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Exhibit 4.3    
    

EXECUTION COPY  

 $120,000,000  

 MCLEODUSA INCORPORATED  

 101/2% Senior Second Secured Notes due 2011  

 REGISTRATION RIGHTS AGREEMENT  

September 28,
2006 

JEFFERIES &
COMPANY, INC.

520 Madison Avenue

12th Floor

New York, New York 10022 

Ladies
and Gentlemen: 

        McLeodUSA
Incorporated, a Delaware corporation (the "Company"), is issuing and selling to Jefferies & Company, Inc. (the
"Initial Purchaser"), upon the terms set forth in the Purchase Agreement, dated as of September 19, 2006, by and among the Company, the
guarantors named therein and the Initial Purchaser (the "Purchase Agreement"), $120,000,000 aggregate principal amount at maturity of
101/2% Senior Second Secured Notes due 2011 issued by the Company (each, together with the related guarantees, a "Note" and collectively,
the "Notes"). As an inducement to the Initial Purchaser to enter into the Purchase Agreement, the Company and the Guarantors (as defined below) agree
with the Initial Purchaser, for the benefit of the Holders (as defined below) of the Notes (including, without limitation, the Initial Purchaser), as follows: 

1.    Definitions    

        Capitalized
terms that are used herein without definition and are defined in the Purchase Agreement shall have the respective meanings ascribed to them in the Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings: 

        Additional Interest:    See Section 4(a). 

        Advice:    See Section 6(v). 

        Agreement:    This Registration Rights Agreement, dated as of the Issue Date, among the Company, the Guarantors party hereto and
the Initial Purchaser. 

        Applicable Period:    See Section 2(e). 

        Blackout Period:    See Section 3(e). 

        Business Day: A day that is not a Saturday, a Sunday or a day on which banking institutions in the City of New York are authorized or
required by law or executive order to be closed. 

        Company:    See the introductory paragraph to this Agreement. 

        Day:    Unless otherwise expressly provided, a calendar day. 

        Effectiveness Date:    The 270th day after the Issue Date. 

        Effectiveness Period:    See Section 3(a). 

        Event Date:    See Section 4(b). 

 

        Exchange Act:    The Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder. 

        Exchange Notes:    Senior Secured Notes due 2011 of the Company registered under the Securities Act, identical in all material
respects to the Notes, including the guarantees endorsed thereon, except for restrictive legends and additional interest provisions. 

        Exchange Offer:    See Section 2(a). 

        Exchange Registration Statement:    See Section 2(a). 

        Filing Date:    The 180th day after the Issue Date. 

        Guarantors:    Each subsidiary of the Company that guarantees the obligations of the Company under the Notes and the Indenture. 

        Holder:    Any registered holder of Registrable Notes. 

        Indemnified Party:    See Section 8(c). 

        Indemnifying Party:    See Section 8(c). 

        Indenture:    The Indenture, dated as of the Issue Date, among the Company, the Guarantors and U.S. Bank National Association,
as trustee, pursuant to which the Notes are being issued, as amended or supplemented from time to time in accordance with the terms thereof. 

        Initial Purchaser:    See the introductory paragraph to this Agreement. 

        Initial Shelf Registration Statement:    See Section 3(a). 

        Inspectors:    See Section 6(o). 

        Issue Date:    September 28, 2006. 

        Lien:    Has the meaning set forth in the Indenture. 

        Losses:    See Section 8(a). 

        NASD:    National Association of Securities Dealers, Inc. 

        Notes:    See the introductory paragraph to this Agreement. 

        Participating Broker-Dealer:    See Section 2(e). 

        Person:    An individual, trustee, corporation, partnership, limited liability company, joint stock company, trust,
unincorporated association, union, business association, firm, government or agency or political subdivision thereof, or other legal entity. 

        Private Exchange:    See Section 2(f). 

        Private Exchange Notes:    See Section 2(f). 

        Prospectus:    The prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Notes covered by such Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

        Purchase Agreement:    See the introductory paragraph to this Agreement. 

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        Records:    See Section 6(o). 

        Registrable Notes:    Notes, Private Exchange Notes and Exchange Notes received in the Exchange Offer, in each case, that may
not be sold or transferred (i) without restriction under federal or state securities laws or (ii) pursuant to paragraph (k) of Rule 144. 

        Registration Statement:    Any registration statement of the Company and the Guarantors filed with the SEC under the Securities
Act (including, but not limited to, the Exchange Registration Statement, the Shelf Registration Statement and any Subsequent Shelf Registration Statement) that covers any of the Registrable Notes
pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all
material incorporated by reference or deemed to be incorporated by reference in such registration statement. 

        Rule 144:    Rule 144 promulgated under the Securities Act, as such Rule may be amended from time to time, or any
similar rule (other than Rule 144A) or regulation hereafter adopted by the SEC providing for offers and sales of securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer or such securities being free of the registration and prospectus delivery requirements of the Securities Act. 

        Rule 144A:    Rule 144A promulgated under the Securities Act, as such Rule may be amended from time to time, or
any similar rule (other than Rule 144) or regulation hereafter adopted by the SEC. 

        Rule 415:    Rule 415 promulgated under the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC. 

        Rule 430A:    Rule 430A promulgated under the Securities Act, as such Rule may be amended from time to time, or
any similar rule or regulation hereafter adopted by the SEC. 

        SEC:    The Securities and Exchange Commission. 

        Securities:    The Notes, the Exchange Notes and the Private Exchange Notes. 

        Securities Act:    The Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        Shelf Notice:    See Section 2(i). 

        Shelf Registration Statement:    See Section 3(b). 

        Subsequent Shelf Registration Statement:    See Section 3(b). 

        TIA:    The Trust Indenture Act of 1939, as amended. 

        Trustee:    The trustee under the Indenture and, if existent, the trustee under any indenture governing the Exchange Notes and
Private Exchange Notes (if any). 

        Underwritten Registration or Underwritten Offering:    A registration in which securities of the Company are sold to an
underwriter for reoffering to the public. 

2.    Exchange Offer    

	(a)
	Unless
the Exchange Offer would not be permitted by applicable laws or a policy of the SEC, the Company shall (and shall cause each Guarantor to) (i) prepare and file with the
SEC promptly after the date hereof, but in no event later than the Filing Date, a registration statement (the "Exchange Registration Statement") on an
appropriate registration form under the Securities Act with respect to an offer (the "Exchange Offer") to the Holders of Notes to issue and deliver to
such Holders, in exchange for the Notes, a like principal amount at 

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maturity
of Exchange Notes, (ii) use its reasonable best efforts to cause the Exchange Registration Statement to become effective as promptly as practicable after the filing thereof, but in no
event later than the Effectiveness Date, (iii) use its reasonable best efforts to keep the Exchange Registration Statement effective until the consummation of the Exchange Offer in accordance
with its terms and (iv) commence the Exchange Offer and use its reasonable best efforts to issue on or prior to 30 Business Days after the Effectiveness Date, Exchange Notes in exchange for all
Notes tendered prior thereto in the Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate applicable law or any applicable
interpretation of the staff of the SEC. 

	(b)
	The
Exchange Notes and the Private Exchange Notes shall be issued under, and entitled to the benefits of the Indenture or a trust indenture that is identical to the Indenture (other
than such changes as are necessary to comply with any requirements of the SEC to effect or maintain the qualifications thereof under the TIA) which in either case will provide that (i) the
Exchange Notes will not be subject to the transfer restrictions or additional interest provisions set forth in the Indenture, (ii) the Private Exchange Notes will be subject to the transfer
restrictions set forth in the Indenture and (iii) the Exchange Notes, the Private Exchange Notes and the Notes, if any, will be deemed one class of security (subject to the provisions of the
Indenture) and entitled to participate in all the security granted by the Company pursuant to the Collateral Agreements and in any Guarantee (as such terms are defined in the Indenture) on an equal
and ratable basis.

	(c)
	Interest
on the Exchange Notes and Private Exchange Notes will accrue from (i) the later of (x) the last interest payment date on which interest was paid on the Notes
surrendered in exchange therefor or (y) if the Note is surrendered for exchange on a date in a period which includes the record date for an interest payment date to occur on or after the date
of such exchange and as to which interest will be paid, the date of such interest payment date or (ii) if no interest has been paid on the Notes, from the Issue Date. Each Exchange Note and
Private Exchange Note shall bear interest at the rate set forth thereon; provided, that interest with respect to the period prior to the issuance
thereof shall accrue at the rate or rates borne by the Notes from time to time during such period.

	(d)
	The
Company may require each Holder as a condition to participation in the Exchange Offer to represent to the Company that at the time of the consummation of the Exchange Offer,
(i) any Exchange Notes received by such Holder will be acquired in the ordinary course of its business, (ii) at the time of commencement and consummation of the Exchange Offer such
Holder has not entered into any arrangement or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Notes in violation of the
provisions of the Securities Act, (iii) such Holder is not an "affiliate" (as defined in Rule 405 of the Securities Act) of the Company or if such Holder is an affiliate such Holder will
comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not a broker-dealer, that it is not engaged in, and does
not intend to engage in, the distribution of the Exchange Notes and (v) if such Holder is a Participating Broker-Dealer that will receive Exchange Notes for its own account in exchange for
Notes that were acquired as a result of market-making or other trading activities, that it will deliver a Prospectus in connection with any resale of the Exchange Notes.

	(e)
	The
Company shall (and shall cause each Guarantor to) include within the Prospectus contained in the Exchange Registration Statement a section entitled "Plan of Distribution" which
shall contain all of the information that the SEC may require with respect to the potential "underwriter" status of any broker-dealer that is the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act) of Exchange Notes received by such broker-dealer in the 

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Exchange
Offer for its own account in exchange for Notes that were acquired by it as a result of market-making activities or other trading activities (a "Participating
Broker-Dealer"), whether such positions or policies have been publicly disseminated by the staff of the SEC or such positions or policies, in the judgment of the Initial
Purchaser, represent the prevailing views of the staff of the SEC. Such "Plan of Distribution" section shall also allow, to the extent permitted by applicable policies and regulations of the SEC, the
use of the Prospectus by all Persons subject to the prospectus delivery requirements of the Securities Act, including, to the extent so permitted, all Participating Broker-Dealers, and include a
statement describing the manner in which Participating Broker-Dealers may resell the Exchange Notes. The Company shall use its reasonable best efforts to keep the Exchange Registration Statement
effective and to amend and supplement the Prospectus contained therein, in order to permit such Prospectus to be lawfully delivered by all Persons subject to the prospectus delivery requirements of
the Securities Act for such period of time as such Persons must comply with such requirements in order to resell the Exchange Notes (the "Applicable
Period"). 

	(f)
	If,
upon consummation of the Exchange Offer, the Initial Purchaser holds any Notes acquired by it and having the status of an unsold allotment in the initial distribution, the Company
(upon the written request from the Initial Purchaser) shall, simultaneously with the delivery of the Exchange Notes pursuant to the Exchange Offer, issue and deliver to the Initial Purchaser in
exchange (the "Private Exchange") for the Notes held by the Initial Purchaser, a like principal amount at maturity of Senior Secured Notes (issued under
the same Indenture as the Exchange Notes) that are identical in all material respects to the Exchange Notes except for the existence of restrictions on transfer thereof under the Securities Act and
securities laws of the several states of the United States (the "Private Exchange Notes"). The Private Exchange Notes shall bear the same CUSIP number
as the Exchange Notes.

	(g)
	In
connection with the Exchange Offer, the Company shall (and shall cause each Guarantor to):

	(i)
	mail
to each Holder a copy of the Prospectus forming part of the Exchange Registration Statement, together with an appropriate letter of transmittal (substantially in
the form attached as an exhibit to the Exchange Registration Statement) and any related documents;

	(ii)
	keep
the Exchange Offer open for not less than 20 Business Days (or longer if required by applicable law) after the date notice thereof is mailed to the Holders;

	(iii)
	utilize
the services of a depository for the Exchange Offer with an address in the Borough of Manhattan, The City of New York, which may be the Trustee or an affiliate
thereof;

	(iv)
	permit
Holders to withdraw tendered Registrable Notes at any time prior to the close of business, New York time, on the last Business Day on which the Exchange Offer
shall remain open; and

	(v)
	otherwise
comply with all applicable laws.

	(h)
	As
soon as practicable after the close of the Exchange Offer or the Private Exchange, as the case may be, the Company shall (and shall cause each Guarantor to):

	(i)
	accept
for exchange all Registrable Notes validly tendered and not withdrawn pursuant to the Exchange Offer or the Private Exchange, as the case may be;

	(ii)
	deliver
to the Trustee for cancellation all Registrable Notes so accepted for exchange; and

	(iii)
	cause
the Trustee to authenticate and deliver promptly to each Holder tendering such Registrable Notes, Exchange Notes or Private Exchange Notes, as the case may be,
equal in principal amount at maturity to the Notes of such Holder so accepted for exchange. 

5

 

	(i)
	If,
(i) any change in law or in applicable interpretations thereof by the staff of the SEC would not permit the consummation of the Exchange Offer, (ii) for any other
reason the Exchange Registration Statement is not declared effective on or prior to the Effectiveness Date or the Exchange Offer is not consummated within 30 Business Days after the Effectiveness
Date, (iii) the Initial Purchaser so requests with respect to the Notes (or the Private Exchange Notes) not eligible to be exchanged for Exchange Notes in the Exchange Offer and held by it
following consummation of the Exchange Offer, or (iv) in the case of (A) any Holder not permitted to participate in the Exchange Offer or (B) any Holder participating in the
Exchange Offer that receives Exchange Notes that may not be sold or transferred without restriction under state and federal securities laws (other than due solely to the status of such Holder as an
affiliate of the Company within the meaning of the Securities Act) and, in either case contemplated by this clause (iv), such Holder notifies the
Company within six months of consummation of the Exchange Offer, then in each case the Company shall promptly (and in any event within five Business Days of such notification) deliver to the Holders
and the Trustee written notice thereof (the "Shelf Notice") and shall as promptly as practicable and at its sole expense thereafter file an Initial
Shelf Registration Statement pursuant to Section 3. 

3.    Shelf Registration    

        If
a Shelf Notice is delivered pursuant to Section 2(i), then this Section 3
shall apply to all Registrable Notes. Otherwise, upon consummation of the Exchange Offer in accordance with Section 2, the provisions of this  Section 3 shall apply solely with respect to (i) Notes held by any Holder thereof not permitted to participate in the Exchange Offer,
(ii) Private Exchange Notes, and (iii) Exchange Notes that are not freely transferable as contemplated by Section 2(i)(iv) hereof,  provided
in each case that the relevant Holder has duly notified the Company within six months of the Exchange Offer as required by  Section 2(i)(iv). 

	(a)
	Initial Shelf Registration.    The Company shall (and shall cause each Guarantor to), as promptly as practicable, file with
the SEC a Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 covering all of the Registrable Notes (the "Initial Shelf
Registration Statement") within 30 days of the delivery of the Shelf Notice and shall (and shall cause each Guarantor to) use its best efforts to cause such Initial
Shelf Registration Statement to be declared effective under the Securities Act as promptly as practicable thereafter (but in no event more than 90 days after delivery of the Shelf Notice);  provided, however,
 that if the Company (and each Guarantor) has not yet filed an Exchange Registration Statement, the Company shall file (and shall
cause each Guarantor to file) with the SEC the Initial Shelf Registration Statement on or prior to the Filing Date and shall use its reasonable best efforts to cause such Initial Shelf Registration
Statement to be declared effective under the Securities Act on or prior to the Effectiveness Date. The Initial Shelf Registration Statement shall be on Form S-l or another
appropriate form permitting registration of such Registrable Notes for resale by Holders in the manner or manners reasonably designated by them (including, without limitation, Underwritten Offerings).
The Company shall (and shall cause each Guarantor to) use its reasonable best efforts to keep the Initial Shelf Registration Statement continuously effective under the Securities Act until date which
is two years from the Issue Date (the "Effectiveness Period"), or such shorter period ending when (i) all Registrable Notes covered by the
Initial Shelf Registration Statement have been sold in the manner set forth and as contemplated in the Initial Shelf Registration Statement, (ii) a Subsequent Shelf Registration Statement (as
defined below) covering all of the Registrable Notes covered by and not sold under the Initial Shelf Registration Statement or an earlier Subsequent Shelf Registration Statement has been declared
effective under the Securities Act, (iii) such Registrable Notes are eligible for resale pursuant to Rule 144(k) under the Securities Act or (iv) there cease to be any outstanding
Registrable Notes. 

