Document:

exv10w1

 

EXHIBIT 10.1

AGREEMENT

     This Agreement (this “Agreement”) is entered into as of March 5, 2003, by
and among Nextel Communications, Inc., a Delaware corporation (the “Company”),
Digital Radio, L.L.C., a Washington limited liability company (“Investor”) and
Craig O. McCaw (“Individual”).

     Unless the context otherwise requires, terms that are capitalized and not
otherwise defined in context have the meanings set forth in Article 5 of this
Agreement.

Recitals

     A.     On April 4, 1995, the Company, Investor and Individual entered into the
Securities Purchase Agreement (as amended through the date hereof, the “SPA”).

     B.     Pursuant to the SPA, on July 28, 1995, Investor purchased, among other
things, shares of Class A Convertible Redeemable Preferred Stock of the Company
(“Class A Preferred Stock”) and shares of Class B Convertible Preferred Stock
of the Company (“Class B Preferred Stock”).

     C.     Prior to the Effective Date of this Agreement, as the holder of the
Class A Preferred Shares, Investor had elected three representatives to the
Board of the Company (the “Investor Directors”).

     D.     Also on April 4, 1995, the Company and Eagle River, Inc., a Washington
corporation (“Eagle River”) entered into a Management Support Agreement (the
“Management Support Agreement”) and an Incentive Option Agreement (the
“Incentive Option”).

     E.     The Company, Investor and Individual desire to terminate certain
agreements and modify their relationships as provided in this Agreement.

     F.     The Incentive Option is not being modified and, in accordance with its
terms, will remain exercisable until April 4, 2005.

Agreement

1. Termination of Agreements

     1.1 Termination of SPA. On the Effective Date, the SPA will terminate.
From and after the Effective Date, the SPA will be void and have no further
force or effect.

     1.2 Termination of Management Support Agreement. On the Effective Date
and from and after effective the Effective Date, the Company and Eagle River
will terminate the Management Support Agreement.

2. Conditions to Effectiveness

     2.1 Effective Date. The Effective Date of this Agreement shall be the
date when all of the following actions have been taken (the “Effective Date”):

 

 

	 	a.	 	Investor shall have caused each of the Investor Directors to
submit his resignation as a director to the Company, which shall
provide that such resignations shall be effective upon acceptance by
action of a majority of the members of the Company’s Board
(excluding the Investor Directors).
	 
	 	b.	 	The Operations Committee shall have acted by the vote of a
majority of its Members at a meeting duly called, convened and held,
or by unanimous action of the Operations Committee, to terminate the
existence of the Operations Committee, and such action shall have
been approved and ratified by the Company’s Board.
	 
	 	c.	 	Investor as the holder of the all the issued and outstanding
shares of Class A Preferred Stock shall have delivered written
notice to the Company that the holder elects to convert all the
outstanding shares of Class A Preferred Stock into shares of Class
A Common Stock of the Company (“Class A Common Stock”).
	 
	 	d.	 	Investor as the holder of the issued and outstanding shares
of Class B Preferred Stock shall have surrendered certificates
together with instruments of transfer duly executed for all the
outstanding Class B Preferred Stock in exchange for 82 shares of
Class A Common Stock.

     2.2 Post-Effective Date Covenant. The Company, Investor and Individual
will each use its or his respective best efforts to cause each of the actions
contemplated by this Section 2.2 to occur as promptly as practicable after the
Effective Date.

	 	a.	 	The Directors of the Company shall elect J. Timothy Bryan to
serve the remainder of the term for the vacancy created by his
resignation until the annual stockholders meeting of the Company in
2003.
	 
	 	b.	 	Conditional upon receiving a Required Letter, the Directors
of the Company shall elect Individual to serve the remainder of the
term for the vacancy created by his resignation until the annual
stockholders meeting of the Company in 2004.
	 
	 	c.	 	Conditional upon receiving a Required Letter, the Directors
of the Company shall elect Dennis M. Weibling to serve the remainder
of the term for the vacancy created by his resignation until the
annual stockholders meeting of the Company in 2005.
	 
	 	d.	 	Contemporaneously with the actions contemplated in Section
2.2 a., b. and c. the Directors of the Company shall approve and the
Company shall execute indemnification agreements with Individual and
Messrs. Bryan and Weibling granting to them the same indemnification
granted to other non-management directors of the Company.

