Document:

ex4-1.htm

    Exhibit 4.1

     

     

     

    
      EXECUTION
VERSION

       

      ESCROW
AGREEMENT

       

      This
ESCROW AGREEMENT (this “Escrow
Agreement”) is made and entered into as of April 12, 2010 among New
Communications Holdings Inc., a Delaware corporation (the “Company”), Frontier Communications Corporation, a
Delaware corporation (“Frontier”), The Bank of New York Mellon, as
Trustee under the Indenture referred to below (in such capacity, the “Trustee”)
and The Bank of New York Mellon, as escrow agent (in such capacity, the “Escrow
Agent”) and J.P. Morgan Securities Inc. (“Representative”), as the representative of
the several initial purchasers listed in Schedule 1 to the Purchase Agreement
(as defined herein) (collectively, the “Initial Purchasers”), in favor of Holders (as
defined in the Indenture) of the Notes (as defined herein) issued on the date
hereof by the Company under the Indenture referred to below.

       

      W
I T N E S S E T H

       

      WHEREAS,
the Company, Frontier and the Initial Purchasers are parties to a Purchase
Agreement dated March 26, 2010 (as such agreement may be amended, the “Purchase  Agreement”), pursuant to
which the Company will issue and sell to the Initial Purchasers an aggregate of
$500,000,000 principal amount of its 7.875% Senior Notes due 2015 (the “2015
Notes”), an aggregate of $1,100,000,000 principal amount of its
8.250% Senior Notes due 2017 (the “2017 Notes”), an aggregate of $1,100,000,000
principal amount of its 8.500% Senior Notes due 2020 (the “2020
Notes”) and an aggregate of $500,000,000 principal amount of its
8.750% Senior Notes due 2022 (the “2022 Notes”, and together with the 2015
Notes, the 2017 Notes and the 2020 Notes, the “Notes”);

       

      WHEREAS,
the Company and the Trustee have entered into that certain Indenture dated as of
the date hereof (as amended, restated, supplemented or otherwise modified from
time to time, the “Indenture”), pursuant to which the Company is
issuing the Notes on the date hereof;

       

      WHEREAS,
on the date hereof, pursuant to the Purchase Agreement, (a) the Initial
Purchasers are required to deposit, or direct the deposit, into the Escrow
Account (as defined herein) of $3,136,000,000 (representing the aggregate
purchase price paid by the Initial Purchasers for the Notes) (the “Net Offering
Proceeds”), (b) the Initial Purchasers are required to deposit, or direct
the deposit, into the Escrow Account of $64,000,000 (representing the difference
between the purchase price paid by the Initial Purchasers for the Notes and the
resale price of the Notes) (the “Initial Purchasers’
Discount” and together with the Net Offering Proceeds, the “Gross Offering
Proceeds”), and (c) Frontier is required to deposit, or direct the
deposit, into the Escrow Account the Additional Commitments (as defined herein),
which amounts specified in clauses (a), (b) and (c) above in the aggregate
shall, at a minimum, be an amount sufficient to redeem the Notes in cash at the
Special Redemption Price (as defined herein) on October 1, 2010, and shall be
held by the Escrow Agent for the benefit of the Trustee and the ratable benefit
of the Holders as their interests may appear;

       

      WHEREAS,
in the event that (x) the Spin-Off and the Merger (each as defined herein) have
not been consummated substantially as described in the Offering Memorandum (as
defined herein) by 11:59 p.m. (New York City time) on October 1, 2010, or (y)
the Merger Agreement (as defined herein) is terminated in accordance with its
terms prior to or on October 1, 2010, the Company
shall be required to redeem the Notes at the Special Redemption Price on the
Special Redemption Date (as defined herein) pursuant to the special redemption
provisions of the Indenture (the “Special Redemption
Obligations”);

       

       

       

       

      
        
          
          

        

        
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      NOW,
THEREFORE, in consideration of the premises herein contained, the Company,
Frontier, the Trustee, the Representative (on behalf of the Initial Purchasers)
and the Escrow Agent hereby agree, for the benefit of the Trustee and for the
ratable benefit of the Holders, as follows:

       

      SECTION
1.          Certain Definitions;
Appointment; Deposit and Investment.

       

      1.1           Definitions.

       

      “Additional
Commitments” means $125,517,708.33 in cash, which represents the
sum of (i) $18,484,375.00 (which represents interest on the aggregate principal
amount of the 2015 Notes at a rate of 7.875% per annum, as calculated in
accordance with the terms of the Indenture and the Notes, from and including the
date hereof to but excluding October 1, 2010), (ii) $42,602,083.33 (which
represents interest on the aggregate principal amount of the 2017 Notes at a
rate of 8.250% per annum, as calculated in accordance with the terms of the
Indenture and the Notes, from and including the date hereof to but excluding
October 1, 2010), (iii) $43,893,055.56 (which represents interest on the
aggregate principal amount of the 2020 Notes at a rate of 8.500% per annum, as
calculated in accordance with the terms of the Indenture and the Notes, from and
including the date hereof to but excluding October 1, 2010) and (iv)
$20,538,194.44 (which represents interest on the aggregate principal amount of
the 2022 Notes at a rate of 8.750% per annum, as calculated in accordance with
the terms of the Indenture and the Notes, from and including April 12, 2010 to
but excluding October 1, 2010).

       

      “Business
Day” means a day other than a Saturday, Sunday or other day on
which banking institutions are authorized or required by law, regulation or
executive order to close in New York City.

       

      “Cash
Equivalents” means (i) non-interest bearing bank deposits; (ii)
interest bearing bank deposits; (iii) investments in any readily accessible
money market fund with assets under management of at least $10 billion that
invests solely in U.S. Government Securities; provided, however, that the
Escrowed Funds deposited in any such fund may not represent more than 2.0% of
the assets in such fund; (iv) investments in any prime money market fund with
assets in excess of $35 billion, provided that no more than $750 million of the
Escrowed Funds may be invested in any single such fund; or (v) securities issued
or directly and fully guaranteed or insured by the United States of America or
any agency or instrumentality thereof having maturities of not more than six
months from the date hereof.

       

      “Distribution
Agreement” means the Distribution Agreement, dated as of May 13,
2009, by and between Verizon and the Company, as such agreement may be amended,
modified or supplemented from time to time.

       

      “Escrow
Account” means the escrow account titled “New Communications
Holdings Inc. Escrow Account” established hereby with the Escrow
Agent.

       

       

       

       

      
        
          
          

        

        
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      “Escrow
Agent” shall mean the Person named as the “escrow agent” in the
first paragraph of this Escrow Agreement until a successor escrow agent shall
have become such, in accordance with Section 7 hereof, and thereafter “Escrow
Agent” shall mean the Person who is then the Escrow Agent
hereunder.

       

      “Escrow End
Date” means October 1, 2010.

       

      “Escrowed
Funds” means the aggregate amount of the Gross Offering Proceeds
plus the aggregate amount of the Additional Commitments plus the Top-Up
Commitments (if required), including all investments thereof made hereunder,
plus all interest, dividends and other distributions and payments thereon
received by the Escrow Agent.

       

      “Merger”
shall have the meaning ascribed thereto in the Purchase Agreement.

       

      “Merger
Agreement” means the Agreement and Plan of Merger, dated as of May
13, 2009, among Verizon, the Company and Frontier, as such agreement may be
amended, modified or supplemented from time to time.

       

      “Offering
Memorandum” means the final offering memorandum of the Company,
dated March 26, 2010, relating to the offering of the Notes, including the
information incorporated therein by reference.

       

      “Paying
Agent” shall have the meaning ascribed thereto in the
Indenture.

       

      “Person” or
“person” means a natural person,
corporation, company, joint venture, individual business trust, trust
association, partnership, limited partnership, limited liability company or
other entity.

       

      “SEC” means
the United States Securities and Exchange Commission.

       

      “Special
Payment” shall have the meaning ascribed thereto in the
Distribution Agreement (as defined herein).

       

      “Special Redemption
Price” means (i) $500,000,000 (which represents the portion of the
Gross Offering Proceeds attributable to the 2015 Notes, or 100% of the issue
price thereof), (ii) $1,100,000,000 (which represents the portion of the Gross
Offering Proceeds attributable to the 2017 Notes, or 100% of the issue price
thereof), (iii) (i) $1,100,000,000 (which represents the portion of the Gross
Offering Proceeds attributable to the 2020 Notes, or 100% of the issue price
thereof) and (iv) $500,000,000 (which represents the portion of the Gross
Offering Proceeds attributable to the 2022 Notes, or 100% of the issue price
thereof), plus in each case accrued and unpaid interest on the Notes, as
calculated in accordance with the terms of the Indenture and the Notes, from and
including the date hereof to, but excluding, the Special Redemption Date (as
defined herein).

       

      “Spin-Off”
means the spin-off, immediately prior to the Merger, of the Company to the
stockholders of Verizon (as defined herein), pursuant to the Distribution
Agreement.

       

       

       

       

      
        
          
          

        

        
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      “Top-Up
Commitment” means an amount in cash equal to (x) the Special
Redemption Price (calculated, for the purpose of this definition, assuming the
Special Redemption Date is October 4, 2010) minus (y) the aggregate amount of
Escrowed Funds (not including, for this purpose, the Top-Up Commitment) as of
9:00 a.m. (New York City time) on September 30, 2010, provided that in no event
shall the Top-Up Commitment be less than $0.

       

      “Transaction
Parties” means the Company and Frontier.

       

      “Transactions” shall have the meaning ascribed
thereto in the Purchase Agreement.

       

      “U.S. Government
Securities” means securities that are (i) direct obligations of
the United States of America for the timely payment of which its full faith and
credit is pledged or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America
which, in either case, are not callable or redeemable at the option of the
issuer thereof and shall also include (a) a depository receipt issued by a bank
(as defined in Section 3(a)(2) of the Securities Act of 1933, as amended), as
custodian, with respect to any such U.S. Government Securities or a specific
payment of principal of or interest on any such U.S. Government Securities held
by such custodian for the account of the holder of such depository receipt;
provided, however,
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the U.S. Government
Securities or the specific payment of principal of or interest on the U.S.
Government Securities evidenced by such depository receipt and (b) reverse
repurchase agreements in respect of the securities described above.

       

      “Verizon”
means Verizon Communications Inc., a Delaware corporation.

       

      All
capitalized terms used herein without definition shall have the respective
meanings ascribed to them in the Indenture.

       

      1.2          Appointment of the Escrow
Agent

       

      Each of
the Company, Frontier and the Initial Purchasers hereby appoint The Bank of New
York Mellon as Escrow Agent in accordance with the terms and conditions set
forth herein and The Bank of New York Mellon hereby accepts such appointment.
Any and all Escrowed Funds shall be deposited with the Escrow Agent in the
Escrow Account, in U.S. Dollars, by wire transfer. The Escrow Agent shall not be
required, or have any duty, to notify anyone of any payment or maturity under
the terms of any instrument deposited hereunder, nor to take any legal action to
enforce payment of any check, note or security deposited hereunder or to
exercise any right or privilege which may be afforded to the holder of any such
security.

       

      1.3          Establish Account

       

      The
Escrow Agent shall establish and maintain the Escrow Account herein provided for
in accordance with the terms of this Escrow Agreement.

       

       

       

      
        
          
          

        

        
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      1.4         
Deposit of Escrowed
Funds

       

      On the
date hereof and concurrently with the closing of the sale of the Notes, (x) the
Initial Purchasers shall deposit, or direct the deposit of, at the direction of
the Company and pursuant to the Purchase Agreement, the Net Offering Proceeds,
(y) the Initial Purchasers shall deposit, or direct the deposit of, pursuant to
the Purchase Agreement, the Initial Purchasers’ Discount, and (z) Frontier shall
deposit, or direct the deposit of, the Additional Commitments, into the Escrow
Account.

