and (k) all Equipment and
Facilities is tangible personal property and shall not become a fixture or real property under
Lessee’s use thereof. Lessee shall be deemed to have reaffirmed the foregoing warranties each time
it executes any Fundamental Agreement.

 

 

     16. GENERAL INDEMNITY. Lessee shall indemnify, hold harmless, and, if so requested by Lessor,
defend Lessor against all claims (“Claims”) directly or indirectly arising out of or connected with
the Equipment and Facilities or any Fundamental Agreement. Claims refers to all losses,
liabilities, damages, penalties, expenses (including legal fees and costs), claims, actions, and
suits, whether based on a theory of strict liability of Lessor or otherwise, and includes, but is
not limited to, matters regarding: (a) the selection, manufacture, purchase, acceptance, rejection,
ownership, delivery, lease, possession, maintenance, use, condition, return or operation of the
Equipment and Facilities; (b) any latent defects or other defects in any Equipment and Facilities,
whether or not discoverable by Lessor or by Lessee; (c) any patent, trademark, or copyright
infringement; and (d) the condition of any Equipment and Facilities arising or existing during
Lessee’s use.

     17. SURRENDER; EXTENSION OF TERM. Unless Lessee purchases the Equipment and Facilities or
renews the Term pursuant to the applicable Schedule, or acquires the Equipment and Facilities
pursuant to Section 12 hereof, Lessee shall, at its expense, deinstall, inspect and properly pack
the Equipment and Facilities, and return the Equipment and Facilities at the expiration of the
Term, free of all liens and rights of others, by delivering it on board such common carrier as
Lessor may specify with freight prepaid to any destination within the United States of America
specified by Lessor. The Equipment and Facilities shall be accompanied by an original copy of the
relocation inventory or other applicable form completed by the agent performing the deinstallation.
If Lessor so requests, Lessor and its agents shall have the right to enter upon any premises where
Equipment and Facilities may be located at a reasonable time to perform any of Lessee’s tasks noted
above in this Section 17, and Lessee shall reimburse Lessor for all costs and expenses Lessor
incurs in fulfilling such tasks. Lessee agrees that the Equipment and Facilities, when returned to
Lessor, shall be in the same condition as when delivered to Lessee, reasonable wear and tear
excepted, and certified as being eligible for the manufacturer’s generally available maintenance
contract at then prevailing rates, without Lessor incurring any expense to repair, rehabilitate or
certify such Equipment and Facilities (Lessee shall be liable for all costs and expenses Lessor
incurs to place the Equipment and Facilities in such condition). If requested by Lessor, Lessee, at
its expense, shall store the Equipment and Facilities on its premises for a reasonable period, not
to exceed ten (10) business days during which period the Equipment and Facilities shall be subject
to all of the terms and conditions hereof, except for the obligation to make Rental Payments. In
all instances where Lessee is returning Equipment and Facilities to Lessor, Lessee shall give
Lessor written notice thereof in accordance with the terms of the applicable Schedule. If Lessee
fails to provide the aforementioned notice or return the Equipment and Facilities to Lessor in the
time and manner provided above, the Term shall be extended in accordance with the terms of the
applicable Schedule. If any Schedule is extended pursuant to the preceding sentence, Lessee shall
continue to pay the higher of the periodic Rental Payments in effect prior to the expiration of the
then existing term of the applicable Schedule (whether it be the Initial Term or any Renewal Term)
or such other periodic rental payment amount as is specified for such extension period in the
Schedule, and all other provisions of this Agreement shall continue to apply.

     18. EVENTS OF DEFAULT. Any of the following shall constitute an Event of Default under this
Agreement and all Schedules: (a) Lessee fails to pay any Rental Payment or any other amount payable
to Lessor hereunder within ten (10) days after its due date; or (b) Lessee fails to

 

 

perform or observe any other representation, warranty, covenant, condition or agreement to be
performed or observed by Lessee hereunder or in any other agreement with Lessor, or in any
agreement with any other person that in Lessor’s sole opinion is a material agreement, and Lessee
fails to cure any such breach within ten (10) days after notice thereof; or (c) any representation
or warranty made by Lessee hereunder, or in any other instrument provided to Lessor by Lessee,
proves to be incorrect in any material respect when made; or (d) Lessee makes an assignment for the
benefit of creditors, whether voluntary or involuntary; or (e) a proceeding under any bankruptcy,
reorganization, arrangement of debts, insolvency or receivership law is filed by or against Lessee
or Lessee takes any action to authorize any of the foregoing matters; or (f) Lessee becomes
insolvent or fails generally to pay its debts as they become due, the Equipment and Facilities are
levied against, seized or attached, or Lessee seeks to effectuate a bulk sale of Lessee’s inventory
or assets; or (g) Lessee voluntarily or involuntarily dissolves or is dissolved, or terminates or
is terminated; or (h) any guarantor under this Agreement is the subject of an event listed in
clauses (b) through (g) above; or (i) any letter of credit required pursuant to any Schedule is
breached, canceled, terminated or not renewed during the Term of any such Schedule.

     19. REMEDIES. If an Event of Default occurs, Lessor may, in its sole discretion, exercise one
or more of the following remedies: (a) terminate this Agreement or any or all Schedules; or (b)
take possession of, disable or render unusable, any Equipment and Facilities wherever the Equipment
and Facilities may be located, without demand or notice, without any court order or other process
of law and without liability to Lessee for any damages occasioned by such action, and no such
action shall constitute a termination of any Schedule; or (c) require Lessee to deliver the
Equipment and Facilities at a location designated by Lessor; or (d) declare the Lessor’s Return (as
defined in Section 12 hereof and calculated by Lessor as of the date of the Event of Default) for
each applicable Schedule due and payable as liquidated damages for loss of a bargain and not as a
penalty and in lieu of any further Rental Payments under the applicable Schedule; or (e) proceed by
court action to enforce performance by Lessee of any Schedule and/or to recover all damages and
expenses incurred by Lessor by reason of any Event of Default; or (f) terminate any other agreement
that Lessor may have with Lessee; or (g) exercise any rights available to Lessor under the Uniform
Computer Information Transactions Act (h) exercise any other right or remedy available to Lessor at
law or in equity. Also, Lessee shall pay Lessor all costs and expenses (including legal fees and
costs and fees of collection agencies) incurred by Lessor in enforcing any of the terms, conditions
or provisions of this Agreement. Upon repossession or surrender of any Equipment and Facilities ,
Lessor shall lease, sell or otherwise dispose of the Equipment and Facilities in a commercially
reasonable manner, with or without notice and at public or private sale, and apply the net proceeds
thereof (after deducting all expenses, including legal fees and costs, incurred in connection
therewith) to the amounts owed to Lessor hereunder; provided, however, that Lessee
shall remain liable to Lessor for any deficiency that remains after any sale or lease of such
Equipment and Facilities. Lessee agrees that with respect to any notice of a sale required by law
to be given ten (10) days’ notice shall constitute reasonable notice. These remedies are cumulative
of every other right or remedy given hereunder or now or hereafter existing at law or in equity or
by statute or otherwise, and may be enforced concurrently therewith or from time to time.

     20. LESSOR’S PERFORMANCE OF LESSEE’S OBLIGATIONS. If Lessee fails to perform any of its
obligations hereunder, Lessor may perform any act or make any payment that

 

 

Lessor deems reasonably necessary for the maintenance and preservation of the Equipment and
Facilities and Lessor’s interests therein; provided, however, that the performance
of any act or payment by Lessor shall not be deemed a waiver of, or release Lessee from, the
obligation at issue. All sums so paid by Lessor, together with expenses, including legal fees and
costs, incurred by Lessor in connection therewith, shall be paid to Lessor by Lessee immediately
upon demand.

     21. FINANCING OF ADDITIONS. If, under any Schedule, Lessee intends to make any addition to the
Equipment and Facilities, Lessee may, in writing, request Lessor to finance the costs of such
addition. Lessee shall provide Lessor with the terms under which it hopes to obtain the financing,
and upon receiving such a request Lessor shall determine, in its sole discretion, whether to
provide such financing. Lessor is under no obligation to make or finance additions to the Equipment
and Facilities.

     22. ASSIGNMENT BY LESSOR. Lessor shall have the unqualified right to assign, pledge, transfer,
mortgage or otherwise convey any of its interests hereunder or in any Schedule or any Equipment and
Facilities, in whole or in part, without notice to, or consent of, Lessee. If any Schedule is
assigned, Lessee shall: (a) unless otherwise specified by the Lessor and the assignee specified by
Lessor (the “Assignee”), pay all amounts due under the applicable Schedule to such Assignee,
notwithstanding any defense, setoff or counterclaim whatsoever that Lessee may have against Lessor
or Assignee; (b) not permit the applicable Schedule to be amended or the terms thereof waived
without the prior written consent of the Assignee; (c) not require the Assignee to perform any
obligations of Lessor, other than those that are expressly assumed in writing by such Assignee; and
(d) execute such acknowledgments thereto as may be requested by Lessor. It is further agreed that:
(x) each assignee shall be entitled to all of Lessor’s rights, powers and privileges under the
applicable Schedule, to the extent assigned; (y) any Assignee may reassign its rights and interest
under the applicable Schedule with the same force and effect as the assignment described herein;
and (z) any payments received by the Assignee from Lessee with respect to the assigned portion of
the Schedule shall, to the extent thereof, discharge the obligations of Lessee to Lessor with
respect to the assigned portion of the Schedule. Lessee acknowledges that any assignment or
transfer by Lessor or any assignee shall not materially change Lessee’s obligations under the
assigned schedule.

     23. ASSIGNMENT OR SUBLEASE BY LESSEE. Without Lessor’s prior written consent, Lessee shall not
assign this Agreement or any Schedule or assign its rights in or sublet the Equipment and
Facilities or any interest therein and any such assignment or sublease without Lessor’s consent
shall be void; provided, however, that Lessee may sublease or assign a Schedule to an affiliate or
a wholly-owned subsidiary of Lessee if: (a) Lessee and such sublessee or assignee execute and
deliver to Lessor a writing (to be provided by Lessor) whereby the sublessee or assignee agrees to
assume joint and several liability with Lessee for the full and prompt payment, observance and
performance when due of all of the obligations of the Lessee under such Schedule; and (b) Lessor
consents to such sublease or assignment, which consent shall not be unreasonably withheld. In no
event, however, shall any such sublease or assignment discharge or diminish any of Lessee’s
obligations to Lessor under such Schedule, nor shall Lessee move or relocate any of the Equipment
and Facilities, in whole or in part, without Lessor’s prior written consent, which consent may be
granted or withheld in Lessor’s sole discretion.

 

 

     24. SURVIVAL; QUIET ENJOYMENT. All representations, warranties and covenants made by Lessee
hereunder shall survive the termination of this Agreement and shall remain in full force and
effect. All of Lessor’s rights, privileges, and indemnities, to the extent they are fairly
attributable to events or conditions occurring or existing on or prior to the termination of this
Agreement, shall survive such termination and be enforceable by Lessor and any successors and
assigns. So long as no Event of Default exists, and no event has occurred and is continuing that
with notice or the lapse of time or both would constitute an Event of Default, neither Lessor nor
any Assignee will interfere with Lessee’s quiet enjoyment of the Equipment and Facilities.

     25. FILING FEES; FURTHER ASSURANCES; NOTICES. Lessee will promptly reimburse Lessor for any
filing or recordation fees or expenses (including lien search fees, legal fees and costs) incurred
by Lessor in perfecting or protecting its interests in the Equipment and Facilities and under this
Agreement. Lessee shall promptly execute and deliver to Lessor such documents and take such further
action as Lessor may from time to time reasonably request in order to carry out the intent and
purpose of this Agreement and to protect the rights and remedies of Lessor created or intended to
be created hereunder. All notices under this Agreement shall be sent to the respective party at its
address set forth on the front page of this Agreement or on the applicable Schedule or at such
other address as the parties may provide to each other in writing from time to time. Any such
notice mailed to said address shall be effective when deposited in the United States mail, duly
addressed and with first-class postage prepaid.

     26. WAIVER OF JURY TRIAL; SUCCESSORS. Lessee and Lessor each irrevocably waive all right to
trial by jury in any lawsuit, proceeding, counterclaim or any other litigation or proceeding upon,
arising out of, or related to, this Agreement, any other fundamental agreement, or the dealings or
relationship between or among Lessor, Lessee, Seller or any other person. This Agreement and all
Schedules inure to the benefit of and are binding upon the permitted successors or assigns of
Lessor and Lessee.

     27. NO WAIVER; LESSOR APPROVAL. Any failure of Lessor to require strict performance by Lessee,
or any written waiver by Lessor of any provision hereof, shall not constitute consent or waiver of
any other breach of the same or any other provision hereof. Neither this Agreement nor any other
Fundamental Agreement shall be binding upon Lessor unless and until executed by Lessor.

     28. CAPTIONS; COUNTERPARTS; LESSOR’S AFFILIATES. The captions contained in this Agreement are
for convenience only and shall not affect the interpretation of this Agreement. Only one
counterpart of the Schedule shall be marked “Original” (the “Original”), and all other counterparts
thereof shall be marked as, and shall be, duplicates. To the extent that any Schedule constitutes
chattel paper (as such term is defined in the Uniform Commercial Code in effect in any applicable
jurisdiction), no security interest in such Schedule may be created through the transfer or
possession of any counterpart other than the Original. Lessee understands and agrees that MetroPCS
Wireless, Inc. or any affiliate or subsidiary thereof, may, as Lessor, execute Schedules under this
Agreement, in which event the terms and conditions of the applicable Schedule and this Agreement as
it relates to the Lessor under such Schedule shall be binding upon and shall inure to the benefit
of such entity executing such Schedule as Lessor, as well as any successors or assigns of such
entity.

 

 

     29. CHOICE OF LAW; INTEGRATION; ENTIRE AGREEMENT. Each lease under this Agreement shall
be governed by the internal laws (as opposed to conflicts of law provisions) of the state of
Delaware. If any provision of this Agreement or such Schedule shall be prohibited by or invalid
under that law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Agreement or such Schedule. Lessor and Lessee consent to the jurisdiction of any local, state
or Federal court located within the State, and waive any objection relating to improper venue or
forum non conveniens to the conduct of any proceeding in any such court. This Agreement and all
other Fundamental Agreements executed by both Lessor and Lessee constitute the entire agreement
between Lessor and Lessee relating to the leasing of the Equipment and Facilities, and supersede
all prior agreements relating thereto, whether written or oral, and may not be amended or modified
except in a writing signed by the parties hereto.

[signature page to follow]

 

 

          IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the
___ day of                     , 200___.

	 	 	 	 	 	 	 	 	 	 	 
	ROYAL STREET	 	 	 	METROPCS WIRELESS, INC.	 	 
	COMMUNICATIONS, LLC	 	 	 	(Lessor)	 	 
	(Lessee)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	(Lessee Authorized Signature)	 	 	 	(Lessor Authorized Signature)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	(Type/Print Name)	 	 	 	(Type/Print Name)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	(Title)	 	 	 	(Title)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	(Date)	 	 	 	(Date)	 	 

 

 

APPENDIX B

Wholesale Services Fees

	1.	 	Rounding
	 
	 	 	Voice services call lengths will be measured on a per call
basis to the *** and the
aggregate number of minutes will be rounded to the next whole minute once every month.
Voice services calls will be rated at ***, and rounded to ***.
	 
	2.	 	Airtime Rates
	 
	 	 	Royal Street will charge MetroPCS *** set forth below for the
total minutes of *** voice PCS Service. The rates include domestic toll rates and any
applicable interconnection charges.

***

	3.	 	Minimum Volume
	 
	 	 	If by the end of the first *** term MetroPCS has not generated voice service
MOUs in any *** greater than or equal to *** of the engineered capacity of the
system during the peak usage period on the most heavily utilized cell site, then the
arrangement shall be converted for the following *** to a take or pay arrangement where
MetroPCS pays for *** of the engineered peak usage capacity regardless of its actual
traffic volumes.
	 
	 	 	If by the end of the second *** term MetroPCS has not generated voice service
MOUs in any *** greater than or equal to *** of the engineered capacity of the
system during the peak usage period on the most heavily utilized cell site, then the
arrangement shall be converted for the following *** to a take or pay arrangement where
MetroPCS pays for *** of the engineered peak usage capacity regardless of its actual
traffic volumes
	 
	 	 	If by the end of the third *** term MetroPCS has not generated voice service
MOUs in any *** greater than or equal to *** of the engineered capacity of the
system during the peak usage period on the most heavily utilized cell site, then the
arrangement shall be converted for the

 

 

	 	 	following *** to a take or pay arrangement where MetroPCS
pays for *** of the engineered
peak usage capacity regardless of its actual traffic volumes.
	 
	 	 	The Parties shall negotiate in good faith to agree upon the minimum volume for which
MetroPCS will pay inn order to meet the minimum percentages specified in this section. In
the absence of agreement, the minimum volume will be set utilizing the dispute resolution
procedures set forth in this Agreement.
	 
	4.	 	Included Features
	 
	 	 	Call Waiting

Three Way Calling

Caller ID

Caller ID Blocking

Basic Network Fraud Monitoring

Voicemail

Toll Blockingexv10w7

 

Exhibit 10.7

SECOND AMENDED AND RESTATED

CREDIT AGREEMENT

by and between

METROPCS WIRELESS, INC.

and

ROYAL STREET COMMUNICATIONS, LLC

 

			
	***	 	Where this marking appears throughout this Exhibit 10.7,
information has been omitted pursuant to a request for confidential
treatment and such information has been filed with the SEC separately.

 

 

SECOND AMENDED AND

RESTATED CREDIT AGREEMENT

     This Second Amended and Restated Credit Agreement (this “Credit
Agreement”) is executed on December 15,2005 (the “Amendment Effective Date”)
as of December 22, 2004, by and between MetroPCS Wireless, Inc., a Delaware
corporation (“Lender” or “MetroPCS”), and Royal Street Communications, LLC, a
Delaware limited liability company (“Borrower”).

RECITALS

     WHEREAS, Borrower and MetroPCS, Inc., a Delaware corporation (“Holdings”)
entered into that certain Credit Agreement dated as of December 22, 2004 (the
“Original Agreement”) and certain ancillary documents related thereto,
including a Promissory Note, Security Agreement and Pledge Agreement (the
“Original Ancillary Documents”);

     WHEREAS, Borrower and Holdings agreed to amend and restate the Original
Agreement pursuant to the terms and conditions of that certain Amended and
Restated Credit Agreement, dated as of January 24, 2005 (the “Existing Credit
Agreement”), and agreed to amend and restate the Original Ancillary Documents,
among other Loan Documents (as defined in each of the Original Agreement),
pursuant to the terms and conditions of the Loan Documents (as defined in the
Existing Credit Agreement);

     WHEREAS, pursuant to that certain Assignment and Assumption Agreement,
dated as of April 29, 2005 (the “Assignment Agreement”), Holdings assigned all
of its right, title and interest in and to the Loans (as defined in each of
the Original Agreement and the Existing Credit Agreement), the Original
Agreement, the Existing Credit Agreement and the other Loan Documents (as
defined in each of the Original Agreement and the Existing Credit Agreement)
to MetroPCS, and MetroPCS assumed all of the obligations of Holdings in
respect of the foregoing, thereby becoming the Lender (as defined in the each
of the Original Agreement and the Existing Credit Agreement) for all purposes
in respect of the Loans (as defined in each of the Original Agreement and the
Existing Credit Agreement), the Original Agreement, the Existing Credit
Agreement and the other Loan Documents (as defined in each of the Original
Agreement and the Existing Credit Agreement);

     WHEREAS, Borrower and MetroPCS desire to amend and restate the Existing
Credit Agreement to provide for, among other things, an increase in the Loan
Commitment Amount;

     WHEREAS, Borrower acknowledges and agrees that the security interest
granted to Lender pursuant to the Loan Documents (as defined in each of the
Original Agreement and the Existing Credit Agreement) shall remain outstanding
and in full force and effect, without interruption or impairment of any kind,
in accordance with their terms, as renewed, amended or restated pursuant to
the Loan Documents (as defined herein), and shall continue to secure (i) the
due and punctual payment of (A) the principal and interest (including interest
accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Note (as defined herein), when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, and (B) all other monetary obligations, including but not limited
to, fees, costs,

 

 

expenses and indemnities, whether primary, secondary, direct, contingent,
fixed or otherwise (including monetary obligations incurred during the
pendency of any bankruptcy, insolvency, receivership or other similar
proceeding regardless of whether allowed or allowable in such proceeding), of
Borrower under any of the Loan Documents (as defined herein), and (ii) the due
and punctual performance of all covenants, agreements, obligations and
liabilities of Borrower under or pursuant to the Loan Documents (as defined
herein). (The items in clauses (i) and (ii) are collectively the
“Obligations.”);

     WHEREAS, Borrower acknowledges and confirms that (i) the Obligations
represent, among other things, the amendment, restatement, and modification of all
indebtedness, liabilities, borrowings and advances arising in connection with
the Original Agreement, the Existing Credit Agreement and the other Loan
Documents (as defined in each of the Original Agreement and the Existing
Credit Agreement); (ii) all liens and encumbrances evidenced by the Loan
Documents (as defined in each of the Original Agreement and the Existing
Credit Agreement) are hereby ratified, confirmed and continued as modified,
amended or restated under the Loan Documents (as defined herein); (iii) this
Credit Agreement and the other Loan Documents (as defined herein) are intended
to restate, renew, extend, consolidate, amend and modify the Original
Agreement, the Existing Credit Agreement and the other Loan Documents (as
defined in each of the Original Agreement and the Existing Credit Agreement)
in their entirety; and (iv) this Credit Agreement and the other Loan Documents
(as defined herein) are not intended to constitute, and shall not constitute,
a novation and shall in no way adversely affect or impair the priority of the
liens granted in connection with the Original Agreement, the Existing Credit
Agreement and the other Loan Documents (as defined in each of the Original
Agreement and the Existing Credit Agreement).

     NOW THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereto agree to amend and restate the Existing Credit Agreement in
its entirety and further agree as follows:

Section 1: Defined Terms

     In addition to the terms defined elsewhere in this Credit Agreement, the
following terms shall have the following meanings in this Credit Agreement:

     “Affiliate” shall mean, with respect to a Person, any other Person
directly or indirectly Controlling, Controlled by or under Common Control with
such Person at any time during the period for which the determination of
affiliation is being made.

     “Applicable Law” shall mean, with respect to any Person, any federal,
state, local or foreign law, statute, ordinance, rule, regulation, Judgment,
order, injunction, decree, arbitration award, agency requirement, franchise,
license or permit of, or any interpretation or administration of any of the
foregoing by, any Governmental Entity, whether in effect as of the Effective
Date or thereafter, and in each case as amended, applicable to such Person or
its Affiliates or their respective assets.

-2-

 

     “Auction” shall mean that Broadband PCS Auction No. 58 conducted by the FCC as
described in Public Notice, DA-04-3005 (rel. Sept. 16, 2004), as the same may be rescheduled or
modified by the FCC.

     “Borrower” shall have the meaning set forth in the preamble hereto.

     “Borrower Change in Control Event” shall be deemed to have occurred if (i) there shall be
consummated, or if Borrower enters into any agreement which would result in (x) any consolidation
or merger of Borrower in which Borrower is not the continuing or surviving entity, other than a
merger of Borrower in which the holders of the equity securities of Borrower immediately prior to
the merger have the same proportionate ownership of the equity securities entitled to vote for
members of Borrower’s Board of Directors (or equivalent governing body) of the surviving entity
immediately after the merger, or (y) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all, or substantially all, of the assets of
Borrower or (ii) the members of Borrower approve any plan or proposal for the liquidation or
dissolution of Borrower.

     “Build-Out” shall mean the construction by the Borrower of a Commercial Mobile Radio Service
system in accordance with the FCC Rules, 47 C.F.R. § 24.203.

     “Business Day” shall mean a day other than (i) a Saturday or Sunday or (ii) a day on which
banking institutions are authorized or required by law or executive order to remain closed in New
York City.

     “Closing Date” shall mean each date on which Lender makes a Loan to Borrower.

     “Commercial Mobile Radio Service” or “CMRS” shall mean a commercial mobile radio service as
defined in 47 C.F.R. § 20.3.

     “Commitment Period”
 shall mean the period commencing on the Effective Date and expiring on the
earliest to occur of ***.

     “Control” (including the correlative meanings of the terms “Controlled by,” “Controlling” and
“under Common Control with”) as used with respect to any Person, shall

-3-

 

mean the possession, directly or indirectly, of the power to direct or cause
the direction of management policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

     “Credit Agreement” shall have the meaning set forth in the
preamble hereto.