3. Sole Wireless Play

     3.1 Exclusive Wireless Participation. From and after the Effective Date,
neither Investor nor any Controlled Affiliate shall: (i) except as
contemplated by Section 3.2, directly or

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indirectly acquire or seek to acquire any license granted by the FCC for
two-way terrestrial-based mobile wireless communications systems, (ii) except
for an investment constituting not more than 3% of the outstanding common stock
of AT&T Corporation owned by Individual and for individual investments of not
more than $100,000, own any direct or indirect equity interest in a Person that
engages or proposes to engage in two-way terrestrial-based mobile wireless
communications systems in the region that includes any part of North America or
South America, (iii) serve as an officer, director, employee, manager or
consultant of or to a Person that engages or proposes to engage in two-way
terrestrial-based mobile wireless communications systems in the region that
includes any part of North America or South America unless in each such
instance the opportunity to acquire the FCC license, own the equity interest or
serve in that capacity (each a “Wireless Opportunity”) was first offered to the
Company pursuant to Section 3.2. Ownership by Investor or any Controlled
Affiliate of securities of Western Wireless, Inc. constituting less than three
percent (3%) of its outstanding capital stock and the purchase of additional
securities therein for aggregate consideration of not more than $1,000,000 in
the aggregate shall not be a violation of this Section 3.1 or Section 3.2. The
terms of this Section 3.1 shall continue to apply to Investor and all
Controlled Affiliates until February 13, 2004. As used in this Agreement,
“mobile” systems include all vehicular and other portable (hand held or
otherwise) systems.

     3.2 First Right to Wireless Opportunity. If Investor or any of the other
Controlled Affiliates becomes aware of a Wireless Opportunity, that Person
shall give notice to the Company under Section 6.2 of the Wireless Opportunity
and, to the extent known, of the circumstances surrounding the Wireless
Opportunity. As promptly as practicable following such notification, the
President shall report to the Board his recommendation concerning whether the
Company should pursue the Wireless Opportunity. Following the report of the
President, not more than 30 days after such notification, a majority of
Disinterested Directors will elect whether or not to pursue such Wireless
Opportunity. If the Company elects not to pursue such Wireless Opportunity,
Investor, Individual and their respective Affiliates shall be free to pursue
that Wireless Opportunity for its, his or their own account on terms no more
favorable to the other party than those offered to the Company. The Company,
Investor and Individual shall use their respective good faith best efforts to
create and put in place appropriate mechanisms to ensure reasonable and
effective protection for confidential information of Investor or Individual
disclosed pursuant to this Section 3.2.

     3.3 Confidential Information and Actual or Potential Conflicts. If
Investor, Individual or any of the other Controlled Affiliates pursued a
“wireless opportunity” under Section 8.3(b) of the SPA or pursues a Wireless
Opportunity for its or their own account as permitted by Section 3.2, the
Company, Investor and Individual shall use their respective good faith best
efforts to create and put in place appropriate mechanisms to ensure reasonable
and effective protection for confidential information of the Company and
otherwise to minimize the prospect of any apparent or actual conflict of
interest between pursuit of such Wireless Opportunity and the conduct of the
Company’s wireless communications businesses. The obligations of Investor and
Individual under the preceding sentence shall continue for so long as it or he,
or any of their respective Affiliates, equity holders, officers, directors,
managers, employees or nominees are or is proposed to be a Director or an
officer of the Company, and shall be in addition to, and not a limitation on or
in lieu of, any other obligations imposed on such Persons or entities pursuant
to applicable Law or fiduciary obligations.

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4. Representations and Warranties

     4.1 By Company. The Company hereby represents and warrants to Investor
and Individual that:

	 	a.	 	The Company is a corporation duly organized, validly existing
and in good standing under the laws of the state of Delaware and has
all requisite corporate or other power and authority to carry on its
business as now conducted, and to enter into and to perform this
agreement.
	 
	 	b.	 	The Company has taken all necessary corporate action to
authorize the execution and delivery and, when the actions necessary
to the Effective Date have occurred, the performance of this
Agreement. This Agreement has been duly executed and delivered by
the Company and constitutes a valid and binding agreement of the
Company enforceable against the Company in accordance with its
terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other similar laws of
general application which may affect the enforcement of creditors’
rights generally and by general equitable principles.
	 
	 	c.	 	To the best of the Company’s knowledge, it has complied with
all of its obligations and performed all of its duties under the SPA
to and including the Effective Date, and it is not aware of any
existing breach by Individual or Investor of their respective
obligations or duties under the SPA.