       

      SECTION
2.          Maintaining the Escrow
Account

       

      Except as
otherwise provided by the provisions of Section 4 and Section 9
hereof:

       

      (a)           Until
(i) the Escrowed Funds have been disbursed in accordance with the provisions of
Sections 4(a) and 4(b) and the Merger Confirmation Certificate (as defined
herein) has been provided, or (ii) the Special Redemption Price has been paid in
full in accordance with the provisions of Sections 4(c), the Company will
maintain the Escrow Account with the Escrow Agent.

       

      (b)           It
shall be a term and condition of the Escrow Account, notwithstanding any term or
condition to the contrary in any other agreement relating to the Escrow Account
(other than this Escrow Agreement), that no amount (including interest,
dividends or other distributions or payments on Escrow Investments (as defined
herein)) shall be paid or released to or for the account of, or withdrawn by or
for the account of, the Company, Frontier, the Initial Purchasers or any other
Person from the Escrow Account except in accordance with the provisions of this
Escrow Agreement.

       

      (c) The
Escrow Account shall be subject to such applicable laws, and such applicable
regulations of the Board of Governors of the Federal Reserve System and of any
other appropriate banking or governmental authority, as may now or hereafter be
in effect.

       

      SECTION
3.           Investing of Escrowed
Funds

       

      Prior to
the occurrence of an Event of Default (as defined in the Indenture), Escrowed
Funds held by the Escrow Agent in the Escrow Account shall be invested and
reinvested by the Escrow Agent in the name of the Escrow Agent in Cash
Equivalents (such investments and reinvestments, the “Escrow
Investments”), at the written direction of the Company or, failing
such written direction, Frontier; and after an Event of Default of which a
Responsible Officer (as defined in the Indenture) of the Trustee has received
written notice or in the absence of any written direction from the Company or
Frontier, the Escrow Agent shall invest and reinvest the Escrowed Funds held by
the Escrow Agent in the Escrow Account in the name of the Escrow Agent in
interest bearing bank deposits. In no event shall the Escrow Agent or the
Company be liable for any loss in the Escrow Investments unless such loss
results from Escrowed Funds being invested in investments other than Cash
Equivalents or such party’s bad faith, gross negligence or willful
misconduct.

       

       

       

       

      
        
          
          

        

        
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      SECTION
4.          Disbursements

       

      The
Escrow Agent shall hold the Escrowed Funds in the Escrow Account and release the
same only as follows:

       

      (a)           If
the Escrow Agent receives at or prior to 11:00 a.m. (New York City time) on
the Escrow End Date, a release certificate signed by an authorized officer of
the Company and an authorized officer of Frontier in the form attached hereto as
Exhibit A (the
“Spin-Off/Merger Release
Certificate”), the Escrow Agent shall release to, or at the
written direction of the Company, the Net Offering Proceeds.

       

      (b)           Promptly
upon consummation of the Merger, Frontier shall deliver to the Escrow
Agent a certificate signed by an authorized officer of Frontier in the form
attached hereto as Exhibit B (a “Merger Confirmation
Certificate”) certifying that the Merger has been consummated, upon
receipt of which the Escrow Agent shall as promptly as practicable release (A)
first, to the Initial Purchasers pursuant to the wire instructions detailed in
Section 10. 16, an amount equal to the Initial Purchasers’ Discount, and (B)
second, to, or at the written direction of, Frontier the remainder of the
Escrowed Funds held in the Escrow Account.

       

      (c)           If
(i) the Escrow Agent receives, at or prior to 11:00 a.m. (New York City
time) on
the Escrow End Date, a certificate signed by an authorized officer of the
Company (a “Company Termination
Certificate”) and a certificate signed by an authorized officer of
Frontier (a “Frontier Termination
Certificate”, and together with a Company Termination Certificate,
the “Termination
Certificates”), each in the form attached hereto as Exhibit C,
certifying that the Merger Agreement has been terminated in accordance with its
terms (the first Business Day on which the Escrow Agent has possession of both
Termination Certificates, the “Termination  Date”), (ii) the Escrow Agent has not received, at
or prior to 11:00 a.m. (New York City time) on the Escrow End Date, a
Spin-Off/Merger Release Certificate, or (iii) the Escrow Agent has not received,
at or prior to 11:59 p.m. (New York City time) on the Escrow End Date (such time
on such date, the “Cut-Off
Time”) a Merger Confirmation Certificate, the Escrow Agent shall
promptly notify the Trustee in writing on the Termination Date (in the case of
clause (i) of this sentence) or the Escrow End Date (in the case of clause (ii)
or (iii) of this sentence) (the applicable date, the “Redemption Notice
Date”) that Notes are to be redeemed on (x) the Redemption Notice
Date (in the case of clause (ii) of this sentence, or if the Termination
Certificates are received prior to 11:00 a.m. on the Redemption Notice Date in
the case of clause (i) of this sentence), or (y) the next Business Day following
the Redemption Notice Date (in all other cases) (the applicable date, the “Special Redemption
Date”) in accordance with the applicable provisions of the
Indenture. The Trustee shall promptly notify each Holder (with a copy to the
Escrow Agent) in accordance with the applicable provisions of the Indenture that
all of the outstanding Notes shall be redeemed on the Special Redemption Date
automatically and without any further action by the Holder through the
facilities of DTC. At or prior to 2:00 p.m. (New York City time) on the Special
Redemption Date, the Escrow Agent shall as promptly as practicable release (A)
first, in an amount equal to the lesser of (1) the Escrowed Funds and (2) the
Special Redemption Price, to the Paying Agent as per the written instructions of
the Trustee (which shall specify the Special Redemption Price and the wire
payment instructions) and (B) second, to, or at the written direction of,
Frontier the remainder of the Escrowed Funds held in the Escrow
Account.

       

       

       

       

      
        
          
          

        

        
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      (d)           As
soon as practicable after notice of redemption is given pursuant to Section
4(c), and in any case at or prior to 11:00 a.m. (New York City time) on the
Escrow End Date, the Escrow Agent shall notify the Paying Agent, the Trustee,
the Company and Frontier of the amount of the Escrowed Funds on deposit in the
Escrow Account as of the date such notice of redemption is received or the
Escrow End Date, as applicable, and the Paying Agent shall calculate the Special
Redemption Price and shall notify the Escrow Agent, the Trustee, the Company and
Frontier if the amount of the Escrowed Funds is less than the Special Redemption
Price and the amount of such shortfall. Frontier further agrees to pay to the
Paying Agent, at or prior to 2:00 p.m. (New York City time) on the Special
Redemption Date, cash in the amount of funds necessary to permit all outstanding
Notes to be redeemed on the Special Redemption Date at the Special Redemption
Price in accordance with the applicable provisions of the
Indenture.

       

      (e)           In
the event the Net Offering Proceeds have been released to the Company
pursuant
to Section 4(a) but for any reason the Merger is not consummated at or prior to
the earlier of (i) the Cut-Off Time and (ii) 2:00 p.m. (New York City time) on
the Business Day following such release of the Net Offering Proceeds, the
Company shall promptly arrange for the redeposit of the Net Offering Proceeds
into the Escrow Account, such redeposit in no event to be made later than 2:00
p.m. (New York City time) on the Special Redemption Date. For the avoidance of
doubt, a redeposit pursuant to this Section 4(e) shall not, in and of itself, be
sufficient to require the Escrow Agent to disburse the Escrowed Funds pursuant
to Section 4(c), and shall in no way limit the rights of the Transaction Parties
established in Sections 4(a) and 4(b).

       

      (f)           If
by September 30, 2010, neither (i) the Escrowed Funds have been disbursed
in accordance with the provisions of Sections 4(a) and 4(b), nor (ii) the
Special Redemption Price has been paid in full in accordance with the provisions
of Section 4(c), then Frontier shall deposit, or direct the deposit of, the
Top-Up Commitment into the Escrow Account on September 30, 2010.

       

      (g)           Notwithstanding
anything in this Escrow Agreement to the contrary, the Escrow
Agent shall disburse Escrowed Funds as directed pursuant to a final judgment
(without further right of appeal) of a court of competent jurisdiction;
provided, however, that the Escrow Agent shall provide notice thereof to the
Company and Frontier prior to such disbursement.

       

      SECTION
5.          Conditions to Release of
Escrowed Funds

       

      The
release of the Net Offering Proceeds pursuant to Section 4(a) above is subject
to the following additional conditions (based solely on the Spin-Off/Merger
Release Certificate confirming that such conditions have been
satisfied):

       

      (a)           The
Company expects the Spin-Off to be consummated substantially as described
in the Offering Memorandum promptly upon release of the Net Offering Proceeds;
and

       

      (b)           Each
of the Transaction Parties expects the Merger to be consummated substantially
as described in the Offering Memorandum promptly following the consummation of
the Spin-Off.

       

       

       

       

      
        
          
          

        

        
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      SECTION
6.          Representations and
Warranties

       

      (a)           Each
of the Transaction Parties hereby severally represents and warrants that:

       

      (1)           This
Escrow Agreement has been duly authorized, executed and delivered by the
applicable Transaction Party and, when duly executed and delivered in accordance
with its terms by each of the other parties hereto, will constitute a valid and
legally binding agreement of the applicable Transaction Party enforceable
against the applicable Transaction Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors’ rights generally or by equitable
principles relating to enforceability.

       

      (b)           The
Escrow Agent hereby represents and warrants that:

       

      (1)           Neither
the execution, delivery or performance by the Escrow Agent of this
Escrow Agreement, nor compliance with the terms and provisions hereof, conflicts
or will conflict with or results or will result in a breach or violation of any
of the terms, conditions or provisions of, or will require any consent or
approval under, any law, governmental rule or regulation or the charter
documents, as amended, or bylaws, as amended, of it or any similar instrument
binding on it or any order, writ, injunction or decree of any court or
governmental authority against it or by which it or any of its properties is
bound or of any indenture, mortgage or contract or other agreement or instrument
to which it is a party or by which it or any of its properties is bound, or
constitutes or will constitute a default thereunder or results or will result in
the imposition of any lien upon any of its properties.

       

      (2)           The
execution, delivery and performance of this Escrow Agreement has been duly
authorized by all necessary corporate action on the part of the Escrow Agent and
does not require any stockholder approval, or approval or consent of any trustee
or holder of any indebtedness or obligations of it, and this Escrow Agreement
has been duly executed and delivered by it and constitutes its legal, valid and
binding obligations enforceable against it in accordance with the terms
hereof.

       

      (3)           There
are no pending or, to the Escrow Agent’s knowledge, threatened actions,
suits, investigations or proceedings (whether or not purportedly on behalf of
it) against or affecting it or any of its property before or by any court or
administrative agency (except, in the case of the immediately following clause
(i), as set forth in Part I, Item 3 – Legal Proceedings of the Form 10-K of The
Bank of New York Mellon Corporation for the annual period ended December 31,
2009 filed with the Securities and Exchange Commission) which, if adversely
determined, (i) would adversely affect the ability of it to perform its
obligations under this Escrow Agreement or (ii) would call into question or
challenge the validity of this Escrow Agreement or the enforceability hereof in
accordance with the terms hereof, nor is it in default with respect to any order
of any court, governmental authority, arbitration board or administrative agency
so as to adversely affect its ability to perform its obligations under this
Escrow Agreement.

       

       

       

      
        
          
          

        

        
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      (c)           The
Trustee hereby represents and warrants that:

       

      (1)           Neither
the execution, delivery or performance by the Trustee of this Escrow
Agreement, nor compliance with the terms and provisions hereof, conflicts or
will conflict with or results or will result in a breach or violation of any of
the terms, conditions or provisions of, or will require any consent or approval
under, any law, governmental rule or regulation or the charter documents, as
amended, or bylaws, as amended, of it or any similar instrument binding on it or
any order, writ, injunction or decree of any court or governmental authority
against it or by which it or any of its properties is bound or of any indenture,
mortgage or contract or other agreement or instrument to which it is a party or
by which it or any of its properties is bound, or constitutes or will constitute
a default thereunder or results or will result in the imposition of any lien
upon any of its properties.

