Document:

Exhibit 10.4

 

 

 

FORM OF

 

AMENDED AND RESTATED

 

STOCKHOLDERS’ AGREEMENT

 

by and among

 

SK TELECOM CO., LTD.;

 

EARTHLINK, INC.;

 

and

 

HELIO, INC.

 

 

 

 

Dated as of                
      , 2007

 

 

 

 

THIS
AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT (this “Stockholders’ Agreement”) is dated as of                     
    , 2007, by and among SK Telecom Co., Ltd., a
corporation with limited liability organized under the laws of The Republic of
Korea (“SKT”), EarthLink, Inc., a Delaware
corporation (“EarthLink”) and HELIO, Inc., a
Delaware corporation (the “Management Company”).

 

WHEREAS,
the Management Company has authorized capital stock of two hundred fifty
million four (250,000,004) shares, consisting of two hundred thirty million two
(230,000,002) shares of Class A Common Stock, $.01 par value per share (the “Class A Common Stock”), two (2) shares of Class B Common
Stock, $.01 par value per share (the “Class B Common Stock”,
and together with the Class A Common Stock, the “Common
Stock”) and twenty million (20,000,000) shares of Preferred Stock,
$.01 par value per share (the “Preferred Stock”);

 

WHEREAS, SKT
Holdings, EarthLink and the Management Company are the sole members of HELIO
LLC, a Delaware limited liability company (the “Operating Company”);

 

WHEREAS,
the Operating Company is a joint venture established by EarthLink and SKT for
the purpose of developing and marketing branded wireless telecommunications
services, including, but not limited to, handsets, voice services, data
services (including CDMA laptop cards and related software), stand-alone and
other wireless services within the United States;

 

WHEREAS,
the parties entered into that certain Stockholders’ Agreement dated March 24,
2005 (the “Original Agreement”); and

 

WHEREAS,
the parties wish to amend and restate the Original Agreement pursuant to the
terms hereof.

 

NOW,
THEREFORE, for and in consideration of the premises
and mutual promises set forth herein, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

 

ARTICLE
1

DEFINITIONS

 

1.1.         Certain Definitions.
Capitalized terms that are used but not otherwise defined herein shall have the
meanings given to them in the Operating Agreement. For the purposes of this
Stockholders’ Agreement, the following terms shall have the following meanings:

 

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

 

1

 

“Ancillary
Agreements” shall mean, collectively, the Contribution
and Formation Agreement, the SKT Contribution Agreement, the Operating
Agreement and the Registration Rights Agreement.

 

“Bankruptcy
Matter” shall mean a decision with respect to the
commencement of a voluntary case pursuant to Title 11 of the United States
Bankruptcy Code, the filing of a petition to take advantage of any other
federal or state laws relating to bankruptcy, insolvency, reorganization or
composition for adjustment of debts or the liquidation of the Operating Company
or the Management Company.

 

“Beneficial
Owner” shall mean a person deemed to have “Beneficial
Ownership” of any securities pursuant to Rule 13d-3 and 13d-5 under the
Securities Exchange Act of 1934, as amended, as such rules are in effect on the
date of this Stockholders’ Agreement, as well as any securities as to which
such Person has the right to become Beneficial Owner (whether such right is
exercisable immediately or only after the passage of time or the occurrence of
conditions) pursuant to any agreement, arrangement or understanding (other than
customary agreements with and between underwriters and selling group members
with respect to a bona  fide public offering of securities), or
upon the exercise of conversion rights, exchange rights, rights, warrants or
options, or otherwise; provided, that no Stockholder shall be
deemed the “Beneficial Owner” or to have “Beneficial Ownership” of or to “Beneficially
Own,” any Membership Units or Shares of the other Stockholder solely by virtue
of the rights set forth in this Stockholders’ Agreement.

 

“Board of
Directors” shall mean the Board of Directors of the
Management Company.

 

“Business
Plan” shall have the meaning set forth in Article 1 of
the Operating Agreement.

 

“Certificate
of Incorporation” shall mean the Certificate of
Incorporation of the Management Company filed with the Delaware Secretary of
State, as amended or restated from time to time.

 

“Change of
Control” shall mean the transfer of Control, or sale
of all or substantially all of the assets (in one or more related
transactions), of a holder of Class B Common Stock, from the Person that holds
such Control or assets, to another Person, but shall not include a transfer of
Control, or such sale of assets, to an Affiliate of such holder of Class B
Common Stock.

 

“Class A
Common Stock” shall have the meaning set forth in the
Recitals.

 

“Class A
Director” shall have the meaning set forth in the
Certificate of Incorporation.

 

2

 

“Class A
Options” shall have the meaning set forth in Article
5.5 of the Certificate of Incorporation.

 

“Class B
Common Stock” shall have the meaning set forth in the
Recitals.

 

“Class B
Director” shall have the meaning set forth in the
Certificate of Incorporation.

 

“Class B
Stockholders” shall mean EarthLink and SKT and any
successor holder of the shares of Class B Common Stock and any stockholder of
the Management Company that acquires one or more shares of Class B Common Stock
and becomes a party hereto by executing a joinder signature page as provided in
Section 12.12 hereof.

 

“Common
Stock” shall have the meaning set forth in the
Recitals.

 

“Confidentiality
Agreement” shall mean the confidentiality agreement
entered into by and among EarthLink, SKT, SKT Holdings, the Management Company
and the Operating Company on March 24, 2005.

 

“Contracts”
shall mean all agreements, contracts, leases and subleases, purchase orders, arrangements,
commitments, non-governmental licenses, notes, mortgages, indentures or other
obligations.

 

“Contribution
and Formation Agreement” shall mean the Contribution
and Formation Agreement, entered into by and among SKT, SKTI and EarthLink, as
such agreement may be amended from time to time. On March 24, 2005, SKTI
assigned its rights, liabilities and obligations under the Contribution and
Formation Agreement to SKT Holdings.

 

“Contribution
Breach” shall mean a failure by SKT to make a
scheduled cash contribution to the Operating Company in accordance with the SKT
Commitment.

 

“Control”
as used with respect to any Entity, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of management
policies of such Entity through the ownership of voting securities or by
contract.

 

“CPR” shall
have the meaning set forth in Section 11.1.2.

 

“Deadlock
Matter” shall have the meaning set forth in Section 8.2.

 

3

 

“Directors”
shall mean the directors serving on the Board of Directors of the Management
Company.

 

 “EarthLink” shall
have the meaning set forth in the introductory paragraph.

 

“Entity”
shall mean any corporation, firm, unincorporated organization, association,
partnership, limited partnership, limited liability company, limited liability
partnership, business trust, joint stock company, joint venture organization,
entity or business.

 

“First
Party” shall have the meaning set forth in Section 5.3.

 

“Governmental
Entity” shall mean any governmental or regulatory
authority, court, agency, commission, body or other similar entity.

 

“ICC” shall
have the meaning set forth in Section 11.1.3.

 

“JV
Securities” shall mean the Shares and the Membership
Units.

 

“Lock-in
Period” shall have the meaning set forth in Section 5.1.1.

 

“M&A
Transaction” shall mean a sale in a merger,
consolidation, share exchange, combination or other similar transaction, of at
least eighty percent (80%) of: (a) the outstanding JV Securities, or (b) the
assets of the Operating Company and the Management Company (measured in terms
of the fair market value of the assets of the Operating Company or the
Management Company, as applicable).

 

“Management
Company” shall have the meaning set forth in the
introductory paragraph and shall include any other successor Management Company
selected in accordance with the terms of the Operating Agreement.

 

“Material
Adverse Effect” shall have the meaning set forth in
the Contribution and Formation Agreement.

 

“MVNO Services” shall have the meaning set forth in Section 6.7.2.

 

“Membership
Units” shall have the meaning set forth in the
Operating Agreement.

 

4

 

“Operating
Agreement” shall mean that certain Limited Liability
Company Agreement, by and among EarthLink, SKT Holdings, Operating Company and
Management Company, as such agreement may be amended from time to time.

 

“Operating
Company” shall have the meaning set forth in the
Recitals.

 

“Operating
Company Products and Services” shall have the meaning
set forth in Article 1 of the Operating Agreement.

 

“Original
Agreement” shall have the meaning set forth in the
Recitals.

 

“Parent
Entity” shall mean, with respect to any Entity that is
a Subsidiary of a Person, the Person that, directly or indirectly, Beneficially
Owns at least fifty percent (50%) of the equity of such Subsidiary and is not a
Subsidiary of any Person.

 

“Percentage
Interest” shall mean a Stockholder’s percentage
interest in the Total Outstanding Shares as determined by dividing the number
of Total Outstanding Shares owned by such Stockholder or any Subsidiary or
Parent Entity of such Stockholder by the number of Total Outstanding Shares
then owned by all Stockholders (including all Subsidiaries or Parent Entities of
such Stockholders). The Percentage Interests owned by the Class B Stockholders
as of the date hereof are set forth on Addendum 1 to Schedule 9.1.1 of the
Operating Agreement.

 

“Permitted
Transfers” shall have the meaning set forth in Section 5.1.2.

 

“Person”
shall mean any natural person or Entity.

 

“Preferred
Stock” shall have the meaning set forth in the
Recitals.

 

“Provider”
shall have the meaning set forth in Section 6.5.

 

“Public
Common Stock” shall mean the Class A Common Stock that
has been registered with the Securities and Exchange Commission for sale to the
public.

 

“Public
Offering” shall mean a sale of Public Common Stock to
underwriters in a bona fide, firm commitment underwriting pursuant to a
registration statement on Form S-1, SB-2 or S-3 (or successor forms) under the
Securities Act.

 

“Recommended
Transaction” shall have the meaning set forth in Section 5.6.

 

5

 

“Registration
Rights Agreement” shall mean the Registration Rights
Agreement entered into by and among SKT, EarthLink and the Management Company
as of March 24, 2005.

 

“Restricted
Services” shall have the meaning set forth in Section 6.1.

 

“Right of
First Refusal” shall have the meaning set forth in Section 5.3.

 

“ROFR
Percentage Interest” shall mean the percentage as
determined by dividing the number of Total Outstanding Shares owned by SKT or
any Subsidiary or Parent Entity of SKT by the number of Total Outstanding
Shares then owned by all Class B Stockholders and Subsidiaries and Parent
Entities of Class B Stockholders, but excluding the shares owned by the First
Party.

 

“ROFR
Termination Date” shall have the meaning set forth in Section 5.3.

 

“Second
Party” shall have the meaning set forth in Section 5.4.

 

“Securities
Act” shall have the meaning set forth in Section 9.1.

 

“Shares”
shall mean the issued and outstanding Common Stock and Preferred Stock.

 

“SKT”
shall have the meaning set forth in the introductory paragraph.

 

“SKT
Commitment” shall have the meaning set forth in
Section 9.1.2 of the Operating Agreement.

 

“SKT
Contribution Agreement” shall mean the Contribution
Agreement dated November 7, 2007, between EarthLink, SKT Holdings and the
Operating Company.

 

“SKTI”
shall mean SK Telecom International, Inc.

 

“SKT
Holdings” shall mean SK Telecom USA Holdings, Inc.

 

“SKT Triggering Contribution” shall have the meaning set
forth in Section 9.1.2 of the Operating Agreement.

 

6

 

“Stockholders”
shall mean EarthLink and SKT and the successors of each and any stockholder of
the Management Company that acquires one or more Shares and becomes a party
hereto by executing a joinder signature page as provided in Section 12.12 hereof.

 

“Stockholders’
Agreement” shall have the meaning set forth in the Recitals.

 

“Strategic
Decision” shall have the meaning set forth in Section 8.1.

 

“Subject
Interest” shall have the meaning set forth in Section 5.3.

 

“Subject
Stockholders” shall have the meaning set forth in Section 5.6.

 

“Subsidiary”
shall mean, as to any Person, any Entity (i) of which such Person, directly or
indirectly, owns securities or other equity interests representing fifty
percent (50%) or more of the aggregate voting power or (ii) of which such
Person possesses the right to elect fifty percent (50%) or more of the
directors or Persons holding similar positions. The Operating Company shall be
deemed to be a Subsidiary of the Management Company. Neither the Operating
Company nor the Management Company shall be deemed to be a Subsidiary of any
Stockholder.

 

“Tag-along
Right” shall have the meaning set forth in Section 5.4.

 

“Tag-along
Election Notice” shall have the meaning set forth in Section 5.4.

 

“Tag-along
Transfer Notice” shall have the meaning set forth in Section 5.4.

 

“Third
Party” shall mean any Person other than EarthLink, SKT
Holdings, SKT or the Operating Company, the Management Company or any Affiliate
of the foregoing.

 

“Total
Outstanding Shares” shall mean, from time to time, the
sum of (a) the number of shares of Class A Common Stock issued and outstanding
and (b) the number of shares of Class A Common Stock obtained if all issued and
outstanding shares of Class B Common Stock, Membership Units and shares of
convertible Preferred Stock were then converted into shares of Class A Common
Stock in accordance with Articles 5.1, 5.2 and 5.4, respectively, of the
Certificate of Incorporation.

 

“Transfer”
shall mean any direct or indirect sale, transfer, assignment, pledge,
hypothecation, mortgage or other disposition or encumbrance, of any beneficial
or economic interest in any JV Securities, including those by operation or
succession of law, merger or

 

7

 

otherwise. A
Transfer of JV Securities shall be deemed to have occurred upon any transfer of
the stock of a Subsidiary holding the JV Securities that results in such Entity
no longer being a Subsidiary of a Stockholder. However, a Change of Control of
a holder of Class B Common Stock shall not be deemed to be a Transfer.

 

“Transfer
Notice” shall have the meaning set forth in Section 5.3.

 

“Triggering
Event” shall have the meaning set forth in Article 5
of the Certificate of Incorporation.

 

“VOIP”
shall mean voice over Internet protocol.

 

“VoWiFi”
shall mean voice over WiFi.

 

“Wimax
Enabled Devices” shall have the meaning set forth in Section 6.3.

 

Except as
expressly provided herein, whenever in this Stockholders’ Agreement there shall
be a reference to any Ancillary Agreement or this Stockholders’ Agreement, such
reference shall be deemed to refer to such agreement as it may be amended from
time to time.

 

ARTICLE
2

REPRESENTATIONS AND WARRANTIES

 

Each
Stockholder represents and warrants to the other Stockholder and the Management
Company that:

 

2.1.         Corporate Authority.
It has all requisite corporate or limited liability company power and authority
and has taken all corporate or limited liability company action necessary in
order to execute and deliver this Stockholders’ Agreement and to perform fully
its obligations hereunder.