     4.2 By Investor. Investor hereby represents and warrants to the Company
that:

	 	a.	 	The Investor is a limited liability company duly organized,
validly existing and in good standing under the laws of the state of
Washington and has all requisite limited liability company or other
power and authority to carry on its business as now conducted, and
to enter into and to perform this agreement.
	 
	 	b.	 	The Investor has taken all necessary action to authorize the
execution and delivery and the performance of this Agreement. This
Agreement has been duly executed and delivered by the Investor and
constitutes a valid and binding agreement of the Investor
enforceable against the Investor in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws of general
application which may affect the enforcement of creditors’ rights
generally and by general equitable principles.
	 
	 	c.	 	To the best of the Investor’s knowledge, it has complied with
all of its obligations and performed all of its duties under the SPA
to and including the Effective Date, and it is not aware of any
existing breach by the Company of its obligations and duties under
the SPA.

     4.3 By Individual. Individual represents and warrants to the Company
that:

	 	a.	 	Individual is a resident of the State of Washington and is
authorized to execute, deliver and perform this Agreement without
the need to obtain the consent or

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	 	 	 	approval of any third party (other than any such consent or
approval already obtained). This Agreement has been duly executed
and delivered by Individual and constitutes a valid and binding
agreement of Individual enforceable against Individual in
accordance with its terms, except as may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other
similar laws of general application which may affect the
enforcement of creditors’ rights generally and by general equitable
principles.
	 
	 	b.	 	Individual Controls Eagle River and Eagle River has taken all
necessary corporate action to authorize the termination of the
Management Support Agreement.
	 
	 	c.	 	To the best of the Individual’s knowledge, he and his
Controlled Affiliates have complied with all of his and their
respective obligations and performed all of its duties under the SPA
to and including the Effective Date, and he is not aware of any
existing breach by the Company of its obligations and duties under
the SPA.

5. Definitions

5.1 Certain Definitions

     “Affiliate” means, as to any Person, another Person that directly or
indirectly through one or more intermediaries, Controls, or is Controlled
by, or is under common Control with, such Person. For the purposes of
this definition, “Control” when used with respect to any Person, means
the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise; the
terms “Controlling” and “Controlled” have meanings correlative to the
foregoing; provided, that the term “Controlled Affiliate” as used herein
includes Individual and any Affiliate of Individual that is, at the
relevant time, Controlled by Individual; and further provided, that the
Company and Investor shall not be deemed to be direct or indirect
Affiliates of each other.

     “Board” means the Board of the Company.

     “Directors” means any and all of the duly elected members of the
Board.

     “Disinterested Director” means with respect to any contract or
transaction between the Company and any other Person that is the subject
of any vote by the Board, members of the Board who would not be a party
to, or who would not have a financial interest in, such contract or
transaction (an “Interested Party”) and are not at the time of such vote
and are not expected to become following such vote either Directors of
the Company who are nominees of, or who are Affiliates of, such an
Interested Party or officers, directors, or employees of, and do not have
(and are not expected to receive) a financial interest in, such an
Interested Party. For purposes of this definition, no person would be
deemed not to be a Disinterested Director solely because such person is
the beneficial owner of any voting securities of the Company, but no
Director that is an Affiliate of Investor or of any of its Controlled
Affiliates shall be a Disinterested Director

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 for purposes of considering any Wireless Opportunity or any transaction
with Investor or any of its Affiliates.

     “FCC” means the Federal Communications Commission.

     “Governmental Authority” means any governmental or political
subdivision or department thereof, any governmental or regulatory body,
commission, board, bureau, agency or instrumentality, or any court or
arbitrator or alternative dispute resolution body, in each case whether
domestic or foreign, federal, state or local.

     “Law” means any domestic or foreign, federal, state or local law,
statute, ordinance, rule or regulation.

     “Person” means an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or
other, entity of whatever nature or a group, including without limitation
any pension, profit sharing or other benefit plan or trust.

     “Required Letter” means an undated resignation letter from the
individual being elected which resignation can be accepted by the Board
if the stockholders of the Company do not ratify his election at the next
annual meeting of the Company’s stockholders.