     “Effective Date” shall mean December 22, 2004.

     “Equipment and Facilities Lease Agreement” means that certain Equipment
and Facilities Lease Agreement entered into between MetroPCS and Borrower, as
amended.

     “Event of Default” shall have the meaning set forth in Section 6.1.

     “FCC” means the Federal Communications Commission or any successor thereto.

     “FCC Rules” shall mean any applicable rules and regulations of the FCC.

     “Financing Statements” shall mean such UCC financing statements and
other instruments reasonably required by the Lender to create, perfect and/or
maintain the security interests granted under the Pledge Agreement and the
Security Agreement.

     “GAAP” shall mean United States generally accepted accounting
principles, as in effect from time to time.

     “Governmental Entity” shall mean any government or political subdivision
thereof, including without limitation, any regional or municipal authority,
any governmental department, ministry, commission, board, bureau, agency,
regulatory authority, instrumentality, judicial or administrative body,
having jurisdiction over the matter or matters in question.

     “GWI” shall mean GWIPCS1, Inc., a Delaware corporation.

     “Holdings” shall have the meaning set forth in the
preamble hereto.

     “Holding Subsidiary” shall mean a corporation or LLC formed under the
laws of the State of Delaware, all of the capital stock or LLC units of which
shall be owned by Borrower, which corporation or LLC shall have as its sole
purpose to hold the License(s) and assets in a given Market (as such term is
defined in the LLC Agreement) to be used by Borrower in connection with the
Royal Street System in such Market.

     “Judgment” shall mean any judgment, writ, order, injunction, award or
decree of any court, judge, justice or magistrate, including any bankruptcy
court or arbiter, and any order of or by any other Governmental Entity.

     “Lease” shall mean any license, easement or other agreement pursuant to
which Borrower acquires rights to possess, occupy and/or use real property,
including without limitation as a tenant, licensee or beneficiary of an
easement.

-4-

 

     “Leasehold Mortgages” shall mean one or more leasehold mortgages in
substantially the form attached hereto as Exhibit D, or such other
documentation reasonably required by Lender from time to time to ensure that
Lender shall have a first priority lien on all Leases and other real property
interests of Borrower.

     “Lender” shall have the meaning set forth in the preamble hereto.

     “Lender Credit Facility” shall mean any loan commitment, and credit,
loan, or other agreement, entered into by Lender or any Affiliate of Lender
and a third party wherein such third party loans to Lender, and Lender borrows
from such third party, funds or other monies which are used to make Loans to
Borrower.

     “License” shall mean any license issued by the FCC for which Borrower or
a Holding Subsidiary is a Successful Bidder or any other license issued by the
FCC now or hereafter held by the Borrower or a Holding Subsidiary.

     “Litigation” shall mean any claim, action, suit, proceeding, arbitration,
investigation, hearing or other activity or procedure that could result in a
Judgment, and any notice of any of the foregoing.

     “LLC Agreement” shall mean the Amended and Restated Limited Liability
Company Agreement of Royal Street Communications, LLC by and among GWI,
MetroPCS and C9 Wireless, LLC, a Delaware limited liability company, executed
on December 15, 2005 as of November 24, 2004, as amended from time to time.

     “Loan Commitment Amount” shall mean the amount of the Loans needed to
permit Borrower to acquire the Licenses and to construct and operate the Royal
Street System, provided, however, that (i) in no event shall the Loan be less
than $293,599,250; and (ii) in no event shall any Loan over and above
$293,599,250 exceed the lesser of $50,000,000 or the maximum amount in excess
of $293,599,250 that Lender is permitted to lend to Borrower pursuant to the
Lender Credit Facility.

     “Loan Documents” shall mean this Credit Agreement, the Note, the Security
Agreement, the Pledge Agreement and any separate written agreement entered
into between the Borrower and Lender or any agent of Lender, and all other
agreements, instruments, certificates and other documents at any time executed
and delivered pursuant to or in connection herewith or therewith, as the same
may be supplemented, amended or otherwise modified from time to time after the
Amendment Effective Date. Notwithstanding the foregoing, the Loan Documents
shall not include the LLC Agreement, the Services Agreement or any agreement,
instrument, certificate or other document at any time executed and delivered
pursuant to or in connection with the LLC Agreement or the Services Agreement
as the same may be supplemented, amended or otherwise modified from time to
time after the Amendment Effective Date.

     “Loan Repayment Commencement Date” shall mean, with respect to the Note,
the earlier to occur of (i) the Substantial Completion Date or (ii) the date
on which the Services Agreement has been terminated (other than by Borrower in
accordance with its terms due to a default by MetroPCS) with respect to the
Borrower.

-5-

 

     “Loans” shall mean the loans to Borrower evidenced by the Note, not to
exceed the Loan Commitment Amount. Each advance made under the Note is a Loan.

     “Mandatory Prepayment Date” shall mean the date on which Borrower
receives a Refund of all funds (less any amounts retained by the FCC)
deposited by Borrower with the FCC for the purpose of permitting Borrower to
participate in the Auction if (i) Borrower is not the Successful Bidder for
any License or (ii) Borrower is the Successful Bidder for Licenses and the FCC
does not grant to Borrower at least one License for which Borrower was a
Successful Bidder as a result of the disposition of any appeals of FCC actions
or any judicial decisions, whether relating to appeals from FCC decisions or
otherwise, affecting the authorizations being auctioned in the Auction.

     “Material Adverse Effect” shall mean a material adverse effect on the
business, properties, assets, liabilities, prospects or condition (financial
or otherwise) of the Borrower or any of its Subsidiaries.

     “Maturity Date”
 shall mean with respect to all Loans made to the
Borrower, the date that is ***.

     “MetroPCS”
shall have the meaning set forth in the preamble hereto.

     “Note” shall mean that certain Amended and Restated Promissory Note
executed on December 15, 2005 as of December 22, 2004 in the form attached hereto as
Exhibit A, executed by Borrower in favor of Lender and delivered by Borrower
to Lender in accordance with the terms of this Credit Agreement.

     “Permitted Liens” shall mean (i) any and all liens and security interests
created pursuant to any of the Loan Documents, (ii) liens for taxes, fees,
assessments and governmental charges not delinquent or which are being
contested in good faith by appropriate proceedings; provided, however, that
the Borrower shall have set aside on its books and shall maintain adequate
reserves for the payment of same in conformity with GAAP, (iii) liens,
deposits or pledges made to secure statutory obligations, surety or appeal
bonds, or bonds for the release of attachments or for stay of execution, or to
secure the performance of bids, tenders, contracts (other than for the payment
of borrowed money), leases or for purposes of like general nature in the
ordinary course of business, (iv) purchase money liens on tangible personal
property in the nature of office equipment utilized in the normal operation of
the business of Borrower, (v) liens for indebtedness permitted under the terms
of Section 5.10(b), so long as such liens (a) are subject to and subordinate
in all respects to the liens and security interests created pursuant to any of
the Loan Documents and (b) would not have a material adverse effect on the
Lender’s ability to realize on the full value of the collateral upon the
occurrence of an Event of Default and (vi) liens for indebtedness permitted
under the terms of Section 5.10(c); provided, however, that “Permitted
Liens” shall in all events include a first priority purchase money security
interest in telecommunication equipment purchased by Borrower as a result of
Lender’s or its Affiliates’ breach under this Credit Agreement or the
Equipment and Facilities Lease Agreement.

-6-

 

     “Person” shall mean any natural person, corporation, firm,
unincorporated organization, association, partnership, limited liability
company, business trust, joint stock company, joint venture organization,
entity or business of any kind.

     “Pledge Agreement” shall mean the Amended and Restated Pledge Agreement
executed on December 15, 2005 as of December 22, 2004 in substantially the
form attached hereto as Exhibit F pursuant to which the Borrower shall pledge
to Lender all of the membership interests or other equity interests in its
respective Holding Subsidiaries as security for the repayment of the
Borrower’s obligations under the Loan Documents.

     “Refund” shall be any amounts that Borrower paid in accordance with FCC
Rules to become eligible to participate in the Auction and that thereafter are
refunded to Borrower.

     “Refund Date” shall mean the date on which the Borrower receives a Refund
other than by reason of the fact that (i) Borrower is not the Successful
Bidder for any License or (ii) Borrower is the Successful Bidder for Licenses
and the FCC does not grant to Borrower at least one License for which Borrower
was a Successful Bidder as a result of the disposition of any appeals of FCC
actions or any judicial decisions, whether relating to appeals from FCC
decisions or otherwise, affecting the authorizations being auctioned in the
Auction.

     “Required Capital Contributions” the capital contributions required to be
made to Borrower by the Members of Borrower pursuant to Section 9.1 (a) of the
LLC Agreement.

     “Royal Street System” shall mean the Commercial Mobile Radio Service
system(s) operated pursuant to the Licenses.

     “Security Agreement” shall mean the Amended and Restated Security
Agreement executed on December 15, 2005 as of December 22, 2004 by and
between Borrower and Lender in substantially the form attached hereto as
Exhibit B.

     “Services Agreement” shall mean the Amended and Restated Services
Agreement, executed on December 15, 2005 as of November 24, 2004, by and
between Borrower and MetroPCS, as amended from time to time.

     “Subsidiary” shall mean, with respect to any legal entity, any other
corporation, limited liability company, general or limited partnership,
limited liability partnership, joint venture, trust or other entity of which
the outstanding capital stock possessing a majority of voting power in the
election of directors or their equivalent is owned or controlled by such
entity, directly or indirectly.

     “Subsidiary Security Agreement” shall mean the Security Agreement by and
between each Holding Subsidiary and Lender in substantially the form attached
hereto as Exhibit B.

     “Substantial Completion Date” shall mean the date on which the Build-Out
of the Royal Street System satisfies the construction requirements of Section
24.203 of the FCC Rules.

-7-

 

     “Successful Bidder” shall mean an entity that is awarded one or
more Licenses in the Auction by the FCC and successfully qualifies to be a
licensee for such Licenses under applicable FCC Rules.

Section 2: Terms of Loan

     2.1 The Loans.

     Subject to the terms and conditions and in reliance upon the
representations and warranties set forth in this Credit Agreement and the
other Loan Documents, Lender agrees to make Loans to the Borrower from time to
time during the Commitment Period in a principal amount not to exceed, at any
time outstanding, the Loan Commitment Amount. Notwithstanding anything
contained herein to the contrary, in no event shall Lender be required to make
Loans to Borrower where such Loans would violate any covenants,
representations, warranties, or other terms and conditions of any Lender
Credit Facility.

     2.2 Procedure for Borrowing.

          a. Subject to the terms and conditions set forth in this Credit Agreement,
the
Lender shall advance to Borrower the amount of any Loan requested by
Borrower to pay for the
costs of acquiring Licenses for which Borrower is the Successful Bidder up
to the Loan
Commitment Amount. Borrower shall use the proceeds of any Loan made
pursuant to this
Section 2.2(a) for the purpose of timely making any such payments in
accordance with FCC
Rules.

          b. Subject to the terms and conditions set forth in this Credit Agreement,
after
the Borrower is designated by the FCC by a Public Notice as the high bidder
on any license or
licenses offered for sale in Auction No.58, the Borrower or any Holding
Subsidiary may from
time to time, but no more than once each quarter, borrow any undrawn
portion of the Loan
Commitment Amount under this Credit Agreement during the Commitment Period
by giving
notice to the Lender specifying the amount to be borrowed and the purpose
therefore. Any Loan
made pursuant to this Section 2.2(b) may be used only for (i) the Build-Out
and operation of the
Royal Street System, or (ii) for any expenses related thereto, as
contemplated by the LLC
Agreement and the Services Agreement. Lender shall advance to Borrower
or Holding
Subsidiary, as the case may be, (i) up to Twenty-Five Million Dollars
($25,000,000) once each
quarter until the designation of Borrower as the Successful Bidder on the
Licenses; and, (ii) after
the Licenses are granted to Borrower by the FCC, the amount of any Loan
requested by
Borrower or Holding Subsidiary up to the amount budgeted in Borrower’s
Annual Budget for the
succeeding three (3) month period in immediately available funds within
five (5) Business Days
following the date of such written request, provided that Borrower or
Holding Subsidiary, as the
case may be, shall have delivered to Lender evidence reasonably
satisfactory to Lender that the
proceeds of such Loan will be applied in accordance with the LLC Agreement.
No Loan shall be
made to Borrower or Holding Subsidiary if the making of such Loan would
cause the aggregate
principal amount outstanding hereunder to exceed the Loan Commitment Amount
or violate the
Lender Credit Facility. Each Loan made hereunder, including each Loan
made pursuant to
Sections 2.2(a) and 2.2(b) hereof, shall be deemed to be part of, borrowed
and drawn under, and
subject to the terms of, the Note.

-8-

 

          c. The Lender’s obligation to make Loans to Borrower shall
terminate upon the
earliest to occur of (i) expiration of the Commitment Period, (ii) the
date on which neither
MetroPCS nor any of its Affiliates is a Member of Borrower, (ii) the sale
of all or substantially
all of Borrower’s assets or (iv) the Mandatory Prepayment Date.

          d. The Borrower may at any time and from time to time prepay the Loans, in
whole or in part but limited to increments of no less than $25,000 per
prepayment, without
premium or penalty, upon at least three (3) Business Days’ advance notice
to Lender, specifying
the date and amount of prepayment. If any such notice is given, the
amount specified in such
notice, together with accrued interest to the date of such prepayment on
the amount prepaid, shall
be due and payable on the date specified therein. Amounts prepaid or
repaid may not be
reborrowed. Partial or total prepayments of the Loans shall be credited
first to any charges or
other amounts due to Lender under the terms of this Credit Agreement, then
to accrued interest
due and payable on the Loans, then to the principal balance outstanding.

          e. Within three (3) Business Days after the Mandatory Prepayment Date,
Borrower shall prepay to Lender the entire principal amount of the Loans.
Borrower shall have
no obligation to pay any unpaid accrued interest on the Mandatory
Prepayment Date.

          f. Within three (3) Business Days after the Refund Date, Borrower shall
prepay
to Lender the entire amount of any Refund, up to the aggregate principal
amount of all Loans
previously made to Borrower hereunder.

          g. In the event that Borrower receives a Refund from the FCC with respect
to the
Auction, Borrower shall, within three (3) Business Days of receipt of such
Refund, make a
prepayment under this Credit Agreement in an amount equal the principal
amount of the Loans
outstanding under this Credit Agreement as of such date less the aggregate
amount of payments
already made and still owed to the FCC with respect the Licenses for which
Borrower was a
Successful Bidder.

     2.3 Interest Rates and Payments.

          a. Interest shall accrue on the aggregate principal balance from time to
time
outstanding hereunder at a rate equal to 11% per annum, compounded
quarterly commencing on
the last day of the first calendar quarter following the Effective Date.
Interest shall be computed
on the basis of a year with three hundred sixty (360) days, and the actual
number of days elapsed.

          b. All payments by the Borrower hereunder and under the Loan Documents
shall
be made to the Lender, at its address as set forth in Section 7.10 in
immediately available funds
on the date on which such payment shall be due.

          c. Until the Loan Repayment Commencement Date, all interest accrued on the
aggregate outstanding principal balance of the Loans shall be added to and
become a part of the
outstanding principal amount of the Loans on and as of the last day of
each calendar quarter.

          d. Commencing on the Loan Repayment Commencement Date, Borrower shall
make equal monthly consecutive payments to Lender in an amount sufficient
to fully amortize
the outstanding principal balance of the Loans, all interest accrued
thereon, and all other amounts

-9-

 

then due and owing under this Credit Agreement, the Note or any of the
other Loan Documents from such date until the Maturity Date.

             e. As long as any payment due under this Credit Agreement, the Note, or
any of the other Loan Documents remains past due (whether at the stated
maturity, by acceleration or otherwise) for five (5) days or more, such
overdue amount shall accrue interest from the earlier of the due date of such
payment due at a rate equal to eighteen percent (18%) per annum, in each case
from the date of such non-payment until such overdue amount is paid in full
(whether after or before judgment).

     2.4 Conditions Precedent to Lender’s Obligation to Make Any Loan.

             a. Lender shall not be required to make any Loan to Borrower under this
Credit Agreement unless as of the applicable Closing Date, each of the
following conditions has been satisfied to Lender’s satisfaction:

	 	(i)	 	Borrower shall have executed and delivered to
Lender the Note, the Security Agreement and the Pledge Agreement;
	 
	 	(ii)	 	Borrower shall have executed and delivered such
Financing Statements and other instruments required by the Lender
to create, perfect and/or maintain the security interests created
pursuant to the Pledge Agreement and the Security Agreement;
	 
	 	(iii)	 	Lender shall have a perfected first priority
security interest in all of the membership interests in Borrower’s
Holding Subsidiaries;
	 
	 	(iv)	 	Lender shall have received evidence satisfactory to
it that the Financing Statements and other instruments delivered
to the Lender have been filed in all appropriate filing offices
and that such filed Financing Statements perfect first priority
security interests, subject to any Permitted Lien, in favor of the
Lender in the property described therein;
	 
	 	(v)	 	Lender shall have received customary reports of
searches of filings made with government agencies showing that
there are no liens on the assets of the Borrower other than the
Permitted Liens;
	 
	 	(vi)	 	Lender shall have received from Borrower’s counsel
(which counsel shall be reasonably acceptable to Lender) such
legal opinions as to such customary matters (including without
limitation, enforceability, due authorization, execution and
delivery, but not as to FCC regulatory matters) as Lender shall
reasonably request;
	 
	 	(vii)	 	Borrower shall have delivered to Lender an
officer’s certificate signed by an officer of Borrower certifying
that as of such Closing Date:

	 	(A)	 	The representations and warranties of
Borrower contained in Section 4 are true and correct in all
material respects at and as of the Closing Date as though
then made;

-10-

 

	 	(B)	 	Borrower is in full compliance with the covenants set forth in
Section 5;
	 
	 	(C)	 	Borrower has taken all action necessary
to authorize it to incur the Loan,
such Loan is permitted under the terms of the LLC Agreement,
and such
Loan does not conflict with or result in a breach of the
terms, conditions or
provisions of, or constitute a default under, the LLC
Agreement or any
other agreement to which Borrower is a party or to which any
assets of
Borrower may be bound;
	 
	 	(D)	 	No Event of Default (or other event which
if not timely cured or corrected
would, with the passage of time, become an Event of Default)
shall have
occurred or be continuing;
	 
	 	(E)	 	No Litigation is pending against Borrower
which would reasonably be
expected to result in any Borrower Material Adverse Effect;
and
	 
	 	(F)	 	All consents required to be received in
connection with the Loan from any
Governmental Entity or other Person shall have been received.

	 	(viii)	 	Borrower shall have delivered to Lender a written certification
of the uses to which the borrowed funds will be put, which uses
shall be in accordance with (A) this Credit Agreement; and, (B)
after the grant of the Licenses by the FCC to Borrower, the Annual
Budget, the Construction Plan, and Annual Business Plan as approved
by the Royal Street Management Committee pursuant to the Services
Agreement; and
	 
	 	(ix)	 	such other documents relating to the Loan as Lender may
reasonably request.

     2.5    Security Agreement; Leasehold Mortgages.

              a. The Loans and all amounts outstanding from time to time under the
Loan Documents shall be secured by:

	 	(i)	 	A first priority security interest (subject to the
Permitted Liens) in all tangible and intangible property and assets
of Borrower, including, but not limited to, chattel paper, general
intangibles, instruments, documents and all other rights relating
to or arising out of such accounts, and all inventory, equipment
and fixtures wherever located, now owned or acquired in the future
by the Borrower, all Licenses (but solely only to the extent if any
permitted by Applicable Law), and all proceeds and products of such
property. The Lender’s security interest in the foregoing shall be
created by and subject to the provisions of the Security Agreement.
	 
	 	(ii)	 	A first priority security interest in the membership
interests in each Holding Subsidiary of Borrower. The Lender’s
security interest in the foregoing shall be created by and subject
to the provisions of the Pledge Agreement.

-11-

 

	 	(iii)	 	A first priority lien on all real property interests
of Borrower, including without limitation all Leases, including
capital leases, and all real property owned by Borrower in fee
simple. The Lender’s liens in the foregoing shall be created by
and subject to the provisions of one or more Leasehold Mortgages,
substantially in the form of Exhibit D, entered with respect to
each Lease, parcel of real property or other real property
interest.

	 	(iv)	 	A first priority lien on all proceeds of all
Licenses (whether from the sale or other disposition thereof or
otherwise) held by any Holding Subsidiary and, solely to the extent
if any permitted by Applicable Law, all such Licenses. The Lender’s
security interest in the foregoing shall be created by and subject
to the provisions of the Security Agreement, and where applicable,
the Subsidiary Security Agreement.

     Section 3: Representations and Warranties of Lender

     Lender hereby represents and warrants to Borrower as follows:

     3.1 Organization and Standing.

     Lender is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite power
and authority to execute and deliver this Credit Agreement and to perform its
obligations hereunder.

     3.2 Authorization by Lender.

          a. This Credit Agreement has been duly and validly executed and delivered
by
Lender and constitutes the legal, valid and binding obligation of Lender
enforceable against
Lender in accordance with its terms, except as such enforceability may be
limited by (i)
bankruptcy, insolvency or other similar laws affecting the enforcement of
creditors’ rights
generally or (ii) general principles of equity.

          b. Neither the execution, delivery or performance of this Credit Agreement
by
Lender nor the consummation by Lender of the transactions contemplated
herein will, with or
without the giving of notice or the lapse of time, or both, (i) violate
any Applicable Laws to
which Lender is subject, (ii) conflict with or result in a breach of the
terms, conditions or
provisions of, or constitute a default under, the articles of
incorporation or bylaws of Lender or
any material agreement or commitment to which Lender is a party or by
which Lender or any of
Lender’s assets, may be bound or affected, or (iii) except with respect to
the exercise of certain
of Lender’s remedies under the Loan Documents, require Lender to obtain
any authorization,
consent, approval or waiver from, or to make any filing with, any
Governmental Entity or non-governmental third party other than those that have been made as of the
Effective Date.

     3.3 Litigation.

     There is no Litigation pending against Lender, or, to the knowledge of
Lender, a basis for Litigation or threatened Litigation against Lender which
seeks to enjoin or obtain damages in respect of the consummation of the
transactions contemplated hereby.

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Section 4: Representations and Warranties of Borrower

     Borrower hereby represents and warrants to Lender as follows:

     4.1 Organization and Standing of Borrower.

     Borrower is a limited liability company duly organized, validly existing
and in good standing under the laws of the State of Delaware with all
requisite power and authority to own its properties, and conduct its business
as now being conducted, and is duly qualified to do business as a foreign
limited liability company in good standing in each jurisdiction where the
ownership of its properties or the conduct of its business makes such
qualification necessary, except in those jurisdictions where failure so to
qualify will not permanently impair title to a material amount of its
properties, permits or licenses or its rights to enforce in all material
respects contracts against others or expose it to substantial liabilities in
such jurisdictions.

     4.2 Authorization by Borrower; Consents.

          a. Borrower has all requisite power and authority to execute, deliver and
perform
its obligations under this Credit Agreement, the Note and all other Loan
Documents to which it
is a party. Borrower has taken all action necessary to authorize this
Credit Agreement, the Note
and all other Loan Documents to which it is a party, and all such documents
have been duly
authorized, executed and delivered by Borrower and are legal, valid and
binding obligations of
Borrower enforceable in accordance with their terms, except as such
enforceability may be
limited by (i) bankruptcy, insolvency or other similar laws affecting the
enforcement of
creditors’ rights generally or (ii) general principles of equity.

          b. Neither the execution, delivery and performance of this Credit
Agreement, the
Note or the other Loan Documents by Borrower nor the consummation by
Borrower of the
transactions contemplated herein or therein will, with or without the
giving of notice or the lapse
of time, or both, (i) violate any Applicable Laws to which Borrower is
subject, (ii) conflict with
or result in a breach of the terms, conditions or provisions of, or
constitute a default under, the
LLC Agreement, any license or permit of Borrower or any material contract
to which Borrower
is a party or by which Borrower may be bound or affected, or (iii) except
with respect to the
exercise of certain of Lender’s remedies under the Loan Documents, require
Borrower to obtain
any authorization, consent, approval or waiver from, or to make any filing
with, any
Governmental Entity or non-governmental third party.

     4.3 Litigation.

     There is no Litigation pending against Borrower, or, to the knowledge of
Borrower, a basis for Litigation or threatened Litigation against Borrower
which (a) seeks to enjoin or obtain damages in respect of the consummation of
the transactions contemplated hereby or (b) has or could have a Material
Adverse Effect on the Borrower.