       

      (2)           The
execution, delivery and performance of this Escrow Agreement has been duly
authorized by all necessary corporate action on the part of the Trustee and does
not require any stockholder approval, or approval or consent of any trustee or
holder of any indebtedness or obligations of it, and this Escrow Agreement has
been duly executed and delivered by it and constitutes its legal, valid and
binding obligations enforceable against it in accordance with the terms
hereof.

       

      (3)           There
are no pending or, to the Trustee’s knowledge, threatened actions, suits,
investigations or proceedings (whether or not purportedly on behalf of it)
against or affecting it or any of its property before or by any court or
administrative agency (except, in the case of the immediately following clause
(i), as set forth in Part I, Item 3 – Legal Proceedings of the Form 10-K of The
Bank of New York Mellon Corporation for the annual period ended December 31,
2009 filed with the Securities and Exchange Commission) which, if adversely
determined, (i) would adversely affect the ability of it to perform its
obligations under this Escrow Agreement or (ii) would call into question or
challenge the validity of this Escrow Agreement or the enforceability hereof in
accordance with the terms hereof, nor is it in default with respect to any order
of any court, governmental authority, arbitration board or administrative agency
so as to adversely affect its ability to perform its obligations under this
Escrow Agreement.

       

      SECTION
7.          Escrow Agent Rights and
Duties

       

      (a)        The
duties, responsibilities and obligations of the Escrow Agent shall be limited to
those expressly set forth herein and no duties, responsibilities or obligations
shall be inferred or implied. The Escrow Agent shall not be subject to, nor
required to comply with, any other agreement between or among any or all of the
other parties hereto or to which any of them is a party, even though reference
thereto may be made herein, or to comply with any direction or instruction
(other than those contained herein or delivered in accordance with this Escrow
Agreement) from any such party or any entity acting on its behalf. The Escrow
Agent shall not be required to, and shall not, expend or risk any of its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder.

       

       

       

       

      
        
          
          

        

        
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      (b)            If
at any time the Escrow Agent is served with any judicial or administrative
order, judgment, decree, writ or other form of judicial or administrative
process

      which in
any way affects Escrowed Funds (including but not limited to orders of
attachment or garnishment or other forms of levies or injunctions or stays
relating to the transfer of Escrowed Funds), the Escrow Agent is authorized to
comply therewith in any manner as it or its legal counsel of its own choosing
deems appropriate; and if the Escrow Agent complies with any such judicial or
administrative order, judgment, decree, writ or other form of judicial or
administrative process, the Escrow Agent shall not be liable to any of the
parties hereto or to any other Person even though such order, judgment, decree,
writ or process may be subsequently modified or vacated or otherwise determined
to have been without legal force or effect; provided, however,
that the Escrow Agent shall inform each of the Transaction Parties promptly and
no later than two Business Days thereafter of receipt of such order, judgment,
decree, writ or process and, to the extent permitted under applicable law, will
deliver to each of the Transaction Parties all relevant documents ancillary to
such order, judgment, decree, writ or process so that each of the Transaction
Parties may seek an appropriate protective order or pursue other legal remedies;
provided, further, however,
that the Escrow Agent will not comply with such judicial or administrative
order, judgment, decree, writ or other form of judicial or administrative
process until such time as it is, in the opinion of its counsel, legally
compelled to do so.

       

      (c)           The
Escrow Agent shall not be liable for any action taken or omitted or for
any loss
or injury resulting from its actions or its performance or lack of performance
of its duties hereunder in the absence of bad faith, willful misconduct or gross
negligence. In no event shall the
Escrow Agent be liable (i) for acting in accordance with or relying upon any
instruction, notice, demand, certificate or document from each of the
Transaction Parties or any Person acting on behalf of each of the Transaction
Parties so long as such action is taken in accordance with the provisions of
this Escrow Agreement, (ii) for the acts or omissions of its nominees,
correspondents, designees, agents, subagents or subcustodians acting in
accordance with the terms of this Escrow Agreement; provided that such nominees,
correspondents, designees, agents, subagents or subcustodians were chosen with
reasonable care by the Escrow Agent, (iii) for an amount in excess of the value
of the Escrowed Funds, valued as of the date of deposit, plus all
interest, dividends and other distributions and payments thereon received by the
Escrow Agent, or (iv) for any consequential, punitive, indirect or special
damages.

       

      (d)           The
Escrow Agent may perform any of its duties hereunder by or through agents or
employees.

       

      (e)           The
Escrow Agent may consult with legal counsel of its own selection (at
the
expense of Frontier) as to any matter relating to this Escrow Agreement, and the
Escrow Agent shall not incur any liability in acting in good faith in reliance
thereon.

       

      (f)           The
Escrow Agent shall not incur any liability for not performing any
act or
fulfilling any duty, obligation or responsibility hereunder by reason of any
occurrence reasonably beyond the control of the Escrow Agent (including, but not
limited to, any act or provision of any present or future law or regulation or
governmental authority, any act of God, war, terrorism or other catastrophe, or
the unavailability of the Federal Reserve Bank wire or telex or other wire or
communication facility).

       

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

       

      (g)           The
Transaction Parties, with the consent of the Trustee (such consent not
to be
unreasonably withheld), may remove the Escrow Agent at any time by giving to the
Escrow
Agent ten (10) Business Days’ prior notice in writing signed by the Transaction
Parties and the Trustee. The Escrow Agent may resign at any time by giving to
the Company and the Trustee fifteen (15) Business Days’ prior written notice
thereof.

       

      (i)            Within
seven (7) Business Days after giving the foregoing notice of
removal to the Escrow Agent or receiving the foregoing notice of resignation
from the Escrow Agent, (a) Frontier shall pay, or cause to be paid, all fees,
costs and expenses or other obligations owed to the Escrow Agent hereunder and
(b) the Transaction Parties and the Trustee shall reasonably agree on and
appoint a successor Escrow Agent. If a successor Escrow Agent has not accepted
such appointment by the end of such seven-Business Day period, the Escrow Agent
may, in its sole discretion, apply to a court of competent jurisdiction for the
appointment of a successor Escrow Agent or for other appropriate relief. The
costs and expenses (including reasonable attorneys’ fees and expenses) incurred
by the Escrow Agent in connection with such proceeding shall be paid by, and be
deemed an obligation of, Frontier.

       

      (ii)            Upon
acceptance of such appointment of the successor Escrow Agent,
the Escrow Agent shall deliver the Escrowed Funds then held hereunder to the
successor Escrow Agent.

       

      (iii)
Upon delivery of the Escrowed Funds to such successor Escrow Agent, the Escrow
Agent shall have no further duties, responsibilities or
obligations hereunder.

       

      (h)           Any
Person into which the Escrow Agent may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Escrow Agent shall be a party, or any
Person succeeding to all or substantially all of the corporate trust business of
the Escrow Agent, shall be the successor of the Escrow Agent hereunder without
the execution or filing of any paper or any further action on the part of any of
the parties hereto.

       

      (i)           The
Escrow Agent shall, on a monthly basis and upon the request of either
Transaction
Party, provide to the Transaction Parties a statement identifying transactions,
transfers or holdings of Escrowed Funds.

       

      (j)           The
Escrow Agent shall not be responsible in any respect for the form, execution,
validity, value or genuineness of documents, or for any description therein, or
for the identity, authority or rights of Persons executing or delivering or
purporting to execute or deliver any such document, security or
endorsement.

       

      (k)           In
the event of any ambiguity or uncertainty hereunder or in any notice,
instruction
or other communication received by the Escrow Agent hereunder, the Escrow Agent
may, in its sole discretion, refrain from taking any action other than releasing
Escrowed Funds in accordance with Section 4 hereof, unless the Escrow Agent
receives joint written instructions, signed by each of the Transaction Parties
and the Trustee, which eliminates such ambiguity or uncertainty.

       

       

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

       

      (l)           The
Escrow Agent and its directors, officers, employees, attorneys and agents
shall be entitled to conclusively rely on any communication, instrument or
document reasonably believed by it or them to be genuine and correct and to have
been signed or sent by the proper Person or Persons. Any communication,
instrument or document shall be in writing and shall be given to the address set
forth in the Section 10.1 (or to such other address as may be substituted
therefor by written notification to the Transaction Parties). Notices to Escrow
Agent shall be deemed to be given when actually received by Escrow Agent's
Corporate Finance Unit of the Corporate Trust Division. Whenever under the terms
hereof the time for giving a notice or performing an act falls upon a
non-Business Day, such time shall be extended to the next Business Day on which
the Escrow Agent is open for business.

       

      (m)           In
the event of any dispute between, or conflicting claims, demands or instructions
by or among, any parties to this Escrow Agreement (other than the Escrow Agent)
with respect to any Escrowed Funds, the Escrow Agent shall be entitled, in its
sole discretion, to refuse to comply with any and all claims, demands or
instructions with respect to such Escrowed Funds so long as such dispute or
conflict shall continue, and the Escrow Agent shall not be or become liable in
any way for such failure or refusal to comply with such conflicting claims,
demands or instructions; provided, however, notwithstanding anything to the
contrary in the foregoing, the Escrow Agent shall release the Escrowed Funds in
accordance with Section 4. The Escrow Agent shall be entitled to refuse to act
until, in its sole discretion, either (i) such conflicting or adverse claims or
demands shall have been determined by a final order, judgment or decree of a
court of competent jurisdiction, which order, judgment or decree is not subject
to appeal, or settled by agreement between the conflicting parties as evidenced
in a writing satisfactory to the Escrow Agent or (ii) the Escrow Agent shall
have received security or an indemnity satisfactory to it sufficient to hold it
harmless from and against any and all Losses (as defined herein) which it may
incur by reason of so acting. The Escrow Agent may, in addition, elect, in its
sole discretion, to commence an interpleader action or seek other judicial
relief or orders as it may deem, in its sole discretion, necessary. The costs
and expenses (including reasonable attorneys’ fees and expenses) incurred in
connection with such proceeding shall be paid by, and shall be deemed an
obligation of, Frontier.

       

      (n)           The
rights and remedies conferred upon the Escrow Agent and each of the parties
hereto shall be cumulative, and the exercise or waiver of any such right or
remedy shall not preclude or inhibit the exercise of any additional rights or
remedies. The waiver of any right or remedy hereunder shall not preclude the
subsequent exercise of such right or remedy.

       

      (o)           The
Escrow Agent does not have any interest in the Escrowed Funds hereunder
but is serving as escrow holder only and having only possession and/or control
thereof. Frontier shall pay or reimburse the Escrow Agent upon request for any
transfer taxes or other taxes relating to the Escrowed Funds incurred in
connection herewith and shall indemnify and hold harmless the Escrow Agent for
any amounts that it is obligated to pay in the way of such taxes. Frontier shall
pay or reimburse each Initial Purchaser upon request for any transfer taxes or
other taxes relating to any income earned on that portion of the Escrowed Funds
constituting the Initial Purchasers’ Discount incurred in connection herewith
and shall indemnify and hold harmless each Initial Purchaser for any amounts
that it is obligated to pay in the way of such taxes. Upon execution of this
Escrow Agreement, each of the parties hereto (other than Trustee) shall provide
the Escrow Agent with a fully executed Internal Revenue Service Form
W-9 (or
other applicable form). The parties hereto agree that (i) for tax reporting
purposes, and for any tax year, all interest or other income earned under the
Escrow Agreement attributable to the Gross Offering Proceeds shall be allocable
to the Company and (ii) to the extent permitted by applicable law, the Company
will include all amounts earned under the Escrow Agreement attributable to the
Gross Offering Proceeds in its gross income for federal, state and local income
tax (collectively, “income
tax”) purposes and pay any income tax resulting therefrom. The
parties hereto agree that (i) for tax reporting purposes, and for any tax year,
all interest or other income earned under the Escrow Agreement attributable to
the Additional Commitments shall be allocable to Frontier and (ii) to the extent
permitted by applicable law, Frontier will include all amounts earned under the
Escrow Agreement attributable to the Additional Commitments in its gross income
for income tax purposes and pay any income tax resulting therefrom. Any payments
of income from the account established hereunder may be subject to withholding
regulations then in force with respect to United States taxes. It is understood
that the Escrow Agent shall be responsible for income reporting only with
respect to any income which may be earned on investment of funds which are a
part of the Escrowed Funds and is not responsible for any other
reporting.