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	(b)
	Subsequent Shelf Registrations.    If the Initial Shelf Registration Statement or any Subsequent Shelf Registration Statement
ceases to be effective for any reason at any time during the Effectiveness Period (other than because of the sale of all of the securities registered thereunder), the Company shall (and shall cause
each Guarantor to) use its reasonable best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within 30 days of such cessation of
effectiveness amend such Shelf Registration Statement in a manner designed to obtain the withdrawal of the order suspending the effectiveness thereof, or file (and cause each Guarantor to file) an
additional "shelf" registration statement pursuant to Rule 415 covering all of the Registrable Notes covered by and not sold under the Initial Registration Statement or any earlier Registration
Statement (a "Subsequent Shelf Registration Statement"). If a Subsequent Shelf Registration Statement is filed, the Company shall (and shall cause each
Guarantor to) use its reasonable best efforts to cause the Subsequent Shelf Registration Statement to be declared effective as soon as practicable after such filing and to keep such Subsequent Shelf
Registration Statement continuously effective for a period equal to the number of days in the Effectiveness Period less the aggregate number of days during which the Initial Shelf Registration
Statement or any Subsequent Shelf Registration Statement was previously continuously effective. As used herein the term "Shelf Registration Statement"
means the Initial Shelf Registration Statement and any Subsequent Shelf Registration Statements.

	(c)
	Supplements and Amendments.    The Company shall promptly supplement and amend any Shelf Registration Statement and/or amend
or supplement the Prospectus constituting a part thereof if required by the rules, regulations or instructions applicable to the registration form used for such Shelf Registration Statement, if
required by the Securities Act, or if reasonably requested in writing by the Holders of a majority in aggregate principal amount of the Registrable Notes covered by such Shelf Registration Statement
or by any underwriter of such Registrable Notes.

	(d)
	Provision of Information.    No Holder shall be entitled to include any of its Registrable Notes in any Shelf Registration
Statement pursuant to this Agreement unless such Holder furnishes to the Company and the Trustee in writing, within 20 days after receipt of a written request therefor, such information as the
Company and the Trustee, after conferring with counsel with regard to information relating to Holders that would be required by the SEC to be included in such Shelf Registration Statement or
Prospectus included therein, may reasonably request for inclusion in any Shelf Registration Statement or Prospectus included therein, and no such Holder shall be entitled to Additional Interest
pursuant to Section 4 hereof unless and until such Holder shall have provided such information.

	(e)
	Notwithstanding
anything to the contrary contained in this Agreement, upon notice to Holders, the Company may suspend use of the Prospectus included in any Shelf Registration
Statement in the event that and for a period of time (a "Blackout Period") not to exceed an aggregate of 60 days in any 12-month
period if the board of directors of the Company determines in good faith that (1) the disclosure of an event, occurrence or other item at such time could reasonably be expected to have a
Material Adverse Effect on the business, operations or prospects of the Company and the Guarantors, taken as a whole, or (2) the disclosure otherwise relates to a material business transaction
which has not been publicly disclosed and that any such disclosure would jeopardize the success of the transaction or that disclosure of the transaction is prohibited pursuant to the terms thereof. 

4.    Additional Interest    

	(a)
	The
Company and each Guarantor acknowledges and agrees that the Holders of Registrable Notes will suffer damages if the Company or any Guarantor fails to fulfill its material
obligations under Section 2 or Section 3 hereof and that it would not be feasible to
ascertain 

7

 

the
extent of such damages with precision. Accordingly, the Company and the Guarantors agree to pay additional cash interest on the Notes ("Additional
Interest") under the circumstances and to the extent set forth below (each of which shall be given independent effect): 

	(i)
	if
(A) neither the Exchange Registration Statement nor the Initial Shelf Registration Statement has been filed with the SEC on or prior to the Filing Date or
(B) notwithstanding that the Company has consummated or will consummate an Exchange Offer, the Company is required to file a Shelf Registration Statement and such Shelf Registration
Statement is not filed on or prior to the date required by this Agreement, then, commencing on the day after either such required filing date, Additional Interest shall accrue on the principal amount
of the Notes over and above any stated interest at a rate of 0.25% per annum for the first 90 days immediately following such filing date, such Additional Interest rate increasing by an
additional 0.25% per annum at the beginning of each subsequent 90-day period, subject to the provisos in the last sentence of this paragraph;

	(ii)
	if
(A) neither the Exchange Registration Statement nor the Initial Shelf Registration Statement is declared effective by the SEC on or prior to the Effectiveness
Date, or (B) notwithstanding that the Company has consummated or will consummate an Exchange Offer, the Company is required to file a Shelf Registration Statement and such Shelf
Registration Statement is not declared effective by the SEC on or prior to the 90th day following the date such Shelf Registration Statement was filed, then, commencing on the day after
either such required effective date, Additional Interest shall accrue on the principal amount of the Notes over and above any stated interest at a rate of 0.25% per annum for the first 90 days
immediately following such effective date, such Additional Interest rate increasing by an additional 0.25% per annum at the beginning of each subsequent 90-day period, subject to the
provisos in the last sentence of this paragraph; or

	(iii)
	if
(A) the Company (and any Guarantor) has not exchanged Exchange Notes for all Notes validly tendered and not withdrawn in accordance with the terms of the
Exchange Offer on or prior to 30 Business Days after the Effectiveness Date, (B) if applicable, a Shelf Registration Statement has been declared effective and such Shelf Registration Statement
ceases to be effective or usable in connection with resales of the Notes at any time prior to the second anniversary of the Issue Date (other than during a Blackout Period or after such time as all
Notes have been disposed of thereunder), or (C) the Company issues a valid notice to suspend the use of the Prospectus included in any Shelf Registration Statement and such suspension, when
taken together with all other suspensions, if any (but solely to the extent not concurrent), during any 12 month period exceeds 60 days, then, in each case, Additional Interest shall
accrue on the principal amount of the Notes over and above any stated interest at a rate of 0.25% per annum for the first 90 days commencing on (x) the 31st Business Day
after the Effectiveness Date, in the case of clause (A) above, (y) the day such Shelf Registration Statement ceases to be effective or usable, in the case of clause (B) above, or
(z) the day the Prospectus in any Shelf Registration Statement is suspended for any period in excess of 90 Days, in the case of clause (C) above during any 12-month period,
such Additional Interest rate increasing by an additional 0.25% per annum at the beginning of each subsequent 90-day period, subject to the provisos in the last sentence of this paragraph; 

provided, however, that Additional Interest will not accrue under more than one of the foregoing clauses (i), (ii) or (iii) at any one
time; provided further, however, that the amount of Additional Interest accruing on the Notes shall not exceed at any one time in the aggregate 

8

 

1.0%
per annum; and provided further, however, that (1) upon the filing of the Exchange Registration Statement or Initial Shelf Registration
Statement (in the case of clause (i) above), (2) upon the effectiveness of the Exchange Registration Statement or Shelf Registration Statement (in the case of clause (ii) above),
(3) upon the exchange of Exchange Notes for all Notes tendered (in the case of clause (iii)(A) above), (4) upon the effectiveness of a Shelf Registration Statement which had
ceased to remain effective (in the case of clause (iii)(B) above), or (5) upon the day the Prospectus in any Shelf Registration Statement the use of which was previously suspended may be
used again (in the case of clause (iii)(C) above), Additional Interest on the Notes as a result of such clause (or the relevant subclause thereof), as the case may be, shall cease to accrue. 

	(b)
	The
Company shall notify the Trustee within three Business Days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid (an
"Event Date"). Any amounts of Additional Interest due pursuant to clause (a)(i),  (a)(ii) or
(aiii) of this Section 5 will be
payable in cash, on the dates and in the manner provided in the Indenture and whether or not any cash interest would then be payable on such date, commencing with the first such
semi-annual date occurring after any such Additional Interest commences to accrue. The amount of Additional Interest will be determined by multiplying the applicable Additional Interest
rate by the principal amount of the Notes, multiplied by a fraction, the numerator of which is the number of days such Additional Interest rate was applicable during such period (determined on the
basis of a 360-day year comprised of twelve 30-day months and, in the case of a partial month, the actual number of days elapsed), and the denominator of which is 360. 

5.    Hold-Back Agreements    

        The
Company agrees that it will not effect any public or private sale or distribution (including a sale pursuant to Regulation D under the Securities Act) of any securities the
same as or similar to those covered by a Registration Statement filed pursuant to Section 2 or 3
hereof (other than Additional Notes (as defined in the Indenture) issued under the Indenture), or any securities convertible into or exchangeable or exercisable for such securities, during the
10 days prior to, and during the 90-day period beginning on, the effective date of any Registration Statement filed pursuant to Sections
2 and 3 hereof unless the Holders of a majority in the aggregate principal amount at maturity of the Registrable Notes to be
included in such Registration Statement consent, if the managing underwriter thereof so requests in writing. 

6.    Registration Procedures    

        In
connection with the filing of any Registration Statement pursuant to Sections 2 or  3 hereof, the Company shall (and shall cause each Guarantor to)
effect such registrations to permit the sale of such securities covered thereby in
accordance with the intended method or methods of disposition thereof, and pursuant thereto and in connection with any Registration Statement filed by the Company hereunder, the Company shall (and
shall cause each Guarantor to): 

	(a)
	Prepare
and file with the SEC the Exchange Registration Statement, in accordance with Section 2 or a Shelf Registration
Statement in accordance with Section 3; provided that, if (1) a Shelf Registration
Statement is filed pursuant to Section 3 or (2) a Prospectus contained in an Exchange Registration Statement filed pursuant to  Section 2 is
required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, before filing any Registration Statement or Prospectus or any amendments or supplements thereto the Company shall (and shall cause each Guarantor to), if requested, furnish at no
charge to the Holders of the Registrable Notes to be registered pursuant to such Shelf Registration Statement, each Participating Broker-Dealer, the managing underwriters, if any, and each of their
respective counsel, a reasonable opportunity to review 

9

 

copies
of all such documents (including copies of any documents to be incorporated by reference therein and all exhibits thereto) proposed to be filed (in each case at least 5 Business Days prior to
such filing). The Company and each Guarantor shall not (and shall not allow any of the other Guarantors to) file any such Registration Statement or Prospectus or any amendments or supplements thereto
in respect of which the Holders must provide information for the inclusion therein without the Holders being afforded an opportunity to review such documentation if the holders of a majority in
aggregate principal amount of the Registrable Notes covered by such Registration Statement, or any such Participating Broker-Dealer, as the case may be, or the managing underwriters, if any, or any of
their respective counsel shall reasonably object in writing prior to such filing date. A Holder shall be deemed to have reasonably objected to such filing if such Registration Statement, amendment,
Prospectus or supplement, as applicable, as proposed to be filed, contains an untrue statement of a material fact or omits to state any material fact necessary to make the statements therein not
misleading or fails to comply with the applicable requirements of the Securities Act. 

	(b)
	Provide
an indenture trustee for the Registrable Notes, the Exchange Notes or the Private Exchange Notes, as the case may be, and cause the Indenture (or other indenture relating to
the Registrable Notes) to be qualified under the TIA not later than the effective date of the first Registration Statement; and in connection therewith, to effect such changes to such indenture as may
be required for such indenture to be so qualified in accordance with the terms of the TIA; and execute, and use its reasonable best efforts to cause such trustee to execute, all documents as may be
required to effect such changes, and all other forms and documents required to be filed with the SEC to enable such indenture to be so qualified in a timely manner.

	(c)
	Prepare
and file with the SEC such pre-effective amendments and post-effective amendments to each Shelf Registration Statement or Exchange Registration
Statement, as the case may be, as may be necessary to keep such Registration Statement continuously effective for the Effectiveness Period or the Applicable Period, as the case may be; cause the
related Prospectus to be supplemented by any Prospectus supplement required by applicable law, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the Securities Act and the Exchange Act applicable to them with respect to the disposition of all securities covered by such
Registration Statement as so amended or in such Prospectus as so supplemented and with respect to the subsequent resale of any securities being sold by a Participating Broker-Dealer covered by any
such Prospectus. The Company and each Guarantor shall not (and shall not allow any other Guarantor to), during the Applicable Period, voluntarily take any action that would reasonably be expected to
result in selling Holders of the Registrable Notes covered by a Registration Statement or Participating Broker-Dealers seeking to sell Exchange Notes not being able to sell such Registrable Notes or
such Exchange Notes during that period, unless such action is required by applicable law, rule or regulation or permitted by this Agreement.

	(d)
	Furnish
to such selling Holders and Participating Broker-Dealers who so request in writing (i) upon the Company's receipt, a copy of the order of the SEC declaring such
Registration Statement and any post-effective amendment thereto effective, (ii) such reasonable number of copies of such Registration Statement and of each amendment and supplement
thereto (in each case including any documents incorporated therein by reference and all exhibits), (iii) such reasonable number of copies of the Prospectus included in such Registration
Statement (including each preliminary Prospectus) and each amendment and supplement thereto, and such reasonable number of copies of the final Prospectus as filed by the Company and each Guarantor
pursuant to Rule 424(b) under the Securities Act, in conformity with the requirements of the Securities Act and each amendment and supplement thereto, and 

10

 

(iv) such
other documents (including any amendments required to be filed pursuant to clause (c) of this Section 6), as any such
Person may reasonably request in writing. The Company and the Guarantors hereby consent to the use of the Prospectus by each of the selling Holders of Registrable Notes or each such Participating
Broker-Dealer, as the case may be, and the underwriters or agents, if any, and dealers, if any, in connection with the offering and sale of the Registrable Notes covered by, or the sale by
Participating Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and any amendment or supplement thereto. 

	(e)
	If
(1) a Shelf Registration Statement is filed pursuant to Section 3, or (2) a Prospectus contained in an Exchange
Registration Statement filed pursuant to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period relating thereto, the Company shall notify in writing the selling Holders of Registrable Notes, or each such Participating Broker-Dealer, as
the case may be, and the managing underwriters, if any, and each of their respective counsel promptly (but in any event within 2 Business Days) (i) when a Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective
(including in such notice a written statement that any Holder may, upon request, obtain, without charge, one conformed copy of such Registration Statement or post-effective amendment
including financial statements and schedules, documents incorporated or deemed to be incorporated by reference and exhibits), (ii) of the issuance by the SEC of any stop order suspending the
effectiveness of a Registration Statement or of any order preventing or suspending the use of any Prospectus or the initiation of any proceedings for that purpose, (iii) if at any time when a
Prospectus is required by the Securities Act to be delivered in connection with sales of the Registrable Notes the representations and warranties of the Company and any Guarantor contained in any
agreement (including any underwriting agreement contemplated by Section 6(n) hereof) cease to be true and correct, (iv) of the receipt by
the Company or any Guarantor of any notification with respect to the suspension of the qualification or exemption from qualification of a Registration Statement or any of the Registrable Notes or the
Exchange Notes to be sold by any Participating Broker-Dealer for offer or sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, (v) of the happening of
any event, the existence of any condition of any information becoming known that makes any statement made in such Registration Statement or related Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue in any material respect or that requires the making of any changes in, or amendments or supplements to, such Registration Statement, Prospectus or documents
so that, in the case of the Registration Statement and the Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (vi) of any reasonable determination by the Company or any Guarantor that a
post-effective amendment to a Registration Statement would be appropriate and (vii) of any request by the SEC for amendments to the Registration Statement or supplements to the
Prospectus or for additional information relating thereto.

	(f)
	Use
its reasonable best efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of a
Prospectus or suspending the qualification (or exemption from qualification) of any of the Registrable Notes or the Exchange Notes to be sold by any Participating Broker-Dealer, for sale in any
jurisdiction, and, if any such order is issued, to use its best efforts to obtain the withdrawal of any such order at the earliest possible date.

	(g)
	If
(A) a Shelf Registration Statement is filed pursuant to Section 3, (B) a Prospectus contained in an Exchange
Registration Statement filed pursuant to Section 2 is required to be delivered 

11

 

under
the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period or (C) reasonably requested in writing by the managing underwriters, if
any, or the Holders of a majority in aggregate principal amount of the Registrable Notes being sold in connection with an Underwritten Offering, (i) promptly incorporate in a Prospectus
supplement or post-effective amendment such information or revisions to information therein relating to such underwriters or selling Holders as the managing underwriters, if any, or such
Holders or any of their respective counsel reasonably request in writing to be included or made therein and (ii) make all required filings of such Prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplements or post-effective
amendment. 