-13-

 

     4.4 Compliance with Applicable Laws.

     Borrower has complied and presently is in compliance with all Applicable
Laws except to the extent that failure to comply with the same does not or
will not have a Material Adverse Effect on the Borrower.

     4.5 Subsidiaries.

     Except for any Holding Subsidiaries of Borrower, Borrower has no Subsidiaries.

     4.6 Absence of Defaults.

     Neither the Borrower nor any Subsidiary of Borrower is in material
default under or in material violation in the performance, observance or
fulfillment of any of the obligations, covenants or conditions contained in
any provision of its constitutive documents or contained in any other
agreement or instrument to which it is a party or by which it is bound or to
which any of its properties is subject, and neither Borrower nor any
Subsidiary of Borrower is in material violation of any statute, order, rule or
regulation of any court or governmental agency or body having jurisdiction
over it or any of its properties.

     4.7 Indebtedness.

     As of the Effective Date, Borrower has no indebtedness outstanding except
the indebtedness permitted pursuant to the terms of this Credit Agreement, and
obligations under the Loan Documents; none of such indebtedness is in default.

     4.8 Accuracy and Completeness of Information.

     No representation or warranty of the Borrower contained in this Credit
Agreement or the other Loan Documents contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements contained herein or therein not materially misleading. There is no
fact known to the Borrower which materially adversely affects its business,
operations, property, assets or condition (financial or otherwise) which has
not been disclosed herein or in such other documents, certificates and
statements furnished to the Lender for use in connection with the transactions
contemplated hereby.

Section 5: Covenants of Borrower

     Borrower hereby covenants and agrees with Lender as follows:

     5.1 Use of Proceeds.

     Borrower shall use 100% of the Loan proceeds solely for the following
purposes: (i) to make payments for the Licenses in accordance with the
Auction; and, (ii) to finance the Build-Out and operation of the Royal Street
System and for any expenses related thereto as contemplated by the LLC
Agreement and the Services Agreement.

-14-

 

     5.2 Compliance with Agreements; Borrower Status.

     The Borrower shall at all times observe and perform all of the covenants,
conditions and obligations required to be performed by it under the Services
Agreement.

     5.3 Payment.

     Borrower shall promptly pay to Lender with interest the
obligations due or to become due at the times and places and in the amount and
manner specified in this Credit Agreement, the Note and the other Loan
Documents.

     5.4 Subsidiaries.

          a. As soon as practicable after the date on which the Licenses are
granted to Borrower, or prior to the date on which the Licenses are granted to
Borrower if Borrower can amend its pending FCC application to substitute an
affiliated company as the applicant without causing material delay in the
processing of the Auction No. 58 long form application, Borrower shall form
one or more Holding Subsidiaries. Borrower shall contribute one or more of
such Licenses to each of the Holding Subsidiaries, as contemplated by Section
2.5(d) of the LLC Agreement. Lender shall require each Holding Subsidiary to
become a party to this Agreement and to be jointly and severally liable for
all obligations of Borrower hereunder by executing a copy of the form of
counterpart signature page substantially in the form of Exhibit C attached
hereto and made a part thereof.

     5.5 Existence.

          a. The Borrower shall maintain (a) its limited liability company existence
under
the laws of the jurisdiction of its formation and (b) its good standing and
its right to carry on its
business and operations in the jurisdiction of its formation or
incorporation and in each other
jurisdiction in which the character of the properties owned or leased by it
or the business
conducted by it makes such qualification necessary and the failure to be in
good standing would
permanently preclude the Borrower from enforcing its rights with respect to
any material assets
or expose the Borrower to any material liability.

          b. The Borrower shall cause each of the Holding Subsidiaries to maintain
(a) its
existence under the laws of the State of Delaware and (b) its good standing
and its right to carry
on its business and operations in the State of Delaware and in each other
jurisdiction in which the
character of the properties owned or leased by such Holding Subsidiaries
makes such
qualification necessary.

     5.6 Compliance with Laws, Taxes, Etc.

     The Borrower shall, and shall cause its Subsidiaries to, comply in all
material respects with all Applicable Laws, such compliance to include,
without limitation, paying before the same become delinquent all taxes,
assessments and governmental charges imposed upon it or upon its property
except to the extent contested in good faith by appropriate proceedings and
for which any reserves required by GAAP have been established. In the event
the Borrower fails, or fails to cause any of its Subsidiaries, to satisfy its
obligations under this Section 5.6, as to taxes,

-15-

 

assessments and governmental charges, the Lender may, but is not
obligated to, satisfy such obligations in whole or in part and any payments
made and expenses incurred in doing so shall constitute principal indebtedness
hereunder governed by the terms of the Note and shall be paid or reimbursed by
the Borrower upon demand by Lender.

     5.7 Books and Records.

     The Borrower shall at all times keep proper books and records of accounts
in which full, true and correct entries shall be made of its transactions in
accordance with GAAP consistently applied.

     5.8 Assets and Insurance.

     The Borrower shall maintain in full force and effect (a) a usual and
customary errors and omissions insurance policy, (b) such other insurance
coverage, on all properties of a character usually insured by organizations
engaged in the same or similar business against loss or damage of a kind
customarily insured against by such organizations, (c) adequate public
liability insurance against tort claims which may be asserted against the
Borrower and (d) such other insurance coverage for other hazards as Lender may
from time to time reasonably require to protect its rights and benefits under
this Credit Agreement and the other Loan Documents. All commercial general
liability and property damage insurance policies and any other insurance
policies required to be carried hereunder shall (i) be issued by insurance
companies with a then-current Alfred M. Best Company, Inc. (or if no longer in
existence, a comparable rating service) general policy holder’s rating of “A”
or better and financial size category of Class XII or higher and otherwise
reasonably satisfactory to Lender; (ii) designate Lender as additional
insured; (iii) be written as primary policy coverage and not contributing with
or in excess of any coverage which Lender may carry; (iv) provide for thirty
(30) days prior written notice to Lender of any cancellation or nonrenewal of
such policy; and (v) contain contractual liability coverage insuring
performance by Borrower of the indemnity provisions of the Loan Documents.
Borrower shall promptly deliver to Lender upon receipt and from time to time
upon Lender’s request either a copy of each such policies of insurance or
certificates evidencing the coverages required hereunder.

     5.9 Financial Statements and Other Reports.

     The Borrower shall maintain a system of accounting (as to its own
operations and financial condition) established and administered in accordance
with sound business practices such as to permit the preparation of financial
statements in accordance with GAAP and furnish or cause to be furnished to the
Lender:

          a. Annual Statements. Commencing in 2005, as soon as practicable
following the end of each fiscal year, but in any event within ninety (90)
days after the end of each fiscal year, Borrower shall cause to be prepared
and delivered to Lender the audited statement of income and statement of cash
flows for such fiscal year, audited balance sheet as of the end of such fiscal
year, and accompanying notes to financial statements, on a consolidated basis,
prepared in accordance with GAAP.

-16-

 

     b. Quarterly Statements. As soon as practicable following
the end of each of the
first three fiscal quarters of each fiscal year, but in any event within
forty-five (45) days after the
end of such quarter, Borrower shall cause to be prepared and delivered to
Lender, an unaudited
statement of income and statement of cash flows for such quarter and an
unaudited balance sheet
as of the end of such quarter on a consolidated basis, prepared in
accordance with GAAP.

     c. Monthly Statements. As soon as possible following the end of
each calendar
month in each fiscal year, but in any event within thirty (30) days after
the end of such month, (i)
Borrower shall cause to be prepared and delivered to Lender, an unaudited
statement of income
and statement of cash flows for such month and an unaudited balance sheet
as of the end of such
month on a consolidated basis, prepared in accordance with GAAP, and (ii)
Borrower shall
provide Lender with a monthly report of significant operating and financial
statistics including,
to the extent applicable, number of subscribers, subscriber churn
statistics, minutes of use,
average revenues per subscriber, acquisition costs and capital expenditure
efficiency statistics
and such additional statistics and information as may be approved for
internal use by the
Borrower.

     d. Within five (5) Business Days after their occurrence, notice of each of
the
following events:

	 	(i)	 	the commencement of any Litigation against the Borrower or
any material development in any Litigation pending or threatened
against the Borrower.
	 
	 	(ii)	 	any Event of Default or other breach by
Borrower of any covenant or agreement of Borrower in this Credit
Agreement or any of the other Loan Documents.
	 
	 	(iii)	 	notice of any event that could have a Material Adverse Effect
on the Borrower.

     5.10 Indebtedness.

     The Borrower shall not, directly or indirectly, create, incur, assume,
guarantee or otherwise become or remain directly or indirectly liable with
respect to any indebtedness, except:

          a. the indebtedness created under this Credit Agreement;

          b. indebtedness (i) that is subordinate in right of payment to all
indebtedness
evidenced by the Note, (ii) the incurrence of which would not have a
Material Adverse Effect on
the Borrower and (iii) the lender of which enters into an intercreditor
agreement with Lender in
form and substance satisfactory to Lender;

          c. purchase money financing of telecommunications equipment if the terms
of
such financing are more favorable to Borrower than the terms of the Loans
or if Lender or its
Affiliates are in breach under this Credit Agreement or the Equipment and
Facilities Lease
Agreement;

          d. current obligations incurred in the ordinary course of business and not
overdue (unless the same are being contested in good faith and by
appropriate proceedings and
adequate reserves are maintained therefor in accordance with GAAP), not to
exceed in the

-17-

 

aggregate an amount to be determined by Lender in its reasonable
discretion within one (1) year after the Amendment Effective Date;

          e. renewals, extensions, replacements, refinancings or refundings of
any of the foregoing.

     5.11 Investments.

     The Borrower shall not, directly or indirectly, make or own any
investment in any Person, except: investments in (i) Holding Subsidiaries of
Borrower, (ii) marketable direct obligations issued or unconditionally
guaranteed by the United States Government or issued by any agency thereof and
backed by the full faith and credit of the United States, in each case
maturing within one year from the date of acquisition thereof, (iii)
marketable direct obligations issued by any state of the United States of
America or any political subdivision of any such state or any public
instrumentality thereof maturing within one year from the date of acquisition
thereof and, at the time of acquisition, having the highest rating obtainable
from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc.,
(iv) commercial paper maturing no more than 270 days from the date of creation
thereof and, at the time of acquisition, having the highest rating obtainable
from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc.,
and (v) time deposits maturing within one (1) year from the date of creation
thereof with, including certificates of deposit issued by, any office located
in the United States of any bank or trust company that is organized under the
laws of the United States or any state thereof and whose certificates of
deposit are rated P-l or better by Moody’s or A-l or better by S&P.

     5.12 Leasehold Mortgages.

          a. Borrower shall enter into, execute and deliver to Lender a Leasehold
Mortgage, substantially in the form of Exhibit D, securing the repayment
by Borrower of the
Note in each case in which Borrower enters into a Lease. In the event
that Borrower acquires
any rights in real property other than pursuant to a Lease, then Borrower
shall promptly notify
Lender of such acquisition and shall promptly execute and deliver such
mortgages, documents
and other instruments as are reasonably requested by Lender to ensure that
Lender has a first
priority lien on such real property rights.

          b. Borrower shall use commercially reasonable efforts to cause each Lease
to
expressly permit the granting of a Leasehold Mortgage with respect to such
Lease by the
Borrower, as applicable to the Lender, and the exercise of the remedies
thereunder by the
Lender.

          c. At Lender’s election, Borrower shall use commercially reasonable
efforts to
obtain a Waiver and Consent, in the form attached hereto as Exhibit E,
from the lessor of any
real property leased to Borrower as to which lease Borrower is obligated
under Section 5.12(a) to
execute a Leasehold Mortgage.

-18-

 

     5.13 Negative Covenants.

     Borrower shall not take any of the actions set forth in this Section 5.13
without the prior written approval of Lender, which approval may be withheld
in Lender’s sole and absolute discretion.

          a. Sell, lease, convey, transfer or otherwise dispose of its property or
assets now
owned or hereafter acquired except in the ordinary course of business
substantially consistent
with industry practice, except for transfers of Licenses to the Holding
Subsidiaries.

          b. Conduct, transact or otherwise engage in, or commit to transact, conduct
or
otherwise engage in, any business or operations other than the acquisition
of the Licenses, the
Build-Out and the operation of the Royal Street System, or any portion
thereof, and the exercise
of rights, the performance of obligations and the conduct of other
activities arising out of or in
connection with or directly related to the foregoing.

          c. Enter into any transaction of merger or consolidation, or liquidate,
wind up or
dissolve itself (or suffer any liquidation or dissolution), or convey,
sell, lease, transfer or
otherwise dispose of, in one transaction or a series of related
transactions, all or substantially all
of its business or property, whether now owned or hereafter acquired, or,
except as expressly
permitted under the terms of this Credit Agreement, acquire by purchase or
otherwise all or
substantially all the business or property of, or stock or other evidence
of beneficial ownership
of, any Person, or acquire, purchase, redeem or retire any shares of its
capital stock now or
hereafter outstanding for value.

          d. Create or permit to exist at any time, any mortgage, lien, security
interest,
pledge, charge or other encumbrance against any of its property or assets
now owned or hereafter
acquired, or assign or sell any income or revenues (including accounts
receivable) or rights in
respect thereof except for the Permitted Liens, and shall, at its sole cost
and expense, promptly
take all such action as may be necessary duly to discharge, or cause to be
discharged all such
mortgages, liens, security interests, pledges, charges or other
encumbrances.

          e. Become liable, directly or indirectly, contingently or otherwise, for
any
obligation of any other Person by endorsement, guaranty, surety or
otherwise.

          f. Enter into any agreement containing any provision that would be violated
or
breached by any borrowing hereunder or by the performance of its
obligations hereunder or
under any document executed pursuant hereto.

          g. Own, lease, manage or otherwise operate any properties or assets other
than in
connection with the Build-Out and operation of the Royal Street System, or
incur, create, assume
or suffer to exist any indebtedness or other consensual liabilities or
financial obligations other
than as may be incurred, created or assumed or as may exist in connection
with the Build-Out
and operation of the Royal Street System (including without limitation the
Loans and other
obligations incurred by the Borrower hereunder). Notwithstanding the
foregoing, the Borrower
may invest excess funds in investments permitted under Section 5.11.

-19-

 

          h. Make any distributions under Section 10.2(a) of the LLC
Agreement until Borrower has first paid any accrued interest, if any, and
principal borrowed under this Credit Agreement.

     5.14 Further Assurances.

     At any time and from time to time, upon the written request of the
Lender, and at the expense of the Borrower, the Borrower shall promptly and
duly execute and deliver such further instruments and documents and take such
further action as the Lender may reasonably determine in its sole discretion
to be necessary or advisable to further carry out and consummate the
transactions contemplated by the Loan Documents and to perfect or protect the
full benefits of this Credit Agreement and the other Loan Documents.

     5.15 Independence of Covenants.

     All covenants hereunder shall be given independent effect so that
if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or be
otherwise within the limitations of, another covenant shall not avoid the
occurrence of an Event of Default if such action is taken or condition
exists.

Section 6: Events of Default and their Effect 

     6.1 Events of Default.

     Each of the following shall constitute an Event of Default under
this Credit Agreement and the Note (each, an “Event of Default”):

          a. Failure to Pay. Borrower fails to pay when due any principal
payment,
interest or other payment required under the terms of the Note that is not
cured within five (5)
days after the date on which such payment is due and payable; or

          b. Breaches of Other Covenants. Borrower fails to observe or
perform any
covenant, obligation, condition or agreement contained in this Credit
Agreement or any
covenant, obligation, condition or agreement under any of the other Loan
Documents and such
failure shall continue for ten (10) days after notice thereof from Lender
or Borrower shall fail to
transfer the Licenses to Holding Subsidiaries as required in Section 5.4
hereof; or

          c. Bankruptcy or Insolvency Proceedings. Borrower (i) applies for
or consents
to the appointment of a receiver, trustee, liquidator or custodian of
itself or of all or a substantial
part of its property, (ii) is unable, or admits in writing its inability
to pay its debts generally as
they mature, (iii) makes a general assignment for the benefit of its or
any of its creditors, (iv) is
dissolved or liquidated in full or in part, (v) is adjudicated as a
bankrupt or insolvent (as such
terms may be defined or interpreted under any applicable statute), (vi)
commences a voluntary
case or other proceeding, or an involuntary petition is filed and not
dismissed within sixty (60)
days of filing, seeking liquidation, reorganization or other relief with
respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in
effect or consents to
any such relief or to the appointment of or taking possession of its
property by any official in an

-20-

 

involuntary case or other proceeding commenced against it, or (vii) takes
any action for the purpose of effecting any of the foregoing; or

          d. Representations and Warranties. Any representation or warranty
made by
Borrower herein or in any other Loan Document is breached and not cured
prior to the expiration
of any applicable cure period or is false or misleading in any material
respect; or

          e. Change in Control. The occurrence of any Borrower Change in
Control
Event; or

          f. Material Adverse Effect. The occurrence of any event having a
Material
Adverse Effect on the Borrower; or

          g. Breach of Certain Covenants. The breach by C9 Wireless, LLC
(or its
successors or assigns) of the terms of Section 4.1(b) of the LLC Agreement;
or

          h. Termination of LLC Agreement. The LLC Agreement is
terminated in accordance with its terms.

     6.2 Remedies Upon Event of Default.

          a. If any Event of Default shall occur, then the Lender may do any or all
of the
following: (i) terminate the commitment of the Lender to make Loans to the
Borrower under this
Credit Agreement, (ii) declare all obligations of the Borrower hereunder
and under the Note to be
immediately due and payable, whereupon the obligations of the Borrower
hereunder and under
the Note shall immediately become due and payable without presentment,
demand, protest or
other notice of any kind, all of which are hereby expressly waived,
anything in this Credit Agreement or in any other Loan Document to the contrary notwithstanding,
and (iii) enforce its
rights under any one or more of the Loan Documents in accordance with
Applicable Law.

          b. If an Event of Default described in Section 6.1 (c) above shall occur,
then each
of the following shall automatically occur without any further action by
Lender: (i) the
commitment of the Lender to make Loans to the Borrower under this Credit
Agreement shall
immediately terminate, and (ii) all obligations of the Borrower hereunder
and under the Note
shall be immediately due and payable without presentment, demand, protest
or other notice of
any kind, all of which are hereby expressly waived, anything in this Credit
Agreement or in any
other Loan Document to the contrary notwithstanding.

          c. Upon the occurrence of any Event of Default and at any time thereafter
so
long as any Event of Default shall be continuing, the Lender may proceed to
protect and enforce
this Credit Agreement, the Note and the other Loan Documents by suit or
suits or proceedings in
equity, at law or in bankruptcy, and whether for the specific performance
of any covenant or
agreement herein contained or in execution or aid of any power herein
granted, or for foreclosure
hereunder, or for the appointment of a receiver or receivers for the
collateral subject to the
applicable Security Agreements and Pledge Agreements or for the recovery of
judgment for the
indebtedness secured thereby or for the enforcement of any other proper,
legal or equitable
remedy available under Applicable Law.

-21-

 

          d. The Borrower shall pay to the Lender forthwith upon demand any
and all expenses, costs and other amounts due hereunder or under the other
Loan Documents before, after or during the exercise of any of the foregoing
remedies, including without limitation all reasonable legal fees and other
reasonable costs and expenses incurred by the Lender by reason of the
occurrence of any Event of Default, the enforcement of this Credit Agreement
and the other Loan Documents and/or the preservation of the Lender’s rights
hereunder and under the other Loan Documents.

Section 7: Miscellaneous

     7.1 Entire Agreement; Amendment.

     This Credit Agreement (including the attached Exhibits) constitutes the
sole understanding of the parties with respect to the subject matter hereof,
and supersedes all prior oral or written agreements, commitments or
understandings with respect to such matters. No amendment, modification or
alteration of the terms or provisions of this Credit Agreement shall be
binding unless the same shall be in writing and duly executed by the parties
hereto.

     7.2 Successors and Assigns.

     This Credit Agreement may not be assigned by Borrower without the consent
of the Lender. Lender may assign any or all of the Loan Documents to (i) an
Affiliate of Lender, or (ii) Bear, Stearns & Co. Inc. or any Affiliate
thereof, without the consent of Borrower, provided that such assignee of
Lender agrees to be bound by all of the terms hereof. No such permitted
assignment shall relieve any party hereto of any liability for a breach of
this Credit Agreement by such party or its assignee. Notwithstanding the
foregoing, Borrower may assign its rights and obligations under this Credit
Agreement to any Holding Subsidiary. This Credit Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective
heirs or successors in interest.

     7.3 Rights and Remedies.

     Unless otherwise provided herein, the rights and remedies of the Lender
hereunder and under the other Loan Documents shall not be mutually exclusive,
and the exercise of one or more remedies by the Lender pursuant to this Credit
Agreement, the other Loan Documents or Applicable Law shall not preclude the
exercise by the Lender of any other remedy.

     7.4 Indemnity; Reimbursement of Lender.

          a. The Borrower agrees to indemnify, defend and hold the Lender harmless
from and against any and all claims, demands, losses, judgments and
liabilities (including but not limited to, liabilities for penalties) of any
nature (“Claims”), and to reimburse the Lender for all reasonable costs and
expenses, including but not limited to attorneys’ fees and expenses, arising
from the Loan Documents or the exercise of any right or remedy granted to the
Lender hereunder other than Claims arising from Lender’s gross negligence,
willful misconduct or fraud. In no event shall the Lender be liable for any
matter or thing in connection with the Loan Documents other than to account
for moneys actually received by the Lender in accordance with the terms
hereof.

-22-

 

          b. All indemnities contained in this Section 7.4 and elsewhere in
this Credit Agreement shall survive the expiration or earlier termination of
this Credit Agreement.

     7.5 Highest Lawful Rate.

     Anything herein to the contrary notwithstanding, the obligations of the
Borrower on the Note shall be subject to the limitation that payments of
interest shall not be required, for any period for which interest is computed
hereunder, to the extent that contracting for or receipt thereof would be
contrary to provisions of any law applicable to the Lender limiting the
highest rate of interest which may be lawfully contracted for, charged or
received by the Lender.

     7.6 Counterparts.

     This Credit Agreement may be executed in one or more counterparts, each
of which shall for all purposes be deemed to be an original and all of which
shall constitute the same instrument.

     7.7 Modification and Waiver.

     The parties by mutual written agreement may (a) extend the time for the
performance of any of the obligations or other acts of the other parties
hereto, (b) waive any inaccuracies in the representations and warranties
contained herein of the other Party or in any document delivered pursuant
hereto by the other Party, or (c) waive compliance with any of the agreements
or conditions contained herein. Any agreement on the part of a party hereto to
any such extension or waiver shall only be valid if set forth in an instrument
in writing signed on behalf of such party. No waiver by Lender in any one case
shall require the Lender to give any subsequent waiver.

     7.8 Payments on Business Days.

     Whenever any payment to be made hereunder or under any Note shall be
stated to be due on a day other than a Business Day, such payment may be made
on the next succeeding Business Day and such extension of time shall in such
case be included in computing interest, if any, in connection with such
payment.

     7.9 Expenses.

     Except as specifically provided herein, each Party hereto shall pay all
costs and expenses incurred by it or on its behalf in connection with this
Credit Agreement and the transactions contemplated hereby, including, without
limiting the generality of the foregoing, fees and expenses of its own
consultants, accountants and counsel. Notwithstanding the foregoing, the
Borrower shall pay, immediately when due, all present and future stamp and
other like duties and applicable taxes, if any, to which this Credit Agreement
may be subject or give rise.

     7.10 Notices.

     All notices and other communications given to or made upon any party
hereto in connection with this Credit Agreement shall, except as otherwise
expressly herein provided, be

-23-

 

in writing and mailed via certified mail, sent by Federal Express or
other similar express delivery service for next day delivery or faxed (with a
confirming copy sent by such express delivery service for next day delivery)
to the respective parties, as follows:

	 	 	 
	If to Lender:

	 	MetroPCS Wireless, Inc.
	 

	 	8144 Walnut Hill Lane
	 

	 	Suite 800
	 

	 	Dallas, TX 75231
	 

	 	Attention: Vice President, General Counsel and Secretary
	 

	 	Facsimile: 972-860-2682
	 
	 	 
	With copies (which shall not constitute notice) to:

	 	Paul Hastings, Janofsky & Walker, LLP
	 

	 	875 15th Street, N.W.
	 

	 	Twelfth Floor
	 

	 	Washington, DC 20005
	 

	 	Attention: Carl W. Northrop
	 

	 	Facsimile: 202-551-1725
	 
	 	 
	 

	 	Bear Stearns Corporate Lending Inc.
	 