       

       

       

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

       

       

      SECTION
8.         Indemnity

       

      Frontier
shall indemnify, hold harmless and defend the Escrow Agent and its directors,
officers, agents and employees, from and against any and all claims, losses,
actions, obligations, liabilities, damages, costs and expenses (“Losses”)
directly or indirectly arising out of, relating to or in connection with its
acceptance of its appointment hereunder or its performance as Escrow Agent
(including but not limited to Losses incurred by the Escrow Agent in connection
with its successful defense, in whole or in part, of any claim of bad faith,
willful misconduct or gross negligence on its part), provided that such
Losses do not arise from the Escrow Agent’s bad faith, willful misconduct or
gross negligence.

       

      SECTION
9.         Compensation;
Expenses

       

      Frontier
will upon demand pay to the Escrow Agent the amount of any and all reasonable
expenses, including, without limitation, the reasonable fees, expenses and
disbursements of its counsel that the Escrow Agent may incur in connection with
(a) the review, negotiation and administration of this Escrow Agreement, (b) the
exercise or enforcement of any of the rights of the Escrow Agent and the Holders
of the Notes hereunder or (c) the failure by any party hereto to perform or
observe any of the provisions hereof. The Escrow Agent’s sole recourse for any
payment of fees, expenses or costs is against Frontier, and the Escrow Agent has
no right to sell, convey or dispose the Escrowed Funds other than in accordance
with Section 4 hereof.

       

      SECTION
10.          Miscellaneous
Provisions.

       

      10.1          Notices

       

      Any
notice or communication shall be sufficiently given if in writing and delivered
in person or mailed by first class mail, commercial courier service or
telecopier communication, addressed as follows:

       

      If to the
Company:

       

      New
Communications Holdings Inc. 

      3900
Washington Street, 2nd Floor 

      Wilmington,
DE 19802

      Attn:
Janet M. Garrity, Treasurer 

      Fax:
(302) 761-4245

       

      With copies
to:

       

      Debevoise
& Plimpton LLP 

      919 Third
Avenue

      New York,
NY 10022

      Attn:
Steven J. Slutzky 

      Fax:
(212) 909-6836

       

       

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

       

       

      If to
Frontier:

       

      Frontier
Communications Corporation

      3 High
Ridge Park

      Stamford,
Connecticut 06905

      Attn:
Hilary E. Glassman, Esq., General Counsel 

      Fax:
(203) 614-4602

       

      With copies
to:

       

      Cravath,
Swaine & Moore LLP 

      825
Eighth Avenue

      New York,
NY 10019

      Attn:
Craig F. Arcella

      Fax:
(212) 474-3700

       

      If to the Escrow
Agent:

       

      The Bank
of New York Mellon

      101
Barclay Street, Floor 8W

      New York,
NY 10286

      Attn:
Corporate Trust Division - Corporate Finance Unit 

      Fax:
(212) 815-5704

       

      If to the
Trustee:

       

      The Bank
of New York Mellon

      101
Barclay Street, Floor 8W

      New York,
NY 10286

      Attn:
Corporate Trust Division - Corporate Finance Unit 

      Fax:
(212) 815-5704

       

       

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      If to the Initial
Purchasers:

       

      c/o J.P.
Morgan Securities Inc. 

      383
Madison Avenue

      New York,
NY 10179 

      Attn:
Richard Gabriel 

      Fax:
(212) 270-1063

       

      With copies
to:

       

      Weil,
Gotshal & Manges LLP 

      767 Fifth
Avenue

      New York,
NY 10153

      Attn: Rod
Miller

      Fax:
(212) 310-8007

       

      Whenever
under the terms hereof the time for giving a notice or performing an act falls
upon a day that is not a Business Day, such time shall be extended to the next
Business Day.

       

      10.2          No
Adverse Interpretation of Other Agreements

       

      Except as
provided in Section 10. 8, this Escrow Agreement may not be used to interpret
another pledge, security or debt agreement of the Company, Frontier or of their
respective subsidiaries and no such pledge, security or debt agreement (other
than the Indenture) may be used to interpret this Escrow Agreement.

       

      10.3          Severability

       

      The
provisions of this Escrow Agreement are severable, and if any clause or
provision shall be held invalid, illegal or unenforceable in whole or in part in
any jurisdiction, then such invalidity or unenforceability shall affect in that
jurisdiction only such clause or provision, or part thereof, and shall not in
any manner affect such clause or provision in any other jurisdiction or any
other clause or provision of this Escrow Agreement in any
jurisdiction.

       

      10.4          Headings

       

      The
headings in this Escrow Agreement have been inserted for convenience of
reference only, are not to be considered a part hereof and shall in no way
modify or restrict any of the terms or provisions hereof.

       

      10.5          Counterpart
Originals

       

      This
Escrow Agreement may be signed in two or more counterparts, each of which shall
be deemed an original, but all of which shall together constitute one and the
same agreement.

       

       

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

       

       

      10.6          Benefits of Escrow
Agreement

       

      This
Escrow Agreement shall be binding upon each of the Transaction Parties, its
transferees, successors and assigns, and shall inure, together with the rights
and remedies of the Escrow Agent hereunder, to the benefit of the Escrow Agent,
Trustee, Initial Purchasers, Holders and their respective successors, permitted
transferees and assigns.

       

      Nothing
in this Escrow Agreement, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder, the Holders and the
Trustee on behalf of the Holders, any benefit or any legal or equitable right,
remedy or claim under this Escrow Agreement.

       

      10.7         
Amendments, Waivers and
Consents

       

      Any
amendment or waiver of any provision of this Escrow Agreement and any consent to
any departure by the Transaction Parties from any provision of this Escrow
Agreement shall be effective only if made or duly given with the written consent
of the Escrow Agent, the Trustee and each of the Transaction Parties; provided, however, that any
amendment or waiver of any provision of the Escrow Agreement and any consent to
any departure by any of the Transaction Parties from any provision of this
Escrow Agreement that would reduce the amount distributable to the Initial
Purchasers upon release of the Escrowed Funds pursuant to Section 4(a) and 4(b)
hereof shall be effective only if made or duly given with the written consent of
the Representative. None of the Escrow Agent, the Trustee, the Representative or
any Holder shall be deemed, by any act, delay, indulgence, omission or
otherwise, to have waived any right or remedy hereunder or to have acquiesced in
any default of any obligation or in any breach of any of the terms and
conditions hereof. Failure of the Escrow Agent, the Trustee, the Representative
or any Holder to exercise, or delay in exercising, any right, power or privilege
hereunder shall not preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. A waiver by the Escrow Agent,
the Trustee, the Representative or any Holder of any right or remedy hereunder
on any one occasion shall not be construed as a bar to any right or remedy that
the Escrow Agent, the Trustee, the Representative or such Holder would otherwise
have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
rights or remedies provided by law.

       

      10.8          Interpretation of
Agreement

       

      To the
extent a term or provision of this Escrow Agreement (other than Sections 7, 8
and 9 hereof) conflicts with the Indenture, the Indenture shall control with
respect to the subject matter of such term or provision. Acceptance of or
acquiescence in a course of performance rendered under this Escrow Agreement
shall not be relevant to determine the meaning of this Escrow Agreement even
though the accepting or acquiescing party had knowledge of the nature of the
performance and opportunity for objection. Regardless of any provision in any
such customer agreement, the State of New York shall be deemed to be the Escrow
Agent’s location for purposes of this Escrow Agreement.

       

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

       

       

      10.9         
Termination

       

      (a)        This
Escrow Agreement shall, unless otherwise provided in the Indenture or in this
Escrow Agreement, remain in full force and effect.

       

      (b)        This
Escrow Agreement shall terminate immediately upon (i) the disbursement of the
Escrowed Funds in accordance with the provisions of Sections 4(a) and 4(b) or
(ii) the disbursement of the Escrowed Funds in accordance with the provisions of
Sections 4(c). The Escrow Agent further agrees to execute and deliver such
documents, instruments or other agreements as the Transaction Parties or the
Initial Purchasers may reasonably request (all at the expense of the Transaction
Parties) to evidence the release and terminations contemplated in this Section
10.9.

       

      10.10        
Survival
Provisions

       

      Anything
herein to the contrary notwithstanding, (a) all representations, warranties and
covenants of each of the Transaction Parties contained herein shall survive the
execution and delivery of this Escrow Agreement, and shall terminate only upon
the termination of this Escrow Agreement, and (b) the obligations of Frontier
under Sections 8 and 9 hereof shall survive the termination of this Escrow
Agreement and the resignation or removal of the Escrow Agent.

       

      10.11          Waivers

       

      The
Transaction Parties waive presentment and demand for payment of the Special
Redemption Obligations, protest and notice of dishonor or default with respect
to the Special Redemption Obligations, and all other notices to which the
Transaction Parties might otherwise be entitled, except as otherwise expressly
provided herein or in the Indenture.

       

      10.12          Authority of the Escrow
Agent

       

      The
Escrow Agent shall have and be entitled to exercise all powers hereunder that
are specifically granted to the Escrow Agent by the terms hereof, together with
such powers as are reasonably incident thereto.

       

      10.13          Final Expression

       

      This
Escrow Agreement, together with the terms of the Indenture expressly referred to
herein, is intended by the parties as a final expression of this Escrow
Agreement and is intended as a complete and exclusive statement of the terms and
conditions thereof.

       

      10.14          Rights of Holders

       

      No Holder
shall have any independent rights hereunder other than those rights granted to
individual Holders pursuant to the applicable sections of the Indenture; provided that nothing
in this subsection shall limit any rights granted to the Escrow Agent under the
Notes or the Indenture.

       

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

       

      10.15          GOVERNING LAW; SUBMISSION TO
JURISDICTION; WAIVER OF JURY
TRIAL

       

      THIS
ESCROW AGREEMENT AND THE ESCROW ACCOUNT WILL BE INTERPRETED,
CONSTRUED, ENFORCED AND ADMINISTERED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK. THE PARTIES HEREBY SUBMIT TO THE PERSONAL JURISDICTION OF, AND EACH
AGREES THAT ALL PROCEEDINGS RELATING HERETO WILL BE BROUGHT IN COURTS LOCATED
WITHIN, THE CITY AND STATE OF NEW YORK. EACH OF THE PARTIES HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT IT
MAY HAVE TO TRIAL BY JURY IN ANY SUCH LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS ESCROW AGREEMENT. EACH OF THE PARTIES (OTHER
THAN THE TRUSTEE AND THE ESCROW AGENT) WAIVES PERSONAL SERVICE OF PROCESS AND
CONSENTS TO SERVICE OF PROCESS BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
REQUESTED, DIRECTED TO IT AT THE ADDRESS LAST SPECIFIED FOR NOTICES HEREUNDER,
AND SUCH SERVICE WILL BE DEEMED COMPLETED TEN (10) CALENDAR DAYS AFTER THE SAME
IS SO MAILED.