5.2 Other Definitional Provisions.

	 	a.	 	All terms defined in this Agreement have the defined meanings
when used in any certificate, report or other documents made or
delivered pursuant hereto or thereto, unless the context otherwise
requires.
	 
	 	b.	 	Terms defined in the singular have a comparable meaning when
used in the plural, and vice versa.
	 
	 	c.	 	As used herein, the neuter gender also denotes the masculine
and feminine, and the masculine gender also denotes the neuter and
feminine, where the context so permits.
	 
	 	d.	 	The words
“include,” “including” and
“or” mean without
limitation by reason of enumeration.

6. General

     6.1 Public Announcements. Except as required by Law, the exercise of
fiduciary duty or the policies or rules of any stock exchange (or the
NASDAQ-NMS) on which the Company’s securities are listed, the form and content
of all press releases or other public communications of any sort relating to
the subject matter of this Agreement, and the method of their release, or
publication thereof by any of the parties hereto or their respective
Affiliates, shall be subject to the prior approval of Investor and the Company,
which approval shall not be unreasonably withheld or delayed.

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     6.2 Notices. All notices, demands, requests, certificates or other
communications under this Agreement shall be in writing and shall be deemed to
have been duly given when (i) hand delivered, (ii) sent by facsimile
transmission or by tested or otherwise authenticated telex or cable, (iii) one
day after sent by commercial courier guaranteeing next business day delivery or
(iv) five days after posting in the United States mail having been sent by
registered or certified mail return receipt requested, addressed as follows:

	 	(i)	 	if to Company:
	 
	 	 	 	Nextel Communications, Inc.

2001 Edmund Halley Drive

Reston, VA 20191

Attention: Timothy M. Donahue, President

Facsimile: (703) 433-4352
	 
	 	 	 	with a copy to:
	 
	 	 	 	Nextel Communications, Inc.

2001 Edmund Halley Drive

Reston, VA 20191

Attention: Leonard J. Kennedy, General Counsel

Facsimile: (703) 433-4846
	 
	 	(ii)	 	if to Individual or Investor:
	 
	 	 	 	Digital Radio, L.L.C.

2320 Carillon Point

Kirtland, WA 94104-2675

Attention: Dennis Weibling

Facsimile: (206) 828-8060
	 
	 	 	 	with a copy to:
	 
	 	 	 	Digital Radio, L.L.C.

2320 Carillon Point

Kirtland, WA 94104-2675

Attention: J. Timothy Bryan

Facsimile: (206) 828-8060

Any communication delivered after business hours or on a Saturday, Sunday or
legal holiday at the place designated in such delivery shall be deemed for
purposes of computing any time period hereunder to have been delivered on the
next business day.

     6.3 Expenses. Each party shall bear its own expenses, including the fees
and expenses of any attorneys, accountants, investment bankers, brokers,
finders or other intermediaries or other Persons engaged by Investor or the
Company, incurred in connection with this Agreement or the other agreements
contemplated hereby.

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     6.4 Benefits; Assignment. The provisions of this Agreement shall be
binding upon, and inure to the benefit of, Investor and the Company and their
respective successors and permitted assigns. Nothing in this Agreement,
express or implied, is intended to confer upon any Person other than Investor
and the Company and their respective successors and permitted assigns any
rights, remedies or obligations under or by reason of this Agreement. None of
the rights or obligations of the Company hereunder may be assigned without the
consent of Investor. None of the rights of the Investor or Individual
hereunder may be assigned without the consent of the Company.

     6.5 Entire Agreement; Amendment and Waiver. This Agreement (which
includes the Exhibits and Annexes hereto) and the other documents to be
executed pursuant to Section 1.2 and the Required Letters to which either
Investor or any of its Controlled Affiliates or the Company is a party
constitute the entire agreement between Investor and its Controlled Affiliates,
on the one hand, and the Company, on the other hand, with respect to the
subject matter hereof and thereof and supersede all prior agreements and
understandings, both written and oral, between Investor and its Controlled
Affiliates, on the one hand, and the Company, on the other hand, with respect
to the subject matter hereof and thereof. This Agreement may not be amended,
supplemented or otherwise modified except by an instrument in writing signed by
each of the parties hereto. No waiver by either party hereto of any of the
provisions hereof shall be effective unless explicitly set forth in writing and
executed by such party. Any waiver by a party of a breach of this Agreement
shall not operate or be construed as a waiver of any subsequent breach.

