Document:

Exhibit 4.1

 

Execution Copy

	
   

  
	
   

  
	
   

  
	
  QWEST CORPORATION

  

 

 

8 3/8% Notes due 2016

 

 

 

Sixth Supplemental Indenture

 

Dated as of April 13, 2009

 

 

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

	
   

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  ONE

  
	
   

  	
   

  	
   

  
	
  THE
  NOTES

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Designation
  of Notes

  	
  2

  
	
  Section 1.02.

  	
  Other
  Terms of the Notes

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  TWO

  
	
   

  	
   

  	
   

  
	
  CERTAIN
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Definitions

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  THREE

  
	
   

  	
   

  	
   

  
	
  ADDITIONAL
  TERMS

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Form and
  Dating

  	
  5

  
	
  Section 3.02.

  	
  Book-Entry
  Provisions for Global Notes

  	
  6

  
	
  Section 3.03.

  	
  Special Transfer
  and Exchange Provisions

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  FOUR

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Amendment
  and Supplement

  	
  10

  
	
  Section 4.02.

  	
  Indenture

  	
  10

  
	
  Section 4.03.

  	
  Governing
  Law

  	
  10

  
	
  Section 4.04.

  	
  No Adverse
  Interpretation of Other Agreements

  	
  11

  
	
  Section 4.05.

  	
  Successors
  and Assigns

  	
  11

  
	
  Section 4.06.

  	
  Duplicate
  Originals

  	
  11

  
	
  Section 4.07.

  	
  Severability

  	
  11

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Note

  	
   

  
	
  Exhibit A-1

  	
  -

  	
  Form of Certificate to be delivered in
  connection with transfers of interests in the Temporary Regulation S Global
  Note

  	
   

  
	
  Exhibit A-2

  	
  -

  	
  Form of Certificate to be delivered in
  connection with transfers pursuant to Regulation S

  	
   

  
					

 

i

 

SIXTH SUPPLEMENTAL INDENTURE dated as of April 13,
2009 (this “Supplemental Indenture”) by and between
QWEST CORPORATION, a Colorado corporation (formerly known as U S WEST Communications,
Inc.) (the “Company”), and U.S. BANK NATIONAL
ASSOCIATION, as trustee under the Indenture (as defined below) with respect to
the Notes (as defined below) (the “Trustee”), as
supplemented by the First Supplemental Indenture (as defined below), the Second
Supplemental Indenture (as defined below), the Third Supplemental Indenture (as
defined below), the Fourth Supplemental Indenture (as defined below) and the
Fifth Supplemental Indenture (as defined below).  The Trustee, and each other trustee appointed
as such with respect to the Securities of any series issued under the
Indenture, shall be the “Trustee” (as defined in the Indenture, as supplemented
hereby) for all purposes under the Indenture with respect to the applicable
series of Securities but, for the avoidance of doubt, not with respect to any
series of Securities for which such Trustee has not been appointed trustee under
the terms of the Indenture and/or any supplement thereto).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the holders of Notes:

 

WHEREAS, the Company and Bank of New York Trust
Company, National Association (as successor in interest to Bank One Trust
Company, National Association), are parties to that certain Indenture dated as
of October 15, 1999 (the “Base Indenture,”
and as supplemented by the First Supplemental Indenture, the Second
Supplemental Indenture, the Third Supplemental Indenture, the Fourth
Supplemental Indenture, the Fifth Supplemental Indenture and this Sixth
Supplemental Indenture, the “Indenture”)
providing for the issuance from time to time of senior debt securities (“Securities”) to be issued in one or more series;

 

WHEREAS, the Company and the Trustee are parties to
the First Supplemental Indenture (the “First Supplemental
Indenture”) dated as of August 19, 2004, providing for the amendment
and supplement of the terms of the Base Indenture and the issuance by the Company
of a series of Securities, designated as its 7.875% Notes due 2011, in an aggregate
principal amount of $575,000,000.

 

WHEREAS, the Company and the Trustee are parties to
the Second Supplemental Indenture (the “Second Supplemental
Indenture”) dated as of November 23, 2004, providing for the issuance
by the Company of Additional Notes of its series of Securities designated as
its 7.875% Notes due 2011, in an aggregate principal amount of $250,000,000.

 

WHEREAS, the Company and the Trustee are parties to
the Third Supplemental Indenture (the “Third Supplemental
Indenture”) dated as of June 17, 2005, providing for the issuance by
the Company of a series of Securities designated as its 7.625% Notes due 2015,
in an aggregate principal amount of $400,000,000 and a series of Securities
designated as its Floating Rate Notes due 2013, in an aggregate principal
amount of $750,000,000.

 

WHEREAS, the Company and the Trustee are parties to the
Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”)
dated as of August 8, 2006, providing for the issuance by the Company of a
series of Securities designated as its 7.5% Notes due 2014, in an aggregate
principal amount of $600,000,000.

 

1

 

WHEREAS, the Company and the Trustee are parties to
the Fifth Supplemental Indenture (the “Fifth Supplemental
Indenture”) dated as of May 16, 2007, providing for the issuance by
the Company of a series of Securities designated as its 6.5% Notes due 2017, in
an aggregate principal amount of $500,000,000.

 

WHEREAS, the Company desires and has requested the
Trustee to join it in the execution and delivery of this Supplemental Indenture
in order to establish and provide for the issuance by the Company of a series
of Securities, designated as its 8 3/8% Notes due 2016 (the “Notes”), in an initial aggregate principal amount of
$810,500,000.00.  The Notes shall be substantially
in the form attached hereto as Exhibit A.

 

WHEREAS, Section 9.01 of the Base Indenture provides
that a supplemental indenture may be entered into by the Company and the
Trustee without the consent of any Holders to establish the form or terms of
Securities of any Series as permitted by Section 2.02 of the Base Indenture;

 

WHEREAS, the conditions set forth in the Indenture
for the execution and delivery of this Supplemental Indenture have been
complied with; and

 

WHEREAS, all things necessary to make this
Supplemental Indenture a valid agreement of the Company and the Trustee, in
accordance with its terms, and a valid amendment of, and supplement to, the
Indenture have been done.

 

NOW, THEREFORE, in consideration of the premises and
the purchase and acceptance of the Notes by the holders thereof, the Company
covenants and agrees with the Trustee, for the equal and ratable benefit of the
Holders, that the Indenture is supplemented and amended, to the extent
expressed herein, as follows:

 

ARTICLE
ONE

 

THE
NOTES

 

Section 1.01.                                  Designation of
Notes.

 

The changes, modifications and supplements to the
Indenture effected by this Supplemental Indenture shall be applicable only with
respect to, and govern the terms of, the Notes, which shall not be limited in aggregate
principal amount, and shall not apply to any other Securities that have been or
may be issued under the Indenture unless a supplemental indenture with respect
to such other Securities specifically incorporates such changes, modifications
and supplements.  Pursuant to this
Supplemental Indenture, there is hereby created and designated a series of Securities
under the Indenture entitled “8 3/8% Notes due 2016.”  The Notes shall be in the form of Exhibit A
hereto.  The Notes may bear an
appropriate legend regarding original issue discount for federal income tax
purposes.  Subject to the terms in the
Indenture, as supplemented by this Supplemental Indenture, the Company may, at
its option, without consent from the Holders, issue additional Notes from time
to time.  For all purposes under the Indenture,
the term “Notes” shall include the Notes initially issued on the date of
original issuance of the Notes and any other Notes issued after such date under
the Indenture, as supplemented hereby.

 

2

 

Section 1.02.                                  Other Terms of
the Notes.

 

Without limiting the foregoing provisions of this Article
One, the terms of the Notes shall be as set forth in the form of Note set forth
in Exhibit A hereto and as provided in the Indenture.

 

The Notes shall be issuable in denominations of
$2,000 and integral multiples of $1,000 in excess of $2,000.  The Notes shall be payable and may be
presented for payment, purchase, conversion, registration of transfer and
exchange, without service charge, at the office of the Company maintained for
such purpose in New York, New York, which shall initially be the office or
agency of the Trustee.

 

ARTICLE
TWO

 

CERTAIN
DEFINITIONS

 

Section 2.01.                                  Definitions.

 

(a)  The following terms have the meanings set
forth below in this Supplemental Indenture. Capitalized terms used but not
otherwise defined herein shall have the meanings ascribed to such terms in the
Indenture (as previously supplemented). To the extent terms defined herein
differ from the Indenture, the terms defined herein will govern.

 

“Business Day”
means any day other than a Legal Holiday.

 

“Depository”
means The Depository Trust Company, New York, New York, or a successor thereto
registered under the Exchange Act or other applicable statute or regulation.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Exchange Offer”
means an offer that may be made by the Company pursuant to the Registration
Rights Agreement to exchange Notes bearing the Private Placement Legend for the
Exchange Securities.

 

“Exchange Securities”
has the meaning set forth in the Registration Rights Agreement.

 

“Initial Global Notes”
means the 144A Global Note and the Regulation S Global Note.

 

“Initial Purchasers”
means the several initial purchasers named in Schedule A to the Purchase
Agreement.

 

“Institutional Accredited
Investor” or “IAI” means an “accredited
investor” with the meaning of Rule 501(a)(1), (2), (3) or (7) under the
Securities Act.

 

“Issue Date”
means the initial date of issuance of the Notes.