       

      10.16          Payments to the Initial
Purchasers

       

      The
Escrow Agent shall make all payments owing to the Initial Purchasers hereunder
to J.P. Morgan Securities Inc. as per the following wire payment
instructions:

       

      Bank
Name: JP Morgan Chase Bank 

      ABA #:
021-000-021

      F/A/O:
JPMSI

      Account
#: 066-916402

      Attn.:
Joel Ferrari

      Reference:
Frontier Communications Corporation / New Communications Holdings
Inc.

       

       

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

       

      
        IN
WITNESS WHEREOF, the Company, Frontier, the Trustee, the Escrow Agent and the
Representative have each caused this Escrow Agreement to be duly executed and
delivered as of the date first above written.

         

        
          
            	 	
                    NEW
      COMMUNICATIONS HOLDINGS INC.

                  	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

          

        

      

       

       

      
        
          
            	 	FRONTIER COMMUNICATIONS
CORPORATION	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

          

        

         

      

      
         

        
          
            
              	 	
                      THE
      BANK OF NEW YORK MELLON, as Escrow Agent

                    	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

            

          

        

      

       

      
        
           

          
            
              
                	 	
                        THE
      BANK OF NEW YORK MELLON, as Trustee

                      	 
	 	 	 	 
	
                         

                      	
                        By:
      

                      	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

              

               

              
                 

                
                  
                    
                      	 	
                              J.P.
      MORGAN SECURITIES INC. 

                                 
      As Representative of the several Initial Purchasers

                            	 
	 	 	 	 
	
                               

                            	
                              By:
      

                            	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

                    

                     

                     

                     

                     

                     

                    
                      
                        
                        

                      

                      
                        19

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                     

                     

                  

                

              

            

          

        

      

      EXHIBIT
A

       

      FORM OF
SPIN-OFF/MERGER RELEASE CERTIFICATE

       

      OFFICER’S
CERTIFICATE

       

      OF

       

      NEW
COMMUNICATIONS HOLDINGS INC.

       

      AND

       

      FRONTIER
COMMUNICATIONS CORPORATION

       

      ________________
___, 2010

       

      This
certificate is being delivered pursuant to Section 4(a) of the Escrow Agreement
dated as of April 12, 2010 (the “Escrow Agreement”), among New Communications
Holdings Inc., a Delaware corporation (the “Company”), Frontier Communications
Corporation, a Delaware corporation (“Frontier”), The Bank of New York Mellon, as
Escrow Agent (the “Escrow Agent”), The
Bank of New York Mellon, as Trustee under the Indenture referred to in the
Escrow Agreement (the “Trustee”)
and J.P. Morgan Securities Inc. (“Representative”), as the representative of
the several initial purchasers listed in Schedule 1 to the Purchase Agreement
(as defined in the Escrow Agreement) (collectively, the “Initial
Purchasers”). Unless otherwise indicated, capitalized terms used
but not defined herein have the respective meanings specified in Escrow
Agreement.

       

       _________________,
on behalf of the Company and not in a personal capacity,
hereby certifies to Frontier, the Escrow Agent, the Trustee and the
Representative and directs the Escrow Agent as follows:

       

      1.            The
Spin-Off is expected to be consummated substantially as described
in the Offering Memorandum promptly upon release of the Escrowed
Funds.

       

      2.            The
Merger is expected be consummated substantially as described in the
Offering Memorandum promptly following the consummation of the
Spin-Off.

       

      3.            The
Company hereby directs the Escrow Agent to disburse the Escrowed
Funds as instructed below.

       

       

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

       

       

      Disbursement
Instructions:

       

      The Net
Offering Proceeds shall be disbursed in accordance with the Company’s written
direction, delivered separately to the Escrow Agent.

       

      _________________, on
behalf of Frontier and not in a personal capacity,
hereby certifies to the Company, the Escrow Agent, the Trustee and the
Representative and directs the Escrow Agent as follows:

       

      1.            The
Merger is expected to be consummated substantially as described
in the Offering Memorandum promptly following the consummation of the
Spin-Off.

       

      The
Company and Frontier may execute this certificate in counterparts.

       

      [Signature
page follows]

       

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

       

       

       

      IN
WITNESS WHEREOF, each of the Company and Frontier, through its respective
undersigned officer, has signed this officer’s certificate as of the date first
above written.

       

      
         

        
          
            	 	
                    NEW
      COMMUNICATIONS HOLDINGS INC.

                  	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

          

        

         

         

        
          
            
              	 	FRONTIER COMMUNICATIONS
CORPORATION	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

            

          

           

           

           

          
             

             

             

          

           

          
            [Signature
page follows]

          

           

           

          
            
              
              

            

            
              22

              
                

              

            

            
              
              

            

          

           

           

           

          EXHIBIT
B

        

      

       

      FORM OF
MERGER CONFIRMATION CERTIFICATE

       

      OFFICER’S
CERTIFICATE

       

      OF

       

      FRONTIER
COMMUNICATIONS CORPORATION

       

      
        ________________
___, 2010

         

      

      This
certificate is being delivered pursuant to Section 4(b) of the Escrow Agreement
dated as of April 12, 2010 (the “Escrow Agreement”), among New Communications
Holdings, Inc., a Delaware corporation (the “Company”), Frontier Communications
Corporation, a Delaware corporation (“Frontier”), The Bank of New York Mellon, as
Escrow Agent (the “Escrow
Agent”), The Bank of New York Mellon, as Trustee under the
Indenture referred to in the Escrow Agreement (the “Trustee”) and J.P. Morgan Securities Inc.
(“Representative”), as the representative of
the several initial purchasers listed in Schedule 1 to the Purchase Agreement
(as defined in the Escrow Agreement) (collectively, the “Initial
Purchasers”). Unless otherwise indicated, capitalized terms used
but not defined herein have the respective meanings specified in Escrow
Agreement.

       

       _________________, on
behalf of Frontier and not in a personal capacity, does
hereby certify to the Escrow Agent, the Trustee and the Representative that, as
of  the date hereof, the Merger has been consummated substantially as
described in the Offering Memorandum.

       

       

       

      
         

         

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

         

         

        
           

          IN
WITNESS WHEREOF, Frontier, through the undersigned officer, has signed this
officer's certificate as of the date first above written.

           

          
            
              
                
                  	 	FRONTIER COMMUNICATIONS
CORPORATION	 
	 	 	 	 
	
                           

                        	
                          By:
      

                        	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

                

              

               

            

          

        

         

         

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

       

       

       

      EXHIBIT
C

       

      FORM OF
TERMINATION CERTIFICATE

       

      OF

       

      [NEW
COMMUNICATIONS HOLDINGS INC.] [FRONTIER COMMUNICATIONS CORPORATION]

       

      
        ________________
___, 2010

         

      

      This
certificate is being delivered pursuant to Section 4(c) of the Escrow Agreement
dated as of April 12, 2010 (the “Escrow Agreement”), among New Communications
Holdings, Inc., a Delaware corporation (the “Company”), Frontier Communications
Corporation, a Delaware corporation (“Frontier”), The Bank of New York Mellon, as
Escrow Agent (the “Escrow
Agent”), The Bank of New York Mellon, as Trustee under the
Indenture referred to in the Escrow Agreement (the “Trustee”) and J.P. Morgan Securities Inc.
(“Representative”), as the representative of
the several initial purchasers listed in Schedule 1 to the Purchase Agreement
(as defined in the Escrow Agreement) (collectively, the “Initial
Purchasers”). Unless otherwise indicated, capitalized terms used
but not defined herein have the respective meanings specified in Escrow
Agreement.

       

      _________________, on
behalf of [the Company] [Frontier] and not in a personal
capacity, hereby certifies to [the Company] [Frontier], the Escrow Agent, the
Trustee and the Representative and directs the Escrow Agent as
follows:

       

      The
Merger Agreement was terminated pursuant to its terms on
[          ].

       

       

       

      
        
          [Signature
page follows]

           

           

           

        

         

         

         

         

        
          
            
            

          

          
            25

            
              

            

          

          
            
            

          

        

         

      

       

       

       

      IN
WITNESS WHEREOF, [the Company][Frontier], through the undersigned officer, has
signed this officer’s certificate as of the date first above
written.

       

       

      
         

        
          
            	 	[NEW COMMUNICATIONS HOLDINGS INC.]
      [FRONTIER COMMUNICATIONS CORPORATION]	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

          

        

         

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      26ex4-2.htm

    Exhibit
4.2

     

     

    
      REGISTRATION
RIGHTS AGREEMENT

      

      This
REGISTRATION RIGHTS AGREEMENT dated April 12, 2010 (this “Agreement”) is entered
into by and among Frontier Communications Corporation, a Delaware corporation
(“Frontier”), and J.P. Morgan Securities Inc. (the “Representative”), as
representative of the several initial purchasers listed in Schedule 1 to the
Purchase Agreement (as defined herein) (the “Initial Purchasers”).

      

      New
Communications Holdings Inc., a Delaware corporation (“NCHI”), Frontier and the
Representative are parties to the Purchase Agreement dated March 26, 2010 (the
“Purchase Agreement”), which provides for the sale by NCHI to the Initial
Purchasers of $500,000,000 aggregate principal amount of NCHI’s 7.875% Senior
Notes due 2015 (the “Securities”).  As an inducement to the Initial
Purchasers to enter into the Purchase Agreement, Frontier has agreed to provide
to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement.  The execution and
delivery of this Agreement is a condition to the closing under the Purchase
Agreement.

      

      In
consideration of the foregoing, the parties hereto agree as
follows:

      

      1.           Definitions.  As
used in this Agreement, the following terms shall have the following
meanings:

      

      “Business
Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain
closed.

      

      “Escrow Agent” shall have the meaning
assigned to it in the Escrow Agreement (as defined herein).

      

      “Escrow Agreement” shall mean the
Escrow Agreement entered into as of April 12, 2010, among NCHI, Frontier, the
Trustee, the Escrow Agent and the Representative.

      

      “Escrowed
Funds” shall have the meaning assigned to it in the Escrow
Agreement.

      

      “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

      

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

      

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

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
 

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

      

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

      

      “Exchange
Securities” shall mean senior notes issued by Frontier under the Indenture
containing terms identical to the Securities (except that the Exchange
Securities will not be subject to restrictions on transfer or to any increase in
annual interest rate for failure to comply with this Agreement) and to be
offered to Holders in exchange for Securities pursuant to the Exchange
Offer.

      

      “Free
Writing Prospectus” means each free writing prospectus (as defined in Rule 405
under the Securities Act) prepared by or on behalf of Frontier or used or
referred to by Frontier in connection with the sale of the Securities or the
Exchange Securities.

      

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

      

      “Holders”
shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect
transferees who become owners of Registrable Securities under the Indenture;
provided that for purposes of Sections 4 and 5 of this Agreement, the term
“Holders” shall include Participating Broker-Dealers.

      

      “Indemnified
Person” shall have the meaning set forth in Section 5(c) hereof.

      

      “Indemnifying
Person” shall have the meaning set forth in Section 5(c) hereof.

      

      “Indenture”
shall mean the Indenture relating to the Securities dated as of April 12, 2010
between NCHI and the Trustee, as the same may be amended and supplemented from
time to time in accordance with the terms thereof.

      

      “Initial
Purchasers” shall have the meaning set forth in the preamble.

      

      “Inspector”
shall have the meaning set forth in Section 3(a)(xiii) hereof.

      

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

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
 

      “Majority
Holders” shall mean the Holders of a majority of the aggregate principal amount
of the outstanding Registrable Securities; provided that whenever the consent or
approval of Holders of a specified percentage of Registrable Securities is
required hereunder, any Registrable Securities owned directly or indirectly by
Frontier or any of its affiliates shall not be counted in determining whether
such consent or approval was given by the Holders of such required percentage or
amount; and provided, further, that if Frontier shall issue any additional
Securities under the Indenture prior to consummation of the Exchange Offer or,
if applicable, the effectiveness of any Shelf Registration Statement, such
additional Securities and the Registrable Securities to which this Agreement
relates shall be treated together as one class for purposes of determining
whether the consent or approval of Holders of a specified percentage of
Registrable Securities has been obtained.