     6.6 Headings. The headings in this Agreement are for convenience only and
shall not affect the construction hereof.

     6.7 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT GIVING
EFFECT TO ANY CONFLICTS OF LAW PRINCIPLES OF SUCH STATE.

     6.8 Remedies.

	 	a.	 	Each of Investor and its Controlled Affiliates, on the one
hand, and the Company, on the other hand, acknowledges that the
other party (or parties) would not have an adequate remedy at Law
for money damages in the event that any of the covenants or
agreements of such party in this Agreement was not performed in
accordance with its terms, and it is therefore agreed that each of
Investor and its Controlled Affiliates, on the one hand, and the
Company, on the other hand, in addition to and without limiting any
other remedy or right such party may have, shall have the right to
an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach and enforcing specifically
the terms and provisions hereof, and each of Investor and its
Controlled Affiliates, on the one hand, and the Company, on the
other hand, hereby waive any and all defenses such party may have on
the ground of lack of jurisdiction or competence of the court to
grant such an injunction or other equitable relief.

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	 	b.	 	All rights, powers and remedies provided under this Agreement
or otherwise available in respect hereof at Law or in equity shall
be cumulative and not alternative, and the exercise or beginning of
the exercise of any thereof by any party shall not preclude the
simultaneous or later exercise of any other such right, power or
remedy by such party.

     6.9 Severability. In the event that any provision of this Agreement is
deemed invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

     6.10 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and it shall not be
necessary in making proof of this Agreement to produce or account for more than
one such counterpart.

     6.11 Communications Act. Nothing in this Agreement is intended or shall
be construed to diminish or affect the control of the Company or any of its
subsidiaries over any FCC licenses held by the Company or such subsidiary in
any manner prohibited by the Communications Act of 1934, as amended, or the
rules and regulations issued by the FCC.

     6.12 Further Assurances. Each of Investor and Individual (and his
Controlled Affiliates, if appropriate) will cooperate with the Company in
effecting the amendment or termination of other documents (such as, without
limitation, the Company’s Certificate of Incorporation and By-Laws) that may,
in the Company’s reasonable judgment, be necessary or desirable to reflect,
confirm or conform to the matters and actions contemplated in this Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the day and year first above written.

	 	 	 
	 	 	
NEXTEL COMMUNICATIONS, INC
	  	 	 
	 	 	
By: /s/ Leonard J. Kennedy
	 	 	

	 	 	
Name: Leonard J. Kennedy
	 	 	
Title: Senior Vice President and General Counsel
	  	 	 
	 	 	
DIGITAL RADIO, L.L.C
	  	 	 
	 	 	
By: /s/ Craig O. McCaw
	 	 	

	 	 	
Name: Craig O. McCaw
	 	 	
Title: Chairman and Chief Executive Officer
	  	 	 
	 	 	
/s/ Craig O. McCaw
	 	 	

	 	 	
CRAIG O. McCAW, for his sole and separate estate

- 9 -<PAGE>
                                                                     EXHIBIT 4.3

                                                                Exhibit B
                                                                to
                                                                Placement Agency
                                                                Agreement