 

2.2.         Encumbrances.
Such Stockholder owns that number of issued and outstanding shares of Class A
Common Stock and/or Class B Common Stock as set forth in Schedule 2.2 hereto, free and clear of all
liens and encumbrances, except for this Stockholders’ Agreement and the Operating
Agreement. There are no options, warrants or other rights, agreements,
arrangements or commitments of any character to which such Stockholder is a
party relating to the pledge, disposition or voting of any Shares and there are
no voting trusts or voting agreements with respect to such Shares.

 

2.3.         Binding Agreement.
This Stockholders’ Agreement has been duly executed and delivered and is a
valid and binding agreement of such Stockholder enforceable against it in

 

8

 

accordance
with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating
to or affecting creditor’s rights and to general equity principles.

 

2.4.         Notices, Reports and Filings.
No notices, reports or other filings are required to be made by such
Stockholder with, nor are any consents, registrations, approvals, permits or
authorizations required to be obtained by it or the Management Company from,
any Governmental Entity, in connection with the execution and delivery of this
Stockholders’ Agreement, except those that have been made or obtained or that
the failure to make or obtain are not, individually or in the aggregate,
reasonably likely to result in a Material Adverse Effect on the Operating
Company.

 

2.5.         Non-Contravention.
The execution, delivery and performance of this Stockholders’ Agreement by such
Stockholder does not, and the consummation by it of the transactions
contemplated hereby will not, constitute or result in (a) a breach or violation
of, or a default under, its organizational documents, (a) a breach of or
violation of or default under, or the acceleration of any obligations of or the
creation of a lien or encumbrance on its assets (with or without notice, lapse
of time or both) pursuant to any Contracts binding upon it or any law, statute
or regulation or governmental or non-governmental permit or license to which it
is subject or (c) any change in the rights or obligations of any party under any
of such Contracts to which it is a party, except, in the case of clause (b) or
(c) above, for any breach, violation, default, acceleration, creation or change
that individually or in the aggregate, is not reasonably likely to (x) result
in a Material Adverse Effect on the Operating Company.

 

ARTICLE
3

VOTING

 

3.1.         Voting Agreements.
Each Stockholder agrees to vote or cause the voting of, whether in person, by
proxy or written consent, all Shares, directly or indirectly, Beneficially
Owned by it so as to cause the events set forth in this Section 3.1 to occur:

 

3.1.1       Election of Class B Directors.
The election of Class B Directors as provided for in Article 6 of the
Certificate of Incorporation.

 

3.1.2       Removal of Class B Directors.
The removal of any Class B Director, upon the request of the Stockholder
entitled to elect such Class B Director.

 

3.1.3       Replacement of Class B Directors.
The appointment of a new Class B Director, to fill any vacancy in the Class B
Directors on the Board of Directors or any committee of the Board of Directors,
as determined by the Stockholder entitled to elect such Class B Director whose
departure has caused the vacancy.

 

3.1.4       Election of Independent Directors.
Following an initial Public Offering, the election of such independent Class A
Directors as are required by Article 6 of the Certificate of Incorporation.

 

9

 

3.1.5       Payment of Dividends.
To the extent that the Management Company receives distributions as a member of
the Operating Company and to the extent permitted by applicable law, the
payment of a dividend in the amount of the net distributions received from the
Operating Company to the holders of shares of Common Stock, subject to (i) any
preferential rights of holders of Preferred Stock, and (ii) any restrictions or
limitations under any credit facility or other loan document in respect of
borrowed money.

 

3.1.6       Conversion and Exchange.
All matters necessary to facilitate the conversion of a Stockholder’s Class B
Common Stock, convertible Preferred Stock and exchange of Membership Units for
shares of Class A Common Stock, each as provided for in the Certificate of
Incorporation.

 

3.1.7       Public Offering.
All matters necessary to facilitate the registration, issuance and sale of
shares of Class A Common Stock in a Public Offering, as provided for in the
Certificate of Incorporation, Operating Agreement and Registration Rights
Agreement, and to give effect to the contribution, to the Operating Company, of
the net proceeds received from such Public Offering of Class A Common Stock.

 

3.1.8       Solicitation of an M&A Transaction.
All matters necessary to facilitate the solicitation or exploration of an
M&A Transaction, including, without limitation, the engagement or retention
of accountants, investment banks, attorneys and similar professionals in
connection therewith (the fees for which shall be paid by the Operating
Company).

 

3.2.         Voting of Irrevocable Proxies.
Each of SKT and EarthLink have been granted irrevocable proxies from certain
stockholders of the Management Company to vote 50% of such stockholders’ Shares
(collectively, the “Proxy Shares”).
Notwithstanding the terms of the irrevocable proxies, SKT and EarthLink agree
to vote or cause the voting of, whether in person, by proxy or written consent,
the Proxy Shares in accordance with the Percentage Ownership of each Class B
Stockholder that is not a Triggering Party (as defined in the Certificate of
Incorporation).

 

ARTICLE
4

ADDITIONAL AGREEMENTS

 

4.1.         Standstill.
The Stockholders and their Subsidiaries shall not take any of the following
actions without the prior written consent of the other Stockholder or the Board
of Directors, as appropriate:

 

(a)                                  acquire
or seek to acquire Beneficial Ownership of any securities, including rights or
options, of the other Stockholder or the Operating Company, except as permitted
by the Operating Agreement;

 

(b)                                 propose
to enter into any merger, purchase of substantially all the assets or any other
business combination involving the other Stockholder;

 

10

 

(c)                                  participate
in any solicitation of proxies to vote, or seek to advise any Person with
respect to the voting of, any securities of the other Stockholder; propose any
stockholder proposals for submission to a vote of stockholders of the other
Stockholder, or propose any Person for election to, or the removal of any
member from, the Board of Directors of the other Stockholder; or in any way
seek to influence the management or policies of the other Stockholder; or

 

(d)                                 enter
into any discussions or understandings with any Third Party, which, if
concluded by any action, would result in a violation of the foregoing.

 

The foregoing
obligations of the Stockholders shall terminate upon one (1) year after the
earlier of: (a) the dissolution of the Operating Company, or (b) the Transfer
or conversion by any Stockholder of its Class B Common Stock.

 

4.2.         Composition of the Board.
If necessary, the composition of the Board of Directors shall be adjusted, to
the extent necessary, to ensure the ongoing compliance with the Sarbanes-Oxley
Act and the rules and regulations of any stock exchange on which the Management
Company’s Class A Common Stock may be traded. The Stockholders agree to vote
their stock in favor of any such adjustments to the composition of the Board of
Directors.

 

4.3.         [Reserved].

 

4.4.         Insurance.
The Management Company shall purchase and maintain insurance coverage adequate
to cover risks of such types and in such amounts as are customary for companies
of similar size engaged in similar lines of business, including, without
limitation, liability insurance for the benefit of its employees, directors and
officers with respect to claims against such employees, directors and officers
in their capacity as employees, directors and officers in such amounts as the
Management Company shall determine are adequate.

 

ARTICLE
5

TRANSFER RESTRICTIONS

 

5.1.         Transfer Restrictions.
Until such time as a Triggering Event (as defined in Article 5 of the Certificate
of Incorporation) shall occur, each Stockholder agrees that it and its
Subsidiaries and Parent Entities shall not Transfer or permit any Transfer, in
any single transaction or series of related transactions, any JV Securities
that are, directly or indirectly, Beneficially Owned by it, except in
accordance with the terms of this Stockholders’ Agreement and the Operating
Agreement. Any Transfer of any JV Securities other than in accordance with this
Stockholders’ Agreement and the Operating Agreement shall be null and void.

 

5.1.1       Lock-In Period.
Prior to March 24, 2008 (the “Lock-in Period”),
the Stockholders and their Subsidiaries and Parent Entities shall not Transfer
or solicit any Transfer of any JV Securities without the prior written consent
of the non-transferring Class B Stockholder, which cannot be unreasonably
withheld or delayed. After the expiration of the

 

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Lock-in
Period, the Stockholders and their Subsidiaries may, subject to the restrictions
on Transfer contained in this Article 5
or in the Operating Agreement, Transfer all or any portion of their JV
Securities to a Third Party without the necessity of obtaining the prior
written consent of the Class B Stockholder(s).

 

5.1.2       Permitted Transfers.
Notwithstanding anything in Section 5.1.1
to the contrary, the following Transfers of JV Securities will be permitted
(the “Permitted Transfers”)
without the necessity of obtaining the written consent of the Class B
Stockholders:

 

(a)                                  a
Transfer to a Parent Entity (to which the Stockholder is a wholly-owned
Subsidiary) or a wholly-owned Subsidiary of the Stockholder;

 

(b)                                 a
Transfer in connection with an underwritten Public Offering as a selling
Stockholder;

 

(c)                                  a
Transfer to the Operating Company or the Management Company; and

 

(d)                                 a
pledge to a financial institution in connection with a borrowing secured by, a
Stockholder’s JV Securities together with substantially all of that Stockholder’s
other assets.

 

5.1.3       Agreement to be Bound.
In all circumstances other than those described in Section 5.1.2(b), a Transfer of JV Securities or conversion of
Membership Units or shares of convertible Preferred Stock into shares of Class
A Common Stock shall be given effect by the Management Company or the Operating
Company only upon receipt of the written agreement of the recipient of the
transferred JV Securities agreeing to be bound by the terms and conditions of
this Stockholders’ Agreement or the Operating Agreement, as the case may be,
and the Confidentiality Agreement.

 

5.1.4       Effect of Transfer.
Upon any Transfer of all of a Stockholder’s JV Securities, the transferring
Stockholder will have no continuing rights or obligations under this
Stockholder’s Agreement or the Operating Agreement but shall continue to be
bound by any Ancillary Agreements to which it is a party, in accordance with
their terms.

 

5.2.         [Reserved]

 

5.3.         Right of First Refusal.
Subject to Section 5.5, if a
Stockholder (the “First Party”)
receives a bona-fide written offer by a Third Party to purchase all or a
portion of the First Party’s Shares (the “Subject
Interest”) that the First Party desires to accept, the First Party
shall promptly after receipt of the offer deliver notice (the “Transfer Notice”) to the Management
Company and SKT stating that the First Party proposes to Transfer the Subject
Interest. The Transfer Notice shall (i) specify the purchase price and other
material terms of the Transfer of the Subject Interest, (ii) identify the
proposed purchaser, (iii) specify the date scheduled for the Transfer (which
date shall not be less than ninety (90) days after the date the Transfer Notice
is delivered) and (iv) have attached thereto a copy of the bona fide offer and
any ancillary agreements containing terms and conditions of the sale of the
Subject Interest. Within

 

12

 

sixty (60)
days after receipt of a Transfer Notice, SKT will have the right to elect to
purchase a portion of the Subject Interest being sold equal to their respective
ROFR Percentage Interests (a “Right of First
Refusal”), on terms and conditions no less favorable to the First
Party than those set forth in the Transfer Notice; provided, that
if such terms and conditions include non-cash assets or nonfinancial requirements
that would be impracticable to satisfy, then SKT shall not be required to
satisfy such terms, conditions and requirements, and the purchase price for the
Subject Interest will include an amount equal to the fair market value of such
non-cash assets. If SKT elects to purchase the Subject Interest, the First
Party and SKT shall use reasonable efforts to consummate the closing of the
purchase of the Subject Interest as soon as reasonably practicable and in any
event within one hundred twenty (120) calendar days after receipt of the
Transfer Notice (the “ROFR Termination Date”),
provided, that if the closing does not occur by then due to the
failure to receive any required regulatory approvals or consents, the ROFR
Termination Date may be extended by either the First Party or SKT until such
approvals are received, but in no event for a period of more than one hundred
eighty (180) calendar days after receipt of the Transfer Notice. If the Right
of First Refusal is not exercised by SKT as to the entire Subject Interest
within sixty (60) days of receipt of the Transfer Notice or the entire Subject
Interest is not purchased from the First Party prior to the ROFR Termination
Date, as adjusted for any extension thereto, then the First Party may sell the
Subject Interest to the proposed purchaser identified in the Transfer Notice on
the terms set forth therein, subject to the Tag-along Right of SKT provided in Section 5.4 below. If SKT agrees to
purchase any portion of the Subject Interest in accordance with the foregoing
and fails to complete the purchase of such portion of the Subject Interest
prior to the ROFR Termination Date, other than as a result of a denial of any
required regulatory approvals or consents, then SKT shall be deemed to have
breached this Stockholders’ Agreement and, in addition to any other right or
remedy available to the First Party or the Management Company, shall be deemed
to have forfeited its Tag-along Right under Section
5.4 in connection with the First Party’s right to sell the Subject
Interest to the Third Party named in the Transfer Notice. The above Right of
First Refusal shall not apply to a transaction which constitutes a Change of
Control of a Class B Stockholder.

 

5.4.         Tag-along Right.
If (i) the Right of First Refusal is not exercised by SKT as to the entire
Subject Interest within sixty (60) days of receipt of the Transfer Notice or
the entire Subject Interest is not purchased from the First Party on or before
the ROFR Termination Date, as it may have been extended or (ii) SKT receives a
bona-fide written offer by a Third Party to purchase SKT’s Subject Interest
that SKT desires to accept, then the First Party or SKT, as applicable, shall
promptly deliver written notice thereof (“Tag-along
Transfer Notice”) to any non-transferring Class B Stockholder (each
non-transferring Class B Stockholder a “Second
Party” and collectively, the “Second
Parties”) and each Second Party will have the right to sell to the
Third-Party purchaser identified in the Tag-along Transfer Notice a portion of
the Subject Interest, from such Second Party’s Shares, equal to the Subject
Interest multiplied by such Second Party’s Percentage Interest (“Tag-along Right”); provided that no Second
Party that has breached its obligations under Section
5.3 with respect to any Subject Interest may exercise any Tag-along
Right with respect to such Subject Interest. A Second Party electing to
exercise its Tag-along Right shall provide to the Operating Company and the
First Party written notice of such election (the “Tag-along Election Notice”) within such sixty (60) day period.
The Tag-along Election Notice shall specify the number of Shares to be included
in the sale to the Third-Party purchaser. Any sale pursuant to this Section 5.4 shall be consummated not later
than sixty (60) days following delivery of the Tag-along Election Notice.

 

13

 

5.5.         Limitation on the Right of First
Refusal and Tag-along Right. The Right of First
Refusal and Tag-along Right described in Sections
5.3 and 5.4, above,
shall not apply to Permitted Transfers. The Right of First Refusal and the
Tag-along Right shall terminate upon a Public Offering of the Class A Common
Stock and the availability of Rule 144 to Stockholders for the Transfer of
their Shares.