	(h)
	Prior
to any public offering of Registrable Notes or any delivery of a Prospectus contained in the Exchange Registration Statement by any Participating Broker-Dealer who seeks to sell
Exchange Notes during the Applicable Period, use its reasonable best efforts to register or qualify, and cooperate with the selling Holders of Registrable Notes or each such Participating
Broker-Dealer, as the case may be, the underwriters, if any, and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of
such Registrable Notes or Exchange Notes, as the case may be, for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any selling Holder,
Participating Broker-Dealer or any managing underwriter or underwriters, if any, reasonably request in writing; provided that where Exchange Notes held
by Participating Broker-Dealers or Registrable Notes are offered other than through an Underwritten Offering, the Company and each Guarantor agree to cause its counsel to perform Blue Sky
investigations and use its reasonable best efforts to file any registrations and qualifications required to be filed pursuant to this  Section 6(h), use its reasonable best efforts to keep each such
registration or qualification (or exemption therefrom) effective during the
period such Registration Statement is required to be kept effective and use its reasonable best efforts to do any and all other acts or things reasonably necessary or advisable to enable the
disposition in such jurisdictions of the Exchange Notes held by Participating Broker-Dealers or the Registrable Notes covered by the applicable Registration Statement;  provided that neither the Company
nor any Guarantor shall be required to (A) qualify generally to do business in any jurisdiction where it is not
then so qualified, (B) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or (C) subject itself to taxation in
any such jurisdiction where it is not then so subject.

	(i)
	If
(A) a Shelf Registration Statement is filed pursuant to Section 3 or (B) a Prospectus contained in an Exchange
Registration Statement filed pursuant to Section 2 is requested to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, cooperate with the selling Holders of Registrable Notes and the managing underwriter or underwriters, if any, to facilitate the timely
preparation and delivery of certificates representing Registrable Notes to be sold, which certificates shall not bear any restrictive legends and shall be in a form eligible for deposit with The
Depository Trust Company, and enable such Registrable Notes to be in such denominations and registered in such names as the managing underwriter or underwriters, if any, or Holders may reasonably
request in writing.

	(j)
	Use
its reasonable best efforts to cause the Registrable Notes covered by any Registration Statement to be registered with or approved by such governmental agencies or authorities as
may be necessary to enable the seller or sellers thereof or the underwriter, if any, to consummate the disposition of such Registrable Notes, except as may be required solely as a consequence of the
nature of such selling Holder's business, in which case the Company shall (and shall cause each Guarantor to) cooperate in all reasonable respects with the filing of 

12

 

such
Registration Statement and the granting of such approvals; provided that neither the Company nor any Guarantor shall be required to
(A) qualify generally to do business in any jurisdiction where it is not then so qualified, (B) take any action that would subject it to general service of process in any jurisdiction
where it is not then so subject or (C) subject itself to taxation in any such jurisdiction where it is not then so subject. 

	(k)
	If
(1) a Shelf Registration Statement is filed pursuant to Section 3, or (2) a Prospectus contained in an Exchange
Registration Statement filed pursuant to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, upon the occurrence of any event contemplated by Section 6(e)(v) or  6(e)(vi) hereof, as
promptly as practicable, prepare and file with the SEC, at the expense of the Company and the Guarantors, a supplement or
post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any
other required document so that, as thereafter delivered to the purchasers of the Registrable Notes being sold thereunder or to the purchasers of the Exchange Notes to whom such Prospectus will be
delivered by a Participating Broker-Dealer, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading, and, if SEC review is required, use its best efforts to cause such post-effective
amendment to be declared effective as soon as possible.

	(l)
	Use
its reasonable best efforts to cause the Registrable Notes covered by a Registration Statement to be rated with such appropriate rating agencies, if so requested in writing by the
Holders of a majority in aggregate principal amount of the Registrable Notes covered by such Registration Statement or the managing underwriter or underwriters, if any.

	(m)
	Prior
to the initial issuance of the Exchange Notes, (i) provide the Trustee with one or more certificates for the Registrable Notes in a form eligible for deposit with The
Depository Trust Company and (ii) provide a CUSIP number for the Exchange Notes.

	(n)
	If
a Shelf Registration Statement is filed pursuant to Section 3, enter into such agreements (including an underwriting
agreement in form, scope and substance as is customary in Underwritten Offerings of debt securities similar to the Notes, as may be appropriate in the circumstances) and take all such other actions in
connection therewith (including those reasonably requested in writing by the managing underwriters, if any, or the Holders of a majority in aggregate principal amount of the Registrable Notes being
sold) as is customary in Underwritten Offerings of debt securities similar to the Notes as may be appropriate in connection therewith in order to expedite or facilitate the registration or the
disposition of such Registrable Notes, and in such connection, whether or not an underwriting agreement is entered into and whether or not the registration is an Underwritten Registration (except as
set forth below), (i) make such representations and warranties to the Holders and the underwriters, if any, with respect to the business of the Company and its subsidiaries as then conducted,
and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by
issuers to underwriters in Underwritten Offerings of debt securities similar to the Notes, as may be appropriate in the circumstances, and confirm the same if and when reasonably required;
(ii) use reasonable best efforts to obtain an opinion of counsel to the Company and the Guarantors and updates thereof (which counsel and opinions (in form, scope and substance) shall be
reasonably satisfactory to the managing underwriters, if any, and the Holders of a majority in aggregate principal amount of the Registrable Notes being sold), addressed to each selling Holder and
each of the underwriters, if any, covering the matters customarily covered in opinions of counsel to the Company and the Guarantors requested in 

13

 

Underwritten
Offerings of debt securities similar to the Notes, as may be appropriate in the circumstances; (iii) use reasonable best efforts to obtain "cold comfort" letters and updates
thereof (which letters and updates (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters) from the independent certified public accountants of the Company and
the Guarantors (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration Statement), addressed to each of the underwriters, such letters to be in customary form and covering matters of the type
customarily covered in "cold comfort" letters in connection with Underwritten Offerings of debt securities similar to the Notes, as may be appropriate in the circumstances, and such other matters as
reasonably requested in writing by the underwriters; and (iv) deliver such documents and certificates as may be reasonably requested in writing by the Holders of a majority in aggregate
principal amount of the Registrable Notes being sold and the managing underwriters, if any, to evidence the continued validity of the representations and warranties of the Company and its subsidiaries
made pursuant to clause (i) above and to evidence compliance with any conditions contained in the underwriting agreement or other similar agreement entered into by the Company or any Guarantor. 

	(o)
	If
(1) a Shelf Registration Statement is filed pursuant to Section 3, or (2) a Prospectus contained in an Exchange
Registration Statement filed pursuant to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, make available for inspection by a representative of the Holder of such Registrable Notes being sold, and representative of each such
Participating Broker-Dealer, as the case may be, any underwriter participating in any such disposition of Registrable Notes, if any, and any attorney, accountant or other agent retained by any such
selling Holder or each such Participating Broker-Dealer, as the case may be, or underwriter (collectively, the "Inspectors"), at the offices where
normally kept, during reasonable business hours, all financial and other records and pertinent corporate documents of the Company and its subsidiaries (collectively, the
"Records") as shall be reasonably necessary to enable them to exercise any applicable due diligence responsibilities, and cause the officers, directors
and employees of the Company and its subsidiaries to supply all information reasonably requested in writing by any such Inspector in connection with such Registration Statement. Each Inspector shall
agree in writing that it will keep the Records confidential and not disclose any of the Records unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or
omission in such Registration Statement, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, (iii) the information
in such Records is public or has been made generally available to the public other than as a result of a disclosure or failure to safeguard by such Inspector or (iv) disclosure of such
information is, in the reasonable written opinion of counsel for any Inspector, necessary or advisable in connection with any action, claim, suit or proceeding, directly or indirectly, involving or
potentially involving such Inspector and arising out of, based upon, related to, or involving this Agreement, or any transaction contemplated hereby or arising hereunder. Each selling Holder of such
Registrable Notes and each such Participating Broker-Dealer will be required to agree that information obtained by it as a result of such inspections shall be deemed confidential and shall not be used
by it as the basis for any market transactions in the securities of the Company unless and until such information is made generally available to the public. Each Inspector, each selling Holder of such
Registrable Notes and each such Participating Broker-Dealer will be required to further agree that it will, upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give notice to the Company and, to the extent practicable, use its 

14

 

best
efforts to allow the Company, at its expense, to undertake appropriate action to prevent disclosure of the Records deemed confidential at its expense. 

	(p)
	Comply
with all applicable rules and regulations of the SEC and make generally available to the security holders of the Company with regard to any applicable Registration Statement
earning statements satisfying the provisions of section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than
45 days after the end of any 12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) (i) commencing at the end of
any fiscal quarter in which Registrable Notes are sold to underwriters in a firm commitment or best efforts Underwritten Offering and (ii) if not sold to underwriters in such an offering,
commencing on the first day of the first fiscal quarter of the Company after the effective date of a Registration Statement, which statements shall cover said 12-month periods.

	(q)
	Upon
consummation of an Exchange Offer or Private Exchange, obtain an opinion of counsel to the Company and the Guarantors addressed to the Trustee for the benefit of all Holders
participating in the Exchange Offer or Private Exchange, as the case may be, to the effect that (i) the Company and the Guarantors have duly authorized, executed and delivered the Exchange
Notes or the Private Exchange Notes, as the case may be, and the Indenture, (ii) the Exchange Notes or the Private Exchange Notes, as the case may be, and the Indenture constitute legal, valid
and binding obligations of the Company and the Guarantors, enforceable against the Company and the Guarantors in accordance with their respective terms, except as such enforcement may be subject to
customary United States and foreign exceptions and (iii) all obligations of the Company and the Guarantors under the Exchange Notes or the Private Exchange Notes, as the case may be, and the
Indenture are secured by Liens (as defined in the Indenture) on the assets securing the obligations of the Company and the Guarantors under the Notes, the Indenture and the Collateral Agreements to
the extent and as discussed in the Registration Statement.

	(r)
	If
the Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Registrable Notes by the Holders to the Company and the Guarantors (or to such other Person as
directed by the Company and the Guarantors) in exchange for the Exchange Notes or the Private Exchange Notes, as the case may be, the Company and the Guarantors shall mark, or cause to be marked, on
such Registrable Notes that the Exchange Notes or the Private Exchange Notes, as the case may be, are being issued as substitute evidence of the indebtedness originally evidenced by the Registrable
Notes; provided that in no event shall such Registrable Notes be marked as paid or otherwise satisfied.

	(s)
	Cooperate
with each seller of Registrable Notes covered by any Registration Statement and each underwriter, if any, participating in the disposition of such Registrable Notes and
their respective counsel in connection with any filings required to be made with the NASD.

	(t)
	Use
its reasonable best efforts to take all other steps reasonably necessary to effect the registration of the Registrable Notes covered by a Registration Statement contemplated
hereby.

	(u)
	The
Company may require each seller of Registrable Notes or Participating Broker-Dealer as to which any registration is being effected to furnish to the Company such information
regarding such seller or Participating Broker-Dealer and the distribution of such Registrable Notes as the Company may, from time to time, reasonably request in writing. The Company may exclude from
such registration the Registrable Notes of any seller who fails to furnish such information within a reasonable time (which time in no event shall exceed 45 days) after receiving such request.
Each seller of Registrable Notes or Participating Broker-Dealer as to which any registration is being effected agrees to furnish promptly to the Company all 

15

 

information
required to be disclosed in order to make the information previously furnished by such seller not materially misleading. 

	(v)
	Each
Holder of Registrable Notes and each Participating Broker-Dealer agrees by acquisition of such Registrable Notes or Exchange Notes to be sold by such Participating Broker-Dealer,
as the case may be, that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 6(e)(ii),  6(e)(iv), 6(e)(v), or 6(e)(vi), such Holder will
forthwith discontinue disposition of such Registrable Notes covered by a Registration Statement and such Participating Broker-Dealer will forthwith discontinue disposition of such Exchange Notes
pursuant to any Prospectus and, in each case, forthwith discontinue dissemination of such Prospectus until such Holder's or Participating Broker-Dealer's receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 6(k), or until it is advised in writing (the "Advice")
by the Company and the Guarantors that the use of the applicable Prospectus may be resumed, and has received copies of any amendments or supplements thereto and, if so directed by the Company and the
Guarantors, such Holder or Participating Broker-Dealer, as the case may be, will deliver to the Company all copies, other than permanent file copies, then in such Holder's or Participating
Broker-Dealer's possession, of the Prospectus covering such Registrable Notes current at the time of the receipt of such notice. In the event the Company and the Guarantors shall give any such notice,
the Applicable Period shall be extended by the number of days during such periods from and including the date of the giving of such notice to and including the date when each Participating
Broker-Dealer shall have received (x) the copies of the supplemented or amended Prospectus contemplated by Section 6(k) or (y) the
Advice. 

7.    Registration Expenses    

	(a)
	All
fees and expenses incident to the performance of or compliance with this Agreement by the Company and the Guarantors shall be borne by the Company and the Guarantors, whether or
not the Exchange Offer or a Shelf Registration Statement is filed or becomes effective, including, without limitation, (i) all registration and filing fees, including, without limitation,
(A) fees with respect to filings required to be made with the NASD in connection with any Underwritten Offering and (B) fees and expenses of compliance with state securities or Blue Sky
laws as provided in Section 6(h) hereof (including, without limitation, reasonable fees and disbursements of counsel in connection with Blue Sky
qualifications of the Registrable Notes or Exchange Notes and determination of the eligibility of the Registrable Notes or Exchange Notes for investment under the laws of such jurisdictions
(x) where the Holders are located, in the case of the Exchange Notes, or (y) as provided in Section 6(h), in the case of
Registrable Notes or Exchange Notes to be sold by a Participating Broker-Dealer during the Applicable Period), (ii) printing expenses, including, without limitation, expenses of printing
Prospectuses if the printing of Prospectuses is requested by the managing underwriter or underwriters, if any, or by the Holders of a majority in aggregate principal amount at maturity of the
Registrable Notes included in any Registration Statement or by any Participating Broker-Dealer during the Applicable Period, as the case may be, (iii) messenger, telephone and delivery expenses
incurred in connection with the performance of their obligations hereunder, (iv) fees and disbursements of counsel for the Company, the Guarantors and, subject to  Section 7(b), the Holders,
(v) fees and disbursements of all independent certified public accountants referred to in  Section 6 (including, without limitation, the expenses of any special audit and "cold comfort" letters
required by or incident to such
performance), (vi) rating agency fees and the fees and expenses incurred in connection with the listing of the Securities to be registered on any securities exchange, (vii) Securities
Act liability insurance, if the Company and the Guarantors desire such insurance, (viii) fees and expenses of all other Persons retained by the Company and the Guarantors, (ix) fees and
expenses of any "qualified independent underwriter" or other independent appraiser 

16

 

participating
in an offering pursuant to Section 3 of Schedule E to the bylaws of the NASD, but only where the need for such a "qualified
independent underwriter" arises due to a relationship with the Company and the Guarantors, (x) internal expenses of the Company and the Guarantors (including, without limitation, all salaries
and expenses of officers and employees of the Company or the Guarantors performing legal or accounting duties), (xi) the expense of any annual audit, (xii) the fees and expenses of the
Trustee and the Exchange Agent and (xiii) the expenses relating to printing, word processing and distributing all Registration Statements, underwriting agreements, securities sales agreements,
indentures and any other documents necessary in order to comply with this Agreement. 

	(b)
	The
Company and the Guarantors shall reimburse the Holders for the reasonable fees and disbursements of not more than one counsel chosen by the Holders of a majority in aggregate
principal amount of the Registrable Notes to be included in any Registration Statement. The Company and the Guarantors shall pay all documentary, stamp, transfer or other transactional taxes
attributable to the issuance or delivery of the Exchange Notes or Private Exchange Notes in exchange for the Notes; provided that the Company shall not
be required to pay taxes payable in respect of any transfer involved in the issuance or delivery of any Exchange Note or Private Exchange Note in a name other than that of the Holder of the Note in
respect of which such Exchange Note or Private Exchange Note is being issued. The Company and the Guarantors shall reimburse the Holders for the reasonable fees and expenses (including reasonable fees
and expenses of counsel to the Holders) relating to any enforcement of any rights of the Holders under this Agreement. 