      

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

      

      “Offering
Memorandum” means the Final Offering Memorandum, dated March 26, 2010, relating
to the offering of the Securities to the Holders.

      

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

      

      “Person”
shall mean an individual, partnership, limited liability company, corporation,
trust or unincorporated organization, or a government or agency or political
subdivision thereof.

      

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

      

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

      

      “Registrable
Securities” shall mean the Securities; provided that the Securities shall cease
to be Registrable Securities on the earliest to occur of (i) when a Registration
Statement with respect to such Securities has become effective under the
Securities Act and such Securities have been exchanged or disposed of pursuant
to such Registration Statement or (ii) when such Securities are sold pursuant to
Rule 144 under the Securities Act, (iii) the date that is two years following
the Release Date, or (iv) when such Securities cease to be
outstanding.

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
 

      “Registration
Expenses” shall mean any and all expenses incident to performance of or
compliance by Frontier with this Agreement, including without limitation: (i)
all SEC, stock exchange or Financial Industry Regulatory Authority (“FINRA”)
registration and filing fees, (ii) all fees and expenses incurred in connection
with compliance with state securities or blue sky laws (including reasonable
fees and disbursements of counsel for any Underwriters or Holders in connection
with blue sky qualification of any Exchange Securities or Registrable
Securities), (iii) all expenses of any Persons in preparing or assisting in
preparing, word processing, printing and distributing any Registration
Statement, any Prospectus and any amendments or supplements thereto, any
underwriting agreements, securities sales agreements or other similar agreements
and any other documents relating to the performance of and compliance with this
Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating
to the qualification of the Indenture under applicable securities laws, (vi) the
fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for Frontier and, in the case of a Shelf Registration
Statement, the fees and disbursements of one counsel for the Holders (which
counsel shall be selected by the Majority Holders and which counsel may also be
counsel for the Initial Purchasers) and (viii) the fees and disbursements of the
independent public accountants of Frontier, including the expenses of any
special audits or “comfort” letters required by or incident to the performance
of and compliance with this Agreement, but excluding fees and expenses of
counsel to the Underwriters (other than fees and expenses set forth in clause
(ii) above) or the Holders and underwriting discounts and commissions, brokerage
commissions and transfer taxes, if any, relating to the sale or disposition of
Registrable Securities by a Holder.

      

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

      

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

      

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

      

      “SEC”
shall mean the United States Securities and Exchange Commission.

      

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

      

      “Securities
Act” shall mean the Securities Act of 1933, as amended from time to
time.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
 

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

      

      “Shelf
Effectiveness Period” shall have the meaning set forth in Section 2(b)
hereof.

      

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

      

      “Shelf
Registration Statement” shall mean a “shelf” registration statement of Frontier
that covers all or a portion of the Registrable Securities (but no other
securities unless approved by a majority of the Holders whose Registrable
Securities are to be covered by such Shelf Registration Statement) on an
appropriate form under Rule 415 under the Securities Act, or any similar rule
that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein or deemed a part thereof, all
exhibits thereto and any document incorporated by reference
therein.

      

      “Shelf
Request” shall have the meaning set forth in Section 2(b) hereof.

      

      “Staff” shall mean the staff of the
SEC.

      

      “Target
Registration Date” shall mean the date that is 270 days after the Release
Date.

      

      “Transactions”
shall have the meaning ascribed thereto in the Offering Memorandum.

      

      “Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time
to time.

      

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

      

      “Underwriter”
shall have the meaning set forth in Section 3(e) hereof.

      

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

      

      2.           Registration Under the
Securities Act.  (a)  If the Escrowed Funds are
released to fund the Transactions in accordance with Section 4(a) and 4(b) of
the Escrow Agreement (the date of such release, the “Release Date”), to the
extent not prohibited by any applicable law or applicable interpretations of the
Staff, Frontier shall use its reasonable best efforts to (i) cause to be filed
within 90 days of the Release Date an Exchange Offer Registration Statement
covering an offer to the Holders to exchange all the Registrable Securities for
Exchange Securities and (ii) have such Registration Statement remain effective
until 180 days after the last Exchange Date for use by one or more Participating
Broker-Dealers.  Frontier shall commence the Exchange Offer promptly
after the Exchange Offer Registration Statement is declared effective by the SEC
and use its reasonable best efforts to complete the Exchange Offer not later
than 60 days after such effective date.

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      
 

      Frontier
shall commence the Exchange Offer by mailing the related Prospectus, appropriate
letters of transmittal and other accompanying documents to each Holder stating,
in addition to such other disclosures as are required by applicable law,
substantially the following:

      

      
        	
                (i)  

              	
                that
      the Exchange Offer is being made pursuant to this Agreement and that all
      Registrable Securities validly tendered and not properly withdrawn will be
      accepted for exchange;

              

      

      

      
        	
                (ii)  

              	
                the
      dates of acceptance for exchange (which shall be a period of at least 20
      Business Days from the date such notice is mailed) (the “Exchange
      Dates”);

              

      

      

      
        	
                (iii)  

              	
                that
      any Registrable Security not tendered will remain outstanding and continue
      to accrue interest but will not retain any rights under this Agreement,
      except as otherwise specified
herein;

              

      

      

      
        	
                (iv)  

              	
                that
      any Holder electing to have a Registrable Security exchanged pursuant to
      the Exchange Offer will be required to (A) surrender such Registrable
      Security, together with the appropriate letters of transmittal and related
      documents, to the institution and at the address (located in the Borough
      of Manhattan, The City of New York) and in the manner specified in the
      notice, or (B) effect such exchange otherwise in compliance with the
      applicable procedures of the depositary for such Registrable Security, in
      each case prior to the close of business on the last Exchange Date;
      and

              

      

      

      
        	
                (v)  

              	
                that
      any Holder will be entitled to withdraw its election, not later than the
      close of business on the last Exchange Date, by (A) sending to the
      institution and at the address (located in the Borough of Manhattan, The
      City of New York) specified in the notice, a telegram, telex, facsimile
      transmission or letter setting forth the name of such Holder, the
      principal amount of Registrable Securities delivered for exchange and a
      statement that such Holder is withdrawing its election to have such
      Securities exchanged or (B) effecting such withdrawal in compliance with
      the applicable procedures of the depositary for the Registrable
      Securities.

              

      

      

      As a
condition to participating in the Exchange Offer, a Holder will be required to
represent to Frontier that (i) any Exchange Securities to be received by it will
be acquired in the ordinary course of its business, (ii) at the time of the
commencement of the Exchange Offer, it has no arrangement or understanding with
any Person to participate in the distribution (within the meaning of the
Securities Act) of the Exchange Securities in violation of the provisions of the
Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405
under the Securities Act) of Frontier and (iv) if such Holder is a broker-dealer
that will receive Exchange Securities for its own account in exchange for
Registrable Securities that were acquired as a result of market-making or other
trading activities, then such Holder will deliver a Prospectus (or, to the
extent permitted by law, make available a Prospectus to purchasers) in
connection with any resale of such Exchange Securities.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
 

      As soon
as practicable after the last Exchange Date, Frontier shall:

      

      
        	
                (i)  

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

              

      

      

      
        	
                (ii)  

              	
                deliver,
      or cause to be delivered, to the Trustee for cancellation all Registrable
      Securities or portions thereof so accepted for exchange by Frontier and
      issue, and cause the Trustee to promptly authenticate and deliver to each
      Holder, Exchange Securities equal in principal amount to the principal
      amount of the Registrable Securities tendered by such
    Holder.

              

      

      

      Frontier
shall use its reasonable best efforts to complete the Exchange Offer as provided
above and shall comply with the applicable requirements of the Securities Act,
the Exchange Act and other applicable laws and regulations in connection with
the Exchange Offer.  The Exchange Offer shall not be subject to any
conditions, other than that the Exchange Offer does not violate any applicable
law or applicable interpretations of the Staff.

      

      (b)         In
the event that (i) Frontier determines that the Exchange Offer Registration
provided for in Section 2(a) above is not available or may not be completed as
soon as practicable after the last Exchange Date because it would violate any
applicable law or applicable interpretations of the Staff, (ii) the Exchange
Offer is not for any other reason completed by the Target Registration Date or
(iii) upon receipt of a written request (a “Shelf Request”) from any Initial
Purchaser representing that it holds Registrable Securities that are or were
ineligible to be exchanged in the Exchange Offer, Frontier shall use its
reasonable best efforts to cause to be filed as soon as practicable after such
determination, date or Shelf Request, as the case may be, a Shelf Registration
Statement providing for the sale of all the Registrable Securities by the
Holders thereof and to have such Shelf Registration Statement become
effective.

      

      In the
event that Frontier is required to file a Shelf Registration Statement pursuant
to clause (iii) of the preceding sentence, Frontier shall use its reasonable
best efforts to file and have become effective both an Exchange Offer
Registration Statement pursuant to Section 2(a) with respect to all Registrable
Securities and a Shelf Registration Statement (which may be a combined
Registration Statement with the Exchange Offer Registration Statement) with
respect to offers and sales of Registrable Securities held by the Initial
Purchasers after completion of the Exchange Offer.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
 

      Frontier
agrees to use its reasonable best efforts to keep the Shelf Registration
Statement continuously effective until the earlier of (i) the date all of the
Securities cease to be Registrable Securities and (ii) the expiration of the
period that will terminate when all the Registrable Securities covered by the
Shelf Registration Statement have been sold pursuant to the Shelf Registration
Statement (the “Shelf Effectiveness Period”).  Frontier further agrees
to supplement or amend the Shelf Registration Statement and the related
Prospectus if required by the rules, regulations or instructions applicable to
the registration form used by Frontier for such Shelf Registration Statement or
by the Securities Act or by any other rules and regulations thereunder or if
reasonably requested by a Holder of Registrable Securities with respect to
information relating to such Holder, and to use its reasonable best efforts to
cause any such amendment to become effective, if required, and such Shelf
Registration Statement and Prospectus to become usable as soon as thereafter
practicable.  Frontier agrees to furnish to the Holders of Registrable
Securities (or file on EDGAR) copies of any such supplement or amendment
promptly after its being used or filed with the SEC.

      

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

      

      (d)         An
Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not
be deemed to have become effective unless it has been declared effective by the
SEC.  A Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC or is automatically effective upon filing with the SEC as
provided by Rule 462 under the Securities Act.

      

      In the
event that either the Exchange Offer is not completed or the Shelf Registration
Statement, if required pursuant to Section 2(b)(i) or 2(b)(ii) hereof, has not
become effective on or prior to the Target Registration Date, the interest rate
on the Registrable Securities will be increased by (i) 0.25% per annum for the
first 90-day period immediately following the Target Registration Date and (ii)
an additional 0.25% per annum with respect to each subsequent 90-day period, in
each case until the Exchange Offer is completed or the Shelf Registration
Statement, if required hereby, becomes effective or the Securities become freely
tradable under the Securities Act, up to a maximum increase of 1.00% per
annum.  In the event that Frontier receives a Shelf Request pursuant
to Section 2(b)(iii), and the Shelf Registration Statement required to be filed
thereby has not become effective by the later of the date that is five months
after the Release Date and (y) 90 days after delivery of such Shelf Request
(such later date, the “Shelf Additional Interest Date”), then the interest rate
on the Registrable Securities will be increased by (i) 0.25% per annum for the
first 90-day period payable commencing from one day after the Shelf Additional
Interest Date and (ii) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Shelf Registration Statement
becomes effective or the Securities become freely tradable under the Securities
Act, up to a maximum increase of 1.00% per annum.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      
 

      If the Shelf Registration Statement, if
required hereby, has become effective and thereafter either ceases to be
effective or the Prospectus contained therein ceases to be usable, in each case
whether or not permitted by this Agreement, at any time during the Shelf
Effectiveness Period, and such failure to remain effective or usable exists for
more than 30 days (whether or not consecutive) in any 12-month period, then the
interest rate on the Registrable Securities will be increased by (i) 0.25% per
annum for the first 90-day period and (ii)an additional 0.25% per annum with
respect to each subsequent 90-day period, up to a maximum increase of 1.00% per
annum, commencing on the 31st day
in such 12-month period and ending on such date that the Shelf Registration
Statement has again become effective or the Prospectus again becomes usable, as
the case may be.