 

5.6.         Drag-along Right.
Notwithstanding anything herein to the contrary, in the event of a bona fide
arm’s length sale (including a binding commitment to sell) to an unaffiliated
Third Party by SKT, in a single transaction or a series of related transactions
(whether by sale of shares, merger, amalgamation, consolidation, sale of assets
or similar transaction), of not less than a majority of the Total Outstanding
Shares then owned by SKT (a “Recommended
Transaction”), each of the other Stockholders (collectively, the “Subject Stockholders”) will be obliged to
sell if required by SKT, in the same transaction or transactions, the same
proportion of the Total Outstanding Shares held by such Subject Stockholder as
being sold by SKT, and each Subject Stockholder further agrees (if it is
required to participate in the sale) to vote, or grant proxies to vote, the
proportion of such Subject Stockholder’s Total Outstanding Shares subject to
the Recommended Transaction in favor of the Recommended Transaction and to take
such other votes or actions as may be reasonably necessary to facilitate the
Recommended Transaction. The obligations of the Subject Stockholders pursuant
to this Section 5.6 are subject to
the satisfaction of the following conditions:

 

5.6.1       Upon the consummation
of the Recommended Transaction, all of the Subject Stockholders shall receive
the same proportion of the aggregate consideration from such Recommended
Transaction that such holder would have received if such aggregate
consideration had been distributed by the Management Company in complete
liquidation pursuant to the rights and preferences set forth in the Certificate
of Incorporation as in effect immediately prior to such Recommended Transaction.
SKT unconditionally agrees that no consideration in connection with the
Recommended Transaction will be diverted away from the Subject Stockholders
through value-added partnership or commercial agreements entered into in
connection with such Recommended Transaction.

 

5.6.2       If any Subject
Stockholders of a class or series is given an option as to the form and amount
of consideration to be received, all holders of such class or series will be
given the same option.

 

5.6.3       No Subject
Stockholders shall be obligated to make any out-of-pocket expenditure prior to
the consummation of the Recommended Transaction and no Subject Stockholders
shall be obligated to pay more than its pro rata share (based upon the amount
of consideration received) of reasonable expenses incurred in connection with a
consummated Recommended Transaction to the extent such costs are incurred for
the benefit of SKT and all Subject Stockholders and are not otherwise paid by
the Management Company or the acquiring party (costs incurred by SKT or on
behalf of a Subject Stockholder for its sole benefit will not be considered
costs of the transaction hereunder); provided that SKT and a Subject
Stockholder’s liability for such expenses shall be shared pro rata based on SKT
and each Subject Stockholder’s share of the share capital of the Management
Company.

 

14

 

5.6.4       In the event
that SKT and all the Subject Stockholders are required to provide any
representations or indemnities in connection with the Recommended Transaction
(other than representations and indemnities concerning (i) each Subject
Stockholder’s valid ownership of its Shares in the Management Company, free of
all liens and encumbrances (other than those arising under applicable
securities laws), and (ii) each Subject Stockholder’s authority, power, and
right to enter into and consummate such purchase or merger (amalgamation)
agreement without violating any other agreement), then each Subject Stockholder
shall not be liable for more than its pro rata share (based upon the amount of
consideration actually received) of any liability for misrepresentation or
indemnity and such liability shall not exceed the total purchase price received
by such Subject Stockholder for its Shares.

 

5.6.5       No Subject
Stockholder shall be obligated to enter into any non-competition or other
restrictive covenant in connection with the Recommended Transaction unless (i)
such restrictive covenant only prohibits the Subject Stockholder from providing
MVNO Services (as defined in Section 6.7.2)
in the United States for a period of two (2) years, and (ii) SKT and each
other Subject Stockholder agree to such restrictive covenant in connection with
the Recommended Transaction.

 

5.6.6       The provisions
of this Section 5.6 shall
terminate on the consummation of a Public Offering.

 

5.7.         Transfer of Class B Common Stock.
Except as provided below, if a Class B Stockholder desires to Transfer its
shares of Class B Common Stock other than to an Affiliate, then it must, first,
convert its shares of Class B Common Stock into shares of Class A Common Stock,
and second, Transfer the shares of Class A Common Stock pursuant to a Permitted
Transfer. Notwithstanding the foregoing restriction, a holder of Class B Common
Stock may sell its shares of Class B Common Stock in a transaction in which it
completely divests itself of all interests in the Management Company and the
Operating Company, subject at all times to the Transfer restrictions set forth
in this Stockholders’ Agreement and the Operating Agreement.

 

ARTICLE
6

RESTRICTED SERVICES

 

6.1.         Restricted Services.
For the periods specified below, the Management Company shall cause the
Operating Company and its Subsidiaries to refrain from providing the services
set forth in this Section 6.1 (the
“Restricted Services”), except as
provided in Section 6.1.3 or
pursuant to a written agreement with the party benefiting from such
restrictions.

 

6.1.1       EarthLink Services.
For so long as EarthLink or a Subsidiary of EarthLink owns a share of Class B
Common Stock, the Management Company shall cause the Operating Company and its
Subsidiaries to refrain from providing the following Restricted Services that
the parties deem to compete with and overlap the products and services provided
by EarthLink and its Affiliates: (a) Broadband internet access, including cable,
DSL, PC-based satellite and fixed wireless; (b) Dial-up internet access; (c)
Web hosting services; (d) VOIP or VoWiFi services over broadband; (e) PC-based
wireless Wide Area Network or Local Area

 

15

 

Network
internet access services (e.g. home networking) and (f) Internet portal service
for Third Parties that are not customers of the Operating Company or a
Subsidiary thereof, except as needed for customer acquisition services and
maintenance purposes.

 

6.1.2       SKT Services.
For so long as SKT or a Subsidiary of SKT owns a share of Class B Common Stock,
the Management Company shall cause the Operating Company and its Subsidiaries
to refrain from providing the following Restricted Services that the parties
deem to compete with and overlap the products and services provided by SKT and
its Affiliates:  (a) mobile virtual
network enabler, wireless application service provider and managed services for
wireless telecom service providers and (b) development and manufacture of
wireless devices with the intent to sell such devices to wireless telecom
service providers, provided, that the Operating Company and its
Subsidiaries are permitted to purchase and distribute such devices that are
manufactured by Third-Party manufacturers.

 

6.1.3       Sales to Commercial Partners.
Notwithstanding the above restrictions, the Operating Company and its
Subsidiaries may offer the Operating Company Products and Services to
commercial partners who bundle and sell the Operating Company Products and
Services with products and services which constitute or are similar to the
Restricted Services.

 

6.2.         Products and Services Outside the
Business Plan. The Management Company shall cause
the Operating Company and its Subsidiaries to refrain from engaging in the
development of new products and services that are outside of the approved
Business Plan.

 

6.3.         Wimax Enabled Devices.
The Operating Company and its Subsidiaries may distribute handset devices that
contain the hardware and software components necessary to permit Wimax access (“Wimax Enabled Devices”) and related
hand-set only Wimax services, but, for so long as EarthLink or a Subsidiary of
EarthLink owns a share of Class B Common Stock, may not sell PC-based Wimax
services other than those of EarthLink. The Operating Company and its
Subsidiaries may distribute Wimax Enabled Devices to Third Parties who bundle
and resell the Wimax Enabled Devices with the Wimax handset only access
services of such Third Party. The Operating Company may only offer EarthLink’s
PC-based Wimax devices and services, which EarthLink shall make available to
the Operating Company on prices, terms and conditions that are at least as
favorable, from a financial perspective, to the Operating Company as the
prices, terms and conditions of substantially similar products and services
provided by EarthLink to a Third Party not affiliated with EarthLink.
Distribution of any other Wimax convergent devices, between PC and handset
devices, must be approved by (i) a majority of Class B Directors, and (ii) a
majority vote of all directors.

 

6.4.         [Reserved.]

 

6.5.         ASP. For
so long as EarthLink or a Subsidiary of EarthLink owns a share of Class B
Common Stock, each Stockholder and each Subsidiary of a Stockholder that acts
as an ASP in the United States (each, a “Provider”)
shall, if requested by the Operating Company, provide ASP solutions,
applications and platforms, including a license or professional service with
respect thereto, but excluding Coloring Service, to the Operating Company on
terms no less favorable than those offered by the Provider to third party
purchasers in the United States for substantially similar volumes of
substantially similar products and services.

 

16

 

 

6.6.         Future Services.
EarthLink and SKT acknowledge that the list of Restricted Services is complete
as of March 24, 2005. If EarthLink or SKT provides any future products or
services within the United States, such as wired-wireless integrated service or
satellite/terrestrial digital broadcasting services, that are excluded from the
then-current scope of Restricted Services, then, for so long as such
Stockholder or a Subsidiary of such Stockholder owns a share of Class B Common
Stock, EarthLink and SKT shall negotiate in good faith whether or not to
include such services as part of the Restricted Services.

 

6.7.         Exclusivity.

 

6.7.1       From the date
hereof until the earlier of (a) the date of the SKT Triggering Contribution or
(b) two (2) years from the first date on which either Class B Stockholder’s
ownership of the Total Outstanding Shares falls below ten percent (10%),
EarthLink and SKT and their Subsidiaries shall not provide mobile wireless
voice or data services over handsets in the United States; provided, however,
in the event of a Contribution Breach, SKT shall not provide mobile wireless
voice or data services over handsets in the United States from the date of the
Contribution Breach until two (2) years from the first date on which either
Class B Stockholder’s ownership of the Total Outstanding Shares falls below ten
percent (10%). In the event that SKT provides mobile wireless voice or data
services over handsets in the United States in the period between the date of
the SKT Triggering Contribution and a Contribution Breach, upon a Contribution
Breach (i) SKT must immediately cease providing all such services (other than
through the Management Company or the Operating Company), (ii) any agreements
entered into by SKT (other than through the Management Company or the Operating
Company) related to providing such services will be void as of the date of the
Contribution Breach and (iii) any entity (which shall not include the
Management Company or the Operating Company) created by SKT to provide such
services must be dissolved. It is understood and agreed that money damages
would not fully compensate EarthLink as a remedy for a Contribution Breach by
SKT and, without prejudice to any other rights and remedies otherwise available
to EarthLink, EarthLink shall be entitled to equitable relief by way of
injunction, specific performance or otherwise with respect to this Section 6.7 in the event of a Contribution
Breach.

 

6.7.2       Other than
through the Operating Company, EarthLink and SKT and their Subsidiaries shall
not provide MVNO Services in the United States. The restrictions set forth in
this Section 6.7.2 shall terminate
on the date that is two (2) years from the first date on which either Class B
Stockholder’s ownership of the Total Outstanding Shares falls below ten percent
(10%). For purposes of this Section 6.7.2,
“MVNO Services” means providing mobile voice and data services on mobile
handsets without owning any material part of a mobile network or frequency
pertaining to such said mobile services, but instead by leasing all or
substantially all of the mobile network and frequency from mobile network
operators.

 

6.7.3       Neither
EarthLink nor SKT nor their respective Subsidiaries shall assist any Parent
Entity or any Subsidiary of a Parent Entity in any activity that would
constitute a violation of the exclusivity provisions set forth in this Section 6.7 if it were performed by such
party or its Subsidiary directly. Except as provided in this Agreement, nothing
shall prohibit EarthLink and SKT or their respective Subsidiaries from
competing with each other or the Operating Company, its Parent Entity or any of
its Subsidiaries.

 

17

 

6.8.         [Reserved].

 

6.9.         Availability of
Injunctive Relief. The parties acknowledge that
each may seek injunctive relief under Section 11.2 to
satisfy the requirement of this Article 6 as well as for any other breach of
this Agreement.

 

ARTICLE
7

CONVERSION AND EXCHANGE

 

7.1.         Conversion of
Class B Common Stock. The Stockholders may convert
their shares of Class B Common Stock to shares of Class A Common Stock as
provided in the Certificate of Incorporation, and each Stockholder agrees to
vote its Shares in such a manner as to give full effect to such conversion
rights.

 

7.2.         Exchange of Membership
Units. The Stockholders may exchange their
Membership Units for shares of Class A Common Stock as provided in the
Operating Agreement, and each Stockholder agrees to vote its Shares in such a
manner as to give full effect to such exchange rights.

 

7.3.         Conversion of
Convertible Preferred Stock. The Stockholders may
convert their shares of convertible Preferred Stock, if any, to shares of Class
A Common Stock as provided in the Certificate of Incorporation, and each
Stockholder agrees to vote its Shares in such a manner as to give full effect
to such conversation rights.

 

7.4.         Availability of
Authorized and Unissued Class A Common Stock. The
Stockholders will vote their Shares to ensure that at all times sufficient
shares of Class A Common Stock are reserved out of the authorized but unissued
Shares to permit the issuance of shares of Class A Common Stock sufficient to
(a) exchange all of the outstanding Membership Units, (b) convert the shares of
Class B Common Stock (c) convert the shares of convertible Preferred Stock and
(d) permit the exercise of any outstanding Class A Options, each as provided
for in the Management Company’s Certificate of Incorporation and the Operating
Agreement. The Stockholders will vote their Shares to list the shares of Class
A Common Stock required to be delivered by the Operating Company upon
conversion or exchange prior to such delivery upon each national securities
exchange or other recognized trading market upon which the outstanding Class A
Common Stock is listed at the time of such delivery. If at any time there are
not sufficient shares of Class A Common Stock authorized by the Certificate of
Incorporation as required by this Section 7.4 and
the then existing holders of the requisite number of Class A Common Stock fail
to vote in favor of an amendment to the Certificate of Incorporation to
increase the amount of Class A Common Stock, then each Stockholder will
exchange its pro rata number of Membership Units for Class A Common Stock
pursuant to Section 7.2 hereof and Section
15.1 of the Operating Agreement in an amount necessary to obtain the requisite
affirmative vote of the Class A Common Stock to effect such amendment.

 

7.5.         Authorization of
Class B Common Stock. The Stockholders, with
respect to any issuance of Class B Common Stock to an unaffiliated third party
approved by the Board, will vote their Shares to increase the authorized number
of shares of Class B Common Stock in the 

 

18

 

Certificate of Incorporation to
ensure that the Company may issue such shares of Class B Common Stock.

 

ARTICLE
8

STRATEGIC DECISIONS AND DEADLOCK MATTERS

 

8.1.         Strategic
Decisions. For so long as EarthLink owns at least
twenty percent (20%) of the Total Outstanding Shares, all matters set forth on Schedule 8.1(a) (the “Strategic
Decisions”) shall require the affirmative vote of (i) all Class B
Directors, and (ii) a majority vote of all directors, and all other matters
requiring the approval of the Board of Directors, including those matters set
forth on Schedule 8.1(b), shall require the
affirmative vote of (A) a majority of the Class B Directors, and (B) a majority
vote of all directors. If EarthLink ceases to own at least twenty percent (20%)
of the Total Outstanding Shares, all matters requiring the approval of the
Board of Directors, including all matters set forth on Schedules
8.1(a) and (b), shall
require the affirmative vote of (1) a majority of the Class B Directors, and
(2) a majority vote of all directors.