8.    Indemnification    

	(a)
	Indemnification by the Company and the Guarantors.    The Company and the Guarantors jointly and severally agree to indemnify
and hold harmless each Holder of Registrable Notes, Exchange Notes or Private Exchange Notes and each Participating Broker-Dealer selling Exchange Notes during the Applicable Period, each Person, if
any, who controls each such Holder (within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) and the officers, directors and partners of each such
Holder, Participating Broker-Dealer and controlling person, to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation,
reasonable costs of preparation and reasonable attorneys' fees as provided in this Section 8) and expenses (including, without limitation,
reasonable costs and expenses incurred in connection with investigating, preparing, pursuing or defending against any of the foregoing) (collectively,
"Losses"), as incurred, directly or indirectly caused by, related to, based upon, arising out of or in connection with any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement, Prospectus or form of prospectus, or in any amendment or supplement thereto, or in any preliminary prospectus, or any
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, except insofar as such Losses are primarily based upon information relating to such Holder or Participating Broker-Dealer and furnished in writing to the Company and the Guarantors (or
reviewed and approved in writing) by such Holder or Participating Broker-Dealer or their counsel expressly for use therein; provided, however, that the
Company and the Guarantors will not be liable to any Indemnified Party (as defined below) under this Section 8 to the extent Losses were
primarily caused by an untrue statement or omission or alleged untrue statement or omission that was contained or made in any preliminary prospectus and corrected in the Prospectus or any amendment or
supplement thereto if (i) the Prospectus does not contain any other untrue statement or omission or alleged untrue statement or omission of a material fact that was the subject matter of the
related proceedings, (ii) any such Losses resulted from an action, claim or suit by any Person who purchased Registrable 

17

 

Notes
or Exchange Notes which are the subject thereof from such Indemnified Party and (iii) it is established in the related proceeding that such Indemnified Party failed to deliver or provide
a copy of the Prospectus (as amended or supplemented) to such Person with or prior to the confirmation of the sale of such Registrable Notes or Exchange Notes sold to such Person if required by
applicable law, unless such failure to deliver or provide a copy of the Prospectus (as amended or supplemented) was a result of noncompliance by the Company with  Section 6 of this Agreement, The
Company and the Guarantors also agree to indemnify underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, their officers, directors, agents and employees and each Person who controls such Persons (within the meaning of Section 15
of the Securities Act or Section 20(a) of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders or the Participating Broker-Dealer. 

	(b)
	Indemnification by Holder.    In connection with any Registration Statement, Prospectus or form of prospectus, any amendment
or supplement thereto, or any preliminary prospectus in which a Holder is participating, such Holder shall furnish to the Company and the Guarantors in writing such information as the Company and the
Guarantors reasonably request for use in connection with any Registration Statement, Prospectus or form of prospectus, any amendment or supplement thereto, or any preliminary prospectus and shall
indemnify and hold harmless the Company, the Guarantors, their respective directors and each Person, if any, who controls the Company and the Guarantors (within the meaning of Section 15 of the
Securities Act and Section 20(a) of the Exchange Act), and the directors, officers and partners of such controlling persons, to the fullest extent lawful, from and against all Losses arising
out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus or form of prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading to the extent, but only to the extent, that such losses are finally judicially determined by a court of competent jurisdiction in a
final, unappealable order to have resulted primarily from an untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact contained in or omitted
from any information so furnished in writing by such Holder to the Company and the Guarantors expressly for use therein. Notwithstanding the foregoing, in no event shall the liability of any selling
Holder be greater in amount than such Holder's Maximum Contribution Amount (as defined below).

	(c)
	Conduct of Indemnification Proceedings.    If any proceeding shall be brought or asserted against any Person entitled to
indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the party or parties from which such indemnity is sought (the
"Indemnifying Party" or "Indemnifying Parties", as applicable) in writing;  provided, that the failure to so
notify the Indemnifying Parties shall not relieve the Indemnifying Parties from any obligation or liability except to
the extent (but only to the extent) that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal) that the Indemnifying Parties have been
prejudiced materially by such failure. 

        The
Indemnifying Party shall have the right, exercisable by giving written notice to an Indemnified Party, within 20 Business Days after receipt of written notice from such Indemnified
Party of such proceeding, to assume, at its expense, the defense of any such proceeding, provided, that an Indemnified Party shall have the right to
employ separate counsel in any such proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or parties unless:
(1) the Indemnifying Party has agreed to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the defense of such proceeding or shall have
failed to employ counsel reasonably satisfactory to such Indemnified Party; or 

18

 

(3) the
named parties to any such proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party or any of its affiliates or controlling persons,
and such Indemnified Party shall have been advised by counsel that there may be one or more defenses available to such Indemnified Party that are in addition to, or in conflict with, those defenses
available to the Indemnifying Party or such affiliate or controlling person (in which case, if such Indemnified Party notifies the Indemnifying Parties in writing that it elects to employ separate
counsel at the expense of the Indemnifying Parties, the Indemnifying Parties shall not have the right to assume the defense and the reasonable fees and expenses of such counsel shall be at the expense
of the Indemnifying Party; it being understood, however, that, the Indemnifying Party shall not, in connection with any one such proceeding or separate but substantially similar or related proceedings
in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local
counsel) at any time for such Indemnified Party). 

        No
Indemnifying Party shall be liable for any settlement of any such proceeding effected without its written consent, which shall not be unreasonably withheld, but if settled with its
written consent, or if there be a final judgment for the plaintiff in any such proceeding, each Indemnifying Party jointly and severally agrees, subject to the exceptions and limitations set forth
above, to indemnify and hold harmless each Indemnified Party from and against any and all Losses by reason of such settlement or judgment. The Indemnifying Party shall not consent to the entry of any
judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to each Indemnified Party of a release, in form and substance
reasonably satisfactory to the Indemnified Party, from all liability in respect of such proceeding for which such Indemnified Party would be entitled to indemnification hereunder (whether or not any
Indemnified Party is a party thereto). 

	(d)
	Contribution. If the indemnification provided for in this Section 8 is
unavailable to an Indemnified Party or is insufficient to hold such Indemnified Party harmless for any Losses in respect of which this Section 8
would otherwise apply by its terms (other than by reason of exceptions provided in this Section 8), then each applicable Indemnifying Party, in
lieu of indemnifying such Indemnified Party, shall have a joint and several obligation to contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and such Indemnified Party, on the other hand, in connection with the actions, statements or
omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand,
shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to
information supplied by such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent any such statement or
omission. The amount paid or payable by an Indemnified Party as a result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any
proceeding, to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in Section 8(a) or  8(b)
was available to such party. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by
pro rata allocation or by another method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of
this Section 8(d), a selling Holder shall not be required to contribute, in the aggregate, any amount in excess of such Holder's Maximum
Contribution Amount. A selling Holder's "Maximum Contribution Amount" shall equal the excess of (i) the aggregate proceeds received by such
Holder pursuant to the sale of such Registrable Notes or Exchange Notes over (ii) the 

19

 

aggregate
amount of damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The
Holders' obligations to contribute pursuant to this Section 8(d) are several in proportion to the respective principal amount at maturity of the
Registrable Securities held by each Holder hereunder and not joint. The Company's and Guarantors' obligations to contribute pursuant to this  Section 8(d) are joint and several. 

        The
indemnity and contribution agreements contained in this Section 8 are in addition to any liability that the Indemnifying
Parties may have to the Indemnified Parties. 

9.    Rules 144 and 144A    

        The
Company covenants that it shall (a) file the reports required to be filed by it (if so required) under the Securities Act and the Exchange Act in a timely manner and, if at
any time the Company is not required to file such reports, it will, upon the written request of any Holder of Registrable Notes, make publicly available other information necessary to permit sales
pursuant to Rule 144 and 144A and (b) take such further action as any Holder may reasonably request in writing, all to the extent required from time to time to enable such Holder to sell
Registrable Notes without registration under the Securities Act pursuant to the exemptions provided by Rule 144 and Rule 144A. Upon the request of any Holder, the Company shall deliver
to such Holder a written statement as to whether it has complied with such information requirements. 

10.    Underwritten Registrations of Registrable Notes    

        If
any of the Registrable Notes covered by any Shelf Registration Statement are to be sold in an Underwritten Offering, the investment banker or investment bankers and manager or
managers that will manage the offering will be selected by the Holders of a majority in aggregate principal amount at maturity of such Registrable Notes to be included in such offering;  provided, however, that such investment banker or investment bankers and manager or managers must be reasonably acceptable to the Company.
 

        No
Holder of Registrable Notes may participate in any underwritten registration hereunder unless such Holder (a) agrees to sell such Holder's Registrable Notes on the basis
provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements, lock-up letters and other documents required under the terms of such underwriting arrangements. 

11.    Miscellaneous    

	(a)
	Remedies.    In the event of a breach by either the Company or any of the Guarantors of any of their respective obligations
under this Agreement, each Holder, in addition to being entitled to exercise all rights provided herein, in the Indenture or, in the case of the Initial Purchaser, in the Purchase Agreement, or
granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and the Guarantors agree that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by either the Company or any of the Guarantors of any of the provisions of this Agreement and hereby agree, to waive the defense in
any action for specific performance that a remedy at law would be adequate.

	(b)
	No Inconsistent Agreements.    The Company and each of the Guarantors have not entered, as of the date hereof, and the
Company and each of the Guarantors shall not enter, after the date of this Agreement, into any agreement with respect to any of its securities that is inconsistent with the rights granted to the
Holders in this Agreement or otherwise conflicts 

20

 

with
the provisions hereof. Other than any agreements that exist on the date hereof, the Company and each of the Guarantors have not entered and will not enter into any agreement granting any
registration rights with respect to any of its securities. 

	(c)
	Adjustments Affecting Registrable Notes.    The Company shall not, directly or indirectly, take any action with respect to
the Registrable Notes as a class that would adversely affect the ability of the Holders to consummate any Exchange Offer.

	(d)
	Amendments and Waivers.    The provisions of this Agreement may not be amended, modified or supplemented, and waivers or
consents to or departures from the provisions hereof may not be given, other than with the prior written consent of the Holders of not less than a majority in aggregate principal amount at maturity of
the then outstanding Registrable Notes in circumstances that would adversely affect any Holders of Registrable Notes; provided, however, that  Section 8 and this Section 11(d) may not be amended, modified or supplemented without the
prior written consent of each Holder. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders
of Registrable Notes whose securities are being tendered pursuant to the Exchange Offer or sold pursuant to a Notes Registration Statement and that does not directly or indirectly affect, impair,
limit or compromise the rights of other Holders of Registrable Notes may be given by Holders of at least a majority in aggregate principal amount at maturity of the Registrable Notes being tendered or
being sold by such Holders pursuant to such Notes Registration Statement.

	(e)
	Notices.    All notices and other communications provided for or permitted hereunder shall be made in writing by hand
delivery, registered first-class mail, next-day air courier or telecopier:

	(i)
	if
to a Holder of Securities or to any Participating Broker-Dealer, at the most current address of such Holder or Participating Broker-Dealer, as the case may be, set
forth on the records of the registrar of the Notes, with a copy in like manner to the Initial Purchaser as follows: 

Jefferies &
Company, Inc.

520 Madison Avenue

12th Floor

New York, New York 10022

Facsimile No.: (212) 284-2280

Attention: Lloyd H. Feller, Esq. 

with
a copy to: 

Mayer,
Brown, Rowe & Maw LLP

1675 Broadway

New York, New York 10019

Facsimile No.: (212) 262-1910

Attention: Ronald S. Brody, Esq. 

	(ii)
	if
to the Initial Purchaser, at the address specified in Section 11(e)(i);

	(iii)
	if
to the Company or any Guarantor, as follows: 

McLeodUSA
Incorporated.

1 Martha's Way

Hiawatha, Iowa 52233

Attention: Bernard Zuroff, Esq. 

21

 

with
a copy to: 

Skadden
Arps Slate Meagher & Flom LLP

333 West Wacker Drive

Chicago, Illinois 60606

Attention: Peter C. Krupp, Esq. 

        All
such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; five Business Days after being deposited in the United
States mail, postage prepaid, if mailed; one Business Day after being timely delivered to a next-day air courier guaranteeing overnight delivery; and when receipt is acknowledged by the
addressee, if telecopied. 

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

	(f)
	Successors and Assigns.    This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties hereto, including, without limitation and without the need for an express assignment, subsequent Holders of Securities.

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

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

	(i)
	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW. EACH OF THE COMPANY AND THE GUARANTORS HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK
STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITS AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. EACH OF THE COMPANY
AND THE GUARANTORS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF
ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE
COMPANY AND THE GUARANTORS IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION
OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY AND THE GUARANTORS AT THEIR SAID ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER
SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY OR THE
GUARANTORS IN ANY OTHER JURISDICTION. 

22

 

	(j)
	Severability.    If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

	(k)
	Securities Held by the Company or Its Affiliates.    Whenever the consent or approval of Holders of a specified percentage of
Securities is required hereunder, Securities held by the Company or its affiliates (as such term is defined in Rule 405 under the Securities Act) shall not be counted in determining whether
such consent or approval was given by the Holders of such required percentage.

	(l)
	Third Party Beneficiaries.    Holders and Participating Broker-Dealers are intended third party beneficiaries of this
Agreement and this Agreement may be enforced by such Persons.

	(m)
	Entire Agreement.    This Agreement, together with the Purchase Agreement, the Indenture and the Collateral Agreements, is
intended by the parties as a final and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein and any and all prior
oral or written agreements, representations, or warranties, contracts, understanding, correspondence, conversations and memoranda between the Initial Purchaser on the one hand and the Company and the
Guarantors on the other, or between or among any agents, representatives, parents, subsidiaries, affiliates, predecessors in interest or successors in interest with respect to the subject matter
hereof and thereof are merged herein and replaced hereby. 

[Remainder of page intentionally left blank.]

23

SIGNATURES  

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

	 	 	MCLEODUSA INCORPORATED
	

 	
 	

By:	
 	

/s/  BERNARD L. ZUROFF      

	 	 	 	 	Name:	Bernard L. Zuroff
	 	 	 	 	Title:	Group Vice President, General Counsel & Secretary

Registration Rights Agreement

	 	 	GUARANTORS:
	

 	
 	
MCLEODUSA HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/  BERNARD L. ZUROFF      

	 	 	 	 	Name:	Bernard L. Zuroff
	 	 	 	 	Title:	Group Vice President, General Counsel & Secretary
	

 	
 	

 	
 	
MCLEODUSA INFORMATION SERVICES, INC.
	

 	
 	

By:	
 	

/s/  BERNARD L. ZUROFF      

	 	 	 	 	Name:	Bernard L. Zuroff
	 	 	 	 	Title:	Group Vice President, General Counsel & Secretary
	

 	
 	

 	
 	
MCLEODUSA NETWORK SERVICES, INC.
	

 	
 	

By:	
 	

/s/  BERNARD L. ZUROFF      

	 	 	 	 	Name:	Bernard L. Zuroff
	 	 	 	 	Title:	Group Vice President, General Counsel & Secretary
	

 	
 	

 	
 	
MCLEODUSA PURCHASING, L.L.C.
	

 	
 	

By:	
 	

/s/  BERNARD L. ZUROFF      

	 	 	 	 	Name:	Bernard L. Zuroff
	 	 	 	 	Title:	Title: Group Vice President, General Counsel & Secretary

Registration Rights Agreement

	ACCEPTED AND AGREED TO:	 	 
	
  JEFFERIES & COMPANY, INC.	
 	

 
	
By:	

/s/  CRAIG ZAPH      
	
 	

 
	Name:	Craig Zaph	 	 
	Title:	Managing Director	 	 

Registration Rights Agreement

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Exhibit 4.3QuickLinks
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Exhibit 4.4    
    

INTERCREDITOR AGREEMENT  

        INTERCREDITOR AGREEMENT, dated as of                        ,
20    , among                        , as First Lien Agent (and together with its successors and assigns,
in such capacity, the "First Lien Agent"), U.S. BANK NATIONAL ASSOCIATION, as Trustee, Collateral Agent and Second Lien Agent (and together with its
successors and assigns, in such capacities, the "Trustee" or the "Second Lien Agent"), MCLEODUSA
INCORPORATED, a Delaware corporation (the "Company") and its Subsidiaries (such term and each other capitalized term used herein having the meanings set
forth in Section 1) listed on the signature pages hereto (such Subsidiaries, together with the Company and each of its other Subsidiaries that
become parties hereto, the "Grantors"). 