	 	383 Madison Avenue, 8th Floor
	 

	 	New York, New York 10179
	 

	 	Attention: Kevin Cullen
	 

	 	Facsimile: 212-272-9184
	 
	 	 
	If to Borrower:

	 	Royal Street Communications, LLC
	 

	 	PO Box 2365
	 

	 	Southampton, NY 11969
	 

	 	Attention: Robert Gerard
	 

	 	Facsimile: 631-283-9153
	 
	 	 
	With a copy (which shall not constitute notice) to:

	 	Schulte Roth & Zabel LLP
	 

	 	919 Third Avenue
	 

	 	New York, New York 10022
	 

	 	Attention: Paul N. Roth, Michael R. Littenberg
	 

	 	Facsimile: 212-593-5955

or in accordance with any subsequent written direction delivered in
accordance with this section from the recipient party to the sending party.
All such notices and other communications shall, except as otherwise expressly
herein provided, be effective upon delivery if delivered by hand; in the case
of certified mail, three (3) Business Days after the date sent; in the case of
any fax, when

-24-

 

received; or in the case of express delivery service, the day after
delivery of the notice to such service with charges prepaid.

     7.11 Severability.

     In case any one or more of the provisions contained in this Credit
Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect by a court or other authority of competent
jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision hereof and this Credit Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never
been contained herein and, in lieu of each such illegal, invalid or
unenforceable provision, there shall be added automatically as a part of this
Credit Agreement a provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible and be legal, valid and
enforceable, it being the intent of the parties to maintain the benefit of
the bargain for all parties.

     7.12 Governing Law.

     This Credit Agreement shall be construed in accordance with and governed
by the laws of the State of New York applicable to agreements made and to be
performed wholly within such jurisdiction.

     7.13 Venue; Waiver of Jury Trial.

          a. THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL
COURT OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF NEW
YORK SOLELY IN RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE
PROVISIONS OF THIS CREDIT AGREEMENT OF THE
TRANSACTIONS
CONTEMPLATED HEREBY, AND HEREBY WAIVE, AND AGREE NOT TO ASSERT, AS
A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR THE INTERPRETATION OR
ENFORCEMENT HEREOF OR OF ANY SUCH DOCUMENT, THAT IT IS NOT SUBJECT
THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT
OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT THE VENUE THEREOF MAY
NOT BE APPROPRIATE OR THAT THIS CREDIT AGREEMENT, OR ANY SUCH
DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS, AND THE PARTIES
HERETO IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO SUCH
ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH STATE
OR FEDERAL COURT. THE PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH
COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE
SUBJECT MATTER OF SUCH DISPUTE.

          b. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY WHICH MAY ARISE UNDER THIS CREDIT AGREEMENT IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH
SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS

-25-

 

CREDIT AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS CREDIT
AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY,
AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS CREDIT AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
7.13.

     7.14 Lender’s Discretion.

     Unless this Credit Agreement shall otherwise expressly provide, Lender
shall have the right to make any decision, grant or withhold any consent, and
exercise any other right or remedy hereunder in its sole and absolute
discretion.

     7.15 Capitalized Terms.

     Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to such terms in the LLC Agreement.

     7.16 Headings.

     The descriptive headings in this Credit Agreement are inserted for
convenience of reference only and are not intended to be part of or to affect
the meaning or interpretation of this Credit Agreement.

     7.17 Amendment and Restatement.

     This Credit Agreement amends and restates in its entirety the
Original Agreement and the Existing Credit Agreement, and from and after the
Effective Date hereof, and subject to the terms hereof, the terms and
provisions of the Original Agreement and the Existing Credit Agreement shall
be superseded by the terms and provisions of this Credit Agreement. In
addition to the premises set forth above, the Borrower hereby agrees that (i)
the indebtedness, borrowings, advances and liabilities under the Original
Agreement and the Existing Credit Agreement and the promissory notes executed
and delivered in connection therewith, shall be deemed to be indebtedness and
liabilities of the Borrower outstanding and governed by this Credit Agreement,
and (ii) all liens, encumbrances and security interests securing the
indebtedness and Obligations under the Original Agreement and the Existing
Credit Agreement and related promissory notes executed and delivered in
connection therewith shall continue in full force and effect to secure the
indebtedness and obligations of Borrower under this Credit Agreement, the Note
and the other Loan Documents.

[remainder of page intentionally blank; signature page follows]

-26-

 

SIGNATURE PAGE TO 

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT

     IN WITNESS WHER OF, the parties hereto have-signed this Credit
Agreement, or have caused this Credit Agreement to be signed in their
respective names by an officer, hereunto duly authorized, on the
Amendment Effective Date.

	 	 	 	 	 	 	 
	 	 	METROPCS WIRELESS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Roger D. Linquist	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Roger D. Linquist	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	ROYAL STREET COMMUNICATIONS, LLC,
	 
	 	 	 	 
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert A. Gerard
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	ROBERT A. GERARD
	 
	 	 	 	 
	 

	 	Title:
	 	CHIEF EXECUTIVE OFFICER

 

 

Exhibits to

Second Amended and Restated Credit Agreement

by and between

MetroPCS Wireless, Inc.

and

Royal Street Communications, LLC

EXHIBITS:

	 	A.	 	FORM OF AMENDED AND RESTATED NOTE
	 
	 	B.	 	FORM OF AMENDED AND RESTATED SECURITY AGREEMENT
	 
	 	C.	 	COUNTERPART SIGNATURE PAGE TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
	 
	 	D.	 	LEASEHOLD MORTGAGE
	 
	 	E.	 	WAIVER AND CONSENT
	 
	 	F.	 	FORM OF AMENDED AND RESTATED PLEDGE AGREEMENT

 

EXHIBIT A

FORM OF NOTE

AMENDED AND RESTATED PROMISSORY NOTE

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. IT MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER SAID ACT OR AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE BORROWER THAT SUCH
REGISTRATION IS NOT REQUIRED.

                    ,
200___

     FOR VALUE RECEIVED, ROYAL STREET COMMUNICATIONS, LLC, a Delaware limited liability company
(the “Borrower”), promises to pay to the order of METROPCS WIRELESS, INC. (the “Holder”) at its
principal office at 8144 Walnut Hill Lane, Suite 800, Dallas, TX 75231, or at such other place as
the Holder may from time to time designate in writing, or to its assigns, the principal sum equal
to the Loans, or so much thereof as may be advanced from time to time and remain outstanding,
together with interest on the unpaid principal balance, at the rate of 11% per annum, compounded
quarterly commencing on the last day of the first calendar quarter following the Effective Date.
Interest shall be computed on the basis of a year with three hundred sixty (360) days, and the
actual number of days elapsed. This Note is issued pursuant to the Second Amended and Restated
Credit Agreement dated as of even date herewith by and among Borrower, Holder and certain other
persons that become parties thereto under the terms thereof as the same may be amended from time to
time (“Credit Agreement”).

     1. Defined Terms. All capitalized terms not defined herein shall have the meanings
given to them in the Credit Agreement.

     2. Payments. Payments of interest and principal shall be due and payable at such
times and in such amounts as set forth in the Credit Agreement. All payments made hereunder shall
be made in lawful tender of the United States in immediately available funds on the date on which
such payment shall be due.

     3. Payment at Maturity. The entire outstanding principal balance of this Note, all
interest accrued thereon, and all other amounts then due and owing under this Note and the Loan
Documents shall be due and payable in full on the Maturity Date.

     4. Default. The following shall be Events of Default under this Note:
(each, an “Event of Default”):

 

 

     a. The failure by Borrower to pay any amount when due under
this Note, which failure shall remain uncured for a period of five (5)
days after delivery of written notice of such failure; or

     b. The occurrence of an “Event of Default” as defined in the Credit
Agreement.

     5. Rights of Holder Upon Default. Upon the occurrence or
existence of any Event of Default and at any time thereafter during the
continuance of such Event of Default, Holder may declare the entire principal
sum of this Note, together with all unpaid accrued interest thereon, and all
unpaid fees, charges, costs and expenses, if any, owed by Borrower to Holder
hereunder or under any of the other Loan Documents, to be immediately due and
payable. In addition to the foregoing remedies, upon the occurrence or
existence of any Event of Default, Holder may exercise any other right, power
or remedy permitted to it by law, either by suit in equity or by action at law,
or both.

     6. Prepayment.

     a. Prepayment. Upon compliance with Section 6(b) below,
the Borrower shall have the right, at any time and from time to time, to
prepay this Note, without premium or penalty, either in whole or in part
but limited to increments of no less than $25,000 per prepayment, by
payment of the principal amount of this Note, or portion thereof to be
prepaid, and accrued interest thereon to the date of such prepayment.
Partial or total prepayments of this Note shall first be credited to
accrued interest due, then to the principal balance outstanding.

     b. Notice of Prepayment. The Borrower shall give notice to
Holder of any prepayment of this Note pursuant to Section 6(a) at least
three Business Days prior to the date fixed for such prepayment
specifying (a) the date of prepayment, and (b) the principal amount to be
prepaid on such date. Notice of prepayment having been so given, the
principal amount of this Note to be prepaid as specified in the notice,
together with accrued interest thereon shall become due and payable on
the prepayment date specified in such notice.

     7. Security. Borrower’s obligations under this Note are secured
by, among other things, an Amended and Restated Security Agreement (“Security
Agreement”) of even date herewith by and between Borrower and Holder creating a
lien and security interest on Borrower’s assets.

     8. Waivers and Rights of Holder. Except as may be otherwise
expressly set forth in this Note, Borrower hereby (i) waives demand,
presentment for payment, protest, notice of nonpayment, notice of protest,
notice of dishonor, and any and all exemption rights which it holds at law or
in equity with respect to the indebtedness evidenced by this Note, and (ii)
agrees that enforcement by Holder of any security for the performance of the
terms of this Note shall not constitute an election by it of remedies so as to
preclude the exercise of any other remedy available to it.

-2-

 

     9. Default Rate. As long as any payment due under this
Note remains past due (whether at the stated maturity, by acceleration or
otherwise) for five (5) days or more, interest under this Note shall accrue on
such overdue payment from the earlier of the due date of such payment at a rate
(the “Default Rate”) equal to Eighteen Percent (18.00%) per annum, in each case
from the date of such non-payment until such amount is paid in full (whether
after or before judgment).

     10. Payment of Expenses. From and after the occurrence of an
Event of Default, Borrower shall pay, on demand, all reasonable costs and
expenses of collection of this Note (including, without limitation, reasonable
attorneys’ fees), whether or not any suit or other legal proceedings shall be
instituted.

     11. Rights Cumulative. All rights and remedies of Holder under this
Note, under any security given to secure Borrower’s performance of the terms of
this Note (including, without limitation, the Security Agreement) and under
applicable law, are cumulative and not alternative. Failure of Holder at any
time to exercise any such rights or remedies shall neither constitute a waiver
of such rights or remedies nor bar the future exercise of any such rights or
remedies.

     12. No Usury. In the event that any payment under this Note shall
exceed the amount permitted by applicable law, such payment shall be reduced to
the maximum amount permitted by law and the excess shall be applied in reduction
of the principal amount of this Note. In the event that any such excess exceeds
the principal amount, the amount of such excess over the principal amount shall
be refunded to Borrower.

     13. Business Day. In the event that the date for performance of
any obligation under this Note falls on other than a Business Day, then such
obligation shall be performed on the next succeeding business day.

     14. Successors and Assigns. The rights and obligations of the
Borrower and the Holder of this Note shall be binding upon and benefit the
successors, assigns, heirs, administrators and permitted transferees of the
parties.

     15. Entire
Agreement; Amendments;Waiver. This Note, together
with the Credit Agreement, contains the entire agreement between Borrower and
Holder relating to the subject matter hereof. No amendment, modification,
termination, release, surrender or discharge of this Note shall be of any force
or effect except by an agreement in writing signed by Borrower and Holder. No
purported waiver of any of the provisions of this Note shall be valid or
effective unless the same is in writing and signed by the party against whom it
is sought to be enforced.

     16. Assignment by the Borrower. Except as expressly provided in
the Credit Agreement, neither this Note nor any of the rights, interests or
obligations hereunder may be assigned, by operation of law or otherwise, in
whole or in part, by the Borrower, without the prior written consent of the
Holder.

-3-

 

     17. Severability. In case any one or more of the provisions
contained in this Note shall for any reason be held to be invalid, illegal and
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision hereof.

     18. Notices. All notices required or permitted under this Note
shall be in writing and shall be sufficient if given in the manner described in
the Credit Agreement.

     19. No Setoff. Payments on this Note shall be made without
setoff, counterclaim or deduction, and without further notice or demand to
Borrower or any other party.

     20. Records. Records of all borrowings evidenced by this Note and
all payments and prepayments of the principal hereof and interest hereon and
the respective dates thereof shall be maintained by the Lender, and such
records shall, absent manifest error, be conclusive and binding.

     21. Governing Law. This Note and all actions arising out of or in
connection with this Note shall be governed by and construed in accordance with
the laws of New York, without regard to the conflicts of law provisions of that
or of any other state.

     22. Time of Essence. Time is of the essence in the performance of
each and every term and provision of this Note.

     23. Amendment and Restatement. This Note amends and restates in
their entirety (but does not cancel or extinguish the indebtedness and
liability evidenced by, and shall not constitute a novation of) that certain
Promissory Note dated December 22, 2004 executed by Borrower in favor of
MetroPCS (as successor lender to Holdings) and that certain Promissory Note
dated January 24, 2005 executed by Borrower in favor of MetroPCS (as successor
lender to Holdings), in the original principal amount of the Loan Commitment
Amount as defined in each of the Original Agreement and the Existing Credit
Agreement.

[remainder of page intentionally blank; signature page follows]

 

 

SIGNATURE PAGE TO

AMENDED AND RESTATED PROMISSORY NOTE

     IN WITNESS WHEREOF, the Borrower has caused this Note to be
issued as of the date first written above.

	 	 	 	 	 	 	 
	 	 	ROYAL STREET COMMUNICATIONS, LLC,	 	 
	 
	 	 	 	 	 	 
	 	 	a Delaware limited liability Company	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Robert A. Gerard	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	ROBERT A. GERARD	 	 
	 

	 	Title:
	 	CHIEF EXECUTIVE OFFICER
	 	 

 

 

EXHIBIT B

FORM OF AMENDED AND RESTATED SECURITY AGREEMENT

     THIS AMENDED AND RESTATED SECURITY AGREEMENT (this “Agreement”) executed
on December 15, 2005 as of December 22, 2004, is made between ROYAL STREET
COMMUNICATIONS, LLC, a Delaware limited liability company (“Grantor”), and
METROPCS WIRELESS, INC., a Delaware corporation (“Lender”).

RECITALS

     A. Grantor and the Lender have entered into that certain Second Amended and
Restated Credit Agreement executed on even date herewith (as the same may be
amended from time to time “Credit Agreement”) pursuant to which Lender has
agreed, subject to the terms and conditions therein, to make certain loans in an
aggregate amount set forth in the Credit Agreement (the “Loans”) and Grantor has
executed and delivered an amended and restated promissory note executed on even
date herewith evidencing amounts advanced by the Lender under the Credit
Agreement (the “Note”).

     B. In order to induce the Lender to enter into the Credit Agreement and to
continue to make the Loans, and in consideration therefor, the Grantor has
agreed to execute and deliver this Agreement to amend and restate that certain
Security Agreement, dated as of December 22, 2004 (the “Original Security
Agreement”), and that certain Security Agreement, dated as of January 24, 2005
(the “Existing Security Agreement”), each between the Grantor and the Lender (as
successor lender to Holdings), pursuant to which the Grantor has granted to the
Lender a perfected lien on and security interest in all of the Collateral (as
defined in each of the Original Security Agreement and the Existing Security
Agreement) to secure the Obligations (as defined in each of the Original
Security Agreement and the Existing Security Agreement).

     C. It is a condition precedent to the making of any further Loans that the
Grantor execute and deliver this Agreement to, among other things, amend and
restate the Original Security Agreement and the Existing Security Agreement on
the terms and conditions set forth herein.

     NOW THEREFORE, for and in consideration of the covenants and provisions
set forth herein, and for other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree to amend and
restate the Original Security Agreement and the Existing Security Agreement
and further agree as follows:

     1. Grant of Security Interest. As security for the Obligations,
the Grantor hereby transfers, conveys, assigns, pledges and grants a
continuing and unconditional security interest to the Lender, and its
successors and assigns, in and to:

     a. all equipment (including all “Equipment” as defined in Section
9-102(a)(33) of the Uniform Commercial Code as in effect from time to
time in the State of New York, such code, together with any other
successor or applicable adoption of the

 

 

Uniform Commercial Code in any applicable jurisdiction, the “Code”),
machinery, vehicles, fixtures, improvements, supplies, office
furniture, fixed assets, all as now owned or hereafter acquired by the
Grantor or in which the Grantor has or hereafter acquires any interest,
and any items substituted therefor as replacements and any additions or
accessions thereto;

     b. all goods (including all “Goods” as defined in Section
9-102(a)(44) of the Code) and all inventory (including all “Inventory” as
defined in Section 9-102(a)(48) of the Code) of the Grantor, now owned or
hereafter acquired by the Grantor or in which the Grantor has or
hereafter acquires any interest, including but not limited to, raw
materials, scrap inventory, work in process, products, packaging
materials, finished goods, all documents of title, chattel paper and
other instruments covering the same and all substitutions therefor and
additions thereto (all of the property described in this clause (b) being
hereinafter collectively referred to as “Inventory”);

     c. all present and future accounts in which the Grantor has or
hereafter acquires any interest (including all “Accounts” as defined in
Section 9-102(a)(2) of the Code), contract rights (including all rights
to receive payments and other rights under all equipment and other
leasing contracts) and rights to payment and rights or accounts
receivable evidencing or representing indebtedness due or to become due
the Grantor on account of goods sold or leased or services rendered,
claims, instruments and other general intangibles (including tax refunds,
royalties and all other rights to the payment of money of every nature
and description), including but not limited to, any such right evidenced
by chattel paper, and all liens, securities, guaranties, remedies,
security interests and privileges pertaining thereto (all of the property
described in this clause (c) being hereinafter collectively referred to
as “Accounts”);

     d. all investment property now owned or hereafter acquired by the
Grantor, including, without limitation, all securities (certificated and
uncertificated), partnership, membership or other ownership interests or
profits interest owned by Grantor in or with regard to any corporation,
partnership, limited liability company or other legal entity, securities
accounts, securities entitlements, commodity contracts and
commodity accounts, including, without limitation, any shares,
equity securities, partnership, membership or other ownership interests
owned by Grantor (the “Securities”);

     e. all general intangibles now owned or hereafter acquired by the
Grantor or in which the Grantor has or hereafter acquires any interest,
(including all “General Intangibles” as defined in Section 9-102(a)(42)
of the Code) including but not limited to, choses in action and causes of
action and all licenses and permits (to the extent the collateral
assignment of such licenses and permits is not prohibited by Applicable
Law), registrations, franchises, corporate or other business records,
systems, designs, software, goodwill, logos, indicia, business
identifiers, inventions, processes, production methods, proprietary
information, know-how, trade-secrets, customer and client lists (to the
extent not prohibited by Applicable Law), and all trade-names,
copyrights, patents, trademarks (including service marks) or patent or
trademark applications and contract rights (including but not limited to
all rights to receive payments and other rights under all equipment and
other leasing contracts, instruments and documents owned or used by the Grantor, and any goodwill relating thereto);

-2-

 

     f. all other property owned by the Grantor or in which the Grantor
has or hereafter acquires any interest, wherever located, and of whatever
kind or nature, tangible or intangible, excluding, except to the extent
set forth in clause j below, any Licenses now or hereafter issued by the
FCC;

     g. all insurance policies of any kind maintained in effect by the
Grantor, now existing or hereafter acquired, under which any of the
property referred to in clauses (a) through (f) above is insured,
including but not limited to, any proceeds payable to the Grantor pursuant
to such policies;

     h. all monies, cash collateral, chattel paper, checks, notes,
bills of exchange, documents of title, money orders, negotiable
instruments, commercial paper, and other securities, instruments,
documents, deposit accounts, deposits and credits from time to time
whether or not in the possession of or under the control of the Lender;

     i. any consideration received when all or any part of the property
referred to in clauses (a) through (h) above is sold, transferred,
exchanged, leased, collected or otherwise disposed of, or any value
received as a consequence of possession thereof, including but not
limited to, all products, proceeds (including all “Proceeds” as defined
in Section 9-102(a)(64) of the Code), cash, negotiable instruments and
other instruments for the payment of money, chattel paper, security
agreements or other documents, insurance proceeds or proceeds of other
proceeds now or hereafter owned by the Grantor or in which the Grantor
has an interest; and

     j. all “Proceeds” as defined in Section 9-102(a)(64) of the Code of
all Licenses now or hereafter issued by the Federal Communications
Commission or any successor thereto, and solely to the extent if any
permitted by Applicable Law, all such licenses and permits.

     The property set forth in clauses (a) through (j) of the preceding
sentence, together with property of a similar nature which the Grantor
hereafter owns or in which the Grantor hereafter acquires any interest, is
referred to herein as the “Collateral.”

     2. Representations and Warranties. The Grantor represents,
warrants and agrees that:

     a. Grantor has and shall have good and marketable title to all the
Collateral, wherever and whenever acquired, free and clear of any lien
except as permitted by the Credit Agreement, and the Grantor has not
filed, nor is there on record, a financing statement under the Code (or
similar statement or instrument of registration under the law of any
jurisdiction) covering any Collateral except as permitted by the Credit
Agreement;

     b. Grantor has the requisite limited liability company power and
authority and legal right to pledge the Collateral to Lender as provided
herein;

-3-

 

     c. Grantor has paid when due all taxes, fees, assessments and other charges
now or hereafter imposed upon the Collateral except for any tax, fee,
assessment or other charge the validity of which is being contested in
good faith by appropriate proceedings and which may not result in any
material impairment of the lien of the Lender on such Collateral and,
except for any tax, fee, assessment or other charges assessed
subsequent to the Lender’s foreclosure on such Collateral pursuant to
the Loan Documents;

     d. as a result of the execution and delivery of this Agreement and
the filing of any financing statements or other documents necessary to
assure, preserve and perfect the security interest created hereby, and
except as permitted by the Credit Agreement, the Lender shall have a
valid, perfected, enforceable lien on, and a continuing security interest
in, the Collateral, enforceable and superior, subject to Permitted Liens,
as such as against creditors and purchasers (other than purchasers of
Inventory in the ordinary course of business) and as against any owner of
real property where any of the equipment or Inventory is located and as
against any purchaser of such real property and any present or future
creditor obtaining a mortgage or other lien on such real property, and
such lien shall be superior and prior to all other liens on the
Collateral;

     e. the chief executive office of the Grantor is at PO Box 2365,
Southampton, New York 11969, and the Grantor maintains its books of
account and records only at such address; and

     f. none of the Collateral is held by a third party in any location as
assignee, trustee, bailee, consignee or in any similar capacity.

All representations, warranties and agreements of the Grantor contained in
this Agreement shall survive the execution, delivery and performance of this
Agreement until the termination of this Agreement pursuant to Section 13
hereof.