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "1933 ACT"), AND MAY BE SOLD OR TRANSFERRED ONLY IF REGISTERED PURSUANT TO
THE PROVISIONS THEREOF OR IF AN INSTITUTIONAL INVESTOR APPROVED AS AN EXEMPTION
FROM REGISTRATION IS AVAILABLE. BY ITS ACCEPTANCE OF THIS NOTE, THE PURCHASER
REPRESENTS AND AGREES THAT IT IS AN "ACCREDITED INVESTOR", AS DEFINED IN
REGULATION D PROMULGATED UNDER THE 1933 ACT ("INSTITUTIONAL ACCREDITED
INVESTOR"), AND THAT THIS NOTE IS BEING ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR FOR SALE IN CONNECTION WITH, THE PUBLIC DISTRIBUTION THEREOF AND
THAT ANY RESALE OF THIS NOTE WILL BE MADE ONLY (i) TO MERRILL LYNCH, PIERCE,
FENNER & SMITH INCORPORATED OR YELLOW CORPORATION OR (ii) THROUGH MERRILL LYNCH,
PIERCE, FENNER & SMITH INCORPORATED TO AN INSTITUTIONAL ACCREDITED INVESTOR OR
TO A "QUALIFIED INSTITUTIONAL BUYER", AS DEFINED IN RULE 144A IN A TRANSACTION
THAT MEETS THE REQUIREMENTS OF RULE 144A OR (iii) DIRECTLY TO AN INSTITUTIONAL
ACCREDITED INVESTOR APPROVED BY YELLOW CORPORATION OR (iv) THROUGH A DEALER TO A
QUALIFIED INSTITUTIONAL BUYER (OTHER THAN A TRANSACTION DESCRIBED IN CLAUSE
(ii)) WHICH MEETS THE REQUIREMENTS OF RULE 144A OR (v) DIRECTLY (i.e., NOT TO OR
THROUGH OR WITH THE APPROVAL OF YELLOW CORPORATION OR MERRILL LYNCH, PIERCE,
FENNER & SMITH INCORPORATED) TO A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
THAT MEETS THE REQUIREMENTS OF REGULATIONS UNDER THE 1933 ACT; PROVIDED THAT THE
AGREEMENT OF THE PURCHASER IS SUBJECT TO ANY REQUIREMENT OF LAW THAT THE
DISPOSITION OF THE PURCHASER'S PROPERTY SHALL AT ALL TIMES BE AND REMAIN WITHIN
ITS CONTROL. ANY TRANSFER DESCRIBED IN CLAUSES (iii), (iv) AND (v) REQUIRES THE
SUBMISSION TO THE ISSUING AND PAYING AGENT (AS DEFINED HEREIN) OF THE TRANSFER
FORM ON THE NOTE DULY COMPLETED OR A DULY COMPLETED TRANSFER INSTRUMENT
SUBSTANTIALLY IN THE FORM ATTACHED HERETO AS EXHIBIT A. ANY RESALE OF OTHER
TRANSFER OR ATTEMPTED RESALE OR OTHER TRANSFER OF ANY NOTE WHICH IS NOT MADE IN
COMPLIANCE WITH SUCH RESTRICTIONS WILL NOT BE RECOGNIZED BY YELLOW CORPORATION.

<PAGE>

                                      -2-

                               YELLOW CORPORATION

<TABLE>
<CAPTION>
                        Original
Interest Rate           Issue Date      Maturity Date           Principal Sum
-------------           ----------      -------------           -------------
<S>                     <C>             <C>                     <C>
------------%           ----------      -------------           -------------
</TABLE>

Interest Payment Dates:

Record Dates:

Redemption Provisions:

Additional Terms;

      Yellow Corporation, a Delaware corporation (the 'Company'), for value
received, hereby promises to pay to _________________________________________,
or registered assigns, the Principal Sum stated above on the Maturity Date
stated above and to pay interest (computed on the basis of a 360-day year of
twelve 30-day months) on the unpaid principal amount hereof, from the original
issue date of this Note until the Principal Sum hereof has been paid in full, at
the Interest Rate stated above, in consecutive semiannual payments on the 15th
day of April and October in each year (unless other interest payment dates are
specified above), and at maturity, commencing with the interest payment date
next succeeding the date hereof. Notwithstanding the foregoing, if the original
issue date of this Note is between a record date and the related interest
payment date, the first payment of interest on this Note will be due and payable
on the second interest payment date following the original issue date of this
Note. Unless other record dates are specified above, interest payable on any
interest payment date other than at maturity shall be payable to the person in
whose name this Note is registered at the close of business on the last day of
the month next preceding the month in which such interest payment is due (a
"record date"). Interest payable at maturity shall be payable to the person to
whom the principal of this Note shall be payable.

      Payments of principal and interest shall be made in such coin or currency
of the United States of America as at the time of payment is legal tender for
the payment of public and private debts. Payments of interest other than
interest payable at maturity will be made by draft mailed to the register holder
hereof at the address shown in the register maintained

<PAGE>

                                       -3-

by the Company at the office of Citibank N.A. (the "Issuing and Paying Agent")
for such purpose or, at the option of the registered holder hereof, to such
other place in the United States of America as the registered holder hereof
shall be designated to the Company in writing.

      The principal amount hereof and interest due at maturity will be paid upon
maturity in immediately available funds against presentation of this Note at the
office of the Issuing and Paying Agent in New York, New York (as of the date of
this Note, such office being located at 111 Wall Street, New York, New York),
or at such other office or agency of the Company as the Company shall designate
by written notice to the registered holder of this Note. The Company may treat
the person in whose name this Note is registered as the owner of such Note for
the purpose of receiving payments of principal and interest on this Note and for
all other purposes whatsoever. The Company shall not be obligated to register
and transfer of this Note made without compliance with the restrictions on
transfer set forth above.