W
I T N E S S E T H 

        WHEREAS,
the Company and certain other Grantors, certain lenders and the First Lien Agent, as [administrative] agent, are parties to the Credit Agreement, dated
as of                        , 20    ; 

        WHEREAS,
the Obligations of the Company and the other Grantors under the Credit Agreement (including guarantees in respect thereof) will be secured (together with certain other
obligations) by various assets of the Company and such other Grantors; 

        WHEREAS,
the Company and the other Grantors and the Trustee have entered into the Indenture dated as of September 28, 2006 (as amended, supplemented or otherwise modified from
time to time in accordance with the terms Section 5.3, the "Indenture"), pursuant to which the
Company will issue the Notes; and 

        WHEREAS,
it is a condition precedent to the effectiveness of the Credit Agreement that the parties hereto enter into this Agreement; 

        NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants and obligations herein set forth and for other good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 

        SECTION
1.    Definitions    

        (a)   Certain Definitions. As used in this Agreement, the following terms have the meanings specified below: 

        "Agreement" means this Agreement, as amended, renewed, extended, supplemented or otherwise modified from time to time in accordance with
the terms hereof. 

        "Bankruptcy Law" means Title 11 of the United States Code and any similar Federal, state or foreign law for the relief of debtors. 

        "Business Day" means any day other than a Saturday, a Sunday or a day that is a legal holiday under the laws of the State of New York
[or the State of Minnesota] or on which banking institutions in the State of New York [or the State of Minnesota] are required or authorized by law or
other governmental action to close. 

        "Capital Stock" means "Capital Stock" (as defined in the Indenture as in effect on the date hereof). 

        "Cash Management Obligations" means, with respect to any Person, all obligations of such Person in respect of overdrafts and related
liabilities owed to any other Person that arise from treasury, depositary or cash management services, including in connection with any automated clearing house transfers of funds, or any similar
transactions. 

        "Common Collateral" means all of the assets of any Grantor, whether now owned or hereafter existing and whether real, personal or mixed,
with respect to which a Lien is granted or purported to 

 

be
granted or held or purported to be held as security for both the First Priority Claims and the Second Priority Claims. 

        "Company" has the meaning set forth in the preamble. 

        "Credit Agreement" means the [Credit Agreement], dated as of                        ,
20    , together with any
documents evidencing or governing any Obligations relating thereto (including, without limitation, any guarantee agreements and security documents), in each case as such agreements may be amended
(including any amendment and restatement thereof), supplemented or otherwise modified from time to time, including any agreement extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of available borrowings thereunder (provided that such increase in borrowings is permitted to be incurred
in compliance with Section 4.11 ("Limitation on Incurrence of Additional Indebtedness") of the Indenture (as in effect on the date hereof) and
such borrowings are secured by a Lien permitted under clause (16) or (17) of the definition of the term "Permitted Lien" (as defined in the Indenture as in effect on the date hereof)) or
adding Subsidiaries as additional borrowers or guarantors thereunder) all or any portion of the Indebtedness under such agreement or any successor or replacement agreement and whether by the same or
any other agent, lender or group of lenders. 

        "DIP Financing" has the meaning set forth in Section 6.1.

        "Discharge of First Priority Claims" means the payment in full in cash of (a) the principal of and interest and premium, if any, on
all Indebtedness outstanding under the First Priority Documents or, with respect to letters of credit outstanding thereunder, delivery of cash collateral or backstop letters of credit in respect
thereof in compliance with the applicable First Priority Documents (but not in any event in an amount greater than 105% of the aggregate undrawn face amount of such letters of credit outstanding
thereunder), in each case after or concurrently with termination of all commitments to extend credit thereunder and (b) any other First Priority Claims that are due and payable or otherwise
accrued and owing at or prior to the time such principal and interest are paid. 

        "First Lien Agent" has the meaning set forth in the preamble. 

        "First Priority Cash Management Obligations" means any Cash Management Obligations secured by any Common Collateral under the same First
Priority Collateral Documents that secure Obligations under the Credit Agreement. 

        "First Priority Claims" means (a) Indebtedness incurred in compliance with Section 4.11 ("Limitation
on Incurrence of Additional Indebtedness") of the Indenture (as in effect on the date hereof) which is secured by a Lien permitted under clause (16) or (17) of
the definition of the term "Permitted Lien" (as defined in the Indenture as in effect on the date hereof) and (b) all other Obligations of the Company or any other Grantor under the First
Priority Documents, including all First Priority Hedging Obligations and First Priority Cash Management Obligations. Except as provided in the last sentence of this definition, any Obligations
described in the preceding sentence shall constitute First Priority Claims only to the extent such Obligations are permitted to be incurred pursuant to the Indenture as in effect on the date hereof.
First Priority Claims shall include all interest accrued or accruing (or which would, absent the commencement of an Insolvency or Liquidation Proceeding, accrue) after the commencement of an
Insolvency or Liquidation Proceeding in accordance with and at the rate specified in the relevant First Priority Document whether or not the claim for such interest is allowed as a claim in such
Insolvency or Liquidation Proceeding. To the extent any payment with respect to the First Priority Claims (whether by or on behalf of any Grantor, as proceeds of security, enforcement of any right of
set-off or otherwise) is declared to be fraudulent or preferential in any respect, set aside or required to be paid to a debtor in possession, trustee, receiver or similar Person, then the
obligation or part thereof originally intended to be satisfied shall be deemed to be reinstated and outstanding for purposes of this agreement as if such payment had not occurred. 

2

 

Notwithstanding
anything to the contrary contained in this definition, any Obligation under a First Priority Document (including any Cash Management Obligations or Hedging Obligations) shall
constitute a "First Priority Claim" if the First Lien Agent or the relevant First Priority Lender or First Priority Lenders under such First Priority Document shall have received a written
representation from the Company in or in connection with such First Priority Document that such Obligation constitutes a "First Priority Claim" under and as defined in the Indenture as in effect on
the date hereof (whether or not such Obligation is at any time determined not to have been permitted to be incurred under the Indenture). 

        "First Priority Collateral" means all of the assets of any Grantor, whether now owned or hereafter existing and whether real, personal or
mixed, with respect to which a Lien is granted or purported to be granted or held or purported to be held as security for any First Priority Claims. 

        "First Priority Collateral Documents" means any agreement, document or instrument pursuant to which a Lien is granted or purported to be
granted securing any First Priority Claims or under which rights or remedies with respect to such Liens are governed. 

        "First Priority Documents" means the Credit Agreement, the First Priority Collateral Documents, and each of the other agreements,
documents and instruments (including each agreement, document or instrument providing for or evidencing a First Priority Hedging Obligation or First Priority Cash Management Obligation) providing for
or evidencing any Obligation under the Credit Agreement or any other First Priority Claims, and any other related document or instrument executed or delivered pursuant to any First Priority Document
at any time or otherwise evidencing any First Priority Claims. 

        "First Priority Hedging Obligations" means any "First Priority Hedging Obligations" (as defined in the Indenture as in effect on the date
hereof). 

        "First Priority Lenders" means the Persons holding First Priority Claims, including the First Lien Agent. 

        "First Priority Liens" means all Liens that secure First Priority Claims. 

        "Grantors" has the meaning set forth in the preamble. 

        "Indebtedness" means and includes all Obligations that constitute "Indebtedness" within the meaning of the Indenture (as in effect on the
date hereof). 

        "Indenture" has the meaning set forth in the recitals hereto. 

        "Insolvency or Liquidation Proceeding" means (a) any voluntary or involuntary case or proceeding under any Bankruptcy Law with
respect to any Grantor, (b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding with respect to any Grantor or with respect to any of their respective assets, (c) any liquidation, dissolution, reorganization or winding up of any Grantor whether voluntary
or involuntary and whether or not involving insolvency or bankruptcy or (d) any assignment for the benefit of creditors or any other marshalling of assets and liabilities of any Grantor. 

        "Lien" means any lien, mortgage, deed of trust, pledge, security interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof and any agreement to give any security interest). 

        "Noteholders" means the Persons holding Notes from time to time. 

        "Notes" means (a) the 101/2% Senior Second Secured Notes due 2011 issued by the Company, (b) the exchange
notes issued in exchange therefor as contemplated by the Registration Rights Agreement dated as of September 28, 2006, among the Company and the Initial Purchaser (as defined 

3

 

therein)
and (c) any additional notes issued under the Indenture by the Company, to the extent permitted by the Indenture and the First Priority Documents. 

        "Obligations" means any and all obligations with respect to the payment of (a) any principal of or interest (including interest
accruing on or after the commencement of any Insolvency or Liquidation Proceeding, whether or not a claim for post-filing interest is allowed in such proceeding) or premium on any
Indebtedness, including any reimbursement obligation in respect of any letter of credit, (b) any fees, indemnification obligations, damages, expense reimbursement obligations or other
liabilities payable under the documentation governing any Indebtedness, (c) any obligation to post cash collateral in respect of letters of credit and any other obligations or (d) any
Cash Management Obligations or Hedging Obligations. 

        "Person" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, entity
or other party, including any government and any political subdivision, agency or instrumentality thereof. 

        "Pledged Collateral" means any Common Collateral the possession of which or the control thereof is necessary to perfect or improve the
priority of a Lien thereon under the Uniform Commercial Code. 

        "Required First Priority Lenders" means, with respect to any amendment or modification of a First Priority Document, or any termination or
waiver of any provision of a First Priority Document, or any consent or departure by the Company or any of the Subsidiaries therefrom, those First Priority Lenders the approval of which is required to
approve such amendment or modification, termination or waiver or consent or departure. 

        "Second Lien Agent" has the meaning set forth in the preamble. 

        "Second Priority Claims" means all Obligations in respect of the Notes or arising under the Second Priority Documents or any of them.
Second Priority Claims shall include all interest accrued (or which would, absent the commencement of an Insolvency or Liquidation Proceeding, accrue) after the commencement of an Insolvency or
Liquidation Proceeding in accordance with and at the rate specified in the relevant Second Priority Document whether or not the claim for such interest is allowed as a claim in such Insolvency or
Liquidation Proceeding. To the extent any payment with respect to the Second Priority Claims (whether by or on behalf of any Grantor, as proceeds of security, enforcement
of any right of setoff or otherwise) is declared to be fraudulent or preferential in any respect, set aside or required to be paid to a debtor in possession, trustee, receiver or similar Person, then
the obligation or part thereof originally intended to be satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred. 

        "Second Priority Collateral" means all of the assets of any Grantor, whether now owned or hereafter existing and whether real, personal or
mixed, with respect to which a Lien is granted or purported to be granted or held or purported to be held as security for the Second Priority Claims. 

        "Second Priority Collateral Documents" means the Second Priority Security Agreement, the Second Priority Mortgages and any other document
or instrument pursuant to which a Lien is granted or purported to be granted by any Grantor to secure any Second Priority Claims or under which rights or remedies with respect to any such Lien are
governed. 

        "Second Priority Documents" means (a) the Indenture, the Notes, the Second Priority Collateral Documents and each of the other
agreements, documents or instruments evidencing or governing any Second Priority Claims and (b) any other related documents or instruments executed and delivered pursuant to any Second Priority
Document described in clause (a) above evidencing or governing any Obligations thereunder. 

        "Second Priority Lenders" means the Persons holding Second Priority Claims, including the Noteholders and the Second Lien Agent. 

4

 

        "Second Priority Mortgages" means a collective reference to each mortgage, deed of trust, deed to secure debt and any other document or
instrument under which any Lien on real property owned by any Grantor is granted to secure any Second Priority Claims or under which rights or remedies with respect to any such Liens are governed. 

        "Second Priority Security Agreement" means the Security and Pledge Agreement, dated as of September 28, 2006, among the Company,
the other Grantors and the Trustee. 

        "Subsidiary" means any "Subsidiary" (as defined in the Indenture as in effect on the date hereof) of the Company. 

        "TIA" means the Trust Indenture Act of 1939, as amended. 

        "Trustee" has the meaning set forth in the preamble. 

        "Uniform Commercial Code" and "UCC" mean the Uniform Commercial Code as from time to time
in effect in the State of New York. 

        (b)   Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be
followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise (i) any definition
of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified, (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein", "hereof" and "hereunder", and
words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Sections shall be construed to
refer to Sections of this Agreement and (v) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights. 

        SECTION
2.    Lien Priorities    

        2.1    Subordination    

        Notwithstanding
the date, manner or order of grant, attachment or perfection of any Liens granted to the Second Lien Agent or the Second Priority Lenders on the Common Collateral or of
any Liens granted to the First Lien Agent or the First Priority Lenders on the Common Collateral and notwithstanding any provision of the UCC or any other applicable law or the Second Priority
Documents or the First Priority Documents or any other circumstance whatsoever, including any defect or deficiency or alleged defect or deficiency in the method or manner of the grant, attachment or
perfection of any Lien or the subordination, voidance, avoidance, invalidation or lapse of any such Lien, the Second Lien Agent, on behalf of itself and the Second Priority Lenders, hereby agrees
that: (a) any Lien on the Common Collateral that secures any First Priority Claims now or hereafter held by or on behalf of the First Lien Agent or any First Priority Lenders or any agent or
trustee therefor shall be senior in all respects and prior to any Lien thereon that secures any of the Second Priority Claims; and (b) any Lien on the Common Collateral now or hereafter held by
or on behalf of the Second Lien Agent or any Second Priority Lenders or any agent or trustee therefor regardless of how acquired, whether by grant, statute, operation of law, subrogation or otherwise,
shall be junior and subordinate in all respects to all Liens thereon that secures any First Priority Claims. 

5

 

        2.2    Prohibition on Contesting Liens    

        The
Second Lien Agent, for itself and on behalf of each Second Priority Lender, and the First Lien Agent, for itself and on behalf of each First Priority Lender it represents, agrees
that it shall not (and hereby waives any right to) contest or support any other Person in contesting, in any proceeding (including any Insolvency or Liquidation Proceeding), the priority, validity or
enforceability of a Lien held by or on behalf of any of the First Priority Lenders in the First Priority Collateral or by or on behalf of any of the Second Priority Lenders in the Second Priority
Collateral, as the case may be; provided that nothing in this Agreement shall be construed to prevent or impair the rights of the First Lien Agent or
any First Priority Lender to enforce this Agreement, including the priority of the Liens securing the First Priority Claims as provided in  Section 2.1. 

        2.3    Excluded Collateral    

        The
First Lien Agent, on behalf of itself and the First Priority Lenders, and the Second Lien Agent, on behalf of itself and the Second Priority Lenders, agree that no such creditor
shall obtain a Lien on any asset or property of any Grantor unless such other creditors concurrently obtain a Lien thereon or such other creditors waive their rights under this sentence;  provided, that
the Second Lien Agent, on behalf of itself and the Second Priority Lenders, acknowledges and agrees that the First Priority Claims may be
secured by Liens on Excluded Collateral (as such term is defined in the Indenture as in effect on the date hereof) of the type described in clause (i) of the definition thereof without the
Second Priority Claims being secured by such Excluded Collateral. 

        SECTION
3.    Enforcement    

        3.1    Exercise of Remedies    

        (a)   So
long as the Discharge of First Priority Claims has not occurred, whether or not any Insolvency or Liquidation Proceeding has been commenced by or against the Company
or any other Grantor, (i) the Second Lien Agent and the Second Priority Lenders will not exercise or seek to exercise any rights or remedies (including set-off) with respect to any
Common Collateral, institute any action or proceeding with respect to such rights or remedies (including any action of foreclosure), contest, protest or object to any foreclosure proceeding or action
brought by the First Lien Agent or any First Priority Lender, the exercise of any right under any Second Priority Document or any lockbox agreement, control agreement, blocked account agreement,
landlord waiver or bailee's letter or similar agreement or arrangement to which the Second Lien Agent or any Second Priority Lender is a party, or any other exercise by any such Person, of any rights
and remedies relating to the Common Collateral under the First Priority Documents or otherwise, or object to the forbearance by the First Priority Lenders from bringing or pursuing any foreclosure
proceeding or action or any other exercise of any rights or remedies relating to the Common Collateral and (ii) the First Lien Agent and the First Priority Lenders shall have the exclusive
right to enforce rights, exercise remedies (including set-off and the right to credit bid their debt) and make determinations regarding the release, disposition, or restrictions with
respect to the Common Collateral without any consultation with or the consent of the Second Lien Agent or any Second Priority Lender; provided,  however,
that (A) in any Insolvency or Liquidation Proceeding commenced by or against the Company or any Grantor, the Second Lien Agent may
file a claim or statement of interest with respect to the Second Priority Claims, subject to the limitations contained in this agreement and (B) the Second Lien Agent may take any action
(not adverse to the prior Liens on the Common Collateral that secures the Second Priority Claims, or the rights of the First Lien Agent or the First Priority Lenders to exercise remedies in respect
thereof) in order to preserve or protect its Lien on the Common Collateral so long as such action is consistent with the terms and limitations on the Second Lien Agent and the Second Priority Lenders
imposed by this Agreement. In exercising rights and remedies with respect to the Common Collateral, the First Lien Agent and the First Priority Lenders may enforce the provisions of the First Priority
Documents and exercise remedies thereunder, all in such order and in such manner as they may determine in the 

6

 

exercise
of their sole discretion. Such exercise and enforcement shall include the rights of an agent appointed by them to sell or otherwise dispose of the Common Collateral upon foreclosure, to incur
expenses in connection with such sale or disposition, and to exercise all the rights and remedies of a secured lender under the Uniform Commercial Code and under the comparable law of any applicable
jurisdiction and of a secured creditor under Bankruptcy Laws of any applicable jurisdiction. 