     3. Covenants. The Grantor hereby covenants to and agrees with the
Lender that so long as this Agreement shall remain in effect or any
Obligations shall remain unpaid or unperformed:

     a. The Grantor shall promptly give written notice to the Lender of
any levy or attachment, execution or other process against any of the
Collateral;

     b. The Grantor at its sole cost and expense shall take any and all
actions reasonably necessary or desirable to defend the Collateral against
the claims and demands of all persons other than the Lender and holders of
adverse liens permitted by the Credit Agreement and to defend the security
interest of the Lender in the Collateral and the priority thereof against
any adverse lien of any nature not permitted by the Credit Agreement;

     c. The Grantor shall keep all tangible Collateral properly insured in
the manner and form required under the Credit Agreement and in good order
and repair (normal wear and tear excepted) and promptly notify the Lender
of any event causing any material loss, damage or depreciation in value of
the Collateral and of the extent of such loss, damage or depreciation;

-4-

 

     d. The Grantor shall mark any Collateral that is chattel paper with a
legend showing the Lender’s lien and security interest therein;

     e. The Grantor shall not (i) amend or terminate any contract or other
document or instrument constituting part of the Collateral, except for
transactions in the ordinary course of business substantially consistent
with industry practice; or (ii) voluntarily or involuntarily exchange,
lease, sell, transfer or otherwise dispose of any Collateral, except as
otherwise permitted under the Credit Agreement;

     f. The Grantor at all times shall keep accurate and complete records
of the Collateral and, upon the reasonable request of the Lender, shall
furnish the Lender a schedule or schedules, in form and substance
reasonably satisfactory to the Lender, describing such Collateral as the
Lender may require;

     g. The Lender, or any of its agents, shall have the right to call at
the Grantor’s place or places of business during normal business hours at
intervals to be determined by the Lender and without hindrance or delay
after notice to the Grantor, to inspect the Collateral and to inspect,
audit, verify, check and make extracts from the books, records, journals,
orders, receipts, correspondence and other data relating to the
Collateral;

     h. If any of the Accounts or General Intangibles of the Grantor
arise out of contracts with the United States or any department, agency
or instrumentality thereof, the Grantor shall promptly notify the Lender
in writing and execute any instruments and take any steps required by
the Lender in order that all monies due and to become due under such
contracts shall be assigned to the Lender and notice thereof given to
the United States Government under the Federal Assignment of Claims Act;

     i. Without the prior written consent of the Lender or except as
otherwise permitted by this Agreement or the Credit Agreement, the
Grantor will not (1) pledge, assign or grant a security interest in any
of the Collateral to anyone except the Lender, (2) permit any lien or
encumbrance to attach to any of the Collateral, (3) permit any levy to
be made on the Collateral or (4) permit any financing statement (except
any financing statements executed by Grantor for the benefit of Lender
as secured party) to be on file with respect to any Collateral;
provided, however, that in the event that Lender or its
Affiliates are in breach under the Credit Agreement or the Equipment and
Facilities Lease Agreement, then Borrower shall be permitted to purchase
equipment from a third party seller and to issue such third party seller
a first priority purchase money security interest solely in the acquired
equipment;

     j. The Grantor shall pay and discharge when due all taxes, levies
and other charges on the Collateral, unless such tax, levy or other
charge is being contested in good faith and with respect to which
adequate reserves (as determined in accordance with generally accepted
accounting principles) have been established and are being maintained
and unless such tax, levy or other charge is assessed subsequent to the
Lender’s foreclosure on such Collateral pursuant to the Loan Documents;

-5-

 

     k. If any Inventory or Equipment shall become in the possession or
control of any third party, the Grantor shall notify such third party of
the security interest created hereby and instruct such third party to
hold such Inventory and Equipment for the Lender’s account and subject
to the Lender’s instructions. If any Collateral is subject to a
certificate of title at any time, the Grantor shall deliver such
certificate of title to the Lender together with such documents as shall
be necessary to cause the security interest of the Lender to be noted
thereon;

     l. If at any time Grantor shall receive any shares of stock or
stock certificates, or any other instruments evidencing Securities,
Grantor shall promptly deliver any such instruments to Lender as
additional security for the Obligations, all of which additional
security shall constitute Collateral. With respect to any Collateral
that is an “uncertificated security” for purposes of the Code (other
than any “uncertificated securities” credited to a Securities Account
under the control of the Lender), Grantor shall cause the issuer of such
uncertificated security to either (i) register the Lender as the
registered owner thereof on the books and records of the issuer or (ii)
execute an agreement, in form and substance satisfactory to the Lender
pursuant to which such issuer agrees to comply with the Lender’s
instructions with respect to such uncertificated security without
further consent by such Grantor; or

     m. Upon the occurrence and during the continuation of an Event of
Default, any dividends or other distributions received by Grantor on
account of the Collateral shall be held in trust by Grantor for the
benefit of the Lender, and Grantor shall immediately notify Lender in
writing, and shall, if Lender so instructs, immediately pay over such
dividends or other distributions to Lender as Collateral.

     4. Events
of Default. Each of the following shall constitute an
“Event of Default” hereunder:

     a. The occurrence of a default or an “Event of Default” under the
Note or the Credit Agreement; or

     b. [Intentionally Removed].

     5. Remedies
Upon Default. Upon the occurrence and during the
continuation of an Event of Default, after any applicable cure period, and at
any time thereafter, Lender may (but shall not be required to) take any or all
of the following actions simultaneously or in any order which it may choose:

     a. The Lender may from time to time take whatever action at law or
in equity may appear necessary or desirable in order to collect the
monies payable hereunder or secured hereby or to enforce performance and
observance of any obligation, agreement or covenant hereunder.

     b. The Lender may foreclose its security interest in any of the
Collateral in any way permitted by law; and the Lender may thereupon, or
at any time thereafter, in its sole discretion, without notice or demand
(except such notice as may be specifically required by law) and with or
without having the Collateral at the time or place of sale,

-6-

 

sell or otherwise dispose of the Collateral, or any part thereof, at one
or more public or private sales, at any time or place, at such price or
prices and upon such terms, either for cash, credit or future delivery,
as the Lender may elect. In the exercise of such remedy, the Lender may
sell all of the Collateral as a unit even though the sales price thereof
may be in excess of the amounts remaining unpaid on the Obligations. To
the extent not prohibited by Applicable Law, the Lender is authorized at
any sale or other disposition of the Collateral, if it deems it
advisable so to do, to restrict (with respect to any Securities that are
part of the Collateral) the prospective bidders or purchasers thereof to
persons who will represent and agree that they are purchasing for their
own account for investment, and not with a view to the distribution or
resale of any of the Collateral. At any such public sale the Lender may
bid for and become the purchaser of all or any part of the Collateral,
and such sale or sales may be held without demand of performance, notice
of intention to sell, the time or place of sale or any other matter,
except for such notice as may be specifically required by law; and the
purchaser at any such sale or other disposition shall thereafter hold
the Collateral sold absolutely free from any claim or right of the
Grantor of whatsoever kind, including any right of redemption of the
Grantor, all such rights being hereby expressly waived and released by
the Grantor to the extent permitted by law.

     c. The Lender may proceed by a suit or suits at law or in equity to
foreclose this Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent
jurisdiction or pursuant to a proceeding by a court-appointed receiver.
The Grantor hereby assents to the passage of a decree for the sale of any
of the Collateral by any court having jurisdiction. In any action
hereunder, the Lender shall be entitled to the appointment of a receiver
without notice, to peaceably take possession of all or any portion of the
Collateral and to exercise such powers as the court shall confer upon the
receiver. Notwithstanding the foregoing, if an Event of Default shall
occur and be continuing, the Lender shall be entitled to apply, without
notice to the Grantor, any cash or cash items constituting Collateral in
its possession to payment of the Obligations.

     d. Lender shall have the right, in its sole discretion, to apply for
and have a receiver appointed by a court of competent jurisdiction in any
action taken by Lender to enforce its rights and remedies hereunder in
order to manage, protect and preserve the Collateral and continue the
operation of the business of Grantor and to collect all revenues and
profits thereof and apply the same to the payment of all expenses and
other charges of such receivership, including but not limited to the
compensation of the receiver, until a sale or other disposition of such
Collateral shall be finally made and consummated. Lender and Grantor
acknowledge and agree that in connection with any exercise by the Lender
of its rights hereunder to dispose of or operate under certain of the
Collateral, it may be necessary to obtain the prior consent or approval of
certain governmental authorities. Upon the exercise by Lender of any
power, right, privilege or remedy pursuant to this Agreement which
requires any consent or approval of any governmental authority, Grantor
will execute and deliver, or will cause the execution and delivery of, all
applications, certificates and other documents which may reasonably be
required to obtain such approval or consent. Grantor shall cooperate in
good faith with Lender and any purchaser of the Collateral in obtaining
any such approvals or consents.

-7-

 

     e. The Grantor hereby authorizes and empowers the Lender to sell its
interest in the Collateral in accordance with any Applicable Law. Such
Collateral or any interest therein may be sold upon such terms and in as
many lots as the person conducting the sale may, in his sole discretion,
elect. No readvertisements of any sale shall be required if the sale is
adjourned by announcement, at the time or place set therefor, of the date,
time or place to which the same is to be adjourned.

     f. The Lender may, to the extent not prohibited by Applicable Law,
exercise any and all rights of conversion, exchange or subscription and
any other rights, privileges or options pertaining to any of the
Collateral, as if the Lender were the absolute owner thereof, including
(without limitation) the right to exchange, at its discretion, any and all
of the Collateral upon the merger, consolidation, reorganization,
recapitalization or other readjustment of any subsidiary of Grantor.

     g. The Lender may take possession of the Collateral pursuant hereto
without legal process and without incurring liability to the Grantor
therefor for the purpose of exercising its rights hereunder.

     h. The Lender may (1) notify all or any of the makers, account
debtors or any person obligated to the Grantor for any amount with
respect to an Account or General Intangible (collectively, the
“obligors” and individually, an obligor”) that the Accounts and the
General Intangibles have been assigned to the Lender and to request
confirmation from any obligor of the amount shown by the Accounts or the
General Intangibles to be payable or any other matter stated therein or
relating thereto, and such notices may be given by the Lender in its own
name or in the name of the Grantor; (2) demand, collect or compromise
for any and all sums that are now or may hereafter become due or owing
on any Account or General Intangible; (3) enforce payment of any Account
or General Intangible either in its own name or in the name of the
Grantor; and (4) endorse in the name of the Grantor, and to collect, any
instruments tendered or received in payment of any Account or General
Intangible. The Lender under no circumstances shall be under any duty to
act in regard to any of the foregoing matters. The Grantor appoints the
Lender, and any officer or employee of the Lender as the Lender from
time to time may designate, as attorneys-in-fact for the Grantor, to
sign and endorse in the name of the Grantor, to give notices in the name
of the Grantor and to perform all other actions necessary or desirable
in the reasonable discretion of the Lender to effect these provisions
and carry out the intent hereof. This power, being coupled with an
interest, is irrevocable so long as any Account or General Intangible
assigned to the Lender remains unpaid and this Agreement has not been
terminated in accordance with the terms hereof.

     i. At the option of the Lender, the Grantor agrees that, upon
receipt of all checks, drafts, cash and other remittances in payment or
on account of the Accounts or the General Intangibles (collectively,
the “payments” and individually, a “payment”), the Grantor will deposit
the same in a special bank account designated by Lender, over which the
Lender has the exclusive right of withdrawal, and will designate with
each such deposit the particular Account or General Intangible upon
which the payment was made. The funds in such special account shall be
held by the Lender as security for the Obligations. The payments shall
be deposited in precisely the form received except for

-8-

 

the endorsement of the Grantor where necessary to permit collection of
such items, which endorsement the Grantor agrees to make, and which the
Lender is authorized to make on the Grantor’s behalf. Pending such
deposit, the Grantor agrees that it will not commingle any payments with
any of the Grantor’s funds or property, but will hold them separate and
apart therefrom and upon an express trust for the Lender until deposit
thereof is made in the special account. The Lender, at any time and from
time to time after the occurrence of an Event of Default, in its sole
discretion, may apply any part of the credit balance in the special
account to the payment of the Obligations.

     j. The Lender may exercise any other right or remedy with respect
to any of the Collateral given to secured parties under the applicable
Code or other Applicable Law.

     k. Any notification required by Section 9-611 of the Code shall be
deemed reasonably and properly given if mailed, certified or registered
mail, postage prepaid, to the Grantor, at least ten (10) days before any
sale or disposition of any of the Collateral which is subject to the
Code. Any advertisement of the sale or other disposition of such
Collateral shall be deemed to be reasonable if such advertisement is
placed in a newspaper of general circulation in or about the location of
the chief executive offices or principal place of business of Grantor or
the location of the sale at least once in each of the two (2) calendar
weeks immediately preceding the sale.

     l. At the request of Lender, the Grantor shall deliver to the
Lender all original and other documents evidencing and relating to the
sale and delivery of Inventory or Accounts, including but not limited
to, all original orders, invoices and shipping receipts. The Grantor
shall also furnish to the Lender, promptly upon the request of the
Lender, such reports, reconciliations and aging balances regarding
Accounts as the Lender may request from time to time.

     All of Lender’s rights and remedies hereunder, under the Note and under
any of the other Loan Documents shall be cumulative and not exclusive, and
shall be enforceable alternatively, successively or concurrently as Lender
may, in its sole discretion, deem expedient. Lender shall have no obligation
to preserve rights in the Collateral or marshal any of the Collateral for the
benefit of any person or entity. The Obligations are recourse obligations.
Accordingly, the exercise of Lender’s remedies hereunder, or any of them,
including, without limitation, foreclosure on the Collateral, shall not result
in a satisfaction or discharge of the Obligations or otherwise limit Lender’s
ability to exercise its other remedies hereunder.

     6. Application
of Proceeds. Any proceeds received from the
exercise of any remedy hereunder, after deducting therefrom any and all costs
and expenses reasonably incurred in securing possession of any Collateral, in
shipping and storing the Collateral, in preparing the Collateral for sale or
otherwise dealing with Collateral prior to any sale or other disposition
thereof and in connection with the sale or other disposition thereof
(including, without limitation, reasonable attorneys’ and accountants’ fees
and brokers’ commissions), shall be applied toward the payment of any and all
amounts due under or with respect to the Obligations, including interest, and
all other costs and expenses reasonably incurred by the Lender in connection
with this Agreement which are then due and payable, in such order and amounts
as the Lender, in its

-9-

 

sole discretion, may elect. If such net proceeds should be insufficient
to pay all of the amounts due under or with respect to the Obligations,
including interest, that are due and payable and all such other costs and
expenses reasonably incurred by the Lender, and a deficiency shall result,
the Grantor shall nevertheless remain liable for such deficiency; and if such
net proceeds should be more than sufficient to pay the same, such surplus
shall be accounted for and, if any Obligations remain outstanding but are not
yet due and payable, retained by the Lender, who shall hold the same as
security for the Obligations; and if no Obligations remain outstanding, such
surplus shall be paid over to the Grantor or whomever a court of competent
jurisdiction shall determine to be entitled thereto.

     7. Powers of Attorney. The Grantor hereby irrevocably appoints
the Lender (and any officer or agent of the Lender) as its true and lawful
attorney-in-fact, with power of substitution for and in the name of the Lender
or otherwise, for the use and benefit of the Lender, effective upon the
occurrence and during the continuance of an Event of Default and to the extent
not prohibited by Applicable Law: (i) to receive, endorse the name of the
Grantor upon and deliver any notes, acceptances, checks, drafts, money orders
or other evidences of payment that may come into the possession of the Lender
with respect to the Collateral; (ii) to cause the Grantor’s mail to be
transferred to the Lender’s own offices and to receive and open all mail
addressed to the Grantor for the purposes of removing any such notes,
acceptances, checks, drafts, money orders or other evidences of payment; (iii)
to demand, collect and receive payment in respect of the Collateral and to
apply any such payments directly to the payment of the Obligations; (iv) to
receive and give discharges and releases of all or any of the Collateral; (v)
to commence and prosecute any and all suits, actions or proceedings at law or
in equity in any court of competent jurisdiction, to collect or otherwise
realize on all or any part of the Collateral or to enforce any rights in
respect thereof; (vi) to sign the name of the Grantor on any invoice or bill
of lading relating to any of the Collateral; (vii) to send verification of any
Accounts to any account debtor or customer; (viii) to notify any account
debtor or other obligor of the company with respect to any Collateral to make
payment to the Lender; (ix) to settle, compromise, compound, adjust or defend
any actions, suits or proceedings relating or pertaining to all or any of the
Collateral; (x) to take any action for purposes of carrying out of the terms
of this Agreement; (xi) to enforce all of the Grantor’s rights and powers
under and pursuant to any and all agreements with respect to the Collateral;
and (xii) generally to sell, assign, transfer, pledge, make any agreement with
respect to or otherwise deal with all or any of the Collateral, and to do all
other acts and things necessary to carry out this Agreement, as fully and
completely as though the Lender were the absolute owner of the Collateral for
all purposes; provided, however, that nothing herein contained shall be
construed as requiring or obligating the Lender to make any commitment or to
make any inquiry as to the nature or sufficiency of any payment received by
the Lender, or to present or file any claim or notice, or to take any action
with respect to the Collateral or any part thereof or the moneys due or to
become due in respect thereof or any property covered thereby, and no action
taken by the Lender or omitted to be taken with respect to the Collateral or
any part thereof shall give rise to any defense, counterclaim or offset in
favor of the Grantor or to any claim or action against the Lender. It is
understood and agreed that the power of attorney granted to the Lender for the
purposes set forth above in this Section 7 is coupled with an interest and is
irrevocable and the Grantor hereby ratifies all actions taken by its
attorney-in-fact by virtue hereof. The provisions of this Section 7 shall in
no event relieve the Grantor of any of its obligations hereunder or under any
of the other Loan Documents with respect to the Collateral or any part thereof
or impose any obligation on the Lender to proceed in

-10-

 

any particular manner with respect to the Collateral or any part
thereof, or in any way limit the exercise by the Lender of any other or
further right which it may have on the date of this Agreement or hereafter,
whether hereunder, under any of the other Loan Documents, by law or otherwise.

     8. Collateral Reserve Account. If requested by the Lender to do so
on or at any time after an Event of Default has occurred and during its
continuance, Grantor shall establish and thereafter maintain with the Lender or
its designee a demand deposit account for the concentration and collection of
proceeds of certain Collateral (the “Collateral Reserve Account”) into which the
Grantor shall transfer and deliver all cash, checks, drafts, items and other
instruments for the payment of money which it now has or may at any time
hereafter receive in full or partial payment for the Collateral or otherwise as
proceeds of the Collateral and, pending such transfer and delivery, Grantor
shall be deemed to hold same in trust for the benefit of the Lender. Grantor
shall not be entitled to withdraw funds on deposit in the Collateral Reserve
Account after its inception without the prior written consent of the Lender;
provided, however, that, at any time during which collected funds exist on
deposit in the Collateral Reserve Account, the Lender may withdraw such
deposits, or any portion thereof, therefrom, for application against the
Obligations in such manner as the Lender, in its sole discretion, may determine.

     9. Collections. Upon the occurrence and during the continuance of
an Event of Default, the Lender may, in its sole discretion, in its name or in
the name of the Grantor, or otherwise, (a) demand, sue for, collect or receive
any money or property at any time payable or receivable on account of or in
exchange for, or make any compromise or settlement deemed desirable with respect
to any of the Collateral, but shall be under no obligation to do so, or (b)
extend the time of payment, arrange for payment in installments, or otherwise
modify the term of, or release, any of the Collateral, without thereby incurring
responsibility to, or discharging or otherwise affecting any liability of, the
Grantor, other than to discharge the Grantor in so doing with respect to
liabilities of the Grantor to the extent that the liabilities are paid or
repaid. After the occurrence and during the continuance of an Event of Default,
any money, checks, notes, bills, drafts, or commercial paper received by the
Grantor shall be held in trust for the Lender and any other Lender having rights
thereto senior to the Lender and shall be promptly turned over to the Lender or
any other Lender having rights thereto senior to the Lender as their interest
shall appear. The Lender may make such payments and take such actions as the
Lender, in its sole discretion, deem necessary to protect its security interest
in the Collateral or the value thereof, and the Lender is hereby unconditionally
and irrevocably authorized (without limiting the general nature of the authority
hereinabove conferred) to pay, purchase, contest or compromise any liens which
in the judgment of the Lender appear to be equal to, prior to or superior to its
security interest in the Collateral and any liens not expressly permitted by
this Agreement, the Credit Agreement or the other Loan Documents.

     10. Expenses. The Grantor shall pay, when due, any and all
reasonable fees, taxes or (other than taxes based on the income of Lender) other
charges imposed in connection with the granting of the security interests
hereunder including, without limitation, any fees imposed in connection with
recordation of instruments necessary or desirable in order to reflect,
effectuate or release such security interests.

-11-

 

     11. Notices. All notices and other communications given to or made
upon any party hereto in connection with this Agreement shall, except as
otherwise expressly herein provided, be in writing and mailed via certified
mail, sent by Federal Express or other similar express delivery service for next
day delivery, faxed (with a confirming copy sent by such a express delivery
service for next day delivery) or hand delivered to the respective parties to
their respective addresses set forth or referenced in Section 7.10 of the Credit
Agreement, or in accordance with any subsequent written direction delivered in
accordance with this section from the recipient party to the sending party. All
such notices and other communications shall, except as otherwise expressly
herein provided, be effective upon delivery if delivered by hand; in the case of
certified mail, three Business Days after the date sent; in the case of any fax,
when received; or in the case of express delivery service, the day after
delivery of the notice to such service with charges prepaid.

     12. Assignability and Parties in Interest. This Agreement shall
not be assignable by Grantor without the written consent of Lender. Lender
shall have the right to assign this Agreement without Grantor’s consent to any
person at Lender’s sole discretion, including to Bear, Stearns & Co. Inc. or any
Affiliate thereof. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective successors and permitted assigns.

     13. Termination. This Agreement shall terminate and the Security
Interest shall be released upon the earliest to occur of (i) the payment and
satisfaction in full of the Note and all of the Obligations relating to the
Note; or (ii) the mutual agreement of Grantor and Lender.

     14. Certain Waivers; Grantor Not Discharged. The Grantor
expressly and irrevocably waives (to the extent permitted by Applicable Law)
presentment, demand of payment and protest of nonpayment in respect of its
Obligations under this Agreement. The obligations and duties of the Grantor
hereunder are irrevocable, absolute, and unconditional and shall not be
discharged, impaired or otherwise affected by (a) the failure of the Lender to
assert any claim or demand or to enforce any right or remedy against the Grantor
or any waiver, consent, extension, indulgence or other action or inaction in
respect thereof, (b) any extension or renewal of any part of the Obligations,
(c) any rescission, waiver, amendment or modification of any of the terms or
provisions of the Credit Agreement or any of the Loan Documents, (d) the release
of any liens on or security interests in any part of the Collateral or the
release, sale or exchange of or failure to foreclose against any security held
by or for the benefit of the Lender for payment or performance of the
Obligations, (e) the bankruptcy, insolvency or reorganization of the Grantor or
any grantee or any other persons, (f) the invalidity or unenforceability of the
Credit Agreement or any of the Loan Documents, (g) any change, restructuring or
termination of the corporate structure or existence of the Grantor or any
grantee or any restructuring or refinancing of all or any portion of the
Obligations, or (h) any other event which under law would discharge the
obligations of a surety.

     15. Transfer of Security Interest. The Lender may transfer to any
other person all or any part of the liens and security interests granted hereby,
and all, or any part of the Collateral which may be in the Lender’s possession
after the occurrence and during the continuance of an Event of Default or, if to
a successor Lender in accordance with the Credit Agreement, at any time. Upon
such transfer, the transferee shall be vested with all the rights and powers of
the Lender hereunder with respect to such of the Collateral as is so
transferred, but, with respect to

-12-

 

any of the Collateral not so transferred, the Lender shall retain all of their
rights and powers (whether given to it in this Agreement, or otherwise). The
Lender may, at any time, assign all or any portion of its rights as the Lender
hereunder to any person in the Lender’s discretion, including without
limitation Bear Stearns & Co. Inc. or any Affiliate thereof, and upon notice
to the Grantor, but without any requirement for consent or approval by or from
Grantor, and any such assignment shall be valid and binding upon the Grantor,
as fully as it had expressly approved the same.

     16. Indemnity; Reimbursement of Lender. The Grantor agrees to
indemnify, defend and hold the Lender harmless from and against any and all
claims, demands, losses, judgments and liabilities (including but not limited
to, liabilities for penalties) of any nature, and to reimburse the Lender for
all reasonable costs and expenses, including but not limited to attorneys’ fees
and expenses, arising from this Agreement or the exercise of any right or remedy
granted to the Lender hereunder, except to the extent such claims arise out of
Lender’s gross negligence, willful misconduct or fraud. In no event shall the
Lender be liable for any matter or thing in connection with this Agreement other
than to account for moneys actually received by the Lender in accordance with
the terms hereof. All indemnities contained in this Section 16 and elsewhere in
this Agreement shall survive the expiration or earlier termination of this
Agreement.

     17. No Liability for Collateral. Beyond the exercise of
reasonable care in the custody of any Collateral, the Lender shall not, under
any circumstance or in any event whatsoever, have any liability for any part of
the Collateral, nor shall the Lender have any liability for any error or
omission or delivery of any kind incurred in the good faith settlement,
collection or payment of any of the Collateral or any monies received in payment
therefor or for any damages resulting therefrom, nor shall this Agreement impose
upon the Lender any obligation to perform any obligation with respect to the
Collateral. The costs of collection, notification and enforcement, including
but not limited to, attorneys’ fees and out-of-pocket expenses, shall be borne
solely by the Grantor, whether the same are incurred by the Grantor or the
Lender.

     18. Definitions. Any capitalized terms used herein which are not
defined herein shall have the meaning ascribed to such term in the Credit
Agreement.

     19. Governing Law. This Agreement shall be governed by and
construed and interpreted in accordance with the laws of the State of New York,
without regard to its conflict of laws principles, except to the extent that the
perfection and the effect of perfection or non-perfection of any security
interests created hereby is governed by the laws of a jurisdiction other than
the State of New York.