 

8.2.         Deadlock.
If, after consideration at a meeting of Board of Directors, the Board of
Directors is unable to reach a decision regarding a Strategic Decision (a “Deadlock Matter”), then the chief executive officer of each
holder of Class B Common Stock shall have forty-five (45) days following such
meeting of Board of Directors to meet and negotiate, in good faith, to resolve
the Deadlock Matter. If the chief executive officers of the holders of Class B
Common Stock are unable to resolve a Deadlock Matter within such forty-five
(45) day period, then the Deadlock Matter shall remain until later, if ever,
resolved. The Management Company and Operating Company shall continue to
operate in a manner consistent with prior practices until such time as a
Deadlock Matter is resolved. For purposes of illustration only, if a Deadlock
Matter concerns the approval of a Business Plan, the Management Company and
Operating Company shall continue to operate under the then-current Business
Plan pending resolution of the Deadlock Matter. The deadlock provision set
forth in this Section 8.2 shall terminate upon a
Public Offering.

 

ARTICLE
9

CERTIFICATES

 

9.1.         Certificates.
Any Shares held by a Stockholder shall be represented by a certificate, setting
forth upon the face thereof that the Management Company is a corporation
organized under the laws of the State of Delaware, the name of the Person to
which it is issued and the number of Shares which such certificate represents.
Such certificates shall be entered in the books of the Management Company as
they are issued, and shall be signed by the Chief Executive Officer of the
Management Company. Upon any Transfer permitted under this Stockholders’
Agreement and the Operating Agreement, the transferring Stockholder shall (a)
issue to the transferee a certificate representing the number of Shares so
transferred and (b) surrender to the Management Company and the Management
Company shall issue to the transferring Stockholder certificates representing
the remaining Shares, if any, held by such transferring Stockholder after
taking into account such Transfer. All certificates representing 

 

19

 

Shares (unless registered under
the Securities Act of 1933, as amended (the “Securities
Act”), shall bear the following legends:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
SECURITIES REGULATORY AUTHORITY OF ANY STATE, AND MAY NOT BE OFFERED, SOLD,
ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED, EXCEPT IN A
TRANSACTION WHICH IS REGISTERED UNDER, EXEMPT FROM, OR OTHERWISE IN COMPLIANCE
WITH THE FEDERAL AND STATE SECURITIES LAWS, AS TO WHICH THE MANAGEMENT COMPANY
HAS RECEIVED SUCH ASSURANCES AS THE MANAGEMENT COMPANY MAY REQUEST, WHICH MAY
INCLUDE, A SATISFACTORY OPINION OF COUNSEL.

 

ANY SALE, ASSIGNMENT, TRANSFER, PLEDGE OR OTHER DISPOSITION OF THE
SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY, AND SUBJECT TO, THE
TERMS AND PROVISIONS OF AN AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT BETWEEN
THE MANAGEMENT COMPANY AND THE STOCKHOLDERS SET FORTH THEREIN AND A SECOND
AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT BETWEEN HELIO LLC AND
THE MEMBERS NAMED THEREIN, EACH DATED THE        
OF           , 2007. A COPY
OF THE AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT AND THE SECOND AMENDED AND
RESTATED LIMITED LIABILITY COMPANY AGREEMENT IS ON FILE WITH THE SECRETARY OF
THE MANAGEMENT COMPANY. BY ACCEPTANCE OF THIS CERTIFICATE, THE HOLDER HEREOF
AGREES TO BECOME BOUND BY THE AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT AND
SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT.

 

9.2.         Lost or Destroyed
Certificates. The Management Company may issue a
new certificate for Shares in place of any certificate theretofore issued by
it, alleged to have been lost or destroyed, upon the making of an affidavit of
that fact, and providing an indemnity in form and subject reasonably
satisfactory to the Board of Directors by the Person claiming the certificate to
be lost or destroyed.

 

20

 

ARTICLE
10

TERMINATION

 

10.1.       Termination.
This Stockholders’ Agreement shall terminate upon the first to occur of the
events set forth in this Section 10.1:

 

10.1.1     Written Consent.
The written consent of the Stockholders.

 

10.1.2     Unlawful to Continue.
The occurrence of any event which makes it unlawful for the Management Company
to be continued.

 

10.1.3     Order of Dissolution.
The issuance of a decree by any court of competent jurisdiction that the
Management Company be dissolved and liquidated.

 

10.2.       Effect of
Termination; Survival. In the event of a
termination, this Stockholders’ Agreement and the provisions set forth herein
shall terminate automatically without any action by any party, except Articles 1, 4, 10 and 11, which shall
survive for the applicable periods set forth therein or, if none stated,
indefinitely.

 

ARTICLE
11

DISPUTE RESOLUTION

 

11.1.       Dispute Resolution.
Any dispute arising out of or relating to this Stockholders’ Agreement shall be
resolved in accordance with the procedures specified in this Section 11.1, which shall be the sole and exclusive
procedure for the resolution of any such dispute.

 

11.1.1     Negotiation Between Executives.
The Stockholders shall attempt in good faith to resolve any dispute arising out
of or relating to this Stockholders’ Agreement promptly by direct negotiation
between executives who have authority to settle the controversy and who are at
a higher level of management than the persons with direct responsibility for
administration of this Agreement, unless there is no executive of a higher
level. Any party may give the other party written notice of any dispute not
resolved in the normal course of business. Within fifteen (15) days after delivery
of the notice, the receiving party shall submit to the other a written response.
The notice and the response shall include: (a) a statement of each party’s
position and a summary of arguments supporting that position; and (b) the name
and title of the executive who will represent that party and of any other
person who will accompany the executive. Within thirty (30) days after delivery
of the disputing party’s notice, the executives of each Stockholder shall meet
at a mutually acceptable time and place, and thereafter as often as they
reasonably deem necessary, to attempt to resolve the dispute. All reasonable
requests for information made by one party to the other will be honored. All
negotiations pursuant to this clause are, confidential and shall be treated as
compromise and settlement negotiations for purposes of applicable rules of
evidence.

 

11.1.2     Mediation With Mutually Agreed-Upon
Neutral. If the dispute has not been resolved by
negotiation within forty-five (45) days of the disputing party’s notice, or if
the Stockholders fail to meet within twenty (20) days the Stockholders shall
submit the dispute to non-binding mediation under the then-current CPR
Institute for Dispute Resolution’s (“CPR”)

 

21

 

Model
Mediation Procedure for Business Disputes, and endeavor (but not be obligated)
to settle the dispute in such mediation. CPR’s address at the time of this
Agreement is 366 Madison Avenue, 14th Floor, New York, New York 10017
(212-949-6490) and its website is “www.cpradr.org.”  The Stockholders agree to use their
reasonable best efforts and good faith to agree mutually on a mediator, to be
selected from the CPR Technology Panel of Neutrals. If the Stockholders fail to
select a mutually acceptable mediator within thirty (30) days after either
party’s notice to the other party that they request non-binding mediation
pursuant to this subsection, CPR will appoint a mediator from the Technology
Panel.

 

11.1.3     Arbitration.
All disputes arising out of or relating to this Stockholders’ Agreement not
resolved pursuant to non-binding mediation within thirty (30) days or as this
time period may be extended by written agreement of the Stockholders shall be
settled finally in an arbitration conducted under the Rules of Arbitration of
the International Chamber of Commerce (“ICC”)
and as provided in this Section 11.1.3.

 

(a)                                  The
arbitration proceedings shall be conducted in New York, New York, U.S.A.

 

(b)                                 The
arbitration proceedings shall be governed by the laws of New York.

 

(c)                                  The
language of the arbitration proceedings shall be English.

 

(d)                                 The
arbitral tribunal shall consist of three (3) arbitrators, one (1) of which
shall be selected by SKT and one (1) of which shall be selected by EarthLink. The
third arbitrator shall be selected by the two (2) arbitrators appointed by SKT
and EarthLink.

 

(e)                                  The
International Bar Association’s Rules on the Taking of Evidence in
International Commercial Arbitration shall apply together with the ICC Rules
governing any submission to arbitration incorporated in this Agreement.

 

(f)                                    Every
award shall be binding on the Stockholders. By submitting the dispute to
arbitration under the ICC Rules, the Stockholders undertake to carry out any
award without delay and shall be deemed to have waived their right to any form
of recourse insofar as such waiver can validly be made.

 

(g)                                 This
agreement to arbitrate shall be binding on the Stockholders and their
respective successors, assigns and Affiliates.

 

(h)                                 The
prevailing party in any arbitration proceeding conducted pursuant to this
Stockholders’ Agreement may recover its reasonable fees both for legal
representation and related costs in any action to enforce this Agreement in any
judicial or arbitration proceeding.

 

22

 

(i)                                     The
Stockholders waive any right or claim to punitive or exemplary damages and
agree that punitive or exemplary damages are not within the
contemplation of this Stockholders’ Agreement. No arbitral tribunal may order
an award consisting in whole or in part of punitive or exemplary damages.

 

11.1.4     Tolling of Statutes of Limitation.
All applicable statutes of limitation and defenses based on the passage of time
shall be tolled while the procedures specified in Section 11.1.2 and Section
11.1.3 are pending. The Stockholders will take such action, if any,
required to effectuate such tolling.

 

11.2.       Right to Injunctive
Relief Before Appointment of Arbitrators. With
respect to any violations of this Stockholders’ Agreement which would cause or
might cause irreparable injury to any one of the parties to this Stockholders’
Agreement, any party may, in addition to any other rights under this
Stockholders’ Agreement and notwithstanding the dispute resolution procedures
including, particularly, the arbitration agreement contained in this Section 11.2, seek specific performance of this Stockholders’
Agreement and injunctive relief in any court of competent jurisdiction against
any ongoing violation of this Stockholders’ Agreement. Prior to the appointment
of the arbitrators pursuant to the arbitration agreement, any party hereto may
seek provisional or interim measures from any court of competent jurisdiction.
After the appointment of the arbitrators, the arbitrators shall have exclusive
power to consider and grant requests for provisional or interim measures.

 

ARTICLE
12

MISCELLANEOUS

 

12.1.       Governing Law.
This Stockholders’ Agreement and the rights and obligations of the Stockholders
shall be governed by and construed in accordance with and subject to the laws
of the State of New York.

 

12.2.       Notices.
All notices, requests, claims, demands and other communications hereunder shall
be in writing and shall be deemed given (i) on the first calendar day following
the date of delivery in person or by telecopy (in each case with telephonic
confirmation of receipt by the addressee), (ii) on the first calendar day
following timely deposit with an overnight courier service, if sent by
overnight courier specifying next day delivery or (iii) on the first calendar
day that is at least five (5) days following deposit in the mails, if sent by
first class mail, to the Stockholders at the following addresses (or at such
other address for a Stockholder as shall be specified by like notice):

 

If to SKT:

 

SK Telecom Co., Ltd.

11, Euljiro2-ga, Jung-gu

Seoul 100-999, Korea

Attention:  Mr. Seung – Kook Synn

Facsimile:  (822) 6100-7966

 

23

 

with a copy to:

 

Baker & McKenzie

14th Floor, Hutchison House, 10 Harcourt

Hong Kong, SAR

Attention: Mr. Won Lee

Facsimile:  (852) 2845 0476

 

If to EarthLink:

 

EarthLink, Inc.

1375 Peachtree Street, N.E.

Atlanta, Georgia 30309

Attention:  Chief Executive
Officer

Facsimile:  (404) 892-7616

Copy to:  Samuel R. DeSimone,
General Counsel

 

with a copy to:

 

Troutman Sanders LLP

600 Peachtree Street N.E., Suite 5200

Atlanta, Georgia 30308

Attention:  David M. Carter

Facsimile:  (404) 962-6598

 

If to the Management Company:

 

HELIO, Inc.

10960 Wilshire Blvd., Suite 700

Los Angeles, California 90024

Attention:  Legal Department

Facsimile:  (310) 312-8889

 

with a copy to:

 

HELIO LLC

10960 Wilshire Blvd., Suite 700

Los Angeles, California 90024

Attention:  Sky D. Dayton, Chief
Executive Officer

Facsimile:  (310) 996-1368

 

with a copy to:

 

Kirkpatrick & Lockhart Preston Gates Ellis LLP

10100 Santa Monica Boulevard, Seventh Floor

 

24

 

Los Angeles, California 90067

Attention:  Thomas J. Poletti

Facsimile:  (310) 552-5001

 

12.3.       Compliance with
Applicable Laws. The Management Company shall
provide each Class B Stockholder with access to all of the books, records and
other information of the Management Company necessary to permit each such Class
B Stockholder to satisfy its compliance obligations under the Sarbanes-Oxley
Act of 2002 and under all other applicable state, federal and foreign laws.

 

12.4.       Severability.
The provisions of this Stockholders’ Agreement shall be deemed severable and
the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof. If any provision of
this Stockholders’ Agreement or the application thereof to any Person or any
circumstance, is invalid or unenforceable, (i) a suitable and equitable
provision shall be substituted therefor in order to carry out, so far as may be
valid and enforceable, the intent and purpose of such invalid or unenforceable
provision and (ii) the remainder of this Stockholders’ Agreement and the
application of such provision to other Persons or circumstances shall not be
affected by such invalidity or unenforceability, nor shall such invalidity or
unenforceability affect the validity or enforceability of such provision, or
the application thereof, in any other jurisdiction.

 

12.5.       Counterparts.
For the convenience of the parties hereto, this Stockholders’ Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original and all of which shall together constitute the same agreement.

 

12.6.       Headings.
All Section headings are for convenience of reference only and are not part of
this Stockholders’ Agreement, and no construction or reference shall be derived
therefrom.

 

12.7.       Successors and
Assigns. This Stockholder’s Agreement shall be
binding upon and inure to the benefit of the Stockholders and their respective
successors and permitted assigns and shall not be assignable except to the
extent expressly permitted hereby and any purported assignment of this
Stockholders’ Agreement or of any Shares in violation of this Stockholders’
Agreement shall be null and void and of no force or effect. The rights and
obligations under this Stockholders’ Agreement shall be assigned by a
Stockholder to a transferee in connection with the Transfer to such transferee
pursuant to Article 5.