        (b)   The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, agrees that it will not take or receive, directly or indirectly, in cash or other property or
by setoff, counterclaim or in any other manner (whether pursuant to any enforcement, collection, execution, levy or foreclosure proceeding or otherwise), any Common Collateral or any proceeds of such
Common Collateral, in each case in connection with the exercise of any right or remedy (including set-off) with respect to any such Common Collateral (or in respect of any such Common
Collateral in the event of the occurrence of an Insolvency or Liquidation Proceeding with respect to a Grantor), unless and until the Discharge of First Priority Claims has occurred. Without limiting
the generality of the foregoing, unless and until the Discharge of First Priority Claims has occurred, except as expressly provided in the proviso to the first sentence of  Section 3.1(a) above, the
sole right of the Second Lien Agent and the Second Priority Lenders with respect to such Common Collateral is to hold a
Lien on such Common Collateral pursuant to the Second Priority Documents for the period and to the extent granted therein and to receive a share of the proceeds thereof, if any, after the Discharge of
the First Priority Claims has occurred. 

        (c)   Subject
to the proviso to the first sentence of Section 3.1(a) above and without limiting the effect of other
provisions of this Agreement, (i) the Second Lien Agent, for itself and on behalf of the Second Priority Lenders, agrees that the Second Lien Agent and the Second Priority Lenders will not take
any action that would hinder any exercise of remedies undertaken by the First Lien Agent under the First Priority Documents with respect to the Common Collateral, including any sale, lease, exchange,
transfer or other disposition of the Common Collateral, whether by foreclosure or otherwise, and (ii) the Second Lien Agent, for itself and on behalf of the Second Priority Lenders, hereby
waives any and all rights it or the Second Priority Lenders may have as a junior lien creditor to object to the manner in which the First Lien Agent or the First Priority Lenders seek to enforce or
collect the First Priority Claims or the Liens granted in any First Priority Collateral, regardless of whether any action or failure to act by or on behalf of the First Lien Agent or First Priority
Lenders is adverse to the interest of the Second Priority Lenders. 

        (d)   The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, hereby acknowledges and agrees that no covenant, agreement or restriction contained in any
Second Priority Document shall be deemed to restrict in any way the rights and remedies of the First Lien Agent or the First Priority Lenders with respect to the Common Collateral as set forth in this
Agreement and the First Priority Documents. 

        3.2    Cooperation    

        Subject
to the proviso to the first sentence of Section 3.1(a) above, the Second Lien Agent, on behalf of itself and the Second
Priority Lenders, agrees that, unless and until the Discharge of First Priority Claims has occurred, it will not commence, or join with any Person (other than the First Priority Lenders and the First
Lien Agent upon the request thereof) in commencing, any enforcement, collection, execution, levy or foreclosure action or proceeding with respect to any Lien held by it in any Common Collateral under
any of the Second Priority Documents or otherwise. 

        SECTION
4.    Payments    

        4.1    Application of Proceeds    

        As
long as the Discharge of First Priority Claims has not occurred, the Common Collateral and proceeds thereof received in connection with the sale or other disposition of, or collection
on, such 

7

 

Common
Collateral upon the exercise of remedies (or in respect of any Common Collateral in the event of the occurrence of an Insolvency or Liquidation Proceeding with respect to a Grantor), shall be
applied by the First Lien Agent to the First Priority Claims in such order as specified in the relevant First Priority Documents (or, if an order is not specified in the First Priority Documents, in
such order determined by the First Lien Agent in its sole discretion) until the Discharge of First Priority Claims has occurred. Upon the Discharge of the First Priority Claims, the First Lien Agent
shall deliver to the Second Lien Agent all Common Collateral and such proceeds remaining that are held by the First Lien Agent in the same form as received, with any necessary endorsements, to be
applied, if applicable, by the Second Lien Agent to the Second Priority Claims in accordance with the Indenture until all Second Priority Claims have been paid in full in cash. After all Second
Priority Claims have been paid in full in cash in accordance with the Indenture, the Second Lien Agent shall deliver to the applicable Grantor, or its successors or assigns, or to whosoever may be
lawfully entitled to receive the same or as a court of competent jurisdiction may direct, any surplus then remaining from such proceeds. 

        4.2    Payments Over    

        Any
Common Collateral or proceeds thereof (or amounts in respect thereof) received by the Second Lien Agent or any Second Priority Lender in connection with the exercise of any right or
remedy (including set-off) relating to the Common Collateral in contravention of this Agreement shall be segregated and held in trust and forthwith paid over to the First Lien Agent for
the benefit of the First Priority Lenders in the same form as received, with any necessary endorsements or as a court of competent jurisdiction may otherwise direct. The First Lien Agent is hereby
authorized to make any such endorsements as agent for the Second Lien Agent or any such Second Priority Lender. This authorization is coupled with an interest and is irrevocable. 

        SECTION
5.    Other Agreements    

        5.1    Releases    

        (a)   If
in connection with: 

        (i)    the
exercise of the First Lien Agent's remedies in respect of the Common Collateral provided for in  Section 3.1(a), including any sale, lease, exchange, transfer or other disposition of any such Common
Collateral; 

        (ii)   any
sale, lease, exchange, transfer or other disposition of any (but, in any event (except pursuant to a transaction otherwise permitted under the Indenture), not all
or substantially all of the) Common Collateral permitted or consented to by the First Priority Agent or the Required First Priority Lenders, or otherwise permitted under the terms of the First
Priority Documents after an event of default thereunder, and as defined therein, has occurred and is continuing; or 

        (iii)  any
sale, lease, exchange, transfer or other disposition of any (but, in any event (except pursuant to a transaction otherwise permitted under the Indenture), not all
or substantially all of the) Common Collateral permitted under the terms of the First Priority Documents (whether or not an event of default thereunder, and as defined therein, has occurred and is
continuing); 

the
First Lien Agent, for itself or on behalf of any of the First Priority Lenders, releases any of its Liens on any part of the Common Collateral, the Liens, if any, of the Second Lien Agent, for
itself or for the benefit of the Second Priority Lenders, on such Common Collateral (but not the proceeds thereof to the extent not applied in accordance with  Section 4.1) shall (to the extent not
otherwise prohibited under the TIA) be automatically, unconditionally and simultaneously released and the
Second Lien Agent, for itself or on behalf of any such Second Priority Lender, promptly shall (to the extent not otherwise prohibited under the TIA) execute and deliver to the First Lien Agent or such
Grantor such termination statements, releases and other documents as the First Lien Agent or such Grantor may request to effectively confirm such release. 

8

 

        (b)   The
Second Lien Agent, for itself and on behalf of the Second Priority Lenders, hereby irrevocably constitutes and appoints the First Lien Agent and any officer or agent
of the First Lien Agent, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Second
Lien Agent or such holder or in the First Lien Agent's own name, from time to time in the First Lien Agent's discretion, for the purpose of carrying out the terms of this  Section 5.1, to take any
and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Section 5.1, including any termination statements, endorsements or other instruments of transfer or release. 

        5.2    Insurance    

        Unless
and until the Discharge of First Priority Claims has occurred, the First Lien Agent and the First Priority Lenders shall have the sole and exclusive right under the First Priority
Documents, to the extent such a right is granted in the First Priority Documents, to adjust settlement for any insurance policy covering the Common Collateral in the event of any loss thereunder and
to approve any award granted in any condemnation or similar proceeding relating to the Common Collateral. Unless and until the Discharge of First Priority Claims has occurred, all proceeds of any such
policy and any such award if in respect to the Common Collateral shall be paid to the First Lien Agent for the benefit of the First Priority Lenders to the extent required under the First Priority
Documents and thereafter to the Second Lien Agent for the benefit of the Second Priority Lenders to the extent required under the Second Priority Documents and then to the owner of the subject
property or as a court of competent jurisdiction may otherwise direct. If the Second Lien Agent or any Second Priority Lender shall, at any time, receive any proceeds of any such insurance policy or
any such award in contravention of this Agreement, it shall pay such proceeds over to the First Lien Agent in accordance with the terms of  Section 4.2. 

        5.3    Amendments to Second Priority Documents.    

        Without
the prior written consent of the First Lien Agent and the Required First Priority Lenders, no Second Priority Collateral Document may be amended, supplemented or otherwise
modified or entered into to the extent such amendment, supplement or modification, or the terms of any new Second Priority Collateral Document, would be prohibited by any of the terms of the First
Priority Documents. The Second Lien Agent agrees that each Second Priority Collateral Document shall include the following language (or language to similar effect approved by the First Lien Agent): 

"Notwithstanding
anything herein to the contrary, the lien and security interest granted to the Collateral Agent pursuant to this Agreement and the exercise of any right or remedy by the Collateral
Agent hereunder are subject to the provisions of the Intercreditor Agreement (as defined in the Indenture). In the event of any conflict between the terms of the Intercreditor Agreement and this
Agreement, the terms of the Intercreditor Agreement shall govern." 

In
addition, the Second Lien Agent agrees that each Second Priority Mortgage covering any Common Collateral shall contain such other language as the First Lien Agent may reasonably request to reflect
the subordination of such Second Priority Mortgage to the First Priority Collateral Document covering such Common Collateral. 

        5.4    Rights As Unsecured Creditors    

        Notwithstanding
anything to the contrary in this Agreement, each of the Second Lien Agent and the Second Priority Lenders may exercise rights and remedies as an unsecured creditor
against the Company or any Subsidiary that has guaranteed the Second Priority Obligations in accordance with the terms of the Second Priority Documents and applicable law. Nothing in this Agreement
shall prohibit the receipt by the Second Lien Agent or any Second Priority Lenders of the required payments of interest, premium, if any, and principal on the Second Priority Claims and related fees
and expenses so 

9

 

long
as such receipt is not the direct or indirect result of the exercise by the Second Lien Agent or any Second Priority Lender of rights or remedies as a secured creditor or enforcement in
contravention of this Agreement of any Lien held by any of them in respect of any Common Collateral (or received or paid in respect of any Common Collateral in the event of the occurrence of an
Insolvency or Liquidation Proceeding with respect to a Grantor). In the event the Second Lien Agent or any Second Priority Lender becomes a judgment lien creditor in respect of any Common Collateral
as a result of its enforcement of its rights as an unsecured creditor, such judgment lien shall be subordinated to the Liens securing First Priority Claims on the same basis as the other Liens
securing the Second Priority Claims are so subordinated to such First Priority Claims under this Agreement. Nothing in this Agreement impairs or otherwise adversely affects any rights or remedies the
First Lien Agent or the First Priority Lenders may have with respect to the First Priority Collateral. 

        5.5    Representative and Bailee for Perfection and Control    

        (a)   The
First Lien Agent agrees to hold the Pledged Collateral that is in its possession or control (or in the possession or control of its agents or bailees) as
"representative" (as defined in Section 1-201(35) of the UCC) and bailee for the Second Lien Agent and any assignee solely for the purpose of perfecting the security interest (or
improving the priority thereof) granted in such Pledged Collateral pursuant to the Second Priority Security Documents, subject to the terms and conditions of this  Section 5.5. 

        (b)   Until
the Discharge of First Priority Claims has occurred, the First Lien Agent shall be entitled to deal with such Pledged Collateral in accordance with the terms of
the First Priority Documents as if the Liens of the Second Lien Agent under the Second Priority Collateral Documents did not exist. The rights of the Second Lien Agent shall at all times be subject to
the terms of this Agreement and to the First Lien Agent's rights under the First Priority Documents. 

        (c)   The
First Lien Agent shall have no obligation whatsoever to the Second Lien Agent or any Second Priority Lender to assure that such Pledged Collateral is genuine or
owned by any of the Grantors or to preserve rights or benefits of any Person except as expressly set forth in this Section 5.5. The duties or
responsibilities of the First Lien Agent under this Section 5.5 shall be limited solely to holding such Pledged Collateral as representative and
bailee for the Second Lien Agent for purposes of perfecting the Lien (or improving the priority thereof) held by the Second Lien Agent. 

        (d)   The
First Lien Agent shall not have by reason of the Second Priority Collateral Documents or this Agreement or any other document a fiduciary relationship in respect of
the Second Lien Agent or any Second Priority Lender. 

        (e)   Upon
the Discharge of First Priority Claims, the First Lien Agent shall deliver to the Second Lien Agent or, if applicable, cause the Second Lien Agent to have control
of such remaining Pledged Collateral (if any) together with any necessary endorsements (or otherwise allow the Second Lien Agent, if applicable, to obtain control of such Pledged Collateral) or as a
court of competent jurisdiction may otherwise direct. Such Pledged Collateral (if any) will be delivered or control in respect thereof will be made without recourse and without any representation or
warranty whatsoever as to the enforceability, perfection, priority or sufficiency of any Lien securing or guarantee or other supporting obligation for any Second Priority Claim, together with any
necessary endorsements. 

        (f)    Promptly
upon the execution of this Agreement by the parties hereto, the Second Lien Agent will, to the extent permitted by applicable law, deliver to the First Lien
Agent any Pledged Collateral in its possession and cause the First Lien Agent to have control of any Pledged Collateral under its control and all proceeds of Pledged Collateral in the possession or
under the control of the Second Lien Agent, whether arising out of the action taken to enforce, collect or realize upon any Pledged Collateral or otherwise. Such Pledged Collateral and such proceeds
will be delivered without recourse and without any representation or warranty whatsoever as to the enforceability, perfection, priority or sufficiency of any Lien securing or guarantee or other
supporting obligation for any First Priority Claim, together with any necessary endorsements. 

10

  

        5.6    Cooperation.    

        (a)   Upon
request of the First Lien Agent from time to time, the Second Lien Agent shall promptly disclose to the First Lien Agent all information in its possession
reasonably requested by the First Lien Agent with respect to the Second Priority Collateral, including the identity of the Grantors and guarantors of any Second Priority Obligations and the
description, location and timing of perfection of Liens purported to be created on the Second Priority Collateral to secure Second Priority Claims and shall promptly deliver to the First Lien Agent
copies of the Second Priority Documents and other documents relating to the Second Priority Collateral, such as Uniform Commercial Code Financing Statements and record copies of Second Priority
Collateral Documents. 

        (b)   Upon
request of the Second Lien Agent from time to time, the First Lien Agent shall promptly disclose to the Second Lien Agent all information in its possession
reasonably requested by the Second Lien Agent with respect to the First Priority Collateral, including the identity of the Grantors and guarantors of any First Priority Obligations and the
description, location and timing of perfection of Liens purported to be created on the First Priority Collateral to secure First Priority Claims and shall promptly deliver to the Second Lien Agent
copies of the First Priority Documents and other documents relating to the First Priority Collateral, such as Uniform Commercial Code Financing Statements and record copies of First Priority
Collateral Documents. 

        (c)   Neither
the First Lien Agent, nor any First Priority Lender, nor any of their respective officers, directors, employees, attorneys, or agents are or will be responsible
for the existence, genuineness, value or protection of any Collateral, for the legality, enforceability, effectiveness or sufficiency of any Second Priority Collateral Document, for the creation,
perfection, priority, sufficiency or protection of any Lien created under any Second Priority Collateral Document or for any failure to demand, collect, foreclose or realize upon or otherwise enforce
any Second Priority Collateral Document or any Lien created thereunder, or for any delay in doing so. Neither the Second Lien Agent, nor any Second Priority Lender, nor any of their respective
officers, directors, employees, attorneys, or agents are or will be responsible for the existence, genuineness, value or protection of any Collateral, for the legality, enforceability, effectiveness
or sufficiency of any First Priority Collateral Document, for the creation, perfection, priority, sufficiency or protection of any Lien created under any First Priority Collateral Document or for any
failure to demand, collect, foreclose or realize upon or otherwise enforce any First Priority Collateral Document or any Lien created thereunder, or for any delay in doing so. 