     20. Complete Agreement. This Agreement and the Credit Agreement
contain the entire agreement between the parties hereto with respect to the
transactions contemplated herein and, except as provided herein, supersede all
previous oral and written and all contemporaneous oral negotiations,
commitments, writings and understandings.

     21. Amendments and Waivers. This Agreement may be amended only by a
writing signed by the Grantor and Lender. No delay or omission on the part of
any party hereto in exercising any right hereunder shall operate as a waiver of
such right or any other right

-13-

 

hereunder or operate to constrain the rights of any other parties hereunder.
No waiver of any one right shall operate as a waiver of any subsequent right.

     22. Interpretation. The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

     23. Continuing Lien. It is the intent of the parties hereto that
(a) this Agreement shall constitute a continuing agreement as to any and all
future, as well as existing transactions, between the Grantor and the Lender
under or in connection with the Notes, and (b) the security interest provided for
herein shall attach to after-acquired as well as existing Collateral and the
Obligations covered by this Agreement shall include any future advances under or
in connection with the Credit Agreement.

     24. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute but one contract, and shall become effective when
copies hereof which, when taken together, bear the signatures of each of the
parties hereto shall be delivered or mailed to the Lender.

     25. Severability. If any provision of this Agreement shall be held
to be invalid, illegal or unenforceable in any material respect, such provision
shall be replaced with a provision which is as close as possible in effect to
such invalid, illegal or unenforceable provision, and still be valid, legal and
enforceable, and the validity, legality and enforceability of the remainder of
this Agreement shall not in any way be affected or impaired thereby, unless the
parties otherwise so provide.

     26. Venue; Waiver of Jury Trial.

     a. THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURT
OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF NEW YORK SOLELY IN
RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF
THIS AGREEMENT OF THE TRANSACTIONS CONTEMPLATED HEREBY, AND
HEREBY WAIVE, AND AGREE NOT TO ASSERT, AS A DEFENSE IN ANY
ACTION, SUIT OR PROCEEDING FOR THE INTERPRETATION OR ENFORCEMENT HEREOF
OR OF ANY SUCH DOCUMENT, THAT IT IS NOT SUBJECT THERETO OR THAT SUCH
ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN
SAID COURTS OR THAT THE VENUE THEREOF MAY NOT BE APPROPRIATE OR THAT THIS
AGREEMENT, OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS,
AND THE PARTIES HERETO IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO
SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH A STATE OR
FEDERAL COURT. THE PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH COURT
JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER
OF SUCH DISPUTE.

-14-

 

     b. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES
THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH
PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER,
(iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 26(b).

     27. Further Assurances. Grantor agrees, from time to time, at its
expense, to do such further things, to execute, acknowledge, deliver and cause
to be duly filed all such further instruments and documents and take all such
actions as the Lender may from time to time reasonably request for the better
assuming and preserving of the security interests and rights and remedies
created hereby, including, without limitation, the execution and delivery of
such financing statements or continuation statements, and amendments thereto, as
may be necessary or desirable, or as Lender may request in order to perfect and
preserve the security interests granted hereby. Grantor hereby authorizes Lender
or its agent to file such financing statements and/or such continuation
statements and amendments thereto relating to all or any part of the Collateral
without its signature, where permitted by law. A carbon, photographic or other
reproduction of this Agreement or any financing statement covering the
collateral granted hereby or any part thereof shall be sufficient as a financing
statement where permitted by law.

     28. Amendment and Restatement. This Agreement amends and restates
in their entirety the Original Security Agreement and the Existing Security
Agreement, and from and after the Effective Date hereof, and subject to the
terms hereof, the terms and provisions of the Original Security Agreement and
the Existing Security Agreement shall be superseded by the terms and provisions
of this Agreement. The Grantor hereby agrees that (i) the liens and security
interest granted by Grantor under the Original Security Agreement and the
Existing Security Agreement shall be deemed to be liens and security interests
securing the indebtedness, Obligations, borrowings, advances and liabilities
under the Credit Agreement and shall remain outstanding and governed by this
Agreement, and shall not constitute a novation, and (ii) all liens and security
interests securing the indebtedness, Obligations, borrowings, advances and
liabilities under the Original Agreement and the Existing Credit Agreement shall
continue in full force and effect to secure the indebtedness and Obligations of
Borrower under the Credit Agreement, the Note and the other Loan Documents.

[remainder of page intentionally blank; signature page follows]

-15-

 

SIGNATURE PAGE TO

AMENDED AND RESTATED SECURITY AGREEMENT

     IN WITNESS WHEREOF, the Grantor and Lender have caused this
Agreement to be executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	GRANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	ROYAL STREET COMMUNICATIONS, LLC,	 	 
	 
	 	 	 	 	 	 
	 	 	a Delaware limited liability, company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert A. Gerard	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	ROBERT A. GERARD	 	 
	 

	 	Title:
	 	CHIEF EXECUTIVE OFFICER	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	METROPCS WIRELESS, INC.,	 	 
	 
	 	 	 	 	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Roger D. Linquist	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Roger D. Linquist	 	 
	 

	 	Title:
	 	President and CEO
	 	 

 

 

EXHIBIT C

FORM OF COUNTERPART SIGNATURE PAGE

COUNTERPART SIGNATURE PAGE

TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     1. Agreement to be Bound. The undersigned (the “Holding Subsidiary”)
hereby agrees to be bound by all of the terms and conditions of that certain
Amended and Restated Credit Agreement, executed on December 15, 2005 as of the
December 22, 2004, by and between MetroPCS Wireless, Inc. and Royal Street
Communications, LLC, and the Holding Subsidiaries that from time to time become
parties thereto (as the same may be amended from time to time, the “Credit
Agreement”).

     2. Capitalized Terms. All capitalized terms used herein shall have the
meanings given to them in the Credit Agreement; provided that all references to
Borrower in the Credit Agreement and in this Counterpart Signature Page (this
“Agreement”) shall mean Borrower and Holding Subsidiary.

     3. [Intentionally Deleted].

     4. Notice Address. The notice address of the undersigned for purposes of
Section 7.10 of the Credit Agreement is as follows:

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

     5. Representations and Warranties. Holding Subsidiary hereby
represents and warrants to Lender as follows:

     a. Holding Subsidiary is [a limited liability company] [corporation]
duly organized, validly existing and in good standing under the laws of
the State of Delaware with all requisite power and authority to own its
properties and conduct its business as now being conducted, and is duly
qualified to do business as a foreign limited liability company in good
standing in each jurisdiction where the ownership of its properties or
the conduct of its business makes such qualification necessary, except
in those jurisdictions where failure so to qualify will not permanently
impair title to a material amount of its properties or its rights to
enforce in all material respects contracts against others or expose it to
substantial liabilities in such jurisdictions.

     b. Holding Subsidiary has all requisite power and authority to
execute, deliver and perform its obligations under this Agreement, the
Credit Agreement and the

 

 

other Loan Documents to which it is a party. Holding Subsidiary has taken all action
necessary to authorize this Agreement and the other Loan Documents to which it is a party. This
Agreement, the Credit Agreement and the other Loan Documents have been duly authorized, executed
and delivered by Holding Subsidiary and are the legal, valid and binding obligations of Holding
Subsidiary enforceable in accordance with their terms, except as such enforceability may be
limited by (i) bankruptcy, insolvency, or other similar laws affecting the enforcement of
creditors’ rights generally or (ii) general principles of equity.

     c. Neither the execution, delivery and performance of this Agreement or the other Loan
Documents by Holding Subsidiary nor the consummation by Holding Subsidiary of the
transactions contemplated herein or therein will, with or without the giving of notice or the
lapse of time, or both, (i) violate any Applicable Laws to which Holding Subsidiary is
subject, (ii) conflict with or result in a breach of the terms, conditions or provisions of,
or constitute a default under, the organizational documents of Holding Subsidiary, any
license or permit of such Holding Subsidiary, or any material contract to which Holding
Subsidiary is a party or by which Holding Subsidiary may be bound or affected, or (iii)
except with respect to the exercise of certain of Lender’s remedies under the Loan
Documents, require Holding Subsidiary to obtain any authorization, consent, approval or
waiver from, or to make any filing with, any Governmental Entity or non-governmental third
party.

     d. There is no Litigation pending against Holding Subsidiary, or, to the knowledge of
Holding Subsidiary, a basis for Litigation or threatened Litigation against Holding
Subsidiary which (a) seeks to enjoin or obtain damages in respect of the consummation of the
transactions contemplated hereby or (b) has or could have a Holding Subsidiary Material
Adverse Effect.

     e. Holding Subsidiary has complied and presently is in compliance with all Applicable
Laws except to the extent that failure by Holding Subsidiary to comply with Applicable Laws
does not and will not have a Holding Subsidiary Material Adverse Effect.

     f. [Intentionally Deleted].

     g. Holding Subsidiary is not in material default under or in material violation in the
performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in any provision of its constitutive documents or contained in any other agreement
or instrument to which it is a party or by which it is bound or to which any of its
properties is subject, and Holding Subsidiary is not in material violation of any statute,
order, rule or regulation of any court or governmental agency or body having jurisdiction
over it or any of its properties.

     h. As of the date of this Agreement, Holding Subsidiary has no indebtedness outstanding except
its obligations under the Loan Documents and the indebtedness permitted pursuant to the terms of
Loan Documents; none of such Indebtedness is in

-2-

 

default.

     i. Holding Subsidiary holds the License(s) listed on Schedule 1 hereto.

     j. No representation or warranty of the Holding Subsidiary contained in this Agreement, the
Credit Agreement or the other Loan Documents contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements contained herein or
therein not materially misleading. There is no fact known to the Holding Subsidiary which
materially adversely affects its business, operations, property, assets or condition (financial or
otherwise) which has not been disclosed herein or in such other documents, certificates and
statements furnished to the Lender for use in connection with the transactions contemplated
hereby.

     IN
WITNESS WHEREOF, the undersigned hereby executes the Credit Agreement as of                                         .

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	a Delaware [limited liability company] [corporation]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

-3-

 

Schedule 1 

Holding Subsidiary Licenses

-4-

 

EXHIBIT D

FORM OF LEASEHOLD MORTGAGE

      THIS LEASEHOLD MORTGAGE (“Leasehold Mortgage”) is made as of the                     
day of                                         , by and between ROYAL STREET COMMUNICATIONS, LLC, a
Delaware limited liability company (“Grantor”) and METROPCS WIRELESS, INC., a
Delaware corporation (“Lender”).

RECITALS:

     A. Pursuant to the terms of that certain Second Amended and Restated Credit Agreement,
executed on December 15, 2005 as of December 22, 2004 (as the same may be amended from time
to time, the “Credit Agreement”) by and among Lender, Grantor and certain other parties
thereto, Grantor agreed to grant to the Lender a leasehold mortgage in any and all leases
that Grantor enters into from time to time.

     B. Pursuant to that certain Lease (the “Lease”) dated                     , by and between
Grantor and
                                         (“Landlord”), Grantor has a leasehold interest (the
“Leasehold”) in and to that certain parcel of real property
located in                      and more
particularly described on Exhibit A (the “Land”, and together with all improvements located thereon
(“Improvements”), and all the estate, right, title, interest, and claim, either at law or in
equity, of the Grantor, of, in, to, or out of such parcel and/or Improvements, the “Premises”).

     C. Grantor desires to grant this Leasehold Mortgage for the benefit of Lender on
the terms and conditions set forth herein.

1. GRANTING CLAUSES

     1.1 For and in consideration of the sum of $10.00 and other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and in order to secure the obligations of
the Grantor under the Credit Agreement and the Promissory Note dated as of
                    , 200___ made by Grantor for the benefit of Lender (the “Note”) (collectively,
“Obligations”), Grantor does hereby grant, bargain, sell, convey, assign, transfer and set over
unto Lender, and its successors and assigns, with power of sale and right of entry and possession,
the following (collectively, the “Mortgaged Property”):

          1.1.1. the Leasehold and all other rights of Grantor in, to and under the Lease;

          1.1.2. the right, title and interest of Grantor under all leases, licenses,
concession agreements or other agreements for use or occupancy of any portion of the Land or
the Improvements, and any extensions, renewals or modifications thereof (“Leases”);

 

 

          1.1.3. all contracts from time to time executed by Grantor or its agent on its behalf
relating to the ownership, construction, maintenance, repair, operation, occupancy, leasing,
sale or financing of the Premises or any part thereof (collectively, “Contracts”);

          1.1.4. all proceeds from any compensation, awards, damages, rights of action, payments
and proceeds arising from any condemnation or taking of the Premises or any part thereof by
any governmental entity or other person having power and authority to condemn or take by
eminent domain, and any conveyance or transfer of any portion of the Premises in lieu of such
condemnation or taking;

          1.1.5. all payments, proceeds, settlements or other compensation heretofore or hereafter
made, including any interest thereon, and the right to receive the same, from any and
all insurance policies covering the Mortgaged Property or any portion thereof; and

          1.1.6. all proceeds and products of any and all of the foregoing.

     1.2. Habendum. TO HAVE AND TO HOLD the Mortgaged Property unto the Lender and its
successors and assigns forever, for and during all the rest, residue and remainder of the
unexpired term of the Lease and all renewals and extensions thereof.

     1.3. Purpose. This conveyance is made for the purpose of securing the following:

          1.3.1. the debt evidenced by the Note, together with interest on such principal amount
and any and all renewals and/or extensions of such indebtedness;

          1.3.2. payment, performance and observance by Grantor of all the covenants, agreements,
terms, conditions and provisions of the Credit Agreement, the Note, this Leasehold Mortgage,
and the other Loan Documents.

     1.4. Reconveyance. Should the obligations secured by this Leasehold Mortgage be paid
and performed in full, then this Leasehold Mortgage shall be released of record and
Lender shall transfer and deliver up to Grantor any property at the time subject to this
Leasehold Mortgage which may then be in Lender’s possession.

2. REPRESENTATIONS AND WARRANTIES

     Grantor hereby represents and warrants that Grantor is the owner of legal title to the
Leasehold, and is lawfully possessed of the Leasehold, free from all liens, charges and
encumbrances except the Lease, this Leasehold Mortgage and any rights held under statutes by
providers of services in connection with the Improvements (the “Permitted Encumbrances”). Grantor
has the right and authority to convey the Leasehold and does hereby warrant specially, and agrees
to defend, the Leasehold and the title thereto, whether now owned or hereafter acquired, against
all claims and demands by any person.

-2-

 

3. AFFIRMATIVE COVENANTS

     3.1. The Grantor, for itself and its successors and assigns, covenants and agrees as part
of this Leasehold Mortgage, as follows:

          3.1.1. Grantor shall (i) promptly make when due and payable all payments required to be
made by Grantor under the Lease, (ii) perform all other covenants and obligations required to
be performed by Grantor under the terms of the Lease and (iii) pay all taxes and assessments
and all other charges of every nature that may be assessed, levied or imposed against Grantor
or the Mortgaged Property.

          3.1.2. Grantor shall maintain the Premises in good and safe order and
condition (consistent with the best practices of similarly situated companies) and in a
rentable and tenantable state of repair, and will make or cause to be made, as and when
necessary, all repairs, renewals and replacements, structural and nonstructural, exterior and
interior, ordinary and extraordinary.

          3.1.3. In the event the ownership of the Leasehold becomes vested in a person other than
the Grantor, the Lender may, without notice to the Grantor, deal with such successor or
successors in interest with reference to this Leasehold Mortgage and the indebtedness
secured hereby in the same manner as with the Grantor, and any extension of the time of the
payment of the indebtedness or any other modification of the terms of the indebtedness at the
instance of the then owner shall not relieve the Grantor of its liability on the Note or the
Credit Agreement or from the performance of any of the covenants contained herein whether
such extension or modification be made with or without the consent of the Grantor.

          3.1.4. Grantor shall keep proper books of record and account relating to the Mortgaged
Property. Grantor shall permit representatives of the Lender to visit and inspect
the Premises at any reasonable time after delivery by Lender of prior written notice.

          3.1.5. Grantor shall promptly notify Lender in writing of any event of default
by Grantor in the performance or observance of any of the terms, covenants or conditions on
the part of Grantor to be performed under the Lease. Grantor shall promptly deliver to
Lender copies of any notices to be given by the Grantor to the Landlord pursuant to the
Lease simultaneously with the giving of such notices by the Grantor.

          3.1.6. Grantor shall (i) notify Lender in writing within five (5) days of the receipt by
Grantor of any notice claiming that Grantor is in default in the performance or observance
of any of the terms, covenants or conditions to be performed or observed by Grantor under
the terms of the Lease, and (ii) promptly cause a copy of each such notice received by the
Grantor to be delivered to the Lender.

          3.1.7. If Grantor shall fail to make any payment required to be made under the Lease as
and when required or shall fail to perform or observe any other term, covenant, agreement or
obligation required to be performed or observed by the Grantor under the Lease, Lender shall
have the right, at its option, to make any such payment or to perform any other act

-3-

 

or take such actions as may be appropriate to cause such other term, covenant, agreement or
obligation to be promptly performed or observed on behalf of Grantor to the end that Grantor’s
rights under the Lease be kept unimpaired and free from default. Grantor shall reimburse Lender on
demand for moneys expended in connection with Lender’s exercise of its rights as provided in this
subsection, with interest at the rate set forth in the Credit Agreement for advances thereunder,
and the same shall be secured by this Leasehold Mortgage.

4. NEGATIVE COVENANTS

          4.1. Grantor shall not create or suffer to exist any lien, charge or
encumbrance on the Mortgaged Property or any part thereof, whether superior or subordinate to
the lien of this Leasehold Mortgage, except for (i) the Lease, (ii) the lien of this
Leasehold Mortgage, (iii) the Permitted Encumbrances, and (iv) liens for taxes and other
assessments not delinquent or which are being contested in good faith by appropriate
proceedings.

          4.2. Grantor shall not, without the prior written consent of Lender, (i) sell, assign,
transfer or convey all or any portion of the Mortgaged Property, or any interest
therein, either voluntarily or by operation of law or (ii) Grantor shall not modify, release,
surrender, or terminate the Lease.

5. CONDEMNATION

     5.1. In the event of any proceedings, negotiations or receipt of notice of
any permanent or temporary condemnation or taking of all or any portion of the Premises by
eminent domain, alteration of the grade of any street, or other injury to or decrease in the
value of the Premises by any public or quasi-public authority or corporation (a “Taking”),
Grantor shall notify Lender promptly in writing of such Taking.

     5.2. Lender is hereby authorized, at its option, to appear in any
condemnation proceedings affecting the Premises. Grantor shall not settle or compromise
any claim in connection with any taking through condemnation without the prior written
consent of Grantor, which consent shall not be unreasonably withheld, conditioned or delayed.

     5.3.
In the event of a Taking, all proceeds, awards or other compensation for
such Taking that are payable to Grantor (“Awards”) are hereby assigned and shall be payable
by the authority in question directly to Lender for application as set forth herein. Lender
shall have the right to retain and apply such Awards to the payment of the Obligations, to
restoration of the property not taken or damaged, or both.

6. DAMAGE OR DESTRUCTION

     6.1. Grantor shall promptly give notice to Lender upon obtaining knowledge that any
material portion of the Premises is damaged or destroyed by any casualty. Grantor shall restore,
repair, replace or rebuild the Premises to substantially the condition the Premises were in
immediately prior to such damage or destruction.

-4-

 

     6.2. If an Event of Default shall have occurred and be continuing at the time of any damage
or destruction the insurance proceeds shall be turned over to Lender, and Lender, at its option,
may apply such proceeds to the payment of the Obligations or make such proceeds available to pay
restoration costs.

7. EVENTS OF DEFAULT

     The occurrence of any one or more of the following events shall constitute an “Event of
Default”:

     7.1. If Grantor shall fail to pay any sum required under this Leasehold Mortgage,
the Credit Agreement or the Note on the date such sum is due and payable, and such failure
shall continue uncured for five (5) business days following the giving of notice of such
failure by Lender to Grantor.

     7.2. If Grantor shall fail to pay any sum required under the Lease or if Grantor
shall fail to perform any other covenant or obligation to be performed by Grantor under the
terms of the Lease after the expiration of all applicable cure periods thereunder.

8. REMEDIES

     8.1. Upon occurrence of any Event of Default, (i) the entire principal balance,
all unpaid interest accrued thereon and all other sums secured by this Leasehold Mortgage
shall at the option of Lender become immediately due and payable without presentment, notice,
protest or demand, and/or (ii) Lender may pursue any and all remedies available under the
Note, this Leasehold Mortgage or applicable law.

     8.2. Upon occurrence of any Event of Default, Lender shall have the following rights and
remedies:

          8.2.1. Commence, with or without entry, proceedings to foreclose this Leasehold Mortgage
as a mortgage, or to sell the Mortgaged Property under the judgment or decree of a court or
courts of competent jurisdiction.

          8.2.2. Sell the Mortgaged Property at public auction at some convenient place
in Maryland or in such other place or places as may be permitted or required by law, at such
time, in such manner and upon such terms as may be specified in the notice of sale, which
notice of sale shall state the time when, and the place where, the same is to be made, shall
contain a brief general description of the property to be sold, and shall be sufficiently
given if published once a week for three (3) successive weeks prior to such sale in at least
one newspaper, if any, printed in the English language and customarily published at least
once a week in the place or places where such sale is to take place, and in such other manner
as may be required by law, and such sale may be adjourned by announcement at the time and
place appointed for such sale or for such adjourned sale or sales, and, without further
notice of publication, such sale may be made at the time and place to which the same shall be
so adjourned.

-5-

 

          8.2.3. Assume and perform prospectively all of Grantor’s rights and interest under the Lease.
Lender also shall have the right (but not the obligation) to cure any defaults by Grantor under
the Lease and to exercise any options granted to Grantor under the Lease.

          8.2.4 Exercise any other right or remedy available under applicable law.

     8.3. If Grantor should (i) fail to pay any insurance premium, sums due under
any Permitted Encumbrance or any other sums required hereunder to be paid by Grantor, or (ii)
fail to make necessary repairs, or permit waste, or fail to cure any default under any
Permitted Encumbrance or fail to perform any other covenant or obligation set forth herein,
Lender shall have the right, but not the obligation, in Grantor’s name or in its own name, to
make any payment and take any action which Grantor should have made or taken, or which Lender
deems advisable to protect the security of this Leasehold Mortgage, without prejudice to any
of Lender’s rights or remedies available hereunder or otherwise, at law or in equity. No
such advance or performance shall be deemed to have cured any default or Event of Default.
All such sums advanced by Lender, and all costs and expenses (including reasonable attorneys’
fees) incurred by Lender in taking such actions, shall be due and payable by Grantor
immediately upon demand, shall be secured hereby and the lien therefor shall relate back to
the date of this Leasehold Mortgage.

     8.4. Grantor and Lender agree that upon any sale of all or any portion of the Mortgaged
Property, whether under the above assent to a decree, power of sale or otherwise,
the proceeds of sale shall be applied as follows, unless otherwise required by law: (i) to
the payment of all costs and expenses incident to such sale, including reasonable attorneys’
fees and a commission to the person making such sale equal to two percent (2%) of the gross
proceeds of sale; (ii) to the discharge of all Impositions, with costs and interest, if they
have priority over the lien of the Leasehold Mortgage; (iii) to the payment in full of the
Obligations, including without limitation principal, interest and other charges, in such
order as Lender may elect; (iv) to the payment of all claims of the Lender hereunder whether
the same shall have then matured or not, including interest thereon at the rate set forth
herein; and (v) the balance, if any, to the persons lawfully entitled to receive the same.

9. MISCELLANEOUS

     9.1.
Further Assurances. Grantor shall execute and deliver such further instruments and
perform such further acts as may be reasonably requested by Lender from time to time
to confirm the provisions of this Leasehold Mortgage, to carry out more effectively the
purposes of this Leasehold Mortgage, or to confirm the priority of the lien created by this
Leasehold Mortgage on any property, rights or interest encumbered or intended to be
encumbered by this Leasehold Mortgage.

     9.2. Severability and Savings Clauses. If any provision of this Leasehold Mortgage is
held to be invalid or unenforceable by a court of competent jurisdiction, the other provisions
of this Leasehold Mortgage, and the same provision as applied in other circumstances, shall
remain in full force and effect and shall be liberally construed in favor of Lender in order
to effect the intent of this Leasehold Mortgage.

-6-

 

     9.3. Notices and Communications. All notices and other communications given to or made upon
any party hereto in connection with this Agreement shall, except as otherwise expressly herein
provided, be in writing and mailed via certified mail, sent by Federal Express or other similar
express delivery service for next day delivery, faxed (with a confirming copy sent by such a
express delivery service for next day delivery) or hand delivered to the respective parties, as
follows:

     If to Grantor:

     If to Lender:

MetroPCS Wireless, Inc.