      This Note has been issued by the Company pursuant to the Issuing and
Paying Agency Agreement dated as of April 22, 1993 between the Issuing and
Paying Agent and the Company (the "Issuing and Paying Agency Agreement").

      Unless otherwise specified above, this Note is not redeemable or subject
to voluntary prepayment.

      Liens. The Company will not, and will not permit any of its subsidiaries
to, pledge or otherwise subject to any lien any of its property or assets unless
this Note and all other outstanding Notes issued under the Issuing and Paying
Agency Agreement are secured by such pledge or lien equally and ratably with all
other obligations and indebtedness secured thereby so long as such other
obligations and indebtedness shall be so secured. The agreement of the Company
contained in this paragraph does not apply to:

            (i) liens existing on April 26, 1993;

            (ii) the pledge of any assets to secure any financing by the Company
      of the exporting of goods to or between, or the marketing thereof in,
      foreign countries, in connection with which the Company reserves the
      right, in accordance with customary and established banking practice, to
<PAGE>

                                      -4-

      deposit, or otherwise subject to a lien, cash, securities or receivables,
      for the purpose of securing banking accommodations or as the basis for the
      issuance of bankers' acceptances or in aid of other similar borrowing
      arrangements;

            (iii) the pledge of receivables payable in foreign currencies to
      secure borrowings in foreign countries;

            (iv) any deposit of assets of the Company or any subsidiary thereof
      with any surety company or clerk of any court, or in escrow, as collateral
      in connection with, or in lieu of, any bond on appeal by the Company or
      any subsidiary thereof from any judgment or decree against it, or in
      connection with other proceedings in actions at law or in equity by or
      against the Company or any subsidiary thereof or to exercise any privilege
      or license, performance of bids, contracts or leases, or to secure other
      public or statutory obligations of the Company or any subsidiary thereof
      or other similar deposits or pledges made in the ordinary course of
      business;

            (v) any lien or charge on any property, tangible or intangible, real
      or personal, existing at the time of acquisition thereof (whether through
      purchase or through merger or consolidation) or given to secure the
      payment of all or any part of the purchase price thereof or to secure any
      indebtedness incurred prior to, at the time of, or within sixty (60) days
      after, the acquisition thereof for the purpose of financing all or any
      part of the purchase price thereof, provided that such liens do not extend
      to any other property of the Company or any subsidiary thereof;

            (vi) liens on real property owned as of the date hereof, provided
      that the indebtedness which such liens secure does not exceed the fair
      market value of such real property;

            (vii) liens on personal property granted to secure indebtedness
      incurred in the ordinary course of business not exceeding $50,000,000 in
      the aggregate;

<PAGE>

                                       -5-

            (viii) mechanics', workmen's, repairmen's, materialmen's or
      carriers, liens; or other similar liens arising in the ordinary course of
      business; or deposits or pledges to obtain the release of any such liens;

            (ix) liens arising out of judgments or awards against the Company or
      any subsidiary thereof with respect to which the Company or any subsidiary
      thereof shall in good faith be prosecuting an appeal or proceedings for
      review; or liens incurred by the Company or any subsidiary thereof for the
      purpose of obtaining a stay or discharge in the course of any legal
      proceeding to which the Company or any subsidiary thereof is a party;

            (x) liens for taxes not yet subject to penalties for nonpayment or
      contested, or minor survey exceptions, or minor encumbrances, assessments
      or reservations of, or rights of others for, rights of way, sewers,
      electric lines, telegraph and telephone lines and other similar purposes,
      or zoning or other restrictions as to the use of real properties, which
      encumbrances, easements, reservations, rights and restrictions do not in
      the aggregate materially detract from the value of said properties or
      materially impair their use in the operation of the business of the
      Company or any subsidiary thereof owning the same; and

            (xi) any extension, renewal or replacement (or successive
      extensions, renewals or replacements), in whole or in part, of any lien,
      charge or pledge referred to in the foregoing clauses (i) to (vi)
      inclusive of this paragraph, provided, however, that the amount of any and
      all obligations and indebtedness secured thereby shall not exceed the
      amount thereof so secured immediately prior to the time of such extension,
      renewal or replacement and that such extension, renewal or replacement
      shall be limited to all or a part of the property which secured the charge
      or lien so extended, renewed or replaced (plus improvements on such
      property).