      

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

      

      (f)           Frontier
represents, warrants and covenants that it (including its agents and
representatives) will not prepare, make, use, authorize, approve or refer to any
Free Writing Prospectus.

      

      3.           Registration
Procedures.  (a) In connection with its obligations pursuant to
Section 2(a) and Section 2(b) hereof, Frontier shall as expeditiously as
reasonably possible:

      

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

      

      (ii)         prepare
and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement
effective for the applicable period in accordance with Section 2 hereof and
cause each Prospectus to be supplemented by any required prospectus supplement
and, as so supplemented, to be filed pursuant to Rule 424 under the Securities
Act; and keep each Prospectus current during the period described in Section
4(3) of and Rule 174 under the Securities Act that is applicable to transactions
by brokers or dealers with respect to the Registrable Securities or Exchange
Securities;

       

       

      
        
          
          

        

        
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      (iii)        in
the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, to counsel for the Initial Purchasers, to counsel for such Holders
and to each Underwriter of an Underwritten Offering of Registrable Securities,
if any, without charge, as many copies of each Prospectus or preliminary
prospectus, and any amendment or supplement thereto, as such Holder, counsel or
Underwriter may reasonably request in order to facilitate the sale or other
disposition of the Registrable Securities thereunder; and Frontier consents to
the use of such Prospectus, preliminary prospectus and any amendment or
supplement thereto in accordance with applicable law by each of the Holders of
Registrable Securities and any such Underwriters in connection with the offering
and sale of the Registrable Securities covered by and in the manner described in
such Prospectus, preliminary prospectus or any amendment or supplement thereto
in accordance with applicable law;

      

      (iv)        use
its reasonable best efforts to register or qualify the Registrable Securities
under all applicable state securities or blue sky laws of such jurisdictions as
any Holder of Registrable Securities covered by a Registration Statement shall
reasonably request in writing by the time the applicable Registration Statement
becomes effective; cooperate with such Holders in connection with any filings
required to be made with FINRA; and do any and all other acts and things that
may be reasonably necessary or advisable to enable each Holder to complete the
disposition in each such jurisdiction of the Registrable Securities owned by
such Holder; provided that
Frontier shall not be required to (1) qualify as a foreign corporation or other
entity or as a dealer in securities in any such jurisdiction where it would not
otherwise be required to so qualify, (2) file any general consent to service of
process in any such jurisdiction or (3) subject itself to taxation in any such
jurisdiction if it is not so subject;

      

      (v)         notify
counsel for the Initial Purchasers and, in the case of a Shelf Registration,
notify each Holder of Registrable Securities and counsel for such Holders
promptly and, if requested by any such Holder or counsel, confirm such advice in
writing (1) when a Registration Statement has become effective, when any
post-effective amendment thereto has been filed and becomes effective and when
any amendment or supplement to the Prospectus has been filed, (2) of any request
by the SEC or any state securities authority for amendments and supplements to a
Registration Statement or Prospectus or for additional information after the
Registration Statement has become effective, (3) of the issuance by the SEC or
any state securities authority of any stop order suspending the effectiveness of
a Registration Statement or the initiation of any proceedings for that purpose,
including the receipt by Frontier of any notice of objection of the SEC to the
use of a Shelf Registration Statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act, (4) if, between the
applicable effective date of a Shelf Registration Statement and the closing of
any sale of Registrable Securities covered thereby, the representations and
warranties of Frontier contained in any underwriting agreement, securities sales
agreement or other similar agreement, if any, relating to an offering of such
Registrable Securities cease to be true and correct in all material respects or
if Frontier receives any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation of any proceeding for such purpose, (5) of the happening of any event
during the period a Registration Statement is effective that makes any statement
made in such Registration Statement or the related Prospectus untrue in any
material respect or that requires the making of any changes in such Registration
Statement or Prospectus in order to make the statements therein not misleading
and (6) of any determination by Frontier that a post-effective amendment to a
Registration Statement or any amendment or supplement to the Prospectus would be
appropriate;

       

       

      
        
          
          

        

        
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      (vi)        use
its reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or, in the case of a Shelf
Registration, the resolution of any objection of the SEC pursuant to Rule
401(g)(2), including by filing an amendment to such Shelf Registration Statement
on the proper form, as soon as practicable and provide prompt notice to each
Holder of the withdrawal of any such order or such resolution;

      

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

      

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

      

      (ix)         in
the case of a Shelf Registration, upon the occurrence of any event contemplated
by Section 3(a)(v)(5) hereof, use its reasonable best efforts to prepare and
file with the SEC a supplement or post-effective amendment to such Shelf
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered (or, to the extent permitted by law, made available) to purchasers of
the Registrable Securities, such Prospectus will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading; and Frontier shall notify the Holders of Registrable
Securities to suspend use of the Prospectus as promptly as practicable after the
occurrence of such an event, and such Holders hereby agree to suspend use of the
Prospectus until Frontier has amended or supplemented the Prospectus to correct
such misstatement or omission;

      

      (x)          a
reasonable time prior to the filing of any Registration Statement, any
Prospectus, any amendment to a Registration Statement or amendment or supplement
to a Prospectus or of any document that is to be incorporated by reference into
a Registration Statement or a Prospectus after initial filing of a Registration
Statement, provide copies of such document to the Initial Purchasers and their
counsel (and, in the case of a Shelf Registration Statement, to the Holders of
Registrable Securities and their counsel) and make such of the representatives
of Frontier as shall be reasonably requested by the Initial Purchasers or their
counsel (and, in the case of a Shelf Registration Statement, the Holders of
Registrable Securities or their counsel) available for discussion of such
document; and Frontier shall not, at any time after initial filing of a
Registration Statement, use or file any Prospectus, any amendment of or
supplement to a Registration Statement or a Prospectus, or any document that is
to be incorporated by reference into a Registration Statement or a Prospectus,
of which the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities and their counsel)
shall not have previously been advised and furnished a copy or to which the
Initial Purchasers or their counsel (and, in the case of a Shelf Registration
Statement, the Holders of Registrable Securities or their counsel) shall object
within five (5) Business Days of receipt of such copy;

      

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

       

       

      
        
          
          

        

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

      

      (xiii)       in
the case of a Shelf Registration, make available for inspection by a
representative of the Holders of the Registrable Securities (an “Inspector”),
any Underwriter participating in any disposition pursuant to such Shelf
Registration Statement, any attorneys and accountants designated by a majority
of the Holders of Registrable Securities to be included in such Shelf
Registration and any attorneys and accountants designated by such Underwriter,
at reasonable times and in a reasonable manner, all pertinent financial and
other records, documents and properties of Frontier and its subsidiaries, and
cause the officers, directors and employees of Frontier to supply all
information reasonably requested by any such Inspector, Underwriter, attorney or
accountant in connection with a Shelf Registration Statement; provided that if any
such information is identified by Frontier as being confidential or proprietary,
each Person receiving such information shall take such actions as are reasonably
necessary to protect the confidentiality of such information to the extent such
action is otherwise not inconsistent with, an impairment of or in derogation of
the rights and interests of any Inspector, Holder or Underwriter) (including,
with respect to any Holder or Inspector, if reasonably requested by Frontier,
the execution of a customary confidentiality agreement);

      

      (xiv)      in
the case of a Shelf Registration, use its reasonable best efforts to cause all
Registrable Securities to be listed on any securities exchange or any automated
quotation system on which similar securities issued or guaranteed by Frontier
are then listed if requested by the Majority Holders, to the extent such
Registrable Securities satisfy applicable listing requirements;

      

      (xv)       if
reasonably requested by any Holder of Registrable Securities covered by a Shelf
Registration Statement, promptly include in a Prospectus supplement or
post-effective amendment such information with respect to such Holder as such
Holder reasonably requests to be included therein and make all required filings
of such Prospectus supplement or such post-effective amendment as soon as
reasonably practicable after Frontier has received notification of the matters
to be so included in such filing; and

      

      (xvi)      in
the case of a Shelf Registration, enter into such customary agreements and take
all such other actions in connection therewith (including those requested by the
Holders of a majority in principal amount of the Registrable Securities covered
by the Shelf Registration Statement) in order to expedite or facilitate the
disposition of such Registrable Securities including, but not limited to, an
Underwritten Offering and in such connection, (1) to the extent possible, make
such representations and warranties to the Holders and any Underwriters of such
Registrable Securities with respect to the business of Frontier and its
subsidiaries and the Registration Statement, Prospectus and documents
incorporated by reference or deemed incorporated by reference, if any, in each
case, in form, substance and scope as are customarily made by issuers to
underwriters in underwritten offerings and confirm the same if and when
requested, (2) obtain opinions of counsel to Frontier (which counsel and
opinions, in form, scope and substance similar to that provided in the Purchase

       

       

      
        
          
          

        

        
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      Agreement,
as modified for a registered offering, shall be reasonably satisfactory to the
Holders and such Underwriters and their respective counsel) addressed to each
selling Holder and Underwriter of Registrable Securities, covering the matters
customarily covered in opinions requested in underwritten offerings, (3) obtain
“comfort” letters from the independent certified public accountants of Frontier
(and, if necessary, any other certified public accountant of any subsidiary of
Frontier, or of any business acquired by Frontier for which financial statements
and financial data are or are required to be included in the Registration
Statement) addressed to each selling Holder (to the extent permitted by
applicable professional standards) and Underwriter of Registrable Securities,
such letters to be in customary form and covering matters of the type
customarily covered in “comfort” letters in connection with underwritten
offerings, including but not limited to financial information contained in any
preliminary prospectus or Prospectus and (4) deliver such documents and
certificates as may be reasonably requested by the Holders of a majority in
principal amount of the Registrable Securities being sold or the Underwriters,
and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of Frontier made
pursuant to clause (1) above and to evidence compliance with any customary
conditions contained in an underwriting agreement;

      

      (b)         In
the case of a Shelf Registration Statement, Frontier may require each Holder of
Registrable Securities to furnish to Frontier such information regarding such
Holder and the proposed disposition by such Holder of such Registrable
Securities as Frontier may from time to time reasonably request in
writing.

      

      (c)         In
the case of a Shelf Registration Statement, each Holder of Registrable
Securities covered in such Shelf Registration Statement agrees that, upon
receipt of any notice from Frontier of the happening of any event of the kind
described in Section 3(a)(v)(3) or 3(a)(v)(5) hereof, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to the Shelf
Registration Statement or use of the Prospectus until such Holder’s receipt of
the copies of the supplemented or amended Prospectus contemplated by Section
3(a)(ix) hereof and, if so directed by Frontier, such Holder will deliver to
Frontier all copies in its possession, other than permanent file copies then in
such Holder’s possession, of the Prospectus covering such Registrable Securities
that is current at the time of receipt of such notice.

      

      (d)         If
Frontier shall give any notice to suspend the disposition of Registrable
Securities pursuant to a Registration Statement, Frontier shall extend the
period during which such Registration Statement shall be maintained effective
pursuant to this Agreement by the number of days during the period from and
including the date of the giving of such notice to and including the date when
the Holders of such Registrable Securities shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions.
Frontier may give any such notice only twice during any 365-day period and any
such suspensions shall not exceed 30 days for each suspension and there shall
not be more than two suspensions in effect during any 365-day
period.