8144 Walnut Hill Lane

Suite 800

Dallas, TX 75231

Attention: Vice President, General Counsel and Secretary

Facsimile: (972) 860-2682

     9.4. Modification, Amendment and Waiver. This Leasehold Mortgage cannot be modified or amended
except by agreement in writing signed by Grantor and Lender. No waiver of any term or terms hereof
shall be effective unless in writing and signed by the party against whom it is sought to be
enforced.

     9.5. Applicable Law. This Leasehold Mortgage is made and delivered in
the jurisdiction in which the Premises are located, and the terms hereof shall be governed by
and construed in accordance with the laws of such jurisdiction. Grantor hereby (i) agrees
that any suit arising out of or relating to this Leasehold Mortgage may at the option of
Lender be brought in a court of record in such jurisdiction or in the courts of the United
States of America located in such state, (ii) consents to the jurisdiction of each such court
in any such suit, and (iii) waives any objection which it may have to the laying of venue in
any such suit in any such courts.

     9.6. Counterparts; Interpretation. This Leasehold Mortgage may be executed in any
number of counterparts, and all such counterparts shall constitute but one instrument.
The use of any gender shall include all genders, as the context may require. The singular
number shall include the plural and the plural the singular as the context may require. The
captions in this Leasehold Mortgage are for convenience of reference only and shall be
referred to in construing this Leasehold Mortgage. Time is of the essence with respect to
performance by Grantor of each of the Obligations and the covenants set forth in this
Leasehold Mortgage.

     9.7 Definitions. Any capitalized terms used herein which are not defined herein shall have
the meanings ascribed to such term in the Credit Agreement.

-7-

 

[Signatures on the following page]

-8-

 

     IN WITNESS WHEREOF, Grantor has executed this Leasehold Mortgage under seal on the date first
above written.

	 	 	 	 	 	 	 	 	 
	WITNESS:	 	GRANTOR:	 	 	 	 
	 	 	 
	 	 	 	 	 
	 

	 	By:
	 	 	 	(SEAL)
	 	 
	 

	 	 	 	 
	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	ss:	 	 
	 

	 	 	)	 	 	 	 	 

     BEFORE ME, a Notary Public in and for the jurisdiction aforesaid, personally appeared
this date                                         , personally well known (or satisfactorily proven) to me
to be the person whose name is subscribed to the foregoing and annexed Leasehold Mortgage

bearing date as of                                         , who, being by me first duly sworn, did depose and
state that he is the            
                             
of                                      
                       ,
a
                                                             which entity is a party to the foregoing and annexed
Leasehold Mortgage and that he, being duly authorized so to do, executed said Leasehold Mortgage on
behalf of said entity and acknowledged the same as its free act and deed for the uses and purposes
therein contained.

     WITNESS
my hand and official seal this ___ day of                     .

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 
	 
	 	 	 	 
	[Notarial Seal ]
	 	 	 	 
	 
	 	 	 	 
	 

	 	My Commission Expires:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

 

 

EXHIBIT “A”

Description of Land

 

 

EXHIBIT E

FORM OF WAIVER AND CONSENT

     THIS WAIVER AND CONSENT (“Consent”), made and entered into this              
        day of        
               
                
  , by and between          
              
                
  a              
               
             (“Landlord”) and
METROPCS WIRELESS, INC., a Delaware corporation (“Lender”).

BACKGROUND:

     A. Landlord is the owner of the land and improvements described on Exhibit
A attached hereto (the “Premises”).

     B. Landlord has leased the Premises to              
               
             (“Tenant”) pursuant to that
certain Lease dated by              
               
             and between Landlord and Tenant (as such lease may
be amended from time to time the “Lease”), a copy of which is attached hereto as Exhibit A.

     C. Lender has made or may make loans to Tenant for the purpose of financing Tenant’s
business, including the acquisition by Tenant of certain telecommunications equipment (the
“Equipment”), which constitutes the personal property of the Tenant and which the Tenant may
remove under the terms of the Lease to the extent permitted thereunder. The Equipment may be
located on the Premises. The portion of the Equipment that Tenant may remove under the Lease
is hereinafter referred to as the “Removable Collateral”.

     D. Lender has required, among other things, that Tenant grant to Lender
security interests in the Equipment, whether now owned or hereafter acquired, a portion of
which is and may hereafter be located on or about the Premises, and that Tenant execute a
leasehold mortgage, conveying to Lender Tenant’s leasehold interest in the Premises as
collateral for the loans to be made by Lender to Tenant.

     NOW, THEREFORE, Landlord and Lender hereby agree as follows:

     1. Landlord hereby consents to Tenant’s granting to Lender a lien on Tenant’s leasehold
interest in the Premises and executing a leasehold mortgage, leasehold deed of trust,
or collateral assignment of lease in favor of Lender (the “Leasehold Mortgage”).

     2. Landlord consents to Tenant’s granting Lender a security interest in the Equipment.
Lender’s security interest and liens in that portion of the Equipment consisting of Tenant’s
nonremovable fixtures shall be subordinate to the title or interest that the Landlord may at
any time have therein. Lender’s security interests and liens in the Removable Collateral
shall be superior to any title or interest that the Landlord may at any time have therein.
During the term of this Consent, Landlord will not assert against any of the Removable
Collateral any title or any statutory, common law, contractual or possessory lien, including,
without limitation, rights of levy or distraint for rent, all of which Landlord hereby
subordinates in favor of Lender.

 

 

     3. Landlord hereby disclaims any and all right, title, interest or claim in or to
the Removable Collateral and any cash or non-cash proceeds of the Removable Collateral.
The Removable Collateral may be affixed to or used in conjunction with the Premises, but
shall remain the Tenant’s personal property and subject to Lender’s security interest and
liens. Landlord agrees not to impound or remove any of the Removable Collateral from the
Premises as long as this Consent is in effect.

     4. Landlord agrees that during the term of the Lease, Lender may conduct public
or private sales of the Equipment at the Premises and that interested parties will be
permitted access to the Premises during normal business hours, with reasonable advance notice
to Landlord, for the purpose of inspecting the Equipment prior to any such sale and for the
purpose of removing the Removable Collateral from the Premises.

     5. Landlord agrees that during the 60-day period following expiration of the
Lease, Lender may, at its discretion, remove, sell or otherwise dispose of the Removable
Collateral as Lender may elect, as long as Landlord shall have received all payments to which
it is entitled under the Lease. Any Removable Collateral still located in the building at the
end of the 60-day period shall be deemed to have been abandoned by the Lender (or by the
purchaser of the same at any public or private sale), and shall no longer be subject to the
Lender’s security interest and lien.

     6. In the event that Tenant defaults in its obligations under the Lease, Landlord hereby
agrees to give Lender written notice of default under the Lease, at the same time and in the
same manner as such notice is given to Tenant and further agrees that Lender may, but
shall not be obligated to, cure such defaults, at its option, within the applicable notice
and cure periods and/or assume the Lease in place of Tenant. Unless and until Lender
expressly notifies Landlord of Lender’s assumption of the Lease to the exclusion of Tenant,
Lender assumes no duty, liability or obligation whatsoever under the Lease.

     7. Lender shall have no obligations under the Lease unless and until Lender delivers to
Landlord written notice of assumption, if Lender elects to assume the Lease. Upon delivery
of such written notice of assumption to Landlord, then Lender (or its designee) shall be
entitled to all rights and benefits of the Lease, and shall be obligated for all of Tenant’s
obligations thereunder. Landlord agrees that, in the event that a default occurs under the
Leasehold Mortgage and Lender, or any agent or designee of Lender, takes possession of the
Premises or forecloses and sells Tenant’s leasehold interest in the Premises, Lender, and its
designees, successors, assigns or transferees shall be permitted to use the Premises for any
purpose permitted under the Lease and applicable law.

     8. Landlord agrees and acknowledges that, in the event of a default under the Leasehold
Mortgage, Lender may exercise any of the remedies contained therein and may assume or
transfer to a third party the Tenant’s interest in the Lease (including any purchase option,
access rights, utility easements and rights of way) pursuant to the terms of the
Leasehold Mortgage. Any transfer of the Lease shall be subject to Landlord’s rights under the
Lease.

-2-

 

     9. Notwithstanding any other provision of this Agreement or the Lease to the contrary,
all of Lender’s right, title and interest in and to the Lease and any obligations thereunder
may be assigned and transferred to an affiliate or successor of Lender without notice to
Landlord, and to other parties with notice to Landlord.

     10. The provisions of this Consent may not be modified or terminated orally, and shall
be binding upon the successors and assigns of the Landlord, and upon any successor owner or
transferee of the Premises and shall be binding upon and inure to the benefit of the Lender
and its successors and assigns.

     11. All notices shall be in writing and shall be mailed by first class registered
or certified mail, postage prepaid, as follows:

	 	(a)	 	If to Lender:

MetroPCS Wireless, Inc.

8144 Walnut Hill Lane

Suite 800

Dallas, TX 75231

Attention: Vice President, General Counsel and Secretary

Facsimile: (972) 860-2682

	 	(b)	 	If to Landlord:

     12. This document shall in all respects be governed by and construed in accordance with
the laws of the State in which the Premises are located.

[signature page follows]

-3-

 

     IN WITNESS WHEREOF, Landlord and Lender has each executed this Waiver and Consent on the date
first above written.

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	METROPCS WIRELESS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT F

FORM OF AMENDED AND RESTATED PLEDGE AGREEMENT

     THIS AMENDED AND RESTATED PLEDGE AGREEMENT (this “Agreement”) executed on December 15,
2005 as of December 22, 2004, is entered into by and between ROYAL STREET COMMUNICATIONS, LLC, a
Delaware limited liability company (“Grantor”), and METROPCS WIRELESS, INC., a Delaware
corporation (“Lender”).

W I T N E S S E T H:

     WHEREAS, pursuant to that certain Second Amended and Restated Credit Agreement, dated
as of even date herewith, by and between Grantor and Lender (as the same may be amended from time
to time, the “Credit Agreement”), Lender has agreed to make one or more loans to Grantor in
accordance with the terms therewith;

     WHEREAS, in order to induce the Lender to enter into the Credit Agreement and to continue to
make the Loans, and in consideration therefor, the Grantor has agreed to execute and deliver this
Agreement to amend and restate that certain Pledge Agreement dated as of December 22, 2004 (the
“Original Pledge Agreement”) and that certain Pledge Agreement dated as of January 24, 2005 (the
“Existing Pledge Agreement”), each between Grantor and Lender (as successor lender to Holdings),
pursuant to which Grantor has granted to Lender a first-priority perfected security interest in all
of the membership or other equity interests, now owned or hereafter acquired by the Grantor or in
which the Grantor has or hereafter acquires any interest (the “Pledged Securities”), in each
Holding Subsidiary to secure Grantor’s obligations under the Credit Agreement and other Loan
Documents; and

     WHEREAS, it is a condition precedent to the making of any further Loans that the Grantor
execute and deliver this Agreement to, among other things, amend and restate the Original Pledge
Agreement and the Existing Pledge Agreement on the terms and conditions set forth herein;

     NOW THEREFORE, for and in consideration of the covenants and provisions set forth herein, and
for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree to amend and restate the Original Pledge Agreement and the Existing Pledge
Agreement and further agree as follows:

     1. DEFINED TERMS. As used in this Agreement, capitalized terms defined in the Credit
Agreement that are not defined herein shall have the meanings ascribed to them therein, and the
following terms shall have the following meanings:

     “Collateral” shall mean the Pledged Securities, including Pledged Securities in which the
Grantor hereafter acquires any interest, and all proceeds thereof.

 

 

     “Obligations” shall mean all indebtedness, obligations, fees and liabilities of any kind of
the Grantor to the Lender under or pursuant to the Credit Agreement, the Note (as defined in the
Credit Agreement), this Agreement and the other Loan Documents.

     2. PLEDGE. Grantor hereby unconditionally and irrevocably pledges,
collaterally assigns and grants to Lender a continuing lien on and security interest in and
to the Collateral (the “Security Interest”) to secure the payment and performance of the
Obligations. The Security Interest is a first priority lien on the Collateral effective as of
the date hereof without the need to execute any further instruments, agreements or documents
other than as specifically set forth herein.

     3. CONTINUING SECURITY. This Agreement shall operate as a continuing security
between Lender and Grantor:

     a. irrespective of any sum or sums which may be paid to the credit of any account
of Grantor with Lender;

     b. notwithstanding the appointment, retirement or removal, at any time, of
a receiver for Grantor;

     c. notwithstanding the exercise by Lender or a receiver of any power conferred by
this Agreement, by any other agreement or document or by law; and

     d. notwithstanding any settlement of account or any other matter or
thing whatsoever;

and shall remain in full force and effect and extend to cover all of the Obligations until a final
release of this Agreement has been executed by Lender.

     4. CERTIFICATES, VOTING, ETC. Upon execution and delivery of this Agreement,
Grantor shall deliver to Lender any and all certificates representing all of the Collateral
with a transfer executed in blank. If at any time, any Holding Subsidiary shall issue any
additional or substitute units, shares of stock, or any other instruments evidencing an
interest in or an obligation of such Holding Subsidiary to Grantor in respect of the Pledged
Securities, Grantor shall promptly pledge, mortgage and deposit with Lender such additional
certificates, instruments or documents as additional security for the Obligations, all of
which additional security shall constitute Collateral (and shall be included within the
definition of “Collateral” hereunder). With respect to any Collateral that is an
“uncertificated security” for purposes of the Code (other than any “uncertificated
securities” credited to a Securities Account under the control of the Lender), Grantor shall
cause the issuer of such uncertificated security to either (i) register the Lender as the
registered owner thereof on the books and records of the issuer or (ii) execute an agreement,
in form and substance satisfactory to the Lender pursuant to which such issuer agrees to
comply with the Lender’s instructions with respect to such uncertificated security without
further consent by such Grantor. Lender shall hold the Collateral solely as security for
the payment and performance of the Obligations. Unless an Event of Default shall have
occurred and be continuing, Grantor shall have the right to vote the Collateral on all

 

 

questions on which the Collateral entitles Grantor to vote and, if necessary, upon written request
of Grantor, Lender shall execute due and timely proxies, powers of attorney and consents in favor
of Grantor as necessary to facilitate such voting; provided however, that Grantor shall not vote
the Collateral in support of any proposal or in any other manner which is inconsistent with the
terms of the Credit Agreement, this Agreement or the other Loan Documents, or which is otherwise
inconsistent with the Grantor’s full and timely performance of the Obligations.

     5. DISTRIBUTIONS. Unless and until an Event of Default shall have occurred and
be continuing, Grantor shall have the right to receive and to retain all cash dividends
and other cash distributions which are paid on account of the Collateral.

     6. RESTRICTIONS ON TRANSFER. Grantor shall not sell or otherwise dispose of,
grant any option with respect to, or create, incur, assume or suffer to exist any
pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise), preference, priority or other security agreement of any kind or nature whatsoever
on (including, without limitation, any conditional sale or other title retention agreement,
any financing or similar statement or notice filed under the Uniform Commercial Code of any
jurisdiction) all or any portion of the Collateral.

     7. REPRESENTATIONS AND WARRANTIES. Grantor hereby represents and warrants to
Lender as follows:

     a. Grantor has good and marketable title to the Collateral, free and clear
of all liens, claims and encumbrances, except liens granted to Lender pursuant to
this Agreement, and full power, authority and legal right to pledge such Collateral
to Lender as provided herein;

     b. The pledge, assignment and delivery of the Collateral pursuant to Section 2
will create a valid, perfected lien on and a valid perfected first priority security
interest in the Collateral in favor of Lender under the Uniform Commercial Code of
the State of New York (the “UCC”), subject to no prior lien (whether consensual,
nonconsensual, statutory or otherwise) and to no agreement purporting to grant any
third party any security interest or other interest in any of the Collateral; no
additional actions by any entity are necessary to create or perfect the Security
Interest; and

     c. The execution, delivery and performance of this Agreement by Grantor will not
(a) contravene any law, statute, rule or regulations, or any order, writ,
injunction or decree of any court or governmental instrumentality, (b) conflict or be
inconsistent with or result in any breach of any of the terms, covenants or
conditions or provisions of or constitute a default under, any indenture, credit
agreement or other agreement, contract or instrument to which Grantor is a party, or
(c) conflict or be inconsistent with or result in a breach of the terms of the
Grantor’s organizational documents.

     8. EVENTS OF DEFAULT. Each of the following shall constitute an Event
of Default hereunder:

 

 

     a. The occurrence of an “Event of Default” under the Credit Agreement or the
Note; or

     b. [Intentionally Removed].

     9. REMEDIES UPON AN EVENT OF DEFAULT. Upon the occurrence of an Event of Default,
after any applicable cure period, and at any time thereafter, Lender may (but shall not be
required to) take any or all of the following actions simultaneously or in any order which it may
choose:

     a. The Lender may from time to time take whatever action at law or in equity may
appear necessary or desirable in order to collect the monies payable hereunder
or secured hereby or to enforce performance and observance of any obligation,
agreement or covenant hereunder;

     b. The Lender may foreclose its security interest in any of the Collateral in any
way permitted by law; and the Lender may thereupon, or at any time thereafter, in
its sole discretion, without notice or demand (except such notice as may be
specifically required by law) and with or without having the Collateral at the time or
place of sale, sell or otherwise dispose of the Collateral, or any part thereof, at
one or more public or private sales, at any time or place, at such price or prices and
upon such terms, either for cash, credit or future delivery, as the Lender may elect.
In the exercise of such remedy, the Lender may sell all of the Collateral as a unit
even though the sales price thereof may be in excess of the amounts remaining unpaid
on the Obligations. To the extent not prohibited by Applicable Law, the Lender is
authorized at any sale or other disposition of the Collateral, if it deems it
advisable so to do, to restrict (with respect to any securities that are part of the
Collateral) the prospective bidders or purchasers thereof to persons who will
represent and agree that they are purchasing for their own account for investment, and
not with a view to the distribution or resale of any of the Collateral. At any such
public sale the Lender may bid for and become the purchaser of all or any part of the
Collateral, and such sale or sales may be held without demand of performance, notice
of intention to sell, the time or place of sale or any other matter, except for
such notice as may be specifically required by law; and the purchaser at any such sale
or other disposition shall thereafter hold the Collateral sold absolutely free from
any claim or right of the Grantor of whatsoever kind, including any right of
redemption of the Grantor, all such rights being hereby expressly waived and released
by the Grantor to the extent permitted by law;

     c. The Lender may proceed by a suit or suits at law or in equity to
foreclose this Agreement and to sell the Collateral or any portion thereof pursuant to
a judgment or decree of a court or courts having competent jurisdiction or pursuant to
a proceeding by a court-appointed receiver. The Grantor hereby assents to the passage
of a decree for the sale of any of the Collateral by any court having jurisdiction.
In any action hereunder, the Lender shall be entitled to the appointment of a receiver
without notice, to peaceably take possession of all or any portion of the Collateral
and to exercise such powers as the court shall confer upon the receiver.
Notwithstanding the foregoing, if an Event of

 

 

Default shall occur and be continuing, the Lender shall be entitled to apply, without notice to
the Grantor, any cash or cash items constituting Collateral in its possession to payment of the
Obligations;

     d. The Lender shall have the right, in its sole discretion, to apply for and have a
receiver appointed by a court of competent jurisdiction in any action taken by Lender to
enforce its rights and remedies hereunder in order to manage, protect and preserve the
Collateral and continue the operation of the business of Grantor and to collect all revenues
and profits thereof and apply the same to the payment of all expenses and other charges of
such receivership, including but not limited to the compensation of the receiver, until a
sale or other disposition of such Collateral shall be finally made and consummated. Lender
and Grantor acknowledge and agree that in connection with any exercise by the Lender of its
rights hereunder to dispose of or operate under the station covered hereby, it may be
necessary to obtain the prior consent or approval of certain governmental authorities. Upon
the exercise by Lender of any power, right, privilege or remedy pursuant to this Agreement
which requires any consent or approval of any governmental authority, Grantor will execute
and deliver, or will cause the execution and delivery of, all applications, certificates and
other documents which may reasonably be required to obtain such approval or consent. Grantor
shall cooperate in good faith with Lender and any purchaser of the Collateral in obtaining
any such approvals or consents;

     e. The Lender may sell its interest hi the Collateral in accordance with any Applicable
Law. Such Collateral or any interest therein may be sold upon such terms and in as many lots
as the person conducting the sale may, in his sole discretion, elect. No readvertisements of
any sale shall be required if the sale is adjourned by announcement, at the time or place set
therefor, of the date, time or place to which the same is to be adjourned;

     f. The Lender may, to the extent not prohibited by Applicable Law, exercise any and all
rights of conversion, exchange or subscription and any other rights, privileges or options
pertaining to any of the Collateral, as if the Lender were the absolute owner thereof,
including (without limitation) the right to exchange, at its discretion, any and all of the
Collateral upon the merger, consolidation, reorganization, recapitalization or
other readjustment of any subsidiary of Grantor;

     g. The Lender may exercise any remedies available to a secured party under the UCC,
regardless of whether or not the UCC actually applies;

     h. The Lender may vote or otherwise exercise any rights accruing to the owner of the
Collateral without notice to or consent of Grantor;

     i. The Lender may commence and prosecute an action, at law or in equity, in any court of
competent jurisdiction, seeking money damages, injunctive or declaratory relief or any other relief
available under applicable law, and take all such actions as may be necessary or desirable to
enforce any order or judgment entered in connection with such action; and/or

 

 

     j. The Lender may exercise any other remedies afforded to Lender pursuant to
the terms of this Agreement.

     All of Lender’s rights and remedies hereunder, under the Credit Agreement and under any and
all other Loan Documents, shall be cumulative and not exclusive, and shall be enforceable
alternatively, successively or concurrently as Lender may, in its sole discretion, deem expedient.
Lender shall have no obligation to preserve rights in the Collateral or marshall any of the
Collateral for the benefit of any person or entity.

     10. EXPENSES. Grantor shall pay, when due, any and all reasonable fees, taxes
or other charges imposed in connection with the Security Interest including, without
limitation, any fees imposed in connection with recordation of instruments necessary or
desirable in order to reflect, effectuate or release the Security Interest.

     11. APPLICATION OF PROCEEDS. Any proceeds received from the exercise of any
remedy hereunder, after deducting therefrom any and all costs and expenses
reasonably incurred in securing possession of any Collateral, in shipping and storing the
Collateral, in preparing the Collateral for sale or otherwise dealing with Collateral prior
to any sale or other disposition thereof and in connection with the sale or other disposition
thereof (including, without limitation, reasonable attorneys’ and accountants’ fees and
brokers’ commissions), shall be applied toward the payment of any and all amounts due under
or with respect to the Obligations, including interest, and all other costs and expenses
reasonably incurred by the Lender in connection with this Agreement which are then due and
payable, in such order and amounts as the Lender, in its sole discretion, may elect. If
such net proceeds should be insufficient to pay the same and a deficiency shall result, the
Grantor shall nevertheless remain liable for such deficiency; and if such proceeds should be
more than sufficient to pay the same, then in case of a surplus, such surplus shall be
accounted for and, if any amounts due under the Obligations remain outstanding, retained by
the Lender, who shall hold the same as security for the payment of the Obligations;
otherwise, such surplus shall be paid over to the Grantor or to whomsoever a court of
competent jurisdiction shall determine to be entitled thereto.

     12. NOTICES. All notices and other communications given to or made upon
any party hereto in connection with this Agreement shall, except as otherwise expressly
herein provided, be in writing and mailed via certified mail, sent by Federal Express or
other similar express delivery service for next day delivery, faxed (with a confirming copy
sent by such a express delivery service for next day delivery) or hand delivered to the
respective parties, as follows:

     If to the Lender:

MetroPCS Wireless, Inc.

8144 Walnut Hill Lane

Suite 800

Dallas, TX 75231

Attention: Vice President, General Counsel and Secretary

     If to Grantor:

 

 

Royal Street Communications, LLC

PO Box 2365

Southampton, NY 11969

 Attention: Robert Gerard

or in accordance with any subsequent written direction delivered in accordance with this section
from the recipient party to the sending party. All such notices and other communications shall,
except as otherwise expressly herein provided, be effective upon delivery if delivered by hand; in
the case of certified mail, three Business Days after the date sent; in the case of any fax, when
received; or in the case of express delivery service, the day after delivery of the notice to such
service with charges prepaid.

     13. ASSIGNABILITY AND PARTIES IN  INTEREST. This Agreement shall not be
assignable by Grantor without the written consent of Lender. This Agreement shall inure
to the benefit of and be binding upon the parties hereto and their respective successors
and permitted assigns.