 

3

 

“Legal Holiday”
means a Saturday, a Sunday or a day on which banking institutions in the City
of New York are not required to be open.

 

“Non-U.S. Person”
has the meaning assigned to such term in Regulation S.

 

“Private Placement Legend”
means the following legend:

 

“THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE ‘‘SECURITIES ACT’’) AND MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A
PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION COMPLYING
WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE), (4) TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (5)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (B)
IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES AND OTHER JURISDICTIONS.”

 

“Purchase Agreement”
means the Purchase Agreement dated as of April 7, 2009 relating to the issuance
of Notes hereunder, by and among the Company and the Initial Purchasers.

 

 “Qualified Institutional Buyer” or “QIB”
shall have the meaning specified in Rule 144A under the Securities Act.

 

“Registration Rights
Agreement” means the Registration Rights Agreement dated as of the
Issue Date by and among the Company and the Initial Purchasers.

 

“Regulation S”
means Regulation S under the Securities Act.

 

“Restricted Security”
means a Note that constitutes a “Restricted Security” within the meaning of Rule
144(a)(3) under the Securities Act; provided, however,
that the Trustee shall be entitled to request and conclusively rely on an
Opinion of Counsel with respect to whether any Note constitutes a Restricted Security.

 

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

 

“Securities Act”
means the Securities Act of 1933, as amended

 

(b)  
Other Definitions

 

4

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “144A
  Global Note”

  	
   

  	
  3.01(a)

  
	
   

  	
   

  	
   

  
	
  “Global
  Notes”

  	
   

  	
  3.01(c)

  
	
   

  	
   

  	
   

  
	
  “Participants”

  	
   

  	
  3.02(b)

  
	
   

  	
   

  	
   

  
	
  “Permanent
  Regulation S Global Note”

  	
   

  	
  3.01(b)

  
	
   

  	
   

  	
   

  
	
  “Physical
  Notes”

  	
   

  	
  3.01(d)

  
	
   

  	
   

  	
   

  
	
  “Regulation
  S Global Note”

  	
   

  	
  3.01(b)

  
	
   

  	
   

  	
   

  
	
  “Temporary
  Regulation S Global Note”

  	
   

  	
  3.01(b)

  

 

(c)  For all purposes of the Indenture, except
as otherwise expressly provided or unless the context otherwise requires, the
terms defined in this Article Two have the meanings assigned to them in this
Article, and include the plural, as well as the singular.

 

ARTICLE
THREE

 

ADDITIONAL
TERMS

 

Section 3.01.                                  Form and Dating

 

(a)  
Notes offered and sold in reliance on Rule 144A shall be issued
initially in the form of a single permanent global note in registered form,
substantially in the form set forth as Exhibit A hereto (the “144A Global Note”), deposited with the Trustee, as custodian
for the Depository, duly executed by the Company and authenticated by the
Trustee as hereinafter provided and shall bear the appropriate legends set
forth on Exhibit A hereto.

 

(b)  
Notes offered and sold in offshore transactions in reliance on
Regulation S shall be issued initially in the form of a single temporary global
note in registered form, substantially in the form set forth as Exhibit A
hereto (the “Temporary Regulation S Global Note”),
deposited with the Trustee, as custodian for the Depository, duly executed by
the Company and authenticated by the Trustee as hereinafter provided and shall
bear the appropriate legends set forth on Exhibit A hereto. Reasonably
promptly following the date that is 40 days after the later of the commencement
of the offering of the Notes in reliance on Regulation S and the Issue Date,
upon receipt by the Trustee and the Company of a duly executed certificate
certifying that the Holder of the beneficial interest in the Temporary
Regulation S Global Note is a Non-U.S. Person, substantially in the form of the
certificate attached to Exhibit A-1 hereto, from the Depository, a
single permanent global note in registered form, substantially in the form set
forth as Exhibit A hereto, bearing the appropriate legends set forth on
such Exhibit A (the “Permanent Regulation S
Global Note,” and together with the Temporary Regulation S Global
Note, the “Regulation S Global Note”), duly
executed by the Company and authenticated by the Trustee as 

 

5

 

hereinafter provided shall
be deposited with the Trustee, as custodian for the Depository, and the
Registrar shall reflect on its books and records the cancellation of the
Temporary Regulation S Global Note and the issuance of the Permanent Regulation
S Global Note.

 

(c)  
Notes issued after the Issue Date shall be issued initially in the form
of one or more global notes in registered form, substantially in the form set
forth as Exhibit A, deposited with the Trustee, as custodian for the
Depository, duly executed by the Company and authenticated by the Trustee as
hereinafter provided and shall bear any legends required by applicable law
(together with the Initial Global Notes, the “Global Notes”)
or as Physical Notes.

 

(d)   The
aggregate principal amount of the Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depository, as hereinafter provided. Notes issued in exchange
for interests in a Global Note pursuant to Section 3.03 may be issued in the
form of permanent certificated notes in registered form, substantially in the
form set forth as Exhibit A hereto, and bearing the applicable legends,
if any (the “Physical Notes”).

 

Section 3.02.                                  Book-Entry
Provisions for Global Notes.

 

(a)   The
Global Notes initially shall (i) be registered in the name of the Depository or
the nominee of such Depository, (ii) be delivered to the Trustee as custodian
for such Depository and (iii) bear legends as set forth in Exhibit A, as
applicable.

 

(b)  
Members of, or participants in, the Depository (“Participants”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by the Depository, or the Trustee as its custodian, or under
the Global Note, and the Depository may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner of the Global
Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and Participants, the operation of customary practices governing the exercise
of the rights of a Holder of any Note.

 

(c)  
Transfers of Global Notes shall be limited to transfers in whole, but
not in part, to the Depository, its successors or their respective nominees.
Interests of beneficial owners in the Global Notes may be transferred or
exchanged for Physical Notes in accordance with the rules and procedures of the
Depository and the provisions of Section 3.03. In addition, Physical Notes
shall be transferred to all beneficial owners in exchange for their beneficial
interests in Global Notes, upon the written request of such owners or upon the
Company’s written instructions to the Trustee, if (i) the Depository notifies
the Company that it is unwilling or unable to act as Depository for any Global
Note or (ii) an Event of Default shall have occurred and be continuing. Upon
any issuance of a Physical Note in accordance with this Section 3.02(c), the
Trustee is required to register such Physical Note in the name of, and cause
the same to be delivered to, such person or persons (or the nominee of any
thereof). All such Physical Notes shall bear the applicable legends, if any.

 

6

 

(d)   In
connection with any transfer or exchange of a portion of the beneficial interest
in a Global Note to beneficial owners pursuant to paragraph (c) of this Section
3.02, the Registrar shall (if one or more Physical Notes are to be issued)
reflect on its books and records the date and a decrease in the principal
amount of such Global Note in an amount equal to the principal amount of the
beneficial interest in the Global Note to be transferred, and the Company shall
execute, and the Trustee shall authenticate and deliver, one or more Physical
Notes of authorized denominations in an aggregate principal amount equal to the
principal amount of the beneficial interest in the Global Note so transferred.

 

(e)   In
connection with the transfer of a Global Note as an entirety to beneficial
owners pursuant to paragraph (c) of this Section 3.02, such Global Note shall
be deemed to be surrendered to the Trustee for cancellation, and (i) the
Company shall execute, and (ii) the Trustee shall upon written instructions
from the Company authenticate and deliver, to each beneficial owner identified
by the Depository in exchange for its beneficial interest in such Global Note,
an equal aggregate principal amount of Physical Notes of authorized
denominations.

 

(f)   
Any Physical Note constituting a Restricted Security delivered in
exchange for an interest in a Global Note pursuant to paragraph (c) or (d) of
this Section 3.02 shall, except as otherwise provided by Section 3.03, bear the
Private Placement Legend.

 

(g)   The
Holder of any Global Note may grant proxies and otherwise authorize any Person,
including Participants and Persons that may hold interests through
Participants, to take any action which a Holder is entitled to take under this
Indenture or the Notes.

 

Section 3.03.                                  Special
Transfer and Exchange Provisions.

 

(a)    Transfers to QIBs.   
The following provisions shall apply with respect to the registration of
any proposed transfer of a Restricted Security to a QIB:

 

(i)  the Registrar shall register the transfer of any Restricted
Security, whether or not such Note bears the Private Placement Legend, if (x) the
requested transfer is after the first anniversary of the Issue Date; provided, however, that neither the Company nor any
Affiliate of the Company has held any beneficial interest in such Note, or
portion thereof, at any time on or prior to the first anniversary of the Issue
Date or (y) such transfer is being made by a proposed transferor who has
checked the box provided for on the applicable Global Note stating, or has
otherwise advised the Company and the Registrar in writing, that such sale is
being made inside the United States to a QIB that purchases for its own account
or for the account of a qualified institutional buyer to a transferee who has
signed the certification provided for on the applicable Global Note stating, or
has otherwise advised the Company and the Registrar in writing, that it is
purchasing the Notes for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a QIB
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the foregoing representations in order to claim this exemption from
registration provided by Rule 144A;

 

7

 

(ii)  if the proposed transferee is a Participant and the Notes to
be transferred consist of Physical Notes which after transfer are to be evidenced
by an interest in the 144A Global Note, upon receipt by the Registrar of the
Physical Note and written instructions given in accordance with the Depository’s
and the Registrar’s procedures, the Registrar shall register the transfer and
reflect on its books and records the date and an increase in the principal
amount of the 144A Global Note in an amount equal to the principal amount of
Physical Notes to be transferred, and the Registrar shall cancel the Physical
Notes so transferred; and

 

(iii)  if the proposed transferor is a Participant seeking to
transfer an interest in the Regulation S Global Note, upon receipt by the
Registrar of written instructions given in accordance with the Depository’s and
the Registrar’s procedures, the Registrar shall register the transfer and
reflect on its books and records the date and (A) a decrease in the
principal amount of the Regulation S Global Note in an amount equal to the
principal amount of the Notes to be transferred and (B) an increase in the
principal amount of the 144A Global Note in an amount equal to the principal
amount of the Notes to be transferred.