        SECTION
6.    Insolvency or Liquidation Proceedings    

        6.1    Financing Issues    

        If
the Company or any other Grantor shall be subject to any Insolvency or Liquidation Proceeding and the First Lien Agent shall desire to permit the use of cash collateral or to permit
the Company or any other Grantor to obtain financing under Section 363 or Section 364 of Title 11 of the United States Code or any similar Bankruptcy Law ("DIP
Financing") in an aggregate principal amount that when taken together with the principal amount of all First Lien Claims does not exceed the maximum principal amount of
Indebtedness that could then be incurred by the Company in compliance with Section 4.11 ("Limitation on Incurrence of Additional Indebtedness")
of the Indenture (as in effect on the date hereof) which is secured by a Lien permitted under clause (16) or (17) of the definition of the term "Permitted Lien" (as defined in the
Indenture as in effect on the date hereof), then the Second Lien Agent, on behalf of itself and the Second Priority Lenders, agrees that it will raise no objection to such use of cash collateral or
DIP Financing and will not request adequate protection or any other relief in connection therewith (except to the extent permitted by  Section 6.3) and, to the extent the Liens securing the First
Priority Claims are subordinated or pari passu with such DIP Financing, will
subordinate its Liens in the Common Collateral to such DIP Financing (and all Obligations relating thereto) on the same basis as the Liens on the Common Collateral that secures the Second Priority 

11

 

Claims
are subordinated to the Liens thereon that secures the First Priority Claims under this Agreement, and agrees that notice received five (5) Business Days prior to the entry of an order
approving such usage of cash collateral or approving such financing shall be adequate notice. 

        6.2    Relief from the Automatic Stay    

        Until
the Discharge of First Priority Claims has occurred, the Second Lien Agent, on behalf of itself and the Second Priority Lenders, agrees that none of them shall seek relief from the
automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of the Common Collateral, without the prior written consent of the First Lien Agent and the Required First
Priority Lenders. 

        6.3    Adequate Protection    

        The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, agrees that none of them shall contest (or support any other Person contesting) (a) any request by the
First Lien Agent or the First Priority Lenders for adequate protection or (b) any objection by the First Lien Agent or the First Priority Lenders to any motion, relief, action or proceeding
based on the First Lien Agent or the First Priority Lenders claiming a lack of adequate protection, in each case, in respect of the Common Collateral. Notwithstanding the foregoing contained in this  Section 6.3, in any Insolvency or Liquidation Proceeding, (i) if the First Priority Lenders (or any subset thereof) are granted adequate
protection in the form of additional collateral in connection with any DIP Financing or use of cash collateral under Section 363 or Section 364 of Title 11 of the United States Code or
any similar Bankruptcy Law, then
the Second Lien Agent, on behalf of itself or any of the Second Priority Lenders, may seek or request adequate protection in the form of a replacement Lien on such additional collateral, which Lien,
if any, shall be subordinated to the Liens securing the First Priority Claims and such DIP Financing (and all Obligations relating thereto) on the same basis as the other Liens on the Common
Collateral that secures the Second Priority Claims are so subordinated to the Liens thereon that secures the First Priority Claims under this Agreement, and (ii) in the event the Second Lien
Agent, on behalf of itself and the Second Priority Lenders, seeks or requests adequate protection and such adequate protection is granted in the form of additional collateral, then the Second Lien
Agent, on behalf of itself or any of the Second Priority Lenders, agrees that the First Lien Agent shall also be granted a senior Lien on such additional collateral as security for the First Priority
Claims and any such DIP Financing and that any Lien on such additional collateral securing the Second Priority Claims shall be subordinated to the Liens on such collateral securing the First Priority
Claims and any such DIP Financing (and all Obligations relating thereto) and any other Liens granted to the First Priority Lenders as adequate protection on the same basis as the other Liens on the
Common Collateral that secures the Second Priority Claims are so subordinated to the Liens thereon that secures such First Priority Claims under this Agreement. 

        6.4    No Waiver    

        Nothing
contained herein shall prohibit or in any way limit the First Lien Agent or any First Priority Lender from objecting in any Insolvency or Liquidation Proceeding or otherwise to
any action taken by the Second Lien Agent or any of the Second Priority Lenders with respect to the Common Collateral, including the seeking by the Second Lien Agent or any Second Priority Lender of
adequate protection (other than as allowed pursuant to Section 6.3 of this Agreement) or the asserting by the Second Lien Agent or any Second
Priority Lender of any of its rights and remedies under the Second Priority Documents or otherwise in respect of the Common Collateral. 

        6.5    Preference Issues    

        If
any First Priority Lender is required in any Insolvency or Liquidation Proceeding or otherwise to turn over or otherwise pay to the estate of the Company or any other Grantor any
amount (a "Recovery") received in respect of any Common Collateral, then the First Priority Claims shall be 

12

 

reinstated
to the extent of such Recovery and the First Priority Lenders shall be entitled to receive payment in full in cash (including, in the case of any letter of credit, cash collateral therefor)
with respect to all such recovered amounts. If this Agreement shall have been terminated prior to such Recovery, this Agreement shall be reinstated in full force and effect, and such prior termination
shall not diminish, release, discharge, impair or otherwise affect the obligations of the parties hereto. The Second Lien Agent and each Second Priority Lender agree that none of them shall be
entitled to benefit from any avoidance action affecting or otherwise relating to any distribution or allocation made in accordance with this Agreement, whether by preference or otherwise, it being
understood and agreed that the benefit of such avoidance action otherwise allocable to them shall instead be allocated and turned over for application in accordance with the priorities set forth in
this Agreement. 

        6.6    Asset Dispositions in an Insolvency or Liquidation Proceeding    

        Neither
the Second Lien Agent nor any other Second Priority Lender shall, in an Insolvency or Liquidation Proceeding or otherwise, oppose any sale or disposition of any assets of any
Grantor constituting Common Collateral that is supported by the First Priority Lenders, and the Second Lien Agent and each other Second Priority Lender will be deemed to have consented under
Section 363 of the Bankruptcy Code (and otherwise) to any sale supported by the First Priority Lenders and to have released their Liens in such assets. 

        6.7    Separate Grants of Security and Separate Classification.    

        The
Second Priority Lenders and the First Priority Lenders acknowledge and agree that (a) the grants of Liens pursuant to the First Priority Collateral Documents and the Second
Priority Collateral Documents constitute two separate and distinct grants of Liens and (b) because of, among other things, their differing rights in the Common Collateral, the Second Priority
Claims are fundamentally different from the First Priority Claims and must be separately classified in any plan of reorganization proposed or adopted in an Insolvency or Liquidation Proceeding. To
further effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that the claims against the First Priority Lenders and Second Priority Lenders in respect
of the Common Collateral constitute only one secured claim (rather than separate classes of senior and junior secured claims), then the Second Priority Lenders hereby acknowledge and agree that all
distributions shall be made as if there were separate classes of senior and junior secured claims against the Grantors in respect of the Common Collateral (with the effect being that, to the extent
that the aggregate value of the Common Collateral is sufficient (for this purpose ignoring all claims held by the Second Priority Lenders), the First Priority Lenders shall be entitled to receive from
the Common Collateral or proceeds thereof, in addition to amounts distributed to them in respect of principal, pre-petition interest and other claims, all amounts owing in respect of all
interest accrued (or which would have, absent the
commencement of an Insolvency or Liquidation Proceeding, accrued) after the commencement of an Insolvency or Liquidation Proceeding before any distribution is made from the Common Collateral or
proceeds thereof in respect of the claims held by the Second Priority Lenders, with the Second Priority Lenders hereby acknowledging and agreeing to turn over to the First Priority Lenders amounts
otherwise received or receivable by them from the Common Collateral or proceeds thereof to the extent necessary to effectuate the intent of this sentence, even if such turnover has the effect of
reducing the claim or recovery of the Second Priority Lenders. 

        6.8    Plans of Reorganization.    

        No
Second Priority Lender shall support or vote in favor of any plan of reorganization (and each shall be deemed to have voted to reject any plan of reorganization) unless such plan
(a) pays off, in cash in full, all First Priority Claims, (b) is accepted by the class of holders of First Priority Claims voting thereon and is supported by the First Lien Agent or
(c) incorporates this Agreement by reference and continues the relative rights and priorities of the First Priority Lenders and the Second Priority Lenders in the Common Collateral subsequent
to the effective date of such plan. 

13

 

        6.9    Filing of Motions.    

        Until
the Discharge of First Priority Claims has occurred, the Second Lien Agent agrees on behalf of itself and the other Second Priority Lenders that no Second Priority Lender shall, in
or in connection with any Insolvency or Liquidation Proceeding, file any pleadings or motions, take any position at any hearing or proceeding of any nature, or otherwise take any action whatsoever, in
each case in respect of any of the Common Collateral, including, without limitation, with respect to the determination of any Liens or claims held by the First Lien Agent (including the validity and
enforceability thereof) or any other First Priority Lender or the value of any claims of such parties under Section 506(a) of the Bankruptcy Code or otherwise;  provided that the Second Priority
Lenders may file a proof of claim pursuant to  Section 3.1(a)(ii)(A).
 

        6.10    Other Matters.    

        To
the extent that the Second Lien Agent or any Second Priority Lender has or acquires rights under Section 363 or Section 364 of the Bankruptcy Code with respect to any of
the First Priority Collateral, the Second Lien Agent agrees, on behalf of itself and the other Second Priority Lenders not to assert any of such rights without the prior written consent of the First
Lien Agent; provided that if requested by the First Lien Agent, the Second Lien Agent shall timely exercise such rights in the manner requested by the
First Lien Agent, including any rights to payments in respect of such rights. 

        6.11    Effectiveness in Insolvency or Liquidation Proceedings.    

        This
Agreement shall be effective both before and after the commencement of an Insolvency or Liquidation Proceeding. 

        SECTION
7.    Reliance; Waivers; Etc.    

        7.1    Reliance    

        All
loans and other extensions of credit made or deemed made on and after the date hereof by the First Priority Lenders to the Company or any Grantor shall be deemed to have been given
and made in reliance upon this Agreement. 

        7.2    No Warranties or Liability    

        The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, acknowledges and agrees that each of the First Lien Agent and the First Priority Lenders have made no express
or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectibility or enforceability of any of the First Priority Documents, the ownership
of any Common Collateral or the perfection or priority of any Liens thereon. 

        The
First Priority Lenders will be entitled to manage and supervise their respective loans and extensions of credit under the First Priority Documents as they may, in their sole
discretion, deem appropriate, and the First Priority Lenders may manage their loans and extensions of credit without regard to any rights or interests that the Second Lien Agent or any of the Second
Priority Lenders have in the Common Collateral or otherwise, except as otherwise provided in this Agreement. Neither the First Lien Agent nor any First Priority Lender shall have any duty to the
Second Lien Agent or any of the Second Priority Lenders to act or refrain from acting in a manner which allows, or results in, the occurrence or continuance of an event of default or default under any
agreements with the Company or any Subsidiary thereof (including the Second Priority Documents), regardless of any knowledge thereof which they may have or be charged with. 

        7.3    No Waiver of Lien Priorities    

        (a)   No
right of the First Priority Lenders, the First Lien Agent or any of them to enforce any provision of this Agreement or any First Priority Document shall at any time
in any way be prejudiced 

14

 

or
impaired by any act or failure to act on the part of the Company or any other Grantor or by any act or failure to act by any First Priority Lender or the First Lien Agent, or by any noncompliance
by any Person with the terms, provisions and covenants of this Agreement, any of the First Priority Documents or any of the Second Priority Documents, regardless of any knowledge thereof which the
First Lien Agent or the First Priority Lenders, or any of them, may have or be otherwise charged with. 

        (b)   Without
in any way limiting the generality of the foregoing paragraph, the First Priority Lenders, the First Lien Agent and any of them, may, at any time and from time
to time, without the consent of, or notice to, the Second Lien Agent or any Second Priority Lender, without incurring any liabilities to the Second Lien Agent or any Second Priority Lender and without
impairing or releasing the Lien priorities and other benefits provided in this Agreement (even if any right of subrogation or other right or remedy of the Second Lien Agent or any Second Priority
Lender is affected, impaired or extinguished thereby) do any one or more of the following: 

        (i)    change
the manner, place or terms of payment or change or extend the time of payment of, or amend, renew, exchange, increase or alter, the terms of any of the First
Priority Claims or any Lien on any First Priority Collateral or guaranty thereof or any liability of the Company or any other Grantor, or any liability incurred directly or indirectly in respect
thereof (including any increase in or extension of the First Priority Claims, without any restriction as to the amount, tenor or terms of any such increase or extension so long as the maximum
principal amount of Indebtedness that could then be incurred by the Company in compliance with Section 4.11 ("Limitation on Incurrence of Additional
Indebtedness") of the Indenture (as in effect on the date hereof) which is secured by a Lien permitted under clause (16) or (17) of the definition of the term
"Permitted Lien" (as defined in the Indenture as in effect on the date hereof)) or otherwise amend, renew, exchange, extend, modify or supplement in any manner any Liens held by the First Lien Agent
or any of the First Priority Lenders, the First Priority Claims or any of the First Priority Documents; 

        (ii)   sell,
exchange, release, surrender, realize upon, enforce or otherwise deal with in any manner and in any order any part of the First Priority Collateral or any
liability of the Company or any other Grantor to the First Priority Lenders or the First Lien Agent, or any liability incurred directly or indirectly in respect thereof; 

        (iii)  settle
or compromise any First Priority Claim or any other liability of the Company or any other Grantor or any security therefor or any liability incurred directly or
indirectly in respect thereof and apply any sums by whomsoever paid and however realized to any liability (including the First Priority Claims) in any manner or order; 

        (iv)  enter
into or amend any First Priority Document in order to create or acquire additional collateral for the First Priority Claims, to create and perfect security
interests in and Liens on collateral and to increase and enhance the exercise of remedies thereunder and take actions in furtherance of the foregoing; and 

        (v)   exercise
or delay in or refrain from exercising any right or remedy against the Company or any security or any other Grantor or any other Person, elect any remedy and
otherwise deal freely with the Company, any other Grantor or any First Priority Collateral and any security and any guarantor or any liability of the Company or any other Grantor to the First Priority
Lenders or any liability incurred directly or indirectly in respect thereof. 

        (c)   The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, also agrees that the First Priority Lenders and the First Lien Agent shall have no liability
to the Second Lien Agent or any Second Priority Lender, and the Second Lien Agent, on behalf of itself and the Second Priority Lenders, hereby waives any claim against any First Priority Lender or the
First Lien Agent, arising out of any and all actions which the First Priority Lenders or the First Lien Agent may take or permit or 

15

 

omit
to take with respect to: (i) the First Priority Documents, (ii) the collection of the First Priority Claims or (iii) the foreclosure upon, or sale, liquidation or other
disposition of, any First Priority Collateral. The Second Lien Agent, on behalf of itself and the Second Priority Lenders, agrees that the First Priority Lenders and the First Lien Agent have no duty
to them in respect of the maintenance or preservation of the First Priority Collateral, the First Priority Claims or otherwise. 

        (d)   The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, agrees not to assert and hereby waives, to the fullest extent permitted by law, any right to
demand, request, plead or otherwise assert or otherwise claim the benefit of, any marshalling, appraisal, valuation or other similar right that may otherwise be available under applicable law or any
other similar rights a junior secured creditor may have under applicable law. 

        7.4    Obligations Unconditional    

        All
rights, interests, agreements and obligations of the First Lien Agent and the First Priority Lenders and the Second Lien Agent and the Second Priority Lenders, respectively,
hereunder shall remain in full force and effect irrespective of: 

        (a)   any
lack of validity or enforceability of any First Priority Documents or any Second Priority Documents; 

        (b)   any
change in the time, manner or place of payment of, or in any other terms of, all or any of the First Priority Claims or Second Priority Claims, or any amendment or
waiver or other modification, including any increase in the amount thereof, whether by course of conduct or otherwise, of the terms of the Credit Agreement or any other First Priority Document or of
the terms of the Indenture or any other Second Priority Document; 

        (c)   any
exchange of any security interest in any Common Collateral or any other collateral, or any amendment, waiver or other modification, whether in writing or by course
of conduct or otherwise, of all or any of the First Priority Claims or Second Priority Claims or any guarantee thereof; 

        (d)   the
commencement of any Insolvency or Liquidation Proceeding in respect of the Company or any other Grantor; or 

        (e)   any
other circumstances which otherwise might constitute a defense available to, or a discharge of, the Company or any other Grantor in respect of the First Priority
Claims, or of the Second Lien Agent or any Second Priority Lender in respect of this Agreement. 