     14. TERMINATION. This Agreement shall terminate and the Security Interest
shall be released upon the earlier to occur of (i) the payment and satisfaction in full of
the Note and all of the Obligations relating to the Note; or (ii) the mutual agreement of
Grantor and Lender.

     15. CERTAIN WAIVERS; GRANTOR NOT DISCHARGED. The Grantor expressly and
irrevocably waives (to the extent permitted by Applicable Law) presentment, demand of payment
and protest of nonpayment in respect of its Obligations under this Agreement. The obligations
and duties of the Grantor hereunder are irrevocable, absolute, and unconditional and shall
not be discharged, impaired or otherwise affected by (a) the failure of the Lender to assert
any claim or demand or to enforce any right or remedy against the Grantor or any waiver,
consent, extension, indulgence or other action or inaction in respect thereof, (b)
any extension or renewal of any part of the Obligations, (c) any rescission, waiver,
amendment or modification of any of the terms or provisions of the Credit Agreement or any of
the Loan Documents, (d) the release of any liens on or security interests in any part of the
Collateral or the release, sale or exchange of or failure to foreclose against any security
held by or for the benefit of the Lender for payment or performance of the Obligations, (e)
the bankruptcy, insolvency or reorganization of the Grantor or any grantee or any other
persons, (f) the invalidity or unenforceability of the Credit Agreement or any of the Loan
Documents, (g) any change, restructuring or termination of the corporate structure or
existence of the Grantor or any grantee or any restructuring or refinancing of all or any
portion of the Obligations, or (h) any other event which under law would discharge the
obligations of a surety.

     16. TRANSFER OF SECURITY INTEREST. The Lender may transfer to any other person
all or any part of the liens and security interests granted hereby, and all, or any part of
the Collateral which may be in the Lender’s possession after the occurrence and during
the continuance of an Event of Default or, if to a successor Lender in accordance with the
Credit Agreement, at any time. Upon such transfer, the transferee shall be vested with all
the rights and powers of the Lender hereunder with respect to such of the Collateral as is so
transferred, but, with respect to any of the Collateral not so transferred, the Lender shall
retain all of their rights

 

 

and powers (whether given to it in this Agreement, or otherwise). The Lender may, at any
time, assign all or any portion of its rights as the Lender hereunder to any person, in the
Lender’s discretion, including without limitation Bear, Stearns & Co. Inc. or any Affiliate
thereof, and upon notice to the Grantor, but without any requirement for consent or approval by or
from Grantor, and any such assignment shall be valid and binding upon the Grantor, as fully as it
had expressly approved the same.

     17. INDEMNITY; REIMBURSEMENT OF LENDER. The Grantor agrees to indemnify, defend
and hold the Lender harmless from and against any and all claims, demands, losses, judgments
and liabilities (including but not limited to, liabilities for penalties) of any nature, and
to reimburse the Lender for all reasonable costs and expenses, including but not limited to
attorneys’ fees and expenses, arising from this Agreement or the exercise of any right or
remedy granted to the Lender hereunder, except to the extent such claims arise out of
Lender’s gross negligence, willful misconduct or fraud. In no event shall the Lender be
liable for any matter or thing in connection with this Agreement other than to account for
moneys actually received by the Lender in accordance with the terms hereof. All indemnities
contained in this Section 17 and elsewhere in this Agreement shall survive the expiration or
earlier termination of this Agreement.

     18. NO LIABILITY FOR COLLATERAL. Beyond the exercise of reasonable care in
the custody of any Collateral, the Lender shall not, under any circumstance or in any event
whatsoever, have any liability for any part of the Collateral, nor shall the Lender have
any liability for any error or omission or delivery of any kind incurred in the good faith
settlement, collection or payment of any of the Collateral or any monies received in payment
therefor or for any damages resulting therefrom, nor shall this Agreement impose upon the
Lender any obligation to perform any obligation with respect to the Collateral. The costs
of collection, notification and enforcement, including but not limited to, attorneys’ fees
and out-of-pocket expenses, shall be borne solely by the Grantor, whether the same are
incurred by the Grantor or the Lender.

     19. GOVERNING LAW. This Agreement shall be governed by and construed
and interpreted in accordance with the laws of the State of New York, without regard to its
conflict of laws principles, except to the extent that the perfection and the effect of
perfection or non- perfection of any security interests created hereby is governed by the
laws of a jurisdiction other than the State of New York.

     20. COMPLETE AGREEMENT. This Agreement and the Credit Agreement contain the
entire agreement between the parties hereto with respect to the transactions contemplated
herein and, except as provided herein, supersede all previous oral and written and all
contemporaneous oral negotiations, commitments, writings and understandings.

     21. AMENDMENTS AND WAIVERS. This Agreement may be amended only by a writing
signed by the Grantor and Lender. No delay or omission on the part of any party hereto in
exercising any right hereunder shall operate as a waiver of such right or any other
right hereunder or operate to constrain the rights of any other parties hereunder. No waiver
of any one right shall operate as a waiver of any subsequent right.

 

 

     22. INTERPRETATION. The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

     23. CONTINUING LIEN. It is the intent of the parties hereto that (a)
this Agreement shall constitute a continuing agreement as to any and all future, as well as
existing transactions, between the Grantor and the Lender under or in connection with the
Notes, and (b) the security interest provided for herein shall attach to after-acquired as
well as existing Collateral and the Obligations covered by this Agreement shall include any
future advances under or in connection with the Credit Agreement.

     24. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall constitute an original, but all of which when taken
together shall constitute but one contract, and shall become effective when copies hereof
which, when taken together, bear the signatures of each of the parties hereto shall be
delivered or mailed to the Lender.

     25. SEVERABILITY. If any provision of this Agreement shall be held to be
invalid, illegal or unenforceable in any material respect, such provision shall be replaced
with a provision which is as close as possible in effect to such invalid, illegal or
unenforceable provision, and still be valid, legal and enforceable, and the validity,
legality and enforceability of the remainder of this Agreement shall not in any way be
affected or impaired thereby, unless the parties otherwise so provide.

26. VENUE; WAIVER OF JURY TRIAL.

     a. THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURT OF THE UNITED STATES OF AMERICA
LOCATED IN THE STATE OF NEW YORK SOLELY IN RESPECT OF THE INTERPRETATION
AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT OF
THE TRANSACTIONS CONTEMPLATED HEREBY, AND HEREBY WAIVE, AND AGREE NOT TO
ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR THE
INTERPRETATION OR ENFORCEMENT HEREOF OR OF ANY SUCH DOCUMENT, THAT IT IS NOT SUBJECT
THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS
NOT MAINTAINABLE IN SAID COURTS OR THAT THE VENUE THEREOF MAY NOT BE
APPROPRIATE OR THAT THIS AGREEMENT, OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY
SUCH COURTS, AND THE PARTIES HERETO IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO
SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH A STATE OR
FEDERAL COURT. THE PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH COURT JURISDICTION
OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF SUCH DISPUTE.

     b. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY

 

 

CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND
DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS
WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 26(b).

     27. FURTHER ASSURANCES. Grantor agrees, from time to time, at its expense, to
do such further things, to execute, acknowledge, deliver and cause to be duly filed all
such further instruments and documents and take all such actions as the Lender may from time
to time reasonably request for the better assuming and preserving of the security interests
and rights and remedies created hereby, including, without limitation, the execution and
delivery of such financing statements or continuation statements, and amendments thereto, as
may be necessary or desirable, or as Lender may request in order to perfect and preserve the
security interests granted hereby. Grantor hereby authorizes Lender or its agent to file such
financing statements and/or such continuation statements and amendments thereto relating to
all or any part of the Collateral without its signature, where permitted by law. A carbon,
photographic or other reproduction of this Agreement or any financing statement covering the
collateral granted hereby or any part thereof shall be sufficient as a financing statement
where permitted by law.

     28. AMENDMENT AND RESTATEMENT. This amends and restates in its entirety the
Original Pledge Agreement and the Existing Pledge Agreement, and from and after the date
hereof, and subject to the terms hereof, the terms and provisions of the Original
Pledge Agreement and the Existing Pledge Agreement shall be superseded by the terms and
provisions of this Agreement. The Grantor hereby agrees that (i) the liens and security
interest granted by Grantor under the Original Pledge Agreement and the Existing Pledge
Agreement shall be deemed to be liens and security interests securing the indebtedness and
Obligations under the Credit Agreement shall remain outstanding and governed by this
Agreement, and shall not constitute a novation, and (ii) all liens and security interests
securing the indebtedness and Obligations under the Original Pledge Agreement and the
Existing Credit Agreement shall continue in full force and effect to secure the indebtedness
and obligations of Borrower under the Credit Agreement, the Note and the other Loan
Documents.

[remainder of page intentionally blank; signature page follows]

 

 

SIGNATURE PAGE TO

AMENDED AND RESTATED PLEDGE AGREEMENT

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

	 	 	 	 	 	 	 
	 	 	GRANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	ROYAL STREET COMMUNICATIONS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert A. Gerard
 

	 	 
	 

	 	Name:
	 	ROBERT A. GERARD	 	 
	 

	 	Title:
	 	CHIEF EXECUTIVE OFFICER	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	METROPCS WIRELESS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Roger D. Linquist
 

	 	 
	 

	 	Name:
	 	Roger D. Linquist	 	 
	 

	 	Title:
	 	President and CEO	 	 

 

 

EXECUTION COPY

FIRST AMENDMENT TO THE

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is entered into, as of November 2, 2006, by and between ROYAL STREET
COMMUNICATIONS, LLC, a Delaware limited liability company
(“Royal Street”), and
METROPCS WIRELESS, INC., a corporation (“Lender” or
“MetroPCS”).

WITNESSETH:

     WHEREAS, Royal Street and the Lender are parties to that certain Second Amended and
Restated Credit Agreement executed on December 15, 2005 as of December 22, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”); and

     WHEREAS, Royal Street has requested, and MetroPCS has agreed, to amend the Credit
Agreement to provide, among other things, for an increase in the principal amount of the Loan
Commitment Amount from $343,599,250 to $500,000,000 in accordance with and subject to the
terms and conditions set forth herein;

     NOW THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein and other good valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree, subject to the conditions
precedent to this Amendment and intending to be legally bound, to amend the Credit Agreement
as follows:

     1. Capitalized Terms. All capitalized terms used herein shall have the meanings
ascribed thereto in the Credit Agreement, as amended hereby, except as otherwise defined or
limited herein.

     2. Amendments to Section 1.

             
  (a) Section 1 of the Credit Agreement
Defined Terms is hereby modified
and amended by adding the following new definitions in appropriate alphabetical
order:

     “License Subsidiary” shall mean any limited liability company Holding
Subsidiary that has as its sole purpose holding the License(s) in a given
Market (as such term is defined in the LLC Agreement) to be used by Borrower in
connection the Royal Street System in such Market.

     “Lien”
shall mean any interest in assets or property securing an
obligation owed to, or a claim by, a Person other than the owner of the asset or
property, whether such interest is based on the common law, statute or contract,
and whether such obligation or claim is fixed or contingent, and including but
not limited to the lien or security interest arising from a mortgage encumbrance,
pledge, security agreement, conditional sale or trust receipt of a lease,
consignment or bailment for security purposes. For the purposes of this

 

 

Agreement, Borrower and its Subsidiaries shall be deemed to be the owner
of any assets or property which it has acquired or holds subject to a
conditional sale agreement, or leases under a financing lease or other
arrangement pursuant to which title to the assets or property has been
retained by or vested in some other Person in a transaction intended to
create a financing.

     “Operating Subsidiary” shall mean any limited liability company
Holding Subsidiary that has as its sole purpose holding and operating the
Royal Street System and the other assets (other than the License(s)) in a
given Market (as such term is defined in the LLC Agreement).

     “Royal Street” shall mean Royal Street Communications, LLC, a
Delaware limited liability company.

               (b) Section 1
of the Credit Agreement, Defined Terms, is hereby further
modified and amended by deleting the definition of “Borrower” in its entirety and
substituting the following in lieu thereof:

           “Borrower”
shall mean, for purposes of this Credit Agreement and each
of the other Loan Documents (except to the extent that the contest
otherwise clearly requires), individually and collectively, jointly and
severally, Royal Street and all Holdings Subsidiaries that shall execute
and deliver a Counterpart
Signature Page in the form of Exhibit C to this Credit Agreement.

               (c) Section 1 of the Credit Agreement Defined Terms, is hereby
further modified and amended by adding the following at the end of clause (i) of the
definition of “Borrower Change in Control Event”:

     “, except for agreements which would result in a Transfer to GWI in accordance with Article 5 of
the LLC Agreement”

               (d) Section 1
of the Credit Agreement, Defined Terms, is hereby further modified and amended by adding the following new clause (iii) at the end of the definition of
“Borrower Change in Control Event”:

     “, or (iii) Royal Street shall fail to own and control, directly or indirectly, one hundred (100%)
of the membership or other equity interests of each of its Subsidiaries, except any transfers to
GWI of membership or other equity interests of Royal Street’s Subsidiaries pursuant to Article 5
of the LLC Agreement.”

               (e) Section 1 of the Credit Agreement, Defined Terms, is here further modified and
amended by deleting the definition of “Holding Subsidiary” in its entirety and substituting the
following in lieu thereof;

           “Holding Subsidiary” shall mean a Person formed under the laws of the State of
Delaware, all of the capital stock, partnership interests, member interest,

-2

 

or other equity interests of which shall be owned, directly or
indirectly, by Borrower.

               (f) Section 1
of the Credit Agreement, Defined Terms, is hereby further
modified and amended by deleting the definition of “Loan Commitment Amount” in its
entirety and substituting the following in lieu thereof:

     “Loan Commitment Amount” shall mean $500,000,000 or the maximum amount that
Lender is permitted to lend to Borrower pursuant to the Lender Credit Facility.

               (g) Section 1 of the Credit Agreement, Defined Terms, is hereby further
modified and amended by adding the phrase “any Leasehold Mortgages,” immediately
following
the reference to “the Pledge Agreement” in the definition of “Loan Documents”.

               (h) Section 1 of the Credit Agreement, Defined Terms, is hereby further
modified and amended by adding the phrase “or other equity interests” immediately following
the reference to “capital stock” in the definition of “Subsidiary”.

               (i) Section 1 of the Credit Agreement, Defined Terms, is hereby further
modified and amended by replacing the term “Borrower” with “Royal Street” in each of (i)
clauses (ii) and (iii) of the definition of “Commitment Period”, (ii) the definition of
“Equipment and Facilities Lease”, (iii) the definition of “Required Capital Contribution” and
(iv) the definition of “Services Agreement”.

     3. Amendments to Section 2.2.

               (a) Section 2.2
of the Credit Agreement, Procedure for Borrowing, is hereby further
modified and amended by (i) deleting each reference to “Holding
Subsidiary” from clause (b) of such Section, and (ii) adding the
following sentence at the end of clause (b) of such Section:

     Notwithstanding anything to the contrary contained in this Credit Agreement,
all Loans requested under this Credit Agreement shall be requested by
Administrative Borrower as agent for Borrowers, and all proceeds of such Loans
shall be paid to Administrative Borrower as agent for Borrowers.

               (b) Section 2.2 of the Credit Agreement, Procedure for Borrowing, is hereby
further modified and amended by adding the following new clause (h) at the end of such
Section:

     h. Each Borrower hereby irrevocably appoints Royal Street as the borrowing
agent and attorney-in-fact for all Borrowers (“Administrative Borrower”)
which appointment shall remain in full force and effect unless and until Lender
shall have received prior written notice signed by each Borrower that such
appointment has been revoked and that another Borrower has been appointed
Administrative Borrower. Each Borrower hereby irrevocably appoints and authorizes
Administrative Borrower (i) to provide Lender with all notices with respect to
Loans obtained for the benefit of any Borrower and all other notices

-3

 

and instructions under this Credit Agreement and (ii) to take such
action as Administrative Borrower deems appropriate on its behalf to
obtain Loans and to exercise such other powers as are reasonably
incidental thereto to carry out the purposes of this Agreement. It is
understood that the handling of the Loans and collateral of Borrower in a
combined fashion, as more fully set forth herein, is done solely as an
accommodation to Borrower in order to utilize the collective borrowing
powers of Borrower in the most efficient and economical manner and at
their request, and that Lender shall not incur liability to any Borrower
as a result hereof. Each Borrower expects to derive benefit, directly or
indirectly, from the handling of the Loans and the collateral in a
combined fashion since the successful operation of each Borrower is
dependent on the continued successful performance of the integrated
group.

     4. Amendment to Section 2.4.
Section 2.4 of the Credit Agreement
Conditions Precedent to Lender’s Obligation to Make Any Loan, is hereby
modified and amended by deleting clause (iii) of such Section and substituting the
following in lieu thereof:

     Lender shall have a perfected first priority security interest in
all of the membership interests in all of Borrower’s
Subsidiaries.

     5. Amendment to Section 2.5. Section 2.5 of the Credit Agreement,
Security Agreement; Leasehold Mortgages, is hereby modified and amended by
deleting clause (a)(iii) of such Section in its entirety and by substituting the
following in lieu thereof:

     To
the extent required by Lender in writing, a first priority lien on all
real property interests of Borrower, including, without limitation, all
Leases, including capital leases, and all real property owned by Borrower in
fee simple. Lender’s liens in the foregoing shall be created by and subject
to the provisions of one or more Leasehold Mortgages, substantially in the
form of Exhibit D, entered, to the extent required by Lender in writing,
with respect to each Lease, parcel of real property or other real property
interest of Borrower.

     6. Amendment to Section 5.4.
Section 5.4 of the Credit Agreement, Subsidiaries, is hereby amended and restated in its
entirety as follows:

     5.4 Subsidiaries.

     a. Royal
Street shall form one or more direct or indirect
Operating Subsidiaries and License Subsidiaries. As soon as practicable after
receipt of any and all required FCC approvals, Royal Street shall contribute one
or more of such Licenses to each of the License Subsidiaries, as contemplated by
Section 2.5(d) of the LLC Agreement, and Royal Street shall contribute all of the
other assets to each Operating Subsidiary in accordance with the Market to be
served by such License Subsidiary.

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     b. Royal
Street shall cause each of its direct or indirect
Subsidiaries to become a party to this Credit Agreement, the Security
Agreement and the Pledge Agreement and to be jointly and severally liable
for all obligations of Borrower hereunder by executing a copy of the form
of counterpart signature page substantially in the form of Exhibit C
attached hereto (or in such other form as may be agreed by Borrower and
Lender) and made a part thereof.

     7. Amendment to Section 5.12.
Section 5.12 of the Credit Agreement,
Leasehold Mortgages, is hereby modified and amended by (i) inserting the phrase
“To the extent required by Lender,” at the beginning of clause (a) of such Section and
(ii) adding the fallowing sentence at the end of clause (c) of such Section;

To the extent Borrower is not required
by Lender to execute a Leasehold Mortgage with respect to any real
property leased to Borrower, at the written request of Lender Borrower shall use commercially reasonable efforts to obtain a
landlord’s waiver and collateral access agreement, in form and substance reasonably satisfactory to Lender,
with respect to each such leased real property.

     8. Amendment
to Section 5.13. Section 5.13 of the Credit
Agreement, Negative Covenants, is hereby modified and amended by deleting the
phrase “except for transfers of Licenses to Holding Subsidiaries” from clause (a) of
such Section and by substituting “except for transfers of Licenses to the License
Subsidiaries and transfers of other assets to Operating Subsidiaries” in lieu thereof.

     9. Amendments
to Sections 6.1. Section 6.1 of the Credit Agreement, Events of Default, is
hereby further modified and amended by deleting “or Borrower shall fail to transfer the Licenses to
Holding Subsidiaries as required in Section 5.4 hereof” in clause (b) of such
Section, Breaches of Other Covenants, and by substituting “Borrower shall fail to
transfer the Licenses to License Subsidiaries or the other assets Operating
Subsidiaries, in each case, as required in Section 5.4 hereof” in lieu thereof.

     10. No
Other Amendments. Except for the amendments, releases, authorizations and
waivers set forth above, the text of the Credit Agreement and the other Loan Documents shall remain
unchanged and in full force and effect.

     11. Conditions
to Effectiveness. This Amendment will be effective as of the date first
written above (the “Effective Date”), subject to the occurrence of each of the
following on or before such date:

     (a) Lender
shall have received counterparts hereof duly executed by Borrower;

     and

     (b) All
of the representations and warranties of Borrower set forth in
the Credit Agreement and this Amendment shall be true and correct in all
material respects with the same effect as though such representations and
warranties had been made on and as of the Effective Date as though made on
and as of such date.

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     12. Representations and Warranties. Royal Street agrees,
represents favor of Lender as follows:

               (a) This Amendment has been executed and delivered by a duly authorized
representative of Royal Street, and the Credit Agreement, as modified and amended by this
Amendment, constitutes a legal, valid and binding obligation of Royal Street and is enforceable
against Royal Street in accordance with its terms, except as may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws or (ii) general
principles of equity;

             
  (b) Except as reflected on Exhibit 1, each representation or warranty of Royal Street
set forth in the Credit Agreement is hereby restated and reaffirmed as true and correct in
all material respects on and as of the Effective Date, and after giving effect to this
Amendment, as if such representation or warranty were made on and as of the Effective Date of,
and after giving effect to, this Amendment;

               (c) No Event of Default (or other event which if not timely cured or corrected
would with the passage of time become an Event of Default) with respect to Royal
Street has occurred and is continuing; and

               (d) As of the date hereof, Royal Street is solvent after giving effect to the
transactions contemplated herein.

     13. Effect on the Credit Agreement. Except is specifically provided herein, the
Credit Agreement and the Loan Documents shall remain in full force and effect, and is hereby
ratified, reaffirmed and confirmed. This Amendment shall be deemed to be a Loan Document
for all purposes.

     14. Counterparts. This Amendment may be executed in any number of separate
counterparts and by the different parties hereto on separate counterparts, each of which shall
be deemed an original and all of which, taken together, shall be deemed to constitute one and the
same instrument. In proving this Amendment in any judicial proceedings, it shall not be
necessary to produce or account for more than one such counterpart signed by the party against
whom such enforcement is sought. Delivery of an executed counterpart of this Amendment by
telefacsimile or other electronic method of transmission shall be equally as effective as
delivery of an original executed counterpart of this Amendment.

     15. Law of Contract. This Amendment shall be governed and construed and
interpreted in accordance with the laws of the State of New York, without regard to its conflict of
laws principles.

-6

 

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first written above.

	 	 	 	 	 
	BORROWER: 	ROYAL STREET COMMUNICATIONS, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Robert A. Gerard
 	 
	 	 	Name:  	Robert A. Gerard 	 
	 	 	Title:  	Chief Executive Officer and Chairman of the Management Committee 	 
	 

	 	 	 	 	 
	Lender: 	METROPCS WIRELESS, INC., 

a Delaware corporation

 	 
	 	By:  	/s/ Roger D. Linquist
 	 
	 	 	Name:  	Roger D. Linquist 	 
	 	 	Title:  	President and Chief Executive Officer 	 

-7

 

	 	 	 	 	 

EXHIBIT 1 TO FIRST AMENDMENT TO SECOND AMENDED AND RESTATED

CREDIT AGREEMENT

MetroPCS Communications, Inc., an affiliate of Royal Street’s largest current customer, MetroPCS
Wireless, Inc. (“MetroPCS”), was recently sued for patent infringement in United States District
Court for the Eastern District of Texas, Marshall Division, Leap Wireless International, Inc. et al
v. MetroPCS Communications, Inc., Case No. 2:062CV240-TJW (Jury). MetroPCS or an affiliate thereof
has begun offering wireless service in portions of Florida using capacity purchased from Royal
Street on wireless systems owned by Royal Street (“the Royal Street Systems”) which are technically
and operationally compatible with the MetroPCS wireless systems that are the basis for the pending
suit. Based on the above-identified lawsuit, the then imminent, and now actual, launch of the
Royal Street Systems, and the technical similarity between the accused MetroPCS systems and the
Royal Street Systems, Royal Street expects, but is not certain, that it will be (1) named as a
defendant in the above-identified, pending patent infringement suit, or (2) sued separately for
alleged infringement of the same patent that is at issue in that suit. To date, however, Royal
Street has received no notice of any such suit and no such suit is currently pending against Royal
Street. Royal Street filed a declaratory judgment action on September 22, 2006 in the United States
District Court for the Middle District of Florida. The defendants therein, Leap Wireless
International, Inc. and Cricket Communications, Inc., have filed a motion to dismiss that
declaratory action or in the alternative to transfer the declaratory judgment section to the
Eastern District of Texas, which motion remains pending.

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