 

(b)    Transfers of Interests in the Temporary Regulation S Global Note.    The following provisions shall apply with
respect to the registration of any proposed transfer of interests in the
Temporary Regulation S Global Note:

 

(i)  the Registrar shall register the transfer of an interest in
the Temporary Regulation S Global Note, whether or not such Global Note bears
the Private Placement Legend, if the proposed transferor has delivered to the
Registrar a certificate signed by the transferee substantially in the form of
the certificate attached to Exhibit A-1 stating, among other
things, that the proposed transferee is a Non-U.S. Person (except for a
transfer to an Initial Purchaser); and

 

(ii)  if the proposed transferee is a Participant, upon receipt by
the Registrar of the documents referred to in clause (i) above, if required,
and instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and
amount of such transfer of an interest in the Temporary Regulation S Global
Note.

 

(c)    Transfers Pursuant to Regulation S.    The following provisions shall apply with
respect to any transfer of a Restricted Security pursuant to Regulation S:

 

(i)  the Registrar shall register any proposed transfer of a
Restricted Security pursuant to Regulation S upon receipt of a certificate
substantially in the form of Exhibit A-2 from the proposed
transferor and such certifications, legal opinions and other information as the
Trustee or the Company may reasonably request; and

 

(ii)  (a) if the proposed transferor is a Participant holding
a beneficial interest in the Rule 144A Global Note or the Note to be
transferred consists of Physical Notes, upon receipt by the Registrar of (x) the
documents required by paragraph (i) and (y) instructions in accordance
with the Depository’s and the Registrar’s procedures, the Registrar 

 

8

 

shall reflect on its books and records the date and a decrease in the
principal amount of the Rule 144A Global Note in an amount equal to the
principal amount of the beneficial interest in the Rule 144A Global Note
to be transferred or cancel the Physical Notes to be transferred, and (b) if
the proposed transferee is a Participant, upon receipt by the Registrar of
instructions given in accordance with the Depository’s and the Registrar’s procedures,
the Registrar shall reflect on its books and records the date and an increase
in the principal amount of the Permanent Regulation S Global Note in an amount
equal to the principal amount of the Rule 144A Global Note or the Physical
Notes, as the case may be, to be transferred.

 

(d)    Exchange Offer.   
Upon the occurrence of an Exchange Offer in accordance with the
Registration Rights Agreement, the Company shall issue and, upon receipt of an
authentication order in accordance with the Indenture, the Trustee shall
authenticate one or more Global Notes and/or Physical Notes not bearing the
Private Placement Legend in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Initial Global Notes or
Physical Notes, as the case may be, tendered for acceptance in accordance with
such Exchange Offer and accepted for exchange in such Exchange Offer.

 

(e)    Restrictions on Transfer and Exchange of Global Notes.    Notwithstanding any other provisions of
this Indenture, a Global Note may not be transferred as a whole except by the
Depository to a nominee of the Depository or by a nominee of the Depository to
the Depository or another nominee of the Depository or by the Depository or any
such nominee to a successor Depository or a nominee of such successor
Depository.

 

(f)    Private Placement Legend.   
Upon the transfer, exchange or replacement of Notes not bearing the
Private Placement Legend unless otherwise required by applicable law, the
Registrar shall deliver Notes that do not bear the Private Placement Legend.
Upon the transfer, exchange or replacement of Notes bearing the Private
Placement Legend, the Registrar shall deliver only Notes that bear the Private
Placement Legend unless (i) there is delivered to the Trustee an Opinion
of Counsel reasonably satisfactory to the Company and the Trustee to the effect
that neither such legend nor the related restrictions on transfer are required
in order to maintain compliance with the provisions of the Securities Act or (ii) such
Note has been offered and sold (including pursuant to an Exchange Offer)
pursuant to an effective registration statement under the Securities Act.

 

(g)    General.    By its
acceptance of any Note bearing the Private Placement Legend, each Holder of
such a Note acknowledges the restrictions on transfer of such Note set forth in
this Indenture and in the Private Placement Legend and agrees that it will
transfer such Note only as provided in this Indenture.

 

The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to Section 3.02
or 3.03 hereof. The Company shall have the right to inspect and make copies of
all such letters, notices or other written communications at any reasonable
time upon the giving of reasonable written notice to the Registrar.

 

The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable 

 

9

 

law with respect to any
transfer of any interest in any Note (including any transfers between or among
Participants or beneficial owners of interests in any Global Note) other than
to require delivery of such certificates and other documentation or evidence as
are expressly required by, and to do so if and when expressly required by the
terms of, this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

 

The Trustee shall have no responsibility for the
actions or omissions of the Depository, or the accuracy of the books and
records of the Depository.

 

(h)    Cancellation and/or Adjustment of Global Note.    At such time as all beneficial interests in
a particular Global Note have been exchanged for Physical Notes or a particular
Global Note has been redeemed, repurchased or canceled in whole and not in
part, each such Global Note shall be returned to or retained and canceled by
the Trustee in accordance with Section 2.13 of the Indenture. At any time
prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Note or for Physical Notes, the
principal amount of Notes represented by such Global Note shall be reduced accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such reduction; and if
the beneficial interest is being exchanged for or transferred to a Person who
will take delivery thereof in the form of a beneficial interest in another
Global Note, such other Global Note shall be increased accordingly and an
endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

 

ARTICLE
FOUR

MISCELLANEOUS

 

Section 4.01.           Amendment and Supplement.

 

This Supplemental Indenture or the Notes may be
amended or supplemented as provided for in the Indenture.

 

Section 4.02.           Indenture.

 

In the event of any conflict between this
Supplemental Indenture and the Indenture, the provisions of this Supplemental
Indenture shall prevail.

 

Section 4.03.           Governing Law.

 

The laws of the State of New York shall govern this
Supplemental Indenture and the Securities of the Series created hereby.

 

10

 

Section 4.04.           No Adverse Interpretation of
Other Agreements.

 

This Supplemental Indenture may not be used to
interpret another indenture, loan or debt agreement of the Company or a
Subsidiary.  Any such indenture, loan or
debt agreement may not be used to interpret this Supplemental Indenture.

 

Section 4.05.           Successors and Assigns.

 

All covenants and agreements of the Company in this
Supplemental Indenture and the Notes shall bind its successors and
assigns.  All agreements of the Trustee
in this Supplemental Indenture shall bind its successors and assigns.

 

Section 4.06.           Duplicate Originals.

 

This Supplemental Indenture may be executed in counterparts,
each of which shall be an original, but such counterparts shall together
constitute but one instrument.

 

Section 4.07.           Severability.

 

In case any one or more of the provisions contained
in this Supplemental Indenture or in the Notes shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Supplemental Indenture or of the Notes.

 

[Signature
Pages Follow]

 

11

 

SIGNATURES

 

IN WITNESS WHEREOF, the parties have caused this
Supplemental Indenture to be duly executed, all as of the date first above
written.

 

	
   

  	
  QWEST CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oscar A. Martinez

  
	
   

  	
   

  	
  Name:

  	
  Oscar A. Martinez

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Assistant Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leland Hansen

  
	
   

  	
   

  	
  Name:

  	
  Leland Hansen

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

Exhibit A

 

[THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF
THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY.  THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER
OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY
TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

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

 

EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.15 OF
THE INDENTURE, TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN SECTION 2.08 OF THE INDENTURE.](1)

 

THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE ‘‘SECURITIES ACT’’) AND MAY NOT
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A
PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION
COMPLYING WITH 

 

(1)           This legend to appear only on Global Notes.

 

A-1

 

RULE 903 OR RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE), (4) TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (5) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (B) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES AND OTHER JURISDICTIONS.

 

[THIS GLOBAL NOTE IS A TEMPORARY GLOBAL NOTE FOR PURPOSES
OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”).  NEITHER THIS TEMPORARY GLOBAL NOTE NOR ANY INTEREST
HEREIN MAY BE OFFERED, SOLD OR DELIVERED, EXCEPT AS PERMITTED UNDER THE
INDENTURE REFERRED TO BELOW.

 

NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL NOTE
SHALL BE ENTITLED TO RECEIVE PAYMENT OF PRINCIPAL OR INTEREST HEREON UNLESS THE
REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS OF THE
INDENTURE.](2)

 

(2)           This legend to appear only on
Temporary Regulation S Global Notes.

 

A-2

 

THIS
NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271
ET SEQ. OF THE INTERNAL REVENUE CODE.  A
HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT,
ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTE BY SUBMITTING A REQUEST FOR SUCH
INFORMATION TO THE COMPANY AT THE FOLLOWING ADDRESS: 1801 CALIFORNIA STREET,
DENVER, CO 80202, ATTENTION: CHIEF FINANCIAL OFFICER.