 

12.8.       Entire Agreement;
Waiver. This Stockholders’ Agreement (including
any Schedules hereto) and the Ancillary Agreements (including any exhibits and
schedules thereto), supersede all prior agreements, written or oral, among the
Stockholders with respect to the subject matter hereof and thereof and contain
the entire agreement among the Stockholders with respect to the subject matter
hereof and thereof. This Stockholders’ Agreement may not be amended,
supplemented or modified, and no provisions hereof may be modified or waived,
except by an instrument in writing signed by the Management Company and each
Stockholder owning more than ten percent (10%) of the Total Outstanding Shares;
provided, however, that Article 6 and Section 8.1 may only be amended with the approval of (i)
all Class B Directors, and (ii) a majority vote of all directors. No waiver of
any provisions hereof by any Stockholder 

 

25

 

shall be deemed a waiver of any
other provisions hereof by any such Stockholder, nor shall any such waiver be
deemed a continuing waiver of any provision hereof by such Stockholder.

 

12.9.       No Relief of
Liabilities. The Transfer by a Stockholder of any
JV Securities Beneficially Owned by such Stockholder shall not relieve such
Stockholder of any liabilities or obligations to the Management Company or any
other Stockholder, as the case may be, that arose or accrued prior to the date
of such Transfer.

 

12.10.     Further Assurances.
Each Stockholder shall at any time, and from time to time, execute and deliver
such additional instruments and other documents and shall at any time, and from
time to time, take such further actions as may be necessary or appropriate to
effectuate, carry out and comply with all of the terms of this Stockholders’
Agreement and the transactions contemplated hereby.

 

12.11.     THIRD PARTY
BENEFICIARIES. NOTHING IN THIS STOCKHOLDERS’ AGREEMENT, EXPRESS OR IMPLIED,
IS INTENDED TO CONFER UPON ANY THIRD PARTY ANY RIGHTS OR REMEDIES OF ANY NATURE
WHATSOEVER UNDER OR BY REASON OF THIS STOCKHOLDERS’ AGREEMENT.

 

12.12.     Joinder.
Any Person that acquires any shares of Class B Common Stock in compliance with
the terms hereof and the Certificate of Incorporation shall, without the need
for approval by any other party to this Stockholders’ Agreement, become a party
to this Stockholders’ Agreement by executing and delivering a joinder signature
page hereto in the form of Exhibit A hereto whereupon such Person shall
be deemed a “Class B Stockholder” and a “Stockholder” for all purposes of this
Agreement and shall automatically be added to Schedule 2.2
hereto.

 

26

 

IN WITNESS
WHEREOF, the Parties hereto have executed this
Stockholders’ Agreement as of the date first written above.

 

	
   

  	
  SK TELECOM CO., LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Jin Woo So, Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EARTHLINK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HELIO, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Sky D. Dayton, Chief Executive Officer

  

 

 

[Signature Page to Stockholders’ Agreement]

 

 

Schedule 8.1(a)

 

Strategic Decisions

 

The following Strategic Decisions shall be approved as provided in Article 8 of this Stockholders’ Agreement:

 

(a)                                  Any
amendment to governing documents, to the extent (i) with respect to an
amendment of the Certificate of Incorporation, such amendment alters or changes
the powers, preferences or special rights of the Class A Common Stock or Class
B Common Stock, (ii) with respect to an amendment to the Operating Agreement,
such amendment alters or changes the powers, preferences or special rights of
the Preferred Membership Units, (iii) with respect to the amendment of the
Bylaws of the Management Company and this Stockholders’ Agreement, such
amendment alters or changes the powers, preferences or special rights of the
Class A Common Stock or the Class B Common Stock;

 

(b)                                 Transactions
with Affiliates in excess of $5,000,000, provided that (i) the Operating
Company notifies both EarthLink and SKT with respect to any such transactions
and (ii) to the extent the aggregate of any such transactions by and between
SKT, and/or its affiliated parties, on one hand, and the Operating Company, on
the other hand, exceeds $10,000,000 on a cumulative annual basis (excluding
from such calculation any transactions that are approved by all Class B
Directors and a majority vote of all directors), then any further transactions
with Affiliates during such year shall be deemed Strategic Decisions and be
subject to approval herein;

 

(c)                                  Any
modifications of Schedules 8.1(a) or
(b);

 

(d)                                 Any
issuance of equity or membership interest senior to the Class B Common Stock or
the Membership Units, including any preferred stock or Preferred Membership
Units;

 

(e)                                  Any
Bankruptcy Matter; and

 

(f)                                    Except
in connection with an M&A Transaction, any event which results in the
primary investment vehicle of the joint venture (represented by the Operating
Company and the Management Company) becoming a corporation as opposed to a
limited liability company, whether such occurs by means of a conversion of the
Operating Company from a limited liability company to a 

 

 

corporation, a merger of the Operating
Company into the Management Company or otherwise.

 

 

Schedule 8.1(b)

 

The following matters, which list shall not be an exclusive list of
matters requiring the approval of the Board of Directors, shall be approved as
provided in Article 8 of this Stockholders’
Agreement by (i) a majority of Class B Directors, and (ii) a majority vote of
all directors:

 

(a)                                  Indebtedness
(for money borrowed and lease obligations) in excess of $5 million, outside of
ordinary course trade debt;

 

(b)                                 Declaration
and payment of dividends or distributions;

 

(c)                                  Distribution
of any other Wimax convergent devices, between PC and handset devices;

 

(d)                                 Any
M&A Transaction;

 

(e)                                  Approval
of annual Business Plan and Operating Budget;

 

(f)                                    Change
in scope of business;

 

(g)                                 Hiring/firing
(and terms of employment) of Executive Officers;

 

(h)                                 Delegation
and creation of any committees of the Board;

 

(i)                                     Acquisition
or disposition of assets (including, without limitation, subsidiaries, equity,
debt and other investments, etc.) in excess of $5 million;

 

(j)                                     New
technology purchases/investments in excess of $5 million;

 

(k)                                  Entering
into any material agreement in excess of $5 million;

 

(l)                                     Additional
capital contributions;

 

(m)                               Selection
of independent auditors for financial purposes;

 

(n)                                 Creation
and management of significant corporate governance and financial policies;

 

(o)                                 Location
of cash and investment holdings;

 

(p)                                 Change
in the name of the Management Company or the Operating Company or significant
branding;

 

(q)                                 Selection
and/or relocation of headquarters;

 

(r)                                    Establishment/change
in regulatory or public policy positions;

 

 

(s)                                  New
products or services outside of the Business Plan;

 

(t)                                    Adoption
or change to any material employee policies including the adoption of an equity
compensation plan;

 

(u)                                 Non-competition
or non-solicitation agreements binding the Operating Company;

 

(v)                                 Merger,
consolidation or reorganization that is not an M&A Transaction or
Bankruptcy Matter; and

 

(w)                               The
support, public or in confidence, of any law, rule or regulation that may
likely have a significant impact on the primary business of either EarthLink or
SKT.

 

Notwithstanding the foregoing, if the annual aggregate amount to be
expended by the Operating Company for marketing, inventory, business
development or capital expenditures is delineated within the Annual Budget
approved by a majority of Class B Directors, and a majority vote of all
directors, in accordance with this Schedule 8.1(b), but the aggregate annual
amount to be spent on any such category is greater than those limitations set
forth under this Schedule 8.1(b) but lower than the amount delineated in the
Annual Budget, additional approvals under Section 8.1 of this Stockholders’
Agreement for such aggregate expenditures shall not be required.
Notwithstanding the foregoing, the Board wishes to be made aware of any
material increases in any inventory expenditures.Exhibit 10.5

 

AMENDED
AND RESTATED BYLAWS

 

OF

 

HELIO
Inc.

 

(a
Delaware corporation)

 

 

November    , 2007

 

 

Table
of Contents

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  I  OFFICES

  	
  1

  
	
   

  	
   

  
	
  ARTICLE
  II  STOCKHOLDERS’ MEETINGS

  	
  1

  
	
   

  	
   

  
	
  2.1.  Places of Meetings

  	
  1

  
	
  2.2.  Annual Meetings

  	
  1

  
	
  2.3.  Special Meetings

  	
  2

  
	
  2.4.  Voting

  	
  2

  
	
  2.5.  Quorum

  	
  2

  
	
  2.6.  List of Stockholders

  	
  2

  
	
  2.7.  Action Without Meeting

  	
  2

  
	
  2.8.  Notice by Electronic Transmission

  	
  3

  
	
  2.9.  Business Considered by Stockholders at
  Annual Meetings

  	
  3

  
	
  2.10.  Business Considered by Stockholders at
  Special Meetings

  	
  4

  
	
   

  	
   

  
	
  ARTICLE
  III  BOARD OF DIRECTORS

  	
  4

  
	
   

  	
   

  
	
  3.1.  Powers

  	
  4

  
	
  3.2.  Election of Directors

  	
  5

  
	
  3.3.  Compensation

  	
  5

  
	
  3.4.  Meetings and Quorum

  	
  5

  
	
  3.5.  Committees

  	
  6

  
	
  3.6.  Chairman of the Board

  	
  6

  
	
  3.7.  Meetings via Remote Communications

  	
  6

  
	
  3.8.  Action Without Meeting

  	
  6

  
	
   

  	
   

  
	
  ARTICLE
  IV  OFFICERS

  	
  6

  
	
   

  	
   

  
	
  4.1.  Titles and Election

  	
  6

  
	
  4.2.  Duties

  	
  7

  
	
  4.3.  Delegation of Authority

  	
  8

  
	
  4.4.  Compensation

  	
  8

  
	
   

  	
   

  
	
  ARTICLE
  V  RESIGNATIONS, VACANCIES AND REMOVALS

  	
  8

  
	
   

  	
   

  
	
  5.1.  Resignations

  	
  8

  
	
  5.2.  Vacancies

  	
  9

  
	
  5.3.  Removals

  	
  9

  
	
   

  	
   

  
	
  ARTICLE
  VI  CAPITAL STOCK

  	
  9

  
	
   

  	
   

  
	
  6.1.  Certificates of Stock

  	
  9

  

 

i

 

	
  6.2.  Transfer of Stock

  	
  9

  
	
  6.3.  Record Dates

  	
  10

  
	
  6.4.  Lost Certificates

  	
  10

  
	
   

  	
   

  
	
  ARTICLE
  VII  FISCAL YEAR, BANK DEPOSITS,
  CHECKS, ETC.

  	
  10

  
	
   

  	
   

  
	
  7.1.  Fiscal Year

  	
  10

  
	
  7.2.  Bank Deposit, Checks, Etc

  	
  10

  
	
   

  	
   

  
	
  ARTICLE
  VIII  BOOKS AND RECORDS

  	
  10

  
	
   

  	
   

  
	
  8.1.  Place of Keeping Books

  	
  10

  
	
  8.2.  Examination of Books

  	
  11

  
	
   

  	
   

  
	
  ARTICLE
  IX  NOTICES AND WAIVERS

  	
  11

  
	
   

  	
   

  
	
  9.1.  Requirements of Notice

  	
  11

  
	
  9.2.  Waivers

  	
  11

  
	
   

  	
   

  
	
  ARTICLE
  X  SEAL

  	
  11

  
	
   

  	
   

  
	
  ARTICLE
  XI  POWERS OF ATTORNEY

  	
  11

  
	
   

  	
   

  
	
  ARTICLE
  XII  INDEMNIFICATION

  	
  12

  
	
   

  	
   

  
	
  12.1.  Indemnification

  	
  12

  
	
  12.2.  Prepayment of Expenses

  	
  12

  
	
  12.3.  Insurance, Contracts and Funding

  	
  12

  
	
  12.4.  Indemnification Not Exclusive Right;
  Beneficiaries of Rights

  	
  13

  
	
  12.5.  Advancement of Expenses; Procedures;
  Presumptions and Effect of Certain Proceedings; Remedies

  	
  13

  
	
  12.6.  Severability

  	
  17

  
	
  12.7.  Indemnification of Employees Serving as
  Directors

  	
  17

  
	
  12.8.  Indemnification of Employees and Agents

  	
  17

  
	
   

  	
   

  
	
  ARTICLE
  XIII  AMENDMENTS

  	
  18

  

 

ii

 

AMENDED
AND RESTATED BYLAWS

of

HELIO, INC.

 

HELIO, Inc. hereby
certifies as follows:

 

1.             The original Bylaws
of HELIO, Inc. (formerly known as SK-EarthLink Management Corp.) were adopted
on March 24, 2005;

 

2.             The directors and holders
of all of the issued and outstanding shares of capital stock of HELIO, Inc.
entitled to vote on these Amended and Restated Bylaws, by unanimous written
consent in lieu of a meeting, adopted resolutions consenting to and approving these
Amended and Restated Bylaws;

 

4.             These Amended and
Restated Bylaws, having been adopted in accordance with the applicable
provisions of Section 109 of the General Corporation Law of Delaware and
Section 6.7 of HELIO, Inc.’s Amended and restated Certificate of Incorporation,
restates, integrates, supplements and further amends the original Bylaws; and

 

5.             The text of the Bylaws
of HELIO, Inc. is amended and restated in its entirety to read as follows:

 

ARTICLE I   OFFICES

 

SK-EarthLink Management Corp. (the “Corporation”)
shall at all times maintain a registered office in the State of Delaware and a
registered agent at that address but may have other offices located in or
outside of the State of Delaware as the Board of Directors may from time to
time determine.

 

ARTICLE II   STOCKHOLDERS’
MEETINGS

 

2.1.          Places of Meetings.  All meetings of stockholders shall be held at
such place or places in or outside of the State of Delaware as the Board of
Directors may from time to time determine or as may be designated in the notice
of meeting or waiver of notice thereof.

 

2.2.          Annual Meetings.  The annual meeting of stockholders for the
election of directors and the transaction of such other business as may
properly come before the meeting shall be held on the first Tuesday in May or
such other date within five (5) months after the end of each fiscal year of the
Corporation and at such time as may be designated from time to time by the
Board of Directors.  If the annual
meeting is not held as specified in the preceding sentence, it may be held as
soon thereafter as convenient and shall be called the annual meeting. 
Unless otherwise provided by law, the Corporation’s certification of
incorporation (as amended or restated from time to time, the “Certificate of
Incorporation”) or these Bylaws, written notice of the time and place of the
annual meeting shall be given by mail to each stockholder entitled to vote
thereat at the address of such stockholder as it appears on the records of the
Corporation, or by electronic transmission as provided in Section 2.8 of these
Bylaws, not less than ten (10) nor 

 

 

more than sixty (60)
days prior to the scheduled date thereof, unless such notice is waived as
provided in Article IX of these Bylaws.