        SECTION
8.    Miscellaneous    

        8.1    Conflicts    

        In
the event of any conflict between the provisions of this Agreement and the provisions of the First Priority Documents or the Second Priority Documents, the provisions of this
Agreement shall govern. 

        8.2    Continuing Nature of this Agreement; Severability    

        This
Agreement shall continue to be effective until the Discharge of First Priority Claims shall have occurred. This is a continuing agreement of lien subordination and the First
Priority Lenders may continue, at any time and without notice to the Second Lien Agent or any Second Priority Lender, to extend credit and other financial accommodations and lend monies to or for the
benefit of the Company or any other Grantor constituting First Priority Claims on reliance hereof. The Second Lien Agent, on behalf of itself and the Second Priority Lenders, hereby waives any right
it may have under applicable law to revoke this Agreement or any of the provisions of this Agreement. The terms of this Agreement shall survive, and shall continue in full force and effect, in any
Insolvency or Liquidation Proceeding. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction 

16

 

shall
not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. 

        8.3    Amendments; Waivers    

        No
amendment, modification or waiver of any of the provisions of this Agreement by the Second Lien Agent or the First Lien Agent shall be deemed to be made unless the same shall be in
writing signed on behalf of the party making the same or its authorized agent and each waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in no way impair
the rights of the parties making such waiver or the obligations of the other parties to such party in any other respect or at any other time. The Company and other Grantors shall not have any right to
consent to or approve any amendment, modification or waiver of any provision of this Agreement except to the extent their rights are directly affected. 

        8.4    Information Concerning Financial Condition of the Company and the Other Grantors    

        (a)   The
First Lien Agent and the First Priority Lenders, on the one hand, and the Second Lien Agent and the Second Priority Lenders, on the other hand, shall each be
responsible for keeping themselves informed of (i) the financial condition of the Company and the other Grantors and all endorsers and/or guarantors of the Second Priority Claims or the First
Priority Claims and (ii) all other circumstances bearing upon the risk of nonpayment of the Second Priority Claims or the First Priority Claims. 

        (b)   Subject
to Section 5.6(b), the First Lien Agent and the First Priority Lenders shall have no duty to advise the
Second Lien Agent or any Second Priority Lender of information known to it or them regarding such condition or any such circumstances or otherwise. In the event the First Lien Agent or any of the
First Priority Lenders, in its or their sole discretion, undertakes at any time or from time to time to provide any such information to the Second Lien Agent or any Second Priority Lender, it or they
shall be under no obligation (i) to make, and the First Lien Agent and the First Priority Lenders shall not make, any express or implied representation or warranty, including with respect to
the accuracy, completeness, truthfulness or validity of any such information so provided, (ii) to provide any additional information or to provide any such information on any subsequent
occasion, (iii) to undertake any investigation or (iv) to disclose any information which, pursuant to accepted or reasonable commercial finance practices, such party wishes to maintain
confidential or is otherwise required to maintain confidential. 

        (c)   Subject
to Section 5.6(a), the Second Lien Agent and the Second Priority Lenders shall have no duty to advise any
First Lien Agent or any First Priority Lender of information known to it or them regarding such condition or any such circumstances or otherwise. In the event the Second Lien Agent or any of the
Second Priority Lenders, in its or their sole discretion, undertakes at any time or from time to time to provide any such information to any First Lien Agent or any First Priority Lender, it or they
shall be under no obligation (i) to make, and the Second Lien Agent and the Second Priority Lenders shall not make, any express or implied representation or warranty, including with respect to
the accuracy, completeness, truthfulness or validity of any such information so provided, (ii) to provide any additional information or to provide any such information on any subsequent
occasion, (iii) to undertake any investigation or (iv) to disclose any information which, pursuant to accepted or reasonable commercial finance practices, such party wishes to maintain
confidential or is otherwise required to maintain confidential. 

        8.5    Subrogation    

        The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, hereby waives any rights of subrogation it may acquire as a result of any payment hereunder until the
Discharge of First Priority Claims has occurred. 

17

 

        8.6    Application of Payments    

        All
payments received by the First Priority Lenders in respect of the First Priority Collateral may be applied, reversed and reapplied, in whole or in part, to such part of the First
Priority Claims as the First Priority Lenders, in their sole discretion, deem appropriate. 

        8.7    Consent to Jurisdiction; Waivers    

        The
parties hereto consent to the jurisdiction of any state or federal court located in New York, New York, and consent that all service of process may be made by registered mail
directed to such party as provided in Section 8.8 below for such party. Service so made shall be deemed to be completed three days after the same
shall be posted as aforesaid. The parties hereto waive any objection to any action instituted hereunder based on forum non conveniens, and any objection
to the venue of any action instituted hereunder. Each of the parties hereto waives any right it may have to trial by jury in respect of any litigation based on, or arising out
of, under or in connection with this Agreement, or any course of conduct, course of dealing, verbal or written statement or action of any party hereto. 

        8.8    Notices    

        All
notices to the Second Priority Lenders and the First Priority Lenders permitted or required under this Agreement may be sent to the Second Lien Agent and the First Lien Agent,
respectively. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given shall be in writing and may be personally served, telecopied,
electronically mailed or sent by courier service or U.S. mail and shall be deemed to have been given when delivered in person or by courier service, upon receipt of a telecopy or electronic mail, one
Business Day after mailing if sent by overnight courier, or four Business Days after deposit in the U.S. mail (registered or certified, with postage prepaid and properly addressed). For the purposes
hereof, the addresses of the parties hereto shall be as set forth below each party's name on the signature pages hereto, or, as to each party, at such other address as may be designated by such party
in a written notice to all of the other parties. 

        8.9    Further Assurances    

        The
Second Lien Agent, on behalf of itself and the Second Priority Lenders, agrees that each of them shall take such further action and shall execute and deliver to the First Lien Agent
and the First Priority Lenders such additional documents and instruments (in recordable form, if requested) as the First Lien Agent or the First Priority Lenders may reasonably request to effectuate
the terms of and the lien priorities contemplated by this Agreement. 

        8.10    Governing Law    

        This
Agreement has been delivered and accepted at and shall be deemed to have been made at New York, New York and shall be interpreted, and the rights and liabilities of the parties
bound hereby determined, in accordance with the laws of the State of New York. 

        8.11    Binding on Successors and Assigns    

        This
Agreement shall be binding upon the First Lien Agent, the First Priority Lenders, the Second Lien Agent, the Second Priority Lenders, the Company, the other Grantors and their
respective permitted successors and assigns. 

        8.12    Specific Performance    

        The
First Lien Agent may demand specific performance of this Agreement. The Second Lien Agent, on behalf of itself and the Second Priority Lenders, hereby irrevocably waives any defense
based on the adequacy of a remedy at law and any other defense which might be asserted to bar the remedy of specific performance in any action which may be brought by the First Lien Agent. 

18

 

        8.13    Section Titles; Time Periods    

        The
section titles contained in this Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of this Agreement. In the computation of
time periods, unless otherwise specified the word "from" means "from and including" and each of the words "to" and "until" means "to but excluding" and the word "through" means "to and including". 

        8.14    Counterparts    

        This
Agreement may be executed in one or more counterparts, each of which shall be an original and all of which shall together constitute one and the same document. 

        8.15    Authorization    

        By
its signature, each Person executing this Agreement on behalf of a party hereto represents and warrants to the other parties hereto that it is duly authorized to execute this
Agreement. 

        8.16    No Third Party Beneficiaries    

        This
Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and their respective successors and assigns and shall inure to the benefit of
each of the holders of First Priority Claims and Second Priority Claims. No other Person, including the Company or any other Grantor, the Company or any other Grantor as
debtor-in-possession or any trustee in an Insolvency or Liquidation Proceeding, shall have or be entitled to assert rights or benefits hereunder. 

        8.17    Effectiveness    

        This
Agreement shall become effective when executed and delivered by the parties hereto. This Agreement shall be effective both before and after the commencement of any Insolvency or
Liquidation Proceeding. All references to the Company or any other Grantor shall include the Company or any Grantor as debtor and debtor-in-possession and any receiver or
trustee for the Company or any other Grantor (as the case may be) in any Insolvency or Liquidation Proceeding. 

        8.18    Second Priority Lenders' Purchase Option    

        (a)   Upon
the occurrence and during the continuance of (i) an acceleration of any First Priority Claims; or (ii) a foreclosure on any Common Collateral (or the
commencement of any legal proceedings against any Grantor or with respect to any Common Collateral to facilitate the foregoing) by the First Lien Agent, any or all of the Second Priority Lenders,
acting as a single purchaser group, shall have the option at any time upon five (5) Business Days prior written notice (each such notice, a "Purchase
Notice") from the Second Lien Agent to the First Lien Agent to purchase all (but not less than all) of the First Priority Claims from the First Priority Lenders. Such Purchase
Notice to the First Lien Agent shall be irrevocable. 

        (b)   On
the date specified by Second Lien Agent in such Purchase Notice (which shall not be less than five (5) Business Days, nor more than ten (10) Business
Days, after the receipt by the First Lien Agent of the Purchase Notice from the Second Lien Agent of the election by the Second Priority Lender to exercise such option), the First Priority Lenders
shall sell to Second Priority Lenders, and Second Priority Lenders shall purchase from First Priority Lenders, all (and not less than all) of the First Priority Claims. The First Lien Agent hereby
represents and warrants that, as of the date hereof, no approval of any court or other regulatory or governmental authority is required for such sale. 

        (c)   Upon
the date of such purchase and sale, the Second Priority Lenders shall (i) pay to the First Lien Agent as the purchase price therefor (the "Purchase Price")
the full amount of the First Priority Claims then outstanding and unpaid (including principal, interest, fees and expenses, including reasonable attorneys' fees and legal expenses but excluding any
early termination fee or prepayment fee), (ii) furnish cash collateral to the First Lien Agent in such amounts as the First Lien Agent 

19

 

determines
is reasonably necessary to secure the First Priority Lenders in connection with any issued and outstanding letters of credit provided by any First Priority Lender to any Grantor (but not in
any event in an amount greater than 105% of the aggregate undrawn face amount of such letters of credit), (iii) agree to reimburse the First Priority Lenders for any loss, cost, damage or
expense (including reasonable attorneys' fees and legal expenses) in connection with any commissions, fees, costs or expenses related to any issued and outstanding letters of credit as described above
and any checks or other payments provisionally credited to the First Priority Claims, and/or as to which the First Priority Lenders have not yet received final payment, (iv) agree to pay to the
First Priority Lenders any early termination fee or prepayment fee payable in connection with the First Priority Documents within three (3) Business Days of the receipt of same by the Second
Lien Agent and/or the Second Priority Lenders, after the payment in full in cash to the Second Priority Lenders of the Second Priority Claims and the First Priority Claims purchased by the Second
Priority Lenders pursuant to this Section 8.18, including principal, interest and fees thereon and costs and expense of collection thereof
(including reasonable attorneys' fees and legal expenses, but excluding any early termination fee (whether owing under the First Priority Documents or the Second Priority Documents) or prepayment fee
(whether owing under the First Priority Documents or the Second Priority Documents)); provided that (x) the notice of termination is received by
the Second Lien Agent or (y) the effective date of termination occurs, within ninety (90) days after the effective date of the purchase of the First Priority Claims by the Second
Priority Lenders. Such purchase price and cash collateral shall be remitted by wire transfer in federal funds to such bank account of the First Lien Agent, as the First Lien Agent may designate in
writing to the Second Lien Agent for such purpose. Interest shall be calculated to but excluding the Business Day on which such purchase and sale shall occur if the amounts so paid by Second Priority
Lenders to the bank account designated by the First Lien Agent are received in such bank account no later than 1:00 p.m., New York City time and interest shall be calculated to and including
such Business Day if the amounts so paid to the bank account designated by the First Lien Agent are received in such bank account later than 1:00 p.m., New York City time. 

        (d)   Such
purchase shall be expressly made without representation or warranty of any kind by the First Priority Lenders as to the First Priority Claims or otherwise and
without recourse to the First Priority Lenders, except that the First Priority Lenders shall represent and warrant: (i) the amount of the First Priority Claims being purchased, (ii) that
the First Priority Lenders will transfer the First Priority Claims to the Second Priority Lenders free and clear of any Liens or encumbrances and (iii) the First Priority Lenders have the right
to assign the First Priority Claims and the assignment is duly authorized. 

        8.19    Appointment of First Lien Agent    

        Each
First Priority Lender by accepting the benefits hereof hereby irrevocably appoints                        to act on its behalf as
the First Lien Agent and agrees that the provisions of
                        ,
                        and                 
       (1)
of the Credit Agreement applicable to                        in its capacity as the [administrative agent] thereunder shall also
apply to it as First Lien Agent hereunder. 

	(1)
	Agency
and indemnification provisions to be inserted. 

        8.20    Second Lien Agent    

        The
use of the term "Second Lien Agent" is used in this Agreement for convenience only, and the characterization of U.S. Bank National Association as such does not impose, and U.S. Bank
National Association does not accept, any obligations to anyone other than in its capacity as Trustee and Collateral Agent, and in executing this Agreement in such capacity, U.S. Bank National
Association does not subordinate any claims, rights or liens that it may hold from time to time in its individual capacity. 

20

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

	 	FIRST LIEN AGENT:
	

 	

 	

 	

 
	 	 	 	, as First Lien
	 	
 Agent	 
	

 	

 	

 	

 
	 	By:	 	 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	

 	

 	

 	

 
	 	

	

 	

 	

 	

 
	 	

	

 	

Facsimile No.:	
 	

 	
 	

-	

-	

 
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

	

 	

 	

 	

 
	

 	
SECOND LIEN AGENT:
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee, Collateral Agent and Second Lien Agent
	

 	

 	

 	

 
	 	By:	 	 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	 	60 Livingston Avenue
	 	St. Paul, MN 55107-2292

	

 	

 	
 	

 	
 	

 	

 	

 
	 	Facsimile No.:	 	 	 	-	-	 
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

	

 	

 	

 	

 
	

 	
GRANTORS:
	 	MCLEODUSA INCORPORATED
	

 	

 	

 	

 
	 	By:	 	 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	 	1 Martha's Way
	 	Hiawatha, Iowa 52233

S-1

 

	

 	

 	
 	

 	
 	

 	

 	

 
	 	Facsimile No.:	 	(319) 790-7901
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

	

 	

 	

 	

 
	

 	

MCLEODUSA HOLDINGS, INC.
	

 	

 	

 	

 
	 	By:	 	 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	 	1 Martha's Way
	 	Hiawatha, Iowa 52233

	

 	

 	
 	

 	
 	

 	

 	

 
	 	Facsimile No.:	 	(319) 790-7901
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

	

 	

 	

 	

 
	

 	

MCLEODUSA INFORMATION SERVICES, INC.
	

 	

 	

 	

 
	 	By:	 	 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	 	1 Martha's Way
	 	Hiawatha, Iowa 52233

	

 	

 	
 	

 	
 	

 	

 	

 
	 	Facsimile No.:	 	(319) 790-7901
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

	

 	

 	

 	

 
	

 	

MCLEODUSA NETWORK SERVICES, INC.
	

 	

 	

 	

 
	 	By:	 	 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	 	1 Martha's Way
	 	Hiawatha, Iowa 52233

S-2

 

	

 	

 	
 	

 	
 	

 	

 	

 
	 	Facsimile No.:	 	(319) 790-7901
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

	

 	

 	

 	

 
	

 	

MCLEODUSA PURCHASING, L.L.C.
	

 	

 	

 	

 
	 	By:	 	 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	 	1 Martha's Way
	 	Hiawatha, Iowa 52233

	

 	

 	
 	

 	
 	

 	

 	

 
	 	Facsimile No.:	 	(319) 790-7901
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

	

 	

By:	

 	

 
	 	 	
 Name:
	 	 	Title:	 
	

 	

 	

 	

 
	 	Address:
	 	1 Martha's Way
	 	Hiawatha, Iowa 52233

	 	Facsimile No.:	 	(319) 790-7901
	

 	

 	
 	

 	
 	

 	

 	

 
	 	Attention:	 	 	 	 	 	 

S-3

QuickLinks

Exhibit 4.4

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