 

	
  No. [     ]

  CUSIP
  No. [                  ]

  	
   

  	
  PRINCIPAL
  AMOUNT

  $[                        ]

  

 

QWEST CORPORATION

8 3/8% Note due 2016

 

QWEST CORPORATION, a corporation duly organized and
existing under the laws of the State of Colorado (such corporation, and its
successors and assigns under the Indenture hereinafter referred to, being
herein called the “Company”), for
value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of [·] DOLLARS
($[·]) (or such
lesser amount as shall be listed on the Schedule of Increases or Decreases in
Global Note attached hereto) on May 1, 2016 (the “Maturity
Date”), unless previously redeemed on any redemption date, by wire
transfer of immediately available funds of such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts and to pay interest thereon semiannually on
each May 1 and November 1, commencing November 1, 2009 (each, an
“Interest Payment Date”), and on the
Maturity Date at the rate per annum specified in the title of this Note, from April 13,
2009 (or from the most recent Interest Payment Date to which interest has been
paid or duly provided for) until payment of said principal sum has been made or
duly provided for.  Notwithstanding the
foregoing, if the Company shall default in the payment of interest due on any
Interest Payment Date, then this Note shall bear interest from the most recent
Interest Payment Date to which interest has been paid or duly provided for or,
if no interest has been paid on this Note or duly provided for, from April 13,
2009.  The interest so payable on any
Interest Payment Date, subject to certain exceptions provided in the Indenture
referred to herein, will be paid to the person in whose name this Note shall be
registered at the close of business on each April 15 and October 15
immediately prior to such Interest Payment Date, Maturity Date or redemption
date.  If any Interest Payment Date,
Maturity Date or redemption date is a Legal Holiday (as defined in the
Indenture) in New York, New York, the required payment shall be made on the
next succeeding day that is not a Legal Holiday as if it was made on the date
such payment was due and no interest will accrue on the amount so payable for
the period from and after such Interest Payment Date or Maturity Date, as the
case may be, to such next succeeding day. 
Interest will be computed on the basis of a 360-day year consisting of
twelve 30-day months.

 

This Note is one of the duly authorized series of
Securities of the Company, designated as the Company’s “8 3/8% Notes due 2016”
(the “Notes”), initially limited to the aggregate
principal amount of $810,500,000.00, all issued or to be issued under and
pursuant to an Indenture dated as of October 15, 1999 between the Company
and The Bank of New York Trust 

 

A-3

 

Company, N.A., as trustee
(as successor in interest to Bank One Trust Company, N.A.), as supplemented by
the First Supplemental Indenture dated as of August 19, 2004 by and
between the Company and U.S. Bank National Association, as trustee (the “Trustee”), the Second Supplemental Indenture dated as of November 23,
2004 between the Company and the Trustee, the Third Supplemental Indenture
dated as of June 17, 2005 between the Company and the Trustee, the Fourth
Supplemental Indenture dated as of August 8, 2006 between the Company and
the Trustee, the Fifth Supplemental Indenture dated as of May 16, 2007
between the Company and the Trustee and the Sixth Supplemental Indenture dated
as of April 13, 2009 between the Company and the Trustee as such may be
amended, modified or supplemented from time to time (as so amended, modified or
supplemented, the “Indenture”), to
which Indenture and all Indentures supplemental thereto reference is hereby
made for a description of the rights, limitation of rights, obligations, duties
and immunities thereunder of the Trustee, the Company and the Holders (the
words “Holders” or “Holder”
meaning the registered holders or registered holder of the Notes).  Exchange Notes (as such term is defined in
the Registration Rights Agreement referred to below) shall be deemed to be of
the same series as the Notes for purposes of the Indenture.

 

Pursuant to, but subject to the exceptions in, the
Registration Rights Agreement dated as of April 13, 2009 among the Company
and the Initial Purchasers named therein (as the same may be amended from time
to time, the “Registration Rights Agreement”),
in certain circumstances the Company may be obligated to use its commercially
reasonable efforts to consummate an exchange offer pursuant to which the Holder
of this Note shall have the right to exchange this Note for a 8 3/8% Note due
2016 of the Company which shall have been registered under the Securities Act
of 1933, as amended, in like principal amount and having terms identical in all
material respects to this Note (except that such Note shall not be entitled to
Additional Interest (as defined in the Registration Rights Agreement) and shall
not contain terms with respect to transfer restrictions).  Holders shall be entitled to receive certain
Additional Interest in the event of a Registration Default (as defined in the
Registration Rights Agreement) pursuant to and in accordance with the terms of
the Registration Rights Agreement.  Any
Additional Interest due will be payable in cash on the next succeeding May 1
or November 1, as the case may be, to Holders on the relevant regular
record dates for the payment of interest. 
The Company shall promptly provide the Trustee with notice of any change
in the interest rate borne by this Note.(3)

 

The Notes shall be redeemable at the option of the
Company in whole at any time or in part from time to time, at a redemption
price equal to the greater of (i) 100% of the principal amount of the
Notes to be redeemed or (ii) the sum, as determined by the Quotation Agent
(as defined below), of the present values of the principal amount of the Note
to be redeemed and the remaining scheduled payments of interest on the
principal amount of this Note to be redeemed from the redemption date to May 1,
2016 (excluding interest accrued to the redemption date) (the “Remaining Life”), discounted from their respective scheduled
payment dates to the redemption date on a semiannual basis (assuming a 360-day
year consisting of 30-day months) at 

 

(3)           This paragraph not to appear on Exchange Notes.

 

A-4

 

the Treasury Rate (as
defined below) plus 50 basis points, plus, in either case, accrued interest
thereon to the date of redemption.

 

If money sufficient to pay the redemption price of
and accrued interest on all of the Notes (or portions thereof) to be redeemed
on the redemption date is deposited with the Trustee or paying agent on or
before the redemption date and certain other conditions specified in the
Indenture are satisfied, then on and after such redemption date, interest will
cease to accrue on such Notes (or such portion thereof) called for redemption.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by the Quotation
Agent as having a maturity comparable to the Remaining Life that would be utilized,
at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities of comparable maturity with
the Remaining Life as of the applicable redemption date.

 

“Comparable Treasury Price”
means, with respect to any redemption date, the average of two Reference
Treasury Dealer Quotations for such redemption date.

 

“Quotation Agent”
means the Reference Treasury Dealer appointed by the Company.

 

“Reference Treasury Dealer”
means each of J.P. Morgan Securities Inc., Banc of America Securities LLC,
Morgan Stanley & Co. Incorporated and a Primary Treasury Dealer (as
defined below) selected by Wachovia Capital Markets, LLC, and their successors;
provided, however,
that if any of the foregoing ceases to be a primary U.S. Government securities
dealer in New York City (a “Primary Treasury Dealer”), the Company will
substitute therefor another primary U.S. Government securities dealer.

 

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, of the bid
and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such
Reference Treasury Dealer at 5:00 p.m., New York City time, on the third
business day preceding such redemption date.

 

“Treasury Rate”
means, with respect to any redemption date, the rate per annum equal to the
semiannual yield to maturity of the Comparable Treasury Issue, calculated on
the third business day preceding such redemption date using a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date.

 

Notice of any redemption will be mailed not less
than 15 nor more than 60 calendar days before the redemption date to the Holder
hereof at its registered address.  Unless
the Company defaults in payment of the redemption price, on and after the
redemption date interest will cease on the principal amount of this Note.

 

A-5

 

In case an Event of Default shall occur and be
continuing, the principal hereof may be declared, and upon such declaration
shall become, due and payable in the manner, with the effect and subject to the
conditions provided in the Indenture.

 

The Indenture contains provisions permitting the
Company and the Trustee, with the written consent of the Holders of a majority
in principal amount of the outstanding Securities of each series affected by a
supplemental indenture (with each series voting as a class), to enter into a
supplemental indenture to add any provisions to or to change or eliminate any
provisions of the Indenture or of any supplemental indenture or to modify, in
each case in any manner not covered by provisions in the Indenture relating to
amendments and waivers without the consent of Holders, the rights of the
Holders of each such series.  The Holders
of a majority in principal amount of the outstanding Securities of each series
affected by such waiver (with each series voting as a class), by notice to the
Trustee may waive compliance by the Company with any provision of the
Indenture, any supplemental indenture or the Securities of any such series,
except a Default in payment of the principal of or interest on any
Security.  However, without the consent
of each Holder affected, an amendment or waiver may not: (1) reduce the
amount of Notes whose Holders must consent to an amendment or waiver; (2) change
the rate or the time for payment of interest on any Security; (3) change
the principal or the fixed maturity of any Security; (4) waive a Default
in the payment of principal, premium, if any, or interest on any Security; (5) make
any Security payable in money other than that stated in the Security; or (6) make
any change in the provisions of the Indenture (i) with respect to the
rights of the Holders of a majority in principal amount of any series of
Securities, by notice to the Trustee, to waive an existing Default with respect
to that series and its consequences; (ii) with respect to the right of any
Holder of a Security to receive payment of principal of and interest on the
Security, on or after the respective due dates expressed in the Security, the
right of any Holder of a coupon to receive payment of interest due as provided
in such coupon, or the right to bring suit for enforcement of any such payments
on or after their respective dates; and (iii) described in this sentence.