 

2.3.          Special Meetings.  Special meetings of stockholders may be
called at any time by the Chairman of the Board of Directors or a majority of
the Board of Directors.  Unless otherwise
provided by law, the Certificate of Incorporation or these Bylaws, written
notice of the time, place and specific purposes of such meeting shall be given
by mail to each stockholder entitled to vote thereat at the address of such
stockholder as it appears on the records of the Corporation, or by electronic
transmission as provided in Section 2.8 of these Bylaws, not less than ten (10)
nor more than sixty (60) days prior to the scheduled date thereof, unless such
notice is waived as provided in Article IX of these Bylaws.

 

2.4.          Voting.  At all meetings of stockholders, each
stockholder entitled to vote on the record date, as determined under Article
VI, Section 6.3 of these Bylaws or, if not so determined, as prescribed under
the General Corporation Law of the State of Delaware (as amended from time to
time, the “DGCL”), shall be entitled to one vote for each share of stock
standing of record in the name of such stockholder, subject to the Certificate
of Incorporation, including any restrictions or qualifications set forth therein.

 

2.5.          Quorum.  At any meeting of stockholders, a majority of
the number of shares of stock outstanding and entitled to vote thereat (or a
majority of the number of shares of stock entitled to vote as a class or
series) present in person or by proxy, shall constitute a quorum, but a smaller
interest may adjourn any meeting from time to time, and the meeting may be held
as adjourned without further notice, subject to such limitations as may be
imposed under the DGCL, and provided further that once a quorum is
established at a meeting as set forth hereunder, the quorum may not otherwise
be eliminated during such meeting.  When
a quorum is present at any meeting, a majority of the number of shares of stock
entitled to vote present thereat shall decide any question brought before such
meeting unless the question is one upon which a different vote is required by
the DGCL, the Certificate of Incorporation or these Bylaws, in which case such
express provision shall govern.

 

2.6.          List of Stockholders.  At least ten (10) days before every meeting,
a complete list of the stockholders entitled to vote at the meeting, arranged
in alphabetical order and showing the address of and the number of shares
registered in the name of each stockholder, shall be prepared by the Secretary
or the transfer agent in charge of the stock ledger of the Corporation.  Such list shall be open to the examination of
any stockholder, for any purpose germane to the meeting at least ten (10) days
prior to the meeting (i) on a reasonably accessible electronic network,
provided that the information required to gain access to such list is provided
with the notice of meeting or (ii) during ordinary business hours at the
principal place of business of the Corporation. 
The list shall also be open to examination at the meeting as required by
applicable law.  The stock ledger shall
represent conclusive evidence as to who are the stockholders entitled to
examine such list or the books of the Corporation or to vote in person or by
proxy at such meeting.

 

2.7.          Action Without Meeting.  Unless otherwise restricted by the
Certificate of Incorporation, action required to be taken or which may be taken
at any annual meeting or special meeting of stockholders may be taken without a
meeting, without prior notice and 

 

2

 

without a vote, if a
consent or consents in writing, setting forth the action so taken, shall be
signed by all the holders of outstanding stock entitled to vote on such action,
and shall be delivered in the manner specified by law or by the Certificate of
Incorporation.

 

2.8.          Notice by Electronic
Transmission.  Without limiting the manner by which notice
otherwise may be given effectively to stockholders pursuant to the DGCL, the
Certificate of Incorporation or these Bylaws, any notice to stockholders given
by the Corporation under any provision of the DGCL, the Certificate of
Incorporation or these Bylaws shall be effective if given by a form of
electronic transmission consented to by the stockholder to whom the notice is
given.  Any such consent shall be
revocable by the stockholder by written notice to the Corporation.  Any such consent shall be deemed revoked if:

 

(i)            the
Corporation is unable to deliver by electronic transmission two (2) consecutive
notices given by the Corporation in accordance with such consent; and

 

(ii)           such
inability becomes known to the Secretary or an Assistant Secretary of the
Corporation or to the transfer agent of the Corporation, or other person
responsible for the giving of notice;

 

provided,
however, the inadvertent failure to treat such inability as a revocation shall
not invalidate any meeting or other action.

 

Any notice given pursuant to the preceding paragraph
shall be deemed given:

 

(i)            if by facsimile
telecommunication, when directed to a number at which the stockholder has
consented to receive notice;

 

(ii)           if by electronic mail,
when directed to an electronic mail address at which the stockholder has
consented to receive notice;

 

(iii)          if by a posting on an electronic
network together with separate notice to the stockholder of such specific
posting, upon the later of (A) such posting and (B) the giving of such separate
notice; and

 

(iv)          if by any other form of
electronic transmission, when directed to the stockholder.

 

An affidavit of the Secretary or an Assistant
Secretary of the Corporation or of the transfer agent of the Corporation, or
other agent of the Corporation that the notice has been given by a form of
electronic transmission shall, in the absence of fraud, be prima facie evidence
of the facts stated therein.

 

2.9.          Business Considered by
Stockholders at Annual Meetings.  The proposal of
business to be considered by stockholders may be made at an annual meeting by
the Board of Directors or a committee appointed by the Board of Directors, or
by any stockholder of record entitled to vote generally at such meeting;
provided, however, that any stockholder of record entitled to vote generally at
such meeting may bring such proposed business before all the stockholders for
consideration at the annual meeting only if such proposed business constitutes
a proper matter for stockholder action, and if written notice of such
stockholder’s intent to bring 

 

3

 

such proposed
business before all the stockholders for consideration at the annual meeting
has been given, either by personal delivery or by the United States mail,
postage prepaid, to the Secretary of the Corporation not later than ninety (90)
days in advance of the annual meeting of stockholders.  Each such notice shall set forth:

 

(i)            the
name and address of the stockholder of record who intends to bring such
proposed business before all the stockholders for consideration at the annual
meeting;

 

(ii)           a
representation that the stockholder is a holder of record of shares of the
Corporation entitled to vote at the annual meeting and intends to appear in
person or by proxy at the annual meeting to bring such proposed business before
all the stockholders for consideration;

 

(iii)          a brief description of the proposed business
to be brought before all the stockholders for consideration at the annual
meeting;

 

(iv)          the
text of the proposed business to be brought before all the stockholders for
consideration at the annual meeting (including but not limited to the text of
any resolutions to be brought before all the stockholders for consideration at
the annual meeting, or the language of any proposed amendments to the Bylaws of
the Corporation);

 

(v)           a
description of any material interest that the stockholder of record has in the
proposed business being brought before all the stockholders for consideration
at the annual meeting; and

 

(vi)          a
brief statement of the reason or reasons why such stockholder of record intends
to bring such proposed business before all the stockholders for consideration
at the annual meeting.

 

The Chairman of the meeting may refuse to allow both
consideration of such proposed business and/or a stockholder vote on such
proposed business if it was not brought in compliance with the foregoing
procedure.

 

If the corporation is a publicly-traded company, the
foregoing notice requirements shall be deemed satisfied by a stockholder of
record if the stockholder has notified the Corporation of his, her or its intention
to present a proposal at an annual meeting in compliance with Rule 14a-8 (or
any successor thereof) of the Securities Exchange Act of 1934, as amended, and
such stockholder’s proposal has been included in a proxy statement that has
been prepared by the Corporation to solicit proxies for such annual meeting.

 

2.10.        Business Considered by
Stockholders at Special Meetings.  The only business
conducted at a special meeting of stockholders shall be that business brought
before the meeting pursuant to the Corporation’s notice of meeting given in
accordance with these Bylaws.

 

ARTICLE III  BOARD OF DIRECTORS

 

3.1.          Powers.  The business and affairs of the Corporation
shall be carried on, by or under the direction of the Board of Directors, which
shall have all the powers authorized by the 

 

4

 

DGCL, subject to
such limitations as may be provided by the Certificate of Incorporation or
these Bylaws.

 

3.2.          Election of Directors.  Directors shall be elected as generally
described in the Certificate of Incorporation at each annual meeting of
stockholders.  Each director so elected
to serve until the election and qualification of his or her successor or until
his or her earlier death, resignation, retirement, disqualification or removal
from office.  Directors need not be
stockholders, nor need they be residents of the State of Delaware.

 

3.3.          Compensation.  The Board of Directors, or a committee
thereof, may from time to time by resolution authorize the payment of fees or
other compensation to the directors for services as such to the Corporation,
including, but not limited to, fees for serving as members of the Board of
Directors or any committee thereof and for attendance at meetings of the Board
of Directors or any committee thereof, and may determine the amount of such
fees and compensation.  Directors shall
in any event be paid their reasonable travel and other expenses for attendance
at all meetings of the Board or committees thereof.  Nothing herein contained shall be construed
to preclude any director from serving the Corporation in any other capacity and
receiving compensation therefor in amounts authorized or otherwise approved
from time to time by the Board of Directors or any committee thereof.

 

3.4.          Meetings and Quorum.  Meetings of the Board of Directors may be
held either in or outside of the State of Delaware.  A quorum shall be as defined in the
Certificate of Incorporation.

 

Meetings other than regular meetings may be called at
any time by the Chief Executive Officer or the Chairman of the Board of
Directors and must be called by the Chief Executive Officer upon the request
twenty-five percent (25%) or more of the members of the Board of Directors.

 

Notice of each meeting, other than a regular meeting
(unless required by the Board of Directors), shall be given to each director by
mailing the same to each director at his or her business address at least eight
days before the meeting or by delivering the same to him personally or by
telephone, telegraph, telecopier or other electronic transmission at least five
days before the meeting.  Notice by mail
shall be deemed to be given at the earlier of (a) receipt thereof, (b) one day
after it is deposited with an overnight courier of national reputation with
overnight service postage affixed thereon or (c) five days after it is
deposited in the United States mail with first-class postage affixed
thereon.  Notice to directors given by
telegraph, telecopier or other electronic transmission to the address, number,
email account or other reference supplied for the purpose of receiving such
communications shall be deemed given upon the earlier of (i) the actual
confirmation of such receipt by the director or (ii) the date and time the
Corporation receives confirmation that the notice was successfully sent by the
applicable means.  Personal and
telephonic notice shall be deemed given at such a time as such notice is
actually provided to the director.

 

Regular meetings of the Board of Directors may be held
without notice at such time and at such place as shall from time to time be
determined by the Board of Directors.

 

5

 

Notice of any meeting shall state the time and place
of such meeting, but need not state the purposes thereof unless otherwise
required by the DGCL, the Certificate of Incorporation, the Bylaws or by the
order of the Board of Directors.

 

3.5.          Committees.  The Board of Directors may, by resolution
passed by a majority of the entire Board of Directors, provide for committees
of two or more directors and shall elect the members thereof to serve at the
pleasure of the Board of Directors and may designate one of such members to act
as chairperson thereof.  The Board of
Directors may at any time change the membership of any committee, fill
vacancies in it, designate alternate members to replace any absent or
disqualified members at any meeting of such committee or dissolve it.

 

Each committee may determine its rules of procedure
and the notice to be given of its meetings (although in the absence of any
special notice procedure, the notice provisions of Section 3.4 hereof
shall govern), and it may appoint such other committees and assistants as it
shall from time to time deem necessary. 
A majority of the members of the each committee shall constitute a
quorum.

 

3.6.          Chairman
of the Board.  For so long as SK
Telecom Co. Ltd. (or a wholly-owned subsidiary thereof) holds a share of Class
B Common Stock of the Corporation, SK Telecom Co. Ltd. (or its wholly-owned
subsidiary) shall have the right to name the Chairman of the Board.  Otherwise, the Board of Directors may, at any
time, by resolution passed by a majority of the entire Board of Directors elect
a director to serve as the Chairman of the Board of Directors.  The Chairman of the Board of Directors shall
serve in such capacity until the next annual meeting of the Board of Directors
or until his successor is elected.  The
Chairman of the Board of Directors, when present, shall preside at all meetings
of the stockholders and of the Board of Directors and shall have such powers
and duties as may be conferred upon him by the Board of Directors.

 

3.7.          Meetings via Remote
Communications.  Any one or more members of the Board of
Directors or any committee thereof may participate in a meeting by means of a
conference telephone call or other communication equipment by means of which
all persons participating in the meeting can hear each other, and such
participation in a meeting shall constitute presence in person at such meeting.

 

3.8.          Action Without Meeting.  Unless otherwise restricted by the
Certificate of Incorporation or these Bylaws, any action required or permitted
to be taken at any meeting of the Board of Directors or any committee thereof
may be taken without a meeting if all members of the Board of Directors or such
committee, as the case may be, consent thereto in writing including by
electronic transmission, and the writing or writings or electronic transmission
or transmissions are filed with the minutes of proceedings of the Board of
Directors or such committee.  The filing
of such minutes shall be in paper form if the minutes are maintained in paper
form and shall be in electronic form if the minutes are maintained in
electronic form.

 

ARTICLE IV  OFFICERS

 

4.1.          Titles and Election.  The officers of the Corporation shall be the
Chief Executive Officer and the Secretary, each of whom shall initially be
elected as soon as convenient by the Board of Directors as described in these
Bylaws and as otherwise described in the Certificate of 

 

6

 

Incorporation.  The officers of the Corporation shall hold
office until their successors are chosen and qualify or until their earlier
resignation or removal.  Any officer
elected or appointed by the Board of Directors may be removed at any time, with
or without cause, as provided in the Certificate of Incorporation, or, not
applicable, by the affirmative vote of a majority of the Board of
Directors.  Any person may hold more than
one office if the duties can be adequately performed by the same person and to
the extent permitted by the DGCL.

 

Subject to the Certificate of Incorporation, the Board
of Directors, in its discretion, may also at any time elect or appoint one or
more Senior or Executive Vice Presidents, one or more Vice Presidents, a Chief
Operating Officer, a Chief Financial Officer, a Treasurer and one or more
Assistant Secretaries and Assistant Treasurers and such other officers as it
may deem advisable, each of whom shall hold office at the pleasure of the Board
of Directors, except as may otherwise be approved by the Board of Directors, or
until his or her earlier death, resignation, retirement, removal or other
termination of employment, and shall have such authority and shall perform such
duties as may be prescribed or determined from time to time by the Board of
Directors or in case of officers, if not prescribed or determined by the Board
of Directors, as the Chief Executive Officer or the then senior executive
officer may prescribe or determine.  The
Board of Directors may require any officer or other employee or agent to give
bond for the faithful performance of his or her duties in such form and with
such sureties as the Board may require.