       

       

      
        
          
          

        

        
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      (e)         The
Holders of Registrable Securities covered by a Shelf Registration Statement who
desire to do so may sell such Registrable Securities in an Underwritten
Offering.  In any such Underwritten Offering, the investment bank or
investment banks and manager or managers (each an “Underwriter”) that will
administer the offering will be selected by the Holders of a majority in
principal amount of the Registrable Securities included in such
offering.

      

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

      

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

      

      (b)         In
light of the above, and notwithstanding the other provisions of this Agreement,
Frontier agrees to amend or supplement the Prospectus contained in the Exchange
Offer Registration Statement for a period of up to 180 days after the last
Exchange Date (as such period may be extended pursuant to Section 3(d) of this
Agreement), in order to expedite or facilitate the disposition of any Exchange
Securities by Participating Broker-Dealers consistent with the positions of the
Staff recited in Section 4(a) above.  Frontier further agrees that
Participating Broker-Dealers shall be authorized to deliver such Prospectus (or,
to the extent permitted by law, make available) during such period in connection
with the resales contemplated by this Section 4.

      

      (c)         The
Initial Purchasers shall have no liability to Frontier or any Holder with
respect to any request that they may make pursuant to Section 4(b)
above.

       

       

      
        
          
          

        

        
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      5.           Indemnification and
Contribution.  (a)  Frontier agrees to indemnify and
hold harmless (i) each Initial Purchaser and each Holder, their respective
affiliates, directors and officers and each Person, if any, who controls any
Initial Purchaser or any Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities (including, without limitation, legal
fees and other expenses reasonably incurred in connection with any suit, action
or proceeding or any claim asserted, as such fees and expenses are incurred),
joint or several, that arise out of, or are based upon, (1) any untrue statement
or alleged untrue statement of a material fact contained in any Registration
Statement or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein not misleading, or (2) any untrue statement or alleged untrue statement
of a material fact contained in any Prospectus, any Free Writing Prospectus used
in violation of this Agreement or any “issuer information” (“Issuer
Information”) filed or required to be filed pursuant to Rule 433(d) under the
Securities Act, or any omission or alleged omission to state therein a material
fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, in each case except
insofar as such losses, claims, damages or liabilities arise out of, or are
based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating
to any Initial Purchaser, or information relating to any Holder furnished to
Frontier in writing through the Representative, or any selling Holder,
respectively expressly for use therein.  In connection with any
Underwritten Offering permitted by Section 3, Frontier will also indemnify the
Underwriters, if any, selling brokers, dealers and similar securities industry
professionals participating in the distribution, their respective affiliates and
each Person who controls such Persons (within the meaning of the Securities Act
and the Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any Registration
Statement, any Prospectus, any Free Writing Prospectus or any Issuer
Information.

      

      (b)         Each
Holder agrees, severally and not jointly, to indemnify and hold harmless
Frontier, the Initial Purchasers and the other selling Holders, the directors of
Frontier, each officer of Frontier who signed the Registration Statement and
each Person, if any, who controls Frontier, any Initial Purchaser and any other
selling Holder within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act to the same extent as the indemnity set forth in
paragraph (a) above, but only with respect to any losses, claims, damages or
liabilities that arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to such Holder furnished to Frontier in
writing by such Holder expressly for use in any Registration Statement and any
Prospectus.

       

       

      
        
          
          

        

        
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      (c)         If
any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person
in respect of which indemnification may be sought pursuant to either paragraph
(a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify
the Person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the
failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have under paragraph (a) or (b) above except to the extent
that it has been materially prejudiced (through the forfeiture of substantive
rights or defenses) by such failure; and provided, further, that the
failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have to an Indemnified Person otherwise than under
paragraph (a) or (b) above.  If any such proceeding shall be brought
or asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5
that the Indemnifying Person may designate in such proceeding and shall pay the
reasonable fees and expenses of such counsel related to such proceeding, as
incurred.  In any such proceeding, any Indemnified Person shall have
the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Person unless (i) the Indemnifying
Person and the Indemnified Person shall have mutually agreed to the contrary;
(ii) the Indemnifying Person has failed within a reasonable time to retain
counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified
Person shall have reasonably concluded that there may be legal defenses
available to it that are different from or in addition to those available to the
Indemnifying Person; or (iv) the named parties in any such proceeding (including
any impleaded parties) include both the Indemnifying Person and the Indemnified
Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between
them.  It is understood and agreed that the Indemnifying Person shall
not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the reasonable fees and expenses of more than one
separate firm (in addition to one local counsel in each relevant jurisdiction)
for all Indemnified Persons, and that all such fees and expenses shall be
reimbursed as they are incurred.  Any such separate firm (x) for any
Initial Purchaser, its affiliates, directors and officers and any control
Persons of such Initial Purchaser shall be designated in writing by the
Representative, (y) for any Holder, its directors and officers and any control
Persons of such Holder shall be designated in writing by the Majority Holders
and (z) in all other cases shall be designated in writing by
Frontier.  The Indemnifying Person shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the
Indemnifying Person agrees to indemnify each Indemnified Person from and against
any loss or liability by reason of such settlement or judgment if such loss or
liability is subject to indemnification by the Indemnifying Person pursuant to
paragraphs (a) and (b) above.  Notwithstanding the foregoing sentence,
if at any time an Indemnified Person shall have requested that an Indemnifying
Person reimburse the Indemnified Person for fees and expenses of counsel as
contemplated by this paragraph, the Indemnifying Person shall be liable for any
settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 45 days after receipt by the Indemnifying
Person of such request and (ii) such Indemnifying Person shall have received
notice of the terms of such settlement at least 30 days prior to such settlement
being entered into and (iii) the Indemnifying Person shall not have reimbursed
the Indemni­fied Person in accordance with such request prior to the date of
such settlement unless such Indemnifying Person has (a) paid all undisputed
amounts and only failed to pay amounts disputed in good faith and (b) provided
detail regarding the reasons for the failure to pay amounts requested by the
Indemnifying Person.  No Indemnifying Person shall, without the
written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (A) includes an unconditional release
of such Indemnified Person, in form and substance reasonably satisfactory to
such Indemnified Person, from all liability on claims that are the subject
matter of such proceeding and (B) does not include any statement as to or any
admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person.

       

       

      
        
          
          

        

        
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      (d)         If
the indemnification provided for in paragraphs (a) and (b) above is unavailable
to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under
such paragraph, in lieu of indemnifying such Indemnified Person thereunder,
shall contribute to the amount paid or payable by such Indemnified Person as a
result of such losses, claims, damages or liabilities (i) in such proportion as
is appropriate to reflect the relative benefits received by Frontier from the
offering of the Securities and the Exchange Securities, on the one hand, and by
the Holders from receiving Securities or Exchange Securities registered under
the Securities Act, on the other hand, or (ii) if the allocation provided by
clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative fault of Frontier on the one hand and the Holders on the
other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations.  The relative fault of Frontier on the one hand and
the Holders on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by Frontier or by the Holders and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

      

      (e)         Frontier
and the Holders agree that it would not be just and equitable if contribution
pursuant to this Section 5 were determined by pro rata allocation (even
if the Holders were treated as one entity for such purpose) or by any other
method of allocation that does not take account of the equitable considerations
referred to in paragraph (d) above.  The amount paid or payable by an
Indemnified Person as a result of the losses, claims, damages and liabilities
referred to in paragraph (d) above shall be deemed to include, subject to the
limitations set forth above, any reasonable legal or other expenses incurred by
such Indemnified Person in connection with any such action or
claim.  Notwithstanding the provisions of this Section 5, in no event
shall a Holder be required to contribute any amount in excess of the amount by
which the total price at which the Securities or Exchange Securities sold by
such Holder exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.  The Holders’ obligations to contribute
pursuant to this Section 5 are several and not joint.

      

      (f)          The
remedies provided for in this Section 5 are not exclusive and shall not limit
any rights or remedies that may otherwise be available to any Indemnified Person
at law or in equity.

      

      (g)         The
indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers
or any Holder or any Person controlling any Initial Purchaser or any Holder, or
by or on behalf of Frontier or the officers or directors of or any Person
controlling Frontier, (iii) acceptance of any of the Exchange Securities and
(iv) any sale of Registrable Securities pursuant to a Shelf Registration
Statement.

       

       

      
        
          
          

        

        
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      6.           General.

      

      (a)         No Inconsistent
Agreements.   Frontier represents, warrants and agrees that (i)
the rights granted to the Holders hereunder do not in any way conflict with and
are not inconsistent with the rights granted to the holders of any other
outstanding securities issued or guaranteed by Frontier under any other
agreement and (ii) Frontier has not entered into, or on or after the date of
this Agreement will not enter into, any agreement that is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof.

      

      (b)         Amendments and
Waivers.   The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given
unless Frontier has obtained the written consent of Holders of at least a
majority in aggregate principal amount of the outstanding Registrable Securities
affected by such amendment, modification, supplement, waiver or consent; provided that no
amendment, modification, supplement, waiver or consent to any departure from the
provisions of Section 5 hereof shall be effective as against any Holder of
Registrable Securities unless consented to in writing by such
Holder.  Any amendments, modifications, supplements, waivers or
consents pursuant to this Section 6(b) shall be by a writing executed by each of
the parties hereto.

      

      (c)         Notices.  All
notices and other communications provided for or permitted hereunder shall be
made in writing by hand-delivery, registered first-class mail, telex,
telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder,
at the most current address given by such Holder to Frontier by means of a
notice given in accordance with the provisions of this Section 6(c), which
address initially is, with respect to the Initial Purchasers, the address set
forth in the Purchase Agreement; (ii) if to Frontier, initially at Frontier’s
address set forth in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this
Section 6(c); and (iii) to such other persons at their respective addresses as
provided in the Purchase Agreement and thereafter at such other address, notice
of which is given in accordance with the provisions of this Section
6(c).  All such notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.  Copies of all such notices, demands or other
communications shall be concurrently delivered by the Person giving the same to
the Trustee, at the address specified in the Indenture.

      

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

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      
 

      (e)         Third Party
Beneficiaries.  Each Holder shall be a third party beneficiary
to the agreements made hereunder between Frontier, on the one hand, and the
Initial Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of other Holders
hereunder.

      

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

      

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

      

      (h)         Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

      

      (j)           Entire Agreement;
Severability.  This Agreement contains the entire agreement
between the parties relating to the subject matter hereof and supersedes all
oral statements and prior writings with respect thereto.  If any term,
provision, covenant or restriction contained in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable or against
public policy, the remainder of the terms, provisions, covenants and
restrictions contained herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.  Frontier and the Initial
Purchasers shall endeavor in good faith negotiations to replace the invalid,
void or unenforceable provisions with valid provisions the economic effect of
which comes as close as possible to that of the invalid, void or unenforceable
provisions.

      

      

      [Signature
Page Follows]

       

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      
 

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

    

     

     

    
      
        	 	FRONTIER
      COMMUNICATIONS CORPORATION 	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

      

      
        
           

           

           

           

           

          
 

           

          
 

           
[Signature Page to Registration Rights Agreement – 2015
Notes]

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      Confirmed
and accepted as of the date first above written:

      

      J.P.
MORGAN SECURITIES INC.

      

      For
itself and on behalf of the

       several
Initial Purchasers

       

      
        
          	
                   

                   

                  By

                	 
      
	 
      	
                  Authorized
      Signatory

                

        

         

         

         

         

         

         

         

         

         

         

         

         

        
          

          [Signature
Page to Registration Rights Agreement – 2015 Notes]

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