 

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

 

No director, officer, employee or stockholder, as
such, of the Company shall have any liability for any obligations of the
Company under this Note or the Indenture or for any claim based on, in respect
of or by reason of such obligations or their creation.  Each Holder, by accepting this Note, waives
and releases all such liability.  The
waiver and release are part of the consideration for the issue of this Note.

 

The laws of the State of New York shall govern the
Indenture and this Note.

 

Ownership of this Note shall be proved by the
register for the Notes kept by the Registrar. 
The Company, the Trustee and any agent of the Company may treat the
person in whose name a Note is registered as the absolute owner thereof for all
purposes.

 

Terms used herein without definition that are
defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

A-6

 

Customary abbreviations may be used in the name of a
Holder or an assignee, such as:  TEN COM
(= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint
tenants with right of survivorship and not as tenants in common), CUST (= Custodian),
and U/G/M/A (= Uniform Gifts to Minors Act).

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuer has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

Unless the Certificate of Authentication hereon has
been executed by the Trustee under the Indenture referred to herein by the
manual or facsimile signature of one of its authorized officers, or on behalf
of the Trustee by the manual or facsimile signature of an authorized officer of
the Trustee’s authenticating agent, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

 

A-7

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed, manually or by facsimile, and its corporate
seal or a facsimile of its corporate seal to be imprinted herein.

 

Date:
[                  ]

 

	
   

  	
  QWEST CORPORATION

  
	
  (SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-8

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes of the series designated
herein, issued under the Indenture described herein.

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-9

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, the
undersigned hereby sell(s), assign(s) and transfer(s) unto

	
   

  

 

Please insert social security number or other
identifying number of assignee:

 

 

	
   

  	
   

  

 

Please print or type name and address
(including zip code) of assignee:

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

the within Note and all rights thereunder,
hereby irrevocably constituting and appointing                                           
attorney to transfer said Note of Qwest Corporation on the books of Qwest
Corporation, with full power of substitution in the premises.

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
			

 

NOTICE:  The
signature to this assignment must correspond with the name as written upon the
face of this Note in every particular without alteration or enlargement or any
change whatsoever.

 

A-10

 

CERTIFICATE
TO BE DELIVERED UPON EXCHANGE

OR
REGISTRATION OF TRANSFER

 

This certificate relates to
$                
principal amount of Notes held in (check applicable space)
            
book-entry or
              
definitive form by the undersigned.

 

The undersigned (Check one box below);

 

o  has requested the Trustee by written order to
deliver in exchange for its beneficial interest in the Note held by the Depository
a Note or Notes in definitive, registered form of authorized denominations and
an aggregate principal amount equal to its beneficial interest in such Note (or
the portion thereof indicated above); or

 

o  has requested the Trustee by written order to
exchange or register the transfer of a Note or Notes.

 

In connection with any transfer of any of the Notes
evidenced by this certificate occurring prior to the expiration of the holding
period referred to in Rule 144 under the Securities Act, the undersigned
confirms that such Notes are being transferred in accordance with its terms:

 

CHECK ONE BOX BELOW

 

o            (1)           to
the Company; or

 

o            (2)           inside
the United States to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act) that purchases for its own account or for the account
of a qualified institutional buyer in a transaction meeting the requirements of
Rule 144A; or

 

o            (3)           outside
the United States to a foreign person in a transaction meeting the requirements
of Rule 903 or Rule 904 of Regulation S under the Securities Act; or

 

o            (4)           pursuant
to an exemption from registration under the Securities Act provided by Rule 144
thereunder (if available), or

 

o            (5)           to
an institutional accredited investor in a transaction exempt from the registration
requirements of the Securities Act, or

 

o            (6)           pursuant
to an effective registration statement under the Securities Act.

 

Unless one of the boxes is checked, the Trustee will
refuse to register any of the Notes evidenced by this certificate in the name
of any person other than the registered holder thereof; provided,
however, that if box (4) or (5) is checked, the Trustee
may require, prior to registering any such transfer of the Notes, such legal
opinions, certifications and other information as the Company and the Trustee
has reasonably requested to confirm that such transfer is 

 

A-11

 

being made pursuant to an
exemption from, or in a transaction not subject to, the registration requirements
of the Securities Act.

 

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  SIGNATURE OR SIGNATURE GUARANTEE:

  
	
   

  	
   

  	
   

  	
  NOTICE: Signature must be guaranteed by a participant
  in a recognized signature guaranty medallion program or other signature
  guarantor acceptable to the Trustee.

  

 

A-12

 

TO
BE COMPLETED BY PURCHASER IF BOX (2) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it is
purchasing the Notes for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities
Act, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not
to request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim this exemption
from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  NOTICE:
  To be executed by an executive officer

  	
   

  

 

A-13

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL NOTE

 

The following increases or decreases in this Global
Note have been made:

 

	
  Principal amount

  of this Global Note

  as of [             ]

  	
   

  	
  Date Exchange

  Made

  	
   

  	
  Change in

  Principal Amount

  of this Global Note

  due to Exchange

  	
   

  	
  Principal Amount

  of this Global Note

  Following such

  Exchange

  	
   

  	
  Notation made by

  or on behalf of the

  Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-14

 

Exhibit A-1

 

Form of Certificate to be Delivered

in Connection with Transfers of Interests in the

Temporary Regulation S Global Notes

 

[                ],
[     ]

 

U.S. Bank National Association

950 17th Street, Suite 1200

Denver,
Colorado 80202

Attention:  Corporate Trust Department

 

Re:          Qwest
Corporation (the “Issuer”)

8 3/8% Notes due 2016 (the “Notes”)

 

Dear
Sirs:

 

This letter relates to U.S.
$[                            ]
aggregate principal amount of Notes represented by a certificate (the “Legended Certificate”) which bears a legend outlining
restrictions upon transfer of such Legended Certificate.  Pursuant to the Sixth Supplemental Indenture
(the “Supplemental Indenture”) dated as of April 13,
2009 relating to the Notes, we hereby certify that we are (or we will hold such
securities on behalf of) a person outside the United States to whom the Notes
could be transferred in accordance with Rule 904 of Regulation S
promulgated under the U.S. Securities Act of 1933, as amended.

 

You, as Trustee, the Company, counsel for the
Company and others are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.  Capitalized
terms used but not independently defined in this letter have the meanings set
forth in Regulation S.

 

	
   

  	
  Very
  truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name
  of Holder]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  
				

 

A-1-1

 

Exhibit A-2

 

Form of Certificate to be Delivered

in Connection with Transfers

Pursuant to Regulation S

 

[                ],
[     ]

 

U.S. Bank National Association

950 17th Street, Suite 1200

Denver,
Colorado 80202

Attention:  Corporate Trust Department

 

Re:          Qwest
Corporation (the “Issuer”)

8 3/8% Notes due 2016 (the “Notes”)

 

Ladies
and Gentlemen:

 

In connection with our proposed sale of
$[                 ]
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the U.S.
Securities Act of 1933, as amended (the “Securities Act”),
and, accordingly, we represent that:

 

(1)           the offer of the Notes was not made to a person in the
United States;

 

(2)           either (a) at the time the buy offer was originated,
the transferee was outside the United States or we and any person acting on our
behalf reasonably believed that the transferee was outside the United States,
or (b) the transaction was executed in, on or through the facilities of a
designated offshore securities market and neither we nor any person acting on
our behalf knows that the transaction has been prearranged with a buyer in the
United States;

 

(3)           no directed selling efforts have been made in the United
States in contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable;

 

(4)           the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act; and

 

(5)           we have advised the transferee of the transfer
restrictions applicable to the Notes.

 

A-2-1

 

You, as Trustee, the Issuer, counsel for the Issuer
and others are entitled to rely upon this letter and are irrevocably authorized
to produce this letter or a copy hereof to any interested party in any
administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.  Terms used in
this certificate have the meanings set forth in Regulation S.

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
				

 

A-2-2Exhibit 10.1

 

 

EXECUTION VERSION

 

 

REGISTRATION RIGHTS AGREEMENT

 

 

Dated April 13, 2009

 

 

among

 

 

QWEST CORPORATION,

 

as Issuer,

 

 

and

 

 

J.P. Morgan Securities Inc.,

As Representative of the
Initial Purchasers

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is dated as of April 13,
2009, among QWEST CORPORATION, a Colorado corporation (the “Issuer” or
the “Company”), on the one hand, and the several Initial Purchasers
named in Schedule A to the Purchase Agreement as defined below (each, an “Initial
Purchaser” and collectively, the “Initial Purchasers”), on the other
hand, who have each agreed to purchase, severally and not jointly, pursuant to
the Purchase Agreement a specified amount of newly issued 83/8% Notes due 2016
(the “Securities”).

 

This Agreement is made pursuant to the Purchase
Agreement, dated as of April 7, 2009 (the “Purchase Agreement”), by
and among the Issuer and the Initial Purchasers (i) for the benefit of the
Issuer and the Initial Purchasers and (ii) for the benefit of the Holders
(including the Initial Purchasers).  In
order to induce the Initial Purchasers to purchase the Securities, the Issuer
has agreed to provide the registration rights set forth in this Agreement.  The execution and delivery of this Agreement
is a condition to the obligations of the Initial Purchasers set forth in Section 5
of the Purchase Agreement.  Capitalized
terms used herein and not otherwise defined shall have the meaning assigned to
them in the Purchase Agreement.