      Events of Default. The registered holder of this Note may, by notice in
writing to the Company, declare the

<PAGE>

                                       -6-

principal of such Note to be, and the same shall thereupon become, forthwith due
and payable, together with interest accrued thereon, upon the occurrence and
continuation of one or more of the following events of default:

            (i) default in the payment of any interest on this Note when due or
      in the payment of any interest on or principal of any other note issued by
      the Issuing and Paying Agent on behalf of the Company pursuant to the
      Issuing and Paying Agency Agreement when due, which default continues for
      at least thirty (30) calendar days;

            (ii) a judgment, decree or order by a court having jurisdiction
      shall have been entered adjudicating the Company or any subsidiary thereof
      bankrupt or insolvent, or approving as properly filed a petition seeking
      reorganization of the Company or any subsidiary thereof under the
      Bankruptcy Code or any other similar applicable Federal or state law, and
      such judgment, decree or order shall have continued undischarged and
      unstayed for a period of sixty (60) calendar days; or a judgment, decree
      or order of a court having jurisdiction for the appointment of a receiver
      or liquidator or trustee or assignee in bankruptcy or insolvency of the
      Company or any subsidiary thereof or the property of any thereof, or for
      the winding up or liquidation of the affairs of any thereof, shall have
      been entered, and such judgment, decree or order shall have continued
      undischarged and unstayed for a period of sixty (60) calendar days; or

            (iii) the Company shall institute proceedings to be adjudicated a
      voluntary bankrupt, or shall consent to the filing of a bankruptcy
      proceeding against it, or shall file a petition or answer or consent
      seeking reorganization under the Bankruptcy Code or any other similar
      applicable Federal or State law, or shall consent to the filing of any
      such petition, or shall consent to the appointment of a receiver or
      liquidator or trustee or assignee in bankruptcy or insolvency of it or its
      property, or shall make an assignment for the benefit of creditors, or
      shall admit in writing

<PAGE>

                                      -7-

      its inability to pay its debt generally as they become due; or

            (iv) the Company shall fail to perform or observe any other term,
      covenant or agreement contained in this Note to be performed or observed
      by it, and any such failure shall continue and remain unremedied for at
      least thirty (30) calendar days after notice has been given in writing to
      the Company by the holder thereof; or

            (v) the Company or any subsidiary thereof shall default in the
      payment when due (subject to any applicable grace period), whether at
      stated maturity or otherwise, of any principal of or interest on
      (howsoever designated) any indebtedness for borrowed money of, or
      guaranteed by, the Company or any subsidiary thereof (except any such
      indebtedness of any subsidiary of the Company to the Company or to any
      other such subsidiary thereof) in the aggregate principal amount of at
      least $500,000, whether such indebtedness now exists or shall hereafter be
      created.

            Defeasance. If, at or prior to the maturity of this Note, the
Company shall deposit with the Issuing and Paying Agent, in trust for the
benefit of the holder hereof, either

            (a) cash sufficient to pay the principal of and interest, if any, on
      this Note as and when the same become due and payable, or

            (b) such amount of U.S. Government Securities as defined in the
      Issuing and Paying Agency Agreement) as will together with the income to
      accrue thereon without consideration of any reinvestment thereof be
      sufficient to pay the principal of and interest, if any, on this Note as
      and when the same become due and payable,

then in such case, the Company shall be deemed to have satisfied and discharged
this Note.

            Notices. All notices to the Company under this Note shall be in
writing and addressed to the Company at 10777 Barkley Avenue, Overland Park,
Kansas 66211-1162, Attention: Vice President and Treasurer or to such other
address of the

<PAGE>

                                       -8-

Company as the Company may notify to the registered holder of this Note.

<PAGE>

                                       -9-

      This Note shall be governed by the laws of the State of New York.

                                                     YELLOW CORPORATION

                                                     By______________________
                                                            [Name]
                                                            [Title]

Countersigned for authentication
only on ____________, 199_:

CITIBANK, N.A.
as ISSUING AND PAYING AGENT

By._________________________________

            This Note is not valid for any purpose unless manually countersigned
by Citibank, N.A., as Issuing and Paying Agent.

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