 

4.2.          Duties.  Subject to such limitations and other
conditions as the Board of Directors may from time to time prescribe or
determine, the following officers shall have the following powers and duties:

 

(a)           Chief Executive Officer.  The Chief Executive Officer shall be charged
with general supervision of the management, business, affairs and policy of the
Corporation, shall be the senior executive of the Corporation, shall report
directly to the Board of Directors and shall have such other powers and perform
such other duties as the Board of Directors may prescribe from time to
time.  The Chief Executive Officer shall
(in the absence of the Chairman of the Board of Directors) preside at all
meetings of the stockholders and, if he is a director, of the Board of
Directors.

 

(b)           Vice Presidents.  The Vice President or Vice Presidents shall
perform such duties as may be assigned to them from time to time by the Board
of Directors or by the Chief Executive Officer if the Board of Directors does
not do so.  In the absence or disability
of the Chief Executive Officer, the Executive Vice Presidents in order of
seniority, or if none, the Senior Vice Presidents in order of seniority, or if
none, the Vice Presidents in order of seniority, may, unless otherwise
determined by the Board of Directors, exercise the powers and perform the
duties pertaining to the office of Chief Executive Officer, except that if one
or more Vice Presidents has been elected or appointed, the person holding such
office in order of seniority shall exercise the powers and perform the duties
of the office of Chief Executive Officer.

 

(c)           Secretary.  The Secretary or in his or her absence an
Assistant Secretary shall keep the minutes of all meetings of stockholders and
of the Board of Directors and any committee thereof, give and serve all
notices, attend to such correspondence as may be assigned to him or her, keep
in safe custody the seal of the Corporation, and affix such seal to all such 

 

7

 

instruments properly
executed as may require it, shall perform all of the duties commonly incident
to his or her office and shall have such other duties and powers as may be
prescribed or determined from time to time by the Board of Directors or by the
Chief Executive Officer if the Board of Directors does not do so.

 

(d)           Treasurer.  The Treasurer or in his or her absence an
Assistant Treasurer, subject to the order of the Board of Directors, shall have
the care and custody of the monies, funds, securities, valuable papers and
related documents of the Corporation (other than his or her own bond, if any,
which shall be in the custody of the Chief Executive Officer), and shall have,
under the supervision of the Board of Directors, all the powers and duties
commonly incident to his or her office. 
He or she shall deposit all funds of the Corporation in such bank or
banks, trust company or trust companies, or with such firm or firms doing a
banking business as may be designated by the Board of Directors or by the Chief
Executive Officer if the Board of Directors does not do so.  He or she may endorse for deposit or
collection all checks, notes and similar instruments payable to the Corporation
or to its order.  He or she shall keep
accurate books of account of the Corporation’s transactions, which shall be the
property of the Corporation, and together with all of the property of the
Corporation in his or her possession, shall be subject at all times to the
inspection and control of the Board of Directors.  The Treasurer shall be subject in every way
to the order of the Board of Directors, and shall render to the Board of
Directors and/or the Chief Executive Officer of the Corporation, whenever they
may require it, an account of all his or her transactions and of the financial
condition of the Corporation.  In
addition to the foregoing, the Treasurer shall have such duties as may be
prescribed or determined from time to time by the Board of Directors or by the
Chief Executive Officer if the Board of Directors does not do so.

 

(e)           Assistant Secretaries and Treasurers. Assistants to the Secretaries
and Treasurers may be appointed by the Chief Executive Officer or elected by
the Board of Directors and shall perform such duties and have such powers as
shall be delegated to them by the Chief Executive Officer or the Board of
Directors.

 

4.3.          Delegation of Authority.  The Board of Directors may at any time
delegate the powers and duties of any officer for the time being to any other
officer, director or employee.

 

4.4.          Compensation.  The compensation of the officers of the
Corporation shall be fixed by the Board of Directors or a committee thereof,
and the fact that any officer is a director shall not preclude such officer
from receiving compensation or from voting upon the resolution providing the
same.

 

ARTICLE V   RESIGNATIONS, VACANCIES AND REMOVALS

 

5.1.          Resignations.  Any director or officer may resign at any
time by giving written notice or by sending an electronic transmission thereof
to the Board of Directors, the Chairman of the Board of Directors, the Chief Executive
Officer or the Secretary.  Any such
resignation shall take effect at the time specified therein or, if the time be
not specified, upon receipt thereof; and unless otherwise specified therein or
in these Bylaws, the acceptance of any resignation shall not be necessary to
make it effective.

 

8

 

5.2.          Vacancies.

 

(a)           Directors.  Any vacancy in the Board of Directors caused
by reason of death, disqualification, incapacity, resignation, removal,
increase in the authorized number of directors or otherwise, shall be filled in
the manner provided in the Certificate of Incorporation.

 

(b)           Officers.  The Board of Directors may at any time or
from time to time fill any vacancy among the officers of the Corporation in the
manner provided in the Certificate of Incorporation.

 

5.3.          Removals.

 

(a)           Directors.  Except as may otherwise be provided by the
DGCL or the Certificate of Incorporation, any director or the entire Board of
Directors may be removed, with or without cause, by the affirmative vote of the
holders of a majority of all outstanding shares entitled to be voted at an
election of directors.

 

(b)           Officers.  Subject to the provisions of any validly
existing agreement, the Board of Directors may at any meeting remove from
office any officer, with or without cause, and may appoint a successor.

 

ARTICLE VI  CAPITAL STOCK

 

6.1.          Certificates of Stock.  Every stockholder shall be entitled to a
certificate or certificates for shares of the capital stock of the Corporation
in such form as may be prescribed or authorized by the Board of Directors, duly
numbered and setting forth the number and kind of shares represented
thereby.  Such certificates shall be signed by the Chairman of the Board,
the Chief Executive Officer or a Vice President and by the Treasurer or an
Assistant Treasurer or by the Secretary or an Assistant Secretary.  Any or
all of such signatures may be in facsimile.

 

In case any officer, transfer agent or registrar who
has signed or whose facsimile signature has been placed on a certificate has
ceased to be such officer, transfer agent or registrar before the certificate
has been issued, such certificate may nevertheless be issued and delivered by
the Corporation with the same effect as if he were such officer, transfer agent
or registrar at the date of issue.

 

6.2.          Transfer of Stock.  Shares of the capital stock of the
Corporation shall be transferable only upon the books of the Corporation upon
the surrender of the certificate or certificates properly assigned and endorsed
for transfer.  If the Corporation has a
transfer agent or registrar acting on its behalf, the signature of any officer
or representative thereof may be in facsimile.

 

The Board of Directors may appoint a transfer agent
and one or more co-transfer agents and a registrar and one or more co-registrars
and may make or authorize such agents to make all such rules and regulations
deemed expedient concerning the issue, transfer and registration of shares of
stock.

 

9

 

6.3.          Record Dates.  For the purpose of determining stockholders
entitled to notice of or to vote at any meeting of stockholders or any
adjournment thereof, or entitled to receive payment of any dividend, or to
express consent to corporate action in writing without a meeting, or in order
to make a determination of stockholders for any other proper purposes, the
Corporation’s stock transfer books shall not be closed, but a record date shall
be set by the Board of Directors and, upon that date, the Corporation or its
transfer agent shall take a record of the stockholders without actually closing
the stock transfer books.  Such record
date shall not precede the date upon which the resolution fixing the record
date is adopted by the Board of Directors, and such record date: (1) in the
case of determination of stockholders entitled to vote at any meeting of
stockholders or adjournment thereof, shall, unless otherwise required by law,
not be more than sixty (60) nor less than ten (10) days before the date of such
meeting; (2) in the case of determination of stockholders entitled to express
consent to corporate action in writing without a meeting, shall not be more
than ten (10) days from the date upon which the resolution fixing the record
date is adopted by the Board of Directors; and (3) in the case of any other
action, shall not be more than sixty (60) days prior to such other action.

 

If no such record date is fixed by the Board, the
record date shall be that prescribed by the DGCL.

 

A determination of stockholders of record entitled to
notice of or to vote at a meeting of stockholders shall apply to any
adjournment of the meeting; provided, however, that the Board of Directors may,
in their discretion, fix a new record date for the adjourned meeting.

 

6.4.          Lost Certificates.  In case of loss or mutilation or destruction
of a stock certificate, a duplicate certificate may be issued upon such terms
as may be determined or authorized by the Board of Directors, or by the Chief
Executive Officer or Secretary if the Board of Directors does not do so.

 

ARTICLE VII  FISCAL YEAR, BANK DEPOSITS, CHECKS, ETC.

 

7.1.          Fiscal Year.  The fiscal year of the Corporation shall be
the calendar year, unless otherwise fixed by resolution of the Board of
Directors.

 

7.2.          Bank Deposit, Checks, Etc.  The funds of the Corporation shall be
deposited in the name of the Corporation or of any division thereof in such
banks or trust companies in the United States or elsewhere as may be designated
from time to time by the Board of Directors or by such officer or officers as
the Board of Directors may authorize to make such designations.

 

All checks, drafts or other orders for the withdrawal
of funds from any bank account shall be signed by such person or persons as may
be designated from time to time by the Board of Directors.  The signatures on checks, drafts or other
orders for the withdrawal of funds may be in facsimile if authorized in the
designation.

 

ARTICLE VIII       BOOKS AND RECORDS

 

8.1.          Place of Keeping Books.  The books and records of the Corporation may
be kept within or outside of the State of Delaware and may be kept in paper
form or by means of any 

 

10

 

information storage
device that can be converted into clearly legible paper form within a
reasonable period of time.

 

8.2.          Examination of Books.  Except as may otherwise be provided by the
DGCL, the Certificate of Incorporation or these Bylaws, the Board of Directors
shall have the power to determine from time to time whether and to what extent
and at what times and places and under what conditions any of the accounts,
records and books of the Corporation (converted into paper form as necessary)
are to be open to the inspection of any stockholder.  No stockholder shall have any right to
inspect any account or book or document of the Corporation except as prescribed
by law or authorized by express resolution of the stockholders or of the Board
of Directors.

 

ARTICLE IX  NOTICES AND WAIVERS

 

9.1.          Requirements of Notice.  Whenever notice is required to be given by
statute, the Certificate of Incorporation or these Bylaws, except as otherwise
provided in Section 3.4 hereof, it shall not mean personal notice unless so
specified, but such notice may be given (i) in writing by depositing the same
in a post office, letter box or mail chute postage prepaid and addressed to the
person to whom such notice is directed at the address of such person on the
records of the Corporation, and such notice shall be deemed given at the time
when the same shall be thus mailed or (ii) if applicable, as provided in
Section 2.8 hereof.

 

9.2.          Waivers.  Any stockholder, director or officer may, in
writing or by electronic transmission, at any time waive any notice or other
formality required by law, the Certificate of Incorporation or these
Bylaws.  Such waiver of notice, whether
given before or after any meeting or action, shall be deemed equivalent to
notice.  Presence of a stockholder either
in person or by proxy at any meeting of stockholders and presence of any
director at any meeting of the Board of Directors shall constitute a waiver of
such notice as may be required by law, the Certificate of Incorporation or
these Bylaws, unless such presence is solely for the purpose of objecting to
the lack of notice and such objection is stated at the commencement of the
meeting.

 

ARTICLE X   SEAL

 

The corporate seal of the Corporation shall be in such
form as the Board of Directors shall determine from time to time and may
consist of a facsimile thereof or the word “SEAL” enclosed in parentheses or
brackets.  The corporate seal of the
Corporation shall not be necessary to validate or authenticate any instrument
duly executed by the Corporation or to render any such instrument enforceable
against the Corporation.

 

ARTICLE XI  POWERS OF ATTORNEY

 

The Board of Directors may authorize one or more of
the officers of the Corporation to execute powers of attorney delegating to
named representatives or agents power to represent or act on behalf of the
Corporation, with or without the power of substitution.

 

In the absence of any action by the Board of
Directors, any officer of the Corporation may execute, for and on behalf of the
Corporation, waivers of notice of meetings of stockholders 

 

11

 

and proxies, or may vote shares directly, for such
meetings of any company in which the Corporation may hold voting securities.

 

ARTICLE XII  INDEMNIFICATION

 

12.1.        Indemnification.  The Corporation, to
the fullest extent permitted or required by the DGCL or other applicable law,
as the same exists or may hereafter be amended, shall indemnify and hold
harmless any person who is or was a director or officer of the Corporation and
who is or was involved in any manner (including, without limitation, as a party
or a witness) or is threatened to be made so involved in any threatened,
pending or completed investigation, claim, action, suit or proceeding, whether
civil, criminal, administrative or investigative (including, without
limitation, any action, suit or proceedings by or in the right of the
Corporation to procure a judgment in its favor) (a “Proceeding”) by reason of
the fact that such person is or was a director or officer of the Corporation,
or, while a director or officer of the Corporation, is or was serving at the
request of the Corporation as a director, officer, employee or agent of another
corporation, partnership, limited liability company, joint venture, trust or
other entity or enterprise (including, without limitation, any employee benefit
plan) (a “Covered Entity”) against all liability and loss suffered and expenses
(including attorneys’ fees), actually and reasonably incurred by such person in
connection with such Proceeding; provided, however, that the foregoing shall
not apply (i) to a director or officer of the Corporation with respect to a
Proceeding that was commenced by such director or officer unless the proceeding
was commenced after either (x) the Indemnitee has obtained the approval thereof
by the Board, or (y) a Change in Control (as hereinafter defined in Section
12.5(e) has occurred), or (ii) under circumstances in which such
indemnification is prohibited by the DGCL or other applicable law. Any director
or officer of the Corporation entitled to indemnification as provided in this
Section 12.1 is hereinafter called an “Indemnitee”. Any right of an Indemnitee
to indemnification under this Article XII shall be a contract right.

 

12.2.        Prepayment of Expenses.  The Corporation, to
the fullest extent permitted or required by the DGCL or other applicable law,
shall pay the expenses incurred by an Indemnitee in connection with a
Proceeding, consistent with the provisions of the DGCL or other applicable law,
as the same exists or may hereafter be amended, and the other provisions of
this Article XII, provided, however, that, to the extent required by law, such
payment of expenses in advance of the final disposition of the proceeding shall
be made only upon receipt of an undertaking by the Indemnitee to repay all
amounts advanced if it should be ultimately determined that Indemnitee is not
entitled to be indemnified under this Article XII or otherwise.

 

12.3.        Insurance, Contracts and Funding.  The Corporation may purchase and maintain
insurance to protect itself and any director, officer, employee or agent of the
Corporation or of any Covered Entity against any expenses, judgments, fines and
amounts paid in settlement as specified in Section 12.1 or incurred by any such
director, officer, employee or agent in connection with any Proceeding referred
to in such Section, whether or not the Corporation would have the power to
indemnify such person against such expense, liability or loss under the DGCL.
The Corporation may enter into contracts with any director, officer, employee or
agent of the Corporation or of any Covered Entity providing indemnification and
advancement of expenses and may create a trust fund, grant a security interest
or use other means (including, without limitation, a letter of credit) to
ensure the payment of such amounts as may be necessary 

 

12

 

to effect
indemnification as provided or authorized in this Article XII, by statute, by
agreement or otherwise.