 

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

 

1.                                      Definitions.

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

“Indenture” shall mean the Indenture relating
to the Securities dated as of October 15, 1999 between the Company
(formerly known as U S WEST Communications, Inc.), as issuer, and The
Bank of New York Trust Company, N.A. (as successor in interest to Bank One
Trust Company, N.A.), as supplemented by a first supplemental indenture, dated
as of August 19, 2004, between QC and U.S. Bank National Association, as
Trustee, a second supplemental indenture, dated as of November 23, 2004
between QC and the Trustee, a third supplemental indenture, dated as of June 17,
2005, between QC and the Trustee, a fourth supplemental indenture dated as of August 8,
2006, between QC and the Trustee, a fifth supplemental indenture dated as of May 17,
2007, between QC and the Trustee, and a sixth supplemental indenture to be
entered into between QC and the Trustee on the Closing Date.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

“Registrable Securities” shall mean the
Securities; provided, however, that the Securities shall cease to
be Registrable Securities (i) when, in the case of a Holder of such
Securities who was entitled to participate in the Exchange Offer, an Exchange
Offer Registration Statement with respect to such Securities shall have been
declared effective under the 1933 Act and either (a) such Securities shall
have been exchanged pursuant to the Exchange Offer for Exchange Securities or (b) such
Securities were not tendered by the Holder thereof in the Exchange Offer, (ii) when
a Shelf Registration Statement with respect to such Securities shall have been
declared effective under the 1933 Act or shall have become automatically
effective in accordance with the rules and regulations of the SEC and such
Securities shall have been disposed of pursuant to such Shelf Registration
Statement, (iii) when such Securities have been sold to the public
pursuant to Rule 144 (or any similar provision then in force, but not Rule 144A)
under the 1933 Act, (iv) when such Securities shall have ceased to be
outstanding or (v) on the date that is two years after the date of this
Agreement.

 

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

 

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

 

4

 

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

 

“SEC” shall mean the Securities and Exchange
Commission.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2.                                      Registration
Under the 1933 Act.

 

(a)                                  To the extent not prohibited by any applicable law or applicable
interpretation of the Staff of the SEC, the Issuer shall file an Exchange Offer
Registration Statement covering the offer by the Issuer to the Holders to
exchange all of the Registrable Securities for Exchange Securities in a like
aggregate principal amount and to use its commercially reasonable efforts to
cause the Exchange Offer Registration Statement to be declared effective by 315
days after the date of this Agreement (the “Effectiveness Target Date”)
and to have such Registration Statement remain effective until the closing of
the Exchange Offer.  The

 

5

 

Issuer
shall commence the Exchange Offer as promptly as practicable after the Exchange
Offer Registration Statement has been declared effective by the SEC and use its
commercially reasonable efforts to have the Exchange Offer consummated not
later than 45 days after the earlier of the date on which the Exchange Offer
Registration Statement is declared effective and the Effectiveness Target Date
(such 45-day period being the “Exchange Period”).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(B)                                deliver, or cause to be
delivered, to the Trustee for cancellation all Registrable Securities or
portions thereof so accepted for exchange by the Issuer and issue,

 

6

 

and cause the Trustee to promptly authenticate and
mail to each Holder, an Exchange Security equal in principal amount to the
principal amount of the Registrable Securities surrendered by such Holder; provided,
however, that, in the case of any Registrable Securities held in global
form by a depositary, authentication and delivery to such depositary of one or
more Exchange Securities in global form in an equivalent principal amount
thereto for the account of such Holders in accordance with the Indenture shall
satisfy such authentication and delivery requirement.

 

Each Holder (including, without limitation, each
Participating Broker-Dealer (as defined herein)) who participates in the
Exchange Offer will be required to represent to the Issuer, in writing (which
may be contained in the applicable letter of transmittal) that: (1) any
Exchange Securities acquired in exchange for Registrable Securities tendered
are being acquired in the ordinary course of business of the Person receiving
such Exchange Securities, whether or not such recipient is a Holder of
Registrable Securities, (2) neither such Holder nor, to the actual
knowledge of such Holder, any other Person receiving Exchange Securities from
such Holder has an arrangement or understanding with any Person to participate
in the distribution of the Exchange Securities in violation of the provisions
of the 1933 Act, (3) the Holder is not an Affiliate of the Issuer or, if
it is an Affiliate, it will comply with the registration and prospectus
delivery requirements of the 1933 Act to the extent applicable, (4) if
such Holder is not a Participating Broker-Dealer, it has not engaged in, and
does not intend to engage in, the distribution of Exchange Securities, (5) if
such Holder is a Participating Broker-Dealer, such Holder acquired the
Registrable Securities as a result of market-making activities or other trading
activities, it will deliver a prospectus in connection with any resale of the
Exchange Securities and it will comply with the applicable provisions of the
1933 Act with respect to resale of any Exchange Securities and (6) such
Holder has full power and authority to transfer the Registrable Securities in
exchange for the Exchange Securities.

 

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

 

(b)                                 In the event that (i) the Issuer determines that the Exchange
Offer Registration provided for in Section 2(a) above is not
available or may not be consummated as soon as practicable after the Exchange
Date because it would violate applicable law or the

 

7

 

applicable
interpretations of the Staff of the SEC, (ii) the Exchange Offer
Registration Statement is not declared effective by the Effectiveness Target
Date, (iii) any Holder of Registrable Securities notifies the Issuer after
the commencement of the Exchange Offer that due to a change in applicable law
or SEC policy it is not entitled to participate in the Exchange Offer, or (iv) if
any Holder that participates in the Exchange Offer (and tenders its Registrable
Securities prior to the expiration thereof), does not receive Exchange
Securities on the date of the exchange that may be sold without restriction
under state and federal securities laws (other than due solely to the status of
such Holder as an Affiliate of the Issuer or as a Participating Broker-Dealer),
the Issuer shall cause to be filed as soon as practicable a Shelf Registration
Statement providing for the sale by the Holders of all of the Registrable
Securities and shall use its commercially reasonable efforts to have such Shelf
Registration Statement declared effective by the SEC or become automatically
effective in accordance with the rules and regulations of the SEC.  In the event the Issuer is required to file a
Shelf Registration Statement solely as a result of the matters referred to in
clause (iii) of the preceding sentence, the Issuer shall file and use its
commercially reasonable efforts to have declared effective by the SEC or become
automatically effective in accordance with the rules and regulations of
the SEC 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
such other Holders after completion of the Exchange Offer.  The Issuer agrees, except as set forth
herein, to use its commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective until the date that is two years
after the Closing Date with respect to the Registrable Securities or such
shorter period that will terminate when all of the Registrable Securities
covered by the Shelf Registration Statement have been sold pursuant to the
Shelf Registration Statement.  The Issuer
further agrees to supplement or amend the Shelf Registration Statement if
required by the rules, regulations or instructions applicable to the
registration form used by the Issuer for such Shelf Registration Statement or
by the 1933 Act or by any other rules and regulations thereunder for shelf
registration or if reasonably requested by a Holder with respect to information
relating to such Holder, and to use its commercially reasonable efforts to
cause any such amendment to become effective and such Shelf Registration
Statement to become usable as soon as thereafter practicable.  The Issuer agrees to furnish to the Holders
of Registrable Securities, upon request, copies of any such supplement or
amendment promptly after its being used or filed with the SEC.  Notwithstanding the foregoing, the Issuer
shall not be required to file more than one post-effective amendment to the
Shelf Registration Statement in any fiscal quarter, such timing to be
determined in the reasonable discretion of the Issuer, to add one or more
Holders to the “Selling Securityholders” table of the Shelf Registration
Statement or to update any information in such table.  Notwithstanding anything to the contrary
contained herein, if any exchange offer is consummated during or after the
Exchange Period, any obligations of the Issuer arising as a result of clauses (ii) and
(iii) above shall terminate and such exchange offer shall be deemed an
Exchange Offer pursuant to Section 2(a).

 

8

 

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

 

(d)                                 An Exchange Offer Registration Statement pursuant to Section 2(a) hereof
or a Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC or becomes automatically effective in accordance with the rules and
regulations of the SEC; provided, however, that, if, after it has
been declared effective or becomes automatically effective, the offering of
Registrable Securities pursuant to a Shelf Registration Statement is interfered
with by any stop order, injunction or other order or requirement of the SEC or
any other governmental agency or court, such Registration Statement will be
deemed not to be effective during the period of such interference until the
offering of Registrable Securities pursuant to such Registration Statement may
legally resume.  As provided for in the
Indenture, the annual interest rate on the Securities will be increased (the “Additional
Interest”) under the following condition:

 

subject to Sections 2(f) and
2(g) if (A) the Issuer has not exchanged Exchange Securities
for all Securities validly tendered in accordance with the terms of the
Exchange Offer on or prior to the end of the Exchange Period (and the Shelf
Registration Statement has not been declared effective or become automatically
effective), (B) the Exchange Offer Registration Statement or, if
applicable, the Shelf Registration Statement has not been declared effective by
the SEC or becomes automatically effective in accordance with the rules and
regulations of the SEC on or prior to the Effectiveness Target Date or (C) if
applicable, the Shelf Registration Statement is filed and declared effective or
becomes automatically effective but shall thereafter cease to be effective or
usable (1) as a result of an order suspending the effectiveness of the
Shelf Registration Statement or otherwise, or (2) if related to the events
or circumstances set forth in Section 2(g) below, for more
than 60 days (whether or not consecutive) in any twelve month period (each such
event referred to in clauses (A) through (C), a “Registration Default”),
then Additional Interest shall accrue on the principal amount of the
Registrable Securities at a rate of 0.25% per annum commencing (x) at the
end of the Exchange Period, in the case of (A) above, (y) on the
Effectiveness Target Date in the case of (B) above, or (z) on the day
such Shelf Registration Statement ceases to be effective in the case of (C)(1) above
or the 61st day the Prospectus ceases to be usable for resales in the case of
(C)(2) above, and such Additional Interest rate shall continue to, but
excluding, the earlier of (1) the date on which all Registration Defaults
have been

 

9

 

cured or (2) the date that is two years after
the Closing Date (it being understood and agreed that, notwithstanding any
provision to the contrary, so long as any Securities not registered under an
Exchange Offer Registration Statement by the Effectiveness Target Date or
tendered on or prior to the end of the Exchange Period, (y) have been
provided the opportunity to be tendered in an Exchange Offer that closes during
or after the end of the Exchange Period or (z) are then covered by an
effective Shelf Registration Statement, no Additional Interest shall accrue on
such Securities);

 

provided, however,
that upon the exchange of Exchange Securities for all Securities tendered (in
the case of clause (A) above), upon the earlier of (1) effectiveness
of the Shelf Registration Statement (in the case of clause (B) above)
and (2) the exchange of Exchange Securities for all securities tendered in
an Exchange Offer (in the case of clause (B) above) or upon the
effectiveness of the Shelf Registration Statement which had ceased to remain
effective (in the case of clause (C) above), Additional Interest on the
Securities as a result of such clause (or the relevant subclause thereof), as
the case may be, shall cease to accrue; provided, further, however,
that in the case of clauses (B) and (C) above, it is expressly
understood that Additional Interest should be payable only with respect to the
Registrable Securities so requested to be registered pursuant to Section 2(b)(iii) hereof;
and provided, further, however, that if a Registration
Default under clause (C) above occurs because of the filing of a
post-effective amendment to such Registration Statement to incorporate annual
audited financial information with respect to the Issuer or to add Holders to
the “Selling Securityholders” table (or to update any information in such
table) where such post-effective amendment is not yet effective and needs to be
declared effective to permit Holders to use the related Prospectus, it is
expressly understood that Additional Interest shall be payable only from and
after the date such Registration Default continues for at least 30 days.

 

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

 

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

 

10

 

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

 

(g)           The Issuer may delay
the filing or the effectiveness of an Exchange Offer Registration Statement or
a Shelf Registration Statement (including any post-effective amendment thereto)
for a period of up to 30 days during any 90 day period if (i) there occur
material events or developments with respect to the Issuer that would need to
be described in such Registration Statement or the related Prospectus, and the
effectiveness of such Registration Statement is reasonably required to be suspended
while such Registration Statement and related Prospectus are amended or
supplemented to reflect such events or developments, (ii) there occur
material events or developments with respect to the Issuer or any of its
Affiliates, the disclosure of which the Issuer determines in good faith would
have a material adverse effect on the business, operations or prospects of the
Issuer, or (iii) the Issuer does not wish to disclose publicly a pending
material business transaction that has not yet been publicly disclosed; provided,
however, that any delay period with respect to Registration Defaults
arising under this Section 2(g) will not alter the obligations
of the Issuer to pay Additional Interest with respect to a Registration Default
subject to the limitations and exceptions set forth in Section 2(d) above.

 

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

 

3.                                      Registration Procedures.

 

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

 

(a)           prepare and file with the SEC a Registration Statement on
the appropriate form under the 1933 Act, which form (x) shall be selected
by the Issuer and

 

11

 

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

 

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

 

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

 

(d)           use its commercially reasonable
efforts to register or qualify the Registrable Securities under all applicable
state securities or “blue sky” laws of such jurisdictions as any Holder of
Registrable Securities covered by a Registration Statement shall reasonably
request in writing by the time the applicable Registration Statement is
declared effective by the SEC or becomes automatically effective in accordance
with the rules and regulations of the SEC, to cooperate with such Holders
in connection with any filings required to be made with the New York Stock
Exchange and FINRA and do any and all other acts and things which may be
reasonably necessary or advisable to enable such Holder to consummate the
disposition in each such jurisdiction of such Registrable Securities owned by
such Holder; provided, however, that the Issuer shall not be
required to (i) qualify as a foreign corporation or as a dealer in
securities

 

12

 

in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(d),
(ii) file any general consent to service of process or (iii) subject
itself to taxation in any such jurisdiction if it is not so subject;

 

(e)           in the case of a Shelf Registration,
notify each Holder of Registrable Securities and counsel for the Holders
promptly and, if requested by any such Holder or counsel, confirm such advice
in writing (i) when a Registration Statement has become effective and when
any post-effective amendment thereto has been filed and becomes effective, (ii) of
any request by the SEC or any state securities authority for amendments and
supplements to a Registration Statement and Prospectus or for additional
information after the Registration Statement has become effective, (iii) of
the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Registration Statement or the initiation of
any proceedings for that purpose, (iv) if, between the effective date of a
Registration Statement and the closing of any sale of Registrable Securities
covered thereby, the representations and warranties of the Issuer contained in
any underwriting agreement, securities sales agreement or other similar
agreement, if any, relating to the offering cease to be true and correct in all
material respects or if the Issuer receives any notification with respect to
the suspension of the qualification of the Registrable Securities for sale in
any jurisdiction or the initiation of any proceeding for such purpose, (v) of
the happening of any event during the period a Shelf Registration Statement is
effective which makes any statement made in such Registration Statement or the
related Prospectus untrue in any material respect or which requires the making
of any changes in such Registration Statement or Prospectus in order to make
the statements therein not misleading and (vi) of any determination by the
Issuer that a post-effective amendment to a Registration Statement  (other than an amendment that does nothing
more substantive than add one or more Holders to the “Selling Securityholders”
table of such Registration Statement or to update any information set forth in
such table) would be appropriate except, in the case of clauses (iv), (v) and
(vi), with respect to any event, development or transaction permitted to be
kept confidential under Section 2(g) hereof, the Issuer shall
not be required to describe such event, development or transaction in the
written notice provided;

 

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

 

(g)           in the case of a Shelf Registration,
furnish to each Holder of Registrable Securities, without charge, at least one
conformed copy of each Registration Statement 

 

13

 

and any post-effective
amendment thereto (without documents incorporated therein by reference or
exhibits thereto, unless requested);

 

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

 

(i)            in the case of a Shelf Registration,
upon the occurrence of any event contemplated by Section 3(e)(v) hereof,
as promptly as practicable prepare and file with the SEC a supplement or
post-effective amendment to a Registration Statement or the related Prospectus
or any document incorporated therein by reference or file any other required
document so that, as thereafter delivered to the purchasers of the Registrable
Securities, such Prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading; the
Issuer agrees to notify the Holders to suspend use of the Prospectus as
promptly as practicable after the occurrence of such an event, and the Holders
hereby agree to suspend use of the Prospectus until the Issuer has amended or
supplemented the Prospectus to correct such misstatement or omission and
expressly agree to maintain the information contained in such notice
confidential (except that such information may be disclosed to its counsel)
until it has been publicly disclosed by the Issuer; notwithstanding the
foregoing, the Issuer shall not be required to amend or supplement a
Registration Statement, any related Prospectus or any document incorporated or
deemed to be incorporated therein by reference if (i) an event occurs and
is continuing as a result of which the Shelf Registration, any related
Prospectus or any document incorporated or deemed to be incorporated therein by
reference, would, in the Issuer’s good faith judgment, contain an untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein not misleading (with respect to such a
Prospectus only, in the light of the circumstances under which they were made),
and (ii) (a) the Issuer determines in its good faith judgment that
the disclosure of such event at such time would have a material adverse effect
on the business, operations or prospects of the Issuer, or (b) the
disclosure otherwise relates to a pending material business transaction that
has not yet been publicly disclosed;

 

(j)            in the case of a Shelf Registration
Statement, a reasonable time prior to the filing of any Registration Statement,
any Prospectus, any amendment to a Registration Statement or amendment or
supplement to a Prospectus, provide copies of such

 

14

 

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

 

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

 

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

 

(m)          in the case of an Underwritten
Offering pursuant to a Shelf Registration, make available for inspection upon
written request by a representative of the Holders of the Registrable
Securities, any Underwriter participating in any disposition pursuant to such
Shelf Registration Statement, and attorneys and accountants designated by the
Holders, at reasonable times and in a reasonable manner, all pertinent
financial and other records, pertinent documents and properties of the Issuer
as shall be reasonably necessary to enable them to exercise any applicable due
diligence responsibilities, and cause the respective officers, directors and
employees of the Issuer to supply all information reasonably requested by any
such representative, Underwriter, attorney or accountant in connection with
their due diligence responsibilities under a Shelf Registration Statement; provided,
however, that records and information that the Issuer determines in good
faith to be confidential and so notifies such representative, Underwriter,
attorney or accountant are confidential shall not be disclosed to any such
representative, Underwriter, attorney or accountant unless (i) the
disclosure of such

 