 

12.4.        Indemnification Not Exclusive Right; Beneficiaries of Rights.  The rights conferred on any Indemnitee by
this Article XII shall not be exclusive of any other rights to which an
Indemnitee may otherwise be entitled or provided under any statute, provision
of the certificate of incorporation or these bylaws, agreement, vote of
stockholders or Disinterested Directors (as hereinafter defined in Section
12.5(e)) or otherwise, and the provisions of this Article XII shall inure to
the benefit of the heirs and legal representatives of any Indemnitee under this
Article XII and shall be applicable to Proceedings commenced or continuing
after the adoption of this Article XII, whether arising from acts or omissions
occurring before or after such adoption.

 

12.5.        Advancement of Expenses; Procedures; Presumptions and Effect
of Certain Proceedings; Remedies.  In furtherance, but
not in limitation, of the foregoing provisions of this Article XII, the
following procedures, presumptions and remedies shall apply with respect to
advancement of expenses and the right to indemnification under this Article
XII:

 

(a)           Advancement of Expenses. All reasonable expenses
(including attorneys’ fees) incurred by or on behalf of the Indemnitee in
connection with any Proceeding shall be advanced to the Indemnitee by the
Corporation within 20 days after the receipt by the Corporation of a statement
or statements from the Indemnitee requesting such advance or advances from time
to time, whether prior to or after final disposition of such Proceeding. Such
statement or statements shall reasonably evidence the expenses incurred by the
Indemnitee and, shall include or be accompanied by an undertaking by or on
behalf of the Indemnitee to repay the amounts advanced if ultimately it should
be determined that the Indemnitee is not entitled to be indemnified against
such expenses pursuant to this Article XII. 
Notwithstanding the foregoing, unless a Change in Control has occurred,
the Corporation may refrain from, or suspend, payment of expenses in advance if
at any time before the making of the determination described in subparagraph
(b)(ii) of this Section 12.5, the Board or Independent Counsel (as hereinafter
defined in Section 12.5(e)), find by a preponderance of the evidence then
available that the Indemnitee has not met the required standards of conduct as
specified in the DGCL.

 

(b)           Procedure for Determination of
Entitlement to Indemnification.

 

(i)            To obtain
indemnification under this Article XII, an Indemnitee shall submit to the
Secretary a written request, including such documentation and information as is
reasonably available to the Indemnitee describing such indemnification claim or
loss as resulted from final disposition of the Proceeding and reasonably
necessary to determine whether and to what extent the Indemnitee is entitled to
indemnification (the “Supporting Documentation”). The Secretary shall, promptly
upon receipt of such a request for indemnification, advise the Board of
Directors in writing that the Indemnitee has requested indemnification.

 

(ii)           The Indemnitee’s
entitlement to indemnification under this Article XII shall be determined in
one of the following ways: (A) by a majority vote of the Disinterested
Directors (as hereinafter defined in Section 12.5(e)), whether or 

 

13

 

not they constitute a quorum of the Board of
Directors, or by a committee of Disinterested Directors designated by a
majority vote of the Disinterested Directors; (B) by a written opinion of
Independent Counsel (as hereinafter defined in Section 12.5(e)) if (x) a Change
in Control shall have occurred and the Indemnitee so requests, or (y) there are
no Disinterested Directors or a majority of such Disinterested Directors so
directs; or (C) as provided in Section 12.5(c).

 

(iii)          In the event the
determination of entitlement to indemnification is to be made by Independent
Counsel pursuant to Section 12.5(b)(ii), a majority of the Disinterested
Directors shall select the Independent Counsel, but only an Independent Counsel
to which the Indemnitee does not reasonably object; provided, however, that if
a Change in Control shall have occurred, the Indemnitee shall select such
Independent Counsel, but only an Independent Counsel to which a majority of the
Board does not reasonably object.

 

(c)           Presumptions and Effect of
Certain Proceedings.  Except as otherwise expressly provided in
this Article XII, the Indemnitee shall be presumed to be entitled to
indemnification under this Article XII upon submission of a request for
indemnification together with the Supporting Documentation in accordance with
Section 12.5(b)(i), and thereafter the Corporation shall have the burden of
proof to overcome that presumption in reaching a contrary determination. In any
event, if the person or persons empowered under Section 12.5(b) to determine entitlement
to indemnification shall not have been appointed or shall not have made a
determination within 45 days after receipt by the Corporation of the request
therefor, together with the Supporting Documentation, the Indemnitee shall be
deemed to be, and shall be, entitled to indemnification unless such
indemnification is prohibited by law. The termination of any Proceeding
described in Section 1 of this Article XII, or of any claim, issue or matter
therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a presumption that
the Indemnitee did not meet the required standards of conduct as specified in
the DGCL.

 

(d)           Remedies of Indemnitee.

 

(i)            In the event that a
determination is made pursuant to Section 12.5(b) that the Indemnitee is not
entitled to indemnification under this Article XII, (A) the Indemnitee shall be
entitled to seek an adjudication of entitlement to such indemnification either,
at the Indemnitee’s sole option, in (x) the Chancery Court of the State of
Delaware or any other court of competent jurisdiction or (y) an arbitration to
be conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association; (B) any such judicial proceeding or arbitration shall
be de novo and the Indemnitee shall not be prejudiced by reason of such adverse
determination; and (C) in any such judicial proceeding or arbitration, the
Corporation shall have the burden of proving by a preponderance of evidence
that the Indemnitee is not entitled to indemnification under this Article XII.

 

(ii)           If a determination
shall have been made or deemed to have been made, pursuant to Section 12.5(b)
or (c), that the Indemnitee is entitled to indemnification, the Corporation
shall be obligated to pay the amounts 

 

14

 

constituting such indemnification within five
business days after such determination has been made or deemed to have been
made.  The Corporation shall be
conclusively bound by such determination or deemed determination unless (A) the
Indemnitee misrepresented or failed to disclose in the request for
indemnification or in the Supporting Documentation a material fact that if not
misrepresented or failed to be disclosed would have established that the
Indemnitee has not met the required standards of conduct as specified by the
DGCL or (B) such indemnification is prohibited by law. In the event that (X)
advancement of expenses is not timely made pursuant to Section 12.5(a) or (Y)
payment of indemnification is not made within five business days after a
determination of entitlement to indemnification has been made or deemed to have
been made pursuant to Section 12.5(b) or (c), the Indemnitee shall be entitled
to seek judicial enforcement of the Corporation’s obligation to pay to the
Indemnitee such advancement of expenses or indemnification.

 

(iii)          The Corporation shall be
precluded from asserting in any judicial proceeding or arbitration commenced
pursuant to this Section 12.5(d) that the procedures and presumptions of this
Article XII are not valid, binding and enforceable and shall stipulate in any
such court or before any such arbitrator that the Corporation is bound by all
the provisions of this Article XII.

 

(iv)          In the event that the
Indemnitee, pursuant to this Section 12.5(d), seeks a judicial adjudication of
or an award in arbitration to enforce rights under, or to recover damages for
breach of, this Article XII, the Indemnitee shall be entitled to recover from
the Corporation, and shall be indemnified by the Corporation against, any
expenses actually and reasonably incurred by the Indemnitee if the Indemnitee
prevails in such judicial adjudication or arbitration. If it shall be
determined in such judicial adjudication or arbitration that the Indemnitee is
entitled to receive part but not all of the indemnification or advancement of
expenses sought, the expenses incurred by the Indemnitee in connection with
such judicial adjudication or arbitration shall be prorated accordingly.

 

(e)           Definitions.  For purposes of this Article XII:

 

(i)            “Authorized Officer”
means any one of the Chief Executive Officer, the President, or any Executive
Vice President.

 

(ii)           “Change in Control”
means the occurrence of any of the following: 
(i)(a) the Corporation consolidates with, or merges with or into,
another Person, (b) there is a merger, reorganization, consolidation, share
exchange or other transaction involving the Voting Stock of the Corporation,
(c) the Corporation sells, assigns, conveys, transfers, leases or otherwise
disposes of all or substantially all of the assets of the Corporation to any
Person, (d) any Person consolidates with, or merges with or into, the
Corporation, or (e) any similar event where with respect to each of the events
described in (a) through (e) the outstanding Voting Stock of the Corporation is
converted into or exchanged for 

 

15

 

cash, securities or other property, except
that none of the foregoing events will constitute a Change in Control where the
outstanding Voting Stock of the Corporation is converted into or exchanged for
Voting Stock of the surviving or transferee Person and the beneficial owners of
the Voting Stock of the Corporation immediately before such event own, directly
or indirectly, Voting Stock representing more than 50 percent of the aggregate
voting power of the Voting Stock of the surviving or transferee Person
immediately after such event; (ii) any transaction that results in any Person,
other than a trustee or other fiduciary holding securities under an employee
benefit plan of the Corporation, beneficially owning Voting Stock of the
Corporation representing, directly or indirectly, more than 50 percent of the
aggregate voting power of the Voting Stock of the Corporation; (iii) the
approval by the holders of the Voting Stock of the Corporation of any plan or
proposal for liquidation or dissolution of the Corporation; (iv) a majority of
the Directors on the Board are not Incumbent Directors; or (v) the consummation
of any other transaction that a majority of the Board of Directors, in its sole
and absolute discretion, determines constitutes a Change in Control.

 

(iii)          “Disinterested Director”
means a director of the Corporation who is not or was not a party to the
Proceeding in respect of which indemnification is sought by the Indemnitee.

 

(iv)          “Incumbent Directors”
means the individuals who, as of the date of adoption of these Bylaws, are
directors of the Corporation and any individual becoming a Director subsequent
to such date whose election, nomination for election by the Corporation’s
stockholders or appointment was approved by a majority of the Incumbent
Directors.

 

(v)           “Independent Counsel,”
with respect to a claim for indemnification as to any particular Proceeding,
means a law firm or a member of a law firm that neither presently is, nor in
the past five years has been, retained to represent: (x) the Corporation (other
than in a similar role with respect to others determinations of eligibility for
indemnification) or the Indemnitee in any matter material to either such party
or (y) any other party to the Proceeding giving rise to a claim for
indemnification under this Article XII. 
Notwithstanding the foregoing, the term “Independent Counsel” shall not
include any person who, under the applicable standards of professional conduct
then prevailing under the law of the State of Delaware, would have a conflict
of interest in representing either the Corporation or the Indemnitee in an
action to determine the Indemnitee’s rights under this Article XII.

 

(vi)          “Person” means any individual, corporation, partnership, limited
liability company, joint venture, incorporated or unincorporated association,
joint-stock company, trust, unincorporated organization or government or other
agency or political subdivision thereof or any other entity of any kind.

 

16

 

(vii)         “Voting Stock” means with
respect to any specified Person any class or classes of stock of the specified
Person pursuant to which the holders thereof have the general voting power
under ordinary circumstances to elect at least a majority of the Board of
Directors, managers or trustees of the specified Person.

 

12.6.        Severability.  If any provision or
provisions of this Article XII shall be held to be invalid, illegal or
unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Article XII (including,
without limitation, all portions of any paragraph of this Article XII
containing any such provision held to be invalid, illegal or unenforceable,
that are not themselves invalid, illegal or unenforceable) shall not in any way
be affected or impaired thereby; and (b) to the fullest extent possible, the
provisions of this Article XII (including, without limitation, all portions of
any paragraph of this Article XII containing any such provision held to be
invalid, illegal or unenforceable, that are not themselves invalid, illegal or
enforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

 

12.7.        Indemnification of Employees Serving as Directors.  The Corporation, to the fullest extent
provided in this Article XII with respect to the indemnification of directors
and officers of the Corporation, shall indemnify any person who is or was an
employee of the Corporation and who is or was involved in any manner
(including, without limitation, as a party or a witness) or is threatened to be
made so involved in any threatened, pending or completed Proceeding by reason
of the fact that such employee is or was serving (a) as a director of a
corporation in which the Corporation had at the time of such service, directly
or indirectly, a 50% or greater equity interest (a “Subsidiary Director”) or
(b) at the written request of an Authorized Officer, as a director of another
corporation in which the Corporation had at the time of such service, directly
or indirectly, a less than 50% equity interest (or no equity interest at all)
or in a capacity equivalent to that of a director for any partnership, joint
venture, trust or other enterprise (including, without limitation, any employee
benefit plan) in which the Corporation has an interest (a “Requested Employee”),
against all liability and loss suffered and expenses (including attorneys’
fees), actually and reasonably incurred by such Subsidiary Director or
Requested Employee in connection with such Proceeding. The Corporation may also
advance expenses incurred by any such Subsidiary Director or Requested Employee
in connection with any such Proceeding, consistent with the provisions of this
Article XII with respect to the advancement of expenses of directors and
officers of the Corporation.

 

12.8.        Indemnification of Employees and Agents.  Notwithstanding any other provision or
provisions of this Article XII, the Corporation, may indemnify any person other
than a director or officer of the Corporation, a Subsidiary Director or a
Requested Employee, who is or was an employee or agent of the Corporation and
who is or was involved in any manner (including, without limitation, as a party
or a witness) or is threatened to be made so involved in any threatened,
pending or completed Proceeding by reason of the fact that such person is or
was a director, officer, employee or agent of the Corporation or of a Covered
Entity against all liability and loss suffered and expenses (including
attorneys’ fees), actually and reasonably incurred by such person in connection
with such Proceeding. The Corporation may also advance expenses incurred by
such employee or agent in connection with any such Proceeding, consistent 

 

17

 

with the provisions
of this Article XII with respect to the advancement of expenses of directors
and officers of the Corporation.

 

ARTICLE XIII       AMENDMENTS

 

Except as provided otherwise by the laws of the State
of Delaware or the Certificate of Incorporation, these Bylaws may be amended or
repealed either:

 

(a)           At any meeting of stockholders at which a quorum is present
by vote of a majority of the number of shares of stock entitled to vote present
in person or by proxy at such meeting as provided in Article II of these
Bylaws; provided that the notice of such meeting of stockholders or waiver of
notice thereof contains a statement of the substance of the proposed amendment
or repeal; or

 

(b)           At any meeting of the Board of Directors by a majority vote
of the directors then in office, except for the provisions authorizing actions
by more than a majority of the directors in which case such provision may be
amended or repealed by such number of directors as are required at act pursuant
to such provision.

 

18

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