15

 

information is necessary to
avoid or correct a material misstatement or material omission in an effective
Registration Statement or Prospectus, (ii) the release of such information
is ordered pursuant to a subpoena or other order from a court of competent
jurisdiction or (iii) the information has been made generally available to
the public other than by any of such persons or an Affiliate of any such
persons, provided, however, that if any such information has been
disclosed to any such representative, Underwriter, attorney or accountant, prior
notice shall be provided as soon as practicable to the Issuer of the potential
disclosure of any information by such person under the circumstances described
in clause (i) or (ii) of this sentence in order to permit the Issuer
to obtain a protective order; provided  further, however,
that if such records and information are determined to be confidential, the
Issuer shall (a) provide  summaries of such information to counsel
for such Underwriter or (b) provide other means as reasonably requested by
the Underwriter to enable such Underwriter to satisfy its due diligence
requirements without compromising the confidentiality of such information;

 

(n)           if reasonably requested by any Holder
of Registrable Securities covered by a Registration Statement, (i) subject
to Section 2(b) of this Agreement, promptly incorporate in a
Prospectus supplement or post-effective amendment such information with respect
to such Holder as such Holder reasonably requests to be included therein and (ii) subject
to Section 2(b) of this Agreement, make all required filings
of such Prospectus supplement or such post-effective amendment as soon as the
Issuer has received notification of the matters to be incorporated in such
filing; and

 

(o)           in the case of an Underwritten
Offering pursuant to a Shelf Registration, enter into such customary agreements
and take all such other actions in connection therewith (including those
requested by the Holders of a majority of the Registrable Securities being
sold) in order to expedite or facilitate the disposition of such Registrable
Securities and in connection therewith, (i) to the extent possible, make
such representations and warranties to any Underwriters of such Registrable
Securities with respect to the business of the Issuer and its subsidiaries, the
Registration Statement, Prospectus and documents incorporated by reference or
deemed incorporated by reference, if any, in each case, in form, substance and
scope as are customarily made by issuers to underwriters in underwritten
offerings and confirm the same in writing if and when requested, (ii) obtain
opinions of counsel to the Issuer (which counsel and opinions, in form, scope
and substance, shall be reasonably satisfactory to such Underwriters and their
respective counsel) addressed to each Underwriter of Registrable Securities,
covering the matters customarily covered in opinions requested in underwritten
offerings, (iii) obtain “cold comfort” letters from the independent
certified public accountants of the Issuer (and, if necessary, any other certified
public accountant of any subsidiary of the Issuer, or of any business acquired
by the Issuer for which financial statements and financial data are or are
required to be included in the Registration

 

16

 

Statement) addressed to each
Underwriter of Registrable Securities, such letters to be in customary form and
covering matters of the type customarily covered in “cold comfort” letters in
connection with underwritten offerings, (iv) if an underwriting agreement
is entered into, include in such underwriting agreement indemnification
provisions and procedures no less favorable to the selling Holders and
underwriters, if any, than those set forth in Section 5 hereof (or
such other provisions and procedures acceptable to Holders of a majority in
aggregate principal amount of Registrable Securities covered by such
Registration Statement and the underwriters (if any), and (v) deliver such
documents and certificates as may be reasonably requested by the Underwriters,
and which are customarily delivered in underwritten offerings, to evidence the
continued validity of the representations and warranties of the Issuer made
pursuant to clause (i) above and to evidence compliance with any customary
conditions contained in an underwriting agreement.

 

In the case of a Shelf Registration
Statement, the Issuer may require each Holder of Registrable Securities to
furnish to the Issuer such information regarding the Holder and the proposed
distribution by such Holder of such Registrable Securities as the Issuer may
from time to time reasonably request in writing.  The Issuer may exclude from such registration
the Registrable Securities of any seller so long as such seller fails to furnish
such information within a reasonable time after receiving such request.  Each seller as to which any Shelf
Registration is being effected agrees to furnish promptly to the Issuer all
information required to be disclosed in order to make the information previously
furnished to the Issuer by such seller not materially misleading.

 

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

 

17

 

date when the Holders shall have received copies of the supplemented or
amended Prospectus necessary to resume such dispositions.

 

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

 

4.                                      Participation of Broker-Dealers
in Exchange Offer.

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

5.                                      Indemnification and
Contribution.

 

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

 

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

 

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

 

19

 

 

 

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

 

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

 

20

 

indemnity
could have been sought hereunder by such Participant, unless such settlement (A)
includes an unconditional release of such Participant, from all liability in
any way related to or arising out of such litigation or proceeding and (B) does
not impose any actual or potential liability or any other obligation upon any
such Participant and does not contain any factual or legal admission of fault,
culpability or a failure to act by or with respect to any such Participant.

 

If a claim is made against any indemnified
party as to which such indemnified party may seek indemnity under this Section 5,
such indemnified person shall notify the indemnifying party promptly after any
written assertion of such claim threatening to institute an action or
proceeding with respect thereto and shall notify the indemnifying party
promptly of any action commenced against such indemnified party within a
reasonable time after such indemnified party shall have been served with a
summons or other first legal process giving information as to the nature and
basis of the claim.  Failure to so notify
the indemnifying party shall not, however, relieve the indemnifying party from
any liability which it may have on account of the indemnity under this Section 5,
except to the extent such failure results in the forfeiture by the indemnifying
party of material rights and defenses. The indemnifying party shall have the
right to assume the defense of any such litigation or proceeding, including the
engagement of counsel reasonably satisfactory to the indemnified party.  In any such litigation or proceeding the
defense of which the indemnifying party shall have so assumed, any indemnified
party shall have the right to participate in such litigation or proceeding and
to retain its own counsel, but the fees and expenses of such counsel shall be
at the expense of such indemnified party unless (i) the indemnifying party
shall have failed promptly to assume the defense thereof and employ counsel as
provided above, or (ii) counsel to the indemnified party reasonably determines
that representation of such indemnified party by the indemnifying party’s
counsel would present the indemnifying party’s counsel with a conflict of
interest.  It is understood that the
indemnifying party shall not, in connection with any litigation or proceeding
or related litigation or proceeding in the same jurisdiction, be liable under
this Agreement for the fees and expenses of more than one separate firm (in
addition to any local counsel) for all such indemnified parties and that all
such fees and expenses shall be reimbursed as they are incurred.  Such separate firm shall be designated by the
indemnified party.

 

To the extent the indemnity provided for in
the foregoing paragraphs of this Section 5 is for any reason held unenforceable
although otherwise applicable in accordance with its terms with respect to an
indemnified party in respect of any losses, claims, damages, liabilities or
expenses referred to therein, then the indemnifying party agrees to contribute
to the amount paid or payable by such indemnified person as a result of such
losses, claims, damages, liabilities or expenses (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying
party, on the one hand, and by such indemnified party, on the other, from the
offering of the Securities or (ii) if the allocation provided by the foregoing
clause (i) is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in the foregoing clause
(i), but also the relative fault 

 

21

 

of the
indemnifying party, on the one hand, and of such indemnified party, on the
other, in connection with the statements, actions or omissions which resulted
in such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The
relative benefits received by the Issuer, on the one hand, and by such
Participant, on the other, shall be deemed in the same proportion as the total
proceeds from the offering (before deducting expenses) of the Securities
received by the Issuer bear to the total net profit received by such
Participant in connection with the sale of the Securities. Relative fault shall
be determined by reference to, among other things, whether any alleged untrue
statement or omission or any other alleged conduct relates to information
provided by the Issuer or other conduct by the Issuer (or its employees or
other agents), on the one hand, or by such Participants, on the other hand.

 

The parties agree that it would not be
equitable if the amount of such contribution were determined by pro rata or per
capita allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the first sentence of the
previous paragraph.  Notwithstanding any
other provision of the previous paragraph, no Participant shall be obligated to
make contributions hereunder that in the aggregate exceed the total net profit
received by such Participant in connection with the sale of the Securities,
less the aggregate amount of any damages that such Participant has otherwise
been required to pay by reason of the untrue or alleged untrue statements or
the omissions or alleged omissions to state a material fact, and no person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. 
For purposes of this paragraph (d), each person, if any, who controls a
Participant within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as the Participants,
and each director of the Issuer, each officer of the Issuer and each person, if
any, who controls the Issuer within the meaning of Section 15 of the 1933 Act
or Section 20 of the 1934 Act, shall have the same rights to contribution as
the Issuer.

 

6.                                      Miscellaneous.

 

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

 

(b)           Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Issuer has obtained the written consent of Holders of at least
a majority in aggregate principal 

 

22

 

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

 

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

 

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.

 

23

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)            Governing Law. 
The internal laws of the State of New York shall govern the
enforceability and validity of this Agreement, the construction of its terms
and the interpretation 

 

24

 

of the rights and duties of the parties
hereto without giving effect to conflicts of laws, rules or principles.

 

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

 

25

 

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

 

	
   

  	
  QWEST CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Oscar A. Martinez

  
	
   

  	
   

  	
  Name:

  	
  Oscar A. Martinez

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Assistant Treasurer

  

 

26

 

	
   

  	
  J.P. MORGAN SECURITIES INC.,

  
	
   

  	
  As Representative of the Initial Purchasers

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  J.P. MORGAN SECURITIES
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Finger

  
	
   

  	
   

  	
  Name:

  	
  Paul Finger

  
	